Conestoga Enterprises, headquartered in Birdsboro, PA, started out in 1902 as a local telephone company serving southeastern Pennsylvania. Today it is a fully integrated communications provider with 80,000 lines served.

In recent years CEI has undergone rapid change as it has added long distance business, wireless service, internet services and a competitive local exchange (CLEC) business to its core local phone service offering. Compass Points interviewed Bert Kramer, Conestoga's CEO, about how Conestoga implements a multiyear strategic plan in the context of an industry that is undergoing enormous and rapid change.

Compass Points: Describe the rate of change in the telecom industry? What is driving this change?

Bert: There are few other industries where change is so pervasive and rapid. Both new technology and deregulation drive this change. Since the Telecommunications Act of 1996 was passed, the rate of change in the industry has accelerated greatly. Public policy through the FCC has mandated that there be competition in what was once a regulated monopoly business. This has simultaneously created enormous opportunity and significant threats to our core business.

Compass Points: Every day another technology or competitor emerges in the market. Some you have to react to, but many are just distractions. How do you keep from being tempted to overreact to the momentary and immediate changes in business environment?

Bert: First of all, we have integrated the strategic planning process into our business routine. When we tried to do planning before we used the Simplified Strategic Planning process, planning always got pushed back by some matter that was perceived to be more urgent and important. Now we are more efficient at planning and don’t let it get put on the back burner. Having a plan with clear direction and priorities leads to a higher degree of completion of our projects. This gets the team behind the process and they feel it is very worthwhile.

Compass Points: What part of the process has helped you cope with an ever changing environment?

Bert: The action plans and the monitoring process have been the most important tools that we have used to deal with this situation. When things are changing fast it is easy to get distracted by the idea of the moment. Having a strategy with action plans keeps us on track; it helps us retain focus. We have monthly meetings to monitor progress. Since we have been using this process we have accomplished a much higher percentage of our goals than in the past. It is really about keeping your focus on what is important to drive your business forward.

Compass Points: You are in the 5th year of using this planning process. How have things changed?

Bert: In the early years we needed to spend a lot of time researching our markets and competitors to get a better understanding of our business environment. We thought we knew it, but we learned how much more there was to know about it. Now we spend less time on basic research and more time on strategic issues and sorting out our focus and establishing how we will win in our market. What has been pleasantly surprising is that this is a process that we have easily incorporated into our other ongoing business activities. This has made our other meetings much more productive.

Compass Points: How do monthly meetings help managers deal with the rapid change in the telecom industry?

Bert: The monthly strategic meetings provide a forum where: 1) Everyone is brought up to speed on the important things that are changing in our business. 2) There is an opportunity to raise new ideas and provide constructive feedback. 3) We build consensus and get the group working toward common goals as a team. 4) We urge the team to higher performance. No one wants to come to the meeting without their action plan on track. These meetings really help us zero in on the big things for our business and make sure that they get done.

Compass Points: Have there been any situations where you have had to make significant mid-course corrections to action plans because the environment has changed?

Bert: There is about one plan a year that is changed substantially or postponed because the business environment has changed. We're not afraid to make that change if it is consistent with the overall strategic direction.

Compass Points: Some people say that in fast moving businesses, like telecom and the internet, planning is pointless. Don't plan; just adapt fast. What is your opinion?

Bert: Our industry is truly going through unbelievable change. Sometimes people say that things are changing so fast that it is not worth taking the time plan, but we have found just the opposite. When it is changing this much, that creates all the more need for good planning.

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