Convincing senior management of the effectiveness of a company-wide telecom expense management program is critical to the success of that program. The benefits of TEM extend beyond cost-savings by leveraging telecom assets, according to industry experts.

 

However, according to a recent AOTMP research study, “Generating Internal Support for Telecom Expense Management,” a lack of support by “key stakeholders” is a documented reason behind the failure of well-constructed TEM programs soon after implementation.

 

“It is critical that enterprises place a priority on gaining internal support before the initiation of the program in order to establish and the opportunity for success,” said Timothy C. Colwell, vice president of knowledge operations at AOTMP. “Establishing a TEM program requires support and vision enabled sustainable value. An enterprise must understand that TEM programs go beyond saving money; they leverage telecom assets to drive growth, profitability and competitive advantage.”

 

Telecom lifecycle management providers – such as Cincinnati-based Spectrum, Inc. (News - Alert) – can manage the complete telecom lifecycle, from benchmarking current services, service order management, asset management and expense management, invoice visibility and auditing, to customized analytical reporting of all wireless and wireline services.

 

According to the AOTMP study, a majority of enterprises indicated that outlining the objectives, goals and requirements for TEM is an effective first step when attempting to obtain internal support.

 

This ultimately demonstrates a clear understanding and vision for program implementation – as well as business value for the organization – by those responsible. Based on the AOTMP research, 69 percent of enterprises documented their objectives, goals and requirements when establishing a TEM program, leaving 31 percent who did not take this step or were unsure if this was completed.

 

Medium and large enterprises are predominately the companies adopting TEM today because of the large number of users and services they need to support, according to Gartner’s (News - Alert) Phillip Redman, vice president, network services and infrastructure, mobile and wireless.

 

“I continue to believe as more companies look to outsource services that telecom expense management will be one of the main areas they will continue to adopt,” Redman said.

 

Gaining internal support for any TEM initiative is a critical activity to perform well before actual implementation, according to Scott Lawrence, director of research at AOTMP. “Activities such as conducting an initial needs assessment, and compiling a sound and comprehensive business case, increase the likelihood that TEM will become an effective cornerstone of the organization for years to come.”

 

The report outlines three key best practices to follow when securing executive buy-in for TEM programs:

 

·         Perform a needs assessment that ensures objectives align with overall company strategy.

·         Develop a business case that includes developing the anticipated hard-dollar ROI while identifying process and operational savings.

·         Sell the business case to key stakeholders with direct control over the livelihood of the TEM program