For the last 20 years, EFQM has been committed to shaping business leaders to create a world in which European organisations are recognised as the benchmark for sustainable economic growth. We believe in the strength of practice based learning, rather than teaching leadership skills, tips and tricks in a class room setting. Our Pegasus Programme was developed in cooperation with Solvayâ€™s Corporate University and provides a unique opportunity to improve core leadership skills through peer assessments. It offers emerging business leaders the opportunity to learn and apply new skills in a real organization. Through this exercise, delegates practice the skills associated with quickly understanding a new professional context, formulating priorities, and more effectively interacting with senior management.
Each programme is based around a real business issue from a host company. The host will provide background information for analysis, plus make available the relevant managers and people to fully understand the problem they are facing. In return, they are seeking suggestions from the delegates, based on their collective experience and insights, on how to progress. The participants come from a range of different companies, sectors and countries. Part of the experience is learning how to work effectively together as a team to complete the task at hand. EFQM guides participants through the 7 day program, spread over 2 sessions during a period of 4â€“6 weeks. In the first session of 3 days in Brussels, participants are coached on techniques of strategic analysis and assessments, using materials and information from the host company. The second, 4 day assignment takes place on the hostâ€™s premises. Interviews are conducted with relevant people, conclusions and recommendations built and, finally, a change workshop run with senior managers from the host.
The EFQM Pegasus Programme is designed for leaders with the capability to take a step up in responsibility, towards managing a business unit, or to access new areas of responsibility. It is aimed at mid-career and emerging leaders with 10 to 20 years of professional experience from all backgrounds, companies, industries, and countries.
KPN is the leading telecommunications and ICT service provider in The Netherlands much admired for its sector-leading levels of profitability achieved over the last ten years under the leadership of former CEO Ad Scheepbouwer and current CEO Eelco Blok. Continued growth within the Netherlands is not guaranteed: competition is aggressive and increasing. The senior management of KPN’s Business Market Segment is nevertheless determined to pursue a policy of ‘Back to Growth’ through an increased ‘share of wallet’ among existing customers, growing the number of domains in which it is active and differentiating on excellent customer experience. Your mission within this Pegasus Assignment is to understand and advise the management team of the KPN Business Market Segment how they can place themselves among the very best service provider in the business sector in the Netherlands by the end of 2012: not just among telecoms operators but in comparison to the very best of any service company.
In the Netherlands KPN offers wireline and wireless telephony, internet and TV to consumers, endto-end telecommunications and ICT services to business customers. KPN’s subsidiary Getronics operates a global ICT services company with a market-leading position in the Benelux, offering endto-end solutions in infrastructure and network-related IT. In Germany and Belgium, KPN pursues a multi-brand strategy in its mobile operations and holds number three market positions through EPlus and BASE. KPN provides wholesale network services to third parties and operates an efficient IPbased infrastructure with global scale in international wholesale through iBasis. KPN aims to develop an environment for its staff where they are expected to take responsibility early in their career and to contribute to the business and their professional development.
The Business Market Segment of KPN has around 2,200 employees (compared with the KPN total of Large Enterprises Major 150 - 800 19,200 for the Netherlands and 30,600 for the group as a whole including international ‘MKB’ Medium 50 - 149 operations). In 2010 turnover was of the order of Small 5 - 49 €2.5 billion (group turnover was €13.4 billion). Small Office / Home Office <5 KPN Business Market divides the business market into four segments by the number of employees of the customer: from small / home office of less than 5 employees to major organisations of 150 employees or more. Market segments based on number of employees of the customer
Number of employees
The key dates for the KPN Business market case as part of the Pegasus Programme are:
Learning week (3 –days classroom): 31 August, 1st and 2nd September 2011, Belgium 4-days on site: 20th – 23rd September, the Hague, The Netherlands Participants would need to be available to attend both these sessions to complete the programme.
Customer figures* Wire-line customers Mobile customers Internet customers Television customers * Figures at December 31, 2010
Market shares 4.4 million 33.9 million 2.5 million 1.2 million
Fixed telephony Mobile telephony Broadband E-Plus
Strategy of KPN Business Market
Strategic building blocks to sustain EBITDA growth
The following ambitions have been set for 2010:
Customer focus is our starting point, thus we will become the
Become the leading managed ICT service provider Preferred business market supplier Revenue growth with best-in-class, margins for 2021 The strategic building blocks supporting these ambitions are described in the next text box.
preferred Business market provider. We leverage our market leading positions, by focusing on market share growth and cross- and upselling opportunities. We migrate our business to the All-IP platform, through which we will offer IP-based services and Fibre-to-the-Office. We will move up the value chain towards managed ICT-services. The Getronics acquisition is instrumental in achieving this goal. Portfolio simplification allows us to phase-out legacy services. Customer demand will remain the principle for this process. Cost reductions will be obtained through this simplification, increased productivity and lower IT costs.
