10 05-21 capita conf1-2


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Presentation on Channel Shift from January 2011 Capita National Customer Contact Conference

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10 05-21 capita conf1-2

  1. 1. Contact Management Across All Channels 21 st May 2010 Capita's Contact Centres Conference Hallam Centre, London Gerald Power
  2. 2. Disclaimer <ul><li>We have just had an election, what follows are my personal views, predictions and ideas based on my experience in delivery and channel shift. </li></ul><ul><li>It’s based on data gathered using the Performance Management Framework (PMF) tool and talking to organisations who are doing channel shift. </li></ul><ul><li> They do not necessarily express future government policy. </li></ul>
  3. 3. What can I say about the issues that are likely to shape the future of service delivery? <ul><li>Public Services are likely to be asked to deliver the same or more for less money and the focus will be on efficiency e.g. cost and quality. </li></ul><ul><li>Taxpayers and politicians will expect service providers to spend their tax pounds very wisely and justify their investment decisions. </li></ul>
  4. 4. Channel Management <ul><li>Channel Management fits into this picture in three key ways. </li></ul><ul><li>Optimising the efficiency of existing channels. </li></ul><ul><li>Managing contact and shifting to newer lower cost channels. </li></ul><ul><li>Driving fundamental changes in delivery processes . I will play devils advocate and set out three targets associated with these. </li></ul>
  5. 5. 1. Optimising Channel Efficiency <ul><li>This is a very old element that we should all be familiar with: </li></ul><ul><li>Establish the cost of contact via the channel. </li></ul><ul><li>Establish the drivers of that cost. </li></ul><ul><li>Reduce the cost per contact. </li></ul><ul><li>This remains essential work, channels must work efficiently and must be managed effectively. </li></ul><ul><li>This is true across all channels, even ‘cheap’ ones. </li></ul><ul><li>But I am not convinced any sector is very good at it yet. </li></ul>
  6. 6. Challenge 1: Channel Efficiency <ul><li>When cost per contact is optimised for the delivery model you deliver contact at an ‘optimum’ cost. </li></ul><ul><li>If you do it cheaper you may see a sudden fall in customer satisfaction and if you pay more its probably a waste of money. </li></ul><ul><li>The challenge is to establish where this optimal level is and keep the channel there. </li></ul>
  7. 7. Annual Telephony* Costs £/M <ul><li>DWP </li></ul><ul><li>HMRC </li></ul><ul><li>NHS (Direct) </li></ul><ul><li>DVLA </li></ul><ul><li>Consumer Direct </li></ul><ul><li>Total Approx £ 700M </li></ul><ul><li>The PMF implies a 30% saving is possible (£200M p.a.) </li></ul><ul><li>if contact centres achieve industry benchmark standards. </li></ul><ul><li>* Contact Centres only from Performance Management Framework (PMF) excludes direct calls to ‘back office’ and Face 2 Face approximate figures. </li></ul>
  8. 8. But, channel efficiency has limits. <ul><li>Customers can always generate more contact than an organisation can afford to provide. </li></ul><ul><li>Driving down cost per contact will eventually start to affect the quality of contact . </li></ul><ul><li>Poor quality contact drives more contact and drives contact to other – more expensive - channels. </li></ul>
  9. 9. 2. Managing Contact (Demand Management) <ul><li>The ideal is to manage the contact out of the delivery system. Amazon.com has been a leader in this, one transaction, one contact, all online. HMRC is attempting to do this with self assessment of income tax. DWP is following with ‘self service’ benefits. </li></ul><ul><li>Second best is manage it to the lowest cost channel. Most organisations have aspirations to move simple information requests and transactions to the web. Directgov and Businesslink are at the heart of this for central government. Online banking is a good example of private sector channel shift. </li></ul><ul><li>Third best is manage it to a lower cost channel. Most organisations accept the need for multiple channels and are trying to move contact. </li></ul>
  10. 10. Managing Contact <ul><li>DVLA, HMRC and DWP have all worked hard and achieved success in managing contact. Directgov and Businesslink figures imply some real success in moving customers to the web. </li></ul><ul><li>Figures from HMRC and DVLA imply they have had had success in driving down telephone contact driven by poor communication, poor process or process failure. </li></ul><ul><li>Local Authorities are becoming increasingly adept at managing and reducing ‘nugatory’ and low value contact. </li></ul>
  11. 11. Directgov and Busineslink visits data for visits to Content ‘Owned’ by central Departments DWP 22 Million HMRC 15 Million Figures are bases on a ‘mash up’ of data from directgov and businesslink using the 09/10 PMF web tool data and attributing service lines to departments.
