TMNG Global Conducts Revenue Assurance Assessment for a European Mobile Operator

Challenge

A European mobile operator was experiencing tremendous growth, but lacked systems and processes that could support such growth. A recent brand re-launch had resulted in additional growth and therefore exacerbated the operational problems of the client. Recognizing its problems with revenue leakage, fragmented systems and processes, and reliance on key individuals, the company’s new management team brought in TMNG Global to review its revenue assurance processes.

TMNG Global Solution

TMNG Global’s assessment of the client’s business processes included cash collection procedures, reconciliation of invoices sent, data capture and mediation processes, credit control and external fraud, activation process, security and prepaid systems, and tariff tables and rules for prepaid systems. We utilized our proprietary Quality Business Controls (TMNG QBC^®) methodology to complete the assessment.

We conducted interviews with managers and staff from all functions. Based on these interviews, we were able to present to the client 78 recommendations related to key objectives and contributing factors. These recommendations were prioritized by benefit delivery in cash generation, customer satisfaction, and cost savings.

Our recommendations in the area of cash collection included setting baseline cash and debt targets, creating a standardized “debtors pack,” creating a cross-functional operations schedule, increasing discipline for IVR management, implementing direct debit controls that are tied to the operations schedule, and re-aligning the fraud, collections and accounts receivable functions to maximize efficiency.

The client’s reconciliation of invoices sent could be improved by establishing clear ownership and hand-offs between cross-functional groups. Billing operations would own the transfer and error connections. We also recommended that the establishment of SLAs between organizations for critical business processes, the formalization of processes and procedures for business critical functions, and the standardization and alignment of reporting periods.

Recommendations related to data capture and mediation included the formalization of ownership and accountability of key processes, the establishment of baselines for all production code, and the implementation of a data tracker to monitor E2E reconciliation. As it is integral that the client know its usage, we recommended a review of existing filters to make sure no revenue was being thrown away. We also suggested the development of synergy between existing projects to gain efficiencies.

We offered the client several recommendations related to credit control and external fraud. First, the client should update its process documentation and make it available to all staff via the company’s intranet. Additionally, the client should sort existing returned mail by value, securely disposing of low value items and performing root cause analysis on high value and new returns. The client should also reinstate outbound calls to high value Small and Medium Enterprises (SMEs), focus on proactive fraud prevention, and establish the underlying level of fraud on the sales ledger and make adequate provisions in year-end accounts.

In the areas of speed and quality, TMNG Global recommended that responsibility for data quality should rest with a single group. In addition, detailed work instructions should be created for all activities that tie to business processes, internal customer/supplier workshops should be introduced to set measures and targets, and the activation of profitable customers should be ensured through proactive monitoring. Additionally, the client should implement metrics and measures that focus on reducing data errors, such as the percent value of debt in query related to account set up or rejected payments due to incorrect band details.

Our recommendations related to the security of pre-paid systems included assigning functional ownership of pre-paid system security to a single group while maintaining cross-functional involvement, evaluating user privilege levels to determine proper access rights based on job functions, and establishing a baseline audit of all pre-paid system user accounts. Additional recommendations included the development of a formal security administration process for all user additions, changes and deletions as well as the formalization of a process for manual top up validation and confirmation.

Related to tariff tables and rules for pre-paid systems, we recommended that the client determine proper ownership of the pre-paid system in order to facilitate consistency of the application and maintenance. The client should also enforce a standard change management process for all system tariff changes, perform a baseline audit of the pre-paid system tariff tables to ensure that all rates are being correctly applied based on business requirements, and implement rate sampling.

Finally, we provided recommendations related to contributing factors. These recommendations addressed measurement techniques and quality controls, organization and process ownership, business process management, project management, and internal communications.

Upon completion of its assessment, we provided the client with a series of documents for consideration and assistance in the decision-making process for next steps. We presented an executive summary, full assessment report, estimated benefit document, recommendations document, timeline plan, comparison to best practice metrics, and a presentation for senior management.

Benefits to the Client