talkRA has always accepted anonymous posts and comments, because we appreciate that businesses can be obstructive, or even vindictive, when employees dare to say something negative. Today’s guest post comes from an experienced analyst who wishes to remain anonymous. It tells a story of a telco whose management culture is unwilling to fix fundamentals because they prefer to deal with symptoms instead of causes. The irony of revenue assurance is that it is inherently a ‘bad news’ function, discovering and reporting mistakes and failures, in order to resolve them and improve the business. Such a role can only succeed if management teams are willing to tolerate and respond to bad news. talkRA also understands the need to vent frustration. Hopefully this critique will reassure other readers, facing similar circumstances. Know one thing: you are not alone!
I have been in the Revenue Assurance and Billing world for over a decade, and worked across multiple operators, both fixed and wireless. The first company I worked at is still the most mature example of RA I have seen to date. This really hit home when I looked at how my current employer does RA. They are a large operator, but they are missing many of the key attributes I would associate with a mature RA function. Starting with the basics:
Usage/Traffic Assurance: They have CDR counts and file matching for most switch types, but all are reconciled manually on spreadsheets with no alarms! Their methods are stuck at eyeball 1.0, and they wondered why we didn’t notice a switch losing 40% of its call records one day!
Suspense: Suspense is semi-monitored or maintained by multiple parts of the organization such as RA, Billing, Ops or 3rd party contractors. There is no real logic to where everything is. The split of responsibilities reflects the history of organizational change, like a river erodes the valley, meandering through the path of least resistance, but with no overall plan.
Rating Assurance/Test Call Generators: There is very poor coverage, with only basic call types being tested. You have to question a control that hasn’t found any errors in three years!
Non-Usage Assurance: This was probably their strongest area, for the products they assured. The biggest weakness? The products they didn’t cover! The relative strength of this assurance is no surprise, as it is easy to implement controls that compare how many assets you have in the inventory, with how many you bill for.
Coverage Model/Controls Matrix: Errrrr, nope. If completed this would look like a scene out of a horror movie, with a sea of red across the graphs.
New Product Development: It would be nice to be proactive rather than reactive, and have reporting requirements submitted before the launch of a product/service. Somebody tried to do this, but it doesn’t contribute towards a target, so it became one of those jobs that people did when they had spare time. And guess what? There is never spare time.
This isn’t the first operator I’ve worked for, but I’m thinking what the hell have I got myself into. It’s not that I don’t enjoy the challenge, because I’ve always thrived on the challenges, at every operator I’ve worked for. It’s not that we don’t have the resources, because we employ an army of people. It’s not that we don’t have the talent, because we have some of the best minds in the industry.
The real issue is that – and you probably picked this up already – the RA function is like a scene out of Jerry Maguire…
This RA function is being used as a cash cow to make up for financial shortfalls within the business, and to accelerate people’s careers. The targets are difficult, with strict rules on the benefits that can be claimed. As an example, any control which has been run for more than a year is classified as protective, and doesn’t contribute.
The team always seem to pull it out of the bag and hit the numbers, but this behavior reminds me of the theme to an old TV series, The Littlest Hobo.
Maybe tomorrow we’ll wanna settle down, until tomorrow we’ll just keep movin’ on… to the next leakage! This operator never settles down and builds a foundation for its RA. It just digs for goodies, then moves on. There is no interest in fixing root causes, establishing permanent controls or proactive measures. The operator treats leaks like plants that grow wild: take as much as you can from each field, then come back a few years later and re-harvest the same issues once they have grown back.
There you have it… a long time has passed since the birth of RA, and still a large operator can’t get the basics right. Why? Because senior management love the money!
This is similar to the company l work for, senior management pretend these things are important. But maintained control coverage and fixing issues around data quality are first to be dropped. Or last in priority so get moved to next years plans (same again following year).
May the force be with you!
If you’re leaving issues untreated only so you can go back a few years later and claim recoveries… I hope you’re not paid any form of commission for it because it could be considered an internal fraud scheme :)
the fact that management is focused on the cash should not really be a surprise. For years they were told about the billions of dollars they were throwing out the window each year.
About being proactive and having a strong control base… I’ve never seen it quantified and translated in $ in a way that’s explainable.