Virginia Commission on Government Reform and Restructuring Customer Service, Performance, Accountability & Transpar

1. Virginia Commission on Government Reform and Restructuring Customer Service, Performance, Accountability & Transparency CommitteeJuly 6, 2010

2. Faneuil Overview • Part of MacAndrews & Forbes Holdings (holdings shown left) • Founded in 1994 • Employ 2,800 staff • Currently the outsource provider for the Virginia Department of Transportation’s E-ZPass operations in Clifton Forge, Virginia • Currently provide customer service support for Washington Reagan and Dulles Airports • Award-Winning Call Center Operations • Call Center in Martinsville, Virginia in Support of Dominion Virginia Power • 3 Call Center operations in Florida, supporting SunPass and Florida’s Unemployment Agency • 3 Call Centers in three localities in Virginia ‹2›

3. Create Operating Efficiencies while Improving Customer Service • Call center partners can augment increased demand and utilize advanced technologies to more accurately measure service demands and benchmark level of service • Contractor call centers can expedite the implementation of additional customer service centers, and provide flexibility to expand and contract staff and operating hours more easily than internal contact centers • Outsourced partners can use existing technologies and human capital to provide additional support quickly and cost effectively • Outsourcers can be contracted to meet service demands as required, without long term employment commitments • Outsource partners can easily take advantage of newer technology ‹3›

4. Outsourcing Cost Saving Opportunity Principle Actual example of client economic outsourcing costs during account ramp-up Replication of existing isolated smaller service entities challenges economic gain opportunities Consolidation of multiple services creates economic efficiencies

5. Transitioning to Outsource Transitioning to an Outsource Provider can be gradual or immediate depending on the overall environment. Examples of different operating environments are as follows: • Shared Technology • Co-sourced Program Delivery • Overflow Calls • Client owned Technology • Shared Management ‹5›

6. Case Study 1-Florida’s Decision to Outsource Unemployment Unemployment Rate 3.3% 2006 – 11.9% 2009 UC Calls Handled 210,000/month UC Calls Offered Unknown UC Calls Dropped Unknown UC Staff Augmentation 2007 – 535 employees UC Phone Lines 2007 – 736 lines UC Operating Hours 2007 – 40 hrs/wk UC Wait Times 2009 – 14:29+ Political and Media Outcry – Claimants unable to get through! 6

7. Case Study 1 cont. -Florida’s Decision to Outsource Unemployment • Technology enhancements needed quickly • Service demand far exceeded service delivery resources • Inability to quickly add infrastructure and support resources • Needed to more accurately measure service demands and benchmark level of service • Strong desire to serve customer • Needed flexibility to expand and contract staff and operating hours more easily ‹7›

8. Case Study 1 cont. - Challenges • There is no substitute for experience, unemployment compensation is a very complex program (extended, extension, Tier 1, Tier 2), training alone does not prepare customer service staff to handle claimants needs, programmatic knowledge is critical. A learning curve will exist, mistakes will be made. • Training fast enough to fill need (internal call center rarely had need for training classes, training program was four – six weeks). • Agency knew there was a problem but did not know the full extent of the need for claimant access (technology didn’t exist to determine number of calls or repeat calls). • Business rules are complex, from call handling, document processing to ongoing claimant communications, keep it simple to begin with and add complexity over time. ‹8›

9. Case Study 1 cont. - Goals & Requirements of Agency • Originally required to be operational 90 days from contract start • Required utilization of the AWI Toll-Free Carrier • Alleviate customer congestion currently being experienced in the existing call center(s) by: • Seamlessly integrate into AWI’s technology infrastructure via MyFloridaNet (MFN) • Establish trained CSR resources with the assistance of Florida One-Stop centers (25 – 50% of all classes come from One-Stop) • Deliver AWI call center services by: • Representing AWI culture in a manner consistent with it’s image • Manage quality of service delivery in accordance to AWI standards ‹9›

10. Case Study 1 cont. - Successes • Operational Quicker than Requested • Faneuil was asked after contract award to establish an Extended Benefits (EB) information line immediately, then the call center 90 days later (120 days total); • Created, Recruited, Trained, and became operational with the EB information line within 30 days • Created, Recruited, Trained, and became operational with the AWI call center within 90 days of contract, as opposed to 90 days after EB center • Faneuil was asked to double our service capacity within 3 months of initially going live, based on final determination of the extent of the problem through Faneuil tracking of service demand • Customer access no longer an issue • Currently in process of automating client manual processes resulting in more cost savings ‹10›

11. Case Study 1 cont. - Volume vs. Cost Calls Answered ‹11›

12. Case Study 1 cont. - Florida Unemployment Compensation Program Today Pre-Faneuil Post-Faneuil UC Call Handled 210,000/month 575,000/month UC Staff Augmentation 2007 – 535 employees 2010 – 1,700+ ees UC Phone Lines 2007 – 736 lines 2010 – 1,900+ lines UC Operating Hours 2007 – 40 hrs/wk 2010 – 78 hrs/wk UC Wait Times 2009 – 14:29 2010 – 0 wait time ‹12›

