Principles of Effective Contact Center Management Workbook - ICMI @ Dreamforce 2010 Handout - Brad Cleveland

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  • 1. ICMI: Principles of Effective Contact Center Management Brad Cleveland Monday, December 6, 2010 – 2:00pm – 5:00pm
  • 2. Session: Principles of Effective Contact Center Management Track: Service & Support Professionals Date: Monday, December 6, 2010 Time: 2:00pm – 5:00pmThe Principles of Effective Contact Center ManagementBrad ClevelandSenior Advisor and Former President/CEO, ICMI208-928-7311bcleveland@icmi.comSession DescriptionLevel: BeginnerIn step-by-step format, Brad Cleveland walks you through principles that will remain with you throughout yourcareer: the immutable laws and service dynamics that are part of any customer contact environment; what it takesto accurately forecast, staff and schedule; the tradeoffs between service level, agent occupancy, staff and costs;how service level and quality are highly interrelated; how to apply time-tested management principles to newcontact channels, i.e., social media; and, how to explain these principles to others in your organization and get themon board. Whether you are a new manager or a veteran in search of a dependable refresher, this session providesthe essential knowledge and confidence you need to succeed!Speaker BackgroundBrad ClevelandBrad Cleveland helps organizations maximize their returns on customer relationships – by harnessing the potentialof call center, self-service, social media, and peer-to-peer capabilities. Brad has worked across 45 states and inover 60 countries, and his clients have included many of today’s service leaders – Apple, HP, American Express,and others. He’s also advised governments in the United States, Australia, Canada, the United Kingdom, andelsewhere. Brad is author/editor of eight books, including Call Center Management on Fast Forward: Succeeding inToday’s Dynamic Customer Contact Environment, which won an Amazon.com best-selling award. He hasdiscussed customer service issues in publications ranging from The Financial Times to The Wall Street Journal, aswell as on major television networks, NPR’s All Things Considered, and the in-flight programs of several airlines.One of the initial partners in and former President and CEO of the International Customer Management Institute(ICMI), Brad grew the firm into a global industry leader that is now part of United Business Media (London: UBM.L).He now serves as a Senior Advisor to ICMI, and is an in-demand author and speaker.
  • 3. 1 The Principles of Effective Contact Center Management Brad Cleveland, ICMI blog: www.bradcleveland.com/blog Twitter: www.twitter.com/bradcleveland Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 2Learning Objectives (1 of 2) • Learn a useful definition of call center management • Identify the three driving forces of call center dynamics • Understand the nine steps essential for effective planning and management • Identify the key immutable laws of call center dynamics Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 4. 3Learning Objectives (2 of 2) • Identify the 10 key customer expectations • Define the three levels on which call centers can create value • Identify the common components of a quality contact • Define the seven key areas of measures/objectives Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 4 Contact Centers – Emerging Hubs of Communication Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 5. 5 Contact Center Management Is... …the art of having the right number of skilled people and supporting resources in place at the right times to handle an accurately forecasted workload, at service level and with quality. Right people in place at the right times… Doing the right things… Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 6 The Effect of Random Call Arrival The Workload Bunches Up! Calling Pattern A Calling Pattern B 6 5 4Calls 3 2 1 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Minutes After the Hour Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 6. 7 Visible or Invisible Queue? VISIBLE QUEUE- bank, post office, stadium INVISIBLE QUEUE: most call centers (not all) Time Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 8The Seven Factors of Customer Tolerance1. Degree of motivation2. Availability of substitutes3. Competition’s service level4. Level of expectations5. Time available6. Who’s paying for the call?7. Human behavior Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 7. 9 1. Choose service level/ response time objectives. 9. Repeat for a higher and 2. Collect data. lower level of service. 8. Calculate The Planning 3. Forecast call costs. load. and Management Process 7. Organize 4. Calculate schedules. base staff. 6. Calculate 5. Calculate rostered staff trunks (and factor related system (shrinkage). resources). Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 10 The Two Major Types of Contacts1. Those that must be handled when they arrive. Performance objective: Service Level Definition: X% answered in Y seconds2. Those that can be handled at a later time. Performance objective: Response Time Definition: 100% response within N hours Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 8. 11 Two Approaches to Forecasting Quantitative Judgmental Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 12 Four Key Terms• Talk Time: Everything from hello to goodbye• After Call Work: Immediately follows call• Handling Time: Talk time + after call work• Call Load: Volume X AHT Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 9. 13 Monthly Contacts Offered 180 170Contacts in Thousands 160 150 140 Yr. 1 130 Yr. 2 120 Yr. 3 110 100 90 80 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Month Use data from three or more years. Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 14 Contacts by Day of the Week 4500 4000 3500 Contacts 3000 06-May 2500 13-May 2000 20-May 27-May 1500 1000 500 0 MON TUE WED THU FRI SAT Day of the Week Use data from four or more weeks. Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 10. 15 Half-Hourly Contacts 200 180 160 MON 140Contacts TUE 120 WED 100 THU 80 FRI SAT 60 SUN 40 20 0 3:00 1:00 2:00 4:00 5:00 6:00 8:00 9:00 7:00 8:00 12:00 10:00 11:00 Time of Day Use data from at least one “typical week.” Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 16 Breaking Down a Forecast: The Basics 500,000 Current year’s contacts X 1.1 To add 10% (Add after month prop. ?) 550,000 Estimated contacts in forecast year X .068 January proportion Avg. Index 37,400 January contacts Example: Prop Prop Factor Monday .225 ÷ .2 1.125 ÷ 21 Operation days - January Tuesday .201 ÷ .2 1.007 1,781 Average contacts per day Wednesday .184 ÷ .2 0.921 Thursday .185 ÷ .2 0.924 X 1.125 Monday index factor Friday .205 ÷ .2 1.023 2,004 Monday’s contacts X .055 10:00 to 10:30 proportion 110 Forecasted contacts 10:00 to 10:30 Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 11. 17 Forecast Accuracy The accuracy of Call Volume resource planning Forecast Actual Difference Percent must be measured 8:30 9:00 342 291 51 -17.5% 9:00 9:30 399 343 56 -16.3% here… 9:30 10:00 461 499 -38 7.6% 10:00 10:30 511 582 -71 12.2% 10:30 11:00 576 649 -73 11.2% 11:00 11:30 605 578 27 -4.7% 11:30 12:00 572 513 59 -11.5% 12:00 12:30 505 412 93 -22.6% Not here! 12:30 1:00 456 540 -84 15.6% 4427 4407 20 -0.5% Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 18 Average Handle Time 1000 900Average Handle Time 800 700 Mon in Seconds 600 Tue Wed 500 Thu 400 Fri 300 Sat 200 100 0 10:00 11:00 12:00 7:00 8:00 9:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 Time of Day Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 12. 19 Blending in Judgment• Put someone in charge• Get the right people together!• Often…!• Track – how’s it going?• Adjust as you go along Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 20 1. Choose service level/ response time objectives. 9. Repeat for a higher and 2. Collect data. lower level of service. 8. Calculate The Planning 3. Forecast call costs. load. and Management Process 7. Organize 4. Calculate schedules. base staff. 6. Calculate 5. Calculate rostered staff trunks (and factor related system (shrinkage). resources). Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 13. 21 Response Time Calculation VolumeBasic Formula: = Agents RT ÷ AHTKEY: Volume = Volume for forecast increment (e.g., volume per hour) RT = Response time (note: RT for staffing is the time available to do the work, which may be less than the RT promised to the customer) AHT = Average handling time Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 22Erlang C… AN N P ( >O ) N! N A N 1 Ax A N N x O x! N! N A Where A = total traffic offered in erlangs N = number of servers in a full availability group P(>O) = probability of delay greater than O P = probability of loss -- Poisson formula Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 14. 23Input: Average talk time in seconds = 180 Base Staff Calculations Average after call work (wrap up) in seconds = 30 Calls per half hour = 250 Source: ICMI QueueView Service level objective in seconds = 20 Calls /Output: Agents ASA SL Occ TKLD Agent 30 208.7 23.5% 97% 54.0 8.3 31 74.7 45.2% 94% 35.4 8.1 32 37.6 61.3% 91% 30.2 7.8 33 21.3 73.0% 88% 28.0 7.6 34 12.7 81.5% 86% 26.8 7.4 35 7.8 87.5% 83% 26.1 7.1 36 4.9 91.7% 81% 25.7 6.9 37 3.1 94.6% 79% 25.4 6.8 38 1.9 96.5% 77% 25.3 6.6 39 1.2 97.8% 75% 25.2 6.4 40 0.7 98.6% 73% 25.1 6.3 Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 24 QueueView Staffing Calculator by ICMI, Inc. Average Talk Time (Sec.) = 180 Caller Delay Module After-Call Work Time (Sec.) = 30 Calls per Half-Hour = 250 Source: ICMI QueueView Service Level Objective (Sec.) = 20 |<========= Number of callers waiting longer than x seconds =========>| Agents SL% 5 10 15 20 30 40 50 60 90 120 180 240 ===== === ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== 30 24 203 199 195 191 184 177 170 163 145 129 101 80 31 45 156 149 143 137 126 115 105 97 74 57 34 20 32 61 118 111 104 97 85 74 65 56 38 25 11 5 33 73 89 81 74 67 56 47 39 32 19 11 4 1 34 82 65 58 52 46 37 29 23 18 9 5 1 0 35 88 47 41 36 31 24 18 14 10 4 2 0 0 36 92 34 29 24 21 15 11 8 6 2 1 0 0 37 95 24 20 16 14 9 6 4 3 1 0 0 0 38 97 16 13 11 9 6 4 2 2 0 0 0 0 39 98 11 9 7 5 3 2 1 1 0 0 0 0 40 99 7 6 4 3 2 1 1 0 0 0 0 0 41 99 5 4 3 2 1 1 0 0 0 0 0 0 42 100 3 2 2 1 1 0 0 0 0 0 0 0 Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 15. 