Why Call Centres Fail.

revised 28. April 2000

Presented by
Niels Kjellerup, Senior Partner
Resource International Pty Ltd (Australien).
Why Call Centres Fail.

This Study is based on 126 documented

Call Centres Cases.
Why Call Centres Fail.
Study of 126 Call Centres.

Geographic Distribution :
US 84 period 1982-1997

EU 33 1986-1997

OZ 9 1988-1997
Why Call Centres Fail.
Study of 126 Call centres

Organisational Focus
Financial 45

Industrial 31

Service 38

Government 12
 Why Call Centres Fail.
Study of 126 Call centres

The 3 distinct Phases of a Call Centres life

:
I. Operational Phase ( 6-12 months)
II. Expansion Phase (12-18 months)
III. Integration Phase ( + 18 months)
Why Call Centres Fail.
Study of 126 Call centres

The First 18 Months are critical.

In this Study 64 Call Centres had
ceased operation and been disbanded.
WHY?
 Practical Guide to Failures
Operational Phase ( 27 +++ in 6-12 Month)

No or little People Management skills

Cost/Benefit ; no or poor documentation
Lack of Process Mapping/ Focus on
Automation & IT
Design Senior to Customer Needs
 Practical Guide to Failures
Expansion Phase (37+++ in 12-18 months)
False Benchmarks
 False Benchmarks
Adopting IT-measurements has caused more
Call Centre failures than any other single
issue.
The TARP Teleservice Benchmarking
Studies 1997 establishes OUTCOMES as
the correct Benchmarks
 Practical Guide to Failures
Expansion Phase (37+++ in 12-18 months)
False Benchmarks
Channel Conflict
Galley Slave Vs Coaching Culture Call
Centre
Practical Guide to Failures

The Galley Slave Model

Vs
the Coaching Culture Call
Centre.
The Galley Slave Model
Productivity

Min. Productivity Demand

20%

Time
The Galley Slave Model
Productivity

Max.Potential on job
24%

20% Min Product demand

Time
The Galley Slave Model
Productivity

Max.Potential on job
24%

20%
Min Product demand
Time
 The Galley Slave Model
Call Centre locked in Tunnel of No
Productivity Gains
Call Centre management at a loss
of How to improve ???
End Result : 1. Management is
replaced or 2. Call Centre activity
Outsourced.
The Coaching Culture
Model
Motivate staff to Increase Potential
People Management is the Key
Continuous development of Work
Processes & Purpose of Job
Management involved with Work
Situation
Key Ingredients of
Coaching Culture :

Monitoring
Appraisal of skills and
performance
Coaching to improve identified
barriers to communication &
relationship building
 Coaching Culture
Development Model
Productivity

24%
Professor Herzbergs
Research.
20%

Time
 Practical Guide to Failures
Expansion Phase (37+++ in 12-18 months)
False Benchmarks
Channel Conflict
Galley Slave Vs Coaching Culture Call
Centre Model.
Customer Satisfaction not measured or
used as a Comfort Zone.
 Practical Guide to Failures
Integration Phase ( +18 Months)
Not taking Time & Cost Out of the
Customer Contact Process
Not Exceeding Customer Expectation
Wrong or Untimely Purpose
Outsourcing
Loss of Management Champion
 Summary of Failures
Benchmarks not Focussed on Outcomes
Planning inadequate in Scope and long
Term Needs
Lack of Call Centre People Management
Know How
Call Centre Purpose unaligned to
Organisational Purpose
 So where do we go from here ?
The Call Centre learning Curve is currently
very low and slow.
Call Centre Education is slowly taking
form, but still very scant and shallow.
Consultants, like myself, can claim
expertise unopposed and unchallenged
Our Contribution, so far, to speed
up the learning Curve:
The creation of an Oasis of Call Centre Know
How on the World Wide Web :
The Call Centre Managers Forum
www.callcenters.dk
Youre all invited to visit and contribute your
own insights and learning experiences.
Thank you...
If you have any question feel free
to E-mail me
nk@callcentres.com.au