Capacity Planning

1. Capacity Planning Forecasting • What is a forecast • Purpose of long term forecasting • Forecasting and re-forecasting • Forecasting File Cap Plan Overview • What is a Cap Plan • Cap Plan Summary • Opportunity/Risk • Hiring Schedules • Attrition Schedules

2. Capacity Planning WFM Timeline 12 - 18 Months 30 - 45 days 6 Months 4 - 6 weeks Day of Reviewed day after Capacity Plan is created Financial Plan is adjusted to match Capacity Plan Short-term forecast is created and discussions with cap planners take place Scheduling of agents is completed Creation of the DPs takes place TCC executes the plan MIS data is recorded Financial Plan Comparison

3. Capacity Planning-Forecasting Basics Forecasting • What is a Forecast? • It is what iswhat is expected to happen based on previous history. • What is the purpose of Forecasting? • To ensure that business service level objectives are met. • To predict call workload and estimate the staff required to answer those calls. • To prepare the corporation for the upcoming period of action. • To provide out business with a plan of action for the month and/or year.

4. Capacity Planning-Forecasting Basics Forecasting • What are the reasons to forecast/re-forecast? • Normal day-to-day operations • New business • Marketing Initiatives • Change in operating hours • Economic state • Increase/Decrease in contact rate • Attrition • Higher/Lower Volume and Handletime • Increase in LOA hours • Any of the above factors can trigger a change in call volume. If volume is lower or higher than expected, then adjustments to the forecast are made.

5. Capacity Planning-Forecasting Basics Forecasting Spreadsheet • The Forecast Spreadsheet is used to contain historical information needed to create an accurate forecast. • Historical information needed: • Active Accounts • Contact Rate • VRU Details • Call Volume details • Projects

6. Capacity Planning-Forecasting Basics Forecasting Spreadsheet • Example of Essbase pull

7. Capacity Planning Capacity Plan • What is a Capacity Plan? • The process of planning, analyzing, sizing, and optimizing resource utilization to satisfy workload demand in a timely manner and at a reasonable cost. • Why are Capacity Plans created? • To ensure that business service level objectives are met. • To track and manage hiring, site growth and sharing of resources to maximize company assets and minimize expense.

8. Capacity Planning Capacity Plan • When are Capacity Plans created? • Cap Plans for the upcoming year are completed in 3rd Quarter and updated as necessary • When are Capacity Plans updated? • Cap Plans are updated monthly with the prior month’s results, actual hiring, attrition, headcount, and workspaces • Revisions to the Forecast for the remainder of the year are also updated monthly • Who reviews the Capacity Plan once it is updated? • The Business Directors each month in the second or third week • Reviewed by each of the Regional Directors and updated to the Business Performance website

9. Capacity Planning Understanding the Capacity Plan • Capacity Plans contain detailed information about: • Volumes • AHT • Assumptions • Hiring • Attrition • LOAs • Headcount • Facilities • Where are the Capacity Plans stored? • The Business Performance website: • http://bpg.cards.citicorp.com/CapacityPlanning/IndexCapPlan.html

10. Capacity Planning Capacity Plan Components • The primary components that are included in the Capacity Plan are: • Hiring Summary: A weekly and monthly overview of the annual hiring forecast by site and function. • Hiring Details: Used to record, track, and forecast weekly hiring and training attrition by site. • Attrition Summary: Overview of attrition for the Business • Attrition Details: Used to record, track, and forecast attrition by site at a weekly or monthly view. • Headcount Details: Used to track, at a given site, a 12-month view of headcount and productive staff available to take handle the workload. • Volume Details: Call volumes, drivers and incremental projects used to track and forecast monthly requirements.

