WorldCom announces key initiatives, new plan for 2003

WorldCom Inc. Chairman and CEO Michael Capellas outlined Jan. 14 an extensive plan to re-focus the company's efforts for the next 100 days, leading to the filing of its plan of reorganization this spring.

WorldCom, which owns the United States' No. 2 long-distance carrier MCI, filed for Chapter 11 bankruptcy protection on July 21 after the company reported billions of dollars in bogus accounting.

In a presentation to WorldCom's 60,000 employees, Capellas outlined the company's key initiatives, including plans to launch new consumer and business products and services, to aggressively address the small- to medium-sized business market, and additional corporate integrity initiatives.

Capellas also announced a new corporate leadership structure.

"Our management team has the experience, vision and knowledge to lead the company forward," said Capellas.

"Today we have a fresh start; we have a plan and we have our priorities straight customers first, customers second, customers third," he added.

"The assets are in place; our customers are supportive. We have a lot of hard work to do. Today we are injecting clear focus and an outrageous sense of urgency into the mix which will drive us to achieve great things in a short amount of time."

Throughout the next 100 days, Capellas said, the company will launch new products appealing to both businesses and consumers.

He said there will be a strong focus on The WorldCom Connection, which is based on the convergence of the company's voice and data networks delivering more products to businesses for better value.

For consumers

On the consumer side, Capellas announced a series of initiatives to address the local and long-distance markets, including the expansion of the company's integrated offering, The Neighborhood, built by MCI, as well as new standalone long-distance products.

Capellas said he expects the division to generate 1 million new Neighborhood sales and 2.5 million new consumer long-distance sales during the 100-day period.

"With a targeted action plan and disciplined execution, we have the opportunity to attack the marketplace like never before," Capellas said. "We are going to equip our sales forces with the tools they need, and the products our customers want, to be successful."

Integrity and trust

Capellas also emphasized the company's commitment to corporate integrity and rebuilding trust in the marketplace, with employees and with the public. He pointed to the company's new board of directors, the recent creation of a Corporate Ethics Office, an enhanced Code of Ethics, and new employee financial reporting and ethics training initiatives as examples.

"When I took this job I committed myself to the highest ethical standards," he said. "Each member of our executive management team has made the same pledge, and we will work to institute these standards throughout the company. Everyone should know that our company will do the right thing because it's the right thing to do."

WorldCom Inc. is a global communications provider operating in more than 65 countries.