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SESSION 304 Monday, November 2, 3:00pm - 4:00pm
Track: Expert Focus
Lean Methods for Contact Centers: A Case Study
Mohan Nair Senior Consultant, NAIR CONSULTING GROUP [email protected]
Session Description
Innovative process re-engineering programs like Lean Six Sigma have improved organizations ability to capitalize on the value of the their assets. By applying Lean Six Sigma methods to the current contact center, quality assurance, and training programs, managers have a tremendous opportunity to transform the contact center into a profit center that serves as the pivot for all customer interactions within the organization. In this session, attendees will explore many of the misunderstood elements of Lean Six Sigma, a model that capable of meeting the expectations of stakeholders and customers alike. (Experience Level: Expert)
Speaker Background Mohan Nair has been involved in the services industry for the past fifteen years, working with cutting-edge and innovative companies like Microsoft and Lenovo. Prior to that, he was VP of operations for HSBC Resourcing. Mohan received his MBA from the University of Southern Queensland, Australia, and is also a Lean Six Sigma Black Belt. He’s passionate about using technology and human capital to delight staff and customers.
Lean Methods for Contact Centers (A Case Study for Senior Managers)
Mohan Nair, MBA
Nair Consulting Group
E-Mail: [email protected]
Definition and Purpose of Contact Center Management
Contact Centre Management is the art and science of having
the right number of people and the supporting resources in
place at the right times that are able to handle an accurately
forecasted workload within service levels and quality”
Source: ICMI – Call Center Management on Fast Forward
Symptoms
• Long Cycle Times
• Billing errors
• Complaints
ROOT CAUSE
•Quality Control
•Process Improvement
•Ownership, Accountability
Rule# 1 - Solve Root Cause not Symptoms
Why Lean Six Sigma?
Helps the Organization and leaders to develop the ability:
• To understand that waste simply:
Raises cost and loss of revenue
Produces no corresponding benefit
Threatens future well being of the centre
• To recognize and identify waste
• To have the courage to call it waste
• To have the desire to eliminate waste
• To apply tools/techniques to eliminate waste
• To understand the benefits of eliminating waste
External (customer satisfaction, shareholder value)
Internal (employee satisfaction, financial improvement)
The Seven Transactional Wastes
1. Waste of Overproduction – Preparing unneeded ineffective, reports, reports not read or acted on multiple times
2. Waste of Time (Idle) – Batch processing, batch uploads, i.e., monthly closings, weekly billing, monthly reports
3. Waste in Transportation – Unneeded steps in the process, document and data travel distance between stations
4. Waste of Processing (Too Fast) – Excessive sign-offs needed
5. Waste of Stock on Hand (Inventory) – Transactions waiting to be processed
6. Waste of Movement (Worker) – Unneeded data entry, extra steps in the call
7. Waste of Making Defective Products – Incorrect , inaccurate data entry
Recommended Methodology
• Define the problems, issue or
customer concerns impacting
productivity or customer sat
• Measure, map out the current
process using BI, analytics, data
and customer insights
• Analyze and identify root cause
using tools and subject matter
experts from the team
• Improve areas of concern,
bottlenecks and defects by
adoption and implementation
• Control gains made, maintain the
solutions and success
Recommended Methodology – Possible Outcomes
• Reduce processing times
• Reduce multiple hand offs
• Reduce errors and defects
• Improved throughput yields
• Enhanced staff engagement and
satisfaction within business units
• Enhance customer satisfaction
• Maximize revenue on collection
calls and reducing write-offs for
delinquency accounts
• Establishing standard processes
within Finance department
The Challenge
• Approach to Change Management and Performance Optimization was fragmented across multiple business units
