ITV: Overcoming Customer Resistance, Final Part

Ian: The project initially started in, let me thinkprocesses."
about this, Feb ‘07, and we had 12 months onAnd I think the other thing we've found, like, Dan
the project and then went live in July ‘08.probably had about 20 grievances against him, but
We looked at it from a few ways, so what wethere was no consequential management within
wanted to do was get experience round theITV, so they could give whatever abuse they
table; people who'd been through this before. Wewanted, but they were never disciplined for it. So
had a solution partner, which was Deloitte: we hadwe started escalating things to HR, and saying
a build partner which was Capgemini, and then we"look, we're just not going to tolerate this sort of
utilized people within the business so ultimatelybehavior towards our staff, or we will start to
those people could go on and use that experiencelose them." So they did start listening, and there
going forward, and keep that knowledge.have been a few individuals disciplined for their
Louise: We had a business plan in place in termsabusive and aggressive behavior towards us.
of the costs as well, in terms of what weAudience member: Where was your sponsorship
expected it to cost. coming from?
Ian: Yeah - which was blown out of the water, asIan: it's a great point - because if you are kicking
these things usually are. So yeah, there was anoff on a project like this you really do need the
awful lot of planning in there, but you know,sponsorship from the top.
because I was on the project as well, so lookingLouise: The Group FD did sponsor it, didn't he?
back at that, did we plan enough? No, I don't thinkIan: He did, yeah. Unfortunately the Group FD's
we did. I think in certain areas we got itnow leaving… But…
completely wrong, so for example the fact thatLouise: I think the other thing is, people don't
we didn't mandate training was the wrong thing toseem to listen, whether it's the Group FD or the
do. We've got basically anybody who joins ITVCEO. I think there's something like 40 per cent of
with the ability to buy, so anyone can raise athe business actually open the CEO's emails, so if
purchase order. Again I think that's completelythey don't listen to him when he sends out an
wrong. So we're really struggling there. We'reemail, what chance has anybody got further
turning the corner, we're starting to get reportsdown the line? I don't know if it's just media or if
and things like that which help us break downthe BBC find the same, but it is a very odd
these barriers, but it has been really difficult.industry.
Audience member: So you're planning as you goAudience member: Did you expect this kind of
along?resistance when you started the project?
Ian: Yeah, absolutely, when I said earlier, we'veIan: Not at all, not at all. I think as much as we
got five change managers at the moment whotried to mandate everything, everybody was
are continually looking at process and procedure.always looking for a workaround because they're
Audience member: Which functions of theused to their ways of working, they've always
organization are you providing services in?done it this way, and you know ITV's not really
Louise: We've got Finance and Payroll, so withinvery good at change. It's very red-tape controlled
Finance we've got an R2R function, soif you like, and people just didn't get it.
management accounting, back office treasury,Audience member: If I were to think about a
Group finance. We've got a payroll function, we'vebunch of artists and filmmakers and freelancers
got an O2C; order to cash function in terms ofand stuff; that's probably the worst nightmare
the accounts receivables, we've got anyou can have… So I'm not completely surprised
Operational Systems Service Delivery, soby the reaction. And I was thinking, where would
systems side, the servicing side. Obviously thea sponsor, ahead of time, redress these things -
purchase-to-pay, so the Accounts Payable team.because otherwise you have to through these
That's it isn't it?things, it's funny but it's not so funny…
Ian: Yes, five departments.Louise: That's it. Certainly from Dan's experience,
Audience member: Did you deploy any kind ofDan is the business service centre director. He's
quick wins ?set up various shared service centers in the past,
Ian: It's quite funny initially because Dan - you'llhe's been at Diageo, he set up the Marks &
know  Dan, obviously - his initial reaction wasSpencer service centre, and he said he's never
"let's pull up the drawbridge", so Fortress Foleyexperienced anything like ITV, and said that he
started, didn't it? And at the time we weren't thatcould never have envisaged it.
engaged with our customer at all, it was justI think I'd certainly have… The selling of it, I think
about trying to get through the processes, andobviously it was sold as a finance project rather
get the transactions correct, so that' s what wethan as a complete cultural change project. I think
did for the first three months really. At that pointyou need to do the cultural change within the
we started to roll out, get engaged, get on thebusiness. I'd certainly have mandatory training of
road, talk to different people, and then we'restaff within the business; I wouldn't give them the
talking about the two-way buy-in so you get yourchoice. I'd ensure that they all had to have the
SLAs, your KPIs. In hindsight we'd have done thattraining. I I think I'd have restricted access: rather
first. But we were too late in the day.than having everybody have access to raise POs
Louise: I think we've been firefighting for so long,I think we'd have less users restricting POs. And I
haven't we, so we're just now getting out andthink the other thing we've found is we've
about in the business, and we need to be gettingbasically replicated the past and put it into the
out and about in the business, being more visible.new system, and I think with hindsight we should
But we have, we've been firefighting for thehave had a lot more data cleansing and getting it
last…right rather than just transferring it over. In terms
Audience member: Was it considered a risk toof go-live, I think possibly we could have delayed
actual scheduling?the go-live. Because certainly things like data
Ian: I think the biggest risk that we got was themigration, certainly in my area, have caused
pushback from our production business. Somassive problems. 
