call centre establishment guideline

Call Centre Establishment Guideline of 44

NSW Department of Commerce Government Chief Information Office

Call Centre Establishment Guideline Issue No: 1.0 First Published: Dec 2000 Current Version: May 2002 Table of Contents 1. INTRODUCTION ................................................................................................3

2. STRATEGY AND OBJECTIVES ........................................................................4 2.1 Why do you need a Call Centre?........................................................................................ 4 2.2 How can a Call Centre enhance an agency's service? ...................................................... 4

2.2.1 ACHIEVING SPECIFIC OUTCOMES........................................................................5 2.3 Assessing the current situation ........................................................................................... 5

2.3.1 EXISTING CALL VOLUMES......................................................................................6 2.3.2 COMPLAINT AND CALL TRACKING........................................................................6 2.3.3 CURRENT RESOURCE ALLOCATION ....................................................................6 2.3.4 THE IMPORTANCE OF UNDERTAKING CUSTOMER RESEARCH.......................7

2.4 Range of alternatives to consider ....................................................................................... 7 2.4.1 HOTLINES..................................................................................................................7 2.4.2 SHARED ARRANGEMENTS.....................................................................................8 2.4.3 OUTSOURCING ........................................................................................................9 2.4.4 WHEN WOULD AN AGENCY USE AN OUTSOURCED BUREAU? ........................9 2.4.5 CONTRACT MANAGEMENT...................................................................................11

2.5 Overall implementation and management issues............................................................. 12 2.5.1 MANAGING LATENT DEMAND ..............................................................................12

3. PLANNING AND DEVELOPMENT ..................................................................14 3.1 Role of the Call Centre...................................................................................................... 14

3.1.1 VISION STATEMENT FOR THE CALL CENTRE....................................................15 3.2 Outsourcing vs Insourcing ................................................................................................ 15 3.3 Call-handling strategies ......................................................................................................... 15

3.3.1 CALL OBJECTIVES.................................................................................................15 3.3.2 INBOUND AND OUTBOUND...................................................................................16 3.3.3 ACCESS CONSIDERATIONS .................................................................................16

3.4 Service Level Objectives................................................................................................... 16 3.5 Centralisation vs Decentralisation..................................................................................... 17 3.6 Size considerations........................................................................................................... 17 3.7 Location (site) considerations ........................................................................................... 18 3.8 Financial considerations ................................................................................................... 20

3.8.1 ESTABLISHMENT COSTS......................................................................................20 3.8.2 OPERATING EXPENSES........................................................................................21

3.9 Review of current procedures ........................................................................................... 22 3.10 Key implementation stages .......................................................................................... 22

4. MAJOR ESTABLISHMENT FACTORS ...........................................................24 4.1 Telecommunications ......................................................................................................... 25 4.2 Information systems requirements.................................................................................... 28

4.2.1 HARDWARE ............................................................................................................28 4.2.2 SOFTWARE .............................................................................................................28

4.3 Other technology............................................................................................................... 29 4.4 Assessing new technology................................................................................................ 30 4.5 Backup sites and redundancy........................................................................................... 30 4.6 Facility planning ................................................................................................................ 31

4.6.1 CALL CENTRE LAYOUT .........................................................................................32


4.6.2 WORKSTATIONS ....................................................................................................33 4.6.3 ENVIRONMENTAL ISSUES ....................................................................................33 4.6.4 OFFICE EQUIPMENT..............................................................................................34 4.6.5 SECURITY ...............................................................................................................34

4.7 Staffing.......................................................................................................................... 34 4.7.1 CALCULATING STAFF NUMBERS.........................................................................35 4.7.2 HOURS OF OPERATION ........................................................................................36 4.7.3 ROSTERING ............................................................................................................36 4.7.4 STAFFING MIX ........................................................................................................36

4.8 Organisational structure.................................................................................................... 37 4.9 Recruitment and selection ................................................................................................ 38

4.9.1 OTHER EMPLOYMENT CONSIDERATIONS.........................................................40 4.9.2 POSITION DESCRIPTIONS ....................................................................................40 4.9.3 INITIAL TRAINING AND INDUCTION PROGRAM..................................................41 4.9.4 TRAINING PROGRAMS ..........................................................................................41 4.9.5 TRAINING STRATEGIES ........................................................................................41

4.10 Marketing and communication strategies ..................................................................... 41 APPENDIX 5 ABBREVIATIONS FOR COMMON CALL CENTRE TERMS................43


1. Introduction The rapid growth of the teleservices industry within Australia has largely been driven by the need for organisations to adopt more cost-effective strategies for delivering services. Call Centres, or more accurately Customer Contact Centres, now play an important role in the delivery of Government services. These guidelines outline the key criteria that a Government agency should use when considering the value of Call Centres as part of their service strategy. They also provide advice on the major aspects of establishing an internal Call Centre, in line with industry best practices. There are three main sections to this publication. Section 2 discusses the strategic decisions to be made on whether a Call Centre should be established, the objectives to be achieved and the range of alternatives that should be considered. It also covers some typical implementation and management issues experienced by Government agencies. Section 3 focuses on the major planning and development decisions that must be made by government agencies when choosing a Call Centre as part of their service delivery. It outlines the role of the Call Centre, call-handling strategies, service level objectives and financial and site considerations. It also provides a time-frame that covers the key stages in the establishment process. Critical factors that need to be considered when setting up an internal Call Centre are the focus of the fourth and final section of the guidelines. This covers practical matters that are vital to the successful establishment of a best practice Call Centre, such as telecommunication and information systems requirements, office facilities and design. Resource issues such as staffing, structure, recruiting, initial training and the development of integrated marketing and communication strategies are also covered. These Establishment Guidelines are complemented by Operational Guidelines for Government Call Centres, the second publication in this series. The Operational Guidelines focus on managing a best practice Call Centre.

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2. Strategy and Objectives When an agency is considering the establishment of a Call Centre as part of its overall service strategy, some fundamental decisions must be made before the process begins. It is important that the agency's current service strategy is assessed and the range of possible alternatives considered. This section concludes with a brief overview of some typical implementation and management issues that may occur when establishing a Call Centre. 2.1 Why do you need a Call Centre?

There are many reasons to consider establishing a Call Centre. Often a number of critical events provide the catalyst for re-evaluating existing service strategies. Some examples include:

• An increasing number of customer complaints, perhaps escalating to ministerial complaints, are received;

• Adverse publicity regarding the level of customer service; • A departmental focus on reducing costs while increasing service levels; • Increasing customer contact and call volumes throughout the agency, with a

growing number of agency staff required to take telephone calls; • The development of agency initiatives, such as specific hotlines and

community campaigns, leading to expected and unexpected increases in call volumes;

• Unpredictable crisis or emergency situations, such as contamination of drinking water, oil spills and hailstorms;

• Agency business with a large number of customer interactions; • Higher level agency staff providing basic customer information; • Recognition that the role of the agency’s switchboard is more than simply

connecting customers to various sections in the department and that existing facilities are not up to standard.

