CEXM JANUARY STEERCO TELKOM GROUP CEXM STEERCO UPDATE

CEXM – JANUARY STEERCO TELKOM GROUP CEXM STEERCO UPDATE REPORT: CONTACT CENTRES PERFORMANCE (Rashid Abrahams) PAIN POINT INTERVENTION PROGRESS TO DATE & CRITICAL NEXT STEPS REQUIREMENT FROM STEERCO NB: WIP……UPDATE TO BE PRESENTED AT NEXT STEERCO. The Project Lead came on board second half of December, and took pre-scheduled leave in January. Project Work to commence January 21 st, 2013 1

The 6 Projects Work to Date 5. Customer Feedback Communication Update January 2013 Rashid Abrahams 2

CEXM – JANUARY STEERCO TELKOM GROUP CEXM STEERCO UPDATE REPORT: CUSTOMER FEEDBACK COMMUNICATION (Japie van Niekerk) PAIN POINT INTERVENTION PROGRESS TO DATE & CRITICAL NEXT STEPS • Appointment scheduling at Order placing Fault reporting • Scheduling on OMS (day) • AM/PM slots (NEW) • Completed • Pro-active appointment confirmation (SMS / Telephonic/…) • T-2 SMS T-1 Call • NFS piloting (Prelim results promising) • SMS at: • Order capturing • Order scheduling • Fault logging • Billing initiated • Dispute logged • Escalation (still to verify) • Automated (Expanding to other segments) • Pro-active communication at critical stages in the value chain to reduce re-entering Call Center progress calls • Progress communication with NFS dropouts to reduce reentering calls • Customer friendly SMS/e-mail • Establish a pilot in NFS to manage progress communication (NEW) • Validation REQUIREMENT FROM STEERCO • In principle approval • Approval for pilot (process & resource implications) • SMS – 30% • E-mails – not started yet 3

The 6 Projects Work to Date 5. IT Systems & Business Processes Update January 2013 Pushkar Gokhale 4

CEXM – JANUARY STEERCO TELKOM GROUP CEXM STEERCO UPDATE REPORT: ITS & Business Processes for CEXM (Pushkar Gokhale) PAIN POINT 1. The systems & process to generate an order for the voice, broadband ISP products originating via the 3 rd party /External Sales Agent (ESA) sales channels is inefficient resulting in • Long & cumbersome ordering process • ~80% Fallouts due to unverified/inaccurate data captured at ESA endpoint 2. Inefficient ASDL modem swop out process for faulty modems that are under warranty resulting in customers being turned away at TDSs 3. Contact centre agents are unable to provide a customer same day installation /connectivity where constitutions are existing causing unnecessary delays with fulfilment of an order INTERVENTION 1. Design Dealer. Web (AMSS) Integration to CMSS - CR 9713 2. Conduct diagnostics to understand extent of problem at TDSs and field operations 3. Investigating the opportunity to fulfil order by enabling the reuse of existing constitutions upfront at the Contact Centres and TDSs 4. Investigating automated process at the Contact centres & TDSs to re-use existing constitutions to provide a customer same day installation /connectivity PROGRESS TO DATE & CRITICAL NEXT STEPS Progress 1. Partner impact assessment for Dealer. Web approved 2. Conducted observations at three TDSs and engaged field operations subject matter experts 3. An analysis was carried out on the manual interventions done at the FAMC where existing constitutions were re-used REQUIREMENT FROM STEERCO Permission to: Continue with initiatives [2] and [3] Critical Next Steps 1. Partner to continue with their Commercials (cost & timeline feasibility) 2. Brainstorm & implement countermeasures 5

The 6 Projects Work to Date Change Management & Communication Steerco Proposal Intervention/ Progress to Date, now with Change Management and Communication Plan January 2013 Tirelo Sibisi & Praveen Naidoo 6