KPN: Telco-ICT service provider in Europe KPN: De Best besteincumbent thuisspelende Telco-ICT dienstverlener in Europa Customer preference NPS 2009 2010 2011
Connected with employees and society
Marketleader strategic market positions
Mobile Voice / Data
Increasing performance on the ‘Net Promoter Score’’
Win single acces
Maximise value fixed and mobile
Increase growth & profit data
Increase share of wallet (SOW)
Best in class financial performance
Fixed Voice / Data
Increasingly higher percentages
Increase grip on distribution & customer contact
Be the best service provider in NL
Higher levels of profitability
Increase customer quality & decrease cost
Make portfolio choices
Share of Wallet
Excellent Customer Experience
Strong customer centric up- & cross sell approach to compensate negative revenu market trend
to increase customer satisfaction and loyalty
as a basis for (future) growth and to increase lock-in to traditional portfolio
Develop one NL way of working
To target improvements KPN has chosen one of the toughest metrics: the Net Promoter Score (or ‘NPS’), which seeks to maximise the percentage of customers willing to recommend the company and reduce to an insignificant percentage the proportion who are not satisfied. It is a target which stretches notions of what it means to have good customer relationships: customers who are ‘merely’ satisfied do not count in the score. NPS is taken seriously by KPN: an ‘NPS Board’ has been assigned to direct progress towards initiatives that are most likely to create real breakthroughs in the customer’s experience.
The NPS board has defined the following key focus areas for action: 1. Aligning service proposition and customer promise It’s not only what you do: it’s making sure that you are able to make reliable promises to the customer and then keep them. An explicit assignment of responsibilities has been defined for all elements of the customer process: each of Business Market’s top 50 managers is responsible for ensuring that progress is made on one of more specific elements of the ‘customer promise’.
2. Empowerment to solve customer problems KPN Business Market has been careful to review how the delegation of authority can be pushed as close as possible to the customer: rather than seek approval from the hierarchy, front line agents have increased capability and power to take decisions
The description of customer and production processes is compliant with the Telecom Operators Map (e-TOM). This model of the international Telecom Management Forum is agreed upon by the 700 corporate members of IT and Telecom operators in 195 countries. 3. Integrated view of the customer picture By integrating the various sources of data from CRM, Operational and Financial systems, KPN Business Market is building a sophisticated view of what is happening in front of the customer and continuous measurement of their preferences. The NPS metric is not just a high level target: it is also measured and actionable at the customer level.
4. Simplicity Customers value clarity and the ease with which they can do business with KPN. Equally, KPN benefits from reducing the costs associated with maintaining many or complex processes. By focussing on simplicity in transactions, KPN can both improve satisfaction and reduce cost.
5. Online customer care Business customers increasingly want solutions that are transparent and easy to access on line. Consistent with its technological and market positioning KPN Business Market aims to give its business customers the most complete and satisfying online customer service.
Are the quality programmes underway in KPN likely to deliver on the ambition to be the best service company in the Netherlands? Is this strategy (to be a service leader) clearly defined, consistently and effectively deployed throughout the organisation? On site in the Hague, you will have the opportunity to interview a wide variety of managers, representing all the functions relevant to the strategy of the Business Market and in particular those who can provide a perspective on how the organisation aims to make breakthrough performance in customer service. Your key senior management contacts will be John van Vianen CEO of Business Market and Annelore Buijs, who heads the largest unit within Business Market, Customer Service and Operations. Prior to arriving in the Hague EFQM will have organised a site visit and interview schedule, based on the focus and priorities agreed at the initial session in Brussels.
You will have the opportunity to engage with senior managers of KPN-Business Market at the end of the four day assignment in the Hague. Going beyond the traditional feedback of and EFQM assessment, the team will lead participants from KPN through a workshop during which the first steps to deploy your recommendations will be agreed. Your feedback will include recommendations for â€˜quick winsâ€™ as well as more fundamental change. In doing so you will be following in good footsteps: in March 2007 an earlier Pegasus team worked with the forerunner to the Customer Service and Operations team, helping them on their path to success.
In the last 4 years, the programme has been run in 13 different organisations, including Solvay, Volvo Cars, Lloyds Banking Group, T-Systems Multi-Media Solutions, Grundfos, Robert Bosch, Siemens Congleton in addition to an earlier programme also at KPN. Excellent and innovative program bringing inputs from Best in Class companies that will help to support our road to Excellence. Special mention to the win-win situation installed in this program with Peer Assist session bringing value for the host. Olivier Campy, Vice President, Sanden Manufacturing Europe I thought it was an excellent programme…Especially valuable with Pegasus is the contact with the host organisation: you get to know whether your recommendations are valuable or not – something that is not possible from classroom case studies alone. Mark Finnie, Group Marketing Director, Strix
For more information or registration, please contact us via e-mail (Pegasus@efqm.org) or via telephone (+32 2 775 3511). The price for this 2 week programme is € 5000 for member organisations and € 7000 for non-affiliated companies.
©EFQM 2011 EFQM Avenue des Olympiades 2 B-1140 Brussels – Belgium Tel : +32 2 775 3511 Fax : +32 2 775 3535 Email : email@example.com http://www.efqm.org
An overview of the KPN case as part of EFQM's Pegasus Programme