Agency-wide reviews may also conclude that the delivery of customer service needs to be improved. The process of identifying areas in need of improvement invariably focuses on how an agency can provide more efficient and cost-effective service. Adopting a Call Centre as part of the agency’s future service strategy is one alternative that should be considered.

2.2 How can a Call Centre enhance an agency's service?

A Call Centre can provide a number of important benefits. First, an increased focus on customer service is likely to lead to more efficient methods in handling significant levels of customer interactions. This, in turn, leads to a reduction in transaction costs where the majority of simple customer interactions are handled by dedicated, well-trained, frontline staff. The more senior and experienced staff can then be assigned to more complex tasks. Achieving further internal efficiencies may also allow the agency to initiate contacts


with clients and can streamline the handling of incoming calls to a central area, rather than being spread across various sections throughout the agency. By replacing over-the-counter transactions with telephone contacts, agency and customer costs can be reduced. As long as telephone contacts are handled efficiently, customers who do not have time for, or access to, face-to-face transactions will view the change favourably.

A variety of customer contact channels may also be utilised, ranging from facsimile to technology-based services, such as Interactive Voice Response (IVR) units and Web-based services via the Internet.

2.2.1 ACHIEVING SPECIFIC OUTCOMES

When considering the need for a Call Centre, an agency should begin by looking at the specific outcomes that are required. Existing New South Wales (NSW) Government agencies with Call Centres cite many reasons for using this strategy. The main ones are the need for uniformity, cost efficiencies, reducing complaints and improving customer service and access. Key reasons for establishing a Call Centre include the following:

• An increased or new business role; • A need to provide information and advice; • Public education; • Greater access to agency services including equity of access; • A desire to raise the agency's profile; • Consolidation / centralisation issues - concentration of expertise; • Achieving greater understanding of what the customer wants, through

feedback and comments; • Tracking of customer needs and determining the marketing direction of

an agency.

There are a number of improved customer service delivery outcomes that may be expected from an effective Call Centre. Call Centres improve customer access and choice while lowering the cost of service. They can provide consistent responses and improved quality of information, which leads to higher customer satisfaction. There is also less customer frustration as inquiries are directed to the proper area, reducing the common problem of caller run-around. Analysing calls to the Call Centre can also prevent problems by allowing early identification of customer service trouble spots and problem issues.

2.3 Assessing the current situation

Once a decision to establish a Call Centre to improve customer service levels is made, current telephone call handling strategies should be assessed to determine the extent of the improvements required.


2.3.1 EXISTING CALL VOLUMES Details of the current level of call volumes need to be collected. Most agencies can conduct a basic analysis of telephone traffic through their telecommunications provider at the telephone exchange level. The analysis will help to identify basic calling patterns and provide information on call frequency. As an example, call volumes of about 500 calls per day equate to 2,500 calls per week, 10,000 calls per month, and more than 100,000 calls per year.

Generally speaking, a minimum of five dedicated staff would be required to manage call volumes of this order, assuming 100 calls are handled per staff member per day. A method to calculate the required staff numbers, based on call volume, is outlined in 4.7 Staffing. An evaluation of the nature and complexity of the calls should also be made. By categorising the calls into the levels of expertise required, it may be possible to identify, for example, that the majority of calls (80 per cent) may be simple transactions that can be handled in less than three minutes and usually relate to 20 or 30 common questions.

2.3.2 COMPLAINT AND CALL TRACKING Most agencies have some type of system in place to track the number and types of complaints received. A review of the nature of complaints can help to identify the various issues associated with the current levels of service provided by the agency and the kinds of standard responses that are needed. Agencies with a Telephone Information Management System (TIMS) will also be able to track actual calls and time periods they were received, problems with unanswered calls and the rates of abandoned calls. Management Information Systems (MIS), such as those integrated with an Automatic Call Distributor (ACD) used by Call Centres, can provide detailed information on calling patterns to help identify particular trends.

2.3.3 CURRENT RESOURCE ALLOCATION At first glance, assessing the extent of resources currently allocated to telephone call handling may appear to be relatively straightforward. If, however, staff handling calls also have other administrative duties and / or face-to-face customer contact, it can be difficult to get an accurate count of the time staff spend on calls. This can result in difficulties in managing calls, particularly when staff absences occur. Agency switchboards and hotlines can provide an initial indication of the current resource allocation for call handling. Agency staff whose principal duties include telephone answering are another obvious source of information. Not so obvious are agency staff who are not assigned to handling calls but who are contacted directly on an ad hoc basis. They may be the first point of contact for various issues that may or may not be related to their particular area of expertise.


Despite the difficulty, determining the extent of resources currently assigned to handling telephone calls is important. The better the information, the more accurate will be the determination of the minimum resources necessary to handle ongoing customer telephone contacts.

2.3.4 THE IMPORTANCE OF UNDERTAKING CUSTOMER RESEARCH

The requirements and preferences of customers who contact an agency must be understood before deciding on which technology will be most useful and have the greatest acceptance by callers. While Government agencies can get some type of feedback from their customers on an informal basis, by studying complaints received, exit surveys and customer feedback, it may also be necessary to conduct targeted market research. Customer feedback collected within the previous 12 months would be the most useful, and should be focused on measuring customer satisfaction levels. If customer feedback is not readily available, then primary research should be undertaken. If the agency does not have the relevant expertise to conduct the research, the agency should engage an external market research firm, with knowledge of Call Centres. Following is a checklist of the key information needed to understand customer requirements:

Market Research Checklist • Customer satisfaction levels with the service provided; • Frequency of agency contact; • Preferred method of contact; • Services utilised; • Areas that require improvement.

Research should also include customers’ reactions to different technologies, such as the telephone, facsimile, Interactive Voice Recognition and the Internet. This will help to determine the most appropriate technology for use within the Call Centre.

2.4 Range of alternatives to consider

Agencies should consider all of the options before developing a service strategy using Call Centres. The major options include the use of hotlines, shared infrastructure arrangements, outsourcing, or establishing an internal Call Centre.

