Strategies for an Efficient & Highly-Effective Support Organization
Strategies for an
Efficient & Highly Effective IT
St rat egies for an
Highly- Effect ive
Creating a customer-focused Peter McGarahan
President / Founder
service delivery strategy
McGarahan & Associates
• Introductions • The efficient / highly effective “Shift-
• Current economic situation Left” Strategy
• Areas of Opportunity • Service and support best practices
• The Service-Profit Chain (seamless / including:
– Resolution Ownership
transparent service delivery)
– First Contact Resolution
• Knowing what your customers want / – Knowledge utilization
expect – Team work / Proactive Support
• Designing a customer-focused service – Customer satisfaction / experience / QA
vision / strategy – Measurement / reporting
• Alignment with business goals / • The Success tool kit
objectives • Your yalue proposition
• Customer-focused service structure &
About The Speakers
• Peter McGarahan, President McGarahan &
• 12 years with PepsiCo/Taco Bell IT and
• Managed the Service Desk and all of the IT
Infrastructure for 4500 restaurants, 8 zone
offices, field managers and Corporate office
• 2 years as a Product Manager for Vantive
• Executive Director for HDI
• 6 years with STI Knowledge/Help Desk 2000
• Founder, McGarahan & Associates (5 years)
• 2 years as Chairman, IT Infrastructure
Current Economic Drivers
• Challenging /cautious economic outlook for 2010.
• “Hold tight” budgets / staff – Enjoying the profit angle.
• Cost sensitive customers – Service providers cost concessions.
• Projects postponed, placed on-hold or canceled.
• Reevaluate budgets for cost reduction opportunities.
• Evaluate services to determine the cost, benefit and value.
• Renewed sense of urgency to squeeze more value out of services.
Areas of Opport unit y
All Access Channels • Improve efficiency, integration and cooperation
across all customer ‘touch-points”.
• Provide the same customer experience across
• Discontinue supporting customers through
different “band-aided” processes/systems!
• Automate and integrate all processes into one
tightly unified, efficient system.
• Anticipate the customer’s needs and be
One, consolidated, streamlined, • Map training from ongoing Quality Monitoring.
efficient, cost-effective and
• Map the best practice processes into the tools.
Service Different iat ion
there w ould be no business and therefore no need for my services
• Think creatively about your daily performance.
• Innovate and work hard to treat every
customer like they were your only customer.
• Do something for them they wouldn’t expect.
What ’s Your View of The World?
In tough economic conditions, the focus must be on YOUR customer....
1. The Customer
experience & touch
2. Increase ROI &
Utilization from existing
3. Streamlining &
service delivery for
The Service-Profit chain establishes the interconnected relationships among
internal service quality; employee satisfaction, retention and loyalty; service
value; customer satisfaction and loyalty; revenue growth; and productivity.
What t he Cust omer Want s / Expect s!
• Anytime access / availability (7x24)
• Immediate response
• Faster issue resolution / elimination
• Quality and consistent solutions
• Knowledgeable Customer Service
• “One click away” / Information
• Easy to find, easy to use
Designed wit h t he Cust omer-in-Mind
Create a seamless, transparent and WOW customer experience!
Be EZ to do business with. Rapid, Efficient, Integration & Collaboration.
Ensure your strategy, structure, process and
people can adapt and respond quickly to
changing customer preferences / market
Design a customer-centric conditions / competitive threats.
Designing a Cust omer-Focused Service St rat egy
• Think differently about your services and how they are
– Processes (efficiency and effectiveness).
(Education Structure &
– People (utilization and engagement).
– Tools and technologies (automation and integration).
– Metrics and reporting (operational and financial). & Reporting
– Customer Service (differentiate and survey). Processes
Ensuring Business Alignment
Service & Support Vision
– The purpose is to lead, motivate and inspire. Business Strategy
– Envision the end – performance metrics and
business benefits. L
– Educate stakeholders and get buy-in. I Customer Strategy
Supporting Strategies G
– The purpose is to addresses how you will get there. N Customer-focused
– Select and prioritize processes & tools. M Service Strategy
– Identify key resources. E Enabling
– Secure senior management support. N Strategies
Critical Success Factors (Metrics) T 1 2 3 4
– Select metrics for directional purposes.
• Baseline, Target & Actual.
Metrics Metrics Metrics
– Assess progress, directional accuracy and
continuous improvement plan.
The compensation plan should drive behavior.
– Focus on Balanced Scorecard approach to quality,
Success based on achievement of Critical
performance, utilization, customer satisfaction, Success Factors (CSFs)
costs, proactive measures, expanding scope of
Customer-Focused Service St ruct ure & St rat egy
Characteristics: Business-focused, Virtual, On-demand, Cost-effective, Responsive, Predictable, Consistent and Adaptive
IS OPS Services
Network & Technical
Bus. Analysis &
Commit to Response Hold Vendor accountable
AL Questions, Issues and Requests Provide Knowledge / Training
/ Resolution time to Underpinning Contract
Call elimination / Increase Reduce escalations Reduce / Eliminate
Self-service First Contact Res (FCR) Level-2 Need for dispatch
Implement a “Shift -Left ” Service St rat egy
Bring visibility to repetitive, costly issues, especially the
ones being continually escalated to more costlier levels of support. 1. Examine all problems and
Level-0 Level-1 Level-2 Level-3 problem resolution to the
most-efficient and cost-
Technologist effective support level.
