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Leadership at Dialog UPDATE v1

The document discusses Dialog Axiata PLC, the largest telecommunications provider in Sri Lanka. It provides an overview of the company's history, vision, products/services, employees, branches, and financial status. The key issue analyzed is the lack of leadership succession planning at Dialog Axiata PLC. Strategic management models like McKinsey's 7S framework and SWOT analysis are used to evaluate the current situation and provide recommendations to address the absence of succession planning.

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0% found this document useful (0 votes)
1K views36 pages

Leadership at Dialog UPDATE v1

The document discusses Dialog Axiata PLC, the largest telecommunications provider in Sri Lanka. It provides an overview of the company's history, vision, products/services, employees, branches, and financial status. The key issue analyzed is the lack of leadership succession planning at Dialog Axiata PLC. Strategic management models like McKinsey's 7S framework and SWOT analysis are used to evaluate the current situation and provide recommendations to address the absence of succession planning.

Uploaded by

kasun halambage
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 36

Module

Leadership and Strategic Management

Name:
University ID number:
Acknowledgment
I am really appreciative to have received it because this project needed a lot of direction and
assistance from numerous people to be successful and finished. I would like to express my
gratitude to them for all of their support and advice. I appreciate my instructor letting me
work on this project and giving me the direction and assistance, I needed to finish it on time. I
truly appreciate the excellent leadership he has provided. I'm grateful that I was able to finish
the assignment within the allotted time. I want to thank every one of my friends and
respondents for their cooperation and willingness to take the time to do this for me.
Abstract
Since the late 1990s, Dialog Axiata PLC has served as the vanguard of new technology in Sri
Lanka's mobile business, advancing the country's mobile communication infrastructure to a
standard comparable to that of the developed world. A customer base of 14 million Sri
Lankans is served by the company's superior mobile communications and high-speed mobile
internet services on 2.5G, 3G/3.5G, and 4G networks. Additionally, the business offers a
platform for purchasing the newest technological items as well as television subscriptions.
The company is a subsidiary of Axiata Group Berhad, which owns a controlling 83.32% stake
in the company, while the rest is held by the public. The company generates annual revenue
of LKR 150 million per year and has a market capitalization of LKR 70.10 billion. To
manage such a sizable staff and businesses, Dialog Axiata PLC must undertake strong
leadership and strategic management initiatives. The author implores in this report to
highlight the company's management and leadership-related issues and leadership practices at
Dialog Axiata PLC, try to align them with the theoretical framework of leadership, and then
provide recommendations to improve, successfully face competition, and prosper as a
multinational consumer goods brand. The report will be concluded with a personal reflection
statement from the author, who will discuss the information and skills they have learnt as
well as how they might be implemented practically as managers in the future.
Table of Contents
1.0 Introduction to the Organization..................................................................................................3
1.1 History........................................................................................................................................3
1.2 Vision, mission & objectives......................................................................................................3
1.3 Products/ services.......................................................................................................................3
1.4 Employees...................................................................................................................................4
1.5 Scope (branches)........................................................................................................................4
1.6 Financial status..........................................................................................................................4
2.0 Outline of the current issue...........................................................................................................5
2.1 Explanation of the issue.............................................................................................................5
2.2 How does it Impact the organization........................................................................................6
3.0 Critical evaluation to the role of top-level management toward the strategic management
issue......................................................................................................................................................8
3.1 Chairman’s Role........................................................................................................................9
3.1.1 Critical analysis of the role of the chairman...................................................................10
3.2 Role of CEO.............................................................................................................................11
3.2.1 Critical analysis of the role of the CEO...........................................................................12
3.3 Role of General Manager of Human Resource Management...............................................14
3.3.1 Critical analysis of the role of HR management.............................................................15
4.0 Use strategic management models to evaluate the current situation of the organization.......16
4.1 Applying McKinsey’s 7’s Model on the current issue...........................................................16
4.2 SWOT Analysis of the current issue.......................................................................................21
5. Recommendations for lack of succession planning.....................................................................23
6. Personal reflection statement........................................................................................................26
7.0 Conclusion....................................................................................................................................28
References...........................................................................................................................................29
1.0 Introduction to the Organization

1.1 History

As a joint venture between Telekom Malaysia and Sri Lanka Telecom, Dialog Axiata was
established in 1994. With more than 15 million subscribers, it is Sri Lanka's biggest telecom
provider. Dialog Telekom PLC was the company's previous name; in July 2010, it changed to
Dialog Axiata PLC. An affiliate of Axiata Investments (Labuan) Limited is Dialog Axiata
PLC.

An important telecommunications business with a base in Sri Lanka, Dialog Axiata PLC is a
division of Axiata Group Berhad. Dialog, which was founded in 1993, has significantly
shaped Sri Lanka's communications industry. Dialog has emerged as the top integrated
telecommunications service provider in the nation by putting an emphasis on innovation and
customer-centric services. Mobile, fixed-line, broadband, and digital TV are just a few of the
services that the company provides (Dialog axiata, 2023). Dialog Axiata has consistently
shown growth and resiliency in a cutthroat market over the years. It has consolidated its
position as a market leader thanks to its dedication to offering cutting-edge technology,
extensive network coverage, and customized solutions. The business has become known as a
responsible corporate entity in Sri Lanka thanks to its commitment to social responsibility
and environmentally friendly business practices.

