Organisering av fellestjenester innenfor
økonomi og administrasjon – mulige
gevinster basert på Telenors erfaringer
Andreas Vik, Telenor Key Partner
Agenda
• Brief presentation
of Telenor
• Shared services in
Telenor
• Why shared
services?
• Experiences from
shared services
Telenor facts
•
One of the world’s largest mobile operators with 105
mill. mobile subscriptions*
•
Norway’s leading telecommunications company
•
Largest provider of TV services to the Nordic market
•
Our largest consolidated mobile operations:
– Kyivstar, Ukraine
17.7 mill subscriptions
– DTAC, Thailand
11.2 mill
– GrameenPhone, Bangladesh
9.4 mill
– DiGi, Malaysia
5.6 mill
– Telenor, Pakistan
4.6 mill
– Pannon, Hungary
3.0 mill
– Telenor, Norway
2.7 mill
•
Total workforce: 33,250 man-years (22,500 outside
Norway)
•
Market value as of 26 October 2006: NOK 162 billion
•
* 100% figures - all companies per Q3 2006
Telenor’s mobile world
Norway
Telenor
100%
Denmark
Sonofon
100%
Sweden
Telenor
100%
Hungary
Pannon
100%
Montenegro
Promonte
100%
Serbia
Telenor
Austria
One
Pakistan
Telenor Pakistan 100%
100%
Ukraine
Kyivstar
17.5%
Russia
VimpelCom
56.5%
29.9%
Bangladesh
GrameenPhone
62.0%
Thailand
DTAC
73.1% (*)
Malaysia
DiGi
61.0%
*Economic exposure
Telenor - High level development
1995
2000
DOT COM
Trends:
2004
RESTRUCTURING
•Deregulation
•Competition
•Majority ownership
•Growth
•Cost focus
•International focus
•Decentralization
•Standardization
•Synergies across
global operations
99: Merger with
Telia called off
05: Common values
•”Dot com”
Events:
INDUSTRIALIZATION
95: Telenor brand
launched
00: Telenor public
company
98: Last parts of
monopoly ended
02: Fredrik
Baksaas new CEO
02: Delta 4
02: New HQ
Fornebu
05: More than 50% of
employees outside
Norway
06: Global coordination
part of corporate
management board
06: Common brand
Agenda
• Brief presentation of
Telenor
• Shared services in
Telenor
• Why shared
services?
• Experiences from
shared services
About Telenor Key Partner AS
•
TKP is:
–
Telenor’s shared service center organized as a separate legal entity. TKP was
created in 2001, however significantly expanded during 2002-2004 as a part
of Delta 4
•
Services:
•
Mission statement:
–
–
–
–
•
284
Revenues:
–
•
80 legal entities in Norway, Sweden, Denmark, Finland, Pakistan, and Hungary
Employees:
–
•
Telenor Key Partner is a professional supplier of technology based
administrative services. In professional partnership with customers and the
Telenor group TKP creates efficient work process, delivers high quality
services, and produces cost efficient services.
Customers:
–
•
Finance
Payroll & HR
Procurement (transactional/non strategic)
270 MNOK (2006), SLA’s and transaction based price model
Offices:
–
Oslo, Bodø, Kristiansand, Aalborg og Islamabad
Finance Telenor in Norway 2001
Quantitative
• Total operating costs: 394 mill
NOK
–~50 % = personnel cost
–~50 % = IT-system costs,
consultants, other
operating costs
• 461 full-time equivalent are
directly related to the financial
area
• Time spent per work process:
– ~63
% =
accounts/
transactions
handling and
reporting
–~17 % = analysis/
controlling
–~13 % = budget/business
partner
Qualitative
• Different financial systems
(Oracle, Visma, Concorde,
Agresso, FS, Ergosoft)
• 30 financial-databases
(installations)
• 8 different systems for
reporting (ER, Blink, Gentia,
Cognos, Business Objects etc.)
• Several different scanning
systems
• Many reporting layers (4–5)
• Ca. 35 accounting units
• Ca. 40 reporting units
• There is limited integration
between the finance functions
within some of the Business
Area
• Extensive manual processes,
e.g. intercompany and reporting
• Different chart of accounts (6–
7)
Development TKP
Year-by-year
• 2001 – Startup and 22
business areas
• 2002 – Central
organization
• 2003/04 – Restructuring
• 2005 – International
customers
• 2006 – New business
areas
Development FTEs
300
250
200
150
100
50
0
2001
2002
2003
2004
2005
2006
Agenda
• Brief presentation of
Telenor
• Shared services in
Telenor
• Why shared
services?
• Experiences from
shared services
Why Shared Services?
Improve service,
quality, accuracy,
and timeliness
86 %
85 %
Reduce cost
74 %
Standardise services
Group similar tasks
and expertise for a
critical mass
70 %
Reduce headcount
and wages
69 %
56 %
Corportate strategy
0%
20 %
40 %
60 %
80 %
Source: Hackett Group - Forth Annual European Finance SSO Study 2005
100 %
Rationale for establishing SSC in Telenor
Improvements:
VALUE
TIME &
QUALITY
COST
Strategic themes:
Implementing lasting change:
Better
decisions
Quality
improvement
Process
automation
Re-use
Standardisation
Technology
Requirements/
Vision
Information
architecture
Process/
Organisation
Effects implementing SSC finance in Telenor
Reduced OPEX:
134,6 MNOK = 34%
Quality improvements
• Invoices paid on time: 70% in
2002, 96% in 2005
394
• Financial statements reported to
group within deadlines from
70% in 2002 to 100% in 2005
259,4
2001
• 100% reconciliation of P&L and
balance accounts between
payroll and accounting
2004
Reduced FTEs:
111 FTEs = 24%
6
275
214
186
Baseline
Payback time = 2 years!
