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Get on the Path for At-Home Deployment Convince Even the Most Cautious CEO. Tom Milligan VP of Sales, Western Region. How do you convince anyone to do anything?. Find out what they want Give it to them. What do All CEOs Want?. Lower costs Increased productivity
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Get on the Path for At-Home DeploymentConvince Even the Most Cautious CEO Tom Milligan VP of Sales, Western Region
How do you convince anyone to do anything? • Find out what they want • Give it to them
What do All CEOs Want? • Lower costs • Increased productivity • Improved customer loyalty
Lowering Costs Total cost of employee absence average 36% of base payroll • Includes both direct costs, like employee pay, and indirect costs, like replacement expenses and net lost productivity • Not included are the administrative costs related to managing employee absence Source: Success Performance Solutions (http://www.super-solutions.com/CostofAbsenteeism.asp)
Reduce Absenteeism Costs by 63% Source: TelCoa (www.telCoa.org)
Reduce Attrition by 26% * Source: TelCoa (www.telCoa.org)
Boost Productivity by 22%* * Source: TelCoa (www.telCoa.org)
Increased Customer Loyalty Average satisfaction increased by 12%* • Difficult to quantify hard-dollar savings • Large online retailer: 1% = $1MM * Source: TelCoa (www.telCoa.org)
Does Your CEO Need More? • Humanitarian • Tree Hugger • Profiler • Copy Cat • Hypochondriac • Legacy Seeker
Offshoring Trends * Estimated Source: IBM Daksh Business Process Services
Offshore Length of Life *Estimated
Traditional Brick & Mortar Agent Profile • Average Age: 17-21 • Facial Piercings: 5 • Visible Tattoos: Several • College: LOL • Relevant Experience: Fast Food • Management Experience: Babysitting Source: Tom’s Imagination
Home Agent Profile Average age: 35+ 80% have attended college 85% have experience in sales and customer service 40% have management experience 30% are bilingual Source: Frost & Sullivan
Copy Cat: It’s Not a New Thing First Telecommuter on Record: • Bank President • Somerville, MA • 1877 Pioneer of Modern Telecommuting: • Jack Nilles • Los Angeles, CA • 1973 First Corporate Initiative: • Blue Cross/Blue Shield of South Carolina • “Cottage Keyer” Project • 1978
Added Shareholder Value Source: Watson Wyatt Human Capital Study = Additional 3.5%
WFH, How to Convince the Most Skeptical CEO Paul Vaillancourt, VP Customer Care
The support.com Story • About support.com • Making the WFH decision • The Early Days • Growth and Development • Reaching Maturity • What I Might Have Done Differently • From the Top • Do You Believe?
About support.com • Leading provider of remote technology services • Provides remote technology support services directly to consumers • Powers premium technology support offerings for third parties, like Office Depot, Staples and AVG
About support.com • 300+ SE Solutions Center - 100% North American (US and Canada) based - Average age = 34 (range 18-61) - All full time - 15:1 SE to Supervisor ratio - Diverse backgrounds • 100% services delivered online and remote - Incident Services - System Tune-up, PC & Device Setup, Configure and Troubleshoot - Diagnose and Repair: Incident Based for Software Issues - Support Plans - Monthly / Annual / Family / Student / SOHO • Integrated service delivery management system • We eat our own dog food
Making the Work From Home Decision Options Evaluated • Brick and mortar • Outsourced, domestic and off-shore • Hub and spoke WFH • Fully distributed WFH Factors in Play • Customer experience • Start-up cost • Operating cost • Management control • Speed of starting up • Systems integration
The Early Days Launched domestic outsource model January 2007 • Risk of new, unproven business model • Intended to grow this model • Modified plan October 2007 to design and build WFH • Hired first WFH employees February 2008 • Transition to 100% WFH July 1, 2008 Our design • Full time employees, not contractors • Employee provides workstation & ISP, we provide telephony (VOIP) • All technology is virtual • Start with regional hiring, traditional format • Evolve to 100% virtual hiring and on boarding • 100% virtual training
Growth and Development Kickoff • Due diligence on starting location • Selected greater Austin,TX area • Easily and quickly mired in old comfort zones Transition to Virtual • Complete change to recruiting • Red states vs. green states • Thousands of applicants • Virtual screening, hiring, training, etc • “Pulling ‘em through the knothole” Scale • Unique, multi-level online screening • Simplify and streamline telephony setup • Systems integration
Growth and Development Some unique problems • Can no longer “walk the floor” • Coaching & feedback • Building culture is tough x2 • The invisible SE • Where’s Waldo? • Getting equipment back Some unique benefits • Easiest site I never built • Never too few or too many seats • Amazingly diverse talent pool • Too easy to work too much
Reaching Maturity Where the rubber meets the road • Average annual salary - $28,080 • Average absenteeism – 4% of total payroll hours • Annualized voluntary attrition – 11% (less than 20% all in) • Productivity – 88% (based on schedule less breaks/lunch) • CSAT – 93% top 2 box, “Would you recommend?”
What I Might Have Done Differently Get hired sooner Build support staff Make WFH commitment at the start Eliminate regional hiring step Automate screening Integrate training into WFH More attention and thoughtful development of culture Process improvement (Six Sigma) from day one Integrate technology sooner More detail and attention to report design
From the Top “The ability to recruit nationally and the incredibly low turnover are the two best things about a 100% work from home model. This allows us to find the very best people and to keep them longer than anyone else!” -Josh Pickus, CEO support.com “We conducted a thorough study of the best-in-class labor models and it was clear that at-home deployment had its challenges, but properly implemented would lead to a lower cost organization with happier employees. I expected less attrition, less recruiting costs, and a higher caliber workforce using a distributed model… and that is exactly what we have built!” -Anthony Rodio, COO support.com
Do You Believe Yet? If you don’t STOP HERE! But you’d better VERY SOON! What does it take to change? C=(AxBxD)>X C = Change A = Vision of ideal future state B = Dissatisfaction with status quo D = Knowledge of practical first steps X = Perceived cost of change
Key Takeaways One Two Three Convince yourself that it’s the right move BEFORE you try to convince anyone else. Arm yourself with knowledge: 1. Get to know your CEO and what makes him/her tick. 2. Find the data that will help them understand why it’s the right move. Don’t dip your toes in the water. Either jump in with both feet or don’t do it at all.