April 2013

White Paper
Introducing the Halo Effect to Drive Competitive Advantage
See Expenditure Drop As Savings Ripple Across Your Organisation

Tollring 10 Moorcroft Harlington Road Uxbridge Middlesex UB8 3HD t: +44 1895 478899 www.tollring.com

Copyright 2013 Tollring. All rights reserved.

Six Steps to Minimise Expenditure and Improve Productivity Using the Halo Effect

Contents ExecutiveSummary....................................................................................................... 3 Introduction................................................................................................................... 3 Step1.Monitorexpendituretocontrolit..................................................................... 4 Step2.Creatingtheenterprisehalo.............................................................................. 5 Step3.Makeiteasyforeveryonetoparticipate..........................................................6 Step4.Keepthehaloafloatinanoceanofdata...........................................................6 Step5.Avoidthepitfallswhenimplementingabigdatasolution.............................7 Step6.Enhancethevalueofyoursuppliercommunity................................................8 Conclusions.................................................................................................................... 9 NextAction.................................................................................................................... 9 AboutTollring............................................................................................................... 10 References.................................................................................................................... 11

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Copyright 2013 Tollring. All rights reserved.

Six Steps to Minimise Expenditure and Improve Productivity Using the Halo Effect

ExecutiveSummary Whenmeasuresaretakentocreateahaloeffectinyourbusinessthebenefits willrippleacrosstheentireenterprise.Thehalorepresentsmoresaintly behaviourwhichbeginswhenwestarttobuildacommunityoflikeminded people.Asimplestrategybasedonmonitoringbehaviourisoftenenoughto persuadeemployeestoactdifferently. Oneapproachistoinformtheworkforcethatits expenditureisnowbeingassessedandbenchmarked accordingtojobfunction.Warningemployeesthattheir useofresourcesisbeingwatched,thatmisusewillbe penalisedandcompliancerewarded,isasimple behaviouralchangetacticthatcandeliverhugesavings. Makingpeopleawarethatexpenditureisbeingmonitoredwillhelpcreateanew mindsetandresponse.Asmoreandmoreemployeesareencouragedtoreduce wastefulandunnecessaryexpenditure,theeconomicbenefitscanrapidlyspread throughouttheworkforceandbeyondresultinginadelugeofimprovements acrossyourwiderbusinesscommunity. Thiswhitepaperexploresthebenefitsofthehaloeffect.Itwilldemonstratehow acollectivehaloiscreatedandwhyitrequiresminimalresources.Itwilldispel somemythsaboutimplementationandshowhowitimpactsthebottomline, improvingcompetitivenesstogivebusinessescompetitiveadvantage. Introduction Thereisahugeamountofwastageincorporateexpenditure.Inasurvey conductedbyprocurementspecialistsProxima1theauthorstatedthat:More than10billioninannualprofitscouldbeunlockedforFTSE350companies throughjustaonepercentreductioninoperatingcosts.Thisputstheneedto minimisewastageintofocus. Reducingoperatingcostsshouldbecomehabitualandisamuchmorepositive waytoprotectprofitabilitythan,forexample,reducingheadcount.Amajor sourceofunnecessarycostisemployeeexpenditurebutevenifyoucanachieve reductions,howdoyouensurethatthisdownwardtrendwillendureinthelong term? Theabilitytomonitorandattributecostsattheindividuallevelrequires sophisticatedtechnologyandcomplexdataanalysiscapability.Thiswouldonce haverepresentedadauntingchallengebutwiththeriseofcloudbasedand
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Six Steps to Minimise Expenditure and Improve Productivity Using the Halo Effect

hostedservicesthisisnolongerthecaseastheysimultaneouslyremove implementationconcernsandcosts. Step1.Monitorexpendituretocontrolit Whenlefttotheirowndevicesmany employeessquanderresources.Itisgenerally notmaliciousbehaviourjustalackof understandingofhowtheseseemingly insignificantcostscancollectivelydamagethe organisationsperformanceandcompetitiveness. Whatproportionofyourorganisations expenditurewouldyouimagineislost throughmisuse?Tenpercent?Twenty? Itiscommonlymorelikefiftypercent2and manypeoplefindthislevelofwastestaggering.