1.2 Vision, mission & objectives

Vision: To be the leading digital solutions provider in Sri Lanka


Mission: To connect people, Businesses, and communities to a better future
Objectives:
 Provide world-class telecommunications services
 Create a sustainable business
 Contribute to the development of Sri Lanka

1.3 Products/ services

1
The company provides superior mobile communications and high-speed mobile internet
services on 2.5G, 3G/3.5G, and 4G networks to a customer base of 14 million people in Sri
Lanka. The company also provides a marketplace where customers can buy the most recent
technological gadgets and television subscriptions (Dialog axiata, 2023). Axiata Group
Berhad, which owns a controlling 83.32% of the company and the remaining shares are held
by the general public, is the parent company of the business. The company has a market
capitalization of LKR 70.10 billion and an annual revenue of LKR 150 million (markets.ft,
2023). Followings are some of the products offered by Dialog

 Mobile phone services


 Fixed-line services
 Broadband internet services
 Digital TV services
 Cloud computing services
 Enterprise solutions
 Financial services

1.4 Employees

Over 5,000 people work for Dialog Axiata. The organization, which is regarded as one of the
best places to work in Sri Lanka, places a strong emphasis on the development of human
capital.

1.5 Scope (branches)

Over 5,000 people work for Dialog Axiata. The organization, which is regarded as one of the
best places to work in Sri Lanka, places a strong emphasis on the development of human
capital.

1.6 Financial status

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Profitability is a strength of Dialog Axiata. It revealed a $1.2 billion net profit in 2021. As Sri
Lanka's telecommunications industry develops over the coming years, the company is in a
good position to expand.

Additional details about Dialog Axiata are provided below:

 The business is a significant financier of Sri Lanka's economy. It made over $1 billion
in investments in 2021.
 Social responsibility is important to Dialog Axiata. The company has a number of
initiatives in place to support Sri Lanka's economic, health, and educational
development.
 Leading the way in innovation is Dialog Axiata. To satisfy the needs of its customers,
the business is constantly creating new products and services.

2.0 Outline of the current issue

2.1 Explanation of the issue

The organizational problem that will be discussed in this section with reference to Dialog
Axiata PLC's is absence of leadership succession planning. To ensure a seamless transition of
leadership responsibilities as incumbents retire or leave an organization, succession planning
refers to the methodical process of identifying and nurturing potential leaders inside the
organization (axiata, 2023). For a business-like Dialog Axiata, which operates in the quickly
changing telecommunications sector, this issue is especially important.

The primary organizational issue at Dialog Axiata PLC that is connected to the leadership of
the organization is described as employee resistance to change management. The refusal to
adapt to change when it is presented is known as resistance to change. Employee resistance to
organizational change can take two forms: overt and hidden (Anon, 2023). This can take the
form of openly expressing opposition or unintentionally opposing change through language
or general behavior. Change management has been met with opposition on various instances

3
at Dialog. The main situations where the business encountered opposition to change in recent
years are covered in the sections that follow (Ward, 2021).

Lack of innovation - When it comes to new product and service offers, Dialog Axiata was
once renowned for being innovative. However, in recent years, other rivals have been able to
catch up with and even surpass it. The market share of Dialog Axiata has decreased as a result
(Ugochukwu, 2021).

Ineffective customer service - Also criticized for providing poor customer service is Dialog
Axiata. Long wait times, inadequate problem solutions, and rude customer care employees
have all been complaints from customers. Customer satisfaction has decreased because of this
(Ugochukwu, 2021).

Inability to retain talent - Keeping great talent has been a challenge for Dialog Axiata as
well. This is brought on by a variety of elements, such as inadequate pay, a dearth of
prospects for job advancement, and a toxic work environment. The absence of skill has made
Dialog Axiata less competitive.

Poor strategic planning - Dialog Axiata has drawn flak for having subpar strategic planning.
The business has recently made a series of mistakes, including investing in a new fiber optic
network that wasn't lucrative. Financial losses and a drop in shareholder value have resulted
from this.

4
Impact of leadership succession planning
60

50

40

30

20

10

0
Year 2018 Year 2019 year 2020 year 2021

Innovation Customer service Employee retention

2.3 SWOT Analysis of the current issue

The following SWOT analysis will further analyse the issue of a lack of succession planning in
the company.

Strengths

Current Leadership Stability


Without a defined succession plan, Dialog Axiata continued to exhibit leadership stability. This
indicates that the business has so far managed leadership changes without suffering serious
repercussions.

Weaknesses

Risk of Leadership Vacancies


The risk connected to leadership openings is the main vulnerability. In the absence of successors, the
business may see rapid leadership changes because of retirements, resignations, or unannounced
departures, which might affect operations and decision-making.

5
Talent Development Gap
Having a succession plan in place can prevent a talent development gap. It implies that high-potential
employees could not get the direction and instruction they need to get ready for upcoming leadership
roles within the company.

Potential Employee Discontent


When workers feel there are little chances for professional advancement inside the company, they
may become dissatisfied. This may result in lower engagement, lower morale, and a greater
propensity for brilliant workers to go elsewhere for employment.

Opportunities

Talent Development
The implementation of a thorough succession planning procedure offers a chance to methodically
cultivate internal talent. This may entail finding staff members with high potential, developing them
via training and mentoring, and putting them in positions of leadership.

