ON THE OUTSIDE, LOOKING IN
David Scott FCICM (Grad), CGCE
Verizon Enterprise Solutions
ICTF
Lisbon May 2015
PTEXXXXX XX/14
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
An overview of the Verizon International Bill to Cash
team’s transformation to an out-sourced operation.
 Insights into the rationale & planning for the move
 The cornerstones of the transformation
 The key areas of focus
 How this translates to potential opportunities for you
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
2
ABOUT VERIZON
Using technology to address big challenges
• The best, most reliable networks in the
industry
– The largest U.S. wireless company with
the largest 4G LTE network
– The largest and fastest all-fiber network
in the U.S.
– One of the largest, most reliable and
secure global networks
Verizon Innovation Center in San Francisco, CA
• 2014 revenues of $127.1 billion
• #16 on the Fortune 500 (2014)
• Approximately 176,320 employees
(Q1 2015)
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
3
Verizon Global Network
LEGEND
Verizon Private IP Available
Verizon Submarine Cable
Investments
Major Submarine
Cable Systems
Future Submarine
Cable Systems
Data Center
Connecting City
Cloud Data Center
Satellite
Capital City
Terrestrial Network
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
4
What was the Rationale for the
Outsource Transformation ?
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
5
Our Finance Priorities
Develop
Finance
Talent
Integrate,
Streamline
and
Consolidate
Processes
and
Systems
Deliver
Value to Our
Business
Partners and
Provide
Meaningful
Information
Drive
Organization
Alignment
and
Optimize
Resources
Maintain
Strong
Controls
and
Fiduciary
Oversight
Confidential
and
proprietary
materials
for for
authorized
Verizon
personnel
andand
outside
agencies
only.only.
Use,Use,
disclosure
or distribution
of thisofmaterial
is notispermitted
to anytounauthorized
persons
or thirdorparties
exceptexcept
by written
agreement.
Confidential
and
proprietary
materials
authorized
Verizon
personnel
outside
agencies
disclosure,
or distribution
this material
not permitted
any unauthorized
persons
third parties
by written
agreement.
6
Our Team’s Evolution
Area/Time span
Distant Past
Operation &
Structure
De-centralized,
MM outsource
Customer management not
aligned to business strategy
Teams do all activities
Centralised
C&C in-house
Selected outsourcing
Support teams
Aligned with sales org
Extended scope =
International Bill to Cash
Ill-defined
Documentation missing /
differing formats
Core processes created,
established & robust.
Documentation
comprehensive, same
format, up to date &
available to business
Simplified Processes
Increased Automation
Detailed & controlled
documentation
People &
Development
No formal training /
development plans /
induction
VZ Learn / Induction /
Development plans /
Mentoring / ICM Learning
partnership
Retained team =
consultative / specialist
Outsourced team =
structured training
Systems
SAP – dSAP & iSAP
40+ billing systems
SAP – nSAP, CM, BD
<5 Billing systems (1
strategic billing platform)
Global system
consolidation and
alignment
Process &
Documentation
Recent Past
Current
Outsourced Operations
Specialist retained team
Chartered Institute of Credit Management (CICM) : Corporate Member
Learning Partnership (2009); QiCM (2010); ICM’11 Best Practice
International Credit & Trade Finance (ICTF) : Corporate Member
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7
The key cornerstones to the
Transformation……
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
8
The Outsourcing Approach
• Transition plan
– Extensive timeline to document & train
– Phased introduction
• “Lift and Shift” principle
– Mirror the current processes
– Use current employees to train incoming staff
– Map & document processes
– Test understanding
• Benefits:
– Existing processes
– Defined roles & responsibilities
– Benchmark performance versus recent history
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
9
Stakeholder Engagement
• Who is impacted by the change ?
• What is their perspective?
• How to address their concerns ?
• Active engagement  positive endorsement
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
10
Effective Change Equation
SSxx C ==RR
S = Solution (Qualitative / Technical)
C = Stakeholder Commitment
R = Realized Business Results
Sound business solutions / strategies do not guarantee success.
Stakeholders committing to the solution is required for success.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
11
Knowledge Transfer
• How many of your
processes are not
documented?
• Do you know all the tasks
your staff undertake?
• How much do you rely on
staff experience & initiative
to resolve issues ?
Donald Rumsfeld,
USA Secretary of Defense, 2002
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
12
Process Documentation
Qwizdom
Please estimate what %age of the processes are
detailed to operator level
for your area of responsibility ?
