Telus 2010 Annual Report Download - page 52

48 . TELUS 2010 annual report
scorecard) and approximately 300 fewer FTEs in international operations
due to lower business volumes.
In May 2010, the Company created TELUS Customer Solutions by
uniting the customer-facing business units, business solutions and con-
sumer solutions, under the leadership of Joe Natale, who was appointed
Executive Vice-President and Chief Commercial Officer. The expected
benefits of this reorganization include: (i) increased capability to approach
customers as one team with fully co-ordinated sales, marketing and
customer care priorities; (ii) enhanced ability to share best practices,
learning, programs, competitive strategies and go-to-market activities
to deliver positive customer experiences; (iii) contributing to operational
efficiencies and cost synergies contemplated in the Company’s 2010
restructuring target; and (iv) streamlining interfaces between TELUS
Customer Solutions and business enabling units to facilitate improved
prioritization of financial and human resources.
Ongoing efficiency initiatives include:
.Simplifying or automating processes
.Simplifying organizational structures through consolidation
of functions and reducing organizational layers, which includes
workforce reductions
.Consolidating administrative real estate to create a smaller
environmental footprint through mobile working, reducing inter-city
travel, decreasing number of daily commutes, and reducing use
of real estate space, which includes vacating certain locations
.Decommissioning uneconomic products and services
.Leveraging both business process outsourcing, and off-shoring
to TELUS’ own international call centres.
Going to the market as one team under a common brand,
executing a single strategy
The creation of TELUS Customer Solutions, described above, is
contributing to advancing this imperative. The Company is also intensi-
fying its focus on the client experience with a Customers First initiative
started in the summer of 2010 based on the many opportunities identified
to senior leaders by front-line team members. Additional activities are
planned for 2011. It is the shared responsibility of all team members to
effect change and continually improve customer service levels.
In August, the Company introduced Remote Recording, an integrated
solution that allows customers to manage PVR recordings using a
web-enabled device such as an iPad or certain smartphones, including
the iPhone or BlackBerry. TELUS also introduced the capability for
the Xbox 360 to be used as a set-top box, directly accessing Optik TV
service, integrating gaming and entertainment. Optik was a positive
factor in lowering residential subscriber losses and increasing high-speed
Internet net additions in the second half of 2010.
Building on the success of Clear & Simple® rate plans that launched
in November 2009, which removed system access and carrier 911 fees,
TELUS introduced a variety of initiatives in 2010 aimed at bringing greater
transparency and simplicity to customers. In June, TELUS introduced
data notifications to warn customers when they are about to exceed
their allotted data rate bucket. This helps customers avoid data overage
charges and better manage their data usage.
In November, TELUS launched the new Clear and Simple Device
Upgrade program in response to customer demand for more frequent
device upgrades to keep pace with technological change. Customers
who are in the middle of a contract may upgrade to a new device by
paying an early device upgrade fee, which is equivalent to the unrecov-
ered portion of the original handset discount they received when they
signed up for service. This in turn closes out their prior contract commit-
ment and allows them to sign up for a new handset at a discounted
acquisition price. TELUS also introduced a more transparent cancellation
policy for those who have activated or renewed their contract starting
on November 21, 2010. If such customers choose to cancel before their
term has expired, they will pay the unrecovered handset discount
plus a small fee. These two changes create more transparency about
the value and fairness of TELUS’ contracts and fees.
Investing in internal capabilities to build a high-performance
culture and efficient operations
TELUS realized approximately $134 million in cumulative operational
efficiency savings in 2010, as compared to its year-ago expectation
of approximately $135 million. The number of full-time equivalent (FTE)
employees decreased by approximately 1,400 in 2010, with approximately
1,100 fewer domestic FTEs as a result of restructuring initiatives, attri-
tion and hiring freezes (see Key assumptions in Section 1.4 Performance
of new regional wireless companies that are launching or expanding
operations. TELUS has been enhancing its competitive position
since 2008 by way of the new HSPA wireless network, new devices,
simplified rate plans, expanded wireless distribution, and the Koodo®
brand and service.
The discussion in this section is qualified in its entirety by the Caution
regarding forward-looking statements at the beginning of the MD&A.
Management confirms or sets new corporate priorities each year
to both advance TELUS’ long-term strategic priorities and address
near-term opportunities and challenges. One challenge is the entry
3KEY PERFORMANCE DRIVERS
A report on 2010 corporate priorities and an outline of 2011 priorities