by Kevin Donoghue, President, Telesoft
TEM programs can produce significant savings without the pain of layoffs or program cuts. Here are ways to simplify it and deliver the expected savings on time.
Companies can attempt to run TEM programs using post-it notes or spreadsheets, but these are not efficient and not likely to be effective. All of the functions related to telecom must be managed. This includes assets, invoices, auditing, optimization, reporting and mobility.
Effective TEM software can automate these functions through integration and consolidation of information into a single system. This allows different groups to share information and enter it once, thereby streamlining business processes. Better programs are able to use automation to centralize the inventory, reconcile asset MACD order activity with billing, and reduce the time to procure carrier services.
A good system will help promote better collaboration by allowing everyone to access data, providing common reports and notifications for those that use it. Managers need to have the ability to verify bills as they are received. This is critical because errors usually favor carriers and refunds can only be recovered if they are pursued within the federal or state-specific Statute of Limitations.
Staff TEM properly with internal resources or outsourcing. Knowledgeable people are needed to follow through on issues raised and perform further analysis. They must know how to escalate billing claims and negotiate with carriers. In addition, they must know how to navigate issues and the various internal groups involved.
Most organizations underestimate the work to manage a TEM program. Low estimates for expenditures can lead to inadequate staffing levels. Management often minimizes the scope of work involved by thinking of it as processing invoices, which requires less effort and staff. If no attempt is made to reconcile the inventory of assets with service order activity, or the audit merely consists of a comparison of the amount billed with the prior month’s bills, the program will produce lower savings.
A great deal of effort goes into cost justification and the business case for new programs, but often there is a failure to track the actual results and savings. It is important to continue building support and momentum for TEM programs during these tough times. It is better to under-promise and over-deliver than to have to defend underperformance later.
Senior management often thinks it is possible to reassign TEM to accounts payable departments. The best way to change this approach is to create a profit and loss statement for the program. It should track individual employee contributions for programs staffed internally, cost-savings from refunds, cost avoidance, operational savings, and benefits from improved business information.
This is not a good time to back away from investments in TEM. In order to compete for limited funds a strong, well thought-out business case is imperative. Most programs have good cost justifications. After implementation, it is critical to avoid mistakes. Managers must continue to sell the program internally with a scorecard to track and report results.
Contact the author at email hidden; JavaScript is required.
