Support from National Science Foundation grant DMI-0099821 Robust Strategies for Cross-Training Call Center Agents - T

1. Call Center Cross-training Frameworks: Strategic and Tactical Mark P. Van Oyen with Seyed M.R. Iravani & Wallace J. Hopp Associate Professor Info. Systems & Operations Management vanoyen@nwu.edu orion.it.luc.edu/~mvanoye/ Support from National Science Foundation grant DMI-0099821 Robust Strategies for Cross-Training Call Center Agents - Taxonomy, Models, and Analysis gsbdata.wt.luc.edu/~vanoyen/WorkSmart VanOyen-CallCenter.ppt

2. Outline • Workforce Agility via cross-training to achieve flexibility in the face of variability • Whyuse it? • Symptoms • Strategy Matrix • Howto do it – tactical considerations

3. STRATEGIC TACTICAL Cross-training & Workforce Agility Decisions • 1) Recruitment: sets plan for overall characteristics of workforce and workplace. • 2) Cross-Training Skill Set Design: defines which task-types each worker is qualified/authorized to perform. • 3) Worker Coordination Policy (Routing): allocates workers to tasks (or tasks to workers) over time. • 4) Team Structure: communication & reporting, authority, learning, team problem solving, mentoring, other interactions between agents • 5) Scheduling: short term planning of worker schedules and task assignments. Def’n: Cross-training = XT = training for multiple skills/tasks

4. Dimensions of Cross-training (XT) Implementation • Cross-training Architecture - two basic components: • Skill Set Design: specialists (no XT), nonoverlapping zones, overlapping zones (e.g. chain), full cross-training, etc. This talk de-emphasizes the second component: • Agent Coordination - ROUTING: FCFS, queue/task priority, longest queue, longest wait, etc.

5. Conceptual Model of Cross-training (XT) in Practice • A mental model for thinking about XT • Individuals with 1 or more skills • Scheduled working hours • Possibly restricted task sets utilized at specific times • Matching of agent schedules to demand rates • Agent schedules generate ensemble “teams” that are robust to variability/uncertainty.

6. Worker-Task Matrix: Snapshot in Time A = Active, S= Scheduled Date: 5/20/04 Time: 14:24:33 … … Hypothetical matrix tells what workers are assigned (doing) what tasks at all times. A workforce agility architecture consists of anything that influences the evolution of this matrix over time.

7. Variability is an Important Driver • There are many reasons to cross-train, • but coping with variability • is an operationally important ingredient.

8. Common Variability Issues in Call/Contact Centers and Service Centers • Short-term demand fluctuations • Long-term demand fluctuations • Product (service) life-cycle • Contact length (service time) variation • Scheduling difficulties, changes, and absenteeism • EE turnover • Patience and abandonment characteristics • Variability in supporting resources (network, databases, decision support, level of scripting)

9. Variability & Three Buffering Mechanisms • Variability Law: Increasing variability (and uncertainty) always degrades the performance of a production system. • Buffering Law: Systems with variability must be buffered by some combination of: 1. Inventory (Does not apply with customer service) 2. Time (on hold) 3. Capacity (agents) Hopp and Spearman, 2000 Factory Physics 2nd Ed., Irwin/McGraw-Hill.

10. Buffer Flexibility • Buffer Flexibility Corollary: Flexibility reduces the amount of variability buffering required in a production system. • For an in-bound call center, our options are limited! • Flexible Capacity: cross-trained workers • Scheduling, staging shifts • Skills-based routing (SBR) • Scripting, decision support, • Databases

11. Outline • Workforce Agility via cross-training to achieve flexibility in the face of variability • Whyuse it? + Why NOT to. • Symptoms • Strategy Matrix • Howto do it – tactical considerations

12. Undesirable Effects - Symptoms • Let’s examine through the lens of cross-training some of the primary symptoms that call centers may experience:

13. Symptoms & Possible Contributing Factors • Some workers are significantly more utilized than others. • Concern: Capacity Imbalance: agent overutilization at some call types causes congestion at the same time some task-types are overstaffed! • Excessive congestion: Poor Service Level (SL), long waits, high abandonment, etc. • Concern: Problems with staffing; forecasting errors; Root may be insufficient flexibility • Low customer-perceived quality due to insufficient complementary experience • Concern: Overspecialization is preventing workers from developing a sufficiently broad skill and experience base • COUNTER: Low Quality due to insufficient focus/depth

14. UnDesirable Effects - Symptoms • Variation in demand/workload that hurts performance and makes staffing difficult. • Concern: Need greater risk pooling and flexibility to cope with uncertainty • Excessive turnover (especially from potential leaders) • Concern: Lack of perceived career path • COUNTER: cross-training seen as eroding security, adding to stress. • Excessive absenteeism • Concern: Rampant boredom. May need to create learning/growth. • COUNTER: Excessive absenteeism due to stress caused by XT?