25 Terms to Know… Agents: Number of agents required to be in place, either handling contacts or waiting for them to arrive. ASA: Average speed of answer in seconds. SL: Service Level. The percentage of contacts that will be answered in the number of seconds you specify. OCC: Percent agent occupancy. The percentage of time agents will spend handling contacts, including talk time and after-call work. TKLD: The hours (Erlangs) of trunk traffic, which is the product of (talk time + average speed of answer) x number of calls in an hour. Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 26 Key Immutable Laws• When service level goes up, occupancy goes down• The law of diminishing returns• The powerful pooling principle Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 16. 27The Dynamics of Size and Pooling Scenario Talk: 180 seconds After-call work: 30 seconds Service level: 80% in 20 seconds Calls Agents Occupancy Calls per Agent 50 9 65% 5.6 100 15 78% 6.7 250 34 86% 7.4 1000 124 94% 8.1 Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 28 1. Choose service level/ response time objectives. 9. Repeat for a higher and 2. Collect data. lower level of service.8. Calculate The Planning 3. Forecast call costs. load. and Management Process 7. Organize 4. Calculate schedules. base staff. 6. Calculate 5. Calculate rostered staff trunks (and factor related system (shrinkage). resources). Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 17. 29 Where Are They??? Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 30 Thank you for holding. Our agents are currently… On a break At lunch Making internal calls In a meeting In the bathroom Rebooting their computers Researching something Sick On vacation Getting supplies Completing after-call work In training With other callersYour call is important to us. Please continue to hold… Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 18. 31 Agent Capacity Planned Hours Schedule (40 hrs/wk) Influenced and Unavailable Anticipated (absent)Activities: Annual (6.2 hrs/wk)Leave, FMLA, Sick Available (33.8 hrs/wk) Schedule Influenced Non-production Utilizing Activities: Coaching, (including all breaks) training, lunches, non-phone, etc. (5.3 hrs/wk) Scheduled for Phones (28.5 hrs/wk) Non-adherence (3.2 hrs/wk)Agent Controlled:Must be tracked, Manned (login) Time actual results (25.3 hrs/wk) incl. in schedule Idle Time Required to Meet SL Uncontrollable: An (4.0 hrs/wk) outcome of size, SL, Call Handling and Wrap-up and handle time; (21.3 hrs/wk) becomes smaller when contact center doesn’t schedule properly Talk Time After-Call Work Time Hold Time (13.4 hrs/wk) (4.5 hrs/wk) (3.4 hrs/wk) Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 32 Rostered Staff Factor Rostered Base Staff Required On Staff SL RT Absent Break Training Schedule Factor 08:00-08:30 18 4 2 0 0 24 1.09 08:30-09:00 20 4 2 0 4 30 1.25 09:00-09:30 20 4 2 0 4 30 1.25 09:30-10:00 25 5 2 3 4 39 1.3 10:00-10:30 25 5 2 3 4 39 1.3 10:30-11:00 31 5 2 3 4 45 1.25 Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 19. 33 Scheduling Realistically 45 40 Rostered Staff AssignedNumber of Analysts 35 Rostered Staff Required 30 Base Staff Required 25 20 15 10 5 0 11:00 11:30 9:00 9:30 1:00 1:30 2:00 2:30 3:00 3:30 4:00 4:30 5:00 5:30 10:30 12:30 10:00 12:00 Time of Day Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 34 Scheduling Alternatives Utilize conventional shifts Give agents the option to go home, without pay Stagger shifts Offer split shifts Adjust breaks, lunch, meeting and training schedules Arrange for some agents to be on call Forecast and plan for regular Set up a telecommuting program collateral work Use hiring to your advantage Schedule part-timers Send calls to a service bureau Establish internal part-timers Collaborate with similar organizations Create a SWAT team Sacrifice service level for a planned Offer concentrated shifts period of time Offer overtime Potentially, many others… Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 20. 