Viewpoint paper Improve contact centers...Viewpoint paper | Improve contact centers Employee retention and growth Attrition rates of 40% to 90% per year make retaining and developing

Viewpoint paper

Improve contact centers Achieve customer delight with superior service

Table of contents

1 Optimize operational processes

1 Review operational processes

2 Understand best-practices linkage

3 Review the processes

7 Make it happen

9 Understand size and scope

9 Review the challenges

10 Assess the technology

10 Enjoy the results

12 Achieve excellence, profitability

13 About the authors

Viewpoint paper | Improve contact centers

1


Contact centers are the crucial touch point in CRM. To win additional customers and market share, they must provide superior service while delivering measurable business value at low cost.

Optimize operational processesIs your contact center performing in ways that maximize profitability and market share for your business? Sharply reducing costs, improving productivity, ensuring employee satisfaction, and mitigating risk are all important success factors. The ultimate goal, though, is to delight your customers—and win more of them as a result. Yet in today’s environment, these goals seem to compete with each other. Employees fear layoffs, offshoring, and frozen salaries; managers face increasing client expectations with diminishing resources and budgets.

To meet their objectives, contact center organizations have focused primarily on customer delivery processes such as handling customer requests and initiating contacts. Through work with clients, HP has discovered that another area—operational processes— demands equal attention. These processes often are twice as numerous as delivery processes, and have a significant impact on the business. In fact, operational processes are the “infrastructure” that supports the business, client care, and customer delight.

Specifically, it’s crucial to ensure that the same operational processes and tools are used within individual contact centers and across all sites. By implementing globally consistent delivery environments—and clearly measuring processes quantitatively and qualitatively—you can achieve your goals.

Review operational processesHP divides operational processes and associated measures into four categories: planning, employee retention and growth, operations management, and customer contact management. As shown in Figure 1, these categories drive one another as a cycle.

Maximize profitability and market share:

• Reduce costs

• Improve productivity

• Ensure employee satisfaction

• Mitigate risks

Operational processes include:

• Planning

• Employee retention and growth

• Operations management

• Customer contact management

Delight customers and win more of them as a result …

Planning

Operations managem

ent

Custo

mer contact

and growthm

anagement

Employee retention

Contactcenter

operationalprocesses

Figure 1.Contact center operational processes

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Within each category, there are a series of specific linked processes with associated tasks and steps that should be defined and managed as an integrated set. Investing the time to identify the tasks and steps within each category, and connecting or driving performance measures from the tasks and steps, provides the power of full optimization.

Understand best-practices linkage Figure 2 depicts how to link operational processes—support and customer delivery— to achieve “top-box” performance with low cost and risk. It shows, at a high level, how a successful contact center functions.

By formalizing, documenting, and optimizing operational processes through this model, HP has discovered the key to creating successful contact centers that focus on operating within budgetary allocations while ensuring employee care. Top-box customer service is still the primary driver for success, and the idea is that satisfied employees satisfy their clients.

The processes shown in the model should be a starting point for every contact center. The model is not “one size fits all.” Industry and business needs may drive fewer or additional processes.


Capacityplanning

Workloadbalancing

Recruitmentand selection

Leveragednew-hiretraining

ChangemanagementDeliver

processProcess directly supportsthe customer

Process supports agentsand operations, indirectlysupports the customer

Supportprocess Project

management

Client contractmanagement

Sales andmarketing

Customercare

Technicalsupport

Problemescalation

Knowledgemanagement Service-level

agreement(SLA)

management

Customersatisfaction

surveyadministration

Quality standards

Self-assessment

Customerdelight

Employeesatisfaction

surveyadministration

Qualitymonitoring

Reoccurring training (agent, supervisory leadership, managerial leadership, client partnership model)

Career planning

Coaching and mentoring

Agent scorecardand performance

managementprogram

Recognition andappreciation

Performanceimprovement

program

Compensationplan

Promotion/Job change

Separation/Administrative

exit

Work forcemanagement/

Activeoperations

management

Planning

Legend

Operations management Customer contact management

Employeeretentionand growth

Figure 2.Operational processes—best-practices linkage

3

Review the processesIn today’s marketplace, it is critical to deploy consistent business practices across all operations to maintain a high-performing environment. By using a vendor who is certified as using enterprise-wide gold standards practices, you can be sure best-practice contact center processes are used to address operational areas that may vary by region, country, or client.

