This document discusses how human resources can contribute to addressing new financial challenges in the telecom sector. It outlines issues facing the sector like new license cancellations, high spectrum costs, and shrinking margins. It argues HR needs to proactively contribute to smarter annual operating plans, increasing revenue, improving productivity sustainably, and optimizing costs. Traditionally, HR has lacked strategic focus, business skills, standardization, and clear ROI measurement. However, the document advocates for HR to demonstrate its value through clear alignment with business goals and measurable impact on the bottom line.

1. How can Human Resources
contribute in new Financial
Challenges
By: Malay Chaturvedi
Head HR-Idea Cellular Ltd.

2. What Problems the Telecom Sector
is facing:
• Telecom – A Volatile & Dynamic Industry
• New License Cancellation
• Spectrum Allocation at 10 Times Cost.
• Shrinking Margins.
• Telecom Infrastructure – Prohibitive Cost
• Adoption of 3G & Data usage.
• BOTTOMLINE under Intense Pressure.

3. Issues in Front of HR………..
 Proactive Contribution in
 SMART AOP
 Increase Revenue
 Higher Manpower Productivity with sustainability
 Optimising /Reduction in Cost

4. Traditional HR
HR has a history– and let’s be honest – of
 Not being strategic
 More people skills than business skills.
 No industry standardization
 Lack of quality control
 Behaviorally based processes
 Poor understanding of the business
 No clear ROI on HR initiatives
 Poor alignment with the business

5. High Credibility of HR
But, in business, more credibility is given to hard skills
•Measurements,
•numbers,
•Profit, etc.

6. The HR Thrust….

7. “What you measure is what you get’’
Kaplan & Norton 1992

8. Measurement
 How is HR contributing in business ????
 Make product?
 Or make products better?
 Or make product less expensively?
 Or make product faster?
 Or sell more product?
 Or open a second product store?

9. Measurement Vs Impact
 For HR, the measurements can be
challenging to define.
 But not impossible.
 If you can’t find the impact, you have
to question the relevance of the
measurement or process.
 Is it time and/or money wasted?

10. So the tool for improving your credibility
requires more effort because you are
challenged to:
 Ensure projects, metrics, and services are aligned
with the business stakeholders’ needs
 Maintain the standard by doing the job well –
executing the process well – over and over
 Hold yourself accountable to those results – even
when other projects or demands are screaming for
your time and attention
 Use a process, methodology or calculation that can be
replicated with each cycle without significant
variation.

11. Just to Share…..
HR & Admin. Cost constitutes X% of the Total
Cost in Business and managing this cost
impacts Bottom-line of business.
It Impacts Business EBIT
EBIT – Earnings before Interest & Tax

12. How do we manage it ????

13. An eye for detail in budgets & spends……
Manpower Budgeting Cost Elements

14. Monthly MIS Tracking - HR

15. HR PYRAMID
- Org design
- Business Partnering
-Talent Management
-Capability Building
-Process Reengineering
-Measurement Metrics and Indices
-Cost Arbitrage
-Employee satisfaction/engagement
CE
P IE
-Repetitive but fundamental
-Hygiene
HR
-Voluminous`

16. Thank You