Alarm bells rang at Viatel's HQ when it lost most of its customers through a US bankruptcy in 2001. But one year after emerging from Chapter 11 in May 2002 heavily encumbered with low revenues and a costly Pan European Network, the company hired Lucy Woods, CEO, to spearhead a turnaround and manage the recovery.
Viatel's shareholders hired Woods in 2002 and gave her a remit to re-create value in the business. No small task. The two greatest challenges she faced in the early days were getting on an even keel with the SEC as the previous management had let the company reporting lapse, and recreating a strategy that would attract investment. "This was at the time when the world's investors were falling out of love with telecoms so we had to have a very compelling plan," commented Woods. "The company had no energy, no strategy and few customers. We had to create a completely new plan, a new product portfolio, new operational processes, a new brand, a new sales force - in fact a new everything in order to attract customers." Read more
Woods took the job thinking that it would be interesting and challenging to start a telco from scratch with all the benefits of hindsight. "In 2003 many of the alternative carriers were struggling to become profitable due to all sorts of legacy issues that, in my view, could be avoided," she said. "I also wanted to be a Group CEO and work with a Board, rather than a divisional CEO."
Woods soon got to work on other areas of the business process. "Although we started with some cash we had to raise money quite quickly. There was a lot to do before this was possible, much of it related to corporate matters such as bye-law changes, board liabilities, business planning and financial reporting. I hired the best lawyer I knew and we got on with it," she said.
As the legal wheels continued to turn, Woods focused on reducing the network costs and upgrading the network where needed. She researched customer attitudes to telecoms and from the findings created a whole new brand and introduced four new product lines - one every eight weeks. "We also hired a UK sales force and set them to work selling simple DSL and Leased Lines, our first re-launched products. This was all done by a small team of experienced managers who were prepared to work hard and who knew 'what good looked like'. It was a tough and exciting time."
Viatel is now cash positive, and according to Woods staying that way is top priority. "Our UK business has grown well over the past five years and has a good reputation in the medium enterprise market. We are keen to keep this growth going and are always looking for good partners to extend our sales reach. Our pan-European business is doing really well despite the economic conditions and we will be expanding our channel sale into these markets," she added.
Woods has had a high profile career in the telecommunications industry. Highlights include 18 years at BT where she achieved a number of 'firsts' including being the youngest and first female to take a role in the procurement and finance department. Her role as chief executive, BT Northern Ireland and Republic of Ireland, put her firmly in the spotlight. Managing all of BT's business in both countries, Woods achieved success increasing revenue growth and an operating profit gaining her a reputation as a turnaround specialist. "My time with BT gave me professional training and the opportunity to hone my skills in a wide range of roles. BT was a great company to grow up in. I was taught what good looks like and given a great background to depend on."
It was also during her time in Northern Ireland that she was part of the Patten Commission on Policing as well as a number of other high profile public and non executive positions. Woods commented:
Woods left BT in 1999 and joined WorldCom as senior VP Europe. In her two years at the company she was again quickly promoted and became CEO (WorldCom and UUNet) EMEA. In the midst of the confusion and chaos of the WorldCom fraud investigation, Woods ensured that the EMEA region was cash positive and survived the situation. She noted: "My WorldCom experience made me a much sharper sales person, gave me excellent international and general management experience as well as teaching me how to manage the issues around bankruptcy, potential insolvencies and related legal issues. Also, of course, how to hold my nerve in tough times and present confident leadership to staff in any circumstances. Without this background, formed in both companies, I doubt I would have been so able to do well in Viatel."
Woods confirmed that Viatel is 'very keen' to continue developing a strong channel strategy and consider the channel to be vital to its long-term growth. "With this in mind, we design services specifically for the channel with a full range of support, to suit our partners individual needs, based on their own available resources," stated Woods. "This enables our partners to get started quickly before ramping up to more complex higher value sales."
Woods had become one of the most successful CEOs in the telecoms industry, and her reputation as a 'turnaround specialist' has again proven. She commented: "At Viatel, contrary to my expectations I have been tested well and parts of the role have been very tough. I am proud that I have stuck it out and finally delivered for the investors who had faith in me."