Profitability Customer Satisfaction

Internal Provider

Lenovo Group Improvements of 44% in Efficiency and 36% in CSR Utilization in Ten Months

enovo Group Limited (formerly Legend), the largest IT corporation in the Peoples Republic of China, is a dynamic leader in the information and technology market. Its own branded PC has been the best-selling computer in the PRC since 1997, with a market share of nearly 28% in 2002. Lenovo is also the number one PC brand in the Asia Pacific market (excluding Japan) with a market share just over 12%. To increase its competitive edge, Lenovo Group Call Centre applied for certification to the COPC-2000 Standard. The applying entity includes Household and Business Post Sale Centres and the Operations Development group.

approach to concurrently measuring all customer-touch activities, enabling Lenovo to achieve certification in a remarkable 12-month period. Management and People Lenovo adopted the COPC-2000 Standard in 2002 as the management system for corporate planning and monitoring. Management commitment coupled with staff conviction, enabled Lenovo to achieve certification within 12 months, despite unforeseen operational difficulties such as the SARS outbreaks throughout the country. COPC worked closely with Lenovo to ensure progress, implementing twicemonthly structured support sessions from the baseline audit through certification. Lenovos enthusiastic and diligent team of coordinators has been one of the key success factors for Lenovo achieving this rigorous certification. Lenovos say do and we will do attitude ensured critical improvements were measured and implemented, immediately and consistently. Outstanding Results With a balanced management approach, Lenovo has attained excellent results that drive Service, Quality and Cost.
Case Study Lenovo Utilization 1Q04 Ver. 1

When first audited in November 2002, Lenovos contact center operations were compliant in 3 of the 32 items of the COPC-2000 COPC certification enables Base Standard (Version 3.2). Lenovo to lower operating costs Understanding the while generating higher staff operational impact of productivity and quality. quantified measures drove Through this process we will Lenovo to meet 75% of their increase the value of the companys 207 metrics in less than one production and service levels, year, while demonstrating using phone and web capabilities sustained improvement in an to enhance Lenovos customer additional 10% of the satisfaction and support. processes measured. The COPC-2000 Standard Zhang Kun Sheng, provided the balanced General Manager

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Outstanding Results continued...

100%

Service Level
Percentage
64% 75% 75% 79% 76% 72% 72% 73% 74% 72%

100% 80% 60% 40% 20% 0%

CSR Utilization
61% 68% 72% 56% 67% 61% 66%

Percentage

80% 60% 40% 20% 0%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

55% 51% 49%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Month
Actual Target

Month

50%

Abandonment Rate
16% 11% 9% 11% 10% 9% 11% 9% 8% 7%

Percentage

40% 30% 20% 10% 0%

Jan Feb

The Post-Sale Notebook queue initiatives showed significant improvements in efficiency with a 36% increase in CSR utilization while handling 44% more calls.
Accuracy
70% 81% 51% 60% 71% 73% 81%

100%

Month
Actual Target

Percentage

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

80% 60% 40% 20% 0% 2%

54%

4% Feb

18% Mar Apr May Jun Jul Aug Sep Oct

Service Level and Abandonment Rates improved due to better scheduling and forecasting The PostSale Peripheral queue achieved consistent service levels with 45% more calls and 26% less staff. Better operations management practices such as real time floor management, better forecasting and scheduling and better schedule adherence helped improve CSR utilization with increased volume handled per day per CSR
100 90 80 72% 78% 75% 76% 72% 67% 72% 69%

Jan

Month

Actual

Target

Transaction monitoring dramatically increased accuracy

The Pre-Sale Business queue implemented transaction monitoring in May. Within 5 months, accuracy rate improved from 51% in June to 81% in October. Consider the Results A proficient root cause analysis approach helps team members better understand more than 200 operational metrics being tracked. The roll up of all these metrics is represented in the Standard with a tool called Table F. The Standard requires that a minimum of 50% of tracked metrics meet the targets nine out of twelve months per year, while those not hitting target, must demonstrate continued improvement.

Volume per CSR per day

Percentage

70 60 50 40 30 20 Jan Feb Mar 60% 54%

Apr

May

Jun

Jul

Aug

Sep

Oct

Month

Actual

Target

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Consider the Results continued...

There have been numerous examples of performance improvement resulting from actions taken after a root cause analysis and an improvement plan implementation. Overall quality score improved from 80% in June to 88% in October for Pre-Sales Business. Similarly, the accuracy score for Household Pre-Sales improved from 77% in June to 92% in October. These improvements were accomplished using a variety of techniques: more frequent coaching by a supervisor, analysis of the scores of transactions monitored, and additional training to improve CSR selling skills. The implementation of various initiatives resulted in a 13% service level increase, from 48% in July to 61% in October 2003. Staff scheduling generated the highest return additional supervisors ensured real-time floor management, as well as schedule adherence by weekend staff. Certification required Lenovo to perform transaction monitoring with output directed at two levels process and agents. Process level analysis is used to identify and correct process level defects, while agents are individually coached to improve in areas where they need individual help. First Call Resolution improved between 3%-12% for all programs. A critical component integrated enhanced transaction monitoring and targeted coaching sessions. Service level in the Complaints

Department improved from 49% in July to 79% in October, while handling time declined from 363 seconds to 319 seconds in the same time period.

By adopting and implementing the COPC-2000 Standard as our performance management system, we have achieved significant improvements in Service, Quality and Efficiency, while maintaining high levels of Employee and Customer Satisfaction. These endeavors will continue to enhance our growth opportunities and our leadership position in the global marketplace.
Shi Hong Xin, COPC-2000 Registered Coordinator.

Quick Facts
75% of their 207 metrics met their operational targets with an additional 10% demonstrating clear improvement trends Achieved a 39% overall quality improvement 52% in March to 91% in October in the Post-Sale Household queue Improved Efficiency (AHT) by 21% for Post-Sale Notebook Achieved 84.55% top 3 box on 10 point scale for overall end-user satisfaction

Customer Operations Performance Center Inc. www.copc.com

COPC Standards Committee

In the summer of 1995, representatives from various companies volunteered to join a work team concerned about performance and service quality provided by third party Customer Service Providers (CSPs). These firms included Motorola, Microsoft, Dell, American Express, Compaq, and Intel. By early 1996, this team had developed the first version of the COPC-2000 Standard, concurrent with the formation of COPC Inc. The development team became the Standards Committee, which is responsible for all aspects of the Standard, from establishing the criteria through approving the Certification process. Participation on the Standards Committee requires detailed working knowledge of the Standard. More importantly, it requires knowledge of operations and the financial impact and ROI impact of superior service delivery systems.

Current As a direct result members of the of the dedication and Standards commitment of management Committee are and staff towards adopting COPCs from Blue Cross performance management system, Blue Shield, Lenovo is an excellent example Motorola, LL of first attempt certification Bean, General of a CSP. Motors, Elizabeth Prakasam, Microsoft, CEO of COPC Asia Pacific Inc. ClientLogic, Convergys, (US companies), Lenovo Computer Group (China), Centrelink (Australia), DHL (Singapore), Transworks (India), and Japanese User Group. The Standards Committee has approved two Standards, one for Vendor Management Organizations (VMOs) and one for Customer Service Providers (CSPs). CSPs can be an internally managed operation or a third party provider.

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Case Study Lenovo Utilization 1Q04 Ver. 1

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