The document summarizes a presentation about reducing costs in contact centers through a three-layered approach. It identifies strategic, operational design, and execution layers that can be optimized to cut costs by 10-20%. Key recommendations include prioritizing efforts that have high impact and return on investment, developing a phased plan, and focusing on proactive trimming rather than reactive cuts to avoid damaging customer experience and employee engagement.

1. Bruce Simpson Transcom is pleased to partner with SwitchGear Consulting to present [email_address] Note: This presentation is best viewed as a Webinar. Go to www.transcom.com/northamerica to view Use the “Solutions” tab

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! Transcom Feedback Survey YOU! … Make a Decision, Take an Action! [email_address] na .com Transcom CRM series – Commit to coming back Purpose & Context for our Discussion [email_address] AFTER Today

7. [email_address]

8. Place Charles de Gaulle, Paris [email_address]

9. Place Charles de Gaulle, Paris Contact Centres are like the Arc de Triomphe ! [email_address]

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 ! [email_address]

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

12. Current State Summary [email_address] Current Economic Environment Call Centres represent “Easy Money” for CFO’s plan This time is VERY different… Complexity of what contact centers do Importance of the Customer Experience Knowledge worker engagement Let’s focus on Proactive trimming vs Reactive cutting

13. Cost Reduction System Identifies WHAT costs & predicts savings at 3 Layers: Strategic Service Delivery LAYER (Channel Strategy, Self Service) Operational Design LAYER (@Home, Outsourcing, Org. Design) Execution LAYER (Payroll Leakage, Rework Costs) Standardizes HOW Planning & Initiatives occur: Targeted Solutions with clear ROI and Payback timelines Systematic data-driven benchmarking = science vs spontaneity Phased approach… what is 1 st , 2 nd , 3 rd … and DRP Risk assessment (CSAT, Employee Engagement, Financial) Solution Development Principles – Tier 1 & 2 [email_address]

14. Service Delivery Strategy Layer Service Delivery Strategy Layer Channel Strategy Create or augment Self Service Strategy Channel Migration and Containment Contact Strategy Centralized vs. Decentralized - # of sites Contact Structure – Q Function and Skills Required. Continuum from Universal Agent to Specialty Agent In-house versus Outsource, In-house VS Home Agents Disaster Recovery Strategy Optimizing Customer Preferred Channel Enterprise Call Reduction Streamline process Grow Revenue – which channel, which relational products Alignment of E : R to Business & Performance Drivers

15. Organizational Design Location Plan Organizational Structure: Reporting ratios (i.e. TL:Agent), Support and Shared Services, HR role & reporting clarity & (compensation / benefits) Technical Infrastructure Design Telecom & IT design & Infrastructure CRM, Knowledge Base, Online Learning Tools WFM Management Software QA Application, Integrated Reporting between Systems Workforce Design Forecasting and Scheduling Process and Procedures Mix of In-House vs. Outsource, Establishing Cost Effective Service Levels, Mgmt Ratios Hours of Operation, Queue and Skills Routing Strategy, Creating Flexible Workforce (Home VS Onsite PT/FT) Operational Design Layer Operational Design Layer

16. Channel Efficiency Workflow & process adherence (broken? Is it being followed?) Reduce Rework: FCR, Error Rates & Service Recovery, Transfers Time to resolve Forced channel mandate WFM execution (intraday workforce optimization) Workforce Efficiency 1) Payroll Leakage Agent time (% Manned / Paid) System / productive time (talk, AHT, ACW) Internal outbound calls, transfer rates & hold time Offline time (absence, adherence, etc,) 2) Agent Speed to Proficiency Performance management & Alignment Agent proficiency rate (New and Tenured) Agent attrition rate, Quartile distribution 3) Support Team Efficiency Direct Mgmt (ratios, effectiveness, leverage rate) Support team (QA, Training, Reporting, ROI) Workforce Scheduling and Process Efficiency Execution Layer Inside the Execution Layer Execution Layer

17. Triple Layer Cake Strategy Layer Operational Design Layer Execution Layer

18. Triple Layer Cake Strategy Layer Operational Design Layer Execution Layer

19. You have been asked to cut costs by 10-20% Where do you place your bets? Optimize production time Reduce unwanted calls Layoff employees Which calls to outsource Identify revenue opportunities More self service ROI on coaching How to get FCR up Make AHT go down Plug productivity gaps Don’t gamble with your employee engagement and your customer experience

20. Solution Development Principles – Tier 1 [email_address]

21. Effort Impact Solution Development Principles – Tier 1 [email_address]

22. Time Horizon ROI Solution Development Principles – Tier 1 [email_address] Plan & Design Decision Implement Ramp-up Pay Back

23. Time Revenue Expense Solution Development Principles – Tier 1 [email_address] Fixed vs Variable

24. $$ The Longer you Wait The Deeper you Cut Solution Development Principles – Tier 1 [email_address]

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

26. Proactively Trim vs Reactively cut / hack Have a plan, validate the plan, have a DRP Execution is Key (includes Risk management) Key Questions to Ask Yourself Do I understand my costs today? Accelerants? Do I understand my budget? Template? Allocation? What is Best Practice? What are you really trying to solve? … root cause? Key Takeaways and Actions [email_address]

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 [email_address]

28. Thank You [email_address]