CEXM – JANUARY STEERCO TELKOM GROUP CEXM PROGRAMME: 2012 – 2013 The Change Management & Communications 6 Months JAN/ FEB/ MAR 2013 CHANGE ELEMENT 1 CEXM Education/Awareness • Campaign for employees on impacted Value-Chains • • Establish Change governance structures Identify and on-board Change Sponsors/Champions Identify AS IS, TO BE and GAPS to be addressed Develop change interventions to address gaps APR/ MAY/ JUN 2013 SUGGESTED FOCUS POST JUNE 2013 • Implement change interventions and track feedback on customer experience • Address resistance/reward successes • Optimise change initiatives/processes • Ensure sustainment 2 TKG CEXM Communication • To specific impacted Service Value. Chain employees • Establish communications governance structures • Develop communications approach and plans per work stream with key owners • Determine channels and tactics per work stream • Roll out communication plan • Customise communication per work stream • Launch internal collaboration forum • On-going awareness • Optimize communications processes 3 Company CEXM Stakeholder Relations (internal) • Organised Labour • Management, Supervisors, All employees • Establish/use existing engagement forums • Engage stakeholders and create feedback mechanisms • Ensure on-going communication and feedback • Sustain communication initiatives with various stakeholders • Ensure feedback to stakeholders takes place to create trust relationships • On-going engagements 4 Skills and Competencies • Identify immediate behavioural/skills gap per streams • Select and develop appropriate L&D interventions/programs • Plan delivery mechanisms and roll out • Start with delivery (mid March) • Deliver solutions to close the gap • Evaluate impact on customer experience • Ensure future capacity building 5 KPI’s, Incentives and Recognition • Specific Service Value Chain • BU’s • Management/ Employee layer Etc. • Align KPI’s of Customer facing BU’s • Benchmark incentives schemes • Align incentives and recognition with CEXM objectives • Determine new KPI’s • Draft new PEP/e. PDMS contracts • Implement new incentives as required • Align personal development plans to new skills profile • Measure impact • Sustain changes • Coach Staff 7

Next Steps for the December 2012 to June 2013 q Project Interventions: Immediate Term Fix Interventions (6 months) – Identify immediate “Fix interventions” – Prioritise interventions and select area of testing/ pilot/ prototype development – Identify Interdependencies with other Company initiatives and align effort – Identify milestones and timelines , as well as the Intended Output per Project (6 X Project KPI’s) – Execute the crafted “new way” prototype – Engage MI for impact tracking – Prepare for industrialisation/ scale up and move prototype to BAU, with change management processes q Envisioning process for the Customer Experience Blue-print (6 months) - Identify internal pockets of excellence and ‘record’ for scaling up as feasible - Conduct external best-practice studies - Craft the Blue-print Outline socialise company-wide and direct the immediate term Fix Interventions - Create Business Case for Change and the CEXM Transformation Implementation Plan, and gain approvals - Incorporate CEXM Business case into the Company Strategic and Business Planning cycles for next fiscal (post 6 months project) q Change Management and Communication - Create a Change Management process, learning from other initiatives and aligning to Company change effort processes, and influencing other change best practices for customer experience transformation - MANCOs/OPCOs Updates and Involvement 8

Telkom Group CEXM Programme… Possible Impact on Employees CEXM Programme Elements Potential/ Possible Employee Impact Plans for Involvement/ Actions 1. CEXM Projects: Interventions steps: diagnosis, designing solutions, piloting solutions , execution management etc. Employees will provide information and be involved as part of their routine work. Specific briefings on Project Activities and interventions. Communication/ involvement through Natural teams and / Supervisors Managers 2. CEXM Education/Awareness • Campaign for all employees and those n impacted Value-Chains Employees will receive information about CEXM Programme and Projects/ Interventions Use of Company Communication Channels 3. CEXM Communication • To specific impacted Service Value-Chain employees Directed communication about CEXM Projects will be shared with employees Communication through natural teams Supervisors and Managers / Executives 4. Company CEXM Stakeholder Relations (internal) • Organised Labour • Management, Supervisors, All employees The Company will keep OL and management informed about the CEXM developments, and engage as appropriate Organised Labour updates for information Follow the established OL involvement channels as per Agreements when required 5. Skills and Competencies Employees, Supervisors, Managers Possible training on customer experience and ‘new business as usual’ work routines and business processes, systems etc. Use existing Company training channels when required 6. KPI’s, Incentives and Recognition • Specific Service Value Chain • BU’s • Management/ Employee layer Etc. Possible change in KPI’s. Use of existing policies, processes, engagement forums (OL) and programmes to engage and inform. Some JD’s might be impacted (not identified yet at this stage) Engagement as per Agreements and Company policies and processes 7. Work-Roles/ JD’s 9

PRESENTATION OUTLINE CEXM Programme Update CEXM Programme Overview & Approach The 6 Projects Activities since The High Level Approach of the CEXM Programme The High Level Plans and Work to Date per Project 1 November 2012 Work to Date Governance Programme Organisation, Reporting and Decisionmaking entities 10