2.4.1 HOTLINES

Agencies with short-term needs can use hotlines for the management of new or changing community or business issues, crises management and event-predictive demand peaks. Election announcements or changes to legislation that will cause an increase in calls from the public are typical examples. The


Department of Education and Training's Back to School allowance campaign is an example of the effective use of a short-term hotline. Generally speaking, hotlines use numbers such as 1300 (cost of a local call) or 1800 (toll free). Currently, there are more than 250 different 1800 and 1300 numbers in use within the NSW Government. Hotlines do not require a sophisticated telephony or information systems infrastructure and can be rapidly deployed using existing agency staff, on a short-term basis. Agency staff need to be well trained and briefed on the overall purpose of the hotline and the likely issues that will arise. Agencies should develop a procedure to ensure a dedicated contact number can be provided quickly from the agency's telecommunications provider. Hotlines are generally classed as an unsophisticated customer contact strategy given their use of simple technology and the application of short-term resources. If the frequency of use of a hotline increases, along with the need for more dedicated resources, then a longer-term solution is required. Hotlines should not be a permanent, ongoing strategy. Where an ongoing requirement for such a service is identified, a Call Centre should be considered. Crises management is particularly important for natural disasters, such as hailstorms and oil pollution. Dealing with crises demands proper guidelines and procedures that allow for rapid expansion of call handling capabilities and provide immediate information to public inquiries. Temporary hotlines are probably the best choice here.

2.4.2 SHARED ARRANGEMENTS There are considerable costs involved in establishing a Call Centre, when all associated expenses are recognised. Before making that decision an agency should carefully consider an alternative option, such as shared arrangements. A shared Call Centre facility can become an efficient contact strategy for smaller agencies. Such a strategy provides significant savings on infrastructure, advanced technology and ongoing running costs. In a shared arrangement only the personnel and the information provided is specific to each agency, along with separate 1300 and 1800 numbers. One option is a shared arrangement with a Government agency that already has a Call Centre. This will require some kind of fee for service or a recovery of some of the other agency’s establishment costs. It would also be beneficial to establish a Service Level Agreement so that both parties are clear on the scope of the arrangement and each party’s responsibilities. The NSW Premier’s Department booklet Service Level Agreements: Guidelines for Public Sector Organisations (1999) has helpful information on this. Alternatively, sharing all of the costs of developing a Call Centre with another agency that wants to set one up will provide large savings, particularly in the


costs associated with the essential telephony and information systems technology platforms.

2.4.3 OUTSOURCING

Outsourcing is another option for agencies considering a Call Centre. There are two main types of outsourcing: full customer contact outsourcing or partial outsourcing, involving a specific task, function or campaign. The latter option is generally considered when organisations wish to focus on their core business or may already have a Call Centre that is operating at full capacity. Agencies considering outsourcing should do so within the context of the Service Competition Guidelines 1997. The guidelines outline ways to look for improvements within an agency as a first step, while considering value for money. One further document to study is the Employee Relations Aspects of Service Competition 2000.

2.4.4 WHEN WOULD AN AGENCY USE AN OUTSOURCED BUREAU? The outsourced Call Centre industry within Australia is growing rapidly as organisations are becoming more adept in offering a wider range of Call Centre services. There are many examples of Government organisations that have outsourced their Call Centre operations, including SOCOG and the State Transit Authority's Information Line. Outsourcing is ideal for relatively simple customer contact. If the agency has no Call Centre expertise, the benefits and expertise offered by an outsourced bureau can be considerable. Some of the major benefits include no capital costs or expensive investments in sophisticated technologies; no interruption to the agency’s core business and savings in cost-per-call because there are no establishment expenses. However, using an outsourced bureau for a Call Centre may not be appropriate in certain circumstances. Such circumstances would include the following:

• Problems with privacy and confidentiality issues; • The complexity of the information sought; • Interdependence of other sections or personnel; • Constant need to update information; • Internal agency systems and processes that are not easily transferable; • Proprietary database information maintained by the agency's

information technology (IT) section; • The service provided is more cost-effective if handled internally over the

long-term; • Difficulties integrating a number of agency functions through an

outsourced service.


Outsourcing may also result in problems of agency employees lacking motivation and a feeling of connection to agency customers when an external organisation handles customer contacts. The effectiveness of the service will be influenced by the strength of the relationship that is established between the agency and the bureau on an ongoing basis. Clear expectations and lines of communication are essential for the outsourced service to work effectively. Service Level Agreements will assist in this process.

Organisations also should be aware of the need for extensive support to the outsourced bureau in the form of adequate briefings, agency-specific training, constant updating and regular reporting and feedback. In order to assess the overall quality of an outsourced bureau, the following criteria should be considered, but the importance of each of these criteria will vary with each agency’s needs.

Assessment of Outsourced Bureaus • The ability to rapidly acquire the necessary level of product knowledge; • The fundamental human resources management philosophy an

environmental facilities provided; • The degree of responsiveness and flexibility in meeting agency needs; • The potential to integrate Call Centre strategies with other agency

functions; • Reporting mechanisms and performance management criteria; • Extent of confidentiality and security.

The decision to utilise an outsourced bureau for partial or complete customer contact services will depend on the relative expertise of the agency, the complexity of agency information and customer contact, privacy issues, internal procedures and the extent of database support and maintenance that currently exists. Testing a customer contact strategy before full-scale implementation is a recommended procedure. There is a greater likelihood of a successful trial using an outsourced bureau, given their expertise and use of sophisticated technology.

The choice of an outsourced bureau for customer contact may not be a permanent one. Some agencies have decided to establish an internal Call Centre after using an outsourced bureau because of their:

• Desire to retain greater control of customer contact; • Dissatisfaction with the basic service provided; • Need to develop specific expertise internally for long-term strategic

development; • Ability to provide more cost-effective service with existing resources.


2.4.5 CONTRACT MANAGEMENT

Effective contract management of external service suppliers is vital, whether the suppliers are an outsourced bureau or telephony and information systems vendors. There is more likely to be a problem if there is no department or individual within the agency responsible for the contract management. Prior to entering into any contractual arrangements, an agency should undertake a full risk analysis of all the factors associated with service continuity. The analysis should include a requirement for the service contractor to develop redundant systems and contingency plans in the event of loss of service. An unconditional financial undertaking in the form of a bank guarantee may be appropriate should the contractor be unable to provide the required service, for whatever reason. Non-performance issues must also be addressed from a legal perspective. Service contractors may also be required to pay compensation to the agency when unsatisfactory service performance occurs. The definitions of unsatisfactory service performance should be specified in the service contract. The contractor must also ensure that adequate insurance policies are in place concerning such issues as equipment, software, safety and welfare of staff, public liability and liquidation. In addition, an agency should specify mandatory service requirements that include the following:

Service Specification and Mandatory Service Requirements

• Call service performance standards; • Unsatisfactory service performance; • Unconditional financial undertaking; • Contractor service technology components; • Service components maintenance; • Service staffing; • Contingency plans; • Insurance; • System security; • Data issues and maintenance; • System backup; • Quality assurance; • Service management reporting.

