Strategies for an Efficient & Highly Effective IT Support Organization

Strategies for an St rategies for an Eff icient & Eff icient &

HighlyHighly--Effect ive Effect ive Support Support

Organizat ion!Organizat ion!

Creating a customer-focused service delivery strategy

Peter McGarahanPresident / Founder

McGarahan & Associates

AgendaAgenda

• Introductions• Current economic situation• Areas of Opportunity• The Service-Profit Chain (seamless /

transparent service delivery) • Knowing what your customers want /

expect • Designing a customer-focused service

vision / strategy• Alignment with business goals /

objectives• Customer-focused service structure &

strategy

• The efficient / highly effective “Shift-Left” Strategy

• Service and support best practices including:

– Resolution Ownership– First Contact Resolution– Knowledge utilization– Team work / Proactive Support – Customer satisfaction / experience / QA – Measurement / reporting

• The Success tool kit• Your yalue proposition

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About The SpeakersAbout The Speakers

• Peter McGarahan, President McGarahan & Associates

• 12 years with PepsiCo/Taco Bell IT and Business Planning

• Managed the Service Desk and all of the IT Infrastructure for 4500 restaurants, 8 zone offices, field managers and Corporate office

• 2 years as a Product Manager for Vantive

• Executive Director for HDI

• 6 years with STI Knowledge/Help Desk 2000

• Founder, McGarahan & Associates (5 years)

• 2 years as Chairman, IT Infrastructure Management (www.itimassociation.com)

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Current Economic DriversCurrent Economic Drivers

• Challenging /cautious economic outlook for 2010.

• “Hold tight” budgets / staff – Enjoying the profit angle.

• Cost sensitive customers – Service providers cost concessions.

• Projects postponed, placed on-hold or canceled.

• Reevaluate budgets for cost reduction opportunities.

• Evaluate services to determine the cost, benefit and value.

• Renewed sense of urgency to squeeze more value out of services.

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Areas of OpportunityAreas of Opportunity

• Improve efficiency, integration and cooperation across all customer ‘touch-points”.

• Provide the same customer experience across all “touch-points”.

• Discontinue supporting customers through different “band-aided” processes/systems!

• Automate and integrate all processes into one tightly unified, efficient system.

• Anticipate the customer’s needs and be proactive.

• Map training from ongoing Quality Monitoring.

• Map the best practice processes into the tools.

All CustomersAll Access Channels

One, consolidated, streamlined, efficient, cost-effective and

integrated process/tool/people

Service Differentiat ionService Differentiat ion

• Think creatively about your daily performance.

• Innovate and work hard to treat every

customer like they were your only customer.

• Do something for them they wouldn’t expect.

Without Customersthere would be no business and therefore no need for my services

What’s Your View of The World?What’s Your View of The World?

1. The Customer experience & touch points.

2. Increase ROI & Utilization from existing investments.

3. Streamlining & continually improving service delivery for efficiency, consistency and value.

In tough economic conditions, the focus must be on YOUR customer....

The Service-Profit chain establishes the interconnected relationships among internal service quality; employee satisfaction, retention and loyalty; service value; customer satisfaction and loyalty; revenue growth; and productivity.

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What the Customer Wants / Expects! What the Customer Wants / Expects!

• Anytime access / availability (7x24)

• Immediate response

• Faster issue resolution / elimination

• Quality and consistent solutions

• Knowledgeable Customer Service Professionals

• “One click away” / Information

• Easy to find, easy to use

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Designed with the Customer-in-MindDesigned with the Customer-in-Mind

Create a seamless, transparent and WOW customer experience!Create a seamless, transparent and WOW customer experience!

Be EZ to do business with. Rapid, Efficient, Integration & Collaboration.

Simplify

Prioritize

Measure

Relevant

Design a customer-centricservice strategy.

Ensure your strategy, structure, process and people can adapt and respond quickly to changing customer preferences / market

conditions / competitive threats.

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Designing a Customer-Focused Service StrategyDesigning a Customer-Focused Service Strategy

• Think differently about your services and how they are

being delivered.

– Processes (efficiency and effectiveness).

– People (utilization and engagement).

– Tools and technologies (automation and integration).

– Metrics and reporting (operational and financial).

– Customer Service (differentiate and survey).

Service Organization

People (Education & Staffing)

Measurement & Reporting

Processes

Tools & Technologies

Structure & Strategy

Customer Service

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Ensuring Business AlignmentEnsuring Business Alignment

Service & Support Vision– The purpose is to lead, motivate and inspire.

