Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Cultural change blowing in the wind at Telstra: Budde

A co-operative, collaborative Telstra could be on the way with new CEO Thodey

A more co-operative, collaborative Telstra could be set to emerge with the appointment of Telstra group managing director of enterprise and government, David Thodey, as the new CEO, according to telco industry expert Paul Budde.

Strong cultural change is also on the cards with the resignation of Donald McGauchie as chairman, and appointment of Catherine Livingstone as the new Telstra chairman.

Budde said Thodey represented a very different personality from current CEO Sol Trujillo in his business-like approach to management.

“It will be a huge difference in management style,” he said. “He is from the model school of business management where you are co-operative and you look to collaborate, rather than the old school of leadership which is ‘my way or no way’.”

“It is very important that McGauchie has gotten out. It’s a clear sign that the old-school has lost all its members, and this clears the way for a totally new, engaged Telstra with the government and the rest of the industry.”

Budde said Thodey’s background outside the telecommunications industry as the former CEO of IBM Australia ANZ and his being perceived as not closely aligned with departing CEO Sol Trujillo, were vital in his selection as CEO.

“It’s clear that you can’t have anyone tainted with Sol Trujillo as he has created so much bad blood, and [selecting someone associated with Trujillo] would have made it very difficult to build the bridges again,” he said.

“A few months ago I would have argued for the selection of a Telstra outsider [as CEO], but it has become clear that Telstra is willing to change. But, given the changes Telstra has made I now feel comfortable that even a person from inside Telstra can bring the [wider] change that people want to see.”

Thodey’s selection could also have a positive effect on the way the federal government’s National Broadband Network (NBN) was rolled out, Budde said.

“It will still be tough negotiation over the next six to 12 months, but it will now be done with the understanding that that the NBN will be there and it will be a national infrastructure plan, not a national Telstra infrastructure plan,” he said.

In further management changes, Telstra has also announced that its board has appointed Telstra chief financial officer, John Stanhope, as an executive director of the board.

Additionally, current board member Peter Willcox has tendered his resignation to the board due to concern that the James Hardie judgment may cause embarrassment to Telstra. He will remain a director until the Telstra AGM in November.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: ANZ, etwork, IBM, IBM Australia, Telstra
References show all

Comments

1

Anonymous

Sun 10/05/2009 - 12:52

Paul Budde

Why on earth is Paul Budde considered a telco industry expert?

This is the same person predicting Acacia would win the bid for the NBN.

2

Telstra Customer

Mon 11/05/2009 - 15:05

Hopefully Mr Thodey will also remember that its not just all about shareholders as Mr Trujillo said. Customers need to be pleased as well and if they are well pleased then shareholders pleasure will follow.

3

Anonymous

Mon 11/05/2009 - 22:27

Pual Budde - who cares what he thinks

It is a sad reflection on the IT media in Australia that Paul Budde's often ill informed and ever so smug self righteous opinions get so much of a hearing - why can't we have some open minded informed comment instead of biassed and often incorrect commentary. At least he's consistent - he's been terrible for years.

4

pcoulter001

Wed 02/09/2009 - 14:47

The cultural change is noticeable. The huge impact on management style is the main part to emphasize on. The new challenge, the new environment- hope both works better together.

<a href="http://www.hobbybreeders.com/Breeders/">dog breeders</a>

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the CIO comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: David Thodey, Telstra
Latest Blog Posts
Whitepapers
  • Pathways Advanced ICT Leadership Development Program Brochure and Course Outline 2012
    Developed by the CIO executive Council in conjunction with Rob Livingstone Advisory, Pathways Advanced is a 12-month CIO delivered, small group, mentor based professional leadership development program. Pathways Advanced brings together best practice, thought leadership and business insights for today’s most promising ICT professionals
    Learn more »
  • CommVault Extends its Data Protection and Information Management Strategy with Simpana 9
    This IDC Insight explores the differentiators of CommVault's Simpana data and information management software and the customer challenges the help address. The focus of this Insight is on the data management and data protection capabilities on Simpana.
    Learn more »
  • Protecting Generation Web
    From data privacy to personal safety issues, cyber-bullying, inappropriate content and malware, schools are facing an increasingly difficult task when it comes to allowing young people to spread their online wings without compromising their safety and personal development. The reality that most schools are catering to the needs of mixed age groups and abilities, and it’s easy to understand why a simple stop and block approach won’t work. Learning environments are, by nature, flexible. It stands to reason that the IT resources used in them should be flexible too. Read on.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Recent comments