Cost Reduction System inthe Call Center


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Reduce expences without destroying your employee engagement and customer satisfaction.

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Cost Reduction System inthe Call Center

  1. 1. Bruce Simpson Transcom is pleased to partner with SwitchGear Consulting to present <ul><ul><li>[email_address] </li></ul></ul>Note: This presentation is best viewed as a Webinar. Go to to view Use the “Solutions” tab
  2. 5. Cost Reduction System, reducing cost in LAYERS BHAGs … What we will get today? Current State… requires a Realistic & Proactive plan Key Insights & Next Action! <ul><ul><li>Transcom Feedback Survey </li></ul></ul><ul><ul><li>YOU! … Make a Decision, Take an Action! </li></ul></ul><ul><ul><li>[email_address] na .com </li></ul></ul><ul><ul><li>Transcom CRM series – Commit to coming back </li></ul></ul>Purpose & Context for our Discussion <ul><ul><li>[email_address] </li></ul></ul>AFTER Today
  3. 7. <ul><ul><li>[email_address] </li></ul></ul>
  4. 8. Place Charles de Gaulle, Paris <ul><ul><li>[email_address] </li></ul></ul>
  5. 9. Place Charles de Gaulle, Paris Contact Centres are like the Arc de Triomphe ! <ul><ul><li>[email_address] </li></ul></ul>
  6. 10. Place Charles de Gaulle, Paris 12 major roads converge at this famous roundabout 10 lanes of concentric traffic Not covered by French insurance companies Contact Centres are like the Arc de Triomphe ! <ul><ul><li>[email_address] </li></ul></ul>
  7. 11. Projects HR Changes IVR Marketing Senior Leaders System changes Telecom Web QA Facilities T & D People stuff Cx Issues Technology Issues Calls & SL = Ecosystem! World’s Biggest Roundabout TL or Managers AND Agents Contact Centre Suppliers Customers! 1 12 2 3 4 5 6 7 8 9 10 11
  8. 12. Current State Summary <ul><ul><li>[email_address] </li></ul></ul><ul><li>Current Economic Environment </li></ul><ul><li>Call Centres represent “Easy Money” for CFO’s plan </li></ul><ul><li>This time is VERY different… </li></ul><ul><ul><li>Complexity of what contact centers do </li></ul></ul><ul><ul><li>Importance of the Customer Experience </li></ul></ul><ul><ul><li>Knowledge worker engagement </li></ul></ul><ul><li>Let’s focus on Proactive trimming vs Reactive cutting </li></ul>
  9. 13. Cost Reduction System <ul><li>Identifies WHAT costs & predicts savings at 3 Layers: </li></ul><ul><ul><li>Strategic Service Delivery LAYER (Channel Strategy, Self Service) </li></ul></ul><ul><ul><li>Operational Design LAYER (@Home, Outsourcing, Org. Design) </li></ul></ul><ul><ul><li>Execution LAYER (Payroll Leakage, Rework Costs) </li></ul></ul><ul><li>Standardizes HOW Planning & Initiatives occur: </li></ul><ul><ul><li>Targeted Solutions with clear ROI and Payback timelines </li></ul></ul><ul><ul><li>Systematic data-driven benchmarking = science vs spontaneity </li></ul></ul><ul><ul><li>Phased approach… what is 1 st , 2 nd , 3 rd … and DRP </li></ul></ul><ul><ul><li>Risk assessment (CSAT, Employee Engagement, Financial) </li></ul></ul><ul><li>Solution Development Principles – Tier 1 & 2 </li></ul><ul><ul><li>[email_address] </li></ul></ul>
  10. 14. Service Delivery Strategy Layer Service Delivery Strategy Layer <ul><li>Channel Strategy </li></ul><ul><li>Create or augment Self Service Strategy </li></ul><ul><li>Channel Migration and Containment </li></ul><ul><li>Contact Strategy </li></ul><ul><li>Centralized vs. Decentralized - # of sites </li></ul><ul><li>Contact Structure – Q Function and Skills Required. </li></ul><ul><li>Continuum from Universal Agent to Specialty Agent </li></ul><ul><li>In-house versus Outsource, In-house VS Home Agents </li></ul><ul><li>Disaster Recovery Strategy </li></ul><ul><li>Optimizing Customer Preferred Channel </li></ul><ul><li>Enterprise Call Reduction </li></ul><ul><li>Streamline process </li></ul><ul><li>Grow Revenue – which channel, which relational products </li></ul><ul><li>Alignment of E : R to Business & Performance Drivers </li></ul>