15. Dominant Bases for Competition • Cost (labor is large, technology, training) • Quality (customer-perception, errors, …) • Leadtime (ASA, SL, Abandonment, …) • Variety (increased number tasks, call types, channels, …) • A basis for STRATEGY …

16. Strategy Matrix for Use of Cross-training

17. Strategy Matrix Examples CC-FULL: Strategy Matrix for a large call center which handles HR Benefits for multiple clients. Solution has been to create teams dedicated to each client. A worker is trained to utilize an Info. Sys. to effectively answer any call on any benefit. Variety of task types. Similar performance metrics and levels across task types. Solution: Non-overlapping Zones with full cross-training within zone (i.e., client team).

18. Strategy Matrix Examples CC-N: Strategy Matrix for a call center with 40 agents, 6 task-types – similar task types, similar performance metrics and levels with one exception. High % of volume to one basic call type. Solution to date has been to cross-train with a type of “N-pattern” to provide most of capacity to first call type while maintaining variety and flexibility. Note: low turnover, high commitment to workforce)

19. Motivation/Retention: Worker Job Satisfaction(Red = Clear link to cross-training) • Full display of ability • Improvement of ability • Fair recognition of ability • A vision of his/her advancement (growth) • “work” is not just a sequence of tasks, but includes one’s role in org. and responsibility for related matters • Appropriate teamwork • Support for accomplishment Sources: F. Herzberg, “One more time: How do you motivate employees?”, HBR Jan-Feb. 1968 and Toyota Executive Seminar Presentations

20. Strategy Matrix Examples CC-OVERLAP: Strategy Matrix for a large call center with more than 8 products – high variety of task types, various performance metrics and levels. Solution to date has been to cross-train with overlapping zones, but there is no clear, defined strategy.

21. Outline • Workforce Agility via cross-training to achieve flexibility in the face of variability • Whyuse it? • Symptoms • Strategy Matrix • Howto do it – tactical considerations • Canonical Skill Set Patterns • Tactical Framework

22. 1 2 N Possible Approaches … ... lT m1 m2 mN • Specialists without cross-training • Rotation: workers scheduled over time (org. learning) • Pooling: Non-overlapping Zones • Overlapping Zones • Cherry-picking (cross-train underutilized workers to help overutilized) • “N-Pattern” • Chained cross-training • Full cross-training: Single, common pool • Etc.

23. Canonical Skill Patterns:Graphical Description • Example: Benefits Services Provider • Inbound HR administration for 2 corporate clients: CoA and CoB • Suppose each has services for • Health Care • Life Insurance • Retirement Plan • Suppose each benefit area for a specific firm is regarded as a task-type (limited cross-training is already in place)

24. Specialist Approach Six Skills or Task-types, 6 worker teams “Teams” are used to obtain the necessary capacity – not for cross-functionality

25. How to Provide Flexibility? • Cherry-picking Rationale: • What if for CoA, Health Care (1) is experiencing very long waits, while Life Insurance (2) is experiencing low agent utilization? • How can cross-training help with emphasis on minimizing the amount of cross-training?

26. Cherry-picking for Capacity Balancing Six Skills or Task-types, 6 worker teams, 2 skills/worker for Team W2 Cherry-picking: cross-train underutilized workers to help overutilized. (Can solve via math program)

27. “N-Pattern” (Overlapping Zones) Capacity Balancing with Var. Buffering Tasks 1, 4 have high demand volumes, 2 skills/worker Max

28. High volume Worker Teams (Pools) Demand Types (Queues) “N-Pattern” (Overlapping Zones) Capacity Balancing with Var. Buffering • When • There is one or more call times with a large fraction of the demand • A specialist approach suffers from either poor • Capacity balancing (utilization) • Variability buffering (congestion) • THEN • An “N-Pattern” is often effective

29. Pooling: Non-overlapping ZonesQuest for High Utilization and Simplicity One choice of pooling (with full XT for CoB tasks)

30. How to Provide Flexibility? • Example: Due to bursty, unpredictable fluctuations in the incoming calls, the CC has found it impossible to keep waiting times as low as they want. • If capacity can be dynamically allocated to where it is needed, we will help minimize the times when there are idle “Life Ins.” agents, while “Health Care” has a long queue and excessive abandonment. • How can cross-training maximize variability buffering? • The following skill pattern comes from THEORY and manufacturing. (We have not seen it in a call center.)