The requirements of the NSW Government panel period contract, ITS 2304 Provision of Teleservices (Call Centres), outline specific conditions that may be relevant to the Call Centre service being provided. The contract may be adjusted to provide higher or lower requirements than the standard State contract, depending upon the level of service continuity required by the agency and the implications of loss of service.

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http://www.dpws.nsw.gov.au/


2.5 Overall implementation and management issues

Agencies considering the establishment of a Call Centre need to address a wide range of issues as part of their planning processes. These include:

• Adequate resources; • Senior management commitment and support; • Recruiting the right staff; • Accurately forecasting call volumes; • An appropriate technology infrastructure in place with vendor support; • Buying-in expertise; • Effectively managing latent demand.

The need for extensive planning and careful projections of the number of calls expected were key issues noted by a number of agencies. In particular, one agency cited the importance of ensuring that all major processes and procedures were in place within a Call Centre before the Centre became operational, rather than making refinements at a later stage. Associated with adequate resources was the need to obtain the understanding and commitment of senior management. Without such support or with only lukewarm support, it was extremely difficult to obtain sufficient additional resources to service further requirements. A number of agencies reported on the importance of obtaining the right staff. When selecting staff, recruiters should keep in mind the repetitive nature of the work and the associated stress. The importance of buying-in expertise with operational experience cannot be overstated. Experienced management and staff can understand and anticipate the problems the Call Centre will face.

Agencies also reported that having in place the right technology infrastructure was critical to achieving a balance between containing costs and having the ability to increase capacity to respond to latent demand. A well-designed database was also cited as a key component of an effective Call Centre.

2.5.1 MANAGING LATENT DEMAND

When a Call Centre is established, it is normal for call volumes to increase, as customers become more aware or familiar with the service available. Implementing communication strategies that increase awareness of the Call Centre, also leads to a corresponding increase in usage, often well beyond what was anticipated. Such demand can increase calls by as much as 30 to 50 per cent over existing volume. Unless additional resources are provided, the result will be decreased service levels and a rise in caller dissatisfaction.


There are a number of strategies that may be used to cope with the increases in call volumes. First, the communication strategies can be delayed until the Call Centre is fully operational and resourced with sufficient staff. Second, progressively moving agency telephone calls to the Call Centre in a staged approach can be adopted to ensure that existing call volumes are adequately managed with the resources available. Increasing the initial allocation of Customer Service Officers (CSOs) over and above the number needed to handle current call volumes will allow for latent demand as well as being useful for training and development purposes.

A good strategy to help meet the problem of increased call volumes is to employ temporary staff. Finally, the possibility of using an external service provider, such as an outsourced bureau, to manage overflow calls should be considered.


3. Planning and Development Once the decision has been made to implement a Call Centre, a business plan needs to be developed. The plan must clearly set out the customer contact strategy and relate it to the agency’s overall strategic direction. The plan must also establish a sound financial and organisational justification for the adoption of such as strategy. This includes describing the role of the Call Centre and its service level objectives and outlining size and site considerations, financial requirements, the extent of organisational process re-engineering and the time-frame for implementation. If internal expertise is not available, the decision to obtain outside assistance should be made at this stage. The selection of an appropriate person should be based upon the consultant’s experience in start-up operations, reputation in the market and value for money for services provided. The Teleservices Consortium Contract, NSW State Contract ITS 2304, managed by the NSW Department of Information Technology and Management, provides agencies with an opportunity to select consultants who have already been screened for appropriate expertise in this area. In addition, agencies should consult the Guidelines for the Engagement and Use of Consultants (1996) before engaging an external consultant for a Call Centre project. 3.1 Role of the Call Centre

The primary role adopted by the Call Centre will be a major influence on a number of critical decisions regarding its function, call-handling strategies, internal or external contact strategy and its configuration, namely, centralised or decentralised.

Key Decision Criteria • What will be the role of the Call Centre and where does it fit in the agency's

organisational structure? • Will an outside organisation be contracted to deliver the Call Centre strategy? • What will be the call-handling strategies adopted by the agency? • Will a centralised, decentralised or distributed Call Centre network be

established?

A Call Centre typically serves as a first point of contact for the majority of customer inquiries or service issues of a basic nature. This means that 80 per cent or more of Call Centre calls can be answered without the need for referral to other parts of the agency. More complex inquiries can also be managed, provided that adequate training and knowledge-based systems are developed. The primary goal of any Call Centre is the delivery of quality service to satisfied customers. The basis for delivering this quality service is to develop enhanced relationships with customers. Decisions must also be made on just where the Call Centre fits in to the overall organisational structure. It may be beneficial for the Call Centre to have direct reporting lines to an executive manager within the agency's line management


structure. This ensures that the Call Centre remains integral to the achievement of the agency’s service outcomes.

3.1.1 VISION STATEMENT FOR THE CALL CENTRE

Creating a vision statement for the Call Centre can have an impact on service level objectives, call-handling strategies and the way the Centre fits in to the organisation. The vision statement can articulate the basic purpose of the Call Centre and identify its objectives as part of the agency’s overall strategies and service delivery aims. This will help shape the long-term development of the Centre.

3.2 Outsourcing vs Insourcing

Once the need for a Call Centre is established, a detailed analysis of internal expertise and available resources should be made to decide whether the Centre should be based internally or externally. 2.4 Range of alternatives to consider. discusses the range of alternatives to consider for both internal and external solutions to call-handling problems.

3.3 Call-handling strategies

The specification of the way calls will be handled determines the overall resource requirements of the Call Centre in terms of required staff numbers, training and extent of organisational support. Key decision criteria associated with call-handling strategies include the overall call objectives, the functional operation of the Call Centre, and the extent of inbound / outbound call orientation needed.

3.3.1 CALL OBJECTIVES

The overall call-handling objective needs to be carefully determined. This directly influences the length of calls (call talk times), the staff numbers required to handle the calls, the experience levels of staff, and the overall information systems and telephony requirements. For instance, if the call handling objective is simply to provide a call referral service to more experienced staff within the agency, then the call talk times will be considerably reduced (under 90 seconds). This will mean shorter training and fewer staff are required. However, staff must also have the appropriate knowledge to switch calls through to the proper sections within the agency and to track the ultimate resolution or outcome of the calls. If the call-handling objective is to provide a 95 per cent call resolution, that is responding to the caller without referral to other sections, then a corresponding increase in call talk times, CSO knowledge, sophistication of information systems and intensive training will be necessary.


