An
IT-based streamlining
programme by Parcelforce has helped turn around initial losses
of £193m to make a profit of £18m over the past 27 months, Vanessa
Leeson, managing director of the delivery company, told the
spring meeting
of the BCS Elite group.
Following its split from Royal Mail in 1992, Parcelforce
embarked on a
series of major IT changes to cut costs, improve the delivery
rate and reduce its headcount.
Leeson told the BCS IT directors group that simplification was
key, with every aspect of the organisation's systems subject to
rationalisation. The network was downsized and the company reduced
the total number of systems used from 47 to 21.
A key project was to increase the functionality in the handheld
devices used by delivery staff and ensure that they were integrated
with the company's streamlined IT set-up. As part of this, the
company introduced a policy for all handhelds, which run bespoke
software, to be upgraded every three years.
The IT team also developed a strategy to use simpler systems and
make the business more web-focused, said Leeson. It learnt from
other organisations along the way, including
the
Ministry of Defence with its "department in a box" mobile
system and its satellite technology.
This led to a
web-enabled parcel tracking system, which lets Parcelforce
check that a parcel has arrived at its destination via text
messaging.
"IT should never be the reason to lose or fail to win business,"
said Leeson. "Parcelforce's IT team attends high-level meetings
when discussing new business projects to ensure they are kept in
the loop at all times."
She said success, in the short and long term, relied on having
smart processes, a delivery culture, effective governance and good
leadership. Leeson identified key lessons for a successful change
programme:
● Have clear, understandable goals
● Paint a compelling picture of the need to change to staff
● Do not duck bad news
● Create time and space to discuss how people feel
● Being cash poor is good for change
● Have clear priorities
● Balance change and high service and cost reduction
● Rolling talent injection - let everyone know why new people
are being brought in
● All things decay - use a rolling refresh to maintain a dream
team
● Business readiness processes are vital
● Put power in the right place.
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BCS Elite Group website
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