Following are detailed descriptions of four main categories of contact center operational processes. Each category includes definitions of the related processes and the benefits you can receive by optimizing them.

Contact center planningBased on our experience, organizations can realize significant cost reductions—potentially up to 40%—by optimizing contact center planning. While reducing costs, the processes listed in table 1 can also yield improvements in service levels and your ability to support company growth in terms of new products and services, and entry into new markets.


Consistent business processes to deploy:

• Contact center planning

• Employee retention and growth

• Operations management

• Contact center management

Table 1. Contact center planning

Process name Definition Benefits

Capacity planning • Provides a profile of organizational staffing requirements based on strategic business forecasts

• Considers staff required to offset turnover, satisfy increasing volumes, and support new initiatives

• Decreases costs through effective planning

Workload balancing • Provides management of contact volume load balancing among multiple contact centers, including brick, mortar, and virtual (for example, work-at-home agents)

• Reduces staffing costs through balancing workloads across sites • Improves ability to meet service levels

Work force management (WFM) and active operations management (AOM)

• Optimizes forecast accuracy and staff use • Matches work schedules to staffing requirements based on

anticipated contact volume and arrival patterns, including intra-day management

• Manages idle time for fuller use of agent capacity • Measures agent productivity across multiple functions

• Decreases labor costs through improved productivity, efficient staffing, and full use of agent capacity

• Improves service levels by balancing staffing against workload volumes and arrival patterns

Recruitment and selection

• Enables consistent recruiting and selection practices, from profiling candidate requirements to electronic résumé collection

• Prepares the applicant to start work, including providing job aids and checklists

• Provides guidance for managing employees who do not work full-time or are working for academic credit and/or experience

• Provides guidelines for skills development, supervisor attention, and management for this group of employees

• Improves quality by on-boarding qualified candidates as quickly as possible

• Improves agent effectiveness and morale by reducing performance problems and attrition

• Reduces labor expense by ensuring staffing peaks will be covered by part-time and temporary agents

• Develops a pipeline of talented resources for future employment consideration

4


Employee retention and growthAttrition rates of 40% to 90% per year make retaining and developing staff a high priority for most contact centers. Table 2 lists the processes that fall within the employee retention and growth category and the benefits of optimizing them.

Table 2. Employee retention and growth


New-hire training • Provides a training delivery roadmap and curriculum modules for orienting new agents with roles and responsibilities to support customers

• Includes training for soft skills, contact handling, and systems use, and selective training to introduce new initiatives—systems, applications updates, procedures, and projects

• Training can be combined with sites’ current best training practices

• Reduces attrition and improves measurable performance expectations by reducing ramp-up time for new agents

Supervisory leadership training

• Provides a training delivery roadmap and curriculum modules based on shared leadership competencies

• Includes the delivery methodology for acclimating and training emerging and first-line contact center delivery leaders

• Continues support to further develop knowledge, skills, and abilities regarding a set of identified requirements

• Equips supervisors with performance and coaching skills needed to align agents’ skills and knowledge to organizational goals

• Reduces time required to reach optimal performance levels • Reduces/controls turnover

Managerial leadership training

• Provides a training delivery roadmap and curriculum modules based on shared leadership competencies

• Provides performance-enhancing systems with a focus on behaviors that encourage collaboration, interaction, and coaching in a positive growth environment where people are involved and recognized for their contributions

• Focuses on enterprise perspectives and strategic business planning and skills

• Assists managers in translating broad business objectives into day-to-day targeted actions that align with business needs and customer expectations

Client partnership model training

• Provides training in partnership concepts and win-win conflict-management techniques

• Enables leaders to introduce best practices to their clients and partner with them in a collaborative manner so they can provide best-in-class service offerings together

• Promotes long-term successful and mutually beneficial outsourcing relationships

• Improves end-customer satisfaction through an optimized delivery environment built on sharing information and common goals

Coaching and mentoring

• Coaching is a collaborative partnership focused on deeper learning and improved performance, challenging existing behaviors that may be limiting success and progress.

