How to Build a World-Class Back Office

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Paul Leamon presents common back office challenges, and defines what a world-class back office looks like, and how to build one. Additionally, explains the business impacts of becoming a world-class …

Paul Leamon presents common back office challenges, and defines what a world-class back office looks like, and how to build one. Additionally, explains the business impacts of becoming a world-class back office.

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  • 1. How to Build a World-Class Back OfficePaul LeamonDirector, Back Office Product Management
  • 2. Agenda NICE Overview Back Office Challenges What is a World-Class Back Office? How to Build a World-Class Back Office? Business Impact
  • 3. Software solutions that take organizations from insight-to-impact, addressing three main business segments: • Enterprises – enhancing the customer experience and increasing revenues through a broad variety of customer interaction channels • Financial institutions – ensuring compliance and preventing financial crime • Government agencies, public and private organizations – ensuring safety & security
  • 4. NICE (NASDAQ: NICE) 1986 Founded Customers Expected full year non-GAAP 2011 revenues* Service Countries Professionals* Per guidance provided on November 3, 2011
  • 5. The NICE Offering NICE ENTERPRISE Customer Interactions NICE SECURITY Safety & Security NICE ACTIMIZE Financial Risk & Compliance 5
  • 6. The Essence of Our Offering Intent Insight Impact Capturing the intent of  Extracting insights using  Making an Impact on: individuals advanced analytics  Customer experience  Real-time cross-channel  Regulatory compliance Multi-channel interactions analytics  Operational efficiency and transactions  Multi-sensor data  Financial crime prevention Multiple data sensors correlation  Safety and security !
  • 7. BACK OFFICE CHALLENGES
  • 8. Back Office Frustration  How to improve employee performance?  How to improve compliance?  Backlogs are too large!  Overtime costs are over budget!  She believes that there is hidden capacity  How long does it take to process back office work? Mary is Director ofBack Office Processing  How to accurately plan for growth?  Need to improve quality and lower rework  Now her team has to handle calls too!
  • 9. Back Office Challenges – Accurate AHT Loans Fax  Multiple systems with no single source of data Email CRM  Employees can work on multiple items concurrently Imaging  No data for manual or paper-based processes Sales Billing Example of AHT Difficulties 11:00 What the system recorded: AHT = 2 hours 13:00 Employee took a Loan Application from the queue Loan processed to Underwriting What really happened: AHT = 30 minutes 11:00 11:15 11:30 11:45 12:15 12:30 12:45 13:00 Loan Facebook eBay Lunch Netflix Facebook Loan Employee took a Loan Application from the queue Loan processed to Underwriting
  • 10. If only she had technology like the call center! Mary is Director of Back Office Processing Matt is Director of the Call Center ACDTime and Motion Studies Workforce Performance Management Management Call and Screen Speech Analytics Recording Quality Customer Management Feedback Manual Employee Work Reports
  • 11. Back Office Technology Gaps Data Controls Management Information Systems
  • 12. What is a World-Class Back Office? When compared to the average of their peers, they have: Higher efficiency and productivity Consistently meet or exceed their service goals Lower back office costs Higher customer satisfaction and loyalty Higher quality Lower regulatory fines Higher employee satisfaction and lower attrition Lower contact center costs Intelligently share work with the contact center
  • 13. INCREASE EFFICIENCY, PRODUCTIVITY, MEETSERVICE GOALS AND LOWER COSTS
  • 14. Real-Time Activity Monitoring of Desktop Work Desktop Client Data Event Event Event EventGeneric Real-time Real-time Web DB GUI ConnectorServices Access Monitoring Event Event CONTEXTUAL CONNECTORS Event Event EventBusiness Rule EngineInterprets and Decides Multiple ApplicationsOn Appropriate Action on User’s Desktop and Data Collection Works Across Virtually ALL Application Types!
  • 15. Payback Example Back Office: 500 Employees Average Salary: $40,000 / yr Annual Payroll (without OT): $20,000,000
  • 16. Accurately Track Processes and Sub Tasks Visibility into Individual Employees to find Best Practices and Compliance Issues Use Best Practices training to increase work items per day goals Accurate AverageProcessing 4% Improvement = Times $ 750,000 16
  • 17. Process Path Analysis Report example Process Consider paths that selection included tasks All/Top/Bottom performers Process: Claim validation Tasks included: All Consider paths that Tasks not included: NA excluded tasks Employee filter : All/specific Performers: Top 20% teams/specific employees Employees: All From date: March 1 2011 Date range filter To date: March 31 2011 Max Paths: 2 Path Average task Number of pathscommonality duration Business to present KPI Based • Average weighted score: 74% 45% 62 55 110 50 64 • 99 instances • 42 employees Path Commonality • Average duration: 341 sec Path - order of tasks • Average weighted score: 83% 33% 37 68 115 59 • 99 instances • 51 employees • Average duration: 279 sec 0 50 100 150 200 250 300 350 400 Review incoming email Duration (seconds) Create new claim entry Validate customer eligibility Approve/reject claim Knowledge base