• Gaps in capability to drive sustainable transformation to deliver CEO’s strategy became frustrating for leadership team
• Organization had to change quickly to rapidly meet business and client demand. Competitors had similar success strategies
• The only differentiator would be disciplined execution of Lean Methods across the enterprise with stakeholder sponsorship
• Getting leadership buy-in, employee acceptance to change, clients endorsement on the continuous improvement journey
The Solution
• Accelerated enterprise-wide training on service delivery, key performance indicators, balanced scorecard metrics in Q1 Q2
• Combination of best practices in BPO, DEVOPS, ITIL, LSS underpinned by the PMI’s Project Management framework
• Certifying and training business units on KAIZEN Coaching, Performance Management and Customer Service Excellence
• Implementing technology within HRIS, Operations and Finance to leverage existing or new technology with suppliers
• Regular communication from CEO, Business Units on key performance indicators, financials and overall performance
The Impact and Results • Reduction of 37% in customer complaints and escalations
from internal customers, clients and 3rd party providers
• Helped increase Baseline Sales Revenue in Year 1 from 3MM USD to 4.3MM USD in Year 2 and 5.7Mm USD in Year 3
• Reduced attrition within the organization from 77 % in Year 1 to 64 % in Year 2 and 41 % in Year 3 with annualized savings
• Increased productivity, throughput of agents with desktop technology, single sign-on by 15% in Year 1 and 29% in Year 2
• Stabilized performance and pricing terms from suppliers and 3rd party vendors, suppliers within supply chain with no increase in pricing terms thereby saving more than 725K USD
Transformation Roadmap
Knowledge Transfer
Current State Assessment
Training Ramp Up Improvement Initiatives
Future State Definition
Program Management & Organization Change Management Process Deployed Globally
Due Diligence Transition Analysis
Proven methods – Project Management, Change Management
Structured approach – Process Mapping, Project Management
Optimize Technology - Integrating, Automating manual process flows
Change Management and Transition Plans
QA Leader
QA Project Role
Team Composition
Team Involvement
TL’s—Role
Ops Leader
Operations Plans
Project Milestones
QA & TL Involvement
SOP Documentation Audits
Provide information around process, people. technology
Validate assessment sign off
Share learning’s from experience and guidelines
Validate inputs and outputs from Due Diligence exercise and Audits
Operations Manager (25%)
Experts and TL’s (50%)
Technology Manager (25%)
Quality Plans
Scope definition
Resource allocation
Escalation resolution
QA assessment , validation of SOP training requirements
Interviews with process owners UAT, Specifications
QA Process Documentation
Controls id definitions
Tools Technologies blueprint
Risk assessment SWOT chart
Domain Experts – 100%
QAR and Ops team – 100%
Quality Manager - 50%
Technology Manager – 50%
People, Process and Technology in Action
People, Process and Technology in Action
1) Hire Phase – once the hires are assigned to operations they go into Training, in the training stage – they are evaluated regularly
2) Training is done concurrently in training and in A-Bay for skills, communication and sales proficiency – usually takes 15-30 days
3) Once certified and pass achieved, they are now in Operations where daily training, coaching, regular feedback continues within the team
Training Roadmap for Operations
Sourcing & Recruitment
- Identifying high potential candidates for campaigns
- Meeting basic sales and customer service skills
Learning & Development
- Enhanced Training Modules
- 5 weeks classroom, floor training
- Written Training Assessment
- Assessment by TQM on soft skills
- Agents Aptitude Assessment 2 wk
- Re-training for trainees; require additional attention and coaching
- Handover to Academy Bay after successful certification, sign-offs
Academy Bay
- 8 wks Boot Camp for new hires
- Intense coaching; 2 dedicated TL and QA 2 hrs per agent daily