Whatproportionofyour organisationsexpenditure wouldyouimagineislost throughmisuse? Tenpercent?Twenty? Itiscommonlymorelike fiftypercent2

Onesolutionistomonitorexpenditurebutmonitoringaloneisnotenoughto reducewastageyouneedtoenforceit.Thefirststepofenforcementistotell theworkforcewhyyouaredoingitandthepositiveeffectitwillhaveonthe companyandultimatelyonthem.Youwillbesurprisedhowradicallythis knowledgealonewillchangebehaviour. Suddenlyemployeeshaveamoresaintlyattitudetowardstheuse(andmisuse)of mobiledevices,conferencing,mileage/petrol,travel,entertainment,expenses, stationary,internalroombookingsoranyotheritemthataccumulatesamonthly costhencethehaloeffectiscreated.Costsacrosstheenterprisestarttofall becauseeveryoneknowstheywillbecomeaccountablefortheirlevelof consumptionwhenbenchmarkedagainstsimilarjobfunctionsorcompanywide policy. Mutualawarenesshelpstoachieveacompanywidebuyinformore responsiblebehaviouralongwithacommunityspiriteddesireto participatewitheveryoneelsetoprotectthebusiness.Itisamindshift. Employeesmoreimpervioustothemessagewillfirstlybeeasyto identifyandsecondlymotivatedbytheconcernthattheywillbe requiredtojustifytheirhighercosts. Enforcementcanhavetheoppositeeffect,ofcourse,ifitisseenasajokeor unreasonable.Oneoftheproblemsofattributingcostthroughoutalarge enterpriseisbeingabletoaccuratelyallocatecoststospecificindividualsor
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Six Steps to Minimise Expenditure and Improve Productivity Using the Halo Effect

groups.Effectivelymanagingnumeroussourcesofdataandeliminatingsilosof dataisnottheproblemitoncewas,however,thankstothedeepeningexpertise ofhostedservicesandthelowercostsofCloudbaseddelivery. Step2.Creatingtheenterprisehalo Itsonethingtocreateacultureoftransparencybuthowdoyoumakeitpossible inthefirstplace?Youneedtherighttoolsandcapabilities.Traditionalattempts werenotsosuccessfulbecausebespoketoolsneededtobecreatedfromscratch andtheywereoftenineffectiveandtooktoolongtodevelopandimplement. Today,hostedorCloudbasedspecialistsprovidededicatedsolutionshonedby morethanadecadeofindustryexperience.Theirofftheshelf,readytogo subscriptionbasedofferingsdonotraiseCAPEXconcerns.Youcanputtheright practicesinplaceanddosothroughlowcostsubscriptiontotheserviceprovider. Nofixedassetsmeansanextremelylowriskventurewithnolongtermtieinand withatypicalROIwithinsixto12monthsfundedfromsavings. Ifthetoolsprovidethemeanstoinform,shapeandcontroltheenvironmentthe restisdowntobasicpsychology.Weareallstakeholdersintheorganisationthat employsuswhetheratboardlevelorentrylevel.Wesubconsciouslyrecognise thisbutsooftenweneedreminderstoshapeandmaintainourgoodbehaviour. Wenotonlyneedtohearthemessagerepeatedlyandseeitwithourowneyes, weneedtobeinfluencedbythosearoundustosustainthem. Businesspsychologists,PearnKandola3,providevaluableinsightthroughtheir knowledgeoftheMexicanwave.Oneofitsblogsstatesthatittakesaroundtwo dozenpeopletoinitiateaMexicanwavewhichgraduallyspreadsoutintoalineas morepeoplejoininattherateoftwentytwoseatspersecond.

