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RA Guide: Loss Checklist

Last post 06-18-2008, 4:24 AM by GadiS. 11 replies.
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  •  08-10-2006, 12:56 PM 276

    RA Guide: Loss Checklist

    Stephen Tebbett has done an awesome job in pulling together the checklist of every imaginable revenue loss cause known to man.  But bet you nobody will ever admit to using it.  Why?

    • People working in RA for service providers don't want to know about all the things they have neither time nor skills nor resources to do anything about
    • People working for RA vendors don't want to know about all the things that go wrong that are not addressed by their products
    • Consultants will want to pretend their "experience" means they already knew the complete list but they wrote their own years ago and much better (which is why customers should pay for them and not just grab the list and read it themselves)

    Here's my challenge: can anyone think of positive scenarios where (1) a service provider RA dept, (2) an RA vendor, and (3) a consultant, would OPENLY admit (better still, promote) that they used the checklist to improve their work.

    If we can think of positive scenarios, the next step would be to encourage real people working in all 3 cases to do just that!

  •  08-18-2006, 7:52 AM 297 in reply to 276

    Re: RA Guide: Loss Checklist

    I agree entirely with your 3 points as to why the list is not being used.  I think it is also worth adding a further couple of points as well before rising to your challenge. 

    Firstly, I think people do not understand how to use the list.  On the simplest level it can be used as a check list for a review of potential risks and to see some key areas where you are losing money.  A much more advanced use would be to turn the list into a scientific model and have complex calculations to value the level of leakage and coverage (i.e. number of risks that you are able to measure) applying very strict criteria to ensure no overlap of leakage measurements.  Senior stakeholders do not want to be concerned with the complexities of the model, they just want to know how much ROI they are getting.  It is for the RA professionals to use the model, and have a clear message to convey to their sponsors.

    Seondly, the cost of measuring some of the more obscure risks could far outweigh the benefits of any identified leakage.  However, the counter argument is how to you know what is going wrong if you do not measure it!

    Thirdly, the checklist is designed using a specific principle that each risk is unique and leakage measured specifically at that point will not overlap with leakage measured elsewhere in the list.  Often, the risk based approach applied by the vendor/SP/consultancy will not use this principle and risks will overlap and arguably the measured benefit could be over inflated.

    The likely occurences of the scenarios you refer to will happen where people within this circle proactively use the framework in their own respective environments, and deliver results.  If results can be delivered, then there is scope for a more widespread use to take off.  Perhaps the question you raise is a wider question - how do we encourage more people to adopt the tmf principles?  This would be one specific instance of best practice they wish to adopt.

    In summary, I think people need to more clearly understand what the purpose of the checklist is for, and successful implementation of the list would lead to more widespread use.

    Stephen

     

     

  •  08-21-2006, 12:53 PM 310 in reply to 297

    Re: RA Guide: Loss Checklist

    Having been writing replies that are mostly 'glass half empty' lets try for one that has the glass approximately half full...

    1) CSP RA dept - uses checklist to present to dept head as example of the benefits of collaboration in short cutting the 'what to do when the low hanging fruit are all picked' problem (and similar) [Similar answer to the 'giving away secrets' thread] Claims opportunity to exploit thought leadership through co-operation

    2) RA vendor - uses checklist (and their participation in the RA working group) as example of open approach adopted, and therefore strengthens argument that interoperability challenges when including their product in best of breed COTS solution set will be deminished. [Warning: may require plugging unsightly holes in product set.] Claims thought leadership through co-operation.

    3) RA consultant - on the assumption that by revison 3 there will be no RA stone left unturned on the list (thereby making it impossible, or at least highly improbable, or possibly highly expensive, for consultant to find leak not on list) - claims prior (esoteric) knowledge and experience of how to make the business case and maximise ROI. Claims opportunity to have their thought leadership exploited through co-operation. 

    4) CxO - uses list as big stick for all concerned to sign off on and take ownership of plugging all possible real and imaginary leaks. Claims opportunity to exploit co-operation through thought leadership.

  •  08-23-2006, 6:41 AM 316 in reply to 310

    Re: RA Guide: Loss Checklist

    Who will admit not using the list?!!

