Communication in Process

Case Study 10

SaskTel

SaskTel International has helped develop fibre-optics networks around the world, and when the Channel Tunnel connecting England and France was built in the 1990s, guess who was called? SaskTel was one of the main consultants. When SaskTel first started building its fibre-optics network in 1980, the longest network in the world was less than 10 kilometres. By the time work was completed in 1984, SaskTel had created the world’s longest fibre-optics network, covering 3268 kilometres and linking 52 communities. “SaskTel became famous in the telecommunications industry because of these accomplishments,” said Graham Bradley, who was part of SaskTel’s original fibre-optics team and went on to become director of the research and development group before retiring in 2000. “Our work is known better internationally than here in Saskatchewan or even in Canada,” he added.

Saskatchewan Telecommunications employs over 4000 people in communities throughout Saskatchewan and is the leading full-service communications provider in the province. It offers voice, data, Internet, entertainment and multimedia services, Web hosting, and text and messaging services over a state-of-the-art digital network.

The corporation also provides cellular and wireless data services, security monitoring services, directory services, in-room communications services to the health care sector through Hospitality Network, telecommunications consulting service through SaskTel International, and national communications services through Navigata Communications.

SaskTel has always been one of those inherently generous companies, willing to help others prosper. In 2005 SaskTel, in partnership with other private Saskatchewan businesses, paid over $26 million in commissions to its dealers and has spent more than $277 million on materials and services from over 4000 Saskatchewan suppliers.

Since 1987 SaskTel has invested over $2.7 billion in infrastructure in Saskatchewan. In 2005 a total of $116 million was spent on improving and maintaining its network, including the continuing evolution of CommunityNet, SaskTel’s wireless network, and the Next Generation Access Infrastructure (NGAI) program, resulting in Saskatchewan residents having one of the most sophisticated networks in the world.

In spite of an increasingly competitive communications market, SaskTel has found ways to maintain a financially sound revenue base that allows the company to return benefits to its customers and the province. The company says its first priority is to sustain profitability and long-term value through growth, operational efficiency, and capital investment initiatives.

“The communications industry is not bound by geographical borders and is highly competitive. In order to remain a strong company that can meet the needs of our Saskatchewan customers, SaskTel’s core communications offerings must expand by growing its business out of province,” says Robert Watson, SaskTel president and CEO. “Navigata will evolve into a 100 percent owned sales channel, based in North Vancouver, to sell SaskTel-developed Voice over Internet Protocol (VoIP) products out of province as well as support and grow the existing customer base in Western Canada.”

Critical Thinking

•How can SaskTel persuade customers and staff to adopt new technologies?

•What are the potential benefits to customers or staff of adopting new technologies?

•What resistance might SaskTel anticipate from customers or staff?

Process in Progress

SaskTel Revisited

SaskTel President and CEO Robert Watson, who refers to the employees as the “heart of the company,” notes, “SaskTel employees really do participate in the community and in volunteerism over and above almost any organization in Canada.”

And SaskTel really does care about the community. It demonstrates this by donating both time and money to community concerns and encouraging its employees to do the same. Often the company matches employee efforts, as it does through TelCare. Started in 1950, TelCare invites employees to donate funds through an automatic payroll deduction system, and then matches those funds from its own coffers. In 2005 the combined total of funds that was donated to community concerns was over $330 000.

“We focus heavily on education and technology, but the list of things we do and the organizations that we work with is endless. We’re everywhere,” notes Debbie Hunter, SaskTel’s director of volunteers. Although the company receives calls daily from charitable organizations asking for help, the calls are returned since SaskTel has a group of recruits ready to help. Hunter can call on her volunteers, who consist of 70 percent of the company’s employers, their families, and about 1500 retirees who logged 75 000 volunteer hours in a year. The company donates not only time but also money, and in 2004 it donated $2.6 million to more than 1600 not-for-profits. The company also matched at 50 percent the $254 000 raised by SaskTel employees.

The most significant way SaskTel demonstrates its commitment to volunteerism is through the SaskTel Pioneers. This huge volunteer organization has its roots in the United States when the first retirees from the telephone industry formed a group in 1911 to keep in contact with their colleagues. Although originally a social group, the Telephone Pioneers soon showed a strong dedication to community service. In 2002 the organization officially changed its name from the Telephone Pioneers of America to the Telecom Pioneers. Today, the Telecom Pioneers are the largest industry-based volunteer organization in the world with over 750 000 members.