• Mentoring establishes a mutual learning partnership where a more experienced person shares knowledge, experience, and wisdom with a less-experienced colleague. The focus is on career development and job growth, and positions mentoring as a long-term relationship. It also serves as introductory managerial training and experience for the mentor.

• Drives positive change and accountability at individual and team levels

• Increases ability to drive account intensity • Re-energizes focus on desired business and individual commitments • Increases productivity, innovation, and goal attainment • Inspires individual ownership and accountability for results • Renews thinking and behaviors directed toward achieving goals • Increases job satisfaction and employee retention

Career planning • Provides employees with management and mentor support to identify career opportunities and plan their desired career path, and gives leaders an opportunity to refine their leadership skills

• Facilitates coaching in identifying employees’ desired career path • Motivates contact center employees to improve their skills,

continue their education, and cross-train • Provides career-development tools to identify development

activities required to support specific jobs

• Improves skills and personal growth • Promotes employee satisfaction and increases retention by

improving skills and career goal motivation

Quality monitoring • Ensures adherence to established processes, procedures, and customer service standards based on customer SLAs and other contractual obligations

• Monitors and evaluates the work performance of agents by recording customer interactions and data transactions, and providing timely feedback to agents

• Ensures process consistency and efficiencies that reduce costs, promote customer satisfaction, and prevent compliance issues

• Optimizes agent performance through coaching and identification of opportunities for reward and recognition

• Improves performance against service-level standards and customer expectations

5


Table 2. Employee retention and growth (Continued)


Agent scorecard and performance management program

• Facilitates objective and focused feedback to employees using key performance indicators for contact center excellence and client SLAs

• Combines the activities of an agent scorecard with the objectives of a corporate performance management process (PMP)

• Includes a scorecard template—customizable and calibrated by business type and contract— and step-by-step agent performance management procedures

• Rolls up monthly performance data into the annual PMP review for agents

• Provides a clear vision at the agent and team levels of what is required to meet or exceed client obligations and be a successful employee

• Promotes an environment of continuous performance improvement, encouraging consistent efficiency and work quality

• Reduces cost of attrition through improved employee satisfaction based on consistent and focused performance management

Recognition and appreciation

• Provides structure for developing a program to recognize employee achievements

• Promotes business goals performance by recognizing desired results

• Reduces cost of attrition through improved employee satisfaction

Performance improvement program (PIP)

• Provides guidelines to assist leaders in consistently addressing problem performance, attendance, and/or misconduct by employees

• Facilitates early recognition and documentation of performance problems

• Provides uniform method to conduct improvement plans

Compensation plan • Enables contact centers to motivate and reward employees with more frequent merit and performance-based increases through a pay-for-performance strategy

• Provides various differentials for special skills, accomplishments, and work schedules

• Supports discussions of wages and nonwages compensation for employees

• Can comprise base salary, bonus/incentives, stocks/bonds, and benefits in the form of health/welfare, time away from work, and retirement plans

• Supports focus and performance in business goals • Increases retention and improves morale through competitive

pay practices and pay for performance • Ensures competitive wage structure is explored

Promotion/job change • Offers lateral change in job responsibilities to provide employee growth opportunities

• Addresses upward advancement on career ladder with increased responsibilities

• Enables employees to change jobs for variety or if they are not performing well in one area

• Ensures eligibility for promotion tied to performance • Improves retention and assists employees in finding or creating a

satisfying work environment

Separation/administrative exit

• Provides procedures and guidelines for managing voluntary or involuntary separation of an employee

• Ensures consistent management of separations• Captures data on reasons for leaving to address current

retention issues, and drive enhancements in future recruitment • Enables analysis and action plans for negative trends

Operations managementOperations management, the third category, focuses on driving and sustaining productivity in the contact center. Implementing and maintaining standardized processes and tools in this category enable consistency, quality, and cost control. Table 3 lists the processes that fall within operations management and the benefits of optimizing them.

