You are on page 1of 32

Communications _ Telecommunica

Full Process Report

Org Unit: Communications _ Telecommunica - Mega


Process: Direct and Guide the Organization

External Factors

Long-term strategic plan that leverages the core


competencies of the organization and its employees
Ability to maintain robust capital structure in order to
obtain sufficient financing at acceptable rates to support
initiatives and strategies
Management of resources to maximize return on
stakeholder investment given capital needs of business
Effective relationships with regulators

Org Unit: Communications _ Telecommunica - Major


Process: Provide Governance

Purpose

Owner and Description

Beginning and End


Inputs and Outputs
Key Performance Indicators
Risks and Controls
Company has excessive levels of operational and
business risk
Company does not identify risks until crisis
ASC Normative Controls

Identify and define business and operational risks and


identify appropriate methods of minimizing risk within the
organization as well as the risk of the stakeholder
Description: Total quality management; Focus on core
business competencies; niches; Use of leading edge
technologies and best practice business processes;
Manage insurance risks; Manage legal exposures
Beginning: Continuous
Ending: Continuous
Inputs: Continuos gathering of business intelligence
Outputs: Risk profile
N/A

NEW CONTROL
Monitoring of outside counsel and coordination with inside
counsel

Org Unit: Communications _ Telecommunica - Major


Process: Strategic Planning

Purpose
Owner and Description

Beginning and End


Inputs and Outputs

Key Performance Indicators


Risks and Controls

Set both short and long-term objectives for the


organization and its position within the marketplace
Description: Develop Company goals; Determine
strategic position and direction of Company through a
thorough understanding of its strengths and weaknesses,
and the opportunities and threats of the industry;
Document conclusions in business plan or....
(Cont'd)... other strategic operating document; Maintain
and update plan for significant changes in industry /
company
Beginning: Identify strategic "vision" for the company
Ending: Develop strategic goals and plan
Inputs: Industry data, competitive market analysis,
financial condition of company, Company mission, Board
of Directors philosophy and directions
Outputs: Strategic goals and plan
N/A

1
02/13/2015

Full Process Report

Communications _ Telecommunica
Failure to align Company strategic plan with
Company goals and objectives
Choose wrong strategy
Failure to execute strategies
ASC Normative Controls

Monitoring of actual vs. budget and summary for Board


meetings
Monitoring of corporate position in industry

Org Unit: Communications _ Telecommunica - Major


Process: Manage Stakeholder Communications

Purpose

Owner and Description

Beginning and End


Inputs and Outputs

Key Performance Indicators


Risks and Controls
Dissatisfied stakeholders
Decreased market value of stock and products /
services offerings
ASC Normative Controls

Determine communication methods and messages to


address stakeholder needs, (needs of employees,
shareholders, lenders board of directors and others)
Description: Communication with Industry analysts; Press
releases; Articles in industry and other business
magazines; Shareholders' telecommunications including
ARS, Quarterly Reports, Proxy, etc.); Communications
with community; Communications with....
(Cont'd).... employees
Beginning: Continuos
Ending: Continuous
Inputs: Corporate culture and mission, goals strategies
and operating results
Outputs: Corporate message
N/A

Executive (including Board) review prior to release

Org Unit: Communications _ Telecommunica - Major


Process: Budgeting, Costing and Capital Spending

Purpose
Owner and Description
Beginning and End
Inputs and Outputs

Key Performance Indicators

Risks and Controls


Inability to grow the Company
Unable to meet market needs

Initiate, develop and maintain appropriate business


relationships
Description: Cultivate and manage relationships with
suppliers, customers, partners and regulators
Beginning: Company strategy
Ending: Valuable business relationship
Inputs: Company goals and strategy, industry data and
statistics and trends
Outputs: New relationships or strategic alliance, strategy
to acquire a new business or divest an existing asset
Number of new customers
New customer sales / total sales
Success rate / ventures
Development expense / revenue

NEW CONTROL

2
02/13/2015

Full Process Report

Communications _ Telecommunica
ASC Normative Controls

N/A

Org Unit: Communications _ Telecommunica - Major


Process: Manage Alliance, Partnerships and Joint
Ventures

Purpose
Owner and Description

Beginning and End


Inputs and Outputs

Key Performance Indicators


Risks and Controls
Unfavorable regulatory and legislative
developments
ASC Normative Controls

Establish regulatory and legislative objectives


Description: Communication with regulators and
legislators; Respond to proposed regulations and laws;
Maintain relationships with lobbyists; Involvement with
consensus building position; Monitor regulatory and
legislative environments
Beginning: Continuous
Ending: Continuos
Inputs: Draft legislation, regulatory orders, corporate
strategy
Outputs: Position papers, strategic alliances
N/A

Oversight by Board of Directors


Senior Management involvement

Org Unit: Communications _ Telecommunica - Mega


Process: Product Development

External Factors

Stakeholder Influences

Critical Success Factors

More network intensive data applications


Cellular vs. Personal Communication Systems (PCS)
The Internet and home working trends
Enhanced call features
Changes in network technology
Product differentiation
Social and demographic changes
Key competitors - new products/services offered
Customers - demand for new and existing
products/services offerings
Vendors - services and materials offered, prices
Employees - product concept/design abilities
Regulators - existing and proposed regulation
Introduce the right products
Investment in leading edge technology
Simplifying the effect on change on customers
Fast introduction of new products
Prediction of product technologies
Adequate capital to fund

Org Unit: Communications _ Telecommunica - Major


Process: Identify Products/Services Offerings Ideas

Purpose

Research and identify new products / services offerings

3
02/13/2015

Communications _ Telecommunica
Owner and Description

Beginning and End


Inputs and Outputs

Key Performance Indicators

Risks and Controls


Inaccurate market assessment results in wrong
products / services offerings ideas
Poor coordination with other departments results in
duplication of effort
Few new products / services offerings ideas
generated
Products / services offerings ideas not aligned with
Company strategy or capabilities
Competitors reach market first (time to market)
No market assessment done related to product
development
ASC Normative Controls

Full Process Report


Description: Conduct market research to identify
customer needs; Translate customer needs into creative
product ideas; Align such ideas with the Company
marketing strategy and filter ideas into a plan for
products / services offerings
Beginning: Customer assessment
Ending: Product ideas
Inputs: Corporate strategy, results of market research
studies (consider customers and competitors)
assessments of market receptiveness to new products /
services offerings and market loyalty to competing
products/service offerings, existing products....
(Cont'd)..../ services offerings lines
Outputs: Initial products / services offerings concepts,
market study results
Market share trends
Sales trends
Comparison of forecast to actual demand
Time to market
Number of products / services offerings ideas generated
Number of new products /services offerings developed
compared to number of new products / services offerings
ideas
Management review of market assessment and approval
of products / services offerings concepts

Management review of forecasted demand assumptions

Management review of market assessment and approval


of products / services offerings concepts
Management review of forecasted demand assumptions

Org Unit: Communications _ Telecommunica - Major


Process: Translate Products/Services Ideas Into New
Products/Service Offerings Packages