Leadership Pipeline
A well-designed succession plan may provide a leadership pipeline, guaranteeing that suitable people
are available to fill important positions as needed. This lowers the possibility of leadership voids and
preserves organizational stability.

Employee Engagement
By providing clear career growth pathways inside the firm, effective succession planning may
increase employee morale. Employee engagement, commitment, and job satisfaction are more
probable when they see chances for professional development.

Threats

Loss of Critical Knowledge


Unexpected leadership transitions that don't have successors in place run the risk of losing important
institutional expertise. This may result in ineffectiveness, difficulty making decisions, and possible
errors.

6
External Talent Poaching
Competitors may seek to steal important executives or personnel if they notice a lack of succession
planning. This might make Dialog Axiata less competitive and hurt its talent pool.

Reputation Risk
Dialog Axiata's reputation may suffer if the public believes that its leadership is unstable or
unpredictable. Customer assurance, investor confidence, and connections with other stakeholders may
all be impacted by this.

2.3 How does it Impact the organization

The leadership issues faced by Dialog Axiata have had a significant impact on the company.
These issues have led to:

Loss of market share

Market share has recently been lost by Dialog Axiata to rivals. This is a result of the
business's lack of innovation and poor customer service. When it comes to new products and
service offers, Dialog Axiata was once renowned for being innovative (Crittenden &
Crittenden, 2016). However, in recent years, other rivals have been able to catch up with and
even surpass it. The market share of Dialog Axiata has decreased as a result. For instance,
Dialog Axiata's rivals have introduced new products and services that Dialog Axiata does not
provide, including fixed wireless broadband and 5G. Customers have switched to Dialog
Axiata's rivals as a result, making it impossible for Dialog Axiata to compete.

The poor customer service provided by Dialog Axiata has also led to its decline in market
share. Customers have expressed dissatisfaction with the length of wait times, the quality of
issue solutions, and the conduct of customer care employees (Porter & Millar, 2018).
Customers have become disappointed and dissatisfied with Dialog Axiata's services as a
result, and they have migrated to rivals who offer better customer support.

Declining customer satisfaction

Customer satisfaction has decreased recently at Dialog Axiata. This is a result of the lengthy
wait periods, subpar issue-solving, and unfriendly customer service representatives of the

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organization. When contacting Dialog Axiata's customer support, many complained about the
length of the wait periods and the inadequate resolution of their issues. Customers are now
disappointed and dissatisfied with the company's services because of this. Additionally,
several customers have complained that Dialog Axiata's customer service agents have been
impolite to them. As a result, client satisfaction with the business has further declined.

Figure 1: Decrease in Mobile Subscribers

Source: Annual report 2022

Difficulty in attracting and retaining talent

Top talent is hard to find and keep at Dialog Axiata. This occurs because of the company's
poor pay, scarcity of possibilities for career advancement, and hazardous workplace. The pay
at Dialog Axiata is not comparable to those at other telecoms firms. This makes it challenging
for the business to draw top employees (Mcguire, 2020). Additionally, Dialog Axiata does not
provide many chances for professional advancement. This implies that it might be
challenging for employees at Dialog Axiata to advance their careers. Finally, several workers
claim that the atmosphere at Dialog Axiata is toxic. As a result, some employees have left the
business in search of greater possibilities elsewhere.

Financial losses

In recent years, Dialog Axiata has experienced financial losses. This is a result of the
business's subpar strategic planning and investment in a new, unsuccessful fiber optic
network. The strategic planning of Dialog Axiata has declined in recent years. The business
has committed a number of errors, including investing in a new fiber optic network that was

8
unsuccessful. The result has been financial losses for the business. In addition, Dialog Axiata
has taken a while to change with the times in the telecom industry. Because of this, it has
been challenging for the business to compete with its rivals (Armstrong & Brodie, 2020).

Figure 2: Net profit after Tax


Figure 3: EBITDA 2022

3.0 Critical evaluation to the role of top-level management toward the


strategic management issue

3.1 Chairman’s Role

The company's board of directors is presided over by Dialogue Axiata's chairman. The board
oversees monitoring the management of the company and making sure it is conducting
business responsibly and sustainably.

The chairman’s role is to:

 Determined the strategic course of the company.


 Monitor the board's and its committees' performance.
 Verify that the business is abiding by all rules and laws that may apply.
 Director appointments and removals.
 Examine and accept the business's financial statements.
 Represent the business to the company's stakeholders and shareholders.

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Any company's governance depends heavily on the Chairman. They are essential to the
efficient and moral management of the business.

David Nai Pek Lau is Dialogue Axiata's current chairman. In July of 2020, he was given the
job. Mr. Lau has over 35 years of experience in the financial services sector and is a chartered
accountant. At Shell Malaysia and other multinational companies, he has held executive
positions.

Mr. Lau is a fervent supporter of sustainability and good corporate practises. He is devoted to
making Dialogue Axiata a trustworthy and moral business.

Here are some of the specific responsibilities of the chairman of Dialog Axiata:

 presiding overboard meetings and ensuring that all choices are made with the
company's best interests in mind.
 Directors are appointed and removed.
 Approving the annual budget and financial reports of the company.
 overseeing the risk management system for the company.
 Ensuring that the business abides by all rules and laws that are relevant.
 interacting with shareholders and other stakeholders on behalf of the company.