CEXM Governance • Governance – The CEXM Programme has a Managing Executive CEXM reporting (operationally) to MD Consumer & Retail Services, as CEXM (improvement) Champion for the Company – There are Project Leads per project , seconded fulltime reporting to the ME , for a set period – The CEXM Programme is governed through the CEXM Steerco, with rotating chairmanship – There will be monthly EXCO updates, as well as periodic updates for BU MANCO/OPCO’s. • Role of Company Executives (EXCO etc) – Sign off and institutionalise the ONE Telkom Customer Experience Blueprint across the Company, once crafted. This will enable co-ordinated short term and long-term efforts. – Key Organisational Decisions when required, for instance on transformational interventions – Resources • Budget • Project team members • External resources when required – Enable traction, and ensure scaling up and industrialisation of “new ways’ within BU’s across the Company – Manage the “new BAU” and embed in each BU as required – Facilitate the organisational transformation of Telkom towards a customer-led company with an entrenched customer culture (to be defined/ refined) 11

CEXM Governance Structure EXCO/ Transformation Office MD CEXM Steerco. Rotating Chairmanship M. Mavuso Company CEXM Sponsor CK. Mokoena Company CEXM ME BU Implementation Coordination A. Venter L. Maitisa N. Duma J van Niekerk TB e m. M s ber P. Gokhale R. Abraham Change Mngnt . m ea TC & R T ect j Pro TN&W ITS Corporate Functions & OL Corporate Functions : Team Members/ Involvement as and when required 12

In Conclusion. . What will make this Programme successful. . . 13

In Summary. . As at 30 January 2013 • In the immediate term, the Telkom Group CEXM Programme focus is on the low/no investment high impact projects that has been identified by the Project teams. Focus is first narrow, then gets expanded. . . – The ADSL, ISP, PSTN projects, as well as the Data Quality project will craft ‘Prototypes’, test them , industrialise into businessas-usual, and scale up across the value-chain and/or across the Company – Development of Prototypes will be in LAU 44 and 31 in Gauteng/ Central and LAU’s 11 and 14 in Western Cape. – The Call Centre an Customer Feedback Communication projects will focus on specific aspects of customer touch-points/ and service delivery value-chain, starting with Order management, Installations & Activations, as well as Assurance – Billing will be given specific focus, and the full billing business process will be reviewed and improved • The Group and BU CEXM Projects Alignment Mapping has commenced. Duplications and overlaps will be identified and streamlined for impact, starting with ADSL, ISP, PSTN and Call Centre interventions. The targeted CEXM projects and other CEXM impacting projects are from: – Telkom Business. CEXM and other projects like Channels – Telkom Consumer Services , such as the Broadband Churn Reduction Project – Gauteng Turn-Around project and the Operations Optimisation Project – NGNEC • For longer-term interventions, the development of the Telkom Group Customer Experience Blueprint will commence soon, and will inform and be influenced by the TKG CEXM Programme work in progress, as well as other Company-wide projects – Best Practice benchmarks will be conducted locally and internationally • Change Management & Communications interventions, involvement of all stakeholders; at both Project-level and Company-wide, will commence February 2013. 14

Telkom CEXM Critical Success Factors. . . . Company-wide commitment to ONE CEXM plan; and alignment in execution and measures q CEXM based on Company Strategy and Business Plan…. . The customers are here to stay. q One Telkom CEXM Blue-Print to achieve the long-term desired Customer Experience end-state q One Customer Service Value Chain , driven by VOC and EOC (eye of the customer) § Outside-In view versus Inside operational focus in planning, measures and prioritisation of interventions § View the Service Value Chain as the Customer Experiences it and not from internal operational focus q One CEXM Execution Plan of cross-BU interventions , with BU specific tactical priorities q Managing the interdependencies of key Company-wide Projects, to maximise outputs and enhance impact q Build a Customer Culture and change employee behaviour § Organisation: for customer experience and focus resources towards Customer Touch-points, while ensuring cost-effective operations § KPI’s and Incentives: to drive customer experience improvement: front-end and back-end alignment in targets and measures § Competencies: management style and employees skills and attitude § Communication and involvement of all Stakeholders…. . enabling change and transformation 15

Thank you! Charlotte K. Mokoena and the CEXM Programme Team 16