Purpose

Owner and Description

Beginning and End

Ensure that the new products / services offerings are


consistent with the Company's other product/services
offerings and supportable
Description: Ensure new products / services offerings fit
with the Company's family of products/services offerings
and capabilities; Prioritize new products/services offerings
packages; Determine feasibility, cost, initial pricing and
expected demand....
(Cont'd)....of products / services offerings; Develop initial
products / services offerings specification
Beginning: Product ideas

4
02/13/2015

Communications _ Telecommunica

Inputs and Outputs

Key Performance Indicators

Risks and Controls


Unable to translate products / services offerings
ideas to new products / services offerings
packages
Products / services developed are not aligned to
company strategy or capabilities
Inaccurate market assessment result in wrong
products / services offerings
Market and products / services offerings
leadership lost to competition
Competitors reach market first (time to market)
Brand recognition and market share decrease
Inaccurate or incomplete cost benefit analysis
results in products/services being accepted or
rejected in approprately.
ASC Normative Controls

Full Process Report


Ending: Initial products / services offerings design
specifications
Inputs: Initial products / services offerings concept,
market study results and existing infrastructure (network
equipment)
Outputs: Business Case (demand and costing estimates),
initial products/services offerings design specifications,
network specifications, initial feasibility study, initial pricing
and network requirements
Mean time between products / services offerings
introductions
Time to market
Product development costs as % revenue
Number of new products / services offerings developed
compared to number of new products / offerings services
ideas
Number of new products / services offerings that are
innovative in marketplace
Management's review of forecasted demand consumption

Management review of market assessment and approval


of products / services offerings concepts
Management review of revenue projections and cost
estimates

Management review of forecasted demand assumptions


Management review of market assessment and approval
of products / services offerings specifications
Management review of revenue projections and cost
estimates

Org Unit: Communications _ Telecommunica - Major


Process: Develop Products/Services Offerings and
Update Systems and Processes

Purpose
Owner and Description

Design specifications of new products / services offerings


Description: Interact and coordinate products / service
offerings design with network, marketing, customer service
and system groups; Create the detail design and
specifications to introduce new products/services
offerings; Create and test prototype....
(Cont'd)....products / services offerings; Finalize product
specifications; Determine what processed need to be
updated (Operational Support Systems (OSS) and Backoffice Support Systems (BSS)).......

5
02/13/2015

Communications _ Telecommunica

Beginning and End

Inputs and Outputs

Key Performance Indicators

Full Process Report


(Cont'd)....Update existing network and systems software
for new requirements; Test product delivery and systems
software
Beginning: Initial products / services offerings design
specifications
Ending: New products / services offerings added to
company's products / services offerings portfolio
Inputs: Business Case Plan (market forecasts, initial
pricing, cost estimates), initial products / services offerings
design specifications, initial network specifications,
feasibility study
Outputs: Final network specifications, product / services
offerings available for delivery
Time between concept and products / services offerings
delivery
Mean time between products / service offerings
introductions
Time to market
Number of products / services offerings introductions that
are innovative in market
% of revenues generated by new product / services
offerings
Customer acceptance / satisfaction statistics
Number of new products / services developed compared
to number of new products / services offerings ideas
Market share trends

Risks and Controls


New products / services offerings not competitively Management's review of KPIs
priced
Market and products / services offerings
Management's review of network requirements plan
leadership lost to competition
Competitors reach market first (time to market)
Create formal products / services offerings development
plan
New products / services offerings not accepted by Management's approval and monitoring of
marketplace
products/services offerings development plan
New products / services offerings do not match
network capabilities
ASC Normative Controls
Management's review of KPIs
Management's review of network requirements plan
Create formal products / services offerings development
plan
Management's approval and monitoring of
products/services offerings development plan
Org Unit: Communications _ Telecommunica - Mega
Process: Business Development

External Factors

Demand for bundled products


Growth in lower-to-middle business market
Increasing business demand for data transmission
Pricing and other activities by competition
Social and demographic changes

6
02/13/2015

Communications _ Telecommunica

Stakeholder Influences

Critical Success Factors

Full Process Report


Regulation - access charge reforms under 1996 Telecom
Act
Customers - needs and expectations
Key competitors-product/services offerings, prices,
marketing programs
Sales force - telecommunications and negotiation abilities
Vendors - services and materials offered, prices
Regulators - existing and proposed regulation
Effective sales channels
Simplifying the effect on change on customers
Solid partnerships
Ability to offer seamless services
Ability to retain customers

Org Unit: Communications _ Telecommunica - Major


Process: Develop Marketing Strategies

Purpose

Create / maintain demand for products / services offerings

Owner and Description

Description: Consider network capabilities and products /


services offerings; Develop product plan; Identify target
markets for broad market research; Review regulatory
guidelines regarding product offerings and pricing;
Establish profitability....
(Cont'd).... and market share goals; Develop
communication plan and select marketing media (e.g.,
television, magazines, trade shows, Internet, newspapers)
to create brand recognition; Understand capabilities of
sales support organization; Ongoing.....
(Cont'd).... analysis
Beginning: Receipt of products / services portfolio
(including existing and new)
Ending: Marketing plans to achieve goals considering
audience promotional message and product image,
pricing guidelines
Inputs: Network capabilities report, market analysis
including approved pricing, competitor analysis, historical
product profitability data and other demand sensitivities
Outputs: Marketing plans, sales forecasts linked to
corporate forecasts and budgets
Sales growth %
Sales per employee
Market share trends
Number of access lines services
Domestic / international sales
Brand recognition
Customer retention
Acquisitions costs per customer

Beginning and End

Inputs and Outputs

Key Performance Indicators

Risks and Controls


Brand recognition and market share decrease

Management approval and monitoring of marketing plan


and Focus groups

7
02/13/2015

Full Process Report

Communications _ Telecommunica
Pricing decisions are not optimal, resulting in lost
sales or lower profits
Marketing plan does not meet regulatory
guidelines
ASC Normative Controls

Market research

Management approval and monitoring of marketing plan


Focus groups
Market research

Org Unit: Communications _ Telecommunica - Major


Process: Develop Sales Strategies

Purpose
Owner and Description

Beginning and End

Inputs and Outputs

Key Performance Indicators

Risks and Controls


Sales effort unable to reach new customers in
target market
Sales effort does not sell new products / services
offerings to existing customers
Lack of customer database leads to incorrect
market targeting
ASC Normative Controls

Develop tactical plans to meet or exceed market share,


growth and profitability objectives
Description: Consider network capabilities distribution
network, sales compensation and administrative support;
Align marketing plan with sales plan, sales channel and
sales resources; Establish / maintain sales lead sources;
Communicate sales.....
(Cont'd)....strategy to sales force; Training of sales force
on product offerings; Identify vehicle to sell (i.e.,
telemarketing, outsource); Extend brand into new
channels and markets; Effectively manage customer
database. On going analysis.
Beginning: Receipt of marketing plans
Ending: Identify sales plans and deployment of sales
resources
Inputs: Marketing plans, product release timetable, sales
infrastructure support, compensation programs
Outputs: Sales plans, adequate infrastructure support
and trained resources
Brand recognition
Operating margin growth
Sales growth %
Sales per employee
Market share trends
Number of access lines served
Domestic / international sales
Network utilization
Customer retention
Focus groups
Market research
Management's approval and monitoring of sales plan
Focus groups
Market research
Management approval and monitoring of sales plan