- Revised weekly & monthly scorecard based on average last 3 months overall Q performance
- 2nd assessment by TL, QA and L&D before live on floor
Live on Floor
Enterprise Attrition
Year Annualized Headcount
Annualized Turnover (-
25%)
Annualized Attrition % Aggregated
Average 2012 2928 269 77% 2013 3408 260 64%
2014( Jan - Oct) 2000 105 44%
77%
64%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2012 2013 2014( Jan-Oct)
Att
riti
on
%
Annualized Attrition %
17
2038
70
92
1586
1653
1736
2393
77
80
2067
1647
1855
2224
82
77
1895
2162
2288
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Missing-Data Charge Missing-ECP&MCP Network Expired Number SIM Replacement
Inte
ract
ion
s
Call Type
Jun-14
Jul-14
Aug-14
Root Cause Analysis - 5 Most Painful Call Types
Client 1 – Major Telco Provider
73%
75%
80%
77%
78% 79%
68%
70%
72%
74%
76%
78%
80%
82%
Dec-14 Jan-15 Feb-15
Pe
rce
nta
ge
Dec-14 Jan-15 Feb-15
CSI 73% 75% 80%
FCR 77% 78% 79%
Customer Satisfaction Index and First Contact Resolution
DAY MON TUE WED THU FRI SAT SUN MON TUE WED THU FRI SAT SUN MON TUE WED THU
DATE 25-Aug 26-Aug 27-Aug 28-Aug 29-Aug 30-Aug 31-Aug 1-Sep 2-Sep 3-Sep 4-Sep 5-Sep 6-Sep 7-Sep 8-Sep 9-Sep 10-Sep 11-Sep
SL 80% 75% 77% 72% 74% 71% 80% 81% 80% 82% 82% 85% 80% 83% 82% 81% 81% 82%
Variance 20% 26% 27% 25% 30% 47% 52% 17% 10% 10% 12% 21% 7% 13% 9% 16% 15% 14%
80%
75% 77% 72% 74% 71%
80% 81% 80% 82% 82%
85%
80% 83% 82% 81% 81% 82%
20%
26% 27% 25%
30%
47%
52%
17%
10% 10% 12%
21%
7%
13% 9%
16% 15% 14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Per
cen
tage
%
Date
Client #1: Service Level vs. Calls Received Variance
SL
Variance
Client 2 – Major Insurance Carrier
68%
74%
84% 85%
81%
79%
60%
65%
70%
75%
80%
85%
90%
Dec-14 Jan-15 Feb-15
Pe
rce
nta
ge
Dec-14 Jan-15 Feb-15
CSI 68% 74% 84%
FCR 85% 81% 79%
Customer Satisfaction Index and First Contact Resolution
84%
73%
85%
65% 76%
87% 93% 88% 84% 83%
92% 92% 88% 88% 85% 85% 83% 82%
6% 13%
18% 19%
10%
-3%
-24% -21%
22% 17%
11%
-2%
-31% -29%
-2% 2%
16%
2%
-40%
-20%
0%
20%
40%
60%
80%
100%
Per
cen
tage
%
Date
Client #2: SVL vs. Calls Handled Variance
SL
Variance
DAY MON TUE WED THU FRI SAT SUN MON TUE WED THU FRI SAT SUN MON TUE WED THU
DATE 25-Aug 26-Aug 27-Aug 28-Aug 29-Aug 30-Aug 31-Aug 1-Sep 2-Sep 3-Sep 4-Sep 5-Sep 6-Sep 7-Sep 8-Sep 9-Sep 10-Sep 11-Sep
SL 84% 73% 85% 65% 76% 87% 93% 88% 84% 83% 92% 92% 88% 88% 85% 85% 83% 82%
Variance 6% 13% 18% 19% 10% -3% -24% -21% 22% 17% 11% -2% -31% -29% -2% 2% 16% 2%
1,218,312
1,749,432
2,088,456 2,200,464
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
JULY'14 AUG'14 SEP'14 OCT'14
SALES PERFORMANCE - JULY'14 - OCT'14
ACTUAL TARP
Linear (ACTUAL TARP)
MONTH JULY'14 AUG'14 SEP'14 OCT'14
ACTUAL SALES 1,218,312 1,749,432 2,088,456 2,200,464
SALES TARGET 2,889,472 2,051,609 2,585,749 2,911,830
Achievement % 42% 85% 81% 76%
RR 1 % 2.01% 2.89% 3.10% 3.03%
RR 2 % 3.01% 4.26% 4.73% 4.77%
Recovery % 37% 26% 27% 23%
TOTAL SICK DAYS 68 53 62 55
TOTAL VACATION DAYS 182 116 140 111
TOTAL NO CALL NO SHOWS 31 70 8 15
Resignation/Terminated 8 20 7 14
Abseentism % 12% 10% 9% 7%
Client 3: Insurance Provider – Outbound Telesales
Lessons Learned and Emerging Trends
Lessons Learned and Emerging Trends
• Recognize SWOT analysis prior to embarking on LSS Journey,
without diluting the brand promise to your target (loyal) customers
• Millenials, Gen X, Gen Y, Boomers within your workplace can impact
results with a scalable effective innovative HRIS and PM program
• Identifying key customer facing processes that impact the overall
customer experience and regularly monitoring the VOC through all
channels including social media, complaints tools and your agents
• Implementing technology with certified partners who can provide
meaningful and practical solutions in Operations, QA and WFM
• Paying for team (and individual) performance, rewarding high
performers, attracting customer centric employees to your teams
thereby reducing complaints, agent attrition and/or agent defections
• Cloud computing, tele-commute, video-conference, outsourcing non-
client facing or core processes, focus on teams core competencies