Telstra: Learning Business Process Outsourcing

Under a five-year outsourcing agreement, Accenture is delivering a broad range of innovative learning services to Telstra through the Telstra Learning Academy. The academy is helping to equip Telstra’s workforce to play its central role in the company’s far-reaching transformation into a customer-centric company—and a high-performance business.

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Telstra is Australia's leading telecommunications and information services company, offering a full range of telecommunications services including access services for most businesses and homes in Australia, mobile telecommunications services, broadband access and content, data and Internet services, and pay television. Telstra provides 9.3 million fixed line and more than 9.3 million mobile services throughout Australia.

Telstra's vision is "To do for customers what no one else has done: create a world of 1 click, 1 touch, 1 command, 1 screen, 1 step, real-time solutions that are simple, easy-to- use and valued by individuals, businesses, enterprises and government." Telstra, one of the best known brands in Australia, is a Fortune 500 company headquartered in Melbourne.

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In November 2005, Telstra announced a five-year, end-to-end transformation strategy to improve business performance and strengthen Telstra's leading position in the Australian telecommunications market. Telstra's transformation agenda was two-fold.

First, move from being siloed by product or business unit to being an integrated, fully converged telecommunications company focused on the customer. Second, create long-term shareholder value by growing revenue from new value-based services while reducing costs through the simplification of processes, systems and networks.

Strengthening Telstra's technology leadership position in the market was central to this strategy. To date, Telstra has already built two next-generation networks: a national high-speed third-generation global system for mobile (GSM) broadband network (Telstra's Next G™ network) and a fully integrated, national Internet protocol (IP) network (Telstra's Next IP™ network).

The transformation also included the deployment of new business and operational support systems, a dramatic reduction in the number of IT and network platforms operated and an upgrade of Telstra's product set to leverage these next-generation networks. To support its aggressive transformation goals, Telstra also needed to simultaneously improve both employee productivity as well as customer service. According to Greg Winn, chief operations officer, Telstra, "Telstra wants to provide value-added services that are the world's best and to harness the latest technologies. We need to develop the best field technicians, the best network engineers and the best wireless and product-management workforce in the world.”

Critical to the success of Telstra’s transformational agenda was the commitment to invest an additional AU$200 million (US$188 million) into staff job-ready training over a five-year program to provide Telstra's staff with the skills needed to develop and maintain these next-generation networks, products and services. The training would enable field technical support, network operations, construction, engineering, IT, product management, billing and procurement staff. (Substantial investments in new equipment, tools and processes were also made).

According to Telstra CEO Sol Trujillo, "It is the people in the business that interface with customers and make things happen every day. As part of our transformation, we made a decision to invest in our people as we transform the business. We want to take our people with us on Telstra’s journey."

Under a five-year outsourcing agreement, Telstra selected Accenture to design, build and manage the Telstra Learning Academy, under the guidance of a core Telstra management team. Accenture provides curriculum planning, content development, learning delivery, support operations, technology services and governance processes to more than 23,000 Telstra employees.

Accenture was selected by Telstra based on its deep experience in the telecommunications industry and its proven track record in helping clients achieve high performance through innovative and efficient learning outsourcing solutions. According to Michael Rocca, group managing director—Telstra Networks and Services, “Telstra is undergoing a major transformation with the introduction of new advanced technologies, and we are leveraging Accenture’s global expertise so that our employees are skilled in these new technologies and can deliver better service to our customers.”

Accenture's research into high-performance learning organizations—based on a survey of 285 senior learning executives around the globe—has shown that one of the defining characteristics of high performers is the direct alignment of learning initiatives with the organization’s business goals. After implementing an operating model and a blueprint to transform Telstra's learning capabilities in support of the company's transformational business goals, Telstra teamed with Accenture to implement governance structures and processes to align learning in an ongoing and systematic fashion with Telstra's business and then measure the results of these learning investments.

This objective was accomplished through Accenture’s proprietary and innovative service called “Business Interlock.” This critical service helps ensure that learning initiatives and business outcomes are “locked in”—ensuring that the learning function invests in programs that are focused on the most important business objectives.

The Telstra and Accenture teams develop annual learning plans to identify mission-critical workforces and prioritize training across the business based on business need and impact. Specific learning programs targeted to build next-generation technology skills, along with certification processes, support consistent skill development throughout the Telstra workforce in support of its business goals. Accenture is helping Telstra migrate its predominantly instructor-led training model to a blended program including more self-paced e-learning to enable broader and more efficient delivery of learning to Telstra's dispersed workforce. Additionally, new and innovative learning technologies such as virtual instructor-led training and podcasting are also being leveraged in the learning model.

To enable workforce development capabilities to support its aggressive five-year transformation, Telstra leverages Accenture’s communications industry expertise, global best practices in learning design and innovative learning technologies. Telstra also leverages Accenture's global content development and delivery network, enabling flexibility and scalability. Content development is sourced from Accenture's content development centers in Brisbane, Australia, and Bangalore, India. Support and help desk operations are delivered from Accenture centers in Bangalore and Chicago.

