Not only did the mangers receive training in these six areas; Alicante’s executives invited them to participate in drawing up a year-long development plan to spread what they called the ‘new management style’ through better communication, training, employee empowerment and processes. For example, the unit began issuing a monthly newsletter to reinforce customer-oriented goals and values. It also distributed a quarterly report to educate all employees about new services available for customers and publicly recognized employees and managers who proactively came up with creative solutions to problems. At the end of the year, all managers were surveyed to assess their progress in changing their management style. The response showed that 75 per cent were satisfied with the results; 92 per cent said that top management had provided the support needed for managers to make the change.
Alicante’s progress prompted Telfonica to extend this change process throughout the company as it made the transition to a deregulated, private company (with a small ownership stake retained by the Spanish government). Soon the internal changes prompted several external changes appreciated by customers. Telefonica reduced rates, offered 24-hour customer service, installed new phone lines within twenty-four hours, and cut the length of service outages by 20 per cent. It also moved aggressively into South American markets and added new technologies and services such as Internet access and wireless communication. To reward performance, management offered stock options to the entire workforce.