Sarah Roberts, Director, Baringa
Hi, I'm Sarah Roberts, I'm a director at Baringa and today we've got the privilege of speaking with Tim Shaw CEO of KCOM. Now, KCOM for the last 120 years has been a real pioneer in the telecoms industry.
But like many in the industry, there is a need to modernise fast. So upgrading digital infrastructure, becoming more efficient and agile, as well as keeping the customer at the heart of the journey.
So today I would like to introduce you to Tim.
Hi Tim.
Tim Shaw, CEO, KCOM
Hi Sarah.
Sarah Roberts, Director, Baringa
Thank you for joining us today, and to kick it off, please, could you take a moment to talk about the challenge that you were facing as well as why it was so important to your organisation?
Tim Shaw, CEO, KCOM
I think you summarised it a bit at the start. You know, as a business
that's been operating for over 120 years, we needed to think about things differently. So we set a vision, a very clear vision of what we wanted the business to be.
However, that involved multiple different projects. We had to extend our network, to extend outside of hardware we traditionally operated. So there was a big mobilisation of our fibre build program.
We had to upgrade all of our systems, to more modern technology that enables us to provide for our customers and seamless journeys.
We recently divested in two or three years ago, a big part of our business, our national B2B arm. So there was a lot of work to continue to optimise and bring efficiencies into the business. And finally, we had to close our legacy network, so KCOM still operates like BT, a copper network in our region.
So we're now in the process of migrating all of those customers off. So it was really a pivotal time everything came together and everything needed to be done at the same time.
Sarah Roberts, Director, Baringa
Well, that sounds like a big challenge, Tim.
Why were you looking for a third party to support you and what strengths did they need to bring, to the project and the transformation?
Tim Shaw, CEO, KCOM
Great question,
I think, you know, you mentioned KCOM’s long heritage, and I think we're at this pivotal moment in the business where we needed to extend our fibre network to grow the business. So that was a big project that we kicked off.
We made big investments in our systems estate, and how to move from our legacy systems to more modern technology and setting the groundwork for the future in terms of where we need to go to, we needed to close our legacy network in the Hull area where we still provide voice-over copper, as BT do. So we needed to be ready for that migration. And we also had to complete the full exit from a divestment that we made two or three, four years ago in order to get the business really efficient and bringing all that together, we needed a different operating model to how the business operates to really set it up for the future. I think when looking at a partner, we didn't need someone to come in and try and throw it all up in the air again. We needed someone that could hit the ground running, execution was the number one focus.
We needed a 12 to 18 month window in order to get this delivered, and we needed that execution, that was the number one.
Second was control, governance and alignment. All of those different things all need to come together to support the business plan to support growth in the business. So that was really key.
And then the final one, it was that telecoms experience. We wanted a partner that could look at the work we're doing, provide good challenge, be a part of the team, not just on the outside, bringing in so integrated into the team to bring those three things together.
They were the key things we were looking for.
Sarah Roberts, Director, Baringa
Oh thank you Tim. We’ve been really lucky to work with you for a number of years now. What was it about Baringa that you felt would make us a good partner for this piece of work?
Tim Shaw, CEO, KCOM
Yeah, so like you say, we have worked together for some time, and I think that always helps. I think the execution risk is reduced with that relationship. And we definitely saw that. And I think that was a big part of where we wanted to go to.
But we also know your experience around telecoms and what you were able to bring to really challenge us in terms of setting the business up properly, really did. There are number of projects we've done before. Set the groundwork, we knew exactly where we needed to go.
You knew our business as well, which I think made a big difference in terms of how to get things done quicker. So we didn't lose that that Start-Up period, we were able to hit the ground running. And as you already integrated into the organisation, the transformation team reported directly to me. We had a great relationship, you know, in terms of moving that forward and that worked across the rest of the team. So really set it out perfectly from the start.
Sarah Roberts, Director, Baringa
Thank you, Tim.
And I guess when we look at the transformation in particular, part of it was becoming more efficient as well. How did you make the transformation be more sustainable with long term in mind, and make sure the customer experience wasn't impacted as you were going through this significant transformation that we just talked about?
Tim Shaw, CEO, KCOM
Yeah, I think I think we straightaway saw how the business was going to be operated. So, you know, there's only so many ways you can set up a telecoms operator like KCOM. So we had a really clear kind of consumer division that was really just focussed around customer experience. And the majority of the transformation was then in the back office network areas where we put our time.
So the way we organised the business naturally felt the way we could drive, those challenges. We had clear red lines, what was in, what was not in scope in terms of that and very clear metrics. I think the KPI set that we developed, that we had already added to, really gave early warning signs if what we were doing was having a negative effect to anything that we did, and we saw some of that in the early days of a couple migrations, we saw some really negative results in call waiting and contact.
So we were able to stop re relook at what went wrong and redone it there. So that ability to have the right set of KPIs around customer was really key to make sure the activities that had to be done were done with the positive effect that it had.
Sarah Roberts, Director, Baringa
And in terms of structure and governance that you just sort of mentioned a little bit there, part of what we did was help you set up a transformation management office.
How did that improve you know, visibility, governance as well as delivery execution?