3.3.2 INBOUND AND OUTBOUND The Call Centre’s role needs to be clearly defined from the outset. There will be different resource requirements for Centres handling inbound calls only, outbound calls only or a combination. This has an effect on the staff skill mix required as well as the use of particular technology, such as predictive diallers (to filter engaged or no-answer callers) for outbound calling.

3.3.3 ACCESS CONSIDERATIONS

As well as clearly defining the role of the Call Centre, the agency's marketing channels or customer contact strategies need to be considered. This can range from straight telephone and facsimile services to electronic mail and Internet-based strategies. Service level objectives should be established for each type of access, in terms of response times and workflow procedures. This will allow performance to be measured for each access area. For instance, the Bank of Canada (1999) has established the following minimum standards for each contact channel:

• Telephone: 80 per cent of all calls answered within 20 seconds; • Text chat: 80 per cent in three minutes; • Facsimile: 75 per cent in four hours; • Voice mail: 75 per cent within four hours; • E-mail: 90 per cent in four hours.

In addition, the hours of operation of the Call Centre and after-hours service requirements need to be specified. Extended hours of operation will increase resource requirements in terms of shift length, supervision levels and staff numbers. If the Centre will be operating on a 24-hour basis, one alternative is to use an external service bureau for after-hours services.

3.4 Service Level Objectives

An important part of the business plan is to identify the likely impact of the introduction of the Call Centre, both internally within the agency, and externally on customer satisfaction levels. If the service level objective is set at industry standards, where 80 per cent of all calls are answered within 20 seconds, then much higher staffing numbers will be required than if the objective is set at 70 per cent of calls answered within 30 seconds. Too often, service level objectives are set without considering the appropriate level for the customer segments that are being served. For instance, many organisations use Interactive Voice Response (IVR) technology to answer all calls and then require customer to select particular numbers in order to direct their inquiry to the most appropriate person. Measurement of the call answering time should only begin once the call is held in queue and not when the IVR initially answers the call. Furthermore, many customers do not like using IVR technology when dealing with an organisation. It is essential that research be conducted on customers’ preferred


contact methods. The importance of such research is discussed in 2.3 Assessing the current situation. The analysis of the call traffic undertaken in the initial assessment should identify patterns in call volumes, throughout a typical day and week. For example, many Call Centres experience higher call volumes at the beginning of the week, with peaks during the 9 am to 11.30 am and 2.30 pm to 4.30 pm periods. During the peak call periods, part-time and casual staff can be used.

3.5 Centralisation vs Decentralisation

Another key decision in establishing a Call Centre is the determination of the overall configuration of the Call Centre in terms of centralisation, decentralisation or a distributed Call Centre network. Some important issues that relate to choosing a configuration are:

• Capital costs: costs generally will be higher with a decentralised and distributed configuration and lower in a centralised arrangement, since centralised operations allow significant economies of scale and capital utilisation.

• Culture change visibility: the introduction of a Call Centre will be much more visible in a centralised operation.

• Communication flows: internal communication will be much easier in a centralised Call Centre than in a decentralised option.

• Performance management: experience shows that it is much easier to maintain consistent service levels and performance standards in a centralised operation than in a decentralised one.

• Motivation and support dynamics: maintaining staff motivation and productivity is much easier in a centralised operation.

• Defined accountability: accountability is much more easily defined and maintained in a centralised operation. Lower levels of accountability are more common in decentralised operations.

• Staffing: a decentralised Call Centre may require the appointment of additional levels of team leaders.

• Expansion costs: expansion costs tend to be higher in a decentralised operation, because of the duplication of expansion costs. Often, the capacity to expand has not been factored into the overall planning process.

• Local response: a decentralised operation or distributed network can arguably respond more quickly to local regional issues than a centralised, universal operation.

• Backup site: the need for uninterrupted operation is an important consideration. If this is essential, multiple sites, such as those in decentralised or distributed Call Centre arrangements, may be the best configuration.

3.6 Size considerations

Planning the size of the Call Centre fundamentally begins with the determination of


the volume of calls, average talk time and after-call work processing time involved. If an average talk time is based on three minutes per call, then 15 calls will take one hour with time added for after-call processing. That breaks down to 45 minutes call time and 15 minutes after-call work time. On an eight-hour shift there would be six hours of actual work time (assuming two hours for breaks and other downtime), for a total of 90 calls per day for a Customer Service Officer (CSO). If 900 calls per day are received, then 10 staff will be required. A method to calculate the required number of staff is detailed in 4.7 Staffing. As the number of staff increases at the Call Centre, a corresponding increase in office space and facilities, telecommunications and information systems equipment and supervision will be required. For example, in a 20-seat Call Centre only one to two team leaders will be required, but three to four team leaders are needed in a larger 50-seat Call Centre. In a 100-plus seat Call Centre at least seven to eight team leaders are necessary. The number of team leaders required also depends on the team sizes adopted by the Call Centre.

Once the Call Centre expands beyond 50 seats, additional support personnel such as a workforce analyst, staff development manager and quality assurance manager will also be required, with these functional roles becoming an integral part of workforce management and development. Another consideration in determining the initial size of a Call Centre is the need to factor in latent call demand and future growth. Too often Call Centres are established without adequate attention to the possibility of larger-than-expected initial call demand and with little capacity to expand as additional responsibilities are taken on board. For a discussion on managing latent demand see 2.5 Overall implementation and management issues.

3.7 Location (site) considerations

Deciding on the actual location of the Call Centre is a major part of the overall planning and development process. Governments actively encourage the siting of Call Centres in regional areas, instead of prime city locations. In addition, local councils often offer attractive incentives to encourage organisations to locate in their areas. The decision on locating the Call Centre is not a simple one. Often, the initial site advantages and location incentives are not sufficient to overcome another important factor, the availability of an adequate staffing pool. As an example, Queensland Transport located a Call Centre in Emerald but now has to deal with a staff turnover in excess of 30 per cent, because of a transient workforce in this mining area. There are a number of other important factors to be considered when choosing a location. These are identified in the following table


Major Site Considerations • Occupancy costs of the Central Business District (CBD) vs other site locations; • Labour pool availability - profiles of area demographics, unemployment rates; • Access to public transport, parking; • Telecommunications infrastructure; • Building requirements - universal power supply (UPS), cabling, security, ease

of access, building suitability, extent of required modifications; • Proximity to suppliers.