The Chairman of Dialogue Axiata is a powerful individual who can significantly affect the
direction and performance of the company. They are essential to the efficient and moral
management of the business.

3.1.1 Critical analysis of the role of the chairman

The Chairman's position at Dialog Axiata is crucial. They are in charge of establishing the
strategic direction of the business, monitoring the performance of the board and its
committees, making sure the business complies with all laws and regulations, selecting and
dismissing directors, reviewing and approving the financial statements of the business, and
speaking on behalf of the business to its shareholders and other stakeholders.

Here are some critical analyses of the role of the chairman of Dialog Axiata:

10
The chairman should be independent and not have any conflict of interest - This is
crucial to make sure that the Chairman can decide what is best for the business. Any conflict
of interest may affect the Chairman's decision-making and may be detrimental to the
business.

The chairman should have a strong understanding of the telecommunications industry


and the challenges facing Dialog Axiata - For the Chairman to effectively lead and direct
the company, this is crucial. The challenges the business is facing and the most recent trends
in the telecommunications sector should be known to the chairman. They will be better able
to make decisions that will benefit the business by doing this.

The chairman should be a good communicator and be able to build relationships with
the company’s stakeholders - To ensure that the Chairman can effectively represent the
company and its interests, it is crucial to do this. The CEO, the board of directors, and other
stakeholders should be able to communicate with the chairman effectively. Additionally, they
must be able to establish connections with these parties in order to guarantee their support for
the objectives of the business.

The Chairman of Dialog Axiata holds a key position and is extremely important to the
governance of the company. This position requires a person with the abilities, knowledge, and
moral character to successfully lead and manage the business.

3.2 Role of CEO

The CEO of Dialog Axiata is the organization's top executive. They are in charge of the
company's overall management and operations. The CEO is accountable to the board of
directors and is in charge of carrying out their decisions.

The CEO of Dialog Axiata has the following specific duties:

 Determining the strategic direction of the company


 Creating and carrying out the business plan for the company
 Controlling the business's operations
 Managing the business's financial results
 Recruiting and supervising the company's personnel

11
 Representing the business to its stakeholders, partners, and clients

The CEO of Dialog Axiata holds a key position and is essential to the success of the business.
This position should be filled by someone with the knowledge, insight, and drive to take the
business to new heights.

Supun Weerasinghe serves as Dialog Axiata's CEO at the moment. In January 2017, he was
chosen for the job. Mr. Weerasinghe has more than 20 years of experience working in the
telecom sector. In Sri Lanka and Malaysia, he has held executive positions with Dialog
Axiata and other telecommunications firms.

Mr. Weerasinghe is a fervent supporter of sustainability and innovation. He is dedicated to


guiding Dialog Axiata into the future as Sri Lanka's top supplier of digital solutions.

The CEO of Dialog Axiata is responsible for the following major duties:

Setting the company’s strategic direction - Setting the company's long-term goals and
objectives is the CEO's responsibility. They collaborate with the board of directors and other
top executives to create a strategy that will assist the business in achieving its objectives.

Developing and executing the company’s business plan - The business plan for the
company must be created and carried out by the CEO. Setting financial goals, creating
marketing plans, and overseeing daily operations are all included in this.

Overseeing the company’s operations - The CEO is in charge of managing daily operations
at the company. This entails making sure the business is achieving its financial goals, offering
top-notch goods and services, and abiding by all relevant rules and laws.

Managing the company’s financial performance - The CEO is in charge of overseeing the
business's financial performance. This entails creating spending plans, keeping tabs on
receipts, and controlling cash flow.

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Hiring and managing the company’s employees - The CEO is in charge of selecting and
supervising the company's employees. This includes ensuring that the business has the
appropriate people in the appropriate roles, offering opportunities for training and
development, and fostering a positive work environment.

3.2.1 Critical analysis of the role of the CEO

The CEO of Dialogue Axiata plays a crucial role in the company. They are in charge of the
company's overall management and operations. The CEO is accountable to the board of
directors and is in charge of carrying out their decisions.

The following are some critiques of the CEO of Dialogue Axiata's position:

The CEO should be a visionary leader - They must be able to communicate their vision for
the company's future to the board, the staff, and other stakeholders.

The CEO should be a strong communicator - They ought to be able to assess the business's
current state and create plans for achieving its objectives.

The CEO should be a decisive leader - They ought to be capable of acting swiftly and
forcefully in challenging circumstances.

The CEO should be a good motivator - They ought to be able to inspire and motivate
workers to give their best effort.

Supun Weerasinghe serves as Dialogue Axiata's CEO at the moment. He assumed the
position in January 2017. Mr. Weerasinghe has more than 20 years of experience working in
the telecom sector. In Sri Lanka and Malaysia, he has held executive positions with Dialogue
Axiata and other telecommunications firms.

Mr. Weerasinghe is a fervent supporter of sustainability and innovation. He is dedicated to


guiding Dialogue Axiata into the future as Sri Lanka's top supplier of digital solutions.

Here are some of the leadership qualities and styles of Mr. Weerasinghe:

13
Visionary leader: Mr. Weerasinghe has a distinct vision for Dialogue Axiata's future. He is
dedicated to turning the business into a pioneer in digital solutions.