  11. 15. <ul><li>Organizational Design </li></ul><ul><li>Location Plan </li></ul><ul><li>Organizational Structure: Reporting ratios (i.e. TL:Agent), </li></ul><ul><li>Support and Shared Services, </li></ul><ul><li>HR role & reporting clarity & (compensation / benefits) </li></ul><ul><li>Technical Infrastructure Design </li></ul><ul><li>Telecom & IT design & Infrastructure </li></ul><ul><li>CRM, Knowledge Base, Online Learning Tools </li></ul><ul><li>WFM Management Software </li></ul><ul><li>QA Application, Integrated Reporting between Systems </li></ul><ul><li>Workforce Design </li></ul><ul><li>Forecasting and Scheduling Process and Procedures </li></ul><ul><li>Mix of In-House vs. Outsource, </li></ul><ul><li>Establishing Cost Effective Service Levels, Mgmt Ratios </li></ul><ul><li>Hours of Operation, Queue and Skills Routing Strategy, </li></ul><ul><li>Creating Flexible Workforce (Home VS Onsite PT/FT) </li></ul>Operational Design Layer Operational Design Layer
  12. 16. <ul><li>Channel Efficiency </li></ul><ul><li>Workflow & process adherence (broken? Is it being followed?) </li></ul><ul><li>Reduce Rework: FCR, Error Rates & Service Recovery, Transfers </li></ul><ul><li>Time to resolve </li></ul><ul><li>Forced channel mandate </li></ul><ul><li>WFM execution (intraday workforce optimization) </li></ul><ul><li>Workforce Efficiency </li></ul><ul><li>1) Payroll Leakage </li></ul><ul><li>Agent time (% Manned / Paid) </li></ul><ul><li>System / productive time (talk, AHT, ACW) </li></ul><ul><li>Internal outbound calls, transfer rates & hold time </li></ul><ul><li>Offline time (absence, adherence, etc,) </li></ul><ul><li>2) Agent Speed to Proficiency </li></ul><ul><li>Performance management & Alignment </li></ul><ul><li>Agent proficiency rate (New and Tenured) </li></ul><ul><li>Agent attrition rate, Quartile distribution </li></ul><ul><li>3) Support Team Efficiency </li></ul><ul><li>Direct Mgmt (ratios, effectiveness, leverage rate) </li></ul><ul><li>Support team (QA, Training, Reporting, ROI) </li></ul><ul><li>Workforce Scheduling and Process Efficiency </li></ul>Execution Layer Inside the Execution Layer Execution Layer
  13. 17. Triple Layer Cake Strategy Layer Operational Design Layer Execution Layer
  14. 18. Triple Layer Cake Strategy Layer Operational Design Layer Execution Layer
  15. 19. You have been asked to cut costs by 10-20% Where do you place your bets? <ul><li>Optimize production time </li></ul><ul><li>Reduce unwanted calls </li></ul><ul><li>Layoff employees </li></ul><ul><li>Which calls to outsource </li></ul><ul><li>Identify revenue opportunities </li></ul><ul><li>More self service </li></ul><ul><li>ROI on coaching </li></ul><ul><li>How to get FCR up </li></ul><ul><li>Make AHT go down </li></ul><ul><li>Plug productivity gaps </li></ul>Don’t gamble with your employee engagement and your customer experience
  16. 20. Solution Development Principles – Tier 1 <ul><ul><li>[email_address] </li></ul></ul>
  17. 21. Effort Impact Solution Development Principles – Tier 1 <ul><ul><li>[email_address] </li></ul></ul>
  18. 22. Time Horizon ROI Solution Development Principles – Tier 1 <ul><ul><li>[email_address] </li></ul></ul>Plan & Design Decision Implement Ramp-up Pay Back
  19. 23. Time Revenue Expense Solution Development Principles – Tier 1 <ul><ul><li>[email_address] </li></ul></ul>Fixed vs Variable
  20. 24. $$ The Longer you Wait The Deeper you Cut Solution Development Principles – Tier 1 <ul><ul><li>[email_address] </li></ul></ul>
  21. 25. Key Insights: All Three Layers Complexity!... Real & Artificial Culture is the hidden driver of unnecessary cost Unfinished Projects: IT, M&A, Workarounds, “Self-Service” Cost, Value & Disturbance Factor of “Support” Groups Role Confusion: a) Shared Services b) Matrix Org c) Vendor
  22. 26. Proactively Trim vs Reactively cut / hack Have a plan, validate the plan, have a DRP Execution is Key (includes Risk management) <ul><ul><li>Key Questions to Ask Yourself </li></ul></ul><ul><ul><li>Do I understand my costs today? Accelerants? </li></ul></ul><ul><ul><li>Do I understand my budget? Template? Allocation? </li></ul></ul><ul><ul><li>What is Best Practice? </li></ul></ul><ul><ul><li>What are you really trying to solve? … root cause? </li></ul></ul>Key Takeaways and Actions <ul><ul><li>[email_address] </li></ul></ul>
  23. 27. Residual Value: Call Centers for Dummies 23 Steps to an Effective Call Center Enterprise Call Reduction “ How to Whitepaper” Attrition Calculator Project ROI Calculator <ul><ul><li>[email_address] </li></ul></ul>
  24. 28. Thank You <ul><ul><li>[email_address] </li></ul></ul>