Vodafone UK CONFIDENTIAL

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PROCESS IMPROVEMENT AT VODAFONE UK The
Incredible Journey
Were Improving - Are you ?
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SHOWING YOUR AGE

• UOK
• MTE
• ROFL
• W8
• Ym
• Pls
• YG2BK
• Walor
• PAW

• You OK
• My thoughts exactly
• Rolling on the Floor Laughing
• Wait
• You mean
• Please
• Youve got to be kidding
• What a load of rubbish
• Parents are watching!!!

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NRN
CONTENTS Context The Vision when we
started The Vision 18 months later
No Reply Necessary
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VODAFONE UK - SOME FACTS
Launched in1985
Growth It took 8 years to connect first 1m
customers Took next 7 years to connect next
9m Launched PAYT Nov 2000, 8 weeks later had 2
million customers, 8 weeks later had opened a
new call centre with 150 fully trained staff in
new call centre in Birmingham
Customers gt 13m people in UK have a mobile phone
market saturated - move to customer
retention Products and services Selling handsets
? Selling propositions
Org Design Vodafone UK formed 3 years ago from 7
Operating Cos Vodafone no operates in 23
countries
Operating Costs 3G licence cost 6bn in UK- need
to recoup
Employee Satisfaction Satisfied employees ?
Satisfied customers
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THE GAP - AS AT SEPTEMBER 2001
Current state
End state vision
Processes include NVA steps, rework and are
designed to meet Vodafone requirements
Processes focussed on meeting customers needs
efficiently
Gap closure
Poor cross functional co-operation on e2e
processes
E2e Virtual Process Teams established
No-one accountable for process performance
Process owners for core business processes, role
and link to function clear
Identify UK core business processes
No balanced process measures in place
E2e project opportunities
Process performance KPIs gives early indication
of action/improvement required
Functional project opportunities
Corporate systems development with limited
process involvement
Corporate systems designed around process
improvements/efficiencies
CPI governance framework
Mixed roles/expertise/ approach to process
improvement and redesign
Small team of process experts deploy standard
methodology/tools while coaching business
Enabling framework (reporting, culture, tools,
training)
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VISION

• To consistently manage and improve our key
  processes to satisfy and exceed our customers
  needs, and meet company profit target such that
  Vodafone becomes the benchmark for the industry
  in the UK
• This will be achieved by

A
Establishing and managing core business processes
to support the Strategic vision
B
Building Process Management and Process
Improvement expertise in the business
C
Introducing a sustainable culture of Process
Improvement across the business
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BUSINESS MODEL
Plan and Manage Business Performance
Operating the Business
Localise and Manage
Our Offering
Brand
Maximise Customer Lifetime Value
Our Customers
Provide
Non Network
Service
Working outside Vodafone
Enabling Processes
Manage Physical Assets
Manage Vodafones Finances
Develop New Capability
Manage Procure to Pay
Manage our people
Manage Information
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CPI TOOLS AND TECHNIQUES
Software MiniTab for
Data/Process Analysis
Methodology
Software - IgrafX for Process Simulations
Supported through 1/3 day training offerings

• Documentation
• Project Progress - Storyboard
• Process - High level, low level

• Reference Material
• For Process Improvement Community
• CI Toolkit
• Memory Jogger
• For everyone
• Pocket Guide
• Posters
• Books in the Learning Zone
• Process Improvement Website

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WDYMBT
What do you mean by that?
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CONTINUOUS IMPROVEMENT TOOLKIT
Process Design/ Reengineering
1.0 Identify problem
2.0 Authority to
Agree on and obtain
Does process
Start
No
process and prioritise
proceed
resources
already exist?
Business activities Process activities
Yes
Process Owner
Process Improvement
Yes
and KPI's in place
No
Disparate groups
Process Harmonisation
Yes
doing same process
No
Facilitation Tools and techniques
Templates
Analysis Tools
Supporting activities
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PROCESS IMPROVEMENT COMMUNITY
A3
PI Steering/Operating Groups
PI Steering/Operating Groups
Anytime, anywhere anyplace
Process Owners
Process Improvement Team
Improvement Team
Process Owners
Improvement Team
Improvement Team
Improvement Team
Champion
Process Improvement Manager
Black Belt (Team Leader)
Senior Process Improvement Manager
Black Belt (Team Leader)
Black Belt (Team Leader)
Black Belt (Team Leader)
Members
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Storyboard Links Fault Handling Process
MEASURE / ANALYSE
DEFINE
Business Case
A Tremendous Opportunity For Improvement