Whenweareinacrowd, wearemorelikelyto behaveinlinewithwhat otherpeopleinthecrowd aredoing,ratherthanin linewithwhatoneperson tellsthecrowdtodo

PearnKandola3

Whatisfarmoreinterestingfromthepointofviewofachieving sustainablechangeinalargeorganisationiswhatonepsychologist observedattheLondonOlympics.Hesaidthewavesthatstarted spontaneouslyweremuchmoresuccessful(intermsofparticipationand duration)thanthosestartedbythecommentatorsencouraginga Mexicanwavetobegin.Theobserverattributedthephenomenonto CrowdBehaviour,whenweareinacrowd,wearemorelikelyto behaveinlinewithwhatotherpeopleinthecrowdaredoing,rather thaninlinewithwhatonepersontellsthecrowdtodo. Thisraisesthequestionofapplication.Howdoyouapplycrowd behaviourtotheworkplace?Behaviouralchangeusuallyrequiresafew
Copyright 2013 Tollring. All rights reserved.

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Six Steps to Minimise Expenditure and Improve Productivity Using the Halo Effect

strategicemployeestobeselectedaschampionsjustasmanyorganisationsnow haveenvironmentalchampions.Thisgroupencouragesemployeesaroundthem andliketheMexicanwavethisinfluenceschangeamongstthewiderworkforce. UnliketheMexicanwavewhichcomestoaninevitableendbehaviouralchange canbesustainedwhenthechampionsaresupportedbyotherinitiativesand finallybyenforcingthechangethroughthemonitoringandmeasuringcapability. Anyhintofbigbrotheriseliminatedbyinternalcommunicationthatexplains howcarefuluseofresourceshelpstosavejobs,safeguardbonuses,protect suppliersinthebusinesscommunityandensurescompetitiveness. Step3.Makeiteasyforeveryonetoparticipate Peoplewilltakeownershipoftheproblemofwastageifyouhelpthem.Flooding employeeswithdatawillnothelp.Helpfulpersuasionisneededandthisbegins withgivingtheenduserintelligentinformationdeliveredintheformofsimple, relevantdashboardsthatrequiresnodecipheringtoseewhetherornotthebench markhasbeenbreached. Deliveringtheappropriatelevelofinformationwill fosterinnategoodwill.Peopledogenerallytryto dotherightthingifitismadeeasyforthemto cooperate.Clearandrelevantinformation improvesvisibilityandenablesmanagementto functionmoreeffectively.Itcanplanforthe futurebycomparingcurrentandhistoricspending forexample.Thismakesiteasiertomake forecasts,understandpatternsofreplacement, knowifbillingisaccurateandseeanydiscrepanciesatadetailedlevelandona costeffectivebasis.Managementcanseeifassetsarebeingoverused,under usedandusedresponsibilityandensuretheindividualandtheorganisation remaincompliantwithchangingHMRCcompliance.Giventhefullandaccurate pictureyoucanseewhatneedstochangeandtoimproveandtheimproved outcomesfromtheindividual,groupandcompanywideeffort. Step4.Keepthehaloafloatinanoceanofdata Mostemployeesaresupportedbyaplethoraofdevicessuchassmartphones, landlines,laptops,cars,printers,specialequipment,protectiveclothingand uniforms.Youmaythinkofmanyotherexamplesallimpactingthebottomline.
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Six Steps to Minimise Expenditure and Improve Productivity Using the Halo Effect