  12. 12. Managing Contact <ul><li>Although the organisations named have made progress, they are often very limited in what they can achieve because organisational culture and processes often slows channel shift. </li></ul><ul><li>The cost and volume of contact associated with specific services is often not recorded. </li></ul><ul><li>The cost of contact is often not attributed to a specific service so its hard to know what service is driving what contact through what channel. </li></ul><ul><li>There is often no process for initiating process change to reduce or move contact to lower cost channels. DWP, HMRC, DVLA are all in this territory doing this and solving these problems putting in the monitoring and management. </li></ul>
  13. 13. Challenge 2: Contact Management <ul><li>When channel usage is optimised for the delivery model you deliver contact at an ‘optimum’ cost, change the balance and you see a fall in customer satisfaction or rise in cost. </li></ul><ul><li>The challenge is again to establish where this optimal level is and keep the channel mix there. </li></ul><ul><li>Not many organisations achieve excellence in this, the more excellent they get the better the efficiency they achieve. </li></ul><ul><li>It’s also a moving target and requires a firm link between services, processes and contact to be established and its new territory in both the public and private sector. </li></ul>
  14. 14. 3. Delivery Processes <ul><li>So far this presentation has concerned optimising the efficiency of channels and migration of contact. What it has not challenged is the need for contact and the design of the delivery process. </li></ul><ul><li>Typically this is how it is now, process is set, contact is provided to try to match it. It’s a one way street. </li></ul><ul><li>But, this is not a sensible way of delivering services and it has to change. </li></ul>
  15. 15. Delivery Processes <ul><li>The following slides show estimated figures for DWP and HMRC and are based on publicly available data. </li></ul><ul><li>These departments currently deliver good value for money and the point I want to highlight is where the costs lie within their delivery process. </li></ul><ul><li>The figures have not been endorsed by the departments. But I feel these departments are leading the way on channel shift in some difficult areas. </li></ul>
  16. 16. DWP: Delivery Costs Overall £148Bn of benefits and entitlements were delivered by DWP in FY 09/10 principally through two organisations, Job Centre Plus (JCP) and the Pensions Disabilities and Carers Service (PDCS). DWP Overall annual delivery cost c. £9Bn FY09/10 Despite 22 million hits per year online (vs. UK Population approx 60 Million) this looks like a delivery process firmly rooted in the back office and Face to Face world.   Channel Cost £/M Staff (FTE) Telephony [call centres] 284 13800 Back Office + F2F + phone contact with ‘back office’ 2187 69500 'Non Staff' 1716  
  17. 17. HMRC: Delivery Costs Departmental delivery costs £/M HMRC have a presence at around 220 sites throughout the UK including around 18 dedicated telephone contact centres. Despite 15 Million visits online and heavy use of telephony HMRC looks very much driven from the back office. Current Channel Use   Staff Costs Other Costs Total 2,603 1,560 4,163 FTF Telephone Online Other 2% 39% 39% 20%
  18. 18. Challenge 3: Process Design <ul><li>When channel usage is optimised for the delivery model you deliver contact at an ‘optimum’ cost. </li></ul><ul><li>But, the challenge is to establish whether a different process could actually deliver the service better. </li></ul><ul><li>Not many organisations achieve excellence in this, technology evolves quickly and old delivery processes can take time and investment to catch up. </li></ul><ul><li>But, this could prove to be the ‘game changer’ as automated processes potentially allows the customer to ‘self serve’ with largely automated ‘back office’ functions. [HMRC and DWP both recognise this] </li></ul>
  19. 19. Some questions for delegates today <ul><li>Does your organisation know what its customer contact costs are? </li></ul><ul><li>Do your service managers know how much their services cost in terms of contact to support them? </li></ul><ul><li>When you design or re-design delivery processes do you consider contact costs, the benefit to the user and alternative processes in your decision making? </li></ul><ul><li>Do you get how big the challenge is yet? </li></ul>
  20. 20. Contact details <ul><li>Gerald Power </li></ul><ul><li>020 7276 3235 </li></ul><ul><li>[email_address] </li></ul><ul><li>Visit the PMF Reporting Portal at www.pmfreport.org </li></ul><ul><li>This will link you to tools and resources that will help you answer some of the questions posed. </li></ul>