Out of scope
FTE BU
135
2005
• Auditors signature on
“kontrolloppgaver” for all
companies
FTE SSC
Value-adding finance function
Old focus
Optimize your potential
through SSC
and self service
solutions
Decision
support
Analysis
Business Control
Handling:
• Transactions
• Data
Change of behaviour
New focus
Decision
support
Analysis
Business Control
Redesign
Handling: Transactions
Data
Agenda
• Brief presentation of
Telenor
• Shared services in
Telenor
• Why shared
services?
• Experiences from
shared services
Best Practices for shared service
performance*
0%
10
%
20
%
30
%
40
%
50
%
EDI with banks for invoices, travel and
expenses etc
43 %
Global standard chart of accounts
43 %
42 %
End-to-end process ownership
30 %
Measurement intensive KPI reporting
Extensive training for SSO staff
23 %
Independance of SSO
23 %
13 %
Self-services
11 %
Global standard cost center hierachy
Call center
70
%
66 %
One single integrated ERP platform
Metriality thresholds as balance of risk and
effort
60
%
5%
2%
*Source: Hackett Group - Forth Annual European Finance SSO Study 2005
Pricing strategies
Telenor experience
Fixed
Cost
based
Commercial
structure
and
scenarios
Variable
Fixed
Market
price
Variable
• “One price” policy
assures that no time is
spent discussing prices
with each customer
• Service prices exposes
the cost structure of
the services
• Transaction based
pricing gives good
incentives to reduce
volumes
• Annual benchmarks
assures that prices are
“in line” with market
prices
Governance struktur TKP
Forum
Mandat
Styre TKP
•Øverste myndighet i TKP
•Fastsette priser
•Større investeringsbeslutninger
•Fastsette budsjett
•Økonomisk oppfølging TKP AS
•Godkjenne strategi
Brukerstyre
pr område
•Sikre at SSC Ø leverer faglig forsvarlig leveranser i tråd med SLA,
særlig grensesnittet SSC, GF og kunde.
•Oppfølging av KPI’er
•Oppfølging av benchmark
•Uttalelsesrett ved prisendringer
•Anbefale felles tiltak/investeringer/ prosjekter for å øke nytte/
effektivitet i verdikjedene til SSC.
PF ERP
•Utarbeide systemstrategi innenfor ERP-området
•Godkjenning av større systemendringer (3 PI)
•Control owner GCC
•Eskaleringspunkt ved kritiske feilsituasjoner
Kundeteam
•Service rapportering med avvik på avtalte leveranser og
operasjonelle KPI’er
•Diskutere kundespesifikke behov, evt beslutte kundespesifikke
endringer
•Oppfølging operative saker
Høynivå ansvarsfordeling SSC/CFO
Teknisk
regnskap
•Regnskapsprosessering:
−Inn- og, utgående
faktura
−Inn- og utbetalinger
−Bilagsregistreing/
transaksjonshåndtering
−Delt ansvar
avstemminger
−Teknisk rapportering
Reviderbart regnskap
•Letter of Comfort til selskapene
•Kontroll av dokumentasjon:
−ADI-bilag
−ADI-bilags linjer (stikkprøve)
−Skattesensitive konti
•Kontroll av moms
•Felles lagring av dokumentasjon
•Proaktiv rapportering til kunden
ved avvik
•Avstemmingsansvar alle
balansekonti
•Letter of Representation to
group
•Kontroll av fullstendighet
•Vurderingsposter (non-routine
transactions)
•Rimelighetsvurderinger
•Subsequent events
•Contingent liabilities
Fullstendig rapporterte regnskap
SLA’ene er kritisk for å
definere ansvarfordelingen
mellom SSC og kunde
HR SSC – Delivery model
Delivery model that is adaptable to local requirements.
HR SSC deliverables
Services description
• Global Process management
Transactional
Services
System delivery
• Process support
Support / helpdesk
HR Process
management
• Process and roll out concept change
control
• Services delivered to HR Norway (as
is). Will be handled by Local HR in
Pannon
–Personnel administration
–Learning, Recruitment, Time, Travel
expences etc
• System availability and 2’line system
support
• Data maintenance
Single Point of contact / 2. Line helpdesk
Pit falls in implementing SSC
Poor service quality
79 %
IT problems
56 %
Little employee support
Business activities are
interrupted during
implementation
High implementation cost
Complexity increase for planning
and reporting form service
charging and pricing
41 %
28 %
26 %
19 %
0 % 20 % 40 % 60 % 80 % 100
%
Source: Hackett Group - Forth Annual European Finance SSO Study 2005
Telenor experience
• Implementing SSC is a
though process
involving people.
Headcount reduction
must be made in order
to reap the cost
advantages.
• Growth is important to
make up for effects of
continuous
improvements
• One size does NOT
always fit all
• Customers might retain
some additional
capacity until SSC has
proven successful
thank you