In the first two years of the outsourcing engagement, Accenture worked with Telstra to align training priorities with overall business initiatives and transformation programs, resulting in the roll out of a number of important initiatives. One of these initiatives supported a mission-critical business restructuring program designed to streamline Telstra’s field work dispatch business.

The Telstra Learning Academy developed 57 hours of courses to support redesigned jobs and functions and delivered more than 12,000 hours of training across Australia in just two months. This training enabled a rapid and efficient restructuring within Telstra and contributed to more than a 40 percent increase in workforce productivity. According to one trainee, “After nearly six years at Telstra, I have never been in such a well-structured and well-presented training course. The online modules with the follow-along work guides were very well done.”

Another key initiative was an “Assess first” program for health, safety and environment training, which maintained critical skills of certified technicians while reducing training times. Health, safety and environment training costs were reduced to just over 5 percent of the budget—a dramatic reduction from 90 percent in pre-Academy times. This reduction allowed funding to be redirected to other transformational learning initiatives.

Communications technicians are often the “face” of Telstra. They work to connect, network, repair and maintain communications services, often in the client’s home or business environment. Telstra has a vision to employ the most technologically advanced and best-equipped communications technicians in the world.

According to Michael Rocca, “Our field workforce is equipped with the best tools to do the job, enabled by the best systems and processes and trained to deliver excellent customer service. All of the information that a communications technician requires to deliver great customer service is at their fingertips in a way that we have never been able to achieve before.” To make this vision a reality, Telstra built new software tools into its fleet of approximately 5,000 field mobile computers that are used by its communications technicians in the field.

To support the new technology, Telstra, with Accenture as systems integrator, implemented the “Communications Technician of the Future” initiative to equip these frontline people with the skills they need to provide better and more responsive service. With the goal of training 4,000 communications technicians to be the best in the business, the Telstra Learning Academy delivered an innovative learning program comprising field mobile computing software training, simulations, hands-on scenarios, Web-based training models, instructor-led training and eight stand-alone application simulations to support the initiative.

Field workforce productivity has climbed more than 20 percent since November 2005, and the training supporting the Communications Technician of the Future program has played a critical role in these impressive productivity gains. “Our instructor knows our business, understands the issues faced by our staff and communicates clearly and effectively. Course content is relevant and the length of the course allows for proper training and questions to be answered. Please use this course and instructor as a model for future training,” said Telstra team manager Michael Cooper.

Telstra’s Service Advantage line of business restructured its inbound call center function. The project reduced 83 functions at 17 sites to just eight functions at four sites in Sydney, Melbourne, Perth and Townsville. Telstra needed to ensure that its large base of new customer service representatives could properly troubleshoot and deliver service to customers relating to the new networks and services starting from their first day on the job.

The Telstra Learning Academy developed a new three-week induction program composed of Web-based courses, instructor-led sessions and job-aid provisions. The curriculum covered processes, new products, systems, health, safety and environment issues, troubleshooting and customer service. According to a study, the program contributed to an 11 percent reduction in the average call handling time, translating into annual savings of A$1.6 million [(US$1.5 million) for Telstra.

The Telstra Learning Academy also launched a highly interactive performance simulation with the Service Advantage line of business to improve the troubleshooting and customer service skills of front line help desk representatives. The performance simulation is a first for Telstra. By capturing knowledge and best practices and delivering via innovative learning technologies, the simulation guides learners through realistic challenges with four virtual customers.

The Telstra Learning Academy is having a measurable impact on employee engagement as well. In the 2008 Telstra Employee Engagement Survey, 60 percent of respondents agreed that there were sufficient opportunities for job-specific learning and development. This marks an 11 percent increase over 2007 and a 15 percent increase compared to the scores recorded at the time of Telstra Learning Academy’s commencement in 2006. "Our operating model allows us to ensure that all courses are relevant to the work at Telstra and not just training for training’s sake," says Telstra Learning Academy Director, John Clifford. "With an ever expanding course catalogue, I am sure that these results will continue to improve."

After two years in operation, the Telstra Learning Academy has trained more than 23,000 Telstra Operations personnel through a network of more than 200 training venues across Australia. It has developed and delivered 400 new courses and conducted 8,000 instructor-led training days for Telstra’s operations unit.

With an operating model and strategy that maximizes the linkage between learning and the business, and global capabilities and the expertise provided by Accenture, Telstra leadership anticipates that the Telstra Learning Academy will continue to have a significant impact on business performance, specifically through facilitation of improved productivity of the workforce, higher customer satisfaction, improved job satisfaction and cost reductions.

In a business where knowledge is power, the Telstra Learning Academy is helping to foster a new generation of skilled Telstra workers bringing new services to market faster than the competition while delivering superior customer service.

Accenture and Telstra have received acclaim in Australia and worldwide for the investment, benefits and leadership that continually improve the skills of Telstra’s workforce. With the help of Accenture, Telstra is proving that learning is a critical driver for enabling business transformation and achieving high performance.

In the words of Michael Rocca, "The Telstra Learning Academy is an investment in our people and the future skills of the telecommunications industry in Australia."