A. Less than 10%
B. 10 - 25%
C. 25 - 50 %
D. 50 - 75%
E. > 75%
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
13
Performance Management
• Pre-Outsource KPIs
– Limited number of specified annual targets
– Monitor Performance year-to-date
Analysis
Paralysis ?
– Monthly dashboard with commentary
• Outsource Contract
…or…
– Multitude of activities to monitor & control
– Strategic / Technical / Operational
– Contractual penalties
– Historic benchmarking
What you
measure is what
you get….
– Robust statistics : “one version of the truth”
– Under-performance  Root Cause Analysis
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Performance Monitoring
Sample KPI dashboard :
Above Target Between Target And M inimum
Sample KPIs
BRA-01 Bill Run Generation Time
BRA-02 Corrective Credits Adjustment Values (Quarterly)
Below M inimum
EM EA - IBM Hard Go Live
Format Min Target MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9
cDays
X
Y
n
n
n
n
n
n
%
n
n
n
n
n
n
BRA-03 Time to activate Billing
bDays
n
n
n
n
n
n
n
n
n
BRA-04 Order Process Time
10 cDays
n
n
n
n
n
n
n
n
n
IR-01 Billing Inquiry Non Contained (P2)
< 15 cDays
n
n
n
n
n
n
n
n
n
IR-02 Billing Inquiry Contained (P1)
< 5 cDays
n
n
n
n
n
n
n
n
n
IR-03 Customer Services Response Time
1 bDays
n
n
n
n
n
Score
n
n
n
IR-04 Customer Satisfaction Survey – Transactional (Quarterly)
n
n
n
n
AR-01 Daily Cash Application
1 bDays
n
n
n
n
n
n
n
n
n
AR-02 Refund Processing Time
< 5 bDays
n
n
n
n
n
n
n
n
n
AR-03 Unapplied Cash Clearing
30 cDays
n
n
n
n
n
n
n
n
n
XF-01 Credit Check Processing Time
1 bDays
n
n
n
n
n
n
n
n
n
XF-02 Aged Debt Greater Than 60 Days
%
n
n
n
n
n
n
n
n
n
1 bDays
n
n
n
n
n
n
n
n
n
XF-03 Suspension Processing Time
APAC - IBM Hard Go Live All
Measures:
• Contractual (CPI)
• Key (KPI)
• General (GPI)
Benchmarks:
• Historical Actuals
• Minimum threshold
• Target SLA
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Identify under-performance…
Delivery Centre:
RCA Reference:
Reported By:
CPI/KPI/GPI & Number:
Date Identified:
Other – Please Advise:
Target SL:
Minimum SL:
Summary of Issue Description Including Dates & Times:
Description:
Achieved SL:
Work instructions followed? Choose an item.
External Customer impacted? Choose an item.
Description:
Description:
Root Cause Analysis - Choose an item.
Description:
Immediate Action Taken To Resolve Issue (Including External Customer Communication If
Applicable):
Description:
Follow Up Action(s) Required To Prevent Reoccurrence:
Description:
Action Owner
Target Date To Correct
Actual Completion Date
Approved By & Date
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Celebrate Success….!
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17
Key Areas of Focus
Outsource structure = Management opportunity
 Delegate operational BAU
 Costs are transparent
 Processes simplified & documented
 Robust performance monitoring in place
 Focus on improving :
Best
Practice
Streamline
Processes
Strategic
direction
Transform
Operations
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Completing the Jigsaw
 Ensure compliance to policies and
procedures
Regional / Global
Elements
 Robust governance and/or
management control
Local
Country
Elements
 Consolidated views of reliable data
and information ‘Single version of the
truth’
 Standardisation (and optimisation) of
processes to improve service levels
 Retaining the flexibility to meet local
requirements and serve our customers
at the local level
Leading to:
 Leverage scale and efficiencies
through consolidation
Consistent
Local System Local Tax &
Quality &
Regulations
Documetation
Shared systems
and automation
Global
customer
consistency
Master data
management
Organisational
structure
Local
Statutory
Reporting
Global,
integrated
processes
 Reduce Costs and Increase Flexibility
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An Opportunity for You ?
? Building the stakeholder relationship
? Capturing all your team’s knowledge
? Validating the scope & consistency of your KPI measures
? Actively reviewing when things don’t go to plan
? Fine-tuning your processes
? Looking to the future
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
20
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure, or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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