Setting A New Ring Tone At Hawaiian Tel
Recruited because of his reputation as a corporate Mr. Fixit, Eric Yeaman has Hawaiian Telcom pointed in a new and profitable direction. Hang up the old notion of Hawaiian Telcom as a “phone company.” That’s as outdated as rotary dials and switchboard operators. Yet, admittedly, many of us still view this local institution as telephone cords, utility poles and information-please operators.
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Eric Yeaman’s rescue plan for Hawaii’s only telecommunications company awaits an Oct. 7 bankruptcy/reorganization hearing
Hang up the old notion of Hawaiian Telcom as a “phone company.” That’s as outdated as rotary dials and switchboard operators. Yet, admittedly, many of us still view this local institution as telephone cords, utility poles and information-please operators.
That’s because, unless you’re employed by the company, few of us have set foot in that highly secured building at 1177 Bishop St., the nerve center of our communications network in Hawaii.
But we penetrated the monolith, legally, so we could call on Hawaiian Telcom president-CEO Eric Yeaman. He’s been in his new job for a year, and we were interested in some clear signals on where the company is and where it’s headed.
Where it is today is pretty obvious if you read the headlines. Hawaiian Telcom Files for Bankruptcy. Reports Losses of Millions. Seeks Restructuring. Closes Three Stores. Opposes Buyout Offer.
On Dec. 8, 2008, Hawaiian Telcom filed Chapter 11 bankruptcy, and on June 3 filed a reorganization plan with the court. A confirmation hearing is scheduled for Oct. 7.
Hawaiian Telcom has more than $1.1 billion in claims, more than half of it owed to lenders. Its turnaround plan calls for converting debt into equity, and essentially reducing the debt by 75 percent, down to $300 million.
“We would emerge from bankruptcy a stronger and more financially secure company,” Yeaman says.
Meanwhile, it’s business pretty much as usual.
The young CEO, 41, says he’s focused on the company’s “transformation” and “revitalization.” Personable and motivated, Yeaman realizes he is the steersman for a critical journey in the company’s ride out of financial distress. Every step in his career has seemingly prepared him for this moment, and he is up to the challenge.
He tells friends: “I’m having the time of my life.”
That’s not being frivolous about the task at hand, he contends. That’s being “passionate” about taking Hawaiian Telcom into new dimensions of technology and growth.
The Konawaena High School and University of Hawaii (“public school”) grad draws upon 20 years of experience in the financial field and being a catalyst for change at venerable organizations, including Arthur Andersen, Kamehameha Schools and Hawaiian Electric.
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Asked about the move from one utility to another, Yeaman says his experience working in a regulatory environment and knowing the players are positives.
“But the businesses are dramatically different,” he says. “Hawaiian Electric sells one product - electricity. Hawaiian Telcom’s product is communications, sold in different ways. It’s a complicated business that is technology-related.
“When I got the call from (Hawaiian Telcom board chairman) Walter Dods about this job, my first reaction was, ‘Why would I do this?’ The more we talked, it reminded me that the company was my first client (at Arthur Andersen). I got to know the people, the business and how it served the state.”
Yes, he’s come full circle. Adds Yeaman, “It’s in a situation where it needs help. If Walter and others involved feel that my experience and skills can help move this company forward, then I am willing to give it my best shot.”
Yeaman is reflective as he eyes a photo montage on his office wall. It is artistically arranged with company ID mug shots of his 1,400 employees.
“That is the heartbeat of this company,” he says about the workers. “They didn’t cause this situation, but they are committed to our recovery and success.”
Their CEO also is doggedly determined to win back customers who have gone astray. If, for instance, you send Yeaman an e-mail and he notices that Hawaiian Telcom is not your Internet provider, expect to get a call.
“We need to reconnect one customer at a time, and I definitely want to lead by example,” he says.
It might seem old-fashioned to be so high-touch in a high-tech world, but in small-town Hawaii, it could ring true.
“At the end of the day, we feel we have served this community well for 125 years. Our goal is to every day meet the needs of our customers and make sure their experience is one they’re satisfied with and talk about to others in a positive way,” he says.
“Building a corporate culture that drives transformation and change doesn’t happen overnight. We are in a competitive business, but we have a fierce resolve to win. There is nothing magical about what we’re doing. We have a back-to-basics strategic plan, and everything we do must be aligned with it. The plan is based on understanding our customers and delivering products and services that they want and need.”
That resolve extends to residential and business customers.
“We want to grow our customer base in high-speed Internet service. In July, we launched a wireless service. At some point in the future, we hope to offer a video product,” he says of consumer packages.
“For businesses, we launched a Managed Service product last October and routed network service in April. Later this year, we plan to launch a business voice-over Internet protocol that has robust capabilities.”
Its Managed Service is offered and monitored via a state-of-the-art Network Operations Center that runs 24/7 out of the downtown headquarters. On the day we visited, all eyes were on the weather monitor, tracking the path of a tropical storm.
Hawaiian Telcom provides direct communications services to more than 500,000 access lines, nearly 100,000 high-speed Internet customers and 54,000 businesses. It also
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