Rogers Cable Harvard Case Solution & Analysis

Rogers Cable Case Solution

Issue

Rogers has accumulated the cost for repeated truck roll visits as many installations were unsuccessful in the first attempt. The total repeated cost for truck rollers is $5,280, 000.

16 percent of 550,000 truck rolls is 88,000 truck rolls, which are repeated. $60 per truck roll and service call multiplied by 88,000 is equal to $5,280,000 cost annually.

The cost identified in the issue originated from $50 per truck visit plus $10 per service related phone call a total of $60 per repeated service fix. There are 550,000 truck rolls annually and 16 percent of truck rolls are related to repeated visit.

Backgrounds

  • In 1999, CRTC passed the application that allowed local carriers to change the content that passes through their networks. This amendment allowed Bell to enter the Internet Service Industry and Rogers did not have exclusive access to supplying the internet within its footprints.
  • Competition meant that Rogers would have to consider its costing and customer service.
  • Business Partners may have vague ideas about the expected quality by Rogers.
  • $20 million dollars invested in sophisticated internal information system by Rogers did not help improve its customer support issues. 20 to 30 percent of customers were unable to use the technology properly in navigating to the appropriate support areas established by the automated system.
  • Only 18% of the workforce in charge of installations and service activities are Rogers’s employees. Nationwide, there are 700-800 contractors, of which 126 to 144 are Rogers’ employees.
  • Most field-service technician jobs were outsourced to 36 companies who had the necessary skills in the customer’s region.
  • No Centralized System connected the business partners i.e. they did not know whether it was the first service call or not/no identified service standards by Rogers.
  • Lack of standardized training program/evaluation, while trainers are given a significant amount of authority.

Alternatives and Analysis

Monitor technicians and aware them of their performance issues, as done in the test pilot. The results in the test pilot have proven to be quite promising and they can be implemented as an extremely cost effective method of performance evaluation.

Invest in a standardized form of training program and technical protocol for all future and current technicians in order to ensure that service is consistent and well done. Consider employing own technicians, which means that during off-season, Rogers's technicians can be cross trained as CSR.

Install the proposed inventory management system, the costs of 6 months and $1 million are peanuts compared what is being lost. Moreover, it furthers the standardization process.

Monthly Scorecard would provide feedback to the technician on their performance. The scorecards can also provide information to business partners on who needs to improve their technician abilities in order to perform their jobs and to keep their contract with Rogers Cable.

Design a program that will enable technicians to write a report on each step of the process that was completed in the customer's home. This report will be saved in the internal data system of the company. Furthermore, the Management and HR will be able to view the report.

Scorecard analysis

  • The cost of implementing this program is 60000$ Fixed cost and an additional cost of the time spent by the analyst, which is 6000 to 15000 based on the analyst annual salary (10%-25% x 60000).
  • Cost saving would be calculated by considering the results from the test pilot; the cost saving would be 4,290,000 (5,280,000-(3% x 550,000 truck rolls x 60))
  • It identifies who is a good performer and who is not
  • Having a scorecard identifies the quality expected by Rogers Cable
  • Business partners may not react well if they are identified as low performers, but there substitutable performance is absolutely in accordance to the firm’s situation........................                                                                                                        This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
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