13. Case Study 2 – Staffing solution with a centralized view – Challenge • Filling 30,000 shifts/month over 600 miles • Longer wait times for state citizens • Missed shifts resulted in state revenue losses • Highly visible to media due to impact on citizens • Large employee base with decentralized infrastructure 13

14. Case Study 2 cont. – Goals & Requirements • Provide consistent customer access to over 2 million customers a day • Maintain steady revenue stream for state agency • Reduce state agency’s operating costs • Increase operational response time • Improve communication 14

15. Case Study 2 cont. – Results • Introduced call center staffing concept to manage 30,000 shifts • Reduced overtime and unmanned shifts • Centralized resource management solution • Reduced attrition, training costs and absenteeism • Incorporated Biometric devices and Kiosks into operations • Leveraged technology to create real-time communication system across 69 locations • Created emergency alert system to quickly mobilize resources 15

16. Case Study 2 cont. – Results Insert chart showing % filled shifts vs. increasing revenue collection with dual axis

17. Case Study 3 – Consolidating Information Lines - Implementing 311 • 311 services were established in 1997 by the FCC to off-load non-emergency calls from 911 services • Since that point local governments have been using 311, to consolidate services, to expand the communication strategy and options for residents to gain information or services • 311 has also played a major role in preparing for and responding to natural and man made disasters • This has eliminated stress on emergency services (911) and provided citizens with accurate and reliable information during times of crisis 17

18. Case Study 3 cont. – Implementing 311 line • In August of 2007 Faneuil was asked to put together an outsourced solution for the City of Winnipeg 311 • Primary function was to consolidate call center services, and implement a CRM platform that would integrate with existing legacy systems • The solution presented proposed the consolidation of 27 call center locations and the integration of CRM and knowledge base tools • The solution incorporated multiple communication mediums, including: eMail SMS Mail Face 2 Face Fax Web Phone 18

19. Case Study 3 cont. – Implementing 311 line • The service included the consolidation and support of the following: • Request for service (such as sewer back-up, water main break, bulky garbage collection) • Request for information (such as permit processing, animal control, building inspections, traffic/parking issues, hours of operation of civic offices and facilities (such as pools and libraries), assessment and taxation, transit schedules, Winnipeg Events Calendars and tourism information) • Concern (such as parking tickets, property condition, lost property, street maintenance, snow clearing, potholes, noise complaints) • Request to register for city programs (e.g. Leisure Guide, tee time reservations on city owned golf courses) 19

20. Case Study 4 – Co-sourced Environment - Challenge • Create Redundancy • Implement Call Center Efficiencies • Maintain Client Culture • Balancing Fluctuations with Economic Changes • Maintain Duplicate centers with Consistent Operations 20

21. Case Study 4 cont. – Goals & Requirements of Agency • Florida’s Turnpike required call center and back office operations without giving up technology and management • Allow agency to continue to employ technical experts • Allow for shared management by call center experts • Create more flexibility in schedules • Share call center applications and best practices with agency 21

22. Case Study 4 cont. – Results • Results: • Agency awarded JD Power & Associates award twice • Customer satisfaction surveys consistently over 95% • Faneuil provided applications significantly improved Agency’s ability to analyze operations and create efficiencies 22

23. Case Study 5 – Emergency Outsourcing In the summer of 2005, the State of Tennessee Bureau of TennCare (Tennessee’s State benefit plan) began the process of notifying their customers of changes and/or discontinuance of medical service coverage through a large mail drop. Shortly thereafter, a hurricane destroyed one of Tennessee’s call centers. • Challenge: • Mail drop of 600,000 pieces with no infrastructure • Requirements and Goals of Agency: • Quickly establish communication vehicle and train employees • Result: • Provided access and accuracy without issue 23 23

24. Case Study 5 cont. – Emergency Outsourcing • Challenge: • Existing commercial client had the first major product recall of the internet age. Current call volume increased by 29,000%, and email increased by 6,000% due to media exposure. • Goals & Requirements: • Maintain Brand • Access to a large pool of resources for quick re-training • Create access for customers • Multiple contact centers with infrastructure available • Management resources experienced in rapid deployment • Establish a database of information • Results: • Customer’s service level expectations met within 2 weeks • Faneuil nominated for Computerworld Honors Program 24

25. Benefits of Outsourcing • Allows existing program resources to focus on program delivery while less complex program tasks are delivered economically and efficiently • Ensures most efficient use of resources through improved flexibility, use of advanced technology and knowledge base tools • Rapid deployment of service offerings • Culture and service standards maintained • Provide data on Customer Service Delivered and Improvement Recommendations - Integrated Reporting • Better service for citizens, businesses and a best deal for the taxpayer

26. Questions? Thank you