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Rogers Sets ‘3.0’ Reorg In Motion

Outlining some hard truths, Canadian mobile and cable service provider Rogers Communications launched a multi-year plan last week that included a reorganization of its operations and leadership team alongside a focus on overall growth and an overhauling of its customer experience.

Dubbed “Rogers 3.0,” the plan reflects feedback from customers, employees and shareholders, the company said, noting that it will focus on several strategic priorities, including overall growth, an overhaul of the customer experience, business services, the delivery of content everywhere, and a focus on innovation.

“Every day I marvel at what an amazing company Ted built, Rogers president and CEO Guy Laurence said in reference to company founder Ted Rogers, who died in December 2008 at the age of 75. "The mix of assets, the culture of innovation and depth of employee pride is extraordinary. But we've neglected our customers, and we've let our legacy of growth and innovation slip. The plan I've laid out will significantly improve the experience for our customers and re-establish our growth by better leveraging our assets and consistently executing as One Rogers."

The plan also comes with a reorganized management and operational structure, including a separation of Rogers’ customer and enterprise business units, while retaining its existing media business unit.  Additionally, all customer experience functions, including customer care call centers, field operations, go-to-market and online channels will be tied into one team reporting to Laurence.

Laurence said Rogers 3.0 will focus on “fewer, more impactful initiatives” under the new streamlined structure.

The new structure will also be led initially by the following exec team:

  • Consumer Business Unit: Rob Bruce, President;
  • Enterprise Business Unit: Larry Baldachin*, President;
  • Media Business Unit: Keith Pelley, President;
  • Customer Experience: Mike Adams*, Chief Customer Officer;
  • Brand Management: Dale Hooper, Chief Brand Officer;
  • Strategy, Wholesale & Development: Frank Boulben*, Chief Strategy Officer;
  • Corporate Affairs: Phil Lind, EVP Regulatory and Vice Chairman;
  • Legal: David Miller, Chief Legal Officer and Secretary;
  • Human Resources: Jim Reid, Chief Human Resources Officer;
  • Finance: Tony Staffieri, Chief Financial Officer;
  • Information Technology: Linda Jojo, Chief Information Officer; and,
  • Network: Bob Berner, Chief Technology Officer.

*Interim leader

With Rogers to be divided into three areas, Rob Bruce has decided to leave Rogers and agreed to help Laurence through a transition period until the end of year, Rogers said. In April, Phil Lind announced his plan to retire at the end of 2014, but has agreed to stay on for at least three more years in an advisory capacity and will remain on the Rogers board of directors and the Rogers Control Trust. An internal and external search has begun for all interim appointments, the company noted.

Rogers posted consolidated revenues of $3.02 billion, essentially flat from the year-ago quarter, while net income reached $307 million (66 cents per share), down from $353 million (80 cents per share) in the year-ago period.

On the wireless side, Rogers added a net 2,000 post-paid subs, versus 32,000, and posted a net loss of 73,000 prepaid subs, narrowed from a loss of 93,000 in the year-ago period.

Rogers lost 20,000 video subs in the quarter, giving it a total of 2.1 million, added 20,000 broadband subs for 1.98 million, and added 10,000 phone subs for 1.16 million. During the period, Rogers added 10,000 total service units, 8,000 fewer than it did in the first quarter of 2013.