Knowledge is Relative
Knowledge is relative in any subject matter. We have all heard the saying “You Don’t Know What You Don’t Know.” This saying is indeed true wisdom and is especially relevant in the sourcing and negotiations of telecommunications agreements. As a 20 year veteran of the telecom negotiation business, experience has clearly shown that knowledge is not only “relative” but it is also the key driver of results. I have seen thousands of contracts and have been directly involved in fixing many suboptimal situations for enterprise customers. The common element in virtually all the bad or suboptimal contracts that most enterprises execute is the lack of true knowledge.
As a former carrier executive in charge of pricing, I can attest we (the carrier) undertook great effort to cloak and keep knowledge of the best price points to only a select few with a true need to know. Think about it, as this dynamic applies to virtually all businesses. If the entire company, especially the sales force, that is paid to sell, knew what the lowest available price points were, there would be incredible and undue pressure placed on the organization by these internal sales people to offer the lowest price in virtually all circumstances. Human behavior being what it is; most sellers’ of telecom services put up obstacles and barriers throughout their organizations, even at VP levels, to cloak their aggressive price points.
Given the perpetual, 25 year sustained year over year decline in telecom prices, everyone involved in selling or buying telecom services expects any new deal to be better than the old deal. While this is absolutely true and should be expected, it creates a reference trap that one easily can succumb to at great cost to the enterprise. Enterprise buyers are distracted by the seemingly large savings the new offer or contract from their carrier provides and accept a deal that delivers immediate savings but falls well short of the leading edge or world class standard that was possible. A far better question to ask and get answered is what is a world class contract?
This is the purpose of TelAuthority, to produce world-class contracts for our clients. Typically the difference between a so called good deal and a world class deal can be as much as 25%. Given the typical Fortune 500 company spends at least $10M per year on telecom services, extrapolating out the potential impact should be a wakeup call to all procurement and IT executives with fiduciary responsibility. TelAuthority has seen many enterprises fall victim to the limitations of knowledge. It is prudent to do everything possible to ensure this waste does not disadvantage your company.
Where does your company stand? What opportunities to leverage improvements and achieve the higher world-class standard exist right now? You must know these answers whether you speak with us or not. TelAuthority will provide the answers and convey the truth in validating your market position and identifying your opportunities for improvement. When times are tough and this knowledge is vital. You have everything to gain and nothing to lose. We look forward to speaking with you and providing the insight you deserve.
Written By: Pete Wilson, CEO, TelAuthority, LLC