TechGuys is the provider of installation, advice, support and repair services for the DSGi Group, for the customers of both Currys and PC World. It not only provides the service to underpin the Customer Support Agreements but also provides added-value services such as PC health-checks, data backups, the ‘Techfriend’ 365 day a year technical helpline and the set up of home entertainment systems.
Where were they?
In an increasingly difficult and competitive market, the service provided by TechGuys was recognised as being critical to DSGi’s overall positioning as a specialist electricals retailer. The TechGuys operation, which involved two call centres, a nation-wide field engineering force, five regional repair workshops, a specialist laptop repair centre and a spares distribution operation, was falling well short of the service quality and cost-effectiveness needed to compete. Engineer visits per day and first time fix rates were both considerably below the industry best.
In late 2007, the newly appointed MD of TechGuys initiated a review of their strategy. In early 2008, Berkeley was asked to provide support to this process.
How did Berkeley help?
Through providing structure to the process and clarity of the required outputs, Berkeley enabled the leadership team and the supporting project team to better focus their efforts. At the same time Berkeley helped pull together research, build a financial model, evaluate operating model options and shape the proposed investment programme and associated business case.
Berkeley also worked with the Head of HR to complete a new organisational design for all the central functions, with an associated 25% headcount saving.
Finally, following Board approval of the strategy, Berkeley helped in the detailed planning and mobilisation of the first phase of the programme.
Where are they now?
In June 2008, the Board approved the strategy and the 3 year, £30 – 40m investment programme. After just six months, tremendous progress had already been made:
- The consultation process around the major organisational changes and associated redundancies has been completed.
- Central costs have been reduced by over 25%.
- The field engineering force has been restructured around 19 regional hubs; visits per day and first time fix rates have increased substantially
- The five regional repair centres have been closed
- A programme of recruitment, skills development and cultural change has been launched
- The branding has been reviewed and the packaging of the service offer has been simplified, for customers and colleagues alike
Most importantly, the service quality is up and the operating cost base is down, with annualised costs reduced by over £19m pa.
We would not have got so far so quickly without Berkeley’s help. By providing us with some clear structure they really helped us through the process and provided good challenge and focus to our thinking. What’s more, the whole team found them very easy to work with - they all seem to have a refreshing lack of arrogance.
Tom Barry, MD of TechGuys