Org Unit: Communications _ Telecommunica - Major


Process: Customers Acquisition

Purpose

Add profitable customers to increase market share

8
02/13/2015

Full Process Report

Communications _ Telecommunica
Owner and Description

Beginning and End

Inputs and Outputs

Key Performance Indicators

Risks and Controls


Lack of customer database leads to incorrect
market targeting
Products / services offerings not communicated
effectively
Non-creditworthy customers accepted, resulting in
write-offs
Sales efforts does not result in incremental
business
Lack of coordination with other processes results
in the ability to handle the volume of customer
acquisitions.
ASC Normative Controls

Description: Identify sales leads; Qualify the sales lead


that has been established; Contact and qualify prospects;
Discuss / propose - "sell" product via telemarketing and
direct calls; Promote benefits by educating customers
and prospects....
(Cont'd).... regarding company products / services
offerings; Develop customized products / services
offerings as required (obtain appropriate approvals)
Beginning: Receipt of sales plans
Ending: Identify sales plans and deployment of sales
resources
Inputs: Marketing plans, sales plans, sales leads,
promotional message, product timing literature, inquiries,
performance feedback
Outputs: Close of sales
Sales growth %
Sales per employee
Market share trends
Number of access lines served
Domestic / international sales
Network utilization
Acquisition costs per customer
Management's review of KPIs

Telemarketing - third party


Credit granting procedures

Management monitoring of KPIs


Telemarketing - third party
Credit granting procedures

Org Unit: Communications _ Telecommunica - Major


Process: Order entry

Purpose
Owner and Description

Beginning and End

Inputs and Outputs

Accept customer order


Description: Obtain order from customers, including
relevant billing information, credit history and service
requirements; Capture relevant order information in
systems and develop customer service and service
delivery
Beginning: Customer order
Ending: Notification to customer service and service
delivery of service activation
Inputs: Customer requirements, customer information,
availability of products / services offerings, services team
schedules

9
02/13/2015

Full Process Report

Communications _ Telecommunica

Key Performance Indicators

Risks and Controls


Non-creditworthy customers accepted, resulting in
write-offs
Too many order entry errors results in excessive
activation costs
Too few orders processed results in excessive
activation costs
ASC Normative Controls

Outputs: Service activation requirements, customer


information
Number of orders processed with errors
Number of orders processed per CSR
Activation costs
Customer satisfaction statistics
Management's review of KPIs
Focus groups
Customer surveys
Management's review of KPIs
Focus groups
Customer surveys

Org Unit: Communications _ Telecommunica - Major


Process: Customer Retention

Purpose
Owner and Description

Beginning and End


Inputs and Outputs

Key Performance Indicators

Risks and Controls


Reduced revenues due to high customer attrition
rate
Increased sales and marketing costs
Target wrong groups due to ineffective customer
database management
Ineffective programs
Inability to accurately estimate liability associated
with program
Programs not cost effective
ASC Normative Controls

Ensure customer satisfaction and loyalty


Description: Develop stratagies to improve customer
retention. Identify "at risk" customers and "high-end users"
and the best package to retain customers; Develop
affinity programs and other.......
(Con't)......incentive programs; Operate such programs
effectively and efficiently
Beginning: Identification of target customers
Ending: Loyal customers
Inputs: Customer list, customer satisfaction surveys,
calling patterns, billing history, deactivation list
Outputs: Customer retention statistics, new products /
services offerings ideas, loyal customers, customers
participating in incentive programs
Customer turnover rate
Market share trends
Tenure of customers
Affinity program cost
Acquisition cost per customer
Management's review of customer turnover rates
Management's review of market share trends
Management oversight of programs include business case
and actual cost

Management's review of customer turnover rate


Management's review of market share trends

10
02/13/2015

Full Process Report

Communications _ Telecommunica

Management oversight of programs include business case


and actual cost
Org Unit: Communications _ Telecommunica - Mega
Process: Network Planning, Engineering and Build
out

External Factors

Stakeholder Influences

Critical Success Factors

Marketplace geographic factors


Changes in network technology
Facilitate network access by other carriers
Changing service demand patterns alters demand on
network
Customers - demand for reliable network
Employees - implementation and network building abilities
Regulators - existing and proposed regulation
Strong network capacity planning
Maintaining reliable network
Investment in leading edge technology
Adequate capital to fund network

Org Unit: Communications _ Telecommunica - Major


Process: Plan Network

Purpose
Owner and Description

Beginning and End


Inputs and Outputs

Key Performance Indicators

Risks and Controls


Network capacity / capabilities not sufficient to
ensure recovery of a call in the event of a service
disruption
Network capacity / capabilities not sufficient to
meet demand for existing products / services
offerings
Network capacity / capabilities not sufficient to
service new products / services offerings

Ensure appropriate capacity and capability


Description: Evaluate existing capacity / capability vs.
usage / forecasted usage (consider new products /
services offerings and markets and assess the regulatory
environment); Develop resource and technology
requirements forecasts; Design network....
(Cont'd).... and enhancements (redundancy); Prepare
network capacity / capability plan and budget
Beginning: Analysis of existing network architecture
Ending: Network capacity / capability plan
Inputs: Business demand forecasts, existing network
architecture, current and future products / services
offerings, proposed network changes and new technology
offerings
Outputs: Network capacity / capability plan, network
specifications and budget
Actual network capacity utilization compare to design
phase projections
Operating margins
Network downtime
Network operating costs
Time to restore network
Management review of KPIs

Management's review of products / services offerings and


marketing plan to ensure congruence with network
capacity / capability plan
Management's review of emerging technologies to ensure
network remains competitive

11
02/13/2015

Full Process Report

Communications _ Telecommunica
Unreliable forecasts from marketing result in
insufficient / excess network capacity
Network technology not reliable
Network design not cost effective
ASC Normative Controls

Management's review of KPIs


Management's review of products / services offerings and
marketing plan to ensure congruence with network
capacity / capability plan
Management's review of emerging technologies to ensure
network remains competitive

Org Unit: Communications _ Telecommunica - Major


Process: Build Network

Purpose
Owner and Description

Beginning and End


Inputs and Outputs

Key Performance Indicators

Risks and Controls


Inappropriate network design results in loss of call
detail records and lost revenues
Increased rework of network design and / or
configuration results in reduced profits and / or
competitiveness
Inefficient network configuration leads to
suboptimal use of resources
Failure to meet customer needs, resulting in
customer dissatisfaction and loss of customers
ASC Normative Controls

Implement the network plan


Description: Select locations; Obtain permits / approvals
from appropriate third parties; Secure and schedule cost
effective vendors / equipment / people; Build network
and / or implement network enhancements; Test network
and / or enhancements; .....
Maintenance of fixed asset records
Beginning: Network capacity / capability plan
Ending: Revised functioning network
Inputs: Network capacity / capability plan, network
specifications and budget, vendor quotes permits and
approvals
Outputs: Functioning network
Actual cost vs. budgeted cost of network or
enhancements
Time from project initiation to delivery
Number of change orders
Actual network performance vs. planned performance
Network capacity utilization
Project milestone statistics
Management's review of KPIs

Management's review of project status and approval at


key project milestones Testing

Management's review of KPIs


Management's review of project status and approval at
key project milestones
Testing