     

    The trick is making the list a de-facto standard (did I mention GB941), once the list is published / accepted as  de-facto standard operators, vendors,  and consultant will not be able not to operate according to it, and everybody will happily admit using it (you know the old "No body was fired for buying …" saying).

     

    It is important to point out that the list is not a must do check list, but a guideline, So

    • from the operator perspective there is nothing wrong if an operator decides not to cover a certain leakage point that is in the list after considering it, and its relevance and risk for his organization; it is wrong to not be aware of the existence of the typical leakages points.
    • for the vendors the list is a good tool to explain (internally  and externally) exactly what is covered and what is not in the product, and also to draw a clear product road map.
    • And of course for consultants the list is a great opportunity to do consultancy and develop material according to the standards.

     

    So who will be able to afford no to claim that he is using the list (am I over optimistic?)!!

     

    Gadi

  •  08-23-2006, 8:31 AM 317 in reply to 316

    Re: RA Guide: Loss Checklist

    GadiS:

    Who will admit not using the list?!!

     

    ....

     

    (am I over optimistic?)!!

     

    Gadi

    We need optimists as well as pessimists, so I hope you are right.  In fact, I have been known to be so pessimistic that other people lose the will to continue and just give up, which is certainly not my ambition here.  On the other hand, I once gave a presentation on why you need to be a pessimist to work in revenue assurance; when others assume everything is working okay, you keep looking to see what has gone wrong!

    I guess my pessimism relates to how we manage the transition from where we are (list version 1.0) to where we want to be (de facto standard).  For a standard to work everyone has to want to follow the same one.  The best way to mess up the chances of a standard succeeding are to issue a rival standard.  Telecoms has plenty of examples that proove that point.  Rival standards are a barrier to collaboration and they waste energy as the rival camps design their own separate solutions to the same problem.  And after each camp has its own solution they end up competing for followers or putting even more energy into merging the standards.  In the worst case scenario you end up with so many standards that there is little value in following any of them.  My worry is that if people do not sign up to this standard before it is the "de facto" standard then it never will be the de facto standard - and the vacuum will be filled by lots of rival standards claiming to be the same or better than ours, but in reality being just inferior copies designed to promote the strengths and ignore the weaknesses of whoever comes up with the rival standard.

    The funny thing is that I can give a great example of exactly this thing happening to another standard we are working on - and you, Gadi, are right in the middle of it!  Take a look at the following article in Billing World & OSS Today: http://www.billingworld.com/rev2/main/featureArticle.cfm?featureID=7780 which quotes you.  Fine, it covers the basics of a maturity model and is good publicity for our work - but look at the headline:

    "Revenue Assurance Maturity Models (RAMMs) are abundant today"

    How did that happen?  Less than 3 years ago, when we first met in California, nobody was talking about Revenue Assurance Maturity Models - never mind coming up with a acronym for them or claiming they are abundant.  I proposed it as a half-complete idea at the TAW on the back of an internal exercise we had been performing at T-Mobile, and I remember at least some of the people in the room thought it was a bad idea.  But today, you find the words being repeated by many people working in revenue assurance, but hardly any of them are talking not about some common industry-agreed model.  Instead, they are presented by people talking about their own ideas, without any attempt to build consensus or support for their pet theories, without seeking any evidence or experience to corroborate their findings outside of their own organization.  So, the article is right that maturity models are abundant.  What the article does not say is that most of them are complete crap.  I have yet to see a rival model that is a genuine attempt at cross-industry collaboration.  Most plainly steal from the work the TMF has done, but change it to avoid the obvious intellectual property implications.  None of the rivals admit that their work is the product of solely in-house experience, and hence inferior to our cross-industry exercise.  But you can be sure of one thing: some of the people who would otherwise have found our maturity model and be working with it and helping us to improve it will have been distracted by the rival models first.

    The worst thing is that our maturity model really needs a lot of work still, and 3 years later we are still working on it.  But it is a brave man that would hold up our model, say out loud that it still needs a lot of work, and encourage people to work with us on using it in practice and improving it, when the next guy talking claims his model is the finished article and he has some nice consultants in good suits just waiting to come to your business and help you use it - for a reasonable price.

