the deputy steps down (part3)
About every 15 to 18 months Bell Canada requests rate increases from the C.R.T.C.(the rate regulator).C.R.T.C asks the Dept. of
Communications if the Bell forecasts of revenues and expenses and profit are correct.The dept. of Communications had a very accurate model and tracked actual revenues and profits within 1 to 2 %.Then Bell would get their requested rate increases
First the director-general of the branch of Communications keeping the model was put on French training and then the rumors were that the forecasting model was flawed.The new director-general was asked by Treasury Board to check out the forecasting model.It was found out that the model was held together by bubble gum;they had a number of dummy variables that they could assign values to.It appeared that the only way this model could track Bell's numbers was if Bell management met with the Communication's deputy and told him what their figures would be beforehand.The deputy would ask the forecasting team to alter the dummy variables and the forecast would be within 1%.
The deputies at Treasury Board and Finance were watching and were horrified.Thirteen people were fired or moved.The deputy minister of Communications was kept in abeyance.He would do all the formal activities and get his picture taken but they brought a new(acting deputy) in for three months to check over the other's work and do all the required work for three months.The deputy's secretary would go to the new acting deputy to show him all the things that he would not know yet.The person they picked to be acting deputy was the person who found out that the old forecasting model was held together with bubble gum and found a new model that was very acuurate without talking to Bell beforehand.
Communications if the Bell forecasts of revenues and expenses and profit are correct.The dept. of Communications had a very accurate model and tracked actual revenues and profits within 1 to 2 %.Then Bell would get their requested rate increases
First the director-general of the branch of Communications keeping the model was put on French training and then the rumors were that the forecasting model was flawed.The new director-general was asked by Treasury Board to check out the forecasting model.It was found out that the model was held together by bubble gum;they had a number of dummy variables that they could assign values to.It appeared that the only way this model could track Bell's numbers was if Bell management met with the Communication's deputy and told him what their figures would be beforehand.The deputy would ask the forecasting team to alter the dummy variables and the forecast would be within 1%.
The deputies at Treasury Board and Finance were watching and were horrified.Thirteen people were fired or moved.The deputy minister of Communications was kept in abeyance.He would do all the formal activities and get his picture taken but they brought a new(acting deputy) in for three months to check over the other's work and do all the required work for three months.The deputy's secretary would go to the new acting deputy to show him all the things that he would not know yet.The person they picked to be acting deputy was the person who found out that the old forecasting model was held together with bubble gum and found a new model that was very acuurate without talking to Bell beforehand.
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