So Long Sol

Four Seasons of Sol 

One of Australia’s most contentious CEOs is leaving at the end of June. Sol Trujillo has been in charge of Telstra for the past four years. (Telstra is the former government monopoly telecommunications giant that now must face a competitive world post-privatisation.)

Australians love to hate Telstra - it’s part of the national identity. Yet additional venom has been reserved for CEO Sol Trujillo. In turn he’s alientated government, the media, the public, customers, unions and shareholders. You have to admit he’s been quite thorough.

Before he even took the job or started as CEO Trujillo had several factors working against him. Telstra has offered decades of shoddy service at exorbitant prices. When I first moved to Australia in 1990 it was common to have one call to the USA costing over $100. Today a $100 phone card can keep you in touch for two or three years! Repairs were slow and new installations were slower. Hence - we love to hate Telstra!

Second factor working against Trujillo? Sin of all sins - he’s American. And Americans are universally idolised and despised in Australia (or is it just me?). We’re loud, brash, know-it-alls. We wear sneakers with khakis and shout when talking would do. We’re ignorant of the world and its customs (”Look at the funny Australian money!”). And when we succeed we don’t fade into the wallpaper and share the credit - we thump our chests and say, “Damn right!” Ain’t that awful?

Last year Sol was found to be less trustworthy than…the Wiggles. For real!

But the king pin reason for the “I Hate Sol”club is his approach to government relations and business. He rallied against restrictive government policies that would have forced Telstra to provide competitors discounted access to trunk lines. He fought to retain market share. And he made it difficult for government to take Telstra for granted.

But (and this is a BIG but) Sol did so in a very public manner. He and his team aired their grievances in the media, on-line and in public. It was reminiscent of Karl Rove where “divide to conquer” approaches split red states from blue states, brother from brother. The “in your face” style of issues management was very out of place in Australia and very controversial.

So farewell Sol. And as for the replacement CEO? Get ready. Because you’re replacing Sol people will love you - but only a little. After all, you’re at Telstra. (That is unless you’re a Wiggle!)

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1 Comment »

Florida Girl In Sydney wrote @ February 26th, 2009 at 10:21 pm

Does this mean they’ll find another American CEO so everyone can continue resenting Americans and hating Telstra at the same time?

Cheers.

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