Table 3. Operations management


Change management • Provides the framework, methodologies, and training for managing organizational, operational, and system changes

• Reduces costs by enabling contact centers to prevent service disruptions while effectively managing change

• Reduces attrition through a controlled approach to managing change

Project management • Provides formalized methodology and training to manage a project within the contact center

• Reduces costs through a consistent, prescribed project-management approach

Client contract management

• Optimizes the contact center(s) around the outsourcing contract between the client and provider of contact center outsourcing services

• Builds client satisfaction and promotes a win-win partnership with the service provider

• Develops consistency between a client’s multiple contact centers

Quality standards • Provides framework and structure for implementing market-recognized quality standards such as COPC and Lean Six Sigma (LSS)

• Drives operational consistency and continuous improvement through compliance and adherence to various quality standards

Employee satisfaction survey administration

• Provides a process for measuring employee engagement and satisfaction by effectively managing the Voice of the Employee survey process

• Reduces attrition and improves employee and customer satisfaction • Facilitates plan development to address negative responses

6


Customer contact managementCustomer contact management, the fourth category of operational processes listed in Table 4, includes delivery processes that directly support interactions with the customer. These processes support customers throughout their interaction lifecycle—from marketing through sales, and to customer care and technical support. Customer contact management processes also address the specific handling of interactions to ensure an optimal customer experience.

Table 4. Customer contact management


Sales and marketing • Supports inbound and outbound multichannel customer complex interactions for functions such as lead generation, marketing campaigns, continuity sales, order management, loyalty/affinity programs, win-back/retention, and product specifications and recommendations

• Drives client revenue growth through increased market and wallet share

• Improves customer satisfaction through targeted cross-selling and up-selling

• Reduces cost of sales through specialized agent skills and training • Reinforces client brand

Customer care • Supports inbound and outbound multichannel customer interactions for functions such as complex product and service inquiries, data privacy/security breaches, crisis management, fraud management, product returns/RMAs, customer feedback and disputes, and product/service enhancement requests

• Improves customer satisfaction through analytics-based personalization of interactions

• Drives client revenue growth through targeted service-to-sales cross-selling and up-selling

• Reduces service costs through customized resolution workflows supported with knowledge management program

Technical support • Supports inbound and outbound multichannel customer complex interactions for functions such as troubleshooting and product use, remote diagnosis and resolve, website navigation and use, warranty administration, root cause analysis, and field service support

• Improves customer satisfaction through increased first contact resolution (FCR) with optimized agent knowledge-management program

• Reduces support costs through customized web-based self-service tools

• Drives client revenue growth through targeted service-to-sales cross-selling and up-selling

Knowledge management

• Enhances agents’ ability to resolve problems and provide accurate information

• Provides a process to capture, author, distribute, and analyze the usefulness of codified knowledge

• Provides customers with a self-service option to access and contribute knowledge at their convenience

• Reduces costs by decreasing call-handling time by resolving issues faster

• Improves customer satisfaction by resolving problems instead of symptoms

• Provides an improved agent and customer feedback loop to the client’s product and sales departments

• Improves agent morale and satisfaction, reducing turnover

Problem escalation • Provides a process for agents to seek advice on customer issues within their peer group without sending all escalations to supervisors or managers

• Provides an internal help desk driven by service levels, available 100% of the time, staffed with leadership development program candidates and/or high performers

• Evaluates problem-resolution trends and develops plans to address deficiencies

• Reduces need for management escalation and improves customer satisfaction through efficient resolution of requests

• Facilitates tracking of complaints to offer continuous improvement opportunities

• Provides job growth opportunities for high-potential agents

Service-level agreement management

• Establishes, manages, and monitors service-level measure-ments for customer satisfaction (for example, 80% of calls resolved in 30 seconds)

• Ensures contractual obligations are met, thereby supporting long-term relationships with clients

• Improves customer satisfaction

Customer satisfaction survey administration

• Provides survey instruments to obtain direct customer opinions and feedback on their interaction experience

• Facilitates performance benchmarking • Enables leaders to address deficiencies and build new offerings • Improves customer satisfaction

Customer delight • Establishes and monitors metrics for customer satisfaction based on performance management objectives and quality monitoring

• Facilitates quantitative and qualitative measurements regarding customer satisfaction

7

Make it happenAs shown in Figure 3, HP recommends a structured, three-stage approach for optimizing operational processes. This approach provides the flexibility for organizations to adjust procedure tasks and steps based on local laws and regulations or contractual deliverables. Most importantly, it enables your contact center to achieve a culture of high performance while controlling costs.


