“Why Call Centres Fail…….” This Study is based on 126 documented Call Centres Cases.

1. “Why Call Centres Fail…….”revised 28. April 2000Presented byNiels Kjellerup, Senior PartnerResource International Pty Ltd (Australien).

2. “Why Call Centres Fail…….”This Study is based on 126 documented Call Centres Cases.

3. “Why Call Centres Fail…….”Study of 126 Call Centres. Geographic Distribution : US 84 period 1982-1997 EU 33 1986-1997 OZ 9 1988-1997

4. “Why Call Centres Fail…….”Study of 126 Call centres Organisational Focus Financial 45 Industrial 31 Service 38 Government 12

5. “Why Call Centres Fail…….”Study of 126 Call centres The 3 distinct Phases of a Call Centre’s life : I. Operational Phase ( 6-12 months) II. Expansion Phase (12-18 months) III. Integration Phase ( + 18 months)

6. “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?

7. Practical Guide to FailuresOperational 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

8. Practical Guide to FailuresExpansion Phase (37+++ in 12-18 months) • False Benchmarks

9. 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

10. Practical Guide to FailuresExpansion Phase (37+++ in 12-18 months) • False Benchmarks • Channel Conflict • Galley Slave V’s Coaching Culture Call Centre

11. Practical Guide to Failures The Galley Slave Model Vs the Coaching Culture Call Centre.

12. The Galley Slave Model Productivity Min. Productivity Demand 20% Time

13. The Galley Slave Model Productivity Max.Potential on job 24% Min Product demand 20% Time

14. The Galley Slave Model Productivity Max.Potential on job 24% 20% Min Product demand Time

15. 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.

16. 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

17. Key Ingredients of Coaching Culture : Monitoring Appraisal of skills and performance Coaching to improve identified barriers to communication & relationship building

18. Coaching Culture Development Model Productivity 24% Professor Herzbergs Research. 20% Time

19. Practical Guide to FailuresExpansion Phase (37+++ in 12-18 months) • False Benchmarks • Channel Conflict • Galley Slave V’s Coaching Culture Call Centre Model. • Customer Satisfaction not measured or used as a Comfort Zone.

20. Practical Guide to FailuresIntegration 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

21. 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

22. 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

23. 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 You’re all invited to visit and contribute your own insights and learning experiences.

24. Thank you…...If you have any question feel free to E-mail me nk@callcentres.com.au