11. Capacity Planning Capacity Plan Summary and Reports • What reports and/or areas of focus help to make up the Capacity Plan Summary? • Volume Details: This takes a look at the projected volume for the entire portfolio and calculates the combined weighted AHT for the function by month. It includes a learning curve base handle time for new hires as well as additional handle time for sales. • Incremental Project File: Forecasts the existing cardmember activities (ECM) that can potentially drive NIVR & Rep Offered Volume • Workspace Utilization Analysis: Used to evaluate any opportunity or risk the organization has with workstations for the group at a given site given the assumptions booked in the Capacity Plan

12. Capacity Planning-Capacity Plan Model Capacity Plan - Table of Contents

13. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • The Cap Plan Summary pulls together on one page, each of the individual components of the Cap Plan

14. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • Top Tier

15. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • Cards

16. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • Average Actives – The average number of active accounts. This number is obtained from either Finance or MIS. Average actives are used as a driver to forecast future calls offered. • Calls Offered – The Actual/Forecast number of calls offered during the period. • VRU By Pass – The number of calls routed out of the VRU. These are included in the Calls Offered total.

17. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • Base AHT – The number of seconds it takes for an agent to take a call • LC – Learning Curve; The number of seconds over the base AHT it takes for a newly hired employee to complete a call • Leveraging Impact – The number seconds over the base AHT it takes for a contingent employee to complete a call • Combined Weighted AHT – Average Handletime for all employees in the function for the period. AHT is the average length of calls and is measured in seconds

18. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • Base FTE Required – The number of agents required to support call volume. It is obtained from eWFM, and is calculated using the following metrics: Offered Volume, Handletime, Shrinkage, Occupancy and the # hours available in the month. • Staffing Strategy – Represents the business strategy to be over or under staffed to best utilize available resources for the servicing of cardholders. Also helps to address the fluctuations in volume and provide the required service level • Total Required – The total number of agents required to provide the required Service Level to our Cardmembers. It is the sum of the Base FTE and Staffing Strategy

19. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • Total Exit the Business – The total number of Associates that left the function during the period • Exit the Business – Those employees that terminate their employment, either voluntary or involuntary • Training – Associates that terminate their employment during training • Transfers – Associates that are transferring to another department within the company. When typically speaking to attrition, transfers are not considered as attrition

20. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • New Hires Graduated – The number of new hires that graduated and hit the floor during the month • Total Productive FTE’s – The total number of productive staff available to take calls • Base Position – The total number of Associates within the group that are available to assist Cardmembers. It is calculated as the Total Productive Staff minus the Total Required Staff.

21. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • Support From – Represents the FTE equivalent of calls handled by other groups • Support To – Represents the FTE equivalent of support provided to other groups • Net Position – Represents the total number of associates across all groups that are available to assist cardholders. It is calculated as the base position plus support from, minus support to, plus overtime minus VTO • Net Position w/o Staffing Strategy – Indicates what the net position would be excluding the staffing strategy from the Total Required. The number is carried forward to the Opportunities and Risks

22. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • Metrics – The actual/forecast operating results for the period • ASA – Average length of time in seconds to answer a call • Service Level – The % of calls answered within a set number of seconds • Occupancy – The % of time the Associates are using AHT compared to the total time they are signed onto the phone. • Availability – The % of time the Associates are signed onto the phone compared to the total scheduled/paid hours • Shrinkage – The inverse of Availability. Calculated as 1 minus the Availability % • Paid Hours – Total number of business days in the month times 8 hours • Productivity – The Total Calls Offered/Productive FTE

23. Capacity Planning-Capacity Plan Model Capacity Plan - Summary • Driver Impacts of FTE – The FTE change that results from a 1 second, or 1 % change in each of the drivers

24. Capacity Planning-Capacity Plan Model Capacity Plan - Availability • Availability – Summary of previous year actuals and current year forecast

25. Capacity Planning-Capacity Plan Model Capacity Plan - Opportunities and Risk • What is the Capacity Opportunities/Risks? • A detailed schedule, by business unit, what the upcoming areas of opportunities/risks are for the department. The Capacity Opportunities/Risk report is completed monthly in conjunction with the updates made to the forecast. • What are the main components to view on the capacity O/R report? • Working Base Position • Working Net Position • Opportunity/(Risk) Position • Potential Management Items

26. Capacity Planning-Capacity Plan Model Capacity Plan - Opportunities and Risk • Summarizes any opportunities/risks that may impact the business.

