rai Pend e]uire ieee ‘ CN E i LEADERSHIP 0 PROGLEM SOLVING [ VALUE CREATION ALvaREZ & MARSALAgenda Preparing Your Contact Center for Lean Six Sigma Il. Applying Lean Six Sigma to Contact Centers Ill. Challenges and Obstacles to Avoid lV. Success FactorsPreparing Your Contact Center for Lean Six Sigma SSS 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? A Awwarez & Marsa 3Quick Six Sigma Primer 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 to minimize the variation in a process which in turn will allow you to trust that the processes will produce.a defect-free output, increasing customer satisfaction while decreasing cost Define the goals for improvement based on Strategic plans Measure process performance and collect data A AwwaArREZ & Marsa 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Agenda Preparing Your Contact Center for Lean Six Sigma ll. Applying Lean Six Sigma to Contact Centers Ill. Challenges and Obstacles to Avoid IV. Success FactorsStart with a Process that Unnerves Your Customers Give Prominence to Capturing and Acting on the Voice of the Customer 3 Best inciass Average Ina recent benchmarking study, sagged contact centers focused on a0 | 7% providing customers an wet “experience” versus treating customers as a “transactions” La measured “Customer Satisfaction,” 40% “Total Cost of Customer Support” ma and “Average Call Wait Time" as the main key performance me indicators (KPI) 10% > om ‘average Call ‘Customer Satisfaction Total Cost of Customer Support Wait Tine “The Conte a Cater Gano Eiperice wes Traaactony Aberdeen Sais, pete A Avvarez & Marsa 8Quarterly Impact of Repeat Calls on Call Center Profitability Lately Calls Offered 4: 60,000 60,000 2: 20,000 40,000 3 15,000 45,000 4 5% 5,000 20,000 40% 100,000 405,000 Excess Calls / Month 5,000 Cost per Call $5.00 Profitability Impact (per quarter / per annum) $525,000 / quarter or $2.1M/ annum The Potential Costs of Customer Churn are not Factored into This Equation! A Avvarez & MarsaCase Study 1: Reduce Nuisance Calls EE 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 A AWARE? & MaRsaL 8Case Study 2: Customer Onboarding Process EE 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 A AWARE? & MaRsar 8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) A A.warez & Marsa 10Agenda Preparing Your Contact Center for Lean Six Sigma Il. Applying Lean Six Sigma to Contact Centers Ill. Challenges and Obstacles to Avoid IV. Success FactorsTypes of Challenges That | Faced SS Executive sponsorship required at all levels despite fluctuations in quarterly earings 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 Aculture that supports “hip shooting decision making” versus fact-based decision- "K Awwarez & Marsa 42Case Study 4: Cultural Integration at a Major Bank SSS Itis critical that adequate resources are Communicating cross-funetionally to the allocated to training employees on the organization is a critical success drivers approach and how it can be applied. . a Things that | have seen work are: Successful implementation begins with = executive, management support and cascatas. Dedicated Intranet or SharePoint site down to offer appropriate levels of training Town-Hall Meetings and communication to all employees. Quality Initiative Champion Manager Meetings Lunch and Learn Sessions Black Belt Training Executive Meetings Green Belt Training Company Newsletter Employee Communication Over 50 Employees Received Formal Lean Six Sigma / Quality Training A AwwarREZ & Marsa 43Agenda Preparing Your Contact Center for Lean Six Sigma ll. Applying Lean Six Sigma to Contact Centers Ill. Challenges and Obstacles to Avoid \V. Success FactorsSuccess Factors SS Ashift 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 asegment” 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 A Awwarez & Marsa 45Let's Keep in Touch SS Art Hall Alvarez & Marsal Business Consulting 3399 Peachtree Road, Suite 1900 Atlanta, Georgia 30326 ahall@alvarezandmarsal.com Direct: 404-260-4152 Mobile: 404-759-9158. A Avvarez & Marsa *