Strategic thinker: Mr. Weerasinghe has the capacity to assess the business's current state and
create plans for achieving its objectives.

Strong communicator: Effective communication with the board, the staff, and other
stakeholders is a strength of Mr. Weerasinghe.

Decisive leader: Even in challenging circumstances, Mr. Weerasinghe is able to act quickly
and decisively.

Risk taker: Mr. Weerasinghe is prepared to take chances to further the objectives of the
business.

Mr. Weerasinghe's emphasis on innovation, sustainability, and customer service define his
leadership style. He is also renowned for his ability to inspire and motivate others, as well as
his decisiveness.

Dialogue Axiata has advanced significantly in its pursuit of digital transformation under Mr.
Weerasinghe's direction. The business has introduced several new digital services, including
e-commerce and mobile banking. Additionally, Dialogue Axiata has made significant
investments in 5G infrastructure, enabling it to provide its clients with data services that are
quicker and more dependable.

Mr. Weerasinghe is dedicated to elevating Dialogue Axiata to the position of premier supplier
of digital solutions in Sri Lanka. He thinks the business has a lot of potential to contribute
significantly to the economic growth of the nation.

3.3 Role of General Manager of Human Resource Management

The overall management of Dialogue Axiata's human resource function is the responsibility
of the General Manager of Human Resource Management (GMHRM). This comprises:

Hiring and recruiting: The GMHRM is in charge of creating and carrying out the
organization's hiring and recruiting strategies. This entails locating and luring qualified
candidates, holding interviews, and selecting employees.

14
Onboarding and training: The company's onboarding and training programmes must be
created and implemented by the GMHRM. This includes making sure that new hires are
appropriately introduced to the business and its culture and that they receive the training
necessary for them to succeed in their positions.

Performance management: The GMHRM is in charge of creating and putting the


organization's performance management system into place. Setting performance objectives,
conducting performance evaluations, and giving staff members feedback are all included in
this.

Compensation and benefits: The company's compensation and benefits programmes are
created and implemented by the GMHRM. Setting salaries, benefits, and other forms of
compensation falls under this.

Employee relations: The GMHRM is in charge of overseeing employee relations at the


business. This entails handling employee grievances, resolving conflicts, and fostering a
productive workplace.

HR analytics: The GMHRM is in charge of gathering, examining, and interpreting


information pertaining to the business's human resources department. Making informed
decisions about hiring, training, compensation, and other HR-related issues is possible with
the help of this data.

The GMHRM is a member of the company's senior management group and reports to the
CEO. They collaborate closely with other team members to make sure that the human
resources department of the business is in line with its overarching goals and objectives.

A crucial position in any organization is the GMHRM. They are essential in making sure that
the business has the right people in the right positions, that they are inspired and engaged, and
that their pay is equitable. Additionally, the GMHRM is responsible for fostering a supportive
work environment and ensuring that the business complies with all relevant rules and laws.

3.3.1 Critical analysis of the role of HR management

The General Manager of Human Resource Management (GMHRM) of Dialogue Axiata's


leadership abilities and philosophies are essential to the organization's success. The GMHRM

15
is in charge of overseeing all aspects of the organization's human resource’s function,
including recruitment, education, pay, and employee relations.

Some of the key leadership qualities that the GMHRM should possess include:

Strategic thinking: The GMHRM should be able to develop plans to address the
organization's human resources needs by strategically analyzing those needs.

Communication skills: Effective communication with staff members, managers, and other
stakeholders should be a GMHRM's strong suit.

Decision-making skills: Making decisions that are in the best interests of the business should
be possible for the GMHRM.

Autocratic: The autocratic leader doesn't seek input from others before making decisions. In
times of crisis, this approach may be successful, but it can also alienate staff members.

Democratic: Before making decisions, the democratic leader consults with others. Although
it may take more time, this approach may result in greater employee buy-in.

Laissez-faire: Employees have a great deal of autonomy under a laissez-faire leader. When
workers are highly motivated and self-directed, this style may work well.

The needs of the organization and the particular situation will determine the best leadership approach
for the GMHRM. However, the GMHRM should constantly work to set a good example for staff
members and foster a positive work environment.

4.0 Use strategic management models to evaluate the current situation of


the organization.

The McKinsey’s 7’s Model and SWOT analysis will be used to analyse the situation at Dialog Axiata
PLC.

4.1 Applying McKinsey’s 7’s Model on the Current Issue

McKinsey's 7S model is a framework designed to assess an organization's effectiveness in achieving


its goals. It comprises seven components categorized into hard elements, which are under the control
of organizational management and can be modified relatively easily, and soft elements, which are

16
influenced by the specific context and individuals within the organization. The hard elements consist
of strategy, structure, and systems, while the soft elements encompass shared values, skills, staff, and
style, as outlined in the table below (Nugroho & Suwanda, 2022).

Source: cascade

Hard elements Definition


Strategy This outlines how the organization intends to accomplish its aims and
objectives. The company's objective, vision, goals, and the steps it takes to
achieve them are all included.
Structure This describes to the established hierarchy, job descriptions, lines of authority,
and reporting structures of the organization. It includes the divisions, teams,
and departments that make up the organization of the business.
System The methods, rules, and equipment put in place to support an organization's
activities are referred to as systems. This can include tools, processes, and
regulations.

