Billing Optimization
Controlling your Telecom and Technology monthly expenses

It’s a new year. 2015 profits are in and accounted for in most cases, with maybe a few accrual items hanging in the balance. Big question is… were we profitable enough, and how could we have been more profitable? Most companies turn to the big items first, as they of course have the biggest impact. but how many other costs are bigger than we think? Take one large item like telecom costs.

Telecom & Technology Services are necessary but also very confusing and operationally costly. Therefore, these must-have monthly bills are likely to be overlooked when a company is looking to improve bottom-line performance. According to a study by Aberdeen, “…few enterprises have had a comprehensive and accurate way to determine what they are spending on telecom services, with whom and why.” The study also notes that 85 percent of mid-market companies pay their telecom bills in full without auditing.

Telecom & Technology service providers are not required to and, in most cases, do not audit client’s bills. It is the client’s responsibility to ensure correct contracted rates are being invoiced and that the services being billed are actually in use.

Who In Your Company Is Responsible?

Often times, companies leave this responsibility to the IT Department. The IT Department is thought to control this because, after all, telecom bills are related to “Technology”. However nothing in an IT manager’s training has prepared them to understand and keep track of the telecom industry with respect to the myriad of ever changing plans and rates. Couple the vast amount of telecom rate options with the a wide range of potential sources including CLECs, LECs, Brokers, Agents …etc. that can provide these critical services and you can see how these expenses get lost in the shuffle. So IT continues ordering lines, phones and other related services based on requests from a wide variety of managers, department heads, directors and locations without regard to cost controls or contracts that may be in place. The end result is telecom bills continually spiral upwards without anyone ensuring that services being paid for are actually necessary or even used!

Add to this to the fact that the accounting department, who pays the telecom bills, simply does not have the time or expertise to adequately scrutinize these invoices and cost escalate without evaluation.

The honest answer to the question “Who in your company is responsible?” often is that there is no person whose job description matches that responsibility…but don’t you think that it is still necessary to eliminate costs you do not need?

What is the solution?

Companies who engage with an independent, recommended, and expert 3rd party Billing Optimization Provider experience average saving of 25% or more and are positioned recognize and prevent the constant upward spiral for 3 – 5 years after the process is complete. How do you know which company to choose? Ask any billing optimization company approaching you this question:

“Do you make 100% of your company income by optimizing companies’ telecom expenses or do you also represent the very companies or their competitors that will be scrutinized?”

If they are reps for the carriers that they are talking about auditing, you may need to think twice about what you’re getting.

Do Not be fooled by brokers, agents or software companies. They all want to perform this service but do so as a way to sell you their solutions. This is not about buying more or different, but rather critically evaluating what you have vs. what you need and correcting the delivery, rates and errors. Once a comprehensive audit on the services you already have is completed, you may safely work with these companies from a position of knowledge and with the security of knowing what you are paying is correct forcing them to provide you with better and hopefully less expensive solutions in order to win your business

What should the process entail?

• Determine which services are required
• Review existing contracts, rate plans and existing services
• Confirm contracted rates, taxes, tariffs & applicable discounts are being billed
• Obtain and analysis Customer Service Records (CSRs)
• Perform “Ring no Answer” on all lines associated with every bill and inventory specific function
• Research competitive rates and plans.
• Assist you in centralizing management of the services.
• Optimize existing equipment eliminating excess and preventing unnecessary additions.

In conclusion if you’ve not had third party perform billing optimization in the past 3 years it’s time to review these critical and often times expenses services. Ask yourself what a 25% annual reduction would allow you to do. Hire, retain, expand, or simply improve your bottom line. This money is far better in your hands then in those your Telecom and technology providers.

Written by Todd Larsen, CEO Limitless Technology~Cost Reduction Specialists 

Are there times when you as an Owner, Managing Partner, or C-Level Executive look at your business costs and see things which ” just don’t look right”. Are there places you feel you could get better pricing, but are not sure how? And do you believe, if you or your Staff put in the right amount of effort, you could find additional savings?   Pretty standard “stuff” in businesses of all types and sizes.

So, what so you do? Do you take it on yourself? Or do you ask your department heads to tell you how they feel there costs are? And how often do you get the response..

– “we’re all good”..

– we just looked at them and “we are in line.”

– I just spoke with the rep and “he/she says we have the best price possible.”

– “we pay a little more but our vendor or agent takes care of us.”

Or is there another one you hear??? (Please comment to this post if you have another one you hear.)