    So, I want to avoid complacency.  Our standards, including the loss checklist and the maturity model, will not become the de facto standards just because they are good or genuine or we believe in them or even because the rivals are crap.  We also need effective promotion.  Without a budget to promote them, that promotion has to be viral in nature: people need to openly state they use it and recommend it to others just because they do use it and they think it works, even if there is no direct financial benefit to them.  I want to use this portal, and any other activities that the team can suggest, to drive that viral promotion of our work.  So, coming back to the original question: how do we get consultants, vendors and practitioners to praise and recommend our checklist before anyone can seriously claim it is the de facto stanadard?  Put another way, if we start with one vendor - maybe one like cVidya ;) - one consulting firm - maybe like E&Y - and one service provider - maybe like Telstra, what can we ask them to do to promote our checklist?  What might be a good win-win for both the TMF and them?  And what will they do to actually promote our standard on a regular basis?  Put another way, suppose a nice vendor - like cVidya ;) - has a website with links to articles - like our story about the abundance of maturity models ;) - how do we get them to link to or talk about our maturity model as being the one they advise their customers to use?  How do we get them to sell their services as being one mechanism to tackle some of the items on our checklist?

  •  02-20-2008, 10:21 AM 1414 in reply to 276

    Re: RA Guide: Loss Checklist

    Where could I find the potentiel  revenues loss Checklist ?

    Many thanks in advance and Regards.

    Samir Koutoune

  •  02-20-2008, 2:35 PM 1416 in reply to 1414

    Re: RA Guide: Loss Checklist

    I think the checklist is somewhere in the publication pipeline, so is not available to the public yet.  It was going to be released as an annex to the GB941 guidebook.  We have had annex A published already (the KPIs workbook), annex B is half way through approval (my own work on maturity) and this was slated to be annex C last time I checked.
  •  02-20-2008, 2:50 PM 1417 in reply to 1416

    Re: RA Guide: Loss Checklist

    An initial list with about 80 control points is part of the existing version of GB941. As Eric said an updated more comprehensive list (with about ~120 control points) is going to be published as an Annex to the new version of GB941 in the next 4-6 months.

    If you are a member of the RA team you can access this draft in the team work space (let me know if you need instructions) if you are not a member, and your company is a member of the TMF you can self subscribe to the team (once again let me know if you need instructions).

    Hope this help

  •  06-12-2008, 2:28 PM 1853 in reply to 276

    Looking For RA related Documents

    I am looking for RA related documents.

    Please help me.

  •  06-15-2008, 7:41 AM 1856 in reply to 1853

    Re: Looking For RA related Documents

    There is plenty of Material for TMF members (your company should be a member of the TMF – then you can subscribe for free)

    1. GB941
      1. Main document (van be downloaded also by none members)  - http://www.tmforum.org/page32651.aspx
      2. A Revenue Assurance KPI Metrics Workbook Addendum -  http://www.tmforum.org/page33544.aspx
      3. Maturity Model Addendum - http://www.tmforum.org/page34598.aspx

    2.       TR131 (a new version for members evaluation is expected shortly)- http://www.tmforum.org/page30508.aspx

    3.       There are some additional documents "on work", including recommendations for RFI/Ps, and the updated list of leakage points, for getting these documents you need to subscribe to the RA team (again free if your company is a member of the TMF) – let me know if you need instructions on how to subscribe.

  •  06-17-2008, 10:28 PM 1865 in reply to 276

    Re: RA Guide: Loss Checklist

    Where can we get a copy of Stephen's checklist?
  •  06-18-2008, 4:24 AM 1870 in reply to 1865

    Re: RA Guide: Loss Checklist

    John,

    You can find the document (on work)  "Revenue Leakage Framework with examples v0.4.xls" under the Community Workspace (http://www.tmforum.org/cws) ,  in Billing and Revenue Assurance / Working Documents / GB941 Addendums - On Work / Revenue Leakage Framework – in order to access it you need to subscribe to the Revenue assurance team (free subscription – if your company is a member of the TMF)

    Gadi

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