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.
PTEXXXXX XX/14
ON THE OUTSIDE, LOOKING IN
ICTF
Lisbon May 2015
David Scott FCICM (Grad), CGCE
Verizon Enterprise Solutions
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
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. 3
• 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
• 2014 revenues of $127.1 billion
• #16 on the Fortune 500 (2014)
• Approximately 176,320 employees
(Q1 2015)
ABOUT VERIZON
Using technology to address big challenges
Verizon Innovation Center in San Francisco, CA
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
Verizon Global Network
LEGENDVerizon Private IP Available
Verizon Submarine Cable Investments
Major Submarine Cable Systems
Future Submarine Cable Systems
Terrestrial Network
Data Center
Cloud Data Center
Capital City
Connecting City
Satellite
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
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. 6
Our Finance Priorities
Integrate, Streamline
and Consolidate Processes
and Systems
Deliver Value to Our
Business Partners and
ProvideMeaningful Information
Drive Organization
Alignment and
Optimize Resources
Maintain Strong
Controls and
Fiduciary Oversight
Develop Finance Talent
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosureor distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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. 7
Global system consolidation and alignment
SAP – nSAP, CM, BD
<5 Billing systems (1 strategic billing platform)
SAP – dSAP & iSAP
40+ billing systemsSystems
Retained team = consultative / specialist
Outsourced team = structured training
VZ Learn / Induction / Development plans / Mentoring / ICM Learning partnership
No formal training / development plans / induction
People & Development
Simplified Processes
Increased Automation
Detailed & controlled documentation
Core processes created, established & robust. Documentation comprehensive, same format, up to date & available to business
Ill-defined
Documentation missing / differing formats
Process & Documentation
Extended scope = International Bill to Cash
Outsourced Operations
Specialist retained team
Centralised
C&C in-house
Selected outsourcing
Support teams
Aligned with sales org
De-centralized,
MM outsource
Customer management not aligned to business strategy
Teams do all activities
Operation & Structure
CurrentRecent PastDistant PastArea/Time span
Chartered Institute of Credit Management (CICM) : Corporate Member
Learning Partnership (2009); QiCM (2010); ICM’11 Best Practice
International Credit & Trade Finance (ICTF) : Corporate Member
Our Team’s Evolution
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The key cornerstones to the
Transformation……
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• 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
The Outsourcing Approach
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• Who is impacted by the change ?
• What is their perspective?
• How to address their concerns ?
• Active engagement positive endorsement
Stakeholder Engagement
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Effective Change Equation
Sound business solutions / strategies do not guarantee success.
Stakeholders committing to the solution is required for success.
S x C = R
S = Solution (Qualitative / Technical)
C = Stakeholder Commitment
R = Realized Business Results
S x C = R
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Knowledge Transfer
Donald Rumsfeld,
USA Secretary of Defense, 2002
• 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 ?
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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%
Process DocumentationQwizdom
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• Pre-Outsource KPIs
– Limited number of specified annual targets
– Monitor Performance year-to-date
– Monthly dashboard with commentary
• Outsource Contract
– Multitude of activities to monitor & control
– Strategic / Technical / Operational
– Contractual penalties
– Historic benchmarking
– Robust statistics : “one version of the truth”
– Under-performance Root Cause Analysis
Performance Management
Analysis
Paralysis ?
What you
measure is what
you get….
…or…
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Performance Monitoring
Above Target Between Target And Minimum Below Minimum EMEA - IBM Hard Go Live APAC - IBM Hard Go Live All
Sample KPI dashboard :
Measures:
• Contractual (CPI)
• Key (KPI)
• General (GPI)
Benchmarks:
• Historical Actuals
• Minimum threshold
• Target SLA
Sample KPIs Format Min Target
BRA-01 Bill Run Generation Time cDays X Y n n n n n n n n n
n n n
BRA-03 Time to activate Bill ing 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 Bill ing Inquiry Non Contained (P2) < 15 cDays n n n n n n n n n
IR-02 Bill ing 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 n n n 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
XF-03 Suspension Processing Time 1 bDays n n n n n n n n n
MONTH 5 MONTH 6 MONTH 9MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 7 MONTH 8
BRA-02 Corrective Credits Adjustment Values (Quarterly) %
IR-04 Customer Satisfaction Survey – Transactional (Quarterly) Score
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Identify under-performance…
Target SL: Minimum SL:
Description:
Description: Description:
Description:
Description:
Description:
Action Owner Target Date To Correct Actual Completion Date Approved By & Date
Root Cause Analysis - Choose an item.
Immediate Action Taken To Resolve Issue (Including External Customer Communication If
Applicable):
Follow Up Action(s) Required To Prevent Reoccurrence:
Summary of Issue Description Including Dates & Times:
Work instructions followed? Choose an item. External Customer impacted? Choose an item.
Date Identified: Other – Please Advise:
Achieved SL:
Delivery Centre: RCA Reference:
Reported By: CPI/KPI/GPI & Number:
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Celebrate Success….!
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Outsource structure = Management opportunity
Delegate operational BAU
Costs are transparent
Processes simplified & documented
Robust performance monitoring in place
Focus on improving :
Key Areas of Focus
Strategic
direction
Streamline Processes
Best
Practice
TransformOperations
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Regional / Global
Elements
Consistent
Quality &
Documetation
Shared systems
and automation
Global
customer
consistency
Organisational
structure
Master data
management
Local System Local Tax &
Regulations
Global,
integrated
processes
Local
Statutory
Reporting
Local
Country
Elements
Ensure compliance to policies and
procedures
Robust governance and/or
management control
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
Reduce Costs and Increase Flexibility
Completing the Jigsaw
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? 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
An Opportunity for You ?
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