Soft elements Definition

17
Shared values The fundamental ideals, rules, and moral standards that direct behaviour and
decision-making inside an organization are known as shared values. They help
to shape the firm's culture and have an impact on how workers relate to one
another and to stakeholders outside the organization.
Skills The competences, knowledge, and capacities of the workforce are all included
in skills. It entails both technical expertise and the capacity for productive
teamwork.
Staff This depicts the organization's workforce, including their numbers, skills, and
job responsibilities. Additionally, it takes personnel retention, development,
and recruiting into account.
Style Style alludes to the dominant management and leadership philosophies inside
the company. It covers how managers deal with staff, communicate, and make
decisions.

Strategy
At every organizational level, strategies are essential for maintaining competitiveness in the market.
Dialog Axiata has a well-defined strategic approach not only at the corporate level but also within
management and various functional areas. In the past company has bolstered its operations through
acquisitions like MTT, CBNSAT, and the acquisition of DERANA TV. Additionally, local strategic
alliances like Cargill's-Dialog which was established in 2013 served as a strategic move aimed at
enhancing customer value and competitiveness in the past.

Vision
To be the undisputed leader in the provision of multi-sensory connectivity resulting always, in the
empowerment and enrichment of Sri Lankan lives and enterprises.

Mission
To lead in the provision of technology enabled connectivity touching multiple human senses and
faculties, through committed adherence to customer-driven, ethical, responsive and flexible business
processes, and through the delivery of quality service and leading edge technology unparalleled by
any other, spurred by an empowered set of dedicated individuals who are driven by an irrepressible
desire to work as one towards a common goal in the truest sense of team spirit.

18
Also, in 2016 Dialog Axiata's sustained success and market leadership can be attributed to its annual
formulation of strategic plans, rigorously monitored monthly. The organization's commitment to
innovation is evident through its highly skilled research and development team. To facilitate this
innovative drive, Dialog Axiata has established a laboratory in a local university, consistently
generating solutions tailored to local demands. Notable examples of their innovation include the
Tsunami pre-alert system and the introduction of Nokia phones with Sinhala language settings. Dialog
Axiata has consistently outpaced competitors due to its relentless pursuit of innovation.

All these were because of better succession planning done in the past. However, the absence of a clear
leadership succession plan in the present scenario will become a great challenge and affect the long-
term strategy of the company. Without a pipeline of prepared leaders, the organization may struggle to
execute its strategic objectives.

Structure
The corporate level of the organization comprises five non-executive directors and one executive
director. These members of the Board of Directors play a pivotal role in the success of Dialog Axiata.
The Board holds the authority to designate executive directors, including the CEO. While there is a
divisional structure within the company, the performance evaluation of these divisions is conducted
by distinct strategic committees.

At present, with the economic crisis, several employees seeking better employment opportunities, and
retaining employee with the potential of becoming future leader in the company has become an issue
due to a lack of succession planning. If the company is unable to resolve this issue, there may be
uncertainty about who will fill key leadership roles, potentially leading to organizational instability.

System
At present, Dialog Axiata has employed a range of systems to maintain competitiveness in the market.
These systems include ERP (Enterprise Resource Planning), CCBS (Customer Care Billing System),
and HRIS (Human Resource Management).

Shared values
Dialog Axiata can be characterized as a workplace that brings together individuals from diverse
backgrounds, cultures, and even various nationalities. Over the years, the company has successfully
harnessed the collective strength of this diversity to accomplish its goals and objectives. In doing so,

19
Dialog Axiata has not only fulfilled the professional aspirations of its internal employees but has also
provided guidance and support for them to pursue their personal goals concurrently.

Skills
A key factor contributing to Dialog's success is the presence of highly skilled and motivated
individuals at the corporate, managerial, and technical levels. Both the former CEO, Dr. Hans
Wijesuriya, and the current CEO, Supun Weerasinghe, are inspirational figures known for their
distinct qualities. However, because of the pandemic and economic crisis, several employees with the
potential to fill top-level positions have left the organization. However, top management has been
taking necessary action to retain talent, but with the lack of succession planning in the company, their
efforts have become less effective.

Staff
Dialog Axiata presently maintains a workforce of more than 4300 employees. The company's
recruitment planning process is closely aligned with its business planning procedures. The specific
skills and competencies required for each position are determined based on the associated tasks and
responsibilities. Regarding attracting new talent, Dialog Axiata follows several policies with the
primary objective of identifying suitable candidates who can contribute to profit growth and support
individual career development, regardless of their background.

In 2022, substantial progress was achieved in talent development initiatives. During that year, the
company provided more than 1900 distinct training programs, amounting to a cumulative total of over
47,000 hours of learning. These programs were implemented using hybrid learning methods.
Additionally, a GIG economy model was introduced to incentivize staff and enhance overall
performance. The Talent Management team also conducted various programs to improve employees'
skills and communication capabilities. The need for training and development within the company is
identified through 360 performance appraisal evaluations and annual business plans. However, top-
level management might need to take further steps to overcome the challenge at hand to retain
specific employees with the potential to become future leaders.

Style
The organization's management style can be influenced by its goals and objectives. Standardized
practices such as adhering to strict deadlines and implementing a monitoring system at all

20
organizational levels are in place. Offering rewards and organizing social gatherings for staff
members can serve as effective motivators and lead to long-term employee satisfaction, providing a
substantial advantage to the company.

