For the last 20 years, EFQM has been committed to shaping business leaders to create a world in

which European organisations are recognised as the benchmark for sustainable economic growth.

We believe in the strength of practice based learning, rather than teaching leadership skills, tips and

tricks in a class room setting. Our Pegasus Programme was developed in cooperation with Solvay’s

Corporate University and provides a unique opportunity to improve core leadership skills through

peer assessments. It offers emerging business leaders the opportunity to learn and apply new skills

in a real organization. Through this exercise, delegates practice the skills associated with quickly

understanding a new professional context, formulating priorities, and more effectively interacting

with senior management.

Each programme is based around a real business issue from a host company. The host will provide

background information for analysis, plus make available the relevant managers and people to fully

understand the problem they are facing. In return, they are seeking suggestions from the delegates,

based on their collective experience and insights,

on how to progress.

The participants come from a range of different

companies, sectors and countries. Part of the

experience is learning how to work effectively

together as a team to complete the task at hand.

EFQM guides participants through the 7 day

program, spread over 2 sessions during a period

of 4–6 weeks. In the first session of 3 days in

Brussels, participants are coached on techniques

of strategic analysis and assessments, using

materials and information from the host

company. The second, 4 day assignment takes

place on the host’s premises. Interviews are

conducted with relevant people, conclusions and

recommendations built and, finally, a change

workshop run with senior managers from the

host.

The EFQM Pegasus Programme is designed for leaders with the capability to take a step up in

responsibility, towards managing a business unit, or to access new areas of responsibility. It is aimed

at mid-career and emerging leaders with 10 to 20 years of professional experience from all

backgrounds, companies, industries, and countries.

KPN is the leading telecommunications and ICT service provider in The Netherlands much admired

for its sector-leading levels of profitability achieved over the last ten years under the leadership of

former CEO Ad Scheepbouwer and current CEO Eelco Blok.

Continued growth within the Netherlands is not guaranteed: competition is aggressive and

increasing. The senior management of KPN’s Business Market Segment is nevertheless determined

to pursue a policy of ‘Back to Growth’ through an increased ‘share of wallet’ among existing

customers, growing the number of domains in which it is active and differentiating on excellent

customer experience.

Your mission within this Pegasus Assignment is to understand and advise the management team of

the KPN Business Market Segment how they can place themselves among the very best service

provider in the business sector in the Netherlands by the end of 2012: not just among telecoms

operators but in comparison to the very best of any service company.

In the Netherlands KPN offers wireline and wireless telephony, internet and TV to consumers, end-

to-end telecommunications and ICT services to business customers. KPN’s subsidiary Getronics

operates a global ICT services company with a market-leading position in the Benelux, offering end-

to-end solutions in infrastructure and network-related IT. In Germany and Belgium, KPN pursues a

multi-brand strategy in its mobile operations and holds number three market positions through E-

Plus and BASE. KPN provides wholesale network services to third parties and operates an efficient IP-

based infrastructure with global scale in international wholesale through iBasis. KPN aims to develop

an environment for its staff where they are expected to take responsibility early in their career and

to contribute to the business and their professional development.

The Business Market Segment of KPN has around

2,200 employees (compared with the KPN total of

19,200 for the Netherlands and 30,600 for the

group as a whole including international

operations). In 2010 turnover was of the order of

€2.5 billion (group turnover was €13.4 billion).

KPN Business Market divides the business market

into four segments by the number of employees of the customer: from small / home office of less

than 5 employees to major organisations of 150 employees or more.

The key dates for the KPN Business market case as part of the Pegasus Programme are:

Learning week (3 –days classroom): 31 August, 1st and 2nd September 2011, Belgium

4-days on site: 20th – 23rd September, the Hague, The Netherlands

Participants would need to be available to attend both these sessions to complete the programme.

Small Office / Home Office

Small

Medium

Major

‘MKB’

Large Enterprises

Number of

employees

150 - 800

50 - 149

5 - 49

<5

Market segments based on number of employees of the customer

Market shares

The Netherlands Fixed telephony ~50%

Mobile

telephony

~50%

Broadband ~41%

Mobile

international

E-Plus ~16%

BASE >18%

Strategic building blocks to sustain EBITDA growth

Customer focus is our starting point, thus we will become the

preferred Business market provider.

We leverage our market leading positions, by focusing on

market share growth and cross- and upselling opportunities.

We migrate our business to the All-IP platform, through which

we will offer IP-based services and Fibre-to-the-Office.

We will move up the value chain towards managed ICT-services.

The Getronics acquisition is instrumental in achieving this goal.

Portfolio simplification allows us to phase-out legacy services.

Customer demand will remain the principle for this process.

Cost reductions will be obtained through this simplification,

increased productivity and lower IT costs.

Customer figures*

Wire-line customers 4.4 million

Mobile customers 33.9 million

Internet customers 2.5 million

Television customers 1.2 million

* Figures at December 31, 2010

Strategy of KPN Business Market

The following ambitions have been set for

2010:

Become the leading managed ICT

service provider

Preferred business market supplier

Revenue growth with best-in-class,

margins for 2021

The strategic building blocks supporting

these ambitions are described in the next

text box.

