How to Elevate Customer Experience While Reducing Service

How to Elevate Customer Experience While Reducing Service Costs: with Outside-In Process enabled by Communication-Based Process Automation © 2010 High-Yield Methods

The New Customer Imperative Ø Buyer-seller power shift Ø Advantage buyers Ø Buyers feeling empowered Ø Don’t respect buyer “rules” Ø Buyers win most power struggles…eventually Ø Companies must be on customer side Ø “Playing nice” not enough Ø Must do the right work the right way © 2010 High-Yield Methods 2

Designing the right work the right way requires the right process approach Outside-In Traditional process © 2010 High-Yield Methods 3

Many companies want to put customers first Ø But they settle for changing how they do work Ø They don’t change what work they do or who does it Ø “Insanity is doing the same work over and over again but expecting a different outcome” (Freud or Einstein, take your pick) © 2010 High-Yield Methods 4

Visual Workflow – the first O-I process approach Visual Workflow LSS, Lean, Six Sigma Outside-In Inside-out Customers drive process Customers may condition process Designed for O/S (office/service) Designed for manufacturing Focus on what, who, how, technology 90% of focus on how Includes workflow, communication flow, * data flow Workflow only (and often as an after thought) Designed for business-side Designed for process professionals Participative Top-down Ideal for knowledge workers Restricts knowledge workers Accommodates variable work Built for repetitive work Assumes interconnected workflow Assumes independent workflow Comprehensive streamlining Point streamlining Very high O/S success rate Low O/S success rate © 2010 High-Yield Methods 5

All process approaches are context-sensitive Mfg/Production Office/Service TQM Six Sigma TOC Lean LSS VW/Outside-In © 2010 High-Yield Methods 6

One look under the O-I process hood “What” “Who” Customer Enabling technology “How” “Why” emanates from strategy level Copyright 2009 High-Yield Methods 90% of traditional process focus 7

Legacy “O-I” practitioners Ø Amazon. com Ø Apple Computer Ø Costco Ø Fed-X Ø L. L. Bean Ø Nordstrom Ø Southwest Airlines Ø Virgin Companies 8

Early adopters Ø Amica Mutual Ø Best Buy Ø Charles Schwab Ø Mc. Donald’s (healthy meals) Ø Publix Ø Ritz Carlton Ø UPS Ø USAA Copyright 2009 High-Yield Methods 9

Outside-In Cases © 2010 High-Yield Methods 10

Growing the business by shrinking the core Ø Large forms printer – Thought they were a manufacturing company – 13 factories – Not price competitive for commodity items – Lead times too long Ø Became printer/broker – Factories had to compete for orders w/outsourcers – Outsourced commodities – Sales staff became account managers Ø Customers buying expertise, not Ø Outcomes manufacturing – 13 factories to 7 – Didn’t care who printed – 2, 000 sales/contact center – Many used brokers for simpler staff to 1, 200 jobs © 2010 High-Yield Methods 11

Creating order out of chaos Ø Fortune manufacturer Ø Redesign from employees in – Global employee services – Design triage portal unit – Easy routing – Outsourced all services – Insist that outsources create – Employees contacted custom portals outsourcers directly – Reorganize internal resources – Often started with wrong around services, not vendors one Ø Outcomes – Confusion, frustration – Improved employee – Internal contact center experience overwhelmed – Streamlined internal & – Internal resources organized outsource process around vendors 12 © 2010 High-Yield Methods

Hitting the proverbial brick wall Ø Financial institution – Small enough to care about customers – Great POC experience – Undone by execution Ø Scope the problem – Front office handing off sloppy work to back office – Turn times suffer – E-mail clogged – No employee/customer visibility into processing Ø Customers react by… – Calling/mailing front office – Calling contact center – Getting frustrated & angry Ø Ideal solution – Track assigned tasks – Create process transparency – Open up task-related communication – None of which could be reasonably accomplished © 2010 High-Yield Methods 13

Here’s what was happening © 2010 High-Yield Methods 14

Here’s what we wanted © 2010 High-Yield Methods 15

Lack of a task-based communication channel and WIP transparency forced using relatively ineffective workarounds © 2010 High-Yield Methods 16

The fix: O-IP (Outside-In Process) + CBPA (Communication-Based Process Automation) = EC (Enterprise Collaboration) © 2010 High-Yield Methods 17

What is “CPBA? ” - Basics Ø Software (server-based or Saa. S) Ø I-P channel Ø Small footprint Ø Easily integrates: – – CRM SCM HRIS Legacy systems Ø Highly configurable Ø Incorporates unified communication (UC) © 2010 High-Yield Methods 18

CBPA Features Ø Interactive task management Ø E-mail alternative Ø Alerts, escalations Ø WIP transparency Ø Intelligent routing Ø Intelligent queuing Ø Presence management Ø Proactive forwarding Ø Multi-dimensional reporting © 2010 High-Yield Methods 19

Enterprise Collaboration (EC) benefits Ø Improve customer experience – Go beyond expectations – Transparency Ø Motivate employees – Do the right work the right way – Transparency – Accountability Ø Streamline operations – Leverage CBPA – Simplify work – Reduce rework, errors, delays © 2010 High-Yield Methods 20

Thank you! Dick Lee Principal High-Yield Methods www. h-ym. com dlee@h-ym. com © 2010 High-Yield Methods 21