Tim Shaw, CEO, KCOM
Oh, it was it was kind of it was key to it really became the single point where we were able to look through the whole organisation with transformation as the focus, whether that was delivery of the projects I mentioned, and obviously there were a lot more detail, whether it was how our people were reacting, and how it impacted people that had been, it's a big part of the business.
And also finance, I think that alignment to the transformation activity we’re doing and a difference it makes to the bottom line and the performance of the business was absolutely key.
You know, where to put your effort. You know, if you're not on track how to react. So it was a single lens as I called it, on transformation that we were able to bring, that was shared not only with my management team, but their management teams and the whole organisation. But also more importantly it was the same view to the board.
So it wasn't different slide deck used all the time or different presentations, different KPIs, everything was the same. And that alignment organisationally both from right, from the top, from the board and investors all the way down became really key.
Sarah Roberts, Director, Baringa
That's brilliant, and it was a privilege to work with you on it. And then when you look at the legacy that's been created as a result of this transformation, how would you characterise that?
Tim Shaw, CEO, KCOM
Oh, I mean, I think when you're in it, you don't realise how much a business can change. You know, when I joined KCOM six or seven years ago, it was a very different business to what it is today and it still now has the platform to go beyond. And I think that's the legacy, it was fixing some of the legacy elements of the business, huge changing market conditions across the UK, but predominantly in our market as well, has meant some of that was forced on us, and now we're at a really, really good position for the business to grow from this platform that we've transformed, ready for the next wave of transformation around AI and other elements that are coming along.
We're now ready to to really maximise that, where three or four years ago, we just weren't.
Sarah Roberts, Director, Baringa
I know you've worked with other consultancies in the past. What was it about Baringa that really differentiated us?
Tim Shaw, CEO, KCOM
I think I'll go back to those three points. That was a decision criteria when we came into this project, execution, governance and control and telecoms experience and I think for our time with Baringa we tested out the market as would always. You guys came out on top. And I think for us that was a good investment that we made, given the success that we've had from the programme.
So, it came back to those initial three elements that we focussed on, with execution probably being the biggest one for me, personally.
Sarah Roberts, Director, Baringa
So looking back, what were the biggest lessons from this transformation?
Tim Shaw, CEO, KCOM
I mean, you always spend time reflecting back and thinking about what you could have done, what you didn't do.
So there’s lots of little things. But I think probably for me, the biggest one was just the volume of work and the pace of change we had to deliver.
And I think, you know, with your support, we got through the execution. But from an organisation, just health perspective, it was hard work. And, you know, a lot of time for me and the management team, energising the team. So I think if you could, if you are lucky enough to be able to balance time and pace, it would be the volume of work you're doing at once would be the lesson I learned.
Sarah Roberts, Director, Baringa
And that sort of ties into my next question, which is around this is not a unique situation in the market. Lots of other telecoms leaders are going through similar sorts of challenges.
And I think you touched on it a little bit there, but what would be the lessons and the advice that you would give to other telecoms leaders who are going through a similar transformation in this industry?
Tim Shaw, CEO, KCOM
Yeah, I mean, I think that it's the age old rules, right? Have have a very clear view where you need to get to and kind of stick to it, but don't be afraid to walk away from it either. So I was constantly challenging it with not only your teams view, but other people, I think, always know where you need to get to.
And I think control and alignment I think would be any transformation. Majority of them don't succeed because things come off track and you lose track of where you are.
Before, with us trying to do it ourselves, we fell into that trap as well, right? Trying to do too much, you lose track of something. So we experienced that, hence we're talking if you like. We recognise that we needed to change and that's why we're here today.
So I think there are two things I would really, really clear view on North Star and don't be afraid to keep challenging yourself. And if you need help, get it.
Sarah Roberts, Director, Baringa
And I guess the telecoms industry is not slowing down in terms of pace and it's rapidly evolving now. We've got AI, automation and digital networks, which are really reshaping the telecoms landscape. How do you see transformation evolving over the next 3 to 5 years?
Tim Shaw, CEO, KCOM
Absolutely, I mean, it's exciting times. I think the opportunities those technologies bring to our sector is huge. And I think it's exciting to think what could happen across the sector, both for the way we run our businesses, but more importantly for our customers.
But only that works with the right data, right. And I think, you know, some of the work we've done already in terms of our systems and our structure of our business has been to cleanse our data. We're 120 years old, some of our data is not where it needs to be for that to maximise the value from AI and automation, data is key.
And I think, while we've trialled different things around AI and automation, and they've worked in very small pockets to really bring that company-wide, the work now, the next phase of transformation because it never stops, is around our data management, data quality, data controls, because that is going to be the key to any success, any transformation moving forward is good access to your data, clean data and repeatable actions. Because then that's what drives the opportunity.
Sarah Roberts, Director, Baringa
Thank you for sharing all of that insight today, Tim.
As I said, it's been a real privilege to work with you, over this project and through another number of projects over the last few years. I wish you the best of success with this transformation for this year and for another 120 years.
Tim Shaw, CEO, KCOM
Thank you, and I think that the work with Baringa has been fantastic. You've really set us on the journey now in terms of how we can take the business forward, so a massive thank you to you and your team in what you've done for us.
