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L E A D E R S H I P P R O B L E M SO L V I N G V A L U E C R E A T I O N © Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. Lean Six Sigma and the Impact on Contact Centers Autonomy eTalk User Conference La Jolla, California April 2008

The Role of Lean Six Sigma in Contact Centers

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Page 1: The Role of Lean Six Sigma in Contact Centers

L E A D E R S H I P P R O B L E M SO L V I N G V A L U E C R E A T I O N

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Lean Six Sigma and the Impact on Contact CentersAutonomy eTalk User ConferenceLa Jolla, California

April 2008

Page 2: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 2

Agenda

I. Preparing Your Contact Center for Lean Six Sigma

II. Applying Lean Six Sigma to Contact Centers

III. Challenges and Obstacles to Avoid

IV. Success Factors

Page 3: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Preparing Your Contact Center for Lean Six Sigma

Contact Centers are not only ubiquitous, but also a hot bet for customer dissatisfaction

The main business imperative for most contact centers is cost control

Developing a culture that supports continuous process improvements, standardization and training is critical to success

Can Lean Six Sigma Help You Do More With Less?

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Page 4: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Six Sigma Methodologies

DMAIC – Define, Measure, Analyze, Improve, Control

DMADV – Define, Measure, Analyze, Design, Verify

Core Elements of Six Sigma

The goal of a Six Sigma project is tominimize the variation in a process which inturn will allow you to trust that the processeswill produce a defect-free output, increasingcustomer satisfaction while decreasing cost

Define the goals for improvement based onstrategic plans

Measure process performance and collectdata

Quick Six Sigma Primer

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Analyze statistics and other data to isolate aspects of the process that are causing defects

Focus on voice of the customer

Fact-based decision making

Comprehensive training

Rigorous statistical modeling

Defect avoidance

Elimination of rework, inspection and error costs

Page 5: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 5

Agenda

I. Preparing Your Contact Center for Lean Six Sigma

II. Applying Lean Six Sigma to Contact Centers

III. Challenges and Obstacles to Avoid

IV. Success Factors

Page 6: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Start with a Process that Unnerves Your Customers

Give Prominence to Capturing and Acting on the Voice of the Customer

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Customer Satisfaction Average CallWait Time

Total Cost ofCustomer Support

In a recent benchmarking study, contact centers focused on providing customers an “experience” versus treating customers as a “transactions” measured “Customer Satisfaction,” “Total Cost of Customer Support” and “Average Call Wait Time” as the main key performance indicators (KPI)

“The Conflicted Call Center: Customer Experience versus Transactions” Aberdeen Group, March 2007

Page 7: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Excess Calls / Month

Cost per Call

Profitability Impact (per quarter / per annum)

The Potential Costs of Customer Churn arenot Factored into This Equation!

Quarterly Impact of Repeat Calls on Call Center Profitability

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Calls to Resolve Overall Calls (%) Problems Calls Offered

1 60% 60,000 60,000

2 20% 20,000 40,000

3 15% 15,000 45,000

4 5% 5,000 20,000

40% 100,000 105,000

5,000

$5.00

$525,000 / quarter or $2.1M / annum

Page 8: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Case Study 1: Reduce Nuisance Calls

Overview

Determine types of call drivers and improve customer experience

Benefits

Reduce SG&A and contact center expense base

Improve customer and employee satisfaction

Improve communication to customers

Impacts

Improved self-service delivery

Redesigned policies and procedures

Transitioned outsourced customer service in house which resulted in a savings of $40K/month in total contact center support

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Page 9: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Case Study 2: Customer Onboarding Process

Overview

Streamline the new account opening process by eliminating unnecessary application pages

Benefits

Reduced new account abandon rates

Improved customer acquisition

Faster new account opening

Impacts

Project took 4 months from conception to realization – minimum disruption to the enterprise

Integrated chat during the new account opening process which reduced calls to the contact center

Improved cross-sell ratios during the new account opening process

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Page 10: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Case Study 3: New Online Payment Feature

Overview

Predict and eliminate potential calls from customers about feature changes in a new online payment module

Benefits

Proactive communication to customers demonstrated an understanding by the organization that we were concerned about them

Reduced long queue and email response times

Training and change management were administered across several centers empowering contact center agents on potential failures and relevant fixes

Impacts

Only 9% of all customer calls were related to the implementation

Only 1 critical issue impacted customers post-implementation (but we had a plan to address that was identified during the Lean Six Sigma project)

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Page 11: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 11

Agenda

I. Preparing Your Contact Center for Lean Six Sigma

II. Applying Lean Six Sigma to Contact Centers

III. Challenges and Obstacles to Avoid

IV. Success Factors

Page 12: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Types of Challenges That I Faced

Executive sponsorship required at all levels despite fluctuations in quarterly earnings and EBITDA

Lean Six Sigma project is viewed as “Another Flavor of the Month” quality initiative

Previous negative experience with Six Sigma gives management a jaded view of the value of the discipline

Absence of an uniform methodology across the enterprise

Using DMAIC as a Six Sigma Program not as an approach to solving problems

A culture that supports “hip shooting decision making” versus fact-based decision-making

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Page 13: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Case Study 4: Cultural Integration at a Major Bank

Over 50 Employees Received Formal Lean Six Sigma / Quality Training

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It is critical that adequate resources are allocated to training employees on the approach and how it can be applied.

Successful implementation begins with executive management support and cascades down to offer appropriate levels of training and communication to all employees.

Quality Initiative Champion

Black Belt Training

Green Belt Training

Employee Communication

Communicating cross-functionally to the organization is a critical success drivers.

Things that I have seen work are:

Dedicated Intranet or SharePoint site

Town-Hall Meetings

Manager Meetings

Lunch and Learn Sessions

Executive Meetings

Company Newsletter

Page 14: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved. 14

Agenda

I. Preparing Your Contact Center for Lean Six Sigma

II. Applying Lean Six Sigma to Contact Centers

III. Challenges and Obstacles to Avoid

IV. Success Factors

Page 15: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Success Factors

A shift is needed in how contact center operations is viewed – the contact center should be viewed as “an end-to-end process perspective” versus “a process within a segment”

Develop a Six Sigma Scorecard that captures specific & objective measurements assigned to various processes along the continuum

Don’t underestimate the investment in training and change management – this will make or break your adoption!

Invest in hiring or training the right talent

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Page 16: The Role of Lean Six Sigma in Contact Centers

© Copyright 2008. Alvarez & Marsal Holdings, LLC. All Rights Reserved.

Let’s Keep in Touch

Art Hall

Alvarez & Marsal Business Consulting3399 Peachtree Road, Suite 1900

Atlanta, Georgia 30326

[email protected]

Direct: 404-260-4152Mobile: 404-759-9158

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