2. Tracking percentage of
Escalated resolved cases by group,
$18-$23 levels and cost in the
$2 - $12 3. Understand which levels
(groups) are resolving
Automated which cases, how many
and what cost.
Types in Level they are 4. Calculate a cost per call /
n resolution analysis.
Mean time to resolution
Calculate Cost Per Call
From all initiatives.
Compare and contrast.
Justify Know you baseline.
Run IT like a Business Investments.
Use Financial Metrics
Source: HDI 2009 Practice & Salary Survey
Reduce t he Cost of Support
Know what call types Increase FCR / FLR Know what call types
you escalate. Lower Cost Per Resolution. you resolve at FC.
Handle all Requests / Work with L2 managers Target call types for FCR
Resets / FAQs Through to provide training, access, that are currently being
Self-Service Portal (L0). and knowledge articles. escalated.
Service and Support Best Pract ices
First Contact Resolution
– Use all of our available resources (team
members, training, tools, documentation,
past incidents, etc.) to provide issue
resolution at first contact.
– Empowering the team to make front-line
decisions and coordinate best practice
– Spotting trends, related issues and
reoccurring issues and working to ensure
that we minimize business impact,
communicate appropriately and work to Link Costs to Demand
learn from the situation. Know your demand for IT Services, compare it to
your resource supply, utilization, SLA adherence
and anticipated demand.
Service and Support Best Pract ices
Total Contact Ownership
– The Support Center will continue to address a customer's
issue/request and follow up, validate and communicate status until
the issue or question is resolved to the customer's satisfaction.
Quality Ticket Documentation
– Research, diagnose, prioritize and document thoroughly (it did not
happen if it's not documented in the ticket).
The Benefit s of First Cont act Resolut ion
• On average, every 1% percent increase in
first-contact resolution (FCR) results in a
0.64% increase in customer satisfaction.
• Drive total support cost down while
continuing to offer self-service solutions.
• Efficiency metrics:
– Resolution cost & Resource utilization.
• Effectiveness metrics:
– Timely closure, Quality resolution, Customer
FCR – The Ripple Effect !
As Knowledge Base Expand Services – Utilizing Same People!
Utilization (KBU) increases… 70
• First contact 40
• Customer satisfaction. 10
• Productivity. 0
Januar y Febr uar y Mar ch Apr il May June
• Average mean time to
• Average talk time.
• Total support costs.
• Reduction in call types.
Drive Cust omer Sat isfact ion
0 1 2 3 4 5 6 7 8 9 10
No Moderate Worst
Pain Pain Possible
0 2 4 6 8 10
NO HURT HURTS A HURTS A HURTS HURTS A HURTS
LITTLE BIT LITTLE MORE EVEN MORE WHOLE LOT WORST
• Customer satisfaction MUST be a strategy.
• On average, every 1% percent increase in first-contact resolution (FCR) results in a
0.64% increase in customer satisfaction.
• Customer Satisfaction Index must be the ‘barometer’ for all other performance
• It must be engrained in the culture and a top priority for Management.
• The strategy includes baseline and transactional surveys with a focus on
communicating the results and action plan to the customers.
Validat ion, Success, Closure
• Resolution is the moment of truth in the customer
• Either you resolve the customer’s issue or you don’t.
• When you do:
• A resolved case is not closed until the customer tells you it
has been resolved to their satisfaction.
• If escalated, you can still create a win-win situation
• Creating a clear impression that you will own the issue
• Confirming with the customer their case ID number, your
name, and expected response time.
• Provide regular status communication during “resolution
progress” – customer preference (email / phone / both).
Ensuring Cust omer Sat isfact ion
• Provides vital quality of service information to
• It records calls/screens for scheduled evaluation.
• Results are included in analyst scorecards.
• Used for coach agent on areas of improvement.
• Used to recognize professionals who are star
• Ensure consistent and professional service by:
– Demonstrating the importance and linkage between customer
service skills learned in training and what the customers think
of your service (survey).
The Success Tool Kit
• Integrated Customer Service • Remote Support
Management Tool – Providing support professionals in
– An integrated, out-of the box any location the ability to access,
solution that enables best practice troubleshoot, diagnose, upgrade, or
process for seamless, transparent fix any computing device anywhere
and superior service delivery. around the world – without ever
leaving their desks.
– Best practice workflow engine.
• VoIP Solution
– The ability to know where your team
– Integrated voice and data to enable
is performing with critical
the functionality of ACD, IVR and
operational metrics – real-time.
• Knowledge Management
– IM capabilities to access the various
– An integrated Knowledge data base
Subject Matter Experts real –time
that is supported by a KM strategy
Your Value Proposit ion
• Listen to / Learn from your customer / know
what’s important to them.
• Ask what you are NOT doing, not just what you
are doing well and not doing well.
• Survey customers who are NOT using your
• Identify and leverage customer champions
(external) and senior customer sponsors
• Be the “voice of the customer” / Customer
• Know why you win customers (attraction), why
you lose them (defection) and what can you do
to prevent losing them (loyalty, retention &