27. Capacity Planning-Capacity Plan Model Capacity Plan - Plan vs. Current • The Plan vs. Current report compares the current full year forecast versus what was initially projected for Plan the previous year.

28. Capacity Planning-Capacity Plan Model Capacity Plan - Prior vs. Current • The Prior vs. Current report compares the current full year forecast versus what was projected the month before.

29. Capacity Planning-Capacity Plan Model Capacity Plan – Volume Detail • The Volume Detail is a summary by business by site of key call metrics.

30. Capacity Planning-Capacity Plan Model Capacity Plan – Projects • Forecasts activities that can potentially drive volume. • Information is collected from project managers • Assumptions made based on historical programs • Types of activities could include plastics, conversions, CIT, Privacy notifications

31. Capacity Planning–Capacity Plan Model Capacity Plan Hiring Schedules • The Hiring section of the Capacity Plan is designed to give an overview of the annual hiring forecast by Site and by Function. It consists of 2 primary pages: • The weekly hiring page • The Hiring Summary • The hiring schedule can change frequently, for any of the following reasons: • Increase/decrease in monthly Base Contact Rate • Marketing initiatives • Attrition • Handle Time changes • LOA increase • Transfers to other departments • Hiring changes have to be reflected in RPS and notifications sent to the Training and Scheduling departments.

32. Capacity Planning-Capacity Plan Model Capacity Plan – Weekly Hiring • Training Date – The start date is the 1st day of training, usually a Monday and generally consists of Orientation. • Available Date – The 1st day of production. May differ by business based on the length of training. • Requested – The number of associates requested to be hired • Started – The number of associates that actually started the class. • Graduated – The number of associates that completed the class and will join production.

33. Capacity Planning-Capacity Plan Model Capacity Plan – Weekly Hiring • The monthly roll-up table is also included on the weekly hiring sheet. • Internal and External hiring is separated out, due to the variations in the length of the class. • The totals feed to the Staff Count page, that uses the weekly totals to calculate the appropriate FTE lift depending on the week of graduation. • Actual graduating counts should be input as soon as the information is available.

34. Capacity Planning-Capacity Plan Model Capacity Plan – Combined Hiring • The combined hiring page is a weekly view all sites combined.

35. Capacity Planning-Capacity Plan Model Capacity Plan – Hiring Summary • A 12 month overview of all hiring by site.

36. Capacity Planning-Capacity Plan Model Capacity Plan Attrition Summary • The Attrition summaries are used to record, track and forecast attrition for the business unit. • The Attrition summary consist of two tables: • Weekly attrition • Monthly rollup • Attrition should be updated in the cap plan for the month at the beginning of the following month on the Actual Attrition page. This number feeds to the Attrition Summary pages. • The attrition data is pulled from the Headcount Database located on the Capacity Plan2 drive.

37. Capacity Planning-Capacity Plan Model Capacity Plan – Attrition Actual • Actual number of agents that have exited the business should be entered here for the month, at the beginning of the following month. • This information is fed to Weekly Attrition summary.

38. Capacity Planning-Capacity Plan Model Capacity Plan – Attrition by Site • Exit the Business Actuals – The cell refers to the Actual Attrition page. • Exit the Business Forecast – Annualized attrition rate assumption on the staff count pages, multiplied by the prior months headcount, and adjusted for the number of weeks in the month. • Transfers Actuals – Manually entered at the beginning of the following month. • Transfers Forecast – Applies a standard annualized rate, varies by business based on trends, to the projected headcount to determine the number of projected transfers.

39. Capacity Planning-Capacity Plan Model Capacity Plan – Attrition by Site • The monthly table summarized by month the total exits. • Exit the Business % Forecast - Exit the business attrites / Total prior month headcount * 12. • The Exit the Business % is shown on the Staff count pages to forecast the attrites by month. • The Transfers % is calculated the same way.