31. 2-Skill Chaining (Partially Overlapping Zones) D=2 skills/worker, Chain limited to client We can generalize to D-skill chaining (D=2, 3, …) to get the desired effect.

32. 2-Skill Chaining (Fully Overlapping Zones) Conjecture: Maximizes flexibility given a fixed number of skills. Observe the symmetry of skill chaining – across all the skills, thereby allowing CoA capacity to flex “into” and “out-of” CoB’s.

33. “D-skill Chain” (Overlapping Zones) Modest Capacity Balancing with High Variability Buffering • When • Demand is spread across multiple call types • Variability buffering is important for reducing congestion • D skills per worker is an effective number • Every task-type can be cross-trained • THEN • An “D-skill Chain” is often very effective (perhaps optimal) Worker Teams (Pools) Demand Types (Queues)

34. Outline • Workforce Agility via cross-training to achieve flexibility in the face of variability • Whyuse it? • Symptoms • Strategy Matrix • Howto do it – tactical considerations • Canonical Skill Set Patterns • Tactical Framework

35. The TACTICAL FRAMEWORK • Factors shaping how best to implement workforce agility: • Training Efficiency • Handoff Reduction • Task-type and Resource Transition Efficiency • Multi-tasking Efficiency + [Strategy Factors] • Capacity Balancing (utilization) • Variability Buffering (congestion) • Knowledge Scope/Depth (value of breadth vs. depth) • Communication: Org. learning and capability development • Problem solving • Motivation • Retention • Ergonomics

36. TACTICAL FRAMEWORK • Training Efficiency: • Gauge how effectively workers can be trained for new skills. [individual-dependent learning curves and forgetting of skills, equipment, layout, ergonomics, career path, etc.] • Cost of Skill Acquisition captures the average expense of training workers to cover and to retain new task types. [e.g. order processing vs. tech support] • Skill Level Variation: the range of difficulty of acquiring different types of skills. Quality variation. [e.g. troubleshooting requires aptitude]

37. TACTICAL FRAMEWORK • 2. Handoff reduction • • Assess efficiency and quality gains by avoiding handoffs • Mechanism: Job enlargement Example: Savings of handoff elimination include: • Customer frustration • Time repeating information • Quality loss due to fragmentation of knowledge at provider

38. TACTICAL FRAMEWORK • 3. Task-type and Resource Transition Efficiency • • Impact of time lost when a worker switches between task types or workstations Examples: • CSR switches from sales to service calls may need to close one database and open another. • agent needs to move to a different workstation (call A  fax A  call B  mail B) •  Design workstations & IT resources to support XT/SBR

39. TACTICAL FRAMEWORK • 4. Multi-tasking Efficiency: • Gains from a worker performing multiple tasks simultaneously. • [e.g., ability to maintain more than one on-line chat session at a time].

40. Summary View of TACTICAL FRAMEWORK Workforce Agility Strategy Cross-Training Skill Sets and Skill Pattern Routing & Worker Coordination • Training Efficiency • Capacity Balancing • Variability Buffering • Knowledge Scope/Depth • Communication • Motivation • Retention • Handoff Reduction • Task-type & Resource Transition Eff. • Multi-tasking Efficiency • Problem solving • Ergonomics

41. Summary & Future Work • Thorough, systematic structure offer step towards a science of Workforce Agility via cross-training • Linkage to business strategy • Guidance for tactical-level implementation. • Open questions • Better methods to assess factors (tailored to call centers) • How to better create Employee Satisfaction & Motivation to drive retention and quality? • With significant abandonment and complex performance criteria, how to accomplish skills-based routing (simple, robust policies)? How much difference does it make? • What skill patterns make routing easy? (chain, ??)

42. gsbdata.wt.luc.edu/~vanoyen/WorkSmart