Restoring the engine for growth

While his feet may have been under the desk for only a matter of weeks, Hanif Lalani OBE, the new BT Global Services chief executive, is already taking decisive action to address the acknowledged issues affecting the GS business.

"Yes, some things need fixing and that's why my sleeves have been rolled up since day one," said Lalani. "However, recent events have not affected the big picture of Global Services strategy. We remain on track to be the leading networked IT services provider for multinational corporations globally. And we'll achieve this by leveraging the asset that is our BT network – the world's biggest, broadest and richest network. Nothing has changed on that."

Hanif Lalani Lalani explained further: "My immediate task is to make our GS organisation more lean and focused than it has been over the past two or three trading quarters. I have taken steps to streamline, simplify and accelerate the business. This will enable us to continue to deliver good value, remain competitive and give our customers better visibility of service end-to-end.

"This is a journey and will take some time to implement, so I anticipate that our trading performance may get worse before it gets better."

One of Lalani's other major priorities is to increase quality engagement with customers and employees, meeting as many Global Services customers as he can over these first months.

He said: "Our customers need to know that we have a great vision, propositions and a strong pipeline. I’m keen to hear their views and understand what we can do in delivery to meet and exceed their expectations. Our GS people are passionate about their customers, and I want to encourage that focus throughout our internal improvement work."

Lalani will work closely with Global Services colleagues such as Luis Alvarez (see 'Analyst talks to...' this issue) on his customer engagement activities.

Inorganic growth

Lalani is resolute on the issue of acquisitions and, in particular, whether the need for cost-cutting and improved profitability signals the end of the Global Services four year run of acquisitions.

"I very much agree with what Ian Livingston said recently in Cannes," Lalani said. "Ian argued that we don't have an acquisitions strategy. We have a BT strategy, and acquisitions help to support that. He is absolutely spot-on."

"The fact is that the inorganic growth we've executed in recent years has been extraordinarily successful. We have proved to be very discerning when it comes to adding to our skills base, customer base and global reach. In Global Services we will continue to evaluate appropriate acquisition opportunities as they may arise."

As to the question of whether Lalani can successfully balance his Global Services chief executive job alongside his continuing responsibility for the BT pension schemes, he said: “I work closely with a team of expert colleagues in Global Services and with my successor in BT Group finance, our newly appointed CFO Tony Chanmugam. I retain the leadership of our BT pension schemes review until we conclude that process, and we'll continue to ensure the BT pension schemes are, and always will be, some of the best managed schemes anywhere in the world.”

Overall, Lalani is focused on delivering value for customers, shareholders and employees. He concluded: "It's up to me, the Global Services leadership team and everyone in our business to make a rapid difference by doing the best job we can. By harnessing the passion, energy and customer focus I see around me in the team, it will not be long before we see Global Services restored to its key role as the engine for profit and growth in BT."