MacBeth Williams believes a maturity model for telecom expense management holds the key to future savings. In fact, our Telecom Expense Management Maturity Model (TEM3) is a tool specifically developed to comprehensively measure the effectiveness of telecom infrastructure expense management and identify the ‘next generation’ of savings.
By establishing levels of performance in such areas as expense management, telecom procurement, infrastructure utilization, and infrastructure maintenance, the improvement potential represented through the TEM Maturity Model allows companies to identify their current position relative to the model and most importantly to set new objectives for improved performance with quantifiable financial and operational gains.
The 5 Levels of the TEM Maturity Model
Level 1 – Unmanaged
Characterized by undocumented processes, unanticipated external factors, reactive to in the moment demands, and placing management at odds with corporate business objectives. Typically there is awareness the problem exists but for one reason or another the organization has taken little action to remedy it. Processes at this level are typically reactions primarily driven by individual heroics to unpredicted and/or dynamically charged events. This level can been seen as chaotic with last minute efforts resulting in poorly executed processes and telecom expenses that are 35% to 50% higher than required.
Level 2 – Reactive
The second level is characterized by fire fighting, event driven, and reactive management. At this level awareness and action occur in response to issues and is highly tactical without regard to an overall strategic plan. Again, costs are well out of line and typically 25% to 35% over actual requirements. There is little or no visibility into the various telecom services and therefore no disciplined management of these costs or operations.
Level 3 – Managed/Defined
Characterized by monitoring performance, analyzing trends, setting thresholds, and anticipating problems, enabling management to begin to take the upper hand in managing telecommunication costs and infrastructure. This level demonstrates sets of defined and documented processes built within standard repeatable templates. Processes as defined and documented within this level are beginning to change the course of events as tactical reactions unveiled in previous levels give way to strategic improvements. Reaching this level may reduce costs up to another 15% and positions the enterprise to achieve optimal levels of Telecom Expenses Management.
Level 4 – Integrated
Characterized by a foundation built on repeatable processes, joined with performance objectives and metrics to create a basis for managed and planned outcomes. Using qualified objectives and reasonably derived metrics, management foresees opportunities and challenges, providing the means by which to adjust and adapt while mitigating undesirable results.
Consistent execution at Level 4 is the definitive indication of Telecom Maturity and is evident in the execution and level of permeation through all aspects of telecom management.
Level 5 – Optimized
Regarded as the best of the best, this level is characterized by focus on continuous improvement. Telecom management is a strategic initiative, issues are either prevented or corrected at the source, and best-in class solution architecture is implemented ahead of business requirements. Performance is pushing the results boundaries of all known opportunities. This level places focus on continually optimizing performance through both incremental and innovative technological improvements. Innovation and strategy are key at this level.
Consistent execution at Level 5 is the definition of “Best Practice” within the Telecom Maturity Model.
Indicated by the levels in the model, the difference in practice and performance from one level to the next represents the prospect for modest to exceptional savings. As the more obvious lines of attack for expense reduction play themselves out, the opportunities created by such forward thinking strategies as the TEM3 offer your next best potential for significant savings.
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