5. Recommendations for lack of succession planning

The 8-Step Change Management Model established by Kottler is a systematic strategy to assist
executives in efficiently implementing and integrating changes within an organization. The following
figure illustrates the 8 steps of the change management model developed by Kottler.

Source: Kottler 1996

Step 1: Create Urgency

Middle-level managers should collaborate with HR to perform a thorough examination of the current
succession planning procedures. Then determine the organization's position about developing and
identifying future leaders. Consider the dangers of not having a succession plan, including leadership
voids or the loss of vital expertise. Further, Compile information and proof to demonstrate the need of
succession planning. This might contain data on leadership turnover, industry standards, or cases of
businesses that suffered from a lack of succession planning. Create a compelling story to show why
Dialog Axiata's future success depends on succession planning. Deliver these reports to the CEO and
chairmen so they may investigate this issue. Afterward, the CEO can arrange a meeting with the
general managers of operations and human resources to discuss and address the turnover issue. The

21
CEO might also intentionally portray a sense of urgency and the seriousness of the situation, inspiring
senior management to aggressively look for a solution.

Step 2: Build guiding team

Determine who in the organization is passionate about succession planning and has the power to
affect change. Senior managers from various organizations, CEOs, or staff members who see the
value of developing future leaders may be among these people. then put together a diversified team
made up of important departmental stakeholders. The succession planning program's design,
execution, and oversight will fall within the purview of this team. A representative from HR, as well
as representatives from different business units and levels of employees, should be on this team.

Step 3: Develop the vision

Work together with the steering team to develop a compelling vision for succession planning. The
success of finding and grooming future leaders at Dialog Axiata should be outlined in this vision. It
needs to connect with staff members and reflect the long-term objectives and core values of the
business.

Step 4: Communicate for Buy in

Share the goal for succession planning with all workers by using a variety of communication
channels. All-company gatherings, emails, newsletters, and intranet announcements fall under this
category. Make sure the vision is communicated in a clear, compelling, and straightforward manner.
Encourage discussion and address any issues or queries.

Step 5: Empower action

Work together with the succession planning team to evaluate and remove any barriers to successful
succession planning. This can entail obtaining the required funding, dismantling departmental silos, or
dealing with change opposition. Make sure there is a clear strategy in place for removing these
obstacles. Top-level management may design and conduct training courses that give staff members
and managers the abilities and information necessary for successful succession planning. Workshops
on leadership development, mentorship, and talent discovery may be included. To ensure that staff
members are comfortable in their positions as succession planners, provide continuing assistance.

22
Step 6: Create short term wins

Establish precise, quantifiable, and time-bound goals for the succession planning project. These might
include objectives like establishing a mentorship program or identifying prospective successors for
important posts. To generate momentum and show the program's effectiveness, commemorate the
attainment of these milestones. Recognize and honor those people or groups who help the succession
planning activities succeed. Utilize internal communication channels to publicly thank them for their
accomplishments, and think about offering monetary rewards like bonuses, raises, or possibilities for
professional advancement.

Step 7: Don’t let up

As a basis for future advancements in succession planning, build on the early successes and beneficial
results. Take comments from stakeholders into consideration as you adapt the program. As confidence
and capacities increase, broaden the program's coverage to include more departments and roles.

Step 8: Make change stick

Integrate succession planning within the organization's structure. Update HR policies, practices, and
performance review systems to include elements of succession planning. Make sure it becomes a
regular practice as opposed to a one-time experiment. The CEO and chairman of the firm should
encourage top managers to take an active role in mentoring and succession planning. Their dedication
to the process will serve as a model for the entire company and encourage others to do the same.
Establish a routine assessment procedure to gauge the performance of succession planning initiatives.
Key performance indicators (KPIs) and data may be used to monitor success and pinpoint areas for
improvement. Make data-driven changes to the application to constantly improve it.

6. Personal reflection statement

My understanding of the complexities and significance of leadership in the context of


strategic company management has substantially deepened because of this investigation.
Additionally, it has introduced me to the conceptual framework used by earlier academics to
describe and clarify the essential characteristics of effective leadership.

23
It has been a wonderful learning experience for me to commence and traverse the
complexities of thorough evaluation under certain time limits while working on this report. I
have refined my capacity to carefully organize and carry out such initiatives through thorough
data collection, analysis, interpretation, and presentation gathered from secondary sources
such as journals, books, and websites. This project has also given me the opportunity to hone
my language skills by illustrating how the English language can be effectively used to convey
complicated topics in a clear and appealing way.

This assignment's successful conclusion has allowed me to advance both professionally and
personally. I've improved my time management skills while honing my talents to conduct
critical analysis and write reports. The result of this project has improved my abilities to
communicate verbally while also enhancing my ability to use examples, make
recommendations, and actively participate in debates about leadership and strategic
management dilemmas in a corporate setting.

I also evaluated my leadership skills utilizing a range of analytical internet surveys. I started
by taking the leadership test on excelatlife.com, which revealed that while my assertiveness
skills are high, my leadership and corporate skills are only mediocre. The evaluation found
that I often only take on leadership responsibilities when a designated leader is absent and
gave me advice on how to strengthen my direct communication. I then completed a
leadership trait questionnaire on mindtools.com, where I obtained a score of 70, indicating
that I am on the right track to being a capable leader. A leadership type quiz that I did from
Peter Northouse's book Leadership: Theory and Practice revealed that I excel in task
leadership behaviour and relationship leadership behaviour (refer appendix one for the
results). To better understand my leadership weaknesses, I also completed the Meyers-Briggs
Type Indicator exam.