  • 18. Total Application Usage Report Find “Hidden” Capacity: Facebook eBay Netflix Facebook Facebook eBay eBay Netflix Netflix 10 minute Improvement =Find and Eliminate Excessive Non-Work Time $ 416,000 18
  • 19. Idle Time Home Loans 21 854 4.98 1.08 5 minute Improvement = Find and Eliminate Excessive Idle Time $ 208,000
  • 20. Tools to Automate Capacity Management Activities The Workforce Analyze Schedule People Management Performance & Events Cycle Manage Change 1 % Staffing improvement = $ 200,000
  • 21. Performance Suite One Version of Personalized forDisparate Data A Holistic Approach to the Truth… Every Person Sources Improving Performance and Role Example Sources KPI Dashboard Analytics Incentives Workflow Executive Dashboards Coaching Forms ETL Tool Built for Performance Management 2 % Productivity improvement = $ 400,000
  • 22. HIGHER CUSTOMER SATISFACTION, LOYALTY ANDHIGHER QUALITY
  • 23. Quality Management Screen Recording Configurable Custom & Playback Employee Coaching Evaluation Forms Packages Visibility into employee screen navigation to find and fix root causes of errors Tailor evaluation forms to focus on quality objectives specific to the business Deliver & schedule customized coaching packages for individuals & teams Error rate lowered from 4% to 2% = $ 333,000
  • 24. LOWER REGULATORY FINES
  • 25. Process Compliance Enforcement Define Desktop Workflows Ensure process compliance within and across applications $ 1,000 per day Improvement = $ 260,000
  • 26. INCREASE EMPLOYEE SATISFACTION ANDLOWER ATTRITION
  • 27. Automate Manual Work BEFORE AFTER Employee  Employee enters manually adds information once customer address and invokes the & other common automatic information in population of data multiple in the other applications applications Time consuming  Time saved and and chance of entry errors error high eliminated 10 Minute improvement = $ 416,000
  • 28. Real-Time Guidance Employees cannot know everything Guides employees through complex back office processes Presents relevant information in a call out window Provides information relevant to each step in the process Guidance based upon the specific needs of the individual Push knowledgebase information instead of employees hunting for it 4% Improvement = $ 750,000
  • 29. User Interface Consolidation Save time by providing required information from multiple sources in one call out More cost effective than using 3 monitors 5 minute Improvement = $ 208,000
  • 30. LOWER CONTACT CENTER COSTS
  • 31. Making the Ultimate Customer Connection Contac  Business processes often spanBack t Custome contact center and back officeOffice r Center  Back office issues drive costly interactions into contact center  Back office inefficiencies impact enterprise profitability  Both contact centers and back offices impact customer experience Ultimately- customers are impacted by the ENTIRE enterprise
  • 32. INTELLIGENTLY SHARE WORK WITH THECONTACT CENTER
  • 33. Intelligently Share Work with the Contact Center Back offices can provide some support for easy to handle call types to help with the peak hours of the day Contact centers can provide some support for related back office work during the lowest volume Back Office helps the hours of the day Contact Center Contact Center helpsContact Center Forecast the Back Office
  • 34. BUSINESS IMPACT
  • 35. Strong ROI, Quick Payback Plus, additional  Example: savings from lower  500 Employee Department contact center call  Annual Salary: $ 40,000 volumes!  Payroll: $ 20,000,000 Savings  Find and replicate best practices (4% ): $750,000  Eliminate 10 minutes of non-work time: $416,000  Find and eliminate 5 minutes of idle time: $208,000  1% staffing improvement: $200,000  2 % productivity improvement: $400,000  Lower error rate from 4% to 2%: $333,000  Lower regulatory fines $1,000/day: $260,000  Use automation to save 10 minutes: $416,000  Real-time guidance saves 4% work time: $750,000  Use UI Consolidation to save 5 minutes: $208,000  Total: $ 3,851,000  Payback < 6 months
  • 36. CASE STUDY
  • 37. Insurance Case StudyOne of the largest “We need this solution because today we  10% efficiencyinsurance are living in the Dark Ages, with no gain by monitoring visibility into the work our employees arecompanies in the desktop work doing.”United States with  20% staffingmillions of savings through Improved Operational Efficiencybeneficiaries. Real-Time Activity Monitoring improved  Gained visibility into insurance forecasting and processing to improve productivity scheduling  Monitored application usage, web  One copy and browsing and idle time to reduce paste automation unproductive time saved 28 seconds Real-Time Activity per process and Monitoring Real-Time Process Optimization eliminated errors Real-Time Process  Automation to improve efficiency Optimization Workforce Management Workforce  Improved Forecast Accuracy Management  Increased Scheduling Efficiency