C-ing Behind the CEO
An Interview with Tim Harden, CEO, AT&T West
OSP Magazine August 2007
Today is my 10th anniversary as OSP™'s editor. Today, is also my deadline for completing OSP™'s interview with Tim Harden, CEO of AT&T West.
It's an interesting coincidence, really. Ten years ago, when I walked into this position with only earnestness and a journalism degree, Outside Plant® Magazine seemed to lack a voice. It was a brand known to only a few, and unknown by just about everyone else in the telecom industry.
In the first few years of my career, my mentor, Bob Stoffels, (former editor of T&EM, the magazine that became America's Network), told me to stick my neck out and interview the network executives at the large RBOCs. He told me our brand needed an editor who could break through the clutter and talk to readers' bosses as well as the readers themselves. I smiled and nodded, knowing full well those execs would never return my call.
Gradually, things changed. Outside Plant® evolved to OSP™. OSP EXPO became known as the live version of the brand and a venue that providers trusted to effectively educate their network teams in a matter of days. Still, I found myself tentative to place a call to a director or vice president within a large RBOC or progressive IOC. I'd cross my fingers and hope they wouldn't hang up on me.
Today, 10 years have passed and our team has been given the opportunity to interview a CEO of a large communications and entertainment company. The reason is our readers. Month after month, and year after year, our readers use this magazine as an educational tool. Their loyalty has allowed me to be in the right place at the right time, bringing Tim Harden, CEO of AT&T West, to this issue for an exclusive interview.
Though many things change over time, some remain tried and true. Telecom providers are becoming entertainment and communications companies, and OSP™ is evolving beyond its original mission to remain at their side. And that which remains the same? Your editor still must remind herself to uncross all her fingers and toes before she puts a call into those network executive types.
TOPIC: Customer Expectations
OSP™: New customer requirements have transformed our industry in the United States:
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TOPIC: AT&T U-Verse Harden: No. The increase in installs reflects the popularity of our U-verse TV offering, so we're working to meet the demand. Building out the network more rapidly will bring the benefits of the new, advanced features of our Internet Protocol television service to customers more quickly.OSP™: Has the cost per install increased or decreased over the last year? What is AT&T's plan to improve its cost to connect users to its video services? Harden: AT&T is continuing to refine the process of delivering excellent customer service while at the same time controlling expense. Getting repairs done quickly, the first time, is a top priority. Many customer situations can be resolved without a truck roll, and we're continuing to refine and improve our test system capabilities. In addition, we are investing to equip our field forces with the tools necessary to resolve any facility issue. We are continuing to evaluate all aspects of installs to improve efficiency and reduce expense.OSP™: Do consumers really understand the difference between cable offerings and IPTV offerings? Recently, AT&T reported that 60 percent of the customers who took the remote control in their hand and played with the U-verse service bought it. That's good, but not yet a large majority. Obviously, this kind of sale can't be handled by a call center. What does AT&T plan to do to make the distinction really clear? Does the OSP field professional fit into that plan in any form or fashion? Harden: Obviously, we're delighted by the positive cus-tomer response to AT&T U-verse. We've developed extensive marketing plans to inform consumers about the advantages of U-verse TV over traditional cable – and we know that all of our employees, including OSP field professionals, will help to spread the word. Our employees understand that video services are an important part of our strategic growth plan. TOPIC: Convergence and Strategy Harden: The new AT&T is focused on integrating technologies to deliver a new level of unparalleled connectivity. We've had strong results from our major integration initiatives over the past several years, and that has enabled us to successfully bundle our suite of telecommunications services for consumers and businesses. Our employees understand that being the provider of choice for telecommunications services means offering the entire range of services that people want and need. We're pleased that we've seen success in bringing these elements together to deliver for our customers. OSP™: While AT&T positions itself as a communications and entertainment company, many content developers perceive it as a distribution company. How does AT&T plan to combat that?Harden: The telecommunications business has changed dramatically, and we have evolved to meet the changing demands for customer services. Entertainment services are an essential part of our strategy going forward, and we will pursue that strategy through a variety of initiatives that will continue to position us to meet the demands of the marketplace. The great news here is that demand for information, entertainment, and bandwidth is soaring, and the new AT&T is well positioned to become the only communications and entertainment company customers will want. OSP™: Since OSP™ is about the HOW – how will convergence of wireline and wireless business affect the network organization? Where will the most change occur, and what will the ideal employee of the future bring to a converged communications and entertainment company?Harden: We need people, as always, with the best skills combined with the flexibility to adapt to rapidly changing technologies and market conditions. As a company, we've always been focused on customer service, but in today's highly competitive environment every employee needs understand they are each stewards of AT&T's 125-year legacy of customer service. It's nearly impossible to predict what the future will bring, but the challenge is to be able to prepare for change in order to capitalize on the opportunities it will present. OSP™: What's the biggest challenge for AT&T right now compared to a year ago?Harden: Continuing the rollout of our video services, both AT&T U-verse TV and our AT&T Homezone products, to meet our goal of making these services widely available in the market. AT&T is Number One in wireless, AT&T is Number One in broadband, AT&T is Number One in serving business customers. We know how to mass market; we have lots of experience introducing new products. We're rapidly expanding our network, and we expect to be very successful