Bringing the Chickens Home to Roost

1. James Cowie Global S-Business Director February 2006 Bringing the Chickens Home to Roost

2. Citect is the World’s Largest Independent Industrial Automation Software Company… • Founded in 1973 • Listed on Australian Stock Exchange in 1997 (CTL) • 8% share of growing SCADA / HMI market • 70% share in Australia • 20% share in Asia-Pacific • 100,000+ licenses sold • Debt free and profitable • Emerging player in global MES market • Strong professional services capabilities • Expanding support & training annuity revenues

3. Citect Corporation • A top 5 Australian multinational technology company • Work with >85% of leading Australian manufacturers • Global partners distributing products in >50 countries • HQ in Sydney, Australia • Offices in Australia, USA, Europe, China Singapore, NZ, Middle East & Africa • http://www.citect.com

4. …with a strong presence in 14 industry verticals… • Metals • Mining & Minerals Processing • Pulp & Paper • Food & Beverage • Manufacturing • Automotive • Energy Transmission & Distribution Water & Wastewater Pharmaceutical Petrochemical Telecommunication Power Generation Building Automation Facilities Management

5. …and a strong blue-chip client base which is…

6. Raise support quality Establish Support Philosophy Establish models & standards Adopt Business Structure Introduce standardization Reduce Support Cost Deliver consistent support Major Decision Point Vision: Create a Support Centre of Excellence

7. Citect Support Pre-Consolidation • We had 48 support staff & 150+ Partners supporting 100,000 licenses / 6,500 customers • Customer calls taken by phone, sent to voicemail, logged via email & response poor • Customer satisfaction not as good as desired • Support a liability providing inconsistent service • Support morale was low • Support organization viewed as a place to send problem staff & a place to get away from

8. Pre-Centralization Netherlands UK Germany Atlanta Japan China France Johannesburg Sydney

9. S-Business Improvement • The problem: Needed quantum improvement • Solutions: Global Customer Support Centre & SCP • Benefits: Quality, consistent, cost-effective support • Advice for others: Have a vision and follow it!

10. People Standards Place Technology Customers Processes The Core Areas of Focus

11. Approach • Build vision • Identify existing practices • List Best Practice • Create new models • Customer handling • People • Processes • Place • Technology • Standards • Do Business Case • Create Project Plan

12. Incorporated Hierarchy of Customer Needs Source: Dr Jon Anton

13. Customer Communications • Customer Communication Strategy • Clear Communications about Change • Provide customers details on using Support • Local Sales staff promote Central Support • Address any incorrect perceptions • Incorporate Culture requirements • Regular scheduled Conference Calls

14. Structure of Global support team

15. Citect Partners & Customers SELF SERVICE AI / BI Tools EMAIL Knowledge-base and Customer History & Case Management WEB PORTAL Multi Channel Mgment TELEPHONE VIRTUAL ENGINEER Esc Customer Champions and Platinum Support Specialists Proactive Outbound Calls Best Practice in Customer Support

16. Tools & Technology • Capitalized of existing tools and technologies • Case Management System • Knowledge Base • Test Lab • Telephony & e-Mail • Reporting • Customer Interface • Tools

17. Processes • Call Handling • Escalation • Staff Development • Knowledge Management • Support Management • Reporting • Contract Management • Performance Management

18. How the Global CSC Works

19. Place: The High Wire Balancing Act • Considered many options • Decided on GCSC • Picked Sydney as location • Identified area • Decided to “hot-desk” • Designed around limitations • Approvals took time • Crazy regulations (First Aid etc)

20. Post Centralization Germany France Japan Sydney

21. Citect Support Post Phase 1 Consolidation • We have 42 support staff & 150+ Partners supporting 100,000 licenses / 6,500 customers • Customer calls taken predominantly by phone, or via email or web-portal & response sub 30 seconds • Customer satisfaction improving • Support has become a showcase providing consistent high quality service • Support morale is great and increasing daily • Support organization viewed as a place to be, with staff wanting to return or join

22. People: the heart of success • Built on expanded existing team (less people overall) • Built model & justification • Recruited Globally for GCSC • Transferred interested & suitable staff • Recruited through: • Web-Site • Adverts in Australian papers • Universities • Inundated with recruiters

23. People • Established new salary benchmark • Very selective: • Specific backgrounds • Fluent English • Second language desirable • Business experience • Stuck to desired standards • Specialists employed • Huge volume of applicants • Many competitor staff keen to join us • New work contract

24. Staffing considerations • Reviewed shift package • Careful market assessment of salaries • Minimal relocation assistance • Flexible employment contract was vital • Assisted with internal work permits • Designed specific advertisements • Tight recruiting model • Position Description • Screening questions • Tests • Team interviews • Fundamental skills essential

25. Bringing New Team Online • Structured Induction Program • Missed details cause grief • Action plan for each new engineer • Mentor and Buddy • Competency based training program • Individual training plans • Full Product Training • Team building including Cultural Awareness • Problem Solving skills • Customer Relationship skills • S-Business Tools • Procedures and Business Rules

26. Operations Create CSR Attempt problem resolution Engineer Senior Engineer / Specialist Support Programmers Field Specialist Development If not resolved escalate to next level Resolve, update & close CSR

27. Support Operations • English Language Support Center • Call Registration • Call Escalation • Call Resolution • Deliver standardized support services in English to all customers / partners • Real-time 7x24x365 Support with live engineer • Accountable for customer satisfaction • Engineers own all open CSRs regardless of escalation level

28. Global CSC • Delivers consistent CSR handling • Built on solid Processes • Single point for Support contact • Local Language via Partners • French, German & Japanese exceptions • Use consistent processes & procedures • Instant access to real Engineers • Increased Customer Satisfaction • Increased Support Productivity • Decreased Support Cost • Increased Engineer Satisfaction • No local language Support issues

29. Do Metrics Support Change? • Call Resolution • ≈ 40% cases resolved at 1st GCSC contact • # of escalations decreased • Fewer repeat calls but more complex calls being resolved properly • Customer Satisfaction • Increased • Faster response and better 1st time fix • Looking at customer profitability

30. Lessons Learnt • Pretty well everything has another side • Spend time getting the core team prepared • “Yes”, sometimes means something else • Lock down dates • Verify all data & details: or suffer • Don’t accept compromise • Global infrastructure is a myth • Be ready for anything

31. Operational Lessons • World has big differences • Cultures: need to be considered • Languages: must be managed • Office Hours: where’s the coffee • Know your Time Zones: key to load balancing • Holidays: know them

32. Questions?