Org Unit: Communications _ Telecommunica - Major


Process: Secure the Network

Purpose

Ensure physical and logical access security of network

12
02/13/2015

Full Process Report

Communications _ Telecommunica
Owner and Description

Beginning and End


Inputs and Outputs

Key Performance Indicators

Risks and Controls


Unauthorized access can result in utilization of
resources without compensation
Unauthorized access or physical damage to
network leads to loss or reduction of service
ASC Normative Controls

Description: Design and implement at plan to ensure


physical security of network; Design and implement a plan
to ensure only authorized access to network (including
prevention and detection of fraud); Monitor network
activity
Beginning: Network specifications
Ending: Secure network
Inputs: Network specifications, security requirements,
network security budget
Outputs: Network security of architecture, reports of
security breaches, plan to deal with security breaches,
secure network
Number of security breaches
Cost of security features / monitoring
Time to resolve security breaches
Formal network security plan
Management's approval and monitoring of network
security plan
Formal network security plan
Management's approval and monitoring of network
security plan
Managements review of KPIs

Org Unit: Communications _ Telecommunica - Major


Process: Operate and Maintain the Network

Purpose
Owner and Description

Beginning and End


Inputs and Outputs

Key Performance Indicators

Risks and Controls


Suboptimal network performance leads to higher
operating costs
Service quality problems can result in customer
dissatisfaction and lower retention

Optimize network performance


Description: Monitor network performance to ensure
continuous optimum use of network resources;
Communicate results and identify areas requiring
attention; Perform periodic maintenance; Perform network
fixes as required
Beginning: Functioning network
Ending: Optimally operating network
Inputs: Network design specifications, usage forecast,
products / services offerings, customer complaints
Outputs: Network performance reports; Repairs to
network, proposed network changes; optimally operating
network
Fault tolerance within acceptable levels
Network capacity utilization
Number of customer complaints
Network service expense
Time to restore network
Ratio of network service costs to development costs
Management's review of KPIs
Develop formal routine network maintenance program

13
02/13/2015

Communications _ Telecommunica
ASC Normative Controls

Full Process Report


Management's review of KPIs
Develop formal routine network maintenance program
Management's approval and monitoring of routine network
maintenance program

Org Unit: Communications _ Telecommunica - Mega


Process: Service Delivery

External Factors

Stakeholder Influences

Critical Success Factors

Regulation - access charge reforms under 1996 Telecom


Act
Customer expectations
Customers - satisfaction with service
Key competitors - service levels
Employees - ability to manage network
Regulators - quality of service delivery, network access for
competitors
Simplifying the effect on change on customers
Cost-effective customer service

Org Unit: Communications _ Telecommunica - Major


Process: Order Provisioning

Purpose
Owner and Description

Beginning and End

Inputs and Outputs

Key Performance Indicators

Risks and Controls


Failure to provide proper privileges to customers
resulting in dissatisfaction
Network capacity / capabilities not sufficient to
meet demand for products / services offerings
ASC Normative Controls

Establishes customer's rights and privileges within the


network
Description: Enter customer service levels into network;
Provide timely customer access to network according to
their service level agreement; Perform on-site service
installation; Notification to customer service and billing
Beginning: Accepted orders and customer service
activation / deactivation request
Ending: Customer access to network service level
agreement
Inputs: Accepted orders and customer service activation /
deactivation request
Outputs: Network access for customers, network access
reports, notification to billing and customer service,
technological authorization of service
Number of change orders
Number of deviations between customer rights / privileges
provided
Trouble tickets statistics
Quality survey
Order set-up time
% of orders activated within targeted time

Management's review of KPIs


Only approved customer orders allowed network access
Comparison of customer orders to allowed level of
customer rights / privileges
Review of trouble tickets

14
02/13/2015

Full Process Report

Communications _ Telecommunica
Org Unit: Communications _ Telecommunica - Major
Process: Service Activation/Delivery

Key Performance Indicators

Risks and Controls


Failure to provide proper privileges to customers
resulting in dissatisfaction
Network capacity/ capabilities not sufficient to
meet demand for products/services offerings

Number of change orders


Trouble tickets statistics
Quality survey
Order-set-up time
% of orders activated within targeted time
Number of dispatches per order
Management review of KPIs
Only Approved customer orders allowed network access
Comparison of customer orders to allowed level of
customer rights/privileges
review of trouble tickets

Org Unit: Communications _ Telecommunica - Major


Process: Traffic Management

Key Performance Indicators

Risks and Controls


Innapropriate network changes results in loss of
call detail records and lost revenues
Network failure
Misdirected calls
Network capacity/ capabilities not sufficient to
service products/ service offerings
Total calls billed vs. total calls sent across the
network
Time to restore lost calls and/ or network

Actual costs vs. budget cost of network service


Actual network performance vs. planned performance
Network capacity utilization
Total calls billed vs. total calls sent across network
Time to restore lost call and/ or network
Management's review of KPIs
Quality review with customer
Quality review with customer
Up-time statistics

Org Unit: Communications _ Telecommunica - Major


Process: Dispatch Services

Purpose
Owner and Description

Beginning and End


Inputs and Outputs
Key Performance Indicators

Execution of telephone calls and other network service


offerings
Description: Establish and maintain protocols to execute
telephone calls and other network services; Establish and
maintain protocol to record transaction details and transfer
details to invoicing process; Purchase access from and /
or sell access.....
(Cont'd).... to local network
Beginning: Customer initialization of service
Ending: Detail record of transaction
Inputs: Technological authorization of service
Outputs: Call / service detail record
Actual costs vs. budget cost of network service
Actual network performance vs. planned performance

15
02/13/2015

Full Process Report

Communications _ Telecommunica

Network capacity utilization


Total calls billed vs. total calls sent across the network
Time to restore lost call and / or network
Risks and Controls
Inappropriate network changes results in loss of
call detail records and lost revenues
Network failure
Misdirected calls
Network capacity / capabilities not sufficient to
service products / services offerings
Total calls billed vs. total calls sent across the
network
Time to restore lost calls and / or network
ASC Normative Controls

Management's review of KPIs


Quality review with customer
Up-time statistics

Org Unit: Communications _ Telecommunica - Mega


Process: Customer Relationship Management

External Factors

Stakeholder Influences

Critical Success Factors

Regulation - access charge reforms under 1996 Telecom


Act
Customer expectations
Level of service provided by competition
Customers - satisfaction with service
Key competitors - service levels
Employees - ability to provide quality service
Regulators - existing and proposed regulation
Cost-effective customer service

Org Unit: Communications _ Telecommunica - Major


Process: Billing

Purpose
Owner and Description

Beginning and End


Inputs and Outputs

Key Performance Indicators

Bill customer and record sales


Description: Message processing which includes:
receiving, validating and editing call detail records (CDRs);
Calculate invoices which includes: input and maintenance
of rate and discount tables, matching CDRs with customer
info., obtaining data.....
(Cont'd).... related to monthly recurring charges, billing
adjustments and errors; Posting Sales / A/R data to
ledger, sub-ledger and system databases. The treatment
and escheat policies and procedures are approprately
applied. Send invoice
Beginning: Identify customers to be billed
Ending: Invoicing and posting transactions
Inputs: Customer information, service activation /
deactivation documents, calls / service detail records, nonusage data, rate tables, discount tables
Outputs: Invoice, postings to accounting records
Service activation vs. invoice date
Invoice processing time
Invoice errors rate