The Saskatchewan Chapter (#59) became a member in 1947. Built on the principles of fellowship, service, and loyalty, the SaskTel Pioneers have 4350 members provincewide. Formed over 50 years ago, the SaskTel Pioneers offer their time, talents, and skills to over 100 ongoing community projects every year. In 2005 the SaskTel Pioneers contributed $383 553 in charitable donations and 85 805 hours of volunteer time—that’s the equivalent of over 40 people working full time for one whole year!

In 1995, recognizing the need to strengthen and build on an already solid relationship, a formal partnership was signed between the Pioneers and SaskTel. Together, they have projects such as paint recycling, phone book recycling, salvaging, corporate functions, and helping with other community activities such as dragon boat races, a jazz festival, and kids’ Helplines. Using the philosophy that “many hands make light work,” the Pioneers’ Web site (sasktelpioneers.com) invites visitors to help in dozens of ways—doing everything from wrapping gifts to raise money for mental health to painting garbage bins to beautify the community. (Historically, after this annual effort, the number of garbage fires deliberately set in the community is reduced by over 50 percent.)

Most of the volunteer efforts are family-oriented and billed as a fun way to “support your community.” Obviously, the SaskTel Pioneers are deeply involved in the health of every aspect of the community around them and deserve hearty appreciation. And this appreciation has come. Recognized locally, nationally, and internationally, the SaskTel Pioneers have won many awards—no less than 12 of them at the Telecom Pioneers 79th Annual General Meeting in Orlando, Florida, in February 2006.

SaskTel is a company that encourages and supports employees to participate in charitable activities. “Recognizing employees for their public service work shows the company values them and the community.”

Critical Thinking

•What are the direct and indirect benefits to SaskTel of its extensive volunteer programs?

•What are the direct and indirect benefits to employees?

•What are the direct and indirect benefits to customers and the community?

Process to Product

Applying Your Skills at SaskTel

SaskTel cares about the environment as well. It has developed an “Ecological Strategy” and tries to stay as “green” as it can. Environmentally friendly vegetable inks are used to print its directories, and phone books can be recycled. The equivalent of 20 semitrailers of new directories are delivered to customers throughout the province each year, so recycling is important! In order to prevent such huge quantities from being dumped into landfill sites, the SaskTel Pioneers collect and recycle them.

SaskTel is renowned for caring about people. It has implemented a representative workforce strategy so that the workforce can reflect the diversity of Saskatchewan’s people. Caring about its Aboriginal employees is a major strategic goal for the company. First Nations and Métis people make up about 8 percent of SaskTel’s workforce, but company President and CEO Robert Watson hopes that number can grow to 13.5 percent to be in line with the provincial composition. For its First Nations customers, the company’s call centre has services in three different First Nations languages, and it has also set up an interactive, high-tech drop-in centre in Regina to encourage Aboriginal youth to consider careers with SaskTel.13

The corporation is recognized as a top employer. The Conference Board of Canada acknowledges SaskTel as one of Saskatchewan’s top youth employers, and Maclean’s recognized SaskTel as one of the 100 best Canadian companies for which to work.14 Saskatchewan’s Crown-owned telephone company has been around since 1908, but has never laid off an employee, even during the Great Depression. This has created very loyal employees.

There are many reasons that the employees are loyal. In addition to paying for out-of-hours job-related education, SaskTel offers over 740 training programs online to ensure other employees have equal access to training materials. The company also provides personal resources such as on-site gyms and programs for weight loss and smoking cessation and really understands the importance of family.15 SaskTel in Regina holds employee and community raffles, with the proceeds going to the “Help Our Own People” program for employees who need special medical attention.16

SaskTel has loyal customers and prides itself on creating excellent customer service. This was confirmed by a study conducted by J. D. Power & Associates, a global market research firm. In its Canadian Wireless Customer Satisfaction Study, SaskTel ranked highest in customer satisfaction for contracted wireless service. SaskTel has a solid customer base of 450 000 subscribers to its voice, data, video, and wireless services. It has managed to fend off several out-of-province competitors in the long-distance market and, by diversifying its services, has been able to retain customers and create new opportunites for existing employees, who are retrained whenever possible rather than being laid off.17

Your Task

Write an open message to local communities persuading them to participate in your recycling programs. What tone should you adopt for this message? Should you choose a letter, memo, announcement, or some other format? What central selling points should you emphasize? What could serve as a motivator in a P.S.?