Presentation Transcript

1. Corporate Case:TeliaSonera – Striving for World Class Customer Experience

   Aalto University School of Economics April 16th, 2013 Kurt Engelvuori Vice President, TeliaSonera
2. 1917 The Finnish Telegraph Office 1927 Post and Telegraph Office 1981 Posts and Telecommunications 1855 Telegraph Office of the Russian Empire 1990 P&Tbecomes an unincorporated state-owned enterprise 1998 Sonera Corporation 1994 Telecom Finland Ltd 2002 TeliaSonera Oyj Telecommunications in Finland since 1855 2011 TeliaSonera
3. Sonera/TeliaSonera Finland Oyj/TeliaSonera CEOs 2000 - 2013 1998 – 31.12.2000 Aulis SalinSonera Oyj 01.01.2001 - 01.8.2001 Kaj-Erik RelanderSonera Oyj 01.08.2001 - 30.9.2001 Act. AimoEloholmaSonera Oyj 01.10.2001 – 31.12.2002 HarriKoponenSonera Oyj 01.01.2003 – 14.05.2003 Act. AimoEloholma TeliaSonera Finland Oyj 14.05.2003 – 26.04.2005 AnniVepsäläinen TeliaSonera Finland Oyj 26.04.2005 – 10.10.2005 EsaKorvenmaa --”-- 11.10.2005 – 31.12.2006 JuhoLipsanen --”-- 01.01.2007 – 24.09.2009 EsaRautalinko --”-- 24.09.2009 – 31.1.2012Juha-PekkaWeckstöm --”— 14.5.2012- Robert Andersson --”— TeliaSonera Group CEOs after 2003 merger (Teliabought Sonera): 01.01.2003 – 31.07.2007 Anders Igel 01.08.2007 – 02.09.2007 Act. Kim Ignatius 03.09.2007 – 01.02.2013 Lars Nyberg 02.02.2013 - Act. Per-Arne Blomquist
4. 4. World-class customer service 5. Cost efficiency 6. Quality in networks Lars Nyberg, CEO of TeliaSonera “When I joined the company, we identified five priorities which are important in the short and medium term. Now I have added a sixth priority: Quality in networks. This area is fundamental for our success.” “To a great extent we are talking about attitudes and priorities. It is all about customers. All our discussions must start from customer needs and our value proposition in relation to our competitors.” TeliaSonera’s six priorities 1. Migration from trad. fixed-voice services to value-added services 2. B2B – establish a high-powered business sales organization 3. Growth in Eurasia World-class customer experience Cost of Poor Quality Quality in networks TS Six Sigma measurements
5. Assignment given in November in a nutshellMessage to TS Leadership Team To: Ignatius, Kim A.; Ahrnell, Jan Henrik A.; Moberg, Karin E.; Nyberg, Rune X.; Bruse, Anders A.; Karlberg, Kenneth B.; Lipsanen, Juho /TeliaSonera Finland Oyj; 'TeroKivisaari' TELIASONERA MEASUREMENT SYSTEM - METRICS MANAGEMENT In addition to the financial Key Performance Indicators, we do have a need for an operational measurement system that helps us work and deliver against set business objectives. The operational measures should cover areas like product release quality, efficiency of our sales channels, customer service quality, network efficiency, how quickly we migrate into new products, efficiency and qualitative measures on support functions etc. In the group we have a Six Sigma performance measurement team led by Kurt Engelvuori. I have decided to use this resource to develop, together with you and your organizations, the needed system. I have asked Kurt to come back to me before Christmas with a first suggestion covering 3 - 4 of the mentioned operational areas. It is therefore important that you give Kurt access to your key people and raw data. The objective is to create a set of 15 - 25 operational drivers that are of great importance in taking TeliaSonera forward.The drivers need to be clearly defined, they need to be measurable and we need to be able to set and follow targets on them. Regards, Lars
6. TeliaSonera Organization Internal /Relation/Identifier 0.1 Draft
7. Group Metrics ManagementPurpose Measurement System. Enable performance and consequence management by delivering a fact-based operational measurement system for customer experience in TS fully owned companies. Improvement Practice. Gain acceptance for Six Sigma methodology through management awareness and successful performance improvements.