16
02/13/2015

Communications _ Telecommunica

Full Process Report


Number or amount of credit memos
Total service - billed vs. total services provided
Service activity levels
Number of customer complaints
Bill accuracy (complaints and adjustments per 1,000 bills)
Cost comparators (average cost of producing a manual bill
divided ny manually billed revenue, and similar for
automated billing)

Risks and Controls


Cash flow problems due to inefficient invoicing
Service activity reports
practices
Inaccurate invoicing can lead to higher
A/R reconciled to G/L
administrative costs and customer dissatisfaction
Billing process not aligned with product
development process leads to billing errors
Approprate Edit Tables have been established and
maintained.
Customers not billed because
information/processes have been coordinated.
(i.e., standing data on calls may be inaccurate
resulting in lost revenue.
Inapproprate treatment (escheat) procedures
applied.
Bills may not meet the specified customer
requirements (i.e., changes) and may result in
additional costs.
Rate and billing tables are inaccurate and
incomplete
ASC Normative Controls
Service activity reports
A/R reconciled to G/L
Management review of KPI
Edit reoprts are created and managed.
Balancing and edit routines.
Billing verificaton prior to invoice release
Audit rating tables
Conduct call testing focused on exercising table integrity
Monitor front-end billing errors
Strong effective change control policies and procedures
Approprate security practices have been implemented and
maintained
Approprate IT controls in place to ensure the reliability and
availability of systems
Org Unit: Communications _ Telecommunica - Major
Process: Customer Care

Purpose
Owner and Description

Beginning and End

Provide responsive service


Description: Assist with customer questions or
complaints; Develop appropriate solution; Update network
service records - statistics
Beginning: Contact with customer

17
02/13/2015

Full Process Report

Communications _ Telecommunica
Inputs and Outputs

Key Performance Indicators

Ending: Request has been resolved


Inputs: Customer service activation records, customer
questions / complaints, products / services offerings
specifications, pricing and customer history
Outputs: Issue resolution, updated network service
records and statistics, invoicing adjustment, updated
customer history
Management's review of KPIs
Customer retention statistics
Customer turnover rate
Number of all call backs
Number of call drops
Average answer/wait time (time before pick-up)
Customer satisfaction statistics
Number of credits issued and average adjustment per call
Speed of complaint resolution
Cost / transaction
Training Hours per employee
Daily calls completed by Customer Rep
Number of calls on first contact resolution

Risks and Controls


Unresolved customer questions and complaints
can lead to customer dissatisfaction and lower
retention and lost revenue
Adjustment / credit given when not valid
Unprofessional service leads to poor reputation

Focus groups

Appropriate training courses developed and followed


Limits on discretion of credits / adjustments that may be
issued
Management review of key metrics / statistics
Monitoring and coaching and related customer feedback
and complaints

Too much time spent on calls - customer complaint


resolution not efficient
CSRs not knowledgeable about customer
concerns or company procedures
CSRs not able to access information
Conduct call testing focused on exercising table integrity.
systems/customer files quickly
ASC Normative Controls
Use of focus groups
Limits on discretion of credits / adjustments that may be
issued
Management review of key metrics / statistics
Monitoring and coaching and related feedback related to
customer complaints and adjustments
Ongoing remote monitoring of calls
Approprate training cources developed and followed
Org Unit: Communications _ Telecommunica - Major
Process: Customer Termination

Purpose

Conclude or change relationship with the customer

18
02/13/2015

Communications _ Telecommunica
Owner and Description

Beginning and End

Inputs and Outputs

Key Performance Indicators

Full Process Report


Deccription: Terminate service on date requested by
customer. Retire products/sercives offerings in
accordance with company schedule. Manage transition of
products/services offerings. Monitor promotional coverage
of new products/services......
(cont'd)......offerings and effect on existing products.
Beginning: Customer request for deactivation request,
products / services offerings plans
Ending: Discontinuance of customer relationship or
retirement of products / services offerings
Inputs: Customer deactivation request, products /
services offerings plan
Outputs: Notification of products / services offerings
termination
Number of customer complaints
Bad debt write-offs
Administrative cost/transaction
Escheat percentages is indirectly related to bad debt

Risks and Controls


Service cut off not matched to final billing date can Similar controls related to activation should be applied.
lead to lost revenue.
Inapproprate handling of customer realignment,
customer deactivation, product retirement can lead
to customer dissatisfactioon and lower retention
Wrongful termination of products or services
leading to customer dissatisfaction and revenue
loss
Inaccurate audit trail of customer service leads to
inability to provide effective customer service
Org Unit: Communications _ Telecommunica - Major
Process: Bill Presentment

Owner and Description

Key Performance Indicators


Risks and Controls
Bills are not processed in a timely manner

Bill presentment includes the processes and systems for


printing the bill as calculated and in accordance with the
approprate billing cycles. This does include
distributing/mailing of invoices.
Bill delays measured in days
Number of bill reruns
Billing cycles are automated with approprate controls to
identify delays

Physical access to invoice printing is inadequate


Org Unit: Communications _ Telecommunica - Major
Process: Trouble Administration

Key Performance Indicators

Recovery times
Fault ratios (per 100 lines, per 100 customer sites, per
product, minutes of outage per circut)
Percentage of faults resolved within SLA
Number of calls on first contact resolution
Daily calls completed by Customer Service Rep
Number of all call backs

19
02/13/2015

Communications _ Telecommunica

Full Process Report


Time of resolution measured by priority

Risks and Controls


Business may be lost through inadequate
handeling of enquiries/faults/complaints
Issue resolution may not be cost effective,
reducing profit margins
Customer may be unable to contactcall center in
event of a systems/network failure resulting in lost
customers
Customer reps may spend an inapproprate time
on call resolution, reducing profit margins
ASC Normative Controls

Reports on complaints and root cause analysis


Manager review of complaints handling time
Reports on complaints and root cause analysis

Manager review of complaints handling time


Problem resolution tracking is in place and is monitored.
Reports on complaints and root cause analysis
Manager review of complaints handling time
Problem resolution tracking is in place and is monitored by
management

Org Unit: Communications _ Telecommunica - Mega


Process: Support The Organization

External Factors

Long-term strategic plan that leverages the core


competencies of the organization and its employees
Ability to maintain robust capital structure in order to
obtain sufficient financing at acceptable rates to support
initiatives and strategies
Management of resources to maximize return on
stakeholder investment given capital needs of business
Effective relationships with regulators

Org Unit: Communications _ Telecommunica - Major


Process: Manage Regulatory and Legal Matters

Key Performance Indicators

Optimize legal expenses based on business value added:


Legal expenses as % of premium, litigation liability vs.
budgeted, regulatory fines, aging of regulatory fines,
gains/losses from litigation
Dollar losses associated with litigation
Number of sales contracts brought to any form of litigation
in comparison to the total population of sales contracts in
a year

