Japan Telecom Co., in the nation's third-largest telecommunications company, has asked 20 of its younger managers to draw up a reform plan that will include the adoption of a personnel system based more on performance than seniority, the new president of the company said Tuesday.

"We must promote the best talent, based on skills and potential," said William Morrow, who was appointed president Dec. 21 after British cellular operator Vodafone Group PLC acquired a controlling stake in Japan Telecom in October.

The managers are between 30 and 40, and cross-functional teams will be formed under them to begin implementing specific initiatives at the end of this month, he said.

Morrow, who was formerly country manager of Vodafone-Japan, also pledged to focus the company more on its core business segments and make it more market-driven rather than engineering-driven when developing services. But he declined to disclose details of the reform plan, which is named Project V.