in growing our video market share. TOPIC: Bandwidth Demands Harden: We believe our FTTN architecture provides more than adequate bandwidth for the future. We designed our FTTN network for growth and flexibility. For example, we have additional capacity available at the side of the home to accommodate a substantial increase in bandwidth needs for future applications. Bandwidth demand is the essential issue of the future of the Internet. Specifically, how will the market be able to fund the extensive infrastruc-ture expansion required to meet the broadband demand? The reality is that demand for more information, more entertainment, and increased bandwidth is growing. Telecommuni-cations providers need incentives for investment in capacity in order to meet customer needs and respond to customer demand. TOPIC: Bundling Harden: Consumers continue to tell us they want the advantages of bundled services. They like the convenience of dealing with one company, the ease of a single bill, and the value associated with combining voice, video, Internet, and wireless into one package. That certainly gives AT&T a strategic opportunity to capitalize on bundling our range of communications services, and we have developed a wide variety of offerings to meet the market needs. Network employees, both wireless and wireline, play a vital role in maintaining reliability and making AT&T the most complete, most trusted, and most innovative provider. OSP™: Internet Protocol, wide availability of broadband, and digital content combined with increasing consumer participation in the value chain are responsible for changing the determinants of success in the con-sumer services market. How will AT&T respond to the changing business models of these three disruptive networks: TOPIC: OSP Professionals Harden: AT&T will do what needs to be done to meet customer demands in the field or inside the customer's home. We're listening to customers and we will continue to evolve to meet any changing needs. We intend to focus on delivering what customers want.OSP™: AT&T's three-screen strategy is strong. How important is the OSP to making the customer experience a stellar one as the bundle is sold and delivered to end-users? Harden: The role of OSP employees is vital. They service and maintain the core networks that allow AT&T to deliver an unparalleled level of reliability and connectivity that consumers demand in today’s digital world. In addition, many of our OSP employees are customer-facing and increasingly we are relying on them to ensure our customers receive outstanding service. TOPIC: Leadership Harden: I’m biased in that the bulk of my career has been on the network side, so I know how important our technology backbone is to providing services to our customers. That's evident in my priority of making sure that we have the capacity as we roll out new services like television in our region. In addition, as I said earlier, many of our network employees have direct daily contact with our customers, and it's imperative that they are taking care of the customer in a way that meets our ethic that The Customer Rules.OSP™: What are the five qualities of a successful leader?Harden: That's a timely question. Our new chairman and CEO, Randall Stephenson, recently articulated "The AT&T Customer Rules," a set of five service guidelines for our employees that are equally applicable to leadership: take ownership and show we care; be responsive and deliver: do it right; make it seamless; and meet commitments. That's good advice for leaders and everyone in a position of responsibility to employees or customers.OSP™: OSP™ believes that the human network is equally as critical as the physical network, and money is not the sole motivator for employees. With responsibility for over 40,000 people, what's your style to inspire people to perform at their highest professional level?Harden: I think you're correct about the human network being essential. AT&T has always placed high priority on making sure employees are skilled and well-trained. Beyond that, everyone in a position of leadership has to set an example for the people who are on their team. With a team that large, organization and clear responsibility are essential to success. OSP™: What is the one thing that's most important to you as you move to evolve the new AT&T?Harden: It's exciting to be in a business that's changing so rapidly. It wasn't so long ago that wireless and broadband were novelties; now they are essential to the way people live and work today. In fact, wireless and broadband are the two most essential elements of our business today. I'm also excited about AT&T U-verse and the technology convergence that is occurring inside American homes. Just thinking about it fires me up for work everyday. I look forward to continuing to be part of an organization that is always working to stay ahead of the technology curve in anticipating market demand and delivering new, innovative services to consumers. -------------------------------------- More Than a CEO . . . He KNOWS the Network Previously, Harden served as president of Enterprise Business Services – Data and Network Services for SBC Operations. He has gained broad telecommunications experience from a series of executive assignments within SBC and Pacific Telesis, including president of SBC Telecom, Inc. and senior vice president – network engineering and planning of SBC Data Services. Prior assignments include vice president and general manager – SBC Industry Markets operations, responsible for service and support of network wholesale and local competition customers within SBC; vice president and chief operating officer of Pacific Bell's Broadband Deployment Advanced Communications Network; vice president and general manager of Pacific Bell Industry Markets; vice president and general manager of the Pacific Bell North Coast Regional Business Unit; and president and chief executive officer of Pacific Telesis Business Systems. Other assignments have included positions in operations, special services, customer services, and switching in both Northern and Southern California. Harden joined Pacific Bell in 1982 from Caterpillar Tractor Company. He graduated from the U.S. Naval Academy in Annapolis, Maryland, with a Bachelor of Science degree in Engineering and Operations Research. Harden is active in organizations that promote economic development, educational, and youth activities. He is a member of the Bay Area Council Executive Committee, San Francisco Committee on Jobs and Southern California Leadership Council. Harden also serves on the board of trustees for the San Francisco Museum of Modern Art, the board of directors of the Mt. Diablo Silverado Council of the Boy Scouts of America, and the national advisory board of the AT&T Veterans Organization. |
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