– Envision the end – performance metrics and business benefits.

– Educate stakeholders and get buy-in.

Supporting Strategies– The purpose is to addresses how you will get there.

– Select and prioritize processes & tools.

– Identify key resources.

– Secure senior management support.

Critical Success Factors (Metrics)– Select metrics for directional purposes.

• Baseline, Target & Actual.

– Assess progress, directional accuracy and continuous improvement plan.

– Focus on Balanced Scorecard approach to quality, performance, utilization, customer satisfaction, costs, proactive measures, expanding scope of services, etc.

Business Strategy

Customer Strategy

Customer-focusedService Strategy

Enabling Strategies

Metrics

The compensation plan should drive behavior. Success based on achievement of Critical

Success Factors (CSFs)

MetricsMetrics

ALIGNMENT

ALIGNMENT 1 2 3 4

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Customer-Focused Service Structure & Strategy Customer-Focused Service Structure & Strategy

Current Customers

Employees

Partners

New Customers

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Level-2Specialist

IS OPS Services

Level-2Specialist

Network & Technical Services

Level-2Specialist

QA/Security

Level-2Specialist

Web/DB/Imaging

Level-3Vendor Support

Applications

Characteristics: Business-focused, Virtual, On-demand, Cost-effective, Responsive, Predictable, Consistent and Adaptive

Reduce / EliminateNeed for dispatch

Reduce escalationsLevel-2

IncreaseFirst Contact Res (FCR)

Call elimination / Self-service

Level-2Specialist

CRM / Architecture

Level-2Specialist

Business SystemServices

Level-2Specialist

Bus. Analysis & Process Services

Level-2Specialist

Business Portal Services Level-3

Vendor SupportInfrastructure

Level-3Vendor Support

Programs

AL Questions, Issues and Requests Provide Knowledge / TrainingCommit to Response

/ Resolution timeHold Vendor accountable to Underpinning Contract

SLAOLA

UC

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Implement a “Shift -Left” Service StrategyImplement a “Shift -Left” Service Strategy

Mean time to resolution

Cos

t

TechnologistTechnologist/Developers/Developers

$100 +$100 +

$35+$35+

$18-$23$18-$23

$2 - $12$2 - $12

Categorize CallCategorize CallTypes in Level they are Types in Level they are Resolved inResolved in

Categorize CallCategorize CallTypes in Level they are Types in Level they are Resolved inResolved in

Escalated Escalated callcall

Call Call

nn

Call Call EliminatioEliminationn

Automated Automated selfself--serviceservice

First contactFirst contactresolutionresolution

Level-2Level-1 Level-3Level-0

1. Examine all problems and escalations shifting problem resolution to the most-efficient and cost-effective support level.

2. Tracking percentage of resolved cases by group, levels and cost in the organization.

3. Understand which levels (groups) are resolving which cases, how many and what cost.

4. Calculate a cost per call / resolution analysis.

Bring visibility to repetitive, costly issues, especially theones being continually escalated to more costlier levels of support.

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Calculate Cost Per CallCalculate Cost Per Call

Source: HDI 2009 Practice & Salary SurveySource: HDI 2009 Practice & Salary Survey

Show Value.Compare and contrast.Know you baseline.

Prove FinancialImpact.From all initiatives.

JustifyInvestments.Use Financial Metrics

Reduce Costs.Run IT like a Business

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Reduce the Cost of Support Reduce the Cost of Support

Target call types for FCRthat are currently beingescalated.

Work with L2 managersto provide training, access,and knowledge articles.

Handle all Requests /Resets / FAQs ThroughSelf-Service Portal (L0).

Know what call typesyou resolve at FC.

Know what call typesyou escalate.

Increase FCR / FLRLower Cost Per Resolution.

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Service and Support Best PracticesService and Support Best Practices

First Contact Resolution

– Use all of our available resources (team members, training, tools, documentation, past incidents, etc.) to provide issue resolution at first contact.

Team work

– Empowering the team to make front-line decisions and coordinate best practice processes.

Being Proactive

– Spotting trends, related issues and reoccurring issues and working to ensure that we minimize business impact, communicate appropriately and work to

learn from the situation.

Link Costs to Demand Know your demand for IT Services, compare it to

your resource supply, utilization, SLA adherence and anticipated demand.