Occupancy costs are a major part of the ongoing operational costs associated with a Call Centre and tend to be higher in CBD locations. This situation is likely to worsen as the demand for inner city locations continues to escalate. Outlying areas and regional locations, such as Newcastle and Wollongong, may be attractive alternatives. Ultimately, given recent advances in technology, it does not matter where the Call Centre is located, provided an adequate labour supply is available. Assessing labour availability in the various locations under consideration is an important part of the overall site evaluation process. A demographic profile of the area should be obtained, including unemployment rates and the location of various tertiary institutions. Universities and TAFE colleges represent an excellent source of part-time and casual staff. Transport is an important issue to staff and information on the availability of transport services will be required. Security issues, such as the site’s proximity to reliable public transport and busy streets, on-site car parking, exterior lighting and well-lit and secure exits need to be considered. The question of car parking should also be addressed at the time of site selection as staff will want access to adequate staff parking facilities, particularly if they work extended hours. Convenience and safety issues take on added significance if the Call Centre intends to operate outside of the traditional five days per week, 9 am to 5 pm work patterns. Instead of selecting a remote industrial site, a site near shops will make attracting staff easier. If the Call Centre will be serving interstate customers, Australia's different time zones and changes to and from daylight savings need to be factored into the hours of operation. An adequate telecommunications infrastructure that can cater for growth is also required. Not all telephone exchanges in outlying regional areas are fully equipped to handle the large volume of calls that might occur. Building considerations include the need for basic infrastructure requirements, such as access to a universal power supply, telecommunications, and IT (information technology) and electricity cabling. Other considerations include the extent of building modifications required and whether the Call Centre will be located on one level or multiple levels. Ideally, a one-level structure is more suitable as it encourages better communication and team development. The building selected should also allow room for expansion as responsibilities increase. Adequate space requirements are an essential component of growth


strategies. The proposed site will also have to meet all of the normal legislative requirements, such as the availability of fire equipment, first aid areas and access and support facilities for physically challenged staff. The location’s proximity to suppliers is important in both the start up phase and during ongoing operational maintenance. Many suppliers charge significant additional travel expenses when the Call Centre is located in a remote area. The availability of suppliers to quickly restore telecommunications and information systems to prevent business interruptions is of paramount importance to efficient service delivery.

3.8 Financial considerations

It is clear that the decision to establish a purpose-built internal Call Centre can be an expensive exercise, and one that should not be undertaken without adequate planning and development. It is vital that adequate resources are allocated to the Call Centre to enable agreed service level objectives and call volumes to be effectively met. A critical consideration is the extent of support and understanding from senior management. Without their full support and commitment from the original planning phase, there is a danger that ongoing resource allocation may not be available.

3.8.1 ESTABLISHMENT COSTS

Among the fixed costs incurred in the establishment of a Call Centre are purchases of hardware and software. Labour and telecommunications are the major operational costs, but there are also ongoing costs for items such as office supplies and stationery. One option to consider that will cut capital costs is to lease equipment, rather than purchase it. Leasing provides advantages in areas other than costs. It can make affordable a higher level of required technology and can provide the latest models in telephony and communications equipment, important tools in a mission-critical Call Centre. The following table provides a checklist of items that should be included in the initial Call Centre establishment budget. A more detailed establishment costs checklist can be found at Appendix 1.

Checklist for Call Centre Establishment Costs 1. Capital expenditure: building - purchase or lease, fit out; telecommunications – telephone system, fax, ACD, IVR,

handsets, headsets; information systems – hardware, software, systems development,

backup systems. 2. Other site expenditure: architect or facility planner;


agents’ commission. 3. Recruitment and training 4. Other expenditure: project management and consultancy; legal fees; redundancy costs (if agency staff are displaced); job search and retraining (if agency staff are displaced). Total Establishment Expenditure:

3.8.2 OPERATING EXPENSES

One of the most significant operating expenses in a Call Centre is the cost of labour, which is estimated to be 65 per cent of a Call Centre's overall budget. One method of calculating operational costs for a Call Centre is based on an industry per seat allocation of $75,000. However, the calculation of operational costs by this method will prove to be less accurate than a carefully itemised establishment and operational budget. Remuneration levels for Call Centre staff are currently around $32,000 to $39,000. Salaries, plus on-costs of 30 per cent, represent a major component of the operational costs. For team leaders, the salary levels range from $38,000 to $50,000, plus on-costs. The annual operating costs should be calculated in the initial planning process to ensure that an ongoing commitment to this level of expenditure is made.

Checklist for Call Centre Operating Costs

1. Facility costs: electricity; maintenance.

2. Telecommunications: maintenance and development.

3. Information systems: maintenance and development.

4. Recruitment and training – ongoing; 5. Salaries, plus on-costs; 6. Advertising and communication; 7. Miscellaneous, such as consultancy fees.

Total operating expenditure:

Treasury Planning Call Centres invariably involve large expenditures, particularly in recurrent spending. A strong business case must be made to both agency senior management and Treasury to justify the expenditure. The agency relationship


manager within Treasury can very helpful. Specific advice relevant to the process and information requirements can only be obtained from this source. The Treasury Web site (http://www.treasury.nsw.gov.au) contains many useful guidelines and policy documents. Some of the more useful that pertain to the planning of Call Centres are:

• Guidelines for Financial Appraisal; • Guidelines for Economic Appraisal; • Guidelines for Private Sector Participation in the Provision of Public

Infrastructure. 3.9 Review of current procedures

The importance of streamlining key procedures is vital. Process mapping, which involves flow-charting and documenting all processes and procedures within a Call Centre, should take place. The processes and procedures are then subsequently reviewed in order to assess areas that require further streamlining. The revised processes and procedures also form an integral part of the training and development plan. As part of the overall establishment process, actual workflows – how work will flow to and from the Call Centre – need to be determined. Clear and specific operating procedures also need to be established to support these workflow procedures. Inadequate documentation of processes and procedures, or the extensive use of manual procedures will reduce the benefits derived from the establishment of a Call Centre.

3.10 Key implementation stages

Once the initial decision is made to establish an internal Call Centre and the role and function of the Centre is identified, specific decisions on the size, configuration, location, and financial requirements will be needed to justify the business case.

Key Process Elements in Establishing a Call Centre

• Justifying the business case; • Agency-wide involvement; • Managing expectations; • Launching the project; • Implementing the Call Centre – going live.

Part of justifying the business case involves obtaining both executive and budget approval. This includes an overall strategic analysis that specifies time-frames and a comprehensive description of operations requirements and both capital and operating budgets. In the business case, agency objectives must be translated into specific Call Centre goals.

http://www.treasury.nsw.gov.au/


Obtaining agency-wide involvement is critical to the long-term success of the Call Centre. Communicating the expected benefits and outcomes is an important part of gaining support. Key stakeholders should be identified and involved early in the project, and asked to participate in all aspects of the planning process. Regular stakeholders meetings should be held throughout the planning and establishment process.

