04/28/13 2Agenda Get to know Orange Lake Resorts Business Processes Current Environment How to Discover Secure the Discovery Critical Discovery Factors Business Process Optimization Methodology Approach Assessment Action Plan Value analysis of Recommendations Newer technologies Keep in mind How to Develop The PLAN How to Design New Processes Define the vision Successfully Develop The PLAN Technology Financial Analysis Change Management Conclusion Q&A’s / Adjourn
DISCOVERY Before re-designing processes,– Understand Orange Lake Resorts currentenvironment so that the end-state meetsOLR needs. Discovery provides that understanding– What is unique about our organization, theissues we face, and the goals OLR hasdefined.– Discovery establishes the context withinwhich we define and understand ourcurrent processes.04/28/13 3
How Shall We Discover Allow Team Units to present information for the area(s) theyrepresent: Overview of current operations, processes and technology System and process demonstrations Process observations, if required, for everyone to be fullyinformed Strengths, weaknesses, and opportunities in each area04/28/13 4 Motivate team to get up to speed on best practices andenabling technology for each area under review. Assign responsibility for research and reporting to theentire team and assign due dates.
Secure the DISCOVERY04/28/13 5 Revisit the project definition and scope now that all team members have theinformation they need. Use flow charts to define the high level call center functions with basic linksto other departments. RACI tables (Responsible, Accountable, Consulted, and Informed) to explorelinks to other areas and ensure those stakeholders are at the table. Finally, we shall use multi-tiered, swim-lane charts to document processeswhen required.CLUB Capital Mgmt Mkt Off Site Mkt & Sales On Site MktJay D Nick P Lea W David H David K Steve PRaniceR S MurphyMKellyPAngelJerryB Will TFunctionA R A C R A C IBCResponsible, Accountable, Consulted or Informed (RACI) chart defines the stakeholders and roles
Critical Discovery Factors04/28/13 6Here are some critical success factors to keep in mind as we“Discover” our current operations:Expand Discovery beyond our own four walls – researchbenchmarking and best practices within and outside our industry to fullyunderstand what is possible.Explore how state of the art technology might enable our processvisionWe need only understand our “as-is” environment and processessufficiently to move forward. (Don’t get bogged down in detailed “as-is”process mapping unless it has a material impact on process redesign).We shall record baseline metrics to ensure we can measure theresults of process redesign when the project is complete.
Assessment04/28/13 9 Base the assessment on the understanding of the current processeswe achieved in the Discovery phase. Identify opportunities for process improvement by watching for thefollowing conditions: Lots of paper and manual processes Inconsistent execution, including unmet commitments Many layers of review and approval High error rates and significant rework Low self-service success rates “Tribal knowledge” rather than documentation, manuals andtools to enable process steps Low first contact resolution leading to high transfer or handoffrates Customer complaints Contact Center agent complaints and turnover
Action Plan04/28/13 10 Create a “short list” of ideas to achieve significant improvements Focus on the biggest pain points, our business goals, and bestpractices Consider process strengths to build on as we identify opportunitiesto improve Define actions to take to improve processes, and the critical successfactors to make those actions viable and sustainable Set priorities and define outcomes to expect for each processchange recommendation. Develop our assumptions and principles for process change Identify all associated implications and requirements for other areas,including technology, organization, metrics and changemanagement Where appropriate, define and analyze options and tradeoffs,measuring against criteria relevant to our situation such as cost,complexity, and speed to implement Create recommendations and define the key decisions we need tomake to solidify our process redesign action plan.
Value analysis of Recommendations04/28/13 11Conduct some preliminary value analysis of the recommendations andoptions under considerationUnderstanding what’s possible with technology is critical to processimprovementsTechnology acts as an enabler and catalyst for process changeThree target areas to look for ways to get more out of what we have ormake a big impact on process changes are: Routing Customer Relationship Management Knowledge Management tools
Newer technologies04/28/13 12Look at newer technologies to assess the role they could play inoptimizing our processes:Unified communications – specifically the Communications EnabledBusiness Process (CEBP) component offered by many contact centervendors within their contact center product suitesBusiness Process Management Suites (BPMS) – typicallyconsidered an enterprise application so remember to include IT in ouranalysis phaseDesktop-based process analysis tools, including those fromperformance optimization suite vendors (e.g., those delivering ourWorkforce Management System)Desktop application integration and process automation tools
Keep in mind04/28/13 13Here are some critical success factors to keep in mind as we “assessand analyze” our current operations for process optimizationopportunities:Involve the entire project team to get a broad picture of where ourcurrent processes might be broken.Don’t be constrained by our current process definition. To reallyoptimize, we have to think out of the box.Ensure IT is part of the discussion to assess opportunities to getmore out of our existing technology and to assist in identifying anddefining requirements for new technology.Don’t forget the agent desktop. Optimizing desktop call handling canenhance agent efficiency and reduce training requirements.
How to Develop The PLAN04/28/13 14These steps launch our transition from exploring the options to usingthe analysis our team has done to design new processes and theaction plan:Validate our project goals, objectives, and scope, focusing on thebusiness drivers and what they mean for process redesign.Review and validate the process redesign assumptions.Define principles that will govern the types of process changes thatthe organization can make.Identify process changes that support the business goals, developedaccording to principles. We shall consider front line processes, supportprocesses, back office processes, other workflows, and self-service.
