Maximizing Carrier Profitability & Efficiency

Measuring Success - Process Metrics

As part of BottomLine's '9 Step OSS Reconciliation Methodology', equipment and circuit segments are reconciled a site at a time. Equipment and circuit errors, including the related financial implications are also captured. The end result is an ongoing record of financial recovery by site and cumulatively (see Financial Metrics page for more details). But in addition to knowing what is broken, and what it has cost the Carrier in revenue leakage or wasted costs, it is also extremely useful to know why things are broken. Therefore, Process Metrics are critical.

Process Metrics data provides Carriers with meaningful data that can be used to more effectively manage the organization. Carriers know what processes are broken, which processes are costing them money and how much, and where within the organization re-engineering or training may be required.

Process Metrics focus on two areas:

1. Knowing what business processes are contributing to OSS data contamination

2. Attaching financial impacts (measuring the magnitude) to each weak or damaged business process

^{Table 1: Sample Process Metrics w/financial impacts}

Table 1 above displays sample process metrics (including causation and financial magnitudes) for one audited network facility. In the upper "X Axis" of Table 1, financial metrics (in thousands of dollars) are classified into four categories:

1. Equipment: value for all recovered equipment - includes spare cards, excess material, and over carding

2. Stranded Capacity/MRR: value of recovered capacity as measured in MRR (monthly recurring revenue)

3. Offnet/COGS MRC: value of recovered LEC leased line overpayments measured in MRC (monthly recurring charge)

4. Billing: value of 'new' MRR placed on the books - typically Carrier customers that were not previously in the billing system at the proper amount, or not in the billing system at all. This category can also include recovered back billings.

The metrics table also tracks intervals, or instances of each particular process error.

Error code libraries are created and are typically categorized by functional group - "E" for equipment, "C" or "CD" for circuit design, "F" for field, "CS" for customer service, "D" for disconnect team, etc. On the "Y Axis" of Table 1, specific error codes related to one particular audited site are listed.

The data contained in Table 1 indicates that the site audit produced a total economic recovery of $133,700 (see lower right hand corner of table), with $74,100 the result of error code D2 (Circuits disconnected but backbone left up), $22,200 caused by error code E1 (Equipment missing from OSS), $17,400 related to error code CS1 (No MRC $ attached during customer service order entry), $14,000 related to error code CD1 (Cross-connects not taken down by the NOC during disconnect), and $6,000 due to E2 (Cross-connects input incorrectly). In this example, clearly the disconnect process requires the most attention - having contributed to 66% of the economic impact.

Knowing where the organization is "bleeding" will continue to remain a key competitive factor in the years to come. BottomLine's Solutions provide the critical data and perspective needed to remedy this critical success factor.