Managing expectations is another a key aspect. It is important to decide who will be affected by the establishment of the Call Centre, who should be involved in the planning and what are the cultural expectations of the agency. Part of the process of managing expectations is to establish a communications strategy that reaches all of these parties and includes executive briefings. Once executive and budget approval has been obtained, the next step in launching the project involves identifying members of the project team. The project team needs to be cross-functional to ensure that key stakeholder involvement occurs. A Call Centre manager should be recruited at an early stage to ensure his / her input into the establishment and operational issues. Launching the Call Centre project will require a detailed task analysis (outlined in Section 3), a facility project plan and a time-frame for each key stage of the project. All of the Call Centre planning comes to fruition at the going-live stage of the project. Before going-live it is vital that all systems are tested to show they are fully operational and that processes and procedures are working as originally planned.


4. Major Establishment Factors This section provides in-depth detail on the critical factors associated with establishing an internal Call Centre. It addresses all major factors, including telecommunication and information systems, facilities management, resourcing, staffing and integrated marketing and communication strategies. The detailed task analysis listed below provides a checklist of the key elements related to the establishment of a Call Centre.

Detailed Task Analysis

• Business model: business case analysis; business performance and expectations.

• Processes: performance reporting; processes and procedures; key performance indicators (KPIs); forecasting / scheduling; quality assurance.

• IT Systems and telephony: PABX / ACD; call monitoring; local area network (LAN); data, desktop support; server platform; mainframe; software; security.

• Facilities planning: site selection; detailed facilities design – requirements / specifications; viable location analysis; fit out and construction; space planning.

• Organisational design: span criteria – number of levels and functions − Support roles: infrastructure – important technology and telecommunications

(IT&T), facilites management, financial analysis; − General: human resource manager, staff development and training manager,

administration / office support manager; − Operations: quality assurance manager, resource manager, forecasting /

scheduling and reporting analyst.

• Human resources management: critical competencies and job standards; job descriptions; roles; accountabilities;


pay and rewards; human resource policies.

• People: skills; knowledge and competencies; recruitment; training.

• Business recovery:viable operating options to maintain business operations in the event of business interruptions and unplanned disasters.

Timing issues The timetable for the effective implementation of a new Call Centre depends on a number of key factors, both internal and external. With careful project management and allowance for supply problems, realistic deadlines are achievable. However, if there is a large degree of customisation in the plans or building information systems, then the implementation process will take longer. The telecommunications and information systems, both hardware and software, make up the engine of the Call Centre. Adequate time should be allowed to assess all requirements. In particular, the information systems hardware installation process will need to be coordinated with the telecommunications installation and any building modifications. Developing a Facility Plan Facility planning for a 50-seat Call Centre can take up to 12 months to complete, from deciding on the size to moving-in. The Gantt Chart at Appendix 2 illustrates key milestones for a typical facility establishment plan. Obtaining the appropriate technology for a Call Centre can result in significant cost savings and efficiencies from both an organisational and customer perspective. An overall technology platform for a Call Centre would typically include a PABX or exchange-based switch, an ACD-MIS, rostering software, a customer database and an Internet site. 4.1 Telecommunications

It is important to put the right telecommunication systems in place from the beginning, as mistakes are expensive and difficult to rectify. The right technology for a Call Centre is very difficult to determine as understanding technology requires a comprehension of the terminology that is being used. Compounding the problem is the rapid advances in technology and its deployment. An agency should allow sufficient time to develop an effective telecommunications plan. The initial audit of the existing telephony infrastructure and call analysis will provide the basis for deciding future telecommunication requirements for the Call Centre. Some strategic decisions that assist with telephony planning are listed in the following table:


Strategic Telephony Decision Criteria

• Whether to lease or buy? • Will the telephone system be separate for the Call Centre or integrated with the

agency's existing system? • Will the telephone exchange be able to accommodate the call traffic expected? • Who will be the preferred carrier? • Will FREECALL 1800 or 13 / 1300 numbers be used? • To what extent will the telephony and information systems be integrated?

If major telephony hardware or software installation is needed, adequate lead-time for delivery and installation should be factored into the telecommunications plan. In addition, a Call Centre site will need access to telephone exchanges and fibre optic cables. Disaster recovery plans should also accommodate dual telephone access.

Telecommunications Options There is a wide range of telecommunications equipment available, from the basic to very sophisticated exchange-based technology. A basic option is to adopt a single contact number. A common service is FREECALL 1800, a free telephone service to callers. Other special number services allow customers to call in for the price of a local call, such as the 10-digit 1300 number. There is also the six-digit 13 number, a service that can identify the source of a call and direct it to a single answering location. The 13 number is also available at the cost of a local call, but the annual rental to the agency will be significantly higher than for a 1300 number. A basic telephone system for a Call Centre begins with a key telephone system, where the telephones have multiple buttons and allow the user to select lines for outgoing or incoming calls directly. A PABX (Private Automatic Branch eXchange) is specialised equipment that acts as an extension of the public network. It allows different telephones within an organisation to have their own number (or extension) where calls can be made or transferred internally. Outside callers can dial a specific extension to reach a person or section. PABXs are normally purchased or leased from associated vendors. Automatic Call Distribution (ACD) systems provide flexibility in distributing and managing inbound calls by automatically keeping callers on hold until the next CSO is available. An ACD can also prioritise calls in a queue. Automatic Call Distribution-Management Information Systems (ACD-MIS) give comprehensive management information in real-time, as well as historical information, for effective call management analysis and reporting. It provides reports on 15-minute and 30-minute call traffic patterns and individual groups or CSOs. Overall Call Centre performance can be reported and aggregated on a daily, weekly, monthly and year-to-date basis.


Centrex is a sophisticated network service with advanced call-handling capabilities that replaces the need for a PABX, as the infrastructure is provided within the exchange. ACD capabilities and MIS reporting are available, direct from the exchanges. However, Centrex does not offer the functionality and full range of reporting that a standard PABX / ACD system offers. IVRs are increasingly being used by inbound Call Centres to manage call volumes more efficiently. Calls are screened by offering callers a choice of options that can be selected by pressing a button on their telephone handset. The IVR then directs the call to the CSO responsible for that area.. This is commonly known as skill-based routing. Agencies need to be aware, however, of a consumer backlash against IVRs. The often extensive menu options that customers are required to navigate in order to get to a real live person can be very frustrating. The fewer the menu options on offer, the better. The installation of a computer-assisted telephone contact system can provide simple information for customers if they key in an account number or a personal identification number (PIN). They can receive information on areas such as account balances or listen to prerecorded announcements. Computer Telephone Integration (CTI) provides an intelligent link between the telephone system and the information system to put customer information on the screen as the call arrives, using Calling Line Identification (CLI). Advanced CTI can be an extremely expensive option and is typically only used in large Call Centres. It should be noted that handsets are not necessary if the telephone and computer systems are integrated. Predictive diallers are useful if a large number of outbound calls are made. The equipment dials numbers from a master list and can filter engaged and no-answer calls. On receiving a voice answer from a customer, the system switches the call through to the first available CSO. Another technological enhancement for a Call Centre is the use of automatic call recording equipment. This type of technology provides the Call Centre with a digital transcript of telephone conversations that can be used for dispute management and for CSO feedback on call quality. If automatic call recording equipment is being used, an organisation must inform the customer that their call may be monitored. Customers then have the right to ask for the call not to be monitored. The 1997 Commonwealth Telecommunications Act makes call monitoring legal, but with identifying tones in place to inform callers. Headsets play a key role in creating a quieter environment. This facilitates the speed of telephone answering time and computer data entry. Headsets need to be lightweight but sturdy enough to handle the rigours of everyday use. A number of different types of headsets should be trialled to find out which are most suitable for the CSOs. Given potential noise problems, the headsets with built-in noise reduction facilities are a good option.