How to Design New Processes04/28/13 15 Once we have the context within which we will design our newprocesses, start by documenting the functions performed in thecontact center at a high level to understand the relationshipsamong the functions and to identify touch points outside the contactcenter. This step ensures that as we target the specific functions orsub-functions for re-design/optimization, we understand theimplications for other processes within the contact center andoutside the contact center. We shall also identify any other impacted stakeholders that shouldbe part of our project team. Use basic flow charts to define high level functions and therelationships among them,
Define the vision04/28/13 16Now we are ready to dig deeper into the functions identified for redesignThe next step is to define the vision for the to-be process; and reviewas-is process analysis/documentation developed during the previousphases of our project as input to our thinking, along with the transitionsteps noted above.Then draft detailed swim lane charts supported by process definitiontables to document the process vision (or to-be state) for the newprocesses.This stage is an iterative process and may involve several meetings toensure we optimize the to-be processes. We shall then start designing the new process using “yellowstickies” on a white board before finalizing the design. There will be changes as our team brainstorms options.
Define the vision04/28/13 17Now we are ready to dig deeper into the functions identified for redesignAs we complete these steps, we will document the process changes andsupporting information, and iterate with the team and the sponsors tovalidate the process changes. Our goal is the “stamp of approval” to moveforward.
Successfully Develop The PLAN04/28/13 18Here are some specific steps required to plan for implementing new processeswithin our organization and include:Review process flows, RACI, swim lane charts and supporting tables toensure the team completely understands the new processes.Identify impacts on staff and changes that are required to support the processredesign. Consider front line staff, support staff, and back office staff.Identify how existing applications will be used differently and/or priorities fornew technology, including sourcing and support models.Review issues and opportunities to change metrics and reporting to meet ourgoals.Define the role of management in process optimization success.Define the role of formal change management in process optimizationsuccess.Complete any financial analysis of the benefit of the proposed processchanges.Define key steps to pursue the process changes defined.Prioritize actions and develop target timelines and phasing.
04/28/13 19BusinessProcessOptimizationA successful business process optimization project rests atop threepillars of implementation: technology, financial analysis and changemanagement. See Figure below
TECHNOLOGY04/28/13 20Process optimization generally entails eliminating or automating steps. We mayneed to purchase and install new technology before our new processes can gointo effect.Don’t cut corners with this step!Follow a best practices approach to technology procurement by using ourcross-functional team to define detailed requirements, establish vendorevaluation criteria, prepare and distribute a Request for Proposal (RFP) to twoor three vendors that were chosen through a reasonable due diligence process.Evaluate the responses by scoring them against our selection criteria andselect the best vendor to meet our requirements.Once we’ve selected the technology we need, we’ll progress toimplementation. Remember to involve the front-line users in both steps.Training and pilots are the next critical steps in the implementation of BPOtechnology, ensuring the technology is effective for the users in a productionenvironment.Another target area is the reporting and analytics, which often get short-changed.Make sure the implementation includes steps to ensure these elements areworking well and delivering the information analysts need to continue tooptimize the processes.
FINANCIAL ANALYSIS04/28/13 21Part of getting buy-in for project approval is building a business casethat quantifies the costs and benefits of the process change.The business value of a process change generally translates intomeasurable changes in a few specific variables, such as averagehandle time, first call resolution, quality scores and customersatisfaction. We can think of those variables as “success metrics.”Before we launch our BPO initiative, we must establish a baselinevalue for the variables that we have identified as driving the benefit ofour process change.Determine how we’ll track changes in theses metrics as we executeour optimization plan.Document and report on the improvements. Current stakeholders willwant assurance that their investment dollars were well spent.Prospective stakeholders will be more inclined to fund additionalprojects as they gain confidence in our ROI models and projectprocess.
CHANGE MANAGEMENT04/28/13 22Process change alters the way people in your organization work. Manypeople – if not most – will resist adjustments to work habits androutines to which they’ve become accustomed. We’ll need to institute aformal Change Management program to help people adapt to thechanges and ensure success. A formal change managementmethodology should include:A communication plan that informs employees of the who-what-when-where-why-how of our initiative and gets them excited about thechangeA sponsorship roadmap that details responsibilities forcommunication and other roles the primary advocates play insupporting the projectTraining those whose work processes will changeCoaching through the change to ensure our staff feel supportedduring what could be a difficult timeReinforcement through additional training when required andcelebrating successes
Conclusion04/28/13 23KEEP THE TEAM TOGETHER THROUGH PILOT AND ROLL OUTProcess change can be difficult so it will be worthwhile to pilot thechange in stages before rolling out to full production.Fine tune our processes, technology application and plans based onthe pilot results.Keep our cross-functional project team in place throughout the pilotand rollout.As we measure the results of your optimization effort, our team canadvertise the results to support our change management effort andensure continued buy-in at all levels.
Questions and Comments04/28/13 24Approach to Orange Lake Resorts BusinessProcesses Initiative