But…when these phrases are posed to you, what verification and proof Is offered to support the claim? Do you hear the answer, move on, and just accept them? And if so, does doubt sit in the back of your mind? And does it continue…with you still not believing the answers received truly support what you are seeing or sensing, on where your costs should be?

So then what do you do?

I think this is the big question, and the most difficult one for most top executives to make. Not because they can’t or shouldn’t make choices to “inspect what they expect”‘, but because they do not want to:

– not make their count parts feel questioned

– not make their employees feel “un-trusted”

– not waste time looking at something that someone could say…”I told you we were okay”

So what can be done? 

Let’s look at it from an analogy aspect. If you came to work one day and you just felt like the was gold in your parking lot. Now it’s more than a sense of course because your knowledge of where “gold may lie” is based on your knowledge and executive experience.  And, to make sure you are getting a potential “second” confirmation you of course ask a couple of other executives what they think, and they of course said…”there’s no gold there“…. or I just looked at the parking lot and I didn’t see any gold? Yet deep in your gut you believed all the right indicators for a large amount of gold was there….what would you do?

Well, you may want to call in some form or trusted advisor or expert. Or you may want to seek a resource you feel has more credibility to decide whether or not it makes sense to dig up the parking lot. But what would be the worst thing to do? I am betting you already answered that…

Nothing.

Nothing is what keeps us from uncovering the facts, discovering reality, ensuring success, and increasing your opportunity and providing “maximum profitability.”  

But, you sure don’t want to tear up the parking lot, create unnecessary expenses, wasted time, or inconvenience on you or your employees. So when it’s something you know should be done…how can this be accomplished?

So you may want to ask this question? Are there expert firms that will burden the risk and share in the profits,  while minimizing the impact to you, your employees, and the business? There are. In fact, for almost any segment of your business there are companies and individuals which can help you “find the gold” in your parking lot for:

– little to no money/investment  upfront,

– with very little impact on your employees,

– and with minimal disruption to your business.

Theses billing optimization firms come with the expertise, process, and tools to “find your gold” and ensure your increased profitability potential. Make sure however that you hire firms that:

– have the recent historical industry background

– have been in business for more than 5 years

– have a “reference able” client base and supporting testimonials

– are experts in your particular industry or service interest

– have a proven process to ensure success

Now…the easy part. Just make the right decision by acting swiftly, seeking the right expertise and recovering the ” gold” you know is most likely there. You just have to act.

Remember, “Procrastination is one of the most common and deadliest of diseases and its toll on success and happiness is heavy.” Wayne Gretzky

US Based Executives ‘question business value’ of tech spend.

Recently I was exposed to a survey taken by multiple senior finance executives regarding their opinions and facts surrounding the cost of IT and communications. Overall the “gist” of the information gathered clearly shows technology is needed,  but do not believe they are getting the types of info they need, and the spend or “burn rate” was grossly negligent to the ROI.

Below are some of the highlights or the articles finer points.

After reading…what are you opinions or thoughts on high communication spend rates or the mismanagement of technology costs in business?

• Senior finance executives say their companies are weak at converting business spend to technology value.

• Almost none of those surveyed (3%) rate their companies as “excellent”, according to a new survey of more than 150 senior finance executives by CFO Research in collaboration with consultants AlixPartners.

• The survey also finds that more than two-thirds of financial executives (66%) give their companies a “C” or “D” grade when it comes to measuring financial returns from discretionary IT projects, such as big data ones, designed to improve or add to a company’s business and profits. Only 5% gave their companies an “A”.

• Meanwhile, at the other end of the IT spectrum, the survey reveals that “keep-it-running” IT costs – non-discretionary support and maintenance systems – are cannibalizing funds available for business-improving IT.

• A plurality of respondents (49%) estimates that, over the past two years, their company has maintained approximately a 70-30 ratio of keep-it-running to improve-the-business IT spending, and of that amount, a solid majority – 63% – believes that their company’s spending is weighted too heavily toward keep-it-running IT services, and that a greater share should be directed to improve-the-business IT projects.

• The survey goes on to show that, despite massive IT investments in recent years, companies are not getting enough of the kind of information they need to successfully run and grow their businesses.

• “The message from CFOs and other senior finance executives is loud and clear – companies are spending too much on IT, and they’re not getting the business information that they truly need,” said Meade Monger, managing director at AlixPartners and co-lead of the firm’s Information Management Services unit.

By Todd Larsen CEO Limitless Technology~CRS  April, 10th, 2013

Limitless Technology~CRS

Delivering expert results on: telecom auditing, telecom contract management, telecom expense management, and telecom billing optimization services.

www.limitlesstechnology.com