T-Mobile (UK) Limited

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FCm minimised travel volume reductions by maximising purchasing efficiencies for T-Mobile.

The challenges

With an already successful travel program in place in terms of cost containment and compliance, T-Mobile International introduced a two year European wide, 'Save for Growth' initiative. The initiative sought to reduce travel spend by €20million per annum with a €5.2million UK reduction, representing a 48 per cent cut in expenditure. It was recognized within T-Mobile that savings of such a magnitude could have a real impact on business operations. It was estimated that up to 80 per cent of the savings would have to come from a reduction in travel activity, with the remaining 20 per cent deriving from more effective travel purchasing.

Underlying the primary savings objective, a secondary target for FCm was to minimise cuts in travel volume by maximising purchasing efficiencies.

T-Mobile were specifically looking for:

• FCm to take an active lead in idea generation and cost saving recommendations
• FCm to fully understand the requirements of the initiative and to drive behavioral change amongst travellers through communication
• FCm and T-Mobile to interact at all levels and to work on their own initiative within T-Mobile's organisation.

How was the project executed?

Despite the fact that T-Mobile enjoyed a well managed travel program, with excellent compliance, aggressive supplier program and engagement of users through an established and empowered Travel Focus Group, 'TFG', what 'SfG' provided us with was a company wide initiative that was to have clear measured results. It was the catalyst that was to bring about sweeping behavioural changes.

Regardless of the success of the existing program, FCm still went back to basics to review all areas of opportunity from policy, supplier base to traveller behaviour.

• Policy - 'SfG' Guidelines were written and issued to enhance the existing policy.
• Data Management - implemented exception reporting and board report packs to support 'SfG' guidelines.
• Supplier Programme - enhanced the programme with additional suppliers.
• Communication Program - enhanced the existing program with regular 'SfG' updates and results.
• Traveller Behaviour - undertook a full review of trips taken in terms of timescales, overnight hotel accommodation, flight availability, need to travel, ownership of trip - in terms of who managed the cost and who had the power within the business when calling meetings.
• Servicing Team - jointly agreed not to initially downsize the team due to uncertainty of the future look and feel of the programme and the need to utilise resource to drive savings and behavioural change.

In order to manage behavioural change, we engaged internal T-Mobile Change Management experts and designed two, one day courses attended by FCm and T-Mobile employees. The workshops were designed to tackle understanding, ownership, changes and the 'how'. 'SfG' needed ownership and a single input / output channel that would deliver a single message... and that was ultimately the FCm Travel Team.

The results

FCm achieved the target ahead of time and on budget, forging improved deals with suppliers and a closer working relationship with T-Mobile, with lower then anticipated travel volume reduction. A target of €5.2M savings, we achieved a €6.9M reduction in travel expenditure. Air spend reduced by 46 per cent while transactions reduced by only 28 per cent. Similarly with hotels, spend reduced by 27 per cent and transactions by 23 per cent.