Figure 3.Three-stage approach for contact center optimization

Measurable improvement incustomer delight, employee

satisfaction, and productivity

Prioritize the management processes that createcustomer, employee, and shareholder value

Benchmark the high-priorityoperations processes

Develop gap assessment forhigh-priority management processes

Define three reasonable solution alternatives that align with operations strategy and bridge gaps

Determine the “best-fit” solution from the three alternatives

Build the implementation planfor the best-fit solution

Build and present the business case for implementation

Prioritization ofmanagement processes

Benchmark for high-priority processes

Gap assessment forhigh-priority processes

Three alternative solutions for management review

Best-fitsolution

Implementation planfor best-fit solution

Business case for implementation

ObjectiveStage

Define,measure,analyze

processes

Definesolution

Planimplementation

Deliverable

8

The following steps will ensure a successful build out of your optimization project or process:

• Ensure the organization’s commitment by obtaining an executive sponsor

• Conduct a business needs analysis involving stakeholders and those who will be responsible for improvement in business results

• Identify processes to be redesigned

• Build and manage a communications plan

• Identify process owners and subject-matter experts

• Agree on metrics and a baseline current state

• Prioritize processes to build a development plan based on these factors:

– Cost reduction and attrition reduction goals

– Corporate priorities

– Process complexity

– Policy and risk complexity

– Infrastructure issues

– Internal and external vendor capabilities, for example, training department or training vendor

– Cultural issues

• Identify key improvement areas

• Conduct best-practices and competitive-practices research

• Redesign and/or reengineer prioritized processes based on best/competitive practices

• Obtain appropriate approvals—for example, employee relations, works councils, legal, human resources, and business leaders/stakeholders

• Conduct gap analysis from approved, redesigned processes and current state

• Build a transition plan, focusing on gaps and organizational change-management activities

• Implement new processes with a strong training and communications program

• Measure change and identify barriers to success

• Remove barriers to success

• Ensure mandatory yearly audits to verify compliance


9

Understand size and scopeAll contact centers, regardless of size or number of sites, should focus on optimizing the operational processes discussed. The center’s relative size and complexity do, however, help determine how long the optimization project takes and what resources are required.

In most cases, a single-site, single-customer, single- language contact center can complete the job in only three to six months and with two to six dedicated resources. A multiple-site environment that supports many customers and languages might need more than nine months and 10 to 20 resources. In all cases, project duration depends, in part, on contact center readiness—how optimized the site currently is and how ready the contact center team is to embrace change.

Review the challengesChallenges fall into three categories—people, processes, and technologies. The most challenging aspect of any project is managing people through change. People challenges include:

• Resistance to change

• Lack of sponsorship for change

• Backlash to a command-and-control approach

• Lack of compliance to change

• Undefined or poorly defined accountabilities to implement change

• Inappropriate depth and breadth of communications

• Difficulty obtaining commitment to change from the contact center senior leadership to the supervisor

• Difficulty obtaining commitment from stakeholders to maintain and sustain the processes

Process challenges include:

• Lack of formally documented and defined processes

• Undefined or poorly defined accountabilities to implement processes

• Overcommitted or unavailable process owners and subject-matter experts


Challenges include:

• People

• Processes

• Technologies

10

Technology challenges include:

• Lack of systems and tools to support the processes

• Lack of skills to develop appropriate systems and tools

• Inadequate time to train and test people on using new tools

To manage these challenges effectively, it is essential to ensure rigorous organizational change-management and project-management practices are in place and followed.

Assess the technologyTechnology should enable the business to meet its needs and support the redesigned business processes. Just as people are obligated to spend time and money maintaining a new car engine to ensure a longer, more efficient life, so too are companies obligated to invest resources to improve and maintain “life blood” processes that sustain business operations.

There are numerous software programs and vendors that support a majority of the operational processes. Organizations need to determine their pain points, the amount of supporting technology they can afford, and their highest-priority items.

One of the biggest impacts can come from a workforce management system. Automating many aspects of workforce management—such as forecasting, planning, and scheduling components (with shift allocations)—significantly reduces manual errors and time to reforecast. Other technology options include quality assurance and scorecard-evaluating software, and systems that support the appropriate training and education environment.

Each organization should evaluate its needs, priorities, and budget allocations. This evaluation will help determine which supporting tools and technology to invest in first.