40. Capacity Planning-Capacity Plan Model Capacity Plan – Attrition Summary • A 12 month overview of all Attrition by site.

41. Capacity Planning-Capacity Plan Model Capacity Plan Staff Count Schedules • The Staff Count Schedules page is used to track, by site, a 12 month view of headcount and productive staff available to take phone calls. It is used to track actual and forecast of Exempt, Non-Exempt and support employees. • The Staff Count Schedule consists of three sections: • Headcount Summary • Graduating Lift • Attrition Lift

42. Capacity Planning-Capacity Plan Model Capacity Plan Staff Count Schedules The Headcount Summary consists of several components, that are used to calculate the productive FTE by month. The Graduating Lift section calculates the FTE equivalent of how much time during the month, graduating staff will be productive, or available to answer phone calls. The Attrition Lift calculates the FTE equivalent of how much time an agent was available to answer calls during the month, prior to leaving. If an agent is graduates and becomes productive in the middle of the month, they can not be counted as a full FTE for the month, because they were only available part of the month. The same holds true for an agent that exits the business.

43. Capacity Planning-Capacity Plan Model Capacity Plan – Staff by Site • Non-Exempt Hiring – Pulled in from the Hiring schedule. • Non-Exempt Attrition – Pulled in from the Attrition schedule. • Exit the Business – Staff leaving the company. • Training – Staff exiting the business during initial new hire training. • Non-Exempt transfers – Staff transferring within or out of the phones. • Attrition % - Annualized attrition based on current trend. (Current month attrition/Prior month non-exempt staff)*12.

44. Capacity Planning-Capacity Plan Model Capacity Plan – Staff by Site • Non-Exempt Staff on Payroll – Staff available to take phone calls, plus staff in training. • Support Staff – Support staff functions, or non-phone staff. • LOA/DIS – Staff on leave of absence or disability. Forecast is based on an assumption based on trends. • Exempt Staff – Officials by band level. • Ratios – The number of staff to UM’s, UM to OM, and OM to Director. • Total Headcount – Non-Exempt + Support Staff + LOA/DIS + Exempt.

45. Capacity Planning-Capacity Plan Model Capacity Plan – Staff by Site • Productive FTE Lift – Full time staff + PT staff converted to FTE. Lift occurs when phone agents enter or exit the lines. • PT Headcount – Non-exempt part time headcount on payroll it subtracted in order for the FTE equivalent to be calculated. • PT FTE – Calculates the FTE equivalent for PT. 1 PT headcount would convert to .667 FTE. • Loans – Reduction in FTE due to loans to other departments.

46. Capacity Planning-Capacity Plan Model Capacity Plan – Graduating Lift • Graduating FTE Lift – Calculates amount of time the graduating staff will be available to answer the phones. • If an agent graduates in the 1st week of the month, they would equate to 1 FTE. • If an agent graduates toward the end of the month, they would calculate to be available only .29% of the month, depending on the number of weeks in the month, or .29 FTE.

47. Capacity Planning-Capacity Plan Model Capacity Plan – Attrition Lift • Attrition FTE Lift – Calculates amount of time the agent was available to answer the phones prior to leaving the business. • If an agent leaves in the 1st week of the month, they would equate to 0 FTE, because the would not have taken phone calls. • If an agent leaves toward the end of the month, they would calculate to be available .71% of the month, depending on the number of weeks in the month, or .71 of an FTE.

48. Capacity Planning-Capacity Plan Model Capacity Plan – Team Ratios • Staff - # productive agents assigned to the site, either historically, or forecasted. • # Teams – 20/1 ratio – The number of staff / 20. • # Teams allocated – The actual # of staff / actual teams assigned.

49. Capacity Planning-Capacity Plan Model Capacity Plan – Walkdown Monthly • Summary of prior month’s performance as compared to plan. • Primarily used as reference while reviewing with business.

50. Capacity Planning-Capacity Plan Model Capacity Plan – Walkdown Detail • Detailed comparison of Actuals vs. Forecast vs. Plan.