KPN: De beste thuisspelende Telco-ICT dienstverlener in Europa

Customer preference Connected with employees

and society

Marketleader strategic

market positions

Best in class financial

performance

Excellent Customer

Experience

Growth Domains

as a basis for (future) growth

and to increase lock-in to

traditional portfolio

Share of Wallet

Win single acces

Increase growth & profit

data

Increase share of wallet

(SOW)

Make portfolio choices

Maximise value fixed and

mobile

Be the best service

provider in NL

Develop one NL way of

working

Increase customer quality

& decrease cost

Increase grip on distribution &

customer contact

KPN: Best incumbent Telco-ICT service provider in Europe

Strong customer centric

up- & cross sell approach

to compensate negative

revenu market trend

to increase customer

satisfaction and loyalty

Omzet EBITDA FCF

Increasing performance on the ‘Net Promoter Score’’

2009 2010

2011

NPS

Improved peformance.

Brand Preference MBO

Increasingly higher percentages

Mobile Voice / Data

Fixed Voice / Data

Higher levels of profitability

To target improvements KPN has chosen one of the toughest metrics: the Net Promoter Score (or

‘NPS’), which seeks to maximise the percentage of customers willing to recommend the company

and reduce to an insignificant percentage the proportion who are not satisfied. It is a target which

stretches notions of what it means to have good customer relationships: customers who are ‘merely’

satisfied do not count in the score.

NPS is taken seriously by KPN: an ‘NPS Board’ has been assigned to direct progress towards initiatives

that are most likely to create real breakthroughs in the customer’s experience.

The NPS board has defined the following key focus areas for action:

1. Aligning service proposition and customer promise

It’s not only what you do: it’s making sure that you are able to make reliable promises to the

customer and then keep them. An explicit assignment of responsibilities has been defined for all

elements of the customer process: each of Business Market’s top 50 managers is responsible for

ensuring that progress is made on one of more specific elements of the ‘customer promise’.

2. Empowerment to solve customer problems

KPN Business Market has been careful to review how the delegation of authority can be pushed as

close as possible to the customer: rather than seek approval from the hierarchy, front line agents

have increased capability and power to take decisions

3. Integrated view of the customer picture

By integrating the various sources of data from CRM, Operational and Financial systems, KPN

Business Market is building a sophisticated view of what is happening in front of the customer and

continuous measurement of their preferences. The NPS metric is not just a high level target: it is also

measured and actionable at the customer level.

4. Simplicity

Customers value clarity and the ease with which they can do business with KPN. Equally, KPN

benefits from reducing the costs associated with maintaining many or complex processes. By

focussing on simplicity in transactions, KPN can both improve satisfaction and reduce cost.

5. Online customer care

Business customers increasingly want solutions that are transparent and easy to access on line.

Consistent with its technological and market positioning KPN Business Market aims to give its

business customers the most complete and satisfying online customer service.

The description of customer and

production processes is

compliant with the Telecom Operators

Map (e-TOM).

This model of the international

Telecom Management Forum is

agreed upon by the 700 corporate

members of IT and Telecom operators

in 195 countries.

Are the quality programmes underway in KPN likely to deliver on the ambition to be the best

service company in the Netherlands? Is this strategy (to be a service leader) clearly defined,

consistently and effectively deployed throughout the organisation?

On site in the Hague, you will have the opportunity to interview a wide variety of managers,

representing all the functions relevant to the strategy of the Business Market and in particular those

who can provide a perspective on how the organisation aims to make breakthrough performance in

customer service. Your key senior management contacts will be John van Vianen CEO of Business

Market and Annelore Buijs, who heads the largest unit within Business Market, Customer Service and

Operations.

Prior to arriving in the Hague EFQM will have organised a site visit and interview schedule, based on

the focus and priorities agreed at the initial session in Brussels.

You will have the opportunity to engage with senior

managers of KPN-Business Market at the end of the

four day assignment in the Hague. Going beyond the

traditional feedback of and EFQM assessment, the team

will lead participants from KPN through a workshop

during which the first steps to deploy your

recommendations will be agreed. Your feedback will

include recommendations for ‘quick wins’ as well as

more fundamental change.

In doing so you will be following in good footsteps: in

March 2007 an earlier Pegasus team worked with the forerunner to the Customer Service and

Operations team, helping them on their path to success.

©EFQM 2011

EFQM

Avenue des Olympiades 2

B-1140 Brussels – Belgium

Tel : +32 2 775 3511

Fax : +32 2 775 3535

Email : info@efqm.org

http://www.efqm.org

In the last 4 years, the programme has been run in 13 different organisations, including Solvay, Volvo

Cars, Lloyds Banking Group, T-Systems Multi-Media Solutions, Grundfos, Robert Bosch, Siemens

Congleton in addition to an earlier programme also at KPN.

Excellent and innovative program bringing inputs from Best in Class companies that will help to

support our road to Excellence. Special mention to the win-win situation installed in this program with

Peer Assist session bringing value for the host. Olivier Campy, Vice President, Sanden Manufacturing

Europe

I thought it was an excellent programme…Especially valuable with Pegasus is the contact with the

host organisation: you get to know whether your recommendations are valuable or not – something

that is not possible from classroom case studies alone. Mark Finnie, Group Marketing Director, Strix

For more information or registration, please contact us via e-mail (Pegasus@efqm.org) or via

telephone (+32 2 775 3511). The price for this 2 week programme is € 5000 for member

organisations and € 7000 for non-affiliated companies.