Enjoy the resultsResearch has demonstrated the significant quantifiable and qualitative benefits of moving to rigorous, standardized, and optimized operational processes. The experience of HP shows that full optimization of workforce management and contact center planning processes can incrementally reduce contact center costs by up to 25%. We have also found that high attrition (the primary burden on almost all contact centers) can be reduced to best-in-class numbers—if all these operational processes are implemented and managed.


11

Implementing these processes can yield:

• Improved customer satisfaction

• Increased work force productivity

• Reduced operational costs and risk

• Reduced negative or unwanted attrition

• Reduced shrinkage—vacations, holidays, training time

• Increased revenue

Indirect results include:

• Motivated, skilled work force

• Improved planned attrition

• Improved client satisfaction

• Improved employee satisfaction

Table 5 lists several scenarios your business may face with its current operational process model—and the results you can gain by moving through partial to full optimization.


Table 5. Operational process model scenarios and results

Current model Partial focus on optimized model Full implementation of optimized model

No precision management Some precision management Precision management

High unwanted attrition levels (negative attrition) Reduction in unwanted attrition levels (negative attrition)

Best-in-class attrition levels

Reactive crisis management Proactive crisis management Minimized occurrence of crises

Increased cost of operations Decreasing cost of operations Managing costs

Increased time to operate Decreasing time to operate Managing time to operate

Varying service levels Manageable service levels Achieving targeted service levels

Dispersed, unmanaged labor Cost-control focus Value-add focus

High time away from work Managing time away from work Low time away from work

High overtime paid to manage peaks Overtime paid to manage peaks Minimal overtime paid to manage peaks

Poor management information reporting Inconsistent management information reporting Consistent management information reporting

Nonuniform standards and definitions (for example, does ASA include transfer time in the IVR?)

Some uniform standards and definitions (for example, does ASA include transfer time in the IVR?)

Uniform standards and definitions (for example, does ASA include transfer time in the IVR?)

12

Figure 4 depicts the cost elements and related objectives that drive the need for process optimization—and the performance-improvement goals you can achieve after the transformation is complete.

Achieve excellence, profitabilityTo achieve operational excellence and maximize profitability, a contact center business depends on its people to function as a single team focused on a common goal. This requires consistent performance by each individual and site. Implementing an operational process model ensures consistency and “institutionalized excellence” in customer delight, employee satisfaction, and productivity, which, in turn, drive profits.


Trim currentoperational costs

Performanceimprovement

goal

Objectives

Costelement

Reinvest cost savings/ROIfor business improvement

Transform the contact center to ensurecustomer delight while delivering superiorbusiness value at an acceptable cost level

Deliverservices

efficientlyReduceattrition

Standardize practices andtools for cross-contact-center

leveragability

Enable rapid continuousimprovement/redesign to meetcustomer and business needs

Figure 4.Transformation to optimized operational processes

Implementing an operational process model ensures consistency and “institutionalized excellence” in customer delight, employee satisfaction, and productivity, which drives profits.

13

About the authorsLois HenryLois Henry is a part of the HP BPO Team. She has 23 years of experience designing, developing, and managing client customer care centers. Henry has participated in and led multiple engagements that included contact center assessments, business process design, contact center consolidations, virtual center process improvements, and new CRM implementations. Before joining HP, Henry was a CRM consultant with eLoyalty for seven years. Henry earned her bachelor’s degree from Ball State University and her master’s degree from Middle Tennessee State University. She is a Purdue-certified (BenchmarkPortal) Call Center Auditor and a Carnegie Mellon University-certified eSCM Evaluator.

Mark YujuicoMark Yujuico, global product marketing manager for HP CRM, is responsible for product marketing of this global service line, including product strategy, sales and market readiness collateral, events, industry analyst relations, competitive analyses, and global delivery analyses. Previously, Yujuico held various positions in the HP BPO service delivery organization, including BPO portfolio strategy consultant and CRM consulting services manager. Before HP, he was a senior member of the CRM practice in Ernst & Young’s Management Consulting firm, leading major pursuits and implementations with Global 500 companies in various industries. Yujuico graduated from Colgate University with a bachelor’s degree in computer science and received his MBA in marketing from the University of Dallas.


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Viewpoint paper Improve contact centers...Viewpoint paper | Improve contact centers Employee retention and growth Attrition rates of 40% to 90% per year make retaining and developing