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Service and Support Best PracticesService and Support Best Practices

Total Contact Ownership

– The Support Center will continue to address a customer's

issue/request and follow up, validate and communicate status until

the issue or question is resolved to the customer's satisfaction.

Quality Ticket Documentation

– Research, diagnose, prioritize and document thoroughly (it did not

happen if it's not documented in the ticket).

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The Benefits of First Contact ResolutionThe Benefits of First Contact Resolution

• On average, every 1% percent increase in

first-contact resolution (FCR) results in a

0.64% increase in customer satisfaction.

• Drive total support cost down while

continuing to offer self-service solutions.

• Efficiency metrics:

– Resolution cost & Resource utilization.

• Effectiveness metrics:

– Timely closure, Quality resolution, Customer

satisfaction index.

Level-1

Level-2 Level-3

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FCR –The Ripple Effect!FCR –The Ripple Effect!

As Knowledge Base Utilization (KBU) increases…

• First contact resolution.

• Customer satisfaction.• Productivity. • Quality/Consistency.

• Average mean time to resolve.

• Average talk time.• Total support costs.

• Reduction in call types.

Expand Services – Utilizing Same People!

0

10

20

30

40

50

60

70

Januar y Febr uar y Mar ch Apr i l May June

KB %

FCR %

2020

Drive Customer SatisfactionDrive Customer Satisfaction

• Customer satisfaction MUST be a strategy.• On average, every 1% percent increase in first-contact resolution (FCR) results in a

0.64% increase in customer satisfaction.• Customer Satisfaction Index must be the ‘barometer’ for all other performance

metrics. • It must be engrained in the culture and a top priority for Management.• The strategy includes baseline and transactional surveys with a focus on

communicating the results and action plan to the customers.

0NO HURT

2HURTS A

LITTLE BIT

4HURTS A

LITTLE MORE

6HURTS

EVEN MORE

8HURTS A

WHOLE LOT

10HURTSWORST

0No

Pain

5Moderate

Pain

10Worst

PossiblePain

1 2 3 4 6 7 8 9

0NO HURT

2HURTS A

LITTLE BIT

4HURTS A

LITTLE MORE

6HURTS

EVEN MORE

8HURTS A

WHOLE LOT

10HURTSWORST

0No

Pain

5Moderate

Pain

10Worst

PossiblePain

1 2 3 4 6 7 8 9

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Validation, Success, ClosureValidation, Success, Closure

• Resolution is the moment of truth in the customer experience.

• Either you resolve the customer’s issue or you don’t.

• When you do:

• A resolved case is not closed until the customer tells you it has been resolved to their satisfaction.

• If escalated, you can still create a win-win situation by:

• Creating a clear impression that you will own the issue until resolution.

• Confirming with the customer their case ID number, your name, and expected response time.

• Provide regular status communication during “resolution progress” – customer preference (email / phone / both).

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Ensuring Customer SatisfactionEnsuring Customer Satisfaction

• Provides vital quality of service information to

management.

• It records calls/screens for scheduled evaluation.

• Results are included in analyst scorecards.

• Used for coach agent on areas of improvement.

• Used to recognize professionals who are star

performers.

• Ensure consistent and professional service by:

– Demonstrating the importance and linkage between customer

service skills learned in training and what the customers think

of your service (survey).

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The Success Tool KitThe Success Tool Kit

• Integrated Customer Service Management Tool

– An integrated, out-of the box solution that enables best practice process for seamless, transparent and superior service delivery.

– Best practice workflow engine.

• VoIP Solution

– Integrated voice and data to enable the functionality of ACD, IVR and CTI.

• Knowledge Management

– An integrated Knowledge data base that is supported by a KM strategy and process.

• Remote Support

– Providing support professionals in any location the ability to access, troubleshoot, diagnose, upgrade, or fix any computing device anywhere around the world – without ever leaving their desks.

• Reporting/Dashboards

– The ability to know where your team is performing with critical operational metrics – real-time.

• IM

– IM capabilities to access the various Subject Matter Experts real –time without escalation.

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Your Value Proposit ionYour Value Proposit ion

• Listen to / Learn from your customer / know what’s important to them.

• Ask what you are NOT doing, not just what you are doing well and not doing well.

• Survey customers who are NOT using your services.

• Identify and leverage customer champions (external) and senior customer sponsors (internal).

• Be the “voice of the customer” / Customer Advocate.

• Know why you win customers (attraction), why you lose them (defection) and what can you do to prevent losing them (loyalty, retention & profitability).

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