35 Service Level Revisited Service level fairly consistent and meeting objective 110%Calls Answered in 30 Seconds (%) 100% 90% Mon 80% Tue 70% Wed 60% Thu 50% Fri 40% Sat 30% Objective 20% 10% 0% 12:00 10:00 11:00 8:00 9:00 1:00 2:00 3:00 4:00 5:00 Time of Day Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 36 Service Level Revisited Service level erratic and below objective 120% Calls Answered in 20 Seconds (%) 100% Mon 80% Tue 60% Wed Thu 40% Fri Objective 20% 0% 7:00 8:00 9:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 10:00 11:00 12:00 Time of Day Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 21. 37 Service Level Revisited Service level fairly consistent and below objective 120%Calls Answered in 20 Seconds (%) 100% Mon 80% Tue Wed 60% Thu 40% Fri Objective 20% 0% 10:00 11:00 12:00 8:00 9:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 Time of Day Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 38 1. Choose service level/ response time objectives. 9. Repeat for a higher and 2. Collect data. lower level of service. 8. Calculate The Planning 3. Forecast call costs. load. and Management Process 7. Organize 4. Calculate schedules. base staff. 6. Calculate 5. Calculate rostered staff trunks (and factor related system (shrinkage). resources). Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 22. 39 Do it right the first time Meet your Be accessible commitments, keep your promises Treat me courteously Tell me what to expect Be responsive to what I need and want Be socially responsible and ethical Do what I ask promptly Ensure I deal with Follow up trained and informed employees Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 40 Components of a Quality Interaction• Customer can access the contact channels desired• Contact is necessary in the first place• Customer is not placed in queue for too long• Customer is not transferred around• Customer doesn’t get rushed• Agent provides correct response• All data entry is correct• Customer receives correct information• Agent captures all needed/useful information .  Continued… Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 23. 41Components of a Quality Interaction (cont.)• Customer has confidence contact was effective• Customer doesn’t feel it necessary to check-up, verify or repeat• Customer is satisfied• Agent has “pride in workmanship”• Unsolicited marketplace feedback is detected and documented• Others across the organization can correctly interpret and effectively use the information captured• The organization’s mission and brand is furthered Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 42 Costs When Quality Is Lacking• Unnecessary service contacts• Repeat contacts from customers• Callbacks to customers for missing or unclear information• Escalation of contacts and complaints to higher management• Contacts to customer relations• Handling product returns• Expenses to re-ship• Wrong problems get fixed Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 24. 43 Costs When Quality Is Lacking (con’t)• Loss of revenue from cancellations• Cancellations causing inaccurate inventory status• Cost of closing accounts• Negative publicity from angry customers• Loss of referrals• Diversion of agents to activities that should be unnecessary• Agents “taking the heat” for mistakes made by others Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 44 Service Level andInput: Average talk time in seconds = 180 Average after call work (wrap up) in seconds = 30 Quality, Revisited… Calls per half hour = 250 Service level objective in seconds = 20Output: Agents ASA SL Occ TKLD 30 208.7 23.5% 97% 54.0 31 74.7 45.2% 94% 35.4 32 37.6 61.3% 91% 30.2 33 21.3 73.0% 88% 28.0 34 12.7 81.5% 86% 26.8 35 7.8 87.5% 83% 26.1 36 4.9 91.7% 81% 25.7 37 3.1 94.6% 79% 25.4 38 1.9 96.5% 77% 25.3 39 1.2 97.8% 75% 25.2 40 0.7 98.6% 73% 25.1 Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 25. 45 Objectives with Big Payoffs• Business unit value• Customer satisfaction / loyalty• Employee satisfaction• Quality / first contact resolution• Service level / response time• Adherence to schedule• Forecast accuracy Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 46 Business Unit Value (Strategic Value) Three (Potential) Levels of Value Customer Loyalty Efficiency Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 26. 47Look for Leverage… Every Role, Every Activity! The CC’s Value Strategic contributions Improvements in FCR Contacts handled; < AHT Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved. 48 To Contact and Connect: ICMI Office: International Customer Management Institute: www.icmi.com or 719-268-0305 Brad, direct: Brad Cleveland Senior Advisor, ICMI bcleveland@icmi.com 208-928-7311 (direct) Blog: www.bradcleveland.com/blog Twitter: www.twitter.com/bradcleveland Copyright © 2010 International Customer Management Institute (ICMI). All rights reserved.
  • 27. International Customer Management Institute Empowering organizations worldwide to provide the best customer experience possible through industry-leading professional services such as consulting, events, training and information resources. Improve Contact Center Operations Empower Contact Center Employees Enhance Customer Loyalty
  • 28. Notes
  • 29. Notes