m At 1996,

1996, a new Telecommunications Act passes through at the

United States Legislative and making major telecommunication
companies have to compete in new markets and facing greater
competition for customers
customers..

m J. Randall MacDonald, as GTE͛s (soon to be part of Verizon) vice

president of Human Resource realized that the expectation of his
department would change.
change.

m HR Department at GTE doesn͛t have any measurement for

efficiency or quality
quality..

m There is increasing pressure from CEO because GTE already

spending a lot of money for HR Department without knowing the
effects that HR has for the company.
company.
m Verizon is a product of merger between Bell Atlantic and GTE at
2000..
2000
m The merger was a result of The 1996 Telecommunications Act.
Act.
m Bell Atlantic was the dominant provider of local phone service in
the Northeast
m GTE was the largest independent phone company in the United
States
m The result of the merger is a telecommunication company with :
? 260
260,,000 employees
? US
US$$ 60 billion revenue
m Changes in Strategy for GTE
m Following the passage of the Telecommunications ACT, GTE began
moving in some new strategic directions, to profitably offer a
complete bundle of high- high-growth telecommunications services
nationwide
m There were two major problems that happened to
telecommunications companies in the United States: States: Customer
Turnover and Employee Turnover
m The quality of customer service was also on the decline and it͛s
getting more and more difficult for the companies to get qualified
people because of the tight labor market
m The Values of Employee, GTE͛s workforce was obviously the key part
for them to operate well but they don͛t have any real system in place
for measuring its performance.
performance. MacDonald realized that he needed a
quantitative model for that and he considers The Balanced Scorecard
by Robert Kaplan and David Norton
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Company Profiles
 Largest provider of local,
long distance telephone
services in the United States
 Second largest provider of
AT&T wireless service in the
United States, with over 77
million wireless customers,
and more than 150 million
total customers
 Large telecommunications
carrier.
QWEST  June 30, 2000 merged with
͞Baby Bell" US West
Product
 Long Lines wire, cable, and
microwave radio relay network
 Voice, video, data, and internet
telecommunications
 Cable television
 Wire line Services
ålocal voice
Idaho, Iowa, Minnesota,
ålong distance voice
ådata and Internet (DSL)
 Wireless Services ü partnership
with Verizon Wireless
 Voice, backbone data services, &
digital television in some areas
Service Regions
Alabama, Alaska,
Arkansas, California,
Connecticut, Florida,
Georgia, Illinois,
Indiana, Kansas,
Kentucky, Louisiana,
Michigan, Mississippi,
Missouri, Nevada,
North Carolina, Ohio,
Oklahoma, South
Carolina, Tennessee,
Texas, Wisconsin
Arizona, Colorado,
Montana, Nebraska,
New Mexico, North
Dakota, Oregon, South
Dakota, Utah,
Washington, Wyoming
‡ Employee turnover

‡ Improving a balanced scorecard to be a valuable thing

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Several steps that to be taken by the companies are:
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