Furtherconsumption,throughfuelcards,companycreditcards,conference facilitiesandenergy,tonamethemostobvious,alsoaddtocoststhathinder profitableoperation.Giventheamountofdatathisgeneratesinalarge organisationonemightthinkthatitwouldbetoocostlytoidentifyallexpenditure attheindividuallevel. Untilrecentlymanyorganisationshavestruggledpartlybecausedatacomes fromsomanydifferentsources(internalandexternal)andinsomany formats.Althoughitcanbecheapertoignoretheproblemthantrying toreconcileandrecoverthesemyriadcoststhisisnolongertrue.Indeeditisnow provingextremelycostlytoignore. Specialistserviceproviderscansolvetheproblemthroughtheirincreased expertiseinhandlingcomplexdataandapplicationintegrationonyourbehalf, enablingthemtoprovidemultilevelvisibilityacrosstheenterprise.Todayitis relativelyeasytoaccountforandattributesmallcoststhroughoutthelargest enterprises.Whenimplementation,disruptionandriskarenolongerbigissuesit ispossibletocontrolandrecovercostseconomicallywhenmanagedbyhosted servicesorviatheCloud. Step5.Avoidthepitfallswhenimplementingabigdatasolution BigdataorBusinessIntelligence(BI)projectscansendashiverdownthespine ofmanyorganisationsbecausetheyaretaintedwithahighfailureratehistory4. So,whytakeonabigdataprojectwhenwhatisrequiredisalreadyaccomplished? TodayshostedandCloudbasedspecialistscansimplysupplementandenhance yourexistinginvestmentinBI.Theseserviceproviderscanintegrateobscure datasourcestoprovideyouwithinformationeveryonecanutilise. TherehavebeenmanycriticismsoftheCloudand whilesomearejustifiedmanyarenotandlikeall thingsthistechnologycontinuestobenefitfrom advancesandexperience.Oftenitissimplydownto thequalityoftheserviceproviderselected. Securityhasbeenatopconcernbutthistooischanging.Arecentsurveyquoted byForbes5foundinfavourofCloudversusonpremiseapplicationswhichsaid cloudbasedapplicationsarelesslikelytobeattackedthanonpremises environments,anewstudyof70,000securitybreachesfora12monthperiod across1,600companies,releasedbyAlertLogic,asecurityvendor,concludes.
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Six Steps to Minimise Expenditure and Improve Productivity Using the Halo Effect

Step6.Enhancethevalueofyoursuppliercommunity Companiesareinbusinessforonereasontomakeaprofit.Everyoneseeks waystoaddvaluetotheservicetheyprovide.Sometimesthiscangoalittletoo farwhereshorttermprofiteeringbythesupplieroftenleadstounnecessarycosts fortheenterprise.Itisbetterhavetheabilitytomonitorspendandbeableto justifypricevariationsthantobemystifiedbythesupplierslimitedbreakdownof theircostsandfordistrusttodamagetherelationship.Itisbettertoraiseany concernsatthetimethantoreachapointwheretherelationshipfailsandcauses disruptiontobothyouandthesupplierorultimatelythepartingoftheways. Supplierswhosetariffs,feesorchargesaredifficulttounraveland understandunfairlyrelyoncustomerobfuscationtopropupmargins andavoidcannibalisingtheirrevenuesstreams.Butcurrentcropof analysisandbenchmarkingtoolscaneffectivelyremovetheveiland showthatobfuscationisnotgoodbusinesspracticesinceitfirst corrodestherelationshipandthenlossofbusinessandcaneventually damagethecorporatereputation. Expenditureinformationcanofcoursehavemuchmorepositiveeffects.Alarge parentcompanyusedTollringtoanalyseitsoperationaldatawhichledtoa dramaticincreaseinsales.Thiscameaboutbecausethedatarevealedthatone ofitssubsidiaries,awholesalertotheconstructionsectorwithhundredsof branchesthroughouttheUK,hadahighnumberofunansweredcalls.Thiswas revealedbyanalysisandmonitoringofcalldataatbranchlevel.Itrectifiedthe situationwithacallbackwithinthehouralerttobranchbasedstaffand discoveredthateveryonepercentimprovementwithinthehourequatedtoan additional1millioninsales.

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Copyright 2013 Tollring. All rights reserved.

Six Steps to Minimise Expenditure and Improve Productivity Using the Halo Effect

Conclusions Creatingahaloeffectinyourorganisationisoneofthemost effectivewaystoremovewastefromcompany expenditure.Itisachievedbyintroducinga monitoringprocessandinformingthe workforcethatconsumptioninallitsformsis beingmonitoredandbenchmarked.As behaviourchangesthefinancialbenefits willrippleacrosstheentireenterprisefrom anexpandingcommunityoflikeminded people. Itonlyrequiresafewsimplestepstobringaboutachangeofattitudeandachieve sustainableimprovementsthatwillincreasetheprofitmargin.Thisincludes: 1. 2. 3. Selectamonitoringsolution. Informtheworkforceofthiscapability. Changethemindsetacrosstheworkforcetoencouragethehaloeffect. Providerelevant,accurateandtimelyinformationinasuitableformat accordingtotheirrole. Ensurepeoplecanparticipatebytailoringrelevantandeasytounderstand informationappropriatetoeachleveloftheworkforceandjobfunction.This willenablethehaloeffecttogathermomentum. Chooseacloudbasedorhostedsolutionratherthananotheronsitebigdata implementationoratleastensureagenuinelyagiledevelopmentapproach forconsolidatingdatafromdifferentpartsoftheorganisation. Ensurethenewcapabilityembracesthewiderbusinesscommunity,suchas suppliers,extendingthehaloeffectexternally.