• Delays in reporting links faults and poor
  communication were resulting in unacceptable
  outage times for inter-element links
• 50 of faults reported to third party suppliers
  were not link faults, resulting in increased
  fault repair times for Vodafone equipment

• Measures revealed an average cycle time of 152
  hours
• Significant differences observed within the
  Southern region compared with the other two

Root Causes
Problems

• Lack of Ownership and Accountability as fault
  passed between functions
• Incorrect Fault Diagnosis
• Inconsistent Fault Prioritisation
• Poor Communication Between Teams

• Faults incorrectly sent to suppliers as link
  faults took 4 times as long to fix
• Using a central team was adding unnecessary steps
  to the process
• Links that were delivered dead took months to
  fix since they fell outside of the existing
  process

Goals

• Establish a standardised process with clearly
  defined owners
• Implement improvements to ensure that faults are
  consistently diagnosed and prioritised

IMPROVE
CONTROL

• Standardised, Interactive process maps and
  documentation and published on intranet
• Real time web based performance statistics
  introduced
• Service Area Managers made accountable for
  process performance

• Process Decentralised - 11 heads removed from
  CNMC
• Standardised and documented the processes,
  piloted in Warrington RMC
• All event managers trained in new process
• Quick reference guides produced
• Eco repair system introduced - allowing web based
  reporting and visibility of BT link faults
• 152 hour mean reduced to 61 hours (and still
  falling!)
• Incorrect diagnosis reduced by 70 -1000 less
  link faults being raised each month
• c.500k direct cost savings and c.750k indirect
  savings and incremental revenues delivered from a
  3 month project

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CUL8R
See you later
But this was only the start of our journey
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THE ROLE OF QUALITY IN THE NEW WORLD
To make a demonstrable contribution to
profitability by enabling our (Vodafone) people
to put clear blue water between Vodafone and
the competition by the continuous development of
innovative, excellent, customer focused processes
Through...
Strategic Improvement
Continuous Improvement

• The Senior Management
• team recognise the importance
• of process
• They
• are customer driven
• pursue excellence and innovation
• oversee governance of improvement
• assign clear responsibility for processes
• manage process performance with end to end
  measures in place
• manage improvement investment strategically
• oversee effective change

• All Vodafone employees strive for improvement.
  
• They
• see their contribution to improving the customer
  experience
• are motivated to improve their own jobs those
  of others
• have the skills to identify waste and remove
  variability
• work across functional boundaries
• are recognised for genuine improvement proud of
  their achievements

Focused Improvement

• Selected staff are trained to lead focused
  improvement activities. They
• operate a robust improvement process
• have leading edge capabilities
• are customer and business driven
• work on a prioritised agenda
• deliver outstanding and demonstrable achievements
  
• see their achievements as key to career
  development

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OUR VISION FOR QUALITY IS ..

• Build systematic improvement into everyone's role
• Focused on transforming the customer experience
• Built into all we do - culture change
• Systematic application of simple quality tools

• Create capability for systematic process
  improvement
• Structured and coherent approach
• Based on best practice of six sigma, lean and
  change management
• Business focused solutions

• Develop environment for customer driven process
  management
• Identify/measure key activities to deliver
  objectives
• Link to
• Organisational design
• Strategic Quality Planning
• Benefits capture

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LEARNING AND DEVELOPMENT STRATEGY
WIIFM
In depth application
Process Experts
Directors/Execs
Managers - all levels
Process Management
OD and Change Experts
Specialists
Staff
Awareness
In depth application
Awareness
Process Improvement Tools and Techniques
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KPIs - INPUT AND ACTIVITY MEASURES
Process Experts in role/trained
Core Process Health check age
Savings identified/delivered
No of projects in each phase
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• LESSONS LEARNT
• Establishing a process model takes years,
  Decision on how far towards a process enterprise
  takes years, but ..
• Getting people working cross functionally is a
  good place to start, and reaps real benefits
• Dont need everybody doing everything in an
  identical way to deliver business benefits
• Establishing a community of interest to share
  best practice helps their motivation and starts
  to establish links across the organisation
• Need to establish infrastructure first before you
  can start running projects and delivering real
  benefit
• Business buy-in essential - do this by connecting
  to strategic objectives

GO SLOW UP FRONT, TO DELIVER FAST
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THX TTYL
Thanks, talk to you later .