Verizon is one of the strongest wireless companies in the United States. That being said, over the last decade they have not been firing on all cylinders. Years earlier, they rocketed to success under CEO Ivan Seidenberg. Then they struggled for several years under CEO Lowell McAdam. Now under new CEO Hans Vestberg, and with the new 5G transition, the hope is the company will get back onto a growth path. In my opinion, they seem to be heading in the right direction, but slowly.
Recently, there is quite a bit of activity among top executives at Verizon. So, that means there is quite a bit to sort through. Let’s try to sort through all the changes and see what we can expect next from them, both in the short-term and the longer-term.
Significant Verizon management shakeup under CEO Hans Vestberg
The executive movement at Verizon looks more like a major shakeup. Senior executives are coming and going, and others are moving around.
What I hope is when this game of musical chairs ends, they will have the right executives in the right roles and Verizon will once again be on a strong and rapid growth path, like they were years ago.
I would like the see Verizon recapture the glory they once held in the wireless industry.
Giving Hans Vestberg credit, he seems to be both moving executives around and bringing in some key, new executives as well. This has potential.
New CEO of Verizon Business, Sowmyanarayan Sampath
Example, last week Verizon announced a new Executive Vice President and CEO of Verizon Business, Sowmyanarayan Sampath, who will report directly to Hans Vestberg.
Sampath will replace Tami Erwin, who will take the role of Strategic Advisor to the CEO until the end of this year. Her exit comes after 35 years with the company.
Sampath is no stranger to Verizon Business or to the wireless industry. He has been a real asset to the company. He has been Chief Revenue Officer of Verizon Business as well as President of their global enterprise business.
Next, we will wait and see what changes he makes at Verizon Business. There is a real opportunity here for him to shine and for Verizon to benefit.
I firmly believe Vestberg is expecting change and growth under Sampath at Verizon Business.
Verizon success strategy needs to improve Industry Analyst Relations
While Verizon is a great company and they are run by great people, they nevertheless do have problems.
One of the key problems I have seen over the last several decades, is their uneven approach to their communications strategy and the marketplace.
As a Wireless Industry Analyst, I have participated with every wireless company who reaches out. I have personally met with and advised senior executives with my opinion of the changing industry and coming opportunities.
What I have learned over time is that some companies are stronger than others at Media Relations, Industry Analyst Relations, Investor Relations and more.
While Verizon has done a good job in the past, they went off-track years ago and have not recovered. Not yet anyway.
· Few companies are great on an ongoing basis over decades.
· Most ebb and flow over time. Some years they are very active, while others they are not.
· Still others don’t understand the importance at all. This has a negative impact on them, their growth, their investors and more.
I believe Verizon can recover and quickly if they focus. So, the real question is, do they understand the importance in getting this right and will they focus?
Your guess is as good as mine, but I hope so. I would love to see them on top of the world once again.
Analyst Relations and Media Relations are key to Verizon success
Verizon has ebbed and flowed over time.
The fact of the matter is, Analyst Relations, Media Relations and Investor Relations are important keys to success of every company. Some companies don’t have to work hard and are still successful. However, most companies must focus on this area and work it every day.
The reason is simple, there is a reality and there is a perception of reality. Plus, there is quite a bit of noise every company must compete against.
As good as a company is in reality, they also must create the right perception of reality for customers, investors and workers to understand.
Verizon needs to improve Industry Analyst Relations, Media Relations
This is where too many companies have not done as strong a job as they need to. Including Verizon.
That is one of the key reasons Verizon has struggled in a marketplace over the last decade.
When they have focused on this area in the past, they have won. However, when they lose focus, they lose. It is really that simple.
Think of the marketplace like a blank slate. The marketplace opinion of a company needs to be educated. That education must come from the company itself. That is the only path to long-term success.
Ignoring that reality is simply a recipe for disaster.
Verizon needs to focus on both reality and perception to succeed
If a company does not craft its own image in the marketplace, others will. Every company has an image and that translates to the investor, the customer, the worker and more.
Companies either manage their own image, or others will.
As a result, companies are either on the growing side of the growth wave, or they are on the falling side.
The only way for companies to be on the growing side of the growth wave is for them to both craft their own messages and manage the perception in the marketplace.
Verizon must tell their story or competitors will do it for them
Companies who carefully craft their own message are generally on the growing side.
Companies who don’t, and who let the marketplace craft their image typically suffer and are on the falling side.
It is really just that simple.
So, companies must control the dialog about who they are and about how they compare against their competition in their industry.
Growth wave concept is key for Verizon to understand
If they don’t steer their own ship, the opinion about them is created by others who are not looking out for their best interest like competitors, the media, the analyst community, investors and so on.
So, it is key for success that every company continue to participate in this game.
They must both be winners, and also be perceived as winners. Without that, they lose.
Verizon lost its footing with image in marketplace over last decade
In the periods where Verizon is active in this area, things are generally good. However, in the periods where they are not active, they struggle.
During the last decade, Verizon has been struggling compared to the solid progress they should be seeing.
Today, they have a new opportunity to get back on track under Hans Vestberg and the new executives he is bringing in and moving around.
My hope is that they all fully understand the challenges they face and the solution they must achieve. They are a good company run by good people.
So, I hope Verizon can get back on the reality and perception track once again and start their growth engines to become the industry leader they once were.
The success formula is really that simple. Now they must execute.
