Verizon reorganizes for the future

Verizon has recently aligned and integrated its resources through a reorganization of its leadership team. This new structure will allow it to focus on the global enterprise market, and includes both its wireline and wireless portfolios, as well as its wholesale services.

It seems that Verizon had been seeking to avoid this move for the last two years, having insisted that its system of two separate but collaborating organizations was an effective model. The company did attempt to create an element of governance to promote this internal collaboration and align its investments in network and products. In the end, however, the forces of the market, and the demands of its customers and strategic vendors and partners, forced the company to move to a single, coordinated group. Other changes and follow-up reorganization announcements are still to come from dependent organizations, including sales.

Ovum believes this move was long overdue, and essential to providing integrated solutions and converged services that are no longer limited to technologies, media, or geographies. It was also necessary to allow Verizon to maximize its return on investment from specific assets and initiatives that were being diluted by the fact that multiple groups were working on similar programs and services. We expect to see an improved, integrated, and aligned services portfolio, as well as a series of programs that can now be leveraged in all markets and segments, and not be slowed down by internal interference or dual responsibility within the company. This will be welcomed not only by Verizon’s enterprise customers, but also by its strategic vendors and partners, who will now be able to easily find the executive responsible for any enterprise initiative.     

It was expected and necessary, but late in coming

It seems there were many reasons that this reorganization did not happen sooner, but a key factor was the cultural inertia that plagues most large organizations, along with memories of its past mergers and related integration. However, customers and vendors have been lobbying for this change, as there seemed to be duplication of and dual responsibility for many services and programs. Such responsibilities might be split between wireline and wireless services, or between US and global coverage. It was inevitable that eventually the efforts of Verizon’s staff would be integrated, allowing the company to face the market with more clarity.