I was given the commander personality classification based on the test findings. In contrast to
my shortcomings, which included being cold and cruel, intolerant, impatient, and arrogant,
my strengths were effective, energizing, self-assured, strong-willed, and strategic thinker. I

24
have included below the highlighted skill areas that need to be developed after analysing the
overall input on the leadership surveys.

 Improve patience
 Improve handling of emotions

Goal : to improve patience in both work and life


Specific actions to take : Meditation
Reading books related to human psychology
Doing breathing exercises

Resources to assist development: Using Kolb's four-stage learning cycle to improve patience
with others is a great strategy. Here's how I can put each stage of the cycle into action to
consistently develop my patience:

Month 1 - Reflective Observation

1st week - Think about times when you were impatient. Determine the triggers, settings, and
consequences.
2nd week - Look for trends and similarities in impatient triggers. Were certain persons or
expectations engaged on a continuous basis?
3rd week - Get feedback on your tolerance level from friends, family, or workplace.
Encourage children to share their thoughts and observations.
4th week - Go over and summarize your monthly reflections. Determine the primary areas
where you need to improve your patience.

Month 2 - Abstract Conceptualization

1st week - Begin to develop a theoretical grasp of patience and its significance in many life
circumstances.
2nd week - To further your understanding, read books, articles, or take workshops on patience,
emotional intelligence, and interpersonal skills.

25
3rd week - Create a documented strategy or plan outlining specific ways and tactics for
developing and sustaining patience with others.
4th week - As you get additional knowledge and insights, keep updating your mental model
and plan.

Month 3 - Active Experimentation

1st week - Experiment with patience tactics to put your theoretical knowledge into practice.
For example, in your own life, practice patience with family, friends, and acquaintances.
2nd week - When interacting with coworkers, clients, and managers, use patience.
3rd week - When faced with a difficult situation, employ the patience techniques you've
acquired on purpose.
4th week - Keep a notebook to record your experiences, noting when you were able to keep
patience and when you had difficulty. Use this self-reflection to help you develop.

Month 4 - Work Experience

1st week - To reinforce your understanding, continue to practice patience in real-life


circumstances.
2nd week - Seek comments from others on your patience growth. Consider their observations.
3rd week - Consider how your improved patience has improved your relationships, job, and
general well-being.
4th week - Celebrate your progress in gaining patience and see setbacks as chances for future
development.

Timeline :4 months
Goal : to improve handling of patience
Specific actions to take : Meditation
Reading books related to human psychology and emotions
Active listing
Time management

26
Resources to assist development: Using Kolb's four-stage learning cycle to improve of
handling my emotions at work and life. Here's how I can put each stage of the cycle into
action to consistently develop my patience:

Month 1 - Reflective Observation

1st week - Think about previous occasions in which you battled to manage your emotions.
Determine the triggers, settings, and consequences.
2nd week - Examine emotional triggers for patterns and commonality. Were there certain
persons or situations that regularly elicited distinct emotions?
3rd week - Get feedback on your emotional responses from friends, family, or workplace.
Encourage children to share their views and ideas.
4th week - Go over and summarize your monthly reflections. Determine the major areas in
which you need to enhance your emotional management.

Month 2 - Abstract Conceptualization

1st week - Begin to build a theoretical grasp of emotions and their role in diverse life
circumstances.
2nd week - To learn more about emotional intelligence, emotional control, and mindfulness,
read books, articles, or attend classes.
3rd week - Make a written strategy or plan including specific procedures and strategies for
dealing with your emotions.
4th week – As you gather new knowledge and insights, keep your mental model and strategy
up to date.

Month 3 - Active Experimentation

1st week - Experiment with emotional management strategies to put your theory into action.
When emotions emerge, for example, try deep breathing and grounding activities.
2nd week - Employ emotional management tactics in your relationships with coworkers,
clients, and superiors.

27
3rd week - When confronted with emotionally tough situations, employ the strategies you've
learnt on purpose.
4th week – Keep a notebook to document your experiences, noting when you were effective at
managing your emotions and when you struggled. Use this opportunity for self-reflection to
make improvements.

Month 4 - Work Experience

1st week - To reinforce your understanding, continue practicing emotional management in


real-life circumstances.
2nd week - Seek input from others on your emotional management progress. Consider their
observations.
3rd week - Consider how your better emotional management has benefited your relationships,
employment, and general well-being.
4th week - Celebrate your successes in emotional management and see failures as chances for
future development.

Timeline:4 months

7.0 Conclusion

The purpose of this report was to evaluate the problem lack of succession planning in Dialog
Axiata PLC is experiencing and how it would affect leadership in the framework of strategic
planning. The consequences of these problems are carefully examined in this report, and a
critical evaluation of the top-level management towards the strategic issue has been analysed.
In addition, the report evaluated the current issue using McKinsey’s 7S model and SWOT
analysis, and through this, it was further identified that there is a lack of future leadership in
the company. To overcome this issue, the Kottler’s 8 step of changeset management was
utilized to provide recommendations to tackle this issue successfully.

28
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Appendix 01

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