8. Group Metrics ManagementVision Visualize every day, up-to-date, real customer experienceto everyone and anchor a group-wide systematic improvement practice
9. 2008 – 2013 Phases & Focuses Financial impact & Measurements in use Target setting & Execution & Ownership Report facts & Support Six Sigma projects Build measurement & Six Sigma competence Internal /Relation/Identifier 0.1 Draft
10. Six Sigmain TeliaSonera
11. We need to learn away from our traditional root-cause analysis…
12. We are applying Six Sigma in three areas 1. Performance measurement 2. Fact-based management 3. Improvement methodology Some telecommunications companies doing Six Sigma: USA: Verizon (2001), Sprint (2002) UK: BT(2001), Vodafone (2003) Canada: Rogers (2002), Telus (2003), Nortel (2006) Australia: Telstra (2002) South Korea: SK Telecom (2004)
13. Systematic, highly disciplined Customer-centred and profit-driven Organization-wide Strategic business improvement initiative Based on a rigorous process-focused and measurement-driven methodology. Six Sigma Source: Six Sigma advanced tools for Black and Master Black Belts, 2006 Wiley; Loon Ching Tang, Thong Ngee God, Hong See Yam, Timothy Yoap.
14. Six Sigma is suitable for measuring processes with high volumes. In many of our processes we havevery high transaction volumes, for example: Monthly invoices Delivery of ADSL connections Inbound calls to customer service Mobile calls Mobile data connections Six Sigma measurement tells the number of defects in million opportunities DPMO (Defects per million opportunities) 1 000 000 Six Sigma Quality = 3 defects per million opportunities 100 000 10 000 1000 100 1 1 Sigma level 2 3 4 5 6 DPMO Error rate %
15. Measuring and reporting performance with averages… Daily averages of answering times In average we answered between 3-9 minutes during this week
16. 1 hour 10 minutes C Average: 4 minutes 5 seconds A B …and measuring & reporting the facts in the Six Sigma way Kill the averages before the averages kill us!
17. Define Measure Analyze Improve Control Understand the problem to solve the root cause Understand the problem Remove the root causeand hold the gain Definewhat business problem we want to solve Measure & analyzecurrent performance levels for fact-based decision making on actions to remove root causes Implementimprovement actions in the line organisation across the relevant functions Establishcontrol mechanisms to hold the achieved gain
18. Actions to fix the problem Action 1 Actions Action 2 Action 3 Action 4 Improvement in a traditional wayActions taken based on average data Call answering performance Measurements
19. Call answering performance Reasons for calls Analysis 2 1 Invoice Delivery Use Campaign Price Info 4 3 Actions to solve the root causes Root causes IT Management Action 1 Actions Diagnosis Action 2 Invoice Action 3 Action 4 Process Competence Six Sigma way to solve the root causeExample: Call answering performance Measurements
20. Y Dependent Output Effect Symptom Monitor X1 . . . XN Independent Input Process Cause Problem Control The Focus of Six Sigma f (X) Y=
21. Define Measure Analyze Improve Control f (X) Y= Critical questions for DMAIC phases: What is our business problem? What does the customer expect? How are we performing today? What is causing the variation, GAP? What needs to be changed? Who will do it? How can we control the new practice? Converts Key X’s into critical X’s Investigates Y Characterizes Y Identifies X’s Optimizes the critical X’s Manages X Monitors Y
22. What is different in the Six Sigma approach FROM TO Resource the problem ‘Evergreen’ improvement activity list Actions mode Unclear ownership of improvements Part-time resources Best effort Decide actions based on gut feeling Solve the problem Focus & prioritise & solve Projects mode Ownership and accountability Dedicated competent resources Targeted & Systematic way (DMAIC) Use data to find out the root causethen define the actions
23. “In God we trust – all others must bring data.” ~ W. Edwards Deming

24. Thank You