A maturity model for telecom expense lifecycle management holds the key to future savings. A
Telecom Expense Management Maturity Model is a tool specifically developed to comprehensively
measure the effectiveness of telecom infrastructure expense management and identify where you
are currently and where you need to get to in order realize all the benefits.
By establishing and measuring levels of performance in such areas as expense management,
telecom procurement, infrastructure utilisation, and infrastructure maintenance, the improvement
potential in both realised value and hard cash can be identified and represented through the TEM
Maturity Model. By allowing companies to identify their current position relative to the model we
can see areas of focus and importantly to set new objectives for improved performance with
quantifiable financial and operational gains.
The 5 Stages of TEM Maturity
Stage 1 – Unmanaged
Unmanaged can be characterised by undocumented or lack of 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 stage are typically reactions
primarily driven by individual heroics (the office manager or personal assistant takes ownership
because nobody else does – for instance) 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 can be 35% to 50% higher than required. This leaves you in a position
where you have little or no control over spend and little or no negotiating position for future
Stage 2 – Reactive
Reactive can be characterised by fire fighting, event driven, and reactive management. At this
stage 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.
Stage 3 – Managed
The managed stage is characterised by monitoring performance, analyzing trends, setting
thresholds, and anticipating problems, enabling managers to be on the front foot in managing
telecommunication costs and infrastructure. This level demonstrates sets of defined and
documented processes built within standard repeatable templates; be they manual or automated.
Processes as defined and documented within this level and are beginning to change from tactical
to more long term and strategic. Reaching this stage may reduce costs up to another 15% and
positions the enterprise to achieve optimal levels of Telecom Lifecycle Management.
Stage 4 – Integrated
This stage is characterised by joined up repeatable processes, aligned to performance objectives
and metrics to create a basis for managing and planning outcomes. Using qualified objectives and
metrics derived from baseline data, management foresees opportunities and challenges, providing
the means by which to adjust and adapt while mitigating undesirable results. Consistent execution
at Stage 4 is the definitive indication of Telecom Lifecycle Maturity and is evident in the execution
and level of adoption through all aspects of telecom management.
Stage 5 – Optimised
The optimized stage is Utopian, rarely reached without years of continuous improvement. Telecom
Lifecycle management is adopted by the business as 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 stage places focus on continually optimising performance through both incremental and
innovative technological improvements. Innovation and strategy are key at this stage to see new
tangible and intangible benefits.
Where would you rank on this model?
Our experience is that few businesses even get to Stage 4 without specific and focused
intervention of a business sponsor. Procurement and IT Infrastructure groups have a vested
interest in budget control and cost reductions but don’t always work together to this end. Third
parties such as G Spice Consulting Ltd. can talk the language of both, help align scope, strategy
and approach and work with clients to drive maturity in controlled easily manageable steps with
positive ROI. We’re so convinced of this our first Assessment of your current situation is free – just
send us 3 months of invoices in either paper or electronic format and we’ll help you write the
business case to climb the model one step at a time.
Call us now at +44 (0)20 7193 9827 or visit our website www.gspiceconsultingltd.com for more