“Why Call Centres Fail…….” revised 28. April 2000

Presented byNiels Kjellerup, Senior Partner

Resource International Pty Ltd (Australien).

“Why Call Centres Fail…….”

This Study is based on 126 documented Call Centres Cases.

“Why Call Centres Fail…….”Study of 126 Call Centres.

Geographic Distribution :

US 84 period 1982-1997

EU 33 1986-1997

OZ 9 1988-1997

“Why Call Centres Fail…….”Study of 126 Call centres

Organisational Focus

Financial 45

Industrial 31

Service 38

Government 12

“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)

“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?

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

Practical Guide to FailuresExpansion Phase (37+++ in 12-18 months)

• False Benchmarks

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

Practical Guide to FailuresExpansion Phase (37+++ in 12-18 months)

• False Benchmarks

• Channel Conflict

• Galley Slave V’s Coaching Culture Call Centre

Practical Guide to Failures

The Galley Slave Model Vs the Coaching Culture Call Centre.

The Galley Slave Model

Min. Productivity Demand20%

Productivity

Time

The Galley Slave Model

20%

Productivity

Time

24%Max.Potential on job

Min Product demand

The Galley Slave Model

20%

Productivity

Time

24%Max.Potential on job

Min Product demand

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.

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

Key Ingredients of Coaching Culture :

•Monitoring•Appraisal of skills and performance•Coaching to improve identified barriers to communication & relationship building

20%

Productivity

Time

24%Professor HerzbergsResearch.

Coaching Culture Development Model

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.

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

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

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

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

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