whatever we tried to do, they always hadIan: I think the other thing I would have done as
answers and were quite vocal about why itwell is have more communication with the
wouldn't work. Certainly with certain elements, andbusiness. Because I think communication through
on my side, the purchase-to-pay side, they wrotethe start of project would have been good just
seven pages about why purchase-to -pay doesn'tto get that buy-in, and I think that's where we
work. There wasn't one comment in there aboutlost out big-time.
how it could work for them, so that was where -Louise: I think certainly at the moment we've got
if you're looking at broadcast, certainly starting atthe KPIs in place that we‘ve measured from
the production side they were really quite vocalDay 1.… We've discussed SLAs with the
about saying "we can't make programs working incustomers in the business. What we've found with
this control environment."SLAs is that they're all there drafted but the
Louise: We had the experience where Dan wentcustomers are reluctant to sign them - I think
out on site that day - where did he go that daybecause of the two-way thing, so we have
when they hadn't been paid?reverse KPIs in there, so for instance "we'll deliver
Ian: Yeah, so we were - what was the program?all your balance sheet reconciliations but you need
We were making a program just over the roadto clear all your outstanding items." And they don't
from the main studios, and the basis was that welike the visibility. It's as if we're uncovering
had an awful lot of freelance population that weresomething. So we're finding we need to get out
being paid weekly, and for a number of differentmore into the business. We've been to, in the
reasons we hadn't paid any of them. So Dan hadshared service centre we've not been out in the
to go over and face off against these guys andbusiness enough promoting it and because we're
he walked into the set past a load of people andbased in Manchester and we've got some
sat down in the middle of a room. And eventuallycustomers in Leeds, some in Manchester, a lot in
these guys started to walk back in and theyLondon, we've got them all over the country, so
were sort of walking in with baseball bats andwe need to be more visible and now hand over
things, you know…  So Dan being the man hethe operation to the next level of managers, and
is, he managed to sweet-talk them round, youfor us to go out and actually sell it, and really get
know, and we did manage to pay everyone, butto the bottom of some of the issues.
yeah, it's been interesting.Audience member: I'm just wondering if you can
Audience member: Were your customers everput your finger on a particular point in time that
able to form a group to articulate what theyyou could put your finger on or one event that
thought they needed, or was it all negative?helped you turn the corner?
Louise: It was all negative, the majority of theLouise: I think when we went business-as-usual at
customers out there in the business werethe end of March. Year-end was hell, you know,
negative, there was the odd FD or financeDecember, year-end, the audit, lots of long hours
controller that was good and did have a fewworked, and I think the end of March we actually
positive words to say, but the majority weredid see the light at the end of the tunnel, we'd
negative, it's like Ian said, a list of: "how and whyturned the corner and declared business as usual
we can't do it" but no realistic solutions in termsat the end of March, and the volume of emails
of "if you did it like this it would really help us".reduced, the volume of calls reduced, the abuse
They didn't deal in facts; it was all noise.did reduce…
Audience member: So given those comments, didIan: Thankfully, yeah… I think the other thing
you end up adapting any of your processes tofrom me about when it started to reduce was
the s of the business?probably the beginning of March for me, on the
Ian: It's not about adapting the processes; it'sbasis that the number of questions that were
about adapting and changing the mindset of thebeing escalated up to me were reducing, and also
business. So we know the controls we've got inwhen the questions did arrive, we'd done
place work, and so the focus has to be from theeverything from our side correctly, and then it's
other side, so when you're planning a productionusually the business that's done something
you know months in advance where you're goingincorrectly as the result of a non-payment.
to be shooting, what your location is, and it's justThis article was first published on the Shared
changing the mindset. So if they plan correctlyServices & Outsourcing Network (SSON);
know - and that's what we're working with themread it here 
on - if they plan it correctly they can buildAbout The Shared Services & Outsourcing
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Louise: I think that's one of the things: the staffcommunity of shared services and outsourcing
had to be really bold and thick-skinned, because inprofessionals, with over 25,000 members.
terms of the abuse they got, they couldn't justSSON provides the roof under which key industry
roll over, they had to get them to comply withexperts and organizations share their experience,
the processes, otherwise they'd never comply.knowledge and tools, and practitioner peers
Now we've got, what, 80% of the businessconnect with other all over the world, both face
raising POs? So I think if we'd have said "don'tto face and online.
worry, carry on doing what you're doing, don'tSSON focuses on developing its members through
raise POs," I think we'd never have got to whereproviding training, tools, and networking
we are. So we have had to be strict, and say,opportunities. SSON staff works from international
"look, if you want them paying, you have to raiseoffices in New York, London, Singapore, Sydney,
a PO." I think there is an element of standing yourBerlin and Dubai to research current trends and
ground, saying "look, it may have been like thatdevelopments in shared services.
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