Risks and Controls


Cultural issues and post merger integration of new Documented goals and objectives related to achieving
acquisitions
targets on KPIs that are tied in the employee incentive
programs
Involvement of accounting and tax management
In a pooling of interests, there is the potential of
losses due to unpaid sales tax and other
personnel to assist in due diligence proceedings
applicable taxes not identified during due diligence
in the state where the company resides
The potential litigation associated with the creation Claims,appeals are routed the the Corporate Legal
of liabilities to the company that were previously
Department for review
undisclosed/ unidentified in the merger and
acquisition of new companies
Nonlegal personnel are unaware that their actions Sales contracts are only written by company management
could lead to violations of laws and regulations
and are transfered among the parties in hard copy form to
prohibit unauthorized changes commonly found to occur
in electronic medium

20
02/13/2015

Communications _ Telecommunica

Non-compliance with regulatory requirements can


lead to fines, penalties and/or loss of license to
conduct business

Full Process Report


Board of Directors review all significant litigation and
regulatory matters
Formalized corporate compliance program

Compliance area interaction with key regulators


Substantial legal fees are incurred to defend small Legal counsel reviews all litigation and regulatory matters
cost claim determinations
Org Unit: Communications _ Telecommunica - Major
Process: Manage Human Resources

Key Performance Indicators

Employee turnover/ Retention rates


Costs of hiring new associates
Employee satisfaction rating
Utilization of on-line training courses
Employee utilization and productivity statistics
Budgeted versus actual head count
Number of new employees
Budgeted revenue per employee

Risks and Controls


High turnover rate company-wide, resulting in high Human resources department develops and implements
training and replacement costs, delays in product new hire and continuing professional development training
development, and loss of sales personnel-affecting programs for associates
sales forecasting and achieving strategic plan
HR department compiles employee feedback from
surveys and develops programs to enhance the work
environment
Employee surveys and round table sessions to discuss
employment related issues
HR provides numerous training opportunities for its
associates to encourage professional development
Increased costs of training due to decentralized
training program in all areas of the country
Lack of awareness by executive regarding the
relationship between HR practices and business
outcomes result in financial consequences
(staffing, training, perf review, workflow,
communication) and potential decrease in market
value of the organization
Managers lacking sufficient caution in granting
exceptions to policy results in increased likelihood
of costly employee relations complaints, fraud and
abuse potential, customer dissatisfaction
Inadequately developed, disseminated, or
enforced personnel policies and penalties in
support for confidentiality for health information
results in non-compliance by staff, breach of
patient confidentiality, and legal/reputation
exposures

21
02/13/2015

Full Process Report

Communications _ Telecommunica
Absence of the HR executive from the
organization's executive leadership team results in
loss of HR perspective impacting business results,
ratings on the balanced score card, and
competency assessments of individuals and
functions
Lack of objective information regarding the
effectiveness and the impact of the HR function on
the organizations business outcomes result in suboptimal efficiency and cost/effectiveness outcomes
and legal and regulatory liabilities
Ineffective compensation strategies and processes
result in inability to achieve mission, high
recruitment costs, staffing shortages, training
costs, competency liabilities, community image
and reputation negatives; or, conversely, excess
personnel costs
Inadequate HR management, operational
manager training in personnel related issues, and
limited awareness of staff concerns results in
employee dissatisfaction and higher exposure to
union activity
Org Unit: Communications _ Telecommunica - Major
Process: Manage Knowledge
Org Unit: Communications _ Telecommunica - Major
Process: Facilities Management

Key Performance Indicators


Risks and Controls
Lack of communication between the business
facilities causing excess or deficient assets and
supplies necessary for business operations

Lack of emergency procedures to follow in the


case of inoperable telephone communications or
internal information systems
Personnel are performing tasks they are not
capable of/trained for
Poor facility management can lead to over/under
capacity relative to utilization needs

Employee satisfaction metrics


Operating faculties budget compared to actual results
Schedules are made for movement of people and facilities

Quality management programs


Employee's work environment is assessed for adequacy
Policies and procedures communicated and reviewed with
employees across regions
Training programs are conducted
Employee satisfaction surveys
Checks and balances employed to ensure compliance
with policies and procedures

Org Unit: Communications _ Telecommunica - Mega


Process: Accounting & Finance
Org Unit: Communications _ Telecommunica - Major
Process: General Accounting

Key Performance Indicators

Days to complete the financial statement close process


Number of manual adjusting entries
Divisional financial approved by divisional management
Budget to actual variance reports analyzed and acted
upon by divisional owners
Number of errors

22
02/13/2015

Communications _ Telecommunica
Risks and Controls
Internal financial reporting not completed on a
timely or accurate basis

Full Process Report


Documented policies and procedures describing the
necessary steps to complete the required tasks in an
effective and efficient manner

External reporting not completed on a timely or


accurate basis
Lack of accounting and financial reporting manual Documented goals and objectives related to achieving
contributing to errors and lack of consistency
targets on KPIs that are tied in the employess incentive
programs
Financial reconciliations not completed
Management reviews budget to actual sales and
expenses and gross margin
General ledger accounts not properly maintained Management and board periodically review budget-toactual reports
Intercompany accounts not analyzed or reconciled
Reserve accounts not adequately monitored
Lack of budgetary accountability by division
Latest FASB and SEC pronouncements not
incorporated on a timely basis

Effectively tested reports provided to management that


provide relevant and reliable information
Employees trained on how to access, when to access and
how to use policies and procedures
Period reconciliations completed and reviewed within a
pre-set time frame

Org Unit: Communications _ Telecommunica - Major


Process: Fixed Asset Accounting

Key Performance Indicators

Risks and Controls


Potential losses due to limited control (tagging)
over fixed assets (ie, computers changing hands
without supporting documentations)
Lack of accurate records for equipment under
lease could make it hard to locate the asset at the
end of the lease term
Fixed assets not being properly depreciated for
accounting and tax purposes
Fixed assets not properly classified for internal and
external reporting
Physical to sub ledger to general ledger fixed
asset reconciliation/audits not completed or
accurate resulting in unexpected financial
adjustments
Inadequate insurance coverage creates a potential
liability
Divisional asset transfers not monitored or
recorded

Days to complete the financial statement close process


Number of manual adjusting entries
Divisional financial approved by divisional management
Budget to actual variance reports analyzed and acted
upon by divisional owners
Number of errors
Accuracy of fixed asset ledger at periodic physical
inventory
Documented policies and procedures describing the
necessary steps to complete the required tasks in an
effective and efficient manner
Monitoring of system performance and tracking of
problems
Annual fixed asset inventories, tagging and reconciliations

23
02/13/2015

Communications _ Telecommunica

Full Process Report

Org Unit: Communications _ Telecommunica - Major


Process: Accounts Receivable/Revenue Process

Key Performance Indicators

Risks and Controls


Inability to collect customer fees due to lack of
credit worthiness of existing and potential
customer base
Inability to collect accounts receivable due to
acquired existing payment plans of acquired
companies
Customer billing and credit memo issues

Ficticious activity is recorded in the system


Accounts receivable balances are not carried at
the net realizable value
Accounts receivable balances are improperly
stated
Customer statements are not accurate