4.

5.

6.

NextAction Tollringworkswithmajororganisationsandcanprovideevidenceofthelevelof savingsthatcanbeachieved.Thestartingpointistorequestafreeauditorto trialitsapproach.

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Copyright 2013 Tollring. All rights reserved.

Six Steps to Minimise Expenditure and Improve Productivity Using the Halo Effect

AboutTollring Turningcommunicationsintobusinessinsight,tosolverealbusiness challengesatthetouchofabutton. For20yearsTollringhasprovidedfeaturerich,technologicallyadvancedand costeffectivecommunicationsmanagementsolutions.Theiruniquesoftware andtechnologyenabledserviceshelpmanage,understandandcontrolawide arrayofbusinessrelatedinformation,resourcesandassetsandhelpour customersexperienceandbenefitfromtheHaloEffectacrosstheirbusiness. Withover4000usersglobally,Tollringcontinuestodevelopinnovativesolutions thatcomplimentbusinessprocesses,facilitateregulatorycomplianceand ultimatelysavecustomerstimeandmoney,deliveringaclearROI.Tollring solutionsmeetabroadcrosssectionofbusinessandoperationalneeds, demonstratedthroughcasestudiesandreferrals. Tollringscomprehensiveportfolioofcloudbasedandlocallyinstalledapplications includes: iCsuiteenterpriseresourceanalyticsforlargemultisiteenterprises icallsuitecompletecallmanagement(irecord,ireport,iconnectandidial), offeringtherichestfunctionalityformanagingtelecomssystems,billing, contactcentreandagents.

TheawardwinningsolutioniCsuitehelpslargeandgrowingcompaniesto understandthetruecostofoperations.Thesolutioncombinessoftwareand servicestohelpIT,FinanceandProcurementunderstand,controlandreduce spendinahighlyeffectiveway.Bygatheringdatafromdirectandindirectcosts assignedtoeverylocation,assetandresource,iCsuitetransformsdatainto actionableintelligence,helpingcompaniestovisualise,understandandmanage resourcesbetter. CompatiblewithanyIP/PBXtelephonysystemandfullyscalableforanysizeof business,iCallsuiteprovidesallthebusinesstoolsyouneedforyourphone systemthroughaneasytouseinterface,dashboards,wallboardsand customisablewidgets. Tollringsolutionshavebeensuccessfullydeployedtolargecorporatecustomers acrossarangeofsectorsincluding;localgovernment,bluelight,healthcare, highereducationaswellastomidlargeprivatecompanies.

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Copyright 2013 Tollring. All rights reserved.

Six Steps to Minimise Expenditure and Improve Productivity Using the Halo Effect

Contactdetails PleasecontactCarlBoramanon+44(0)1895478899orviainfo@tollring.com
10Moorcroft,HarlingtonRoad,Uxbridge,Middlesex,UB83HD|www.tollring.com

References 1. Proximawww.proximagroup.com 2. FigurebasedonTollrings20yearsexperienceofanalysingtheexpenditure ofmajororganisations. 3. PearnKandolawww.pearnkandola.com/ 4. Gartnersurveyshowswhyprojectsfail.LarsMieritzJune2012. http://thisiswhatgoodlookslike.com/2012/06/10/gartnersurveyshowswhy projectsfail/&http://www.enterpriseappstoday.com/business intelligence/whymostbusinessintelligenceprojectsfail1.html 5. http://www.forbes.com/sites/joemckendrick/2012/09/19/cloudapps somewhatmoresecurethanonpremisesappssurvey/

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Copyright 2013 Tollring. All rights reserved.