Employee Frustration Drives Customer Dissatisfaction

1. Employee Frustration Drives Customer Dissatisfaction Case Study by: Kim Betty Ashley Bouey

2. The Mager Model • A series of steps used to figure out how to solve any given performance problem. • Applied to AMRE Insurance Company problem.

3. Kickoff • Email from client: • New customer data system • Too many mistakes • Costing time and money

4. Company Background • AMRE Insurance Company • “AMRE makes traveling through life safe and convenient.” • Services • Company size • Average wages

5. What’s the Problem? Whose Performance is concerning you? Describe Discrepancy

6. What’s the Problem? • Percentage of errors in frontline employee data entry: • 20% error rate

7. Is it Worth Solving? NO Worth Pursuing? Done

8. Is it Worth Solving? • Use the following information to find the company’s monetary loss: • 1.8 million customers • 20% error rate • 5 minutes taken to find and correct error • Hundreds of thousands of dollars lost each year!

9. Yearly Losses • # of Customers X Error Rate = Amount of Errors • 1.8 million X (.20) = 360,000 • Amount of Errors X Amount of time to correct = Minutes • 360,000 X 5 minutes = 1.8 million minutes • Minutes ÷ 60 Minutes/Hour = Wasted hours/Year • 1.8 million minutes ÷ 60 = 30,000 wasted hours/Year • Average Salary X Wasted Hours/Year = Total Loss $/Year • $21.00 X 30,000 = $630,000 Lost every year

10. Can we apply Fast Fixes? NO Clarify Expectations Expectations Clear YES NO Provide Resources Resources Adequate YES NO Performance Quality Visible Provide Feedback YES Problem Sufficiently Solved YES Done

11. Can we apply Fast Fixes? • Observations • Resources • Survey • Expectations • Feedback

12. Are Consequences Appropriate? YES Is Desired Performance Punishing? Remove Punishment NO YES Is Poor Performance Rewarding? Remove Rewards NO NO Provide / Rearrange Consequences Are Performance Consequences Used Effectively? YES NO Problem Sufficiently Solved? YES

13. Are Consequences Appropriate? Erica Burns:“People, we can’t afford to be making such petty mistakes all the time! You all need to figure out how to input the information correctly. I mean, come on, you have manuals; isn’t that enough!?!” Joyce Reynolds:“But, I didn’t do anything wrong, why are you mad at me?” Erica Burns:“I don’t care if it wasn’t you, there’s enough mistakes to go around!”

14. Do They Already Know How? Genuine Skill Deficiency? YES / NOT SURE NO NO Did It In the Past? YES YES Provide Feedback Used Often? NO Provide Practice

15. Do They Already Know How? • Anonymous records:

16. Are There More Clues? YES Simplify Task Can Task Be Made Easier? NO YES Any Other Obstacles? Remove Obstacles NO NO Person Has Potential To Change? Replace Person YES Train

17. Are There More Clues? You:“Why do you feel this job is being poorly performed?” Rick:“I can’t think of anything in particular that would be a problem. You may want to ask the Manager of the frontline employees though.” You:“Why was the new system implemented?” Rick:”We were pretty out of date when it came to the frontline system and we needed to input data quicker in order to keep up with competitors.”

18. Select And Implement Solutions Select Best Solutions Draft Action Plan Implement And Monitor Calculate Costs Done

19. Solutions • Four feasible solutions: • Job Aid • Feedback System • Reward System • Training on each system (feedback, reward)

20. Training on Reward/Feedback System Feedback System Reward System Job Aid