Access to the accounts receivable information is


not properly restricted or backed up

Days to complete the financial statement close process


Number of manual adjusting entries
Divisional financial approved by divisional management
Budget to actual variance reports analyzed and acted
upon by divisional owners
Number of errors
Ship date vs. invoice date or amount of unbilled A/R
Write-off and bad debt expense as a percentage of sales
Amount and aging unapplied collections
Percent of invoice errors
Number or amount of credit memos
Days sales outstanding
Aging categories
If customers A/R balances age past pre set limit, their
access to technical support is suspended until payment is
received
The system provides a control total of customers in a
given cycle which is compared to the control total of billing
invoices printed
Perform credit checks for sales, all contracts require
financing
Customers call customer service to report that a billing
statement was not received
The sales system interfaces with the general ledger and
A/R system, posting information on a daily basis
The ratio of the allowance to A/R also needs to make
sense given current industry trends, underwriting
standards, payment, and sales trend
Month end reconciliation of the subledger to the general
ledger
Sales activity report by customer is reviewed weekly by
the sales manager
The sales department cannot post activity for a customer
who has not been set up by the A/R department
Access tp each application requires the use of passwords,
and user access is restricted to on those applications that
an employee needs to perform assigned job

Org Unit: Communications _ Telecommunica - Major


Process: Payroll

Key Performance Indicators

Days to complete the financial statement close process


Number of manual adjusting entries
Budget to actual variance reports analyzed and acted
upon by divisional owners
Divisional financial approved by divisional management
Number of errors
Number of commisions not paid due to low sales margin

24
02/13/2015

Communications _ Telecommunica

Full Process Report


Commissions per salesperson
Payroll expense as a % of revenue
Number of changes in the payroll cycle
Number of erroneous checks processed
Salary expense as a % of revenue

Risks and Controls


Erroneous processing of payroll (hours, rates,
duplicate payments, withholdings,etc.)

Outsourcing of the payroll processing function to third


party
Management review of report identifying changes to the
payroll system for the period
All checks processed offsite are sent back to the company
prior to distribution, allowing opportunity to test sample of
checks for accuracy
Accounting Director reviews and approves all
commissions payouts
List of approved commissions payees is approved on an
annual basis by the business unit heads
The terminating employee is required to meet with payroll
to become informed of the status of vacation days,
expenses, and period covered in final check prior to
departure. An indication is made for no further check
payments in the system
The payroll department reviews hours worked for
excessive hours or below average hours to identify
potential errors prior to submitting file for payment
Employees have access only to the information that is
needed to execute their job responsibilites. In addition,
passwords are required to access the system and must be
changed every 90 days
Profit sharing expense is calculated at each payroll at the
designated percentage of employee contributions
automatically by the system
Benefits payments expense is automatically calculated
each pay period by the system for the company's portion
Employees receive a confirmation of the elected benefits
prior to them becoming effective
Input of employee information receives a quality review by
another person for verification to election forms
Employees are encouraged to have paychecks directly
deposited into their checking accounts
Remittance advices and employees receiving checks are
mailed 2 business days in advance to ensure that they are
at the employees' residence by pay day

Paying associates after their termination date


Multiple sales personnel are getting commissions
on the same sale
Employee may be incorrectly paid or for
employees may be getting paid for services they
are no longer providing
Access to payroll information may not be
appropriately restricted

25
02/13/2015

Full Process Report

Communications _ Telecommunica
Accruals for benefits, such as profit sharing,
pension and vacation may be incorrectly
calculated, resulting in misstated liabilities
An employee's information may be incoorectly
input on the system (i.e. profit sharing percentage,
investment allocation, benefit coverage)
Employees do not receive pay on a timely basis
Org Unit: Communications _ Telecommunica - Major
Process: Treasury

Key Performance Indicators

Days to complete the financial statement close process


Number of manual adjusting entries
Divisional financial approved by divisional management
Budget to actual variance reports analyzed and acted
upon by divisional owners
Number of errors

Risks and Controls


Outstanding debt is not properly classified as
current and non-current

The accounting department head monitors the debt


schedule for compliance with current and non-current
classification
The accounting department manually prepares journal
entries on a monthly basis to update the debt
classification, which is approved by the accounting
department head prior to entry into the system
Monthly reconciliation of debt subledger (spreadsheet) to
general ledger
Debt classification are confirmed annual with third parties
to verify classification
The CEO and CFO have been authorized by the Board of
Directors to enter into debt agreements on behalf of the
company
Prior to signing a debt agreement, the board of directors
must approve the transaction
The organization seeks pricing and terms from more than
one institution to ensure that it gets the best deal
The legal department reviews debt agreements prior to
signing to ensure that covenants, terms, etc. are
appropriate
The accounting department head monitors ongoing
compliance with debt covenants to ensure that none of the
transactions that the organization enters into impacts
compliance
Senior management has established desired thresholds
for current ratio, investments as a percent of total assets
and debt/equity ratio to monitor for liquidity purposes.
The policy manual specifically indicates the types of
investments the company can purchase and maturity
schedules to comply with liquidity goals.
The liquidity report is prepared by the accounting
department and reconciled to the general ledger to ensure
propriety of information.

26
02/13/2015

Communications _ Telecommunica

Full Process Report


The balances are also reconciled back to the respective
subledgers/ or bank reconciliations.
The liquidity report is verified by the accounting manager
prior to distribution to senior management.
In a business combination, management and the board of
directors must approve the exchange ratio of stock for the
target's shareholders.
Stock that will be issued via the company's stock
purchase plan has been approved by the board and the
individual employees elect percentage of purchase on a
annual basis
Management has desired earnings per share thresholds
that are established each year.
Management evaluates its need for cash on an ongoing
basis to identify the best mix of internal and external
funding to minimize the costs to the organization.
Management has desired debt to equity ratios that it
establishes on an annual basis.

The organization enters into a debt agreement that


is not properly authorized or in the best interest of
the organization
The organization is not compliance with debt
covenants
Debt is entered into on behalf of the company
when there is no apparent need for the funds
Interest expense is not properly recorded on the
general ledger
Debt payments are not made in accordance with
the terms of the debt instrument
Management does not have available resources to
meet strategic initiatives of annual plan.
Liquidity reports that are used by management are
inaccurate.
Equity transactions occur with out the proper
involvement of senior management, board of
directors and the audit committee.
Org Unit: Communications _ Telecommunica - Major
Process: Accounts Payable

Key Performance Indicators

Risks and Controls


The general ledger is not properly stated

Number of errors
Days to complete the financial statement close process
Divisional financial approved by divisional management
Number of manual adjusting entries
Travel and entertainment costs as a % of sales
Number of invoices processed per month
Accounts payable aging
Budget to actual variance reports analyzed and acted
upon by divisional owners
The accounts payable ledger interfaces with the gerneral
ledger on a daily basis
A monthly reconciliation of the general ledger to the sub
ledger occurs

27
02/13/2015

Communications _ Telecommunica

Full Process Report


Access to the subledger is limited to those individuals who
have direct responsibility for the accounts payable
function and the accounting department head. In addition,
access is limited via the use of passwords.
The accounts payable department inputs completed
voucher packages into the accounts payable system upon
receipt of a completed voucher package
Vendors who have monthly recurring fixed payments (i.e.
leases, debt, etc.) are set up on the system for 12 month
payments.
Daily information input into the system is double checked
by the input clerk by printing the information that was input
for the day and reverifying against source documentation
A separate general ledger expense account exists for
recording forfeited discounts for the accounting manager
to monitor and understand why discount was not taken
All invoices were received directly by the accoutns
payable department

Payment may be made for goods/services not


received and/or in advance or receipt
Loss of discount due to not paying invoices timely
Improper matching of invoices to additional
supporting documentation for payments
All accounts payable have not been entered into
the system, resulting in an understated balance on
the sub ledger
High travel and entertainment expenses
Org Unit: Communications _ Telecommunica - Mega
Process: IT Processes
Org Unit: Communications _ Telecommunica - Major
Process: Planning the Environment

Key Performance Indicators

Defining IT Strategies reflecting key business unit leaders


and appropriate use of technology
IT expense as a percentage of revenue
% of IT expense in each key business Unit's budget
Frequency, representative composition and organization
of IT Steering Committee meetings
% of data owners in Business Units vs. IT Departments
Scope of internal service level agreements and frequency
of updates
Losses due to information shortcomings (Lost sales,
contracts)
Frequency of IT policies and procedures updates
Average age of the organization's IT systems by
technology group
Time spent on IT research efforts as a percentage of IT
time available
Frequency of IT architecture updates
Percentage of IT budget under IT control

Risks and Controls

28
02/13/2015

Communications _ Telecommunica
Little integration of IT management strategy with
business management strategy
IT architecture is not clearly defined and does not
support future requirements of the business
Data owners designated
IT systems do not comply with user, project or
external requirements (e.g. data privacy laws,
regulations, accepted business practices)
IT human resources do not match the
requirements of the systems in place and being
developed

Full Process Report


IT strategy derived from business strategy
Documented IT architecture maintained and updated
Designated owners for applications and data, accountable
for them
Internal SLA i.e., nature and level of
involvement/interaction between IT and business, i.e., IT a
customer of business, and business "manages" its
suppliers
IT Strategy defines skills and knowledge management
requirements (users and IT personnel)

Org Unit: Communications _ Telecommunica - Major


Process: Developing and Delivering Solutions

Key Performance Indicators

Life cycle effort percentage, for analysis/define user


requirements stage
Percentage participation in projects from business units
relative to IT department
Percentage of projects finished within budget (time and
cost)
Life cycle effort stages ( Design/code vs. Test percentage)
Number of modifications to specifications required by the
end-user during the development of the change to the IT
environment
Percentage of new objects created relative to those
reused
For a purchased application % of customization
Number of amends in the first month after implementation
Life cycle effort percentage (Implementation to Installation
stage)
Number of changes in the first three months after
implementation
Frequency of updates to business continuity plan relative
to new application software being placed in production
Percentage of budget spending on HW/SW/Comm
Percentage of new IT equipment in IT budget vs. user
budget
Frequency of IT inventory, network diagrams and related
documentation updates
Maintenance/development burden effort
Average number of emergency changes per month
Number of changes in first month after implementation

Risks and Controls


IT resources are misapplied for noncritical or
unauthorized purposes
New projects exceed time and budget

Change requests are validated, managed and prioritized


through a formal change management process
Project management methodology and software
development life cycle defined and adhered to

29
02/13/2015

Communications _ Telecommunica

Segregation of duties
New systems do not meet business requirements
or quality objectives
Technology infrastructure does not support new
applications

Full Process Report


Designated project sponsor (Executive) and project
manager, with regular project and steering committee
meetings
Seperate environments exist for development, test and
production systems with a rigorous methodology in place
End Users are actively involved in defining requirements
and testing and must formally sign off new systems
IT Strategy derived from business strategy

Org Unit: Communications _ Telecommunica - Major


Process: Operating the Environment

Key Performance Indicators

Percent of IT budget spent on training, number of days


training per employee
Number of help desk support requests per month by
severity, avg. response time
Percent of users attending training before implementing
changes
Promotion of IT training relative to all training for Business
Units
Analysis of IT problems by root cause, number per quarter
Average time for resolution of an IT problem
Average number of times an IT problem is reported once
an IT problem is initially resolved
Frequency of critical information backups
Downtime percentage per month by system category
Number of tests of key business unit and IT department
DRPs per year
Percent of successful recoveries DRP tests
Percent of IT budget spent on security
Average number of security violations per month
Frequency of security policies and procedures updates
Time needed to resolve a violation
Average system utilization per month
Average system capacity
Average systems downtime
Frequency of reviews of performance to service level
requirements

Risks and Controls


Unauthorized system access from internal users

Unauthorized system access from externals


Poor system availability and performance
Catastrophic loss of systems due to disaster
System problems not solved

Formal procedures for granting and removing user access


to systems and data
Users have access to only the necessary menus and
services required for their job
Intrusion detection, virus protection, firewalls, activity logs,
etc
Capacity and performance planning and monitoring
Disaster recovery plan in place with regular tests
Problem trend and root cause analysis

30
02/13/2015

Communications _ Telecommunica

Full Process Report

Org Unit: Communications _ Telecommunica - Major


Process: Organizing and Monitoring Processes

Key Performance Indicators

Risks and Controls


High staff turnover and loss of systems
skills/knowledge
Heavy use of consultants results in high project
labor costs and dependency on them
IT organization cannot meet service levels or
respond to business requirements for existing/new
applications
Customer dissatisfaction

IT leverage ratio (business personnel/IT personnel


IT personnel cost as a percentage of IT budget
IT staff turnover percentage
IT personnel staffing levels by category (Management,
programmers, etc)
Frequency at which IT budget to actual comparisons are
performed
Frequency at which IT KPIs are reviewed
Percentage of IT budget spent on outside contractors
Number of internal and external customer disputes from IT
issues by cause per month by severity level
HR policies reflecting this risk and regular measurement of
turnover by department
Use of consultants is justified on a project by project basis
with internal knowledge transfers where appropriate
Resource review of budgets for technology staffing
categories, skills and salaries quarterly
Customer survey, plus regular inter-department meetings
to discuss mutual plans and issues

Org Unit: Communications _ Telecommunica - Major


Process: E-Business

Owner and Description

Key Performance Indicators

Risks and Controls


ROI is never received on eBusiness
implementations.
eBusiness in not aligned with organizations goals
and growth.
Infrastructure is not secured to prevent
unauthorized access and use

Description: To meet customer requirements, many


traditional processes are moving to an eCommerce
platform. This includes back office and customer interface
processes. Many of the......
(Con't)......key risks and corresponding controls would be
associated in existing business and IT process
documentation. However, specific risks and controls
associated with eBusiness are addressed here.
Number of site hits
Application response time
Number of security incidents
Ebusiness application up-time %
Project financial objective attainment
Number of change requests at application rollout
Number of customer complaints around eBusiness
Application
Business cases which include ROI are developed and
approved prior to funding is provided

Appropriate security policies and procedures are


administrated

31
02/13/2015

Communications _ Telecommunica
Infrastructure and design of the site does not
facilitate the ease of use, accuracy, reliability and
availability of information

ASC Normative Controls

Full Process Report


System development Life Cycle (Project Management) is
followed to ensure appropriate design is created
Routine assessments are performed to ensure that
integrity is maintained
Capacity management is in place
Business cases which include ROI are developed and
approved prior to funding being provided

32
02/13/2015

You might also like