TDC Group Annual Report 2011(6,4MB) - TDC Annual Report 2011

Performance in 2011
In 2011, Operations & HQ continued to deliver strong
results in cost reductions, managing to reduce external
expenses by DKK 171m compared with 2010 and wages,
salaries and pension costs by DKK 139m.
The reduction was achieved through continued
improvements in the cost base, including lower wages,
salaries and pension costs due to an 11.7% reduction in the
average number of employees primarily within staff
functions and due to a decline in the legacy landline
business. Further reductions were achieved by focusing on
a number of programmes aimed at achieving cost
reductions across the organisation. Also utilisation of
economies of scale, through TDC’s position as the major
player in the Danish market was a source of cost efficiency
throughout 2011. Consequently, the efficiency gains
achieved in Operations and HQ resulted in a DKK 292m or
9.3% fall in operating expenses allocated to other business
lines.
TAK
TAK is the corporate-wide customer satisfaction
programme aimed at improving customer experience on all
fronts. This includes better alignment of expectations with
Cost split, Operations & HQ
HQ
4.7%
Consultancy/
contractors
15.4%
Other
external
expenses
22.4%
Cars
8.7%
IT
14.1%
Property
34.7%
TDC Group Annual Report 2011
the customer in the sales situation, fewer system
breakdowns in the commissioning phase, fast and efficient
fault handling and better service levels on phones, etc.
Customer satisfaction KPIs continued to improve and TDC
achieved several successes during 2011:
• In 2011, Operations continued to focus on fault
correction in order to improve its customer experience
while reducing costs. As a result of these actions, fault
correction hours in the field force fell by 21,000 hours or
2.8% in 2011 compared with 2010. This was despite an
extra 26,500 hours of fault correction related to heavy
rainfall that flooded the Copenhagen area in July 2011.
• Faults after delivery decreased 6 percentage points for
residential and 5 percentage points for business
customers, primarily as an effect of ’first time right’
activities – more initial tests are carried out, while faults
are handled and technical faults are corrected during the
delivery process.
• Recurring faults decreased by 8 percentage points for
residential customers and by 4 percentage points for
business customers during 2011. During the last two
years, the number of recurring faults more than halved
for residential customers and declined by almost 40% for
business customers.
• The overall customer satisfaction index increased during
the year – from 71 in 2010 to 72 in 2011 for the whole
TDC Group. Unacceptable customer experiences also
improved during the year, with an index that declined
from 75 in 2010 to 64 in 2011 for the whole TDC Group.
TDC Pro
TDC Pro (Process optimisation, restructuring and
outsourcing) is a review of the operating model aimed at
increasing efficiency, simplifying production, reducing lead
times and waste, improving flexibility and strengthening
cross-functional collaboration. TDC Pro covers the review of
processes, structures and interfaces as well as decisions on
'make versus buy', primarily within Operations, as well as
the interfaces between Operations, and Consumer and
Business.
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