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02
Value creation
109
Group chief executive
officer’s report
– continued
Our value-creation
strategy
Our strategic focus
Over the last four years, we focused on driving strategic initiatives to
transform our business, dealt with our employee headcount challenges
in a productive manner, stabilised our Mobile business, and managed our
third-party spend effectively, while displaying improved discipline in our
allocation of capital. Our business units are well positioned for growth and
accelerated capital investment in the year under review.
As we seek a sustainable growth framework for the group, we have
embarked on an accelerated capital investment program which focuses
on key growth areas such as fibre and mobile, which are key to the
sustainability of our business. Our accelerated investment programme
commenced in the year under review with an investment of R8.6 billion.
We are planning to invest between 17 percent and 20 percent of capex
to revenue. Our investment programme will be strategic, success-based,
measured and flexible throughout the cycle. We will only accelerate capex
where we see acceptable return on investment.
While we continue to invest in multiple technologies. We believe a robust,
reliable and, more importantly, flexible fibre-enabled network will ensure
we are ready for the exponential data growth we are seeing across mobile
and fixed network. Underpinning this investment lies the ability to offer
pricing flexibility through our wholesale arm which will bring high-speed
broadband with reliable quality to consumers and enterprises at affordable
prices. Our Mobile business has shown significant growth and has become
a formidable player in the market. We are building an IP core network
to support our strategic ambition of becoming a leader in fixed-line and
mobile broadband. Our current growth demonstrates the appetite for our
data-led products in the market. Our capex investment in mobile business
will be returns-driven and focus on coverage and density of our network to
support the anticipated growth.
Relationships and leveraging human capital
Our employees
We aim to have the right people, with the appropriate skills in the right
positions to take us forward after a challenging but critical review of
our employees and headcount over the last few years. During the year,
Telkomappointed a new head of human resources (HR), Melody Lekota.
Her perspective and experience in a wealth of customer-facing business
environments will further align our workforce to grow our business. New HR
department heads were appointed for Openserve andTelkomConsumer.
We continuously measure our effectiveness and use the feedback from
customers to measure employee performance and prioritise areas of
improvement. Our management of succession and talent continues to
improve, and we implemented quarterly talent and succession events to
directly engage with employees on future prospects, career paths and
performance. The fair, clear guidance and interaction provided by our
management to employees provides a reference point for them to assess
their performance and improve.
Our business leaders are intrinsically tied to the performance of their
teams through new remuneration procedures, fostering a teamwork
mentality to supportTelkom’s evolving culture. We introduced an
incentive system based on performance, called Performance Pays.
This was implemented toward additional employee efforts by up to
12 percent of their base salary every month. Refer to page 109 for
information on our remuneration policy.
As we seek a sustainable
growth framework for the
group, we have embarked
on an accelerated capital
investment programme
which focuses on key
growth areas such as fibre
and mobile.