4.2 Information systems requirements

One of the key building blocks of a Call Centre is the information systems that will be installed. The suitability of the existing information system will need to be assessed. A consultant and / or systems integrator should be consulted to help choose the most appropriate technology for the agency's needs.

4.2.1 HARDWARE Hardware, the physical equipment used to operate the software, includes the screens, processing unit or drive, CD-reader, keyboard and printer. There are a number of different hardware figurations, including stand-alone personal computers (PCs), networked PCs that are part of a local area network (LAN) linked to a central database and management control system, and an existing mainframe computer. If an existing mainframe computer is used, check that its processing capacity will give fast response times (instant access to information). It may be possible to have a separate processor dedicated to the Call Centre, but on-line to the mainframe’s client and transactional database.

4.2.2 SOFTWARE One of the most important considerations in choosing software is the question of compatibility with the hardware that will be used. Customer contact software should provide CSOs with relevant customer information so that they can handle inquiries properly. The system should have the ability to manage new callers as well as regular customers, and allow for easy and flexible scripting. It should also incorporate automatic tracking of call outcomes and have a calendar and diary that records date and time automatically when entries are made and can schedule follow-up calls as appropriate. Designing in-house systems can be difficult and time-consuming, but there are already sophisticated Customer Relationship Management (CRM) programs available that can be customised for an individual organisation's needs. In general, the criteria for selecting the right type of software should be based on the following:

• Relationship management capabilities; • Compatibility with existing hardware; • Ability to meet required response times (processing speed); • User friendly; • Call management and scheduling facilities; • Input / output options to link with other systems; • Local support when things go wrong, training and ongoing

maintenance; • Compatibility with other systems, eg, windows-based, Microsoft.


A corporate database interface is used when a database already exists. By integrating the key fields from the database with the customer contact software, CSOs can view appropriate screen information. The interface allows data to be transferred between the corporate mainframe and the customer contact system. There are also software enhancements for existing information systems that can help organisations achieve significant efficiencies. Using fewer keystrokes and developing a simpler process for inquiries and / or amendments are two such examples. A well-maintained customer database is critical for managing ongoing customer relationships efficiently. A relational database links data from all parts of the organisation and allows the development of a useable database. A customer contact management system collects, stores, organises and updates information so that it can be easily retrieved and used within the Call Centre. Customer information, transactional information and call contact information can all contribute to identifying trends and customer segments for the development of marketing and communication strategies.

4.3 Other technology

Reader boards are commonly used within Call Centres to provide real-time information to both management and CSOs on a range of material. These include number of calls in queue, average wait times, average speed of information and overall daily call volume. In addition, reader boards can be used to provide information to CSOs, such as planned events, visitors arriving or the CSO of the month. The electronic scanning of documents, such as faxes, reduces the need for office paper and provides the ability to access information quickly when required. CSOs should also have ability to fax or e-mail information to customers from their computers, in order to streamline the entire process and provide an efficient audit trail. The development of an easy reference knowledge-based system of commonly asked questions is also recommended. The knowledge-based system could include the nearest regional office and its hours of operation, geographical information and policies and procedures. This system may stand-alone or be integrated into the current information systems platform. Workforce Management Systems One of the most difficult challenges within a Call Centre is to achieve efficient staffing levels. Specialised software tools are available to predict the staffing levels required, based on historical call traffic volumes together with key service parameters. A workforce management system can be installed to work in conjunction with the ACD, or as a stand-alone system, to forecast call volume and associated staffing requirements.


The ultimate goal of workforce management is to determine the optimum ratio of staff to call volumes and service level standards. The use of rostering software can provide significant staffing efficiencies.

4.4 Assessing new technology

Requesting information from a variety of suppliers will provide a good indication of the technology available in the marketplace. Once a decision is made on the most suitable technology, a tender process will enable the agency to acquire it at a competitive price. Another important part of the establishment process is the effective contract management of technology suppliers. 2.4 Range of alternatives to consider provides some guidelines on how to effectively manage external organisations. Clear performance requirements and time-frames must be specified so that the go-live date for the Call Centre can be met. Sufficient time to thoroughly test the systems prior to becoming fully operational is vital. Timeliness and risks involved Given the rapid changes in both information systems and telephony, agencies need to understand the risks and costs involved in keeping abreast of new advances. In general, it is a good idea not to be the first, only or last user of a technology. Most agencies will find themselves choosing proven technology. This equipment is widely used, competitively priced and has proved to be reliable. This type of technology can generally be installed within three months. When establishing a new Call Centre, using proven technology is the solution with fewest risks and least time taken for effective installation and operation. More sophisticated state-of-the-art technology is available with advanced features, but it is more expensive, takes longer to install and there is limited backup support it is needed.

4.5 Backup sites and redundancy

A primary requirement of business continuity planning is providing redundancy in both the telephone and information systems. The Operational Guidelines for Government Call Centres includes more detail on the way an organisation can provide a continuous service. However, in the establishment process, plans should be made to establish a backup site in the event that the primary Call Centre shuts down. Agencies with multiple Call Centre locations will not have this problem. The backup site can be often used as a full-scale training facility or after-hours service facility.




4.6 Facility planning A primary goal in the design of a Call Centre facility is to maximise staff performance. Effective Call Centre design can be the difference between a comfortable, teamwork-oriented, low stress environment and one that is confused, cramped and likely to cause high staff turnover. The work environment has a direct impact on staff satisfaction and job performance. The Call Centre environment should take into consideration ergonomic design, acoustics, lighting levels, air quality, and personal space and privacy. Well-designed furniture will minimise repetitive strain injury and allow staff to work in comfortable surroundings. Consideration of occupational health and safety issues is a key component in the design of an effective workplace. Proper facility planning will have a major impact on the operