Top reasons why your company must have an efficient call center

August 30th, 2010

Imagine that your company sells high quality products or services, has an excellent IT and human resource department, your products are well known in the market, but there is one problem – you cannot handle all calls from customers or your customer support service lacks professional call center operators.  In course of time people will refuse to buy your products and services of not because they don’t like them but because they know you will not offer any support to them.  As a result, sales growth will slow down and gradually decrease.  So, despite having professional managerial staff and the best strategy, you won’t be able to achieve positive sales results.

Call center tracks customers from intention to buy to purchase and post sale service

Call center tracks customers from intention to buy to purchase and post sale service

Call center is an important business unit in any company that offers products and services to potential customers.  Once a customer has purchased a product he may have some questions or problems with it, and a call center operator seems to be the only person who can resolve such problems.  Very often customers form their judgment and image of the company based on their communication experience with call center tech specialists.

If you’re calling your web-hosting company or Internet Service provider and you failed to get answers to your questions you will probably think about changing your web-host or ISP.  The same concerns producers of laptops, cell phones etc.

That’s why it is extremely important to measure efficiency of a call center.  Moreover, it is imperative to align call center goals and measures with the company strategy.  In other words, and ordinary call center operator should look at a strategy map and understand how improvements and his performance will contribute to implementation of strategic goals.  If everyone in a call center has a clear understanding of the company strategy, the personnel will be motivated to use balanced scorecard.

This is how callcenter works

This is how callcenter works

One of the most common mistakes in balance scorecard implementation in call centers and customer support services is the focus on number of calls handled by a single operator.  Of the problem is that a call center operator may handle 200 calls a day but solve only 10 problems.  The goal of customer support service is to solve customer problems but not just answer phone and say “Yes, we understand your problem and we’re looking for solutions.”

That’s why, it is imperative to choose the right indicators that will measure progress in implementation of call centers strategic goals.  To achieve that BSC team leaders should attract ordinary personnel to strategy development.

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BSC mistakes and choice of teamleaders

August 21st, 2010

Implementation of balanced scorecard made a quite a long time.  But, perhaps, the most important stage is development of BSC, key performance indicators and strategy maps.  The company can adjust make a decision to implement balanced scorecard and start using it the next day.  No way that can happen.  Implementation of balanced scorecard is preceded by proper preparations.  The company first needs to decide who will be responsible for development of balanced scorecard and who will be in charge.  This seems like an easy question to answer but in fact it appears to be a great problem for many companies.

Some of major BSC mistakes

Some of major BSC mistakes

Formation of special working groups and teams is a very important step which needs to be taken in development of balanced scorecard.  Moreover, these groups should consist of top specialists.  Many companies are making a typical mistake of including only top managers to the working group in charge of BSC development.  Of course, top managers know much about strategy and strategic planning, but some of them are far from operational level.  Some top managers have never seen company customers, while head of sales department can tell a lot about customer groups.  For example, chief HR manager knows how to improve organization climate and the company which will encourage personnel to show their best performance.

Working group members

Working group members

That’s why it is extremely important that BSC team should be well balanced.  Sometimes companies hire external advisors who have experience in implementation of balanced scorecard in other companies.  But it happens that they simply use most typical balanced scorecard models which do not necessarily suit specific company needs.

Another important issue is managerial style.  Experience shows that it is better to have a bad strategy but implemented in a proper way than to have the best strategy and do wrong things in order to reach strategic goals.  Strategy can be changed but managerial style may remain the same.  Some old school managers use old fashioned approaches to project management.  Moreover, they consider balanced scorecard to be just another control tool.  Of obviously, personnel will not like this idea, and balanced scorecard will be simply unused.

That’s why, it is extremely important to get personnel prepared to use balanced scorecard.  And top managers should show their faith in this system and acquire new approaches.  They have to change themselves in order to change the organization.  Balanced scorecard should initiate changes otherwise the system will not work.

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Preparation of BSC implementation: formation of a working group

August 15th, 2010

Implementation of balanced scorecard requires proper preparation.  It is extremely important to create are working group that will do the bulk of the job on development of strategy maps and their implementation in organization.  At a first glance, this seems like an easy task.  Indeed, creation of the working group looks easy.  But there are many pitfalls and hidden obstacles here.  Balanced scorecard is not just another accounting tool or a method to control personnel.  The concept of balanced scorecard must be promoted at all company levels.  First and foremost, company top management should show ordinary personnel their true faith in the power of balanced scorecard.  If ordinary employees see that their top managers are reluctant to use balanced scorecard why should they do that?

BSC working group members

BSC working group members

When implementing balanced scorecard in a call center it is imperative to find the right people who will form a working group.  On the one hand, balanced scorecard is used to measure company progress on implementation of strategic goals, and that’s why such a working group needs competent and professional people who know much about strategic management.  On the other hand, ordinary employees in the company are the most well informed people on such issues as customer relations, current problems in the company, ways to solve these problems etc.

BSC preparation cycle

BSC preparation cycle

As a rule call centers either sell products and services via phone or provide customers with online support.  Strategic goals may vary from improvements in customer support service to sales growth and winning of new market shares.  Depending on the goals, relevant balanced scorecard will be developed.

It would be wrong to keep ordinary call center operators away from discussion of strategy maps and development of key performance indicators.  Sometimes, business gurus do not see obvious things which ordinary call center operators encounter every day.  They talk to customers and they know who they are.  During such discussions one may expect very creative and revolutionary ideas from call center operators.

Besides, inclusion of ordinary personnel to working groups in charge of implementation of balanced scorecard will guarantee that such a working group will develop fair and comprehensive reward system.  Motivation is very important, especially for ordinary personnel, as employees need to understand why they should use balanced scorecard and what benefits they personally will get.

Some companies consider this initial stage to be a final one.  They develop strategy maps, for a working group and that’s it!  They think the work is done.  But in fact it only begins.

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What reward systems are to be used in BSC?

August 9th, 2010

It is extremely important to properly motivate company employees when implementing balanced scorecard and introducing strategy maps.  Of balanced scorecard requires great involvement of the entire company personnel.  Of course, it wouldn’t be reasonable to demand deep knowledge of BSC and company goals from every employee.  But at the same time the more personnel knows about company strategic goals the better it will perform in order to achieve them.

Why is reward system important in BSC implementation?

Why is reward system important in BSC implementation?

Motivation in balance scorecard implementation is one of the preconditions for success.  Indeed, if the employee is motivated in the right way he would do his best to show the highest performance.  Besides, balanced scorecard and strategy maps very often cause a broad discussion within the company.  And very often the most creative ideas come from ordinary personnel.  Top managers are sometimes unaware of peculiarities of customer conduct while front line managers sometimes know their customers even better than their friends because they deal with them on the everyday basis.

What motivation now we’re talking about when implementing balanced scorecard?  Well, sure thing this is financial motivation.  Employees must be financially interested to improve performance and reach strategic goals at the intermediate and final stage.

Proper motivation is important for BSC use

Proper motivation is important for BSC use

The same time implementation of strategic goals is not only about having expected values of key performance indicators in the four perspectives: financial, customer, internal processes, learning and growth.  Strategy implementation is about having future vision and personal interest in the company success.  So, motivation gives employees reasons to show their best performance.

As a rule, reward programs are introduced to the level of department or a business unit.  In such a way it is easier to control all business units and the company and communicate goals and tasks of different departments.

It would be interesting to mention that motivation can be also nonfinancial.  For example, top performing employees may be offered such rewards as attendance of some business seminar, additional time for personal project, meeting with the business guru George is having additional vacation or time off to spend it with family and friends.

Remember that even if balanced scorecard is implemented observing all norms and conditions it will not work unless company personnel is truly interested in it.  Indicators and requirements should be understood for ordinary employees otherwise they will start considering balanced scorecard to be another control system which will cause opposition or even anger.  A properly motivated employee is an employee who is interested in his personal development and growth, as well as company success in general.

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Check out SWOT analysis guide from AKS-LABS

July 29th, 2010
Download free version of SWOT analysis guide

Download free version of SWOT analysis guide

It is impossible to develop strategic goals for any company in the company management is not aware of its weak and strong points, opportunities and threats for the business.  SWOT analysis is believed to be one of the most effective tools used in implementation of strategic goals.  Strengths, weaknesses, of opportunities and threats will define company strategy and influence decision-making.

AKS-LABS offers to download free version of SWOT analysis guide which contains SWOT templates and a special guide.  These materials contain valuable information on SWOT analysis, its methods and indicators.  You will learn much about what is referred to strengths, weaknesses opportunities and threats.

Moreover, you will learn about similarities and differences of SWOT analysis and balanced scorecard concept.  It turns out that these two concepts are no more competitors but they complement each other, and you’ll also learn about this from the free SWOT analysis guide.

The free version of SWOT analysis guide will certainly give users a general idea about the strategic management tool will answer some of the most urgent and acute questions related to this issue.

Download free SWOT analysis guide from this page.  Full version of this package is available here.

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Poor call center performance leads to loss of customers

July 21st, 2010

It is important for every company to employed and retain professional personnel.  Indeed, human resources play the most important role and become the most critical success factor in any business area.  Let’s not forget that it is people who make decisions and it is top managers who help businesses overcome crisis.  Ordinary employees generate income through attraction and retention of customers.  This especially concerns call centers and customer support services.  The peculiar feature of a call center and a help desk is that very often customers form their judgment about the company by the experience they have in conversation with the call center operator.  For example, you have purchased brand new laptop but you’ve got some problems and questions about it.  If you pick up the phone and dial a number of a call center.  Naturally, you expect to have your questions answered and problems solved.  But the conversation fails to live up to your expectations.  Your attitude two was the brand become somewhat negative, of although you like the laptop itself, its functions, features and price.  But from now on, you are unlikely to buy left of this brand ever again.

Call center tasks

Call center tasks

This example vividly demonstrates how a call center operator performance may result in loss of customers.  For this reason, it is imperative to evaluate performance of a call center (both groups and individual) and introduce amendments if necessary.  In other words it is important to solve problems even before they occurred.  Also, measures and goals of a call center should be integrated into the system of mission, values and strategic goals of the company itself.

How poor call center performance leads to loss of customers

How poor call center performance leads to loss of customers

In order to accomplish all the above tasks, a reliable and effective performance evaluation tool is needed.  Balanced scorecard is such a tool that communicates operational and strategic management.  Having looked at the strategy map that balanced scorecard software can create, it is possible to see cause and effect ties between actions and attitudes of call center operators and implementation of the company strategic goals.  The above example shows that certain mistakes or lack of competence may result in loss of customer.  Keep in mind that lost customer will surely go to competitors which is a direct loss of competitive advantage.

Balanced scorecard makes it possible to set goals and measures in the four perspectives: financial, customer, internal business processes, learning and growth.  Each category of indicators characterizes certain side of the business, a call center or a customer support service in our case.

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Use of nonfinancial indicators for call center evaluation

July 17th, 2010

The choice of key performance indicators in implementation of balanced scorecard is one of the most important and critical stages of the entire implementation and maintenance process.  Indeed, it is very important to choose winning key performance indicators (KPIs) in order to operate correct figures and data.  It can be compared with building a house without a foundation or with a poorly build foundation.  Such a house will not last for long.  That’s why, creation of KPIs requires knowledge and experience.  By the way, the wrong choice of key performance indicators is one of the most common mistakes in implementation of balanced scorecard system which was created in early 1990s by Norton and Kaplan.

BSC perspectives

BSC perspectives

What is the difference between balanced scorecard and others similar systems of business strategic management?  Balanced scorecard was the first system to include nonfinancial indicators to evaluate intangible assets of the company.  There is no problem with financial indicators as such.  But their key disadvantage is that they tell us about past events, while strategic management implies forecasting.  The strategy must include possible problems and obstacles on the company’s way to implementation of strategic goals.  This is where nonfinancial indicators come into play.

Less view several examples applied to call center metrics.  As known, call centers and help desks are those business units that are directly contacted by existing and potential customers.  That’s why, call centers and customer support service is a pretty much responsible for retainment and attraction of customers.

KPIs for sales call center and support service

KPIs for sales call center and support service

How nonfinancial indicators can improve financial results?  For example, top management of the company requested that call center improve customer satisfaction by 50%.  What does it mean in practice?  It means that satisfied customers are more likely to make another purchase with the company, while potential customers will be predisposed to make their first purchase.  As a result, the company gets increases revenue and a greater market share.

What about employee satisfaction?  Statistics show that most satisfied employees have most satisfied customers.  We can see here clear cause and effect ties between customer and employee satisfaction, and company financial results.

Through introduction of nonfinancial indicators to the balanced scorecard it is possible to plan future and communicate all four categories in BSC.  All goals and measures in balance scorecard are interrelated, so in order to achieve financial results the company should fulfill goals in customer, internal processes, learning and growth categories.

