RENT REVIEW PROGRAMME

What the client said.

“O2 and Pinnacle worked very successfully on our Rent Reductions/Revenue Generation programme through the second half of 2009. Pinnacle were pivotal to designing a Project Plan, setting key metrics, timelines and reporting to internal steering meetings on progress. The projects are on target to deliver the business objectives and this has been achieved through close collaboration with Pinnacle.”

- Tom Heffernan, Property Team Manager, O2

Review of Site Rental and Lease Costs for leading Irish Mobile Network Operator

Background
Site rental and lease costs represent the single biggest operational expenditure category for any Mobile Network Operator (“MNO”). In 2009 Telefónica O2 Ireland Ltd decided to undertake a major review of all cost reduction and revenue opportunities across its entire site portfolio. This programme consisted of three major workstreams:

Rent Review;
Revenue Generation;
Site Consolidation.

Pinnacle Role
O2’s Estate Management team engaged one of Pinnacle’s Senior Managers to help plan and manage the Rent Review workstream. This work encompassed developing the approach and plan to deliver on the programme’s objectives as well as defining and managing key performance metrics to monitor progress through the schedule.

The Work
Major elements of the programme included:

Formalising workstream objectives.
Establishing the Delivery Team structure.
Training workshop design and delivery.
Developing the approach for Rent Review workstream delivery.
Planning the phasing and milestones for each workstream.
Design and delivery of key performance metrics in support of stakeholder communications across all workstreams.
Stakeholder and Executive communications and progress tracking.
Resource planning and allocation.

The Results
The following results were achieved:

All workstreams successfully launched in July 2009.
Co-ordinated approach across all three workstreams enabling effective delivery.
Set of key performance metrics developed linking effort and outcome across all workstreams.
Dynamic resource allocation and scheduling based on information delivered by key performance metrics.
Initial cost reduction and revenue targets revised upwards based on success of team.
Cost reduction performance in line with market-leading performers.
Delivery approach and metrics used as template by other Telefónica operating businesses around Europe in similar programmes.