The Telstra Productivity Indicator is a comprehensive report on how large Australian organisations measure, manage and invest in their productivity potential.

1. Telstra Productivity Indicator 2010
Key Findings

2. Contents
• The Big Picture
• The ‘Productivity Gap’
• Improving Productivity
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3. Productivity overview

4. The Big Picture
“Between 50% and 60% of Australia's economic growth
since 1990 can be attributed to productivity
improvements”.
Australia 2020 Summit - Education, Skills And The Productivity
Agenda
April 2008
“If we boost productivity growth by 2050 every
Australian man, woman and child would be $16,000
better off each year".
Building Australia's future: beginning a building decade for a
stronger Australia, The Hon Kevin Rudd MP, January 2010
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5. Productivity trends
„Lagging….not leading‟ „Slowing….not growing‟
Australia‟s Relative Productivity Performance
Australia's Relative Productivity Performance Australian Productivity Trends
2000-2008
AUSTRALIAN PRODUCTIVITY TRENDS
2000-2008
4%
3
3%
Slowdown
2%
2 1%
0%
-1%
1
-2%
-3%
-4%
0
Australia Canada France Germany Ireland Japan New United United -5%
Zealand Kingdom States 80-81 84-85 88-89 92-93 96-97 00-01 04-05 08-09
Sources: OECD, Analysis by Telstra Economics group Source: ABS
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6. Productivity growth is strongest in those industries
that are heavy users of communications technology
MFP growth & CommunicationsIntensity
MFP Growth and Communications Technology Intensity
4%
Wholesale Retail
Transport
3%
Communications Intensity
Accommodation
Information, Media & Telecoms
Recreation
2% Finance
Utilities
1%
Construction Agriculture
Manufacturing
Mining
0%
-4% -3% -2% -1% 0% 1% 2% 3%
MFP growth over decade to 2008-09
Sources: ABS and Analysis by Telstra Economics group
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7. Telstra’s Productivity Research
Macro- Industry-
economic level
Multi-factor
Macro-level
productivity
Research
analysis
ICT impact
on
productivity
Case-studies Telstra
and Productivity
Individual- Firm-level
level diagnostics Indicator
Work
group-level
Source: ACIL Tasman
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8. Telstra Productivity Indicator 2010
Objectives
• Discover how enterprise and government
organisations approach productivity
• Investigate the link between information and
communications technology (ICT) and improving
productivity.
Methodology
• Sweeney Research conduct 300 independent
confidential interviews annually to build a
statistically representative cross-section of
Australian organisations with >200 employees
• Industries follow ABS ANZSIC classifications
• Participants are directors, senior executives and
managers who are familiar with the workings of
their organisation
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9. Telstra Productivity Indicator 2010- key findings
1. Australia‟s „productivity gap‟, the difference between productivity expectations and
action, is significant and has widened.
2. The research shows a clear link between ICT investment and improved productivity.
3. Those organisations that are actively investing in ICT and aligning with worker needs are
driving measurable productivity improvements.
4. To close the gap requires management, measurement and investment.
5. Productivity is a key focus for organisations in 2010.
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10. The ‘Productivity Gap’

11. The ‘Productivity Gap’ is the difference between ‘what
is said’ and ‘what is done’
„What is said….‟ „What is done….‟
Measure, have a target and
TPI 2009 TPI 2010 know what it is
Don’t measure
Improving customer service 78% 78%
Improving productivity 78% 76%
Decreasing costs 74% 73% Measure but
Increasing revenue don’t have a
76% 72% specific target
Risk management 71% 65%
Attracting and retaining staff 80% 61% Measure and have a target,
but don’t know what it is
NB: For comparison – where relevant, numbers in (%) are from TPI2009
N.N.B: Due to rounding, the percentages in this chart will not add up to 100
Data source: The Telstra Productivity Indicator 2010 n=300
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12. The Productivity Gap is significant and widening
29% 34%
∆
Five ∆
percentage
points
increase in the
productivity
gap from
2009-2010
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13. Productivity Gap contributors
Lack of Lack of Barriers to ICT Misalignment of
ownership measurement investment ICT investment
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14. Assigning specific ownership enables better management of
productivity objectives
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15. Investment in ICT is the priority investment to
realise productivity gains
ICT investment is
seen as the most
important
contributor to
improving the
productivity of
organisations
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16. ICT Investment is not sufficiently aligned with the
needs of workers - suggesting significant opportunity
However,
only 34%
believe that Opportunity
ICT exists
deployment
is greatly
aligned with
the needs of
worker
groups to
maximise
their
productivity
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17. Top 5 ICT Investments for Improving Productivity
Extremely/Very important to improving In last 12 In next 12 % Difference
productivity months months
1. ACCESS - Providing better access to information and 69% 74% 5
resources for all people within your organisation through
networked computing
2. WIDE AREA NETWORKING - Using broadband/IP 70% 71% 1
network to deliver your necessary applications such as
email or other common applications to other sites
including remote sites and users
3. NETWORK COVERAGE AND SPEED - Improved 65% 70% 5
capabilities through higher network speeds and broader
network coverage
4. INFORMATION AND RESOURCE SHARING - 64% 69% 5
Creating opportunities for employees to share resources
and information electronically across offices in different
locations
5. FLEXIBLE/REMOTE NETWORKING - Creating 62% 66% 4
opportunities for employees to remain effective when they
are on the road or out of the office by providing remote
email, PDAs, mobile phones, SMS, text messaging
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18. Improving Productivity

19. Improving Productivity – Closing the Gap
Manage
Ownership Alignment
Specific accountability Aligning ICT investments
is critical ICT to drive with worker groups needs
productivity
Measure Invest
Technology
Investment
Measurement
Realising the productivity
Clear and accurate benefits vs cost of capital
measures are required investment
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20. Telstra Productivity demonstrated
Telstra Communication Technicians Telstra Country Wide / Telstra Enterprise & Government
• 95% of appointment date and times met • 23% reduction in overall monthly travel expenses
• 15% reduction in return visits to customers within compared with 2007
seven days • 10% reduction in domestic flights per month
• 43% increase in communication technician
productivity • 55% reduction in car hire
• $39.5 million of productivity savings per year, • Reduction of over 2.5 million kilometres in
including $14 million from fleet vehicle savings distance travelled
• 9,500 tonnes of estimated annual CO2 savings • Estimated 1,132 tonnes in annual CO²savings
due to driving avoided and fleet reductions
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21. Customers realising the productivity benefits
Ricoh Australia – Rob Livingstone, Chief Information Officer, on how high definition
video conferencing solution helped Ricoh enhance productivity and customer
relationships, while reducing cost and environmental footprint: “We‟ve achieved a
15% reduction in air travel; approximately 27 tonnes in CO2 emission avoidance;
also, a $40,000 direct cash saving by not having to fly and incidental travel
expenses. In addition to that, we have gained about 300 hours of direct staff
productivity time.”
G&S Engineering Services – Mick Crowe, Chief Operating Officer, on how the Telstra
Next G ™ network helped G&S Engineering Services to cut costs, maintain growth
and deliver on time: “There‟s just no question that it‟s made our executives and our
senior staff more efficient. The Next G™ network solution has made those people at
least 20% more effective while they travel, helping us realise a productivity benefit
of approximately $600,000 per year for the company.”
EB Games – Sean Glenn, Store Manager, on how Telstra Internet Direct helped EB
Games grow, cut costs and improve customer service in a highly competitive
environment: “Telstra Internet Direct helped us by minimising our staff requirements
and still giving a maximum possible customer service. This has equated to a saving of
$20,000 to $30,000 per year per store.”
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22. Telstra Productivity Indicator 2010 - summary
1. Australia‟s long term prosperity is dependent on increasing productivity. For business and government
organisations the focus is improvements at the individual, work group and organisation level
2. Telstra‟s ongoing research into productivity shows a clear link between ICT investment and improved
productivity. Those organisations that are actively investing in ICT, and aligning ICT to individual and worker
needs are driving measurable productivity improvements.
3. The Telstra Productivity Indicator 2010 identifies a significant and widening gap between productivity
expectations and actions.
4. Closing the gap requires management, measurement and investment.
5. Telstra is focused on providing network based ICT solutions aligned to worker needs to improve the productivity
of Australian business and government organisations.
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