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Number of porblems solved vs. number of calls handled

July 5th, 2010

Implementation of balanced scorecard is sometimes a lengthy and complex process.  The key problem is that balanced scorecard is often viewed as a universal tool which solves all problems in business.  Very often top managers and business owners confuse Balanced Scorecard, as a strategic management tool, with the strategy itself.  No program and no business management solution can offer a strategy.  Balanced Scorecard can only help communicate strategic and operational management and transfer strategy into action.  But without a valid strategy Balanced Scorecard becomes a pile of useless charts, graphs and tables.  Development of a strategy is the most important initial step in BSC implementation.  Balanced scorecard without a strategy is like the house without foundation.

What is more important? Handled calls quantity or number of problems solved?

What is more important? Handled calls quantity or number of problems solved?

When we’re talking about implementation of balanced scorecard in call centers and customer support services it is imperative to take into account peculiarities in the work of these business units.  Most often call centers and customer support services operators are those front line employees who directly contact with customers.  So, these people are aware of customer needs and problems.  When a customer calls support service he forms his judgment of the company based on conversation with the operator.  The goal of any company is to turn customers into regular customers.  So, if a person has some questions about purchased a product or service he talks with the call center operator.  After successful conversation (first resolution call) such a customer is more likely to become loyal to the company.

How call center contributes to company profitability

How call center contributes to company profitability

At the same time, in order to make work of a call center effective it is imperative to set the right goals and each and use the right measures.  Who is an efficient operator and who is not?  Is it the kind of operator who can handle the maximum amount of calls per hour?  Or is it the one who manage to solve the greatest number of problems per certain period of time?  Well, everything depends on the strategy.  But as a rule, the second measure is the most important.  Call center operators should answer questions and solve problems.  There is no sense in a conversation if customer fails to achieve desired result.  That’s why, when implementing balanced scorecard it is necessary to introduce special bonus system for high performing operators who manage to solve customers’ problems using their knowledge and experience.  For example, in sales call centers operators should make as many sales attempts as possible and be rewarded for that.

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Balanced Scorecard in call centers – best practices

July 4th, 2010

Learn more about best practices of using Balanced Scorecard and KPI in call centers and customer support service. The Balanced Scorecard library features the best articles about Balanced Scorecard and Call Centers:

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Is it easy to set the right goals?

June 29th, 2010

One of the most common mistakes and BSC implementation is failure to set the right goals and objectives.  At a first glance goal setting seems quite easy. “I want my company to earn a lot of money” or “I want to earn a million.” Well, if the goal is formulated in such a way there is very little probability that it will be reached.  Goal setting is not only about deciding what you want but also about identification of implementation means.  How will I earn this million?  How will my company earned a lot of money?  Do I have necessary tools and intellectual potential to implement these objectives?  These are very important questions which need to be answered.

Goals setting, KPI choice, counter actions

Goals setting, KPI choice, counter actions

Balanced scorecard is sometimes mistakenly viewed a substitution for strategy.  This is a very common myth.  Balanced scorecard is just a tool which may be useless unless it is properly applied.  So, why is goal setting is such an important thing?

If top management sets the wrong goals or goals that cannot be objectively achieved the entire scorecard will be built in an inappropriate way.  The wrong goals will cause selection of the wrong measures and key performance indicators.  Top management will have to react on changes in the internal and external environment and undertake counter measures.  As a result, the company will simply go in the wrong direction.

How customer satisfaction influences business performance

How customer satisfaction influences business performance

Goal setting in call centers and customer support services is very important as these are customer oriented services.  Earning a lot of money is a good goal, but at the same time company management should define the ways this money will be earned.  So, it would be good to include such goals as “the improvement of customer satisfaction”, “increasing the number of first resolution calls”, “increasing the number of sales attempts per employee” etc.

In course of time employees in company management will see cause and effect ties between these indicators and financial goals.  Customer satisfaction will result in growth of sales as satisfied customers are more likely to buy from the company.  The increased number of first resolution calls will improve customer loyalty, and existing customers are more likely to convert into regular customers.  Increasing the number of sales attempts per employee will increase sales volumes as a result to which the company benefits and employees will get increased bonuses.

Thus, as you can see, goal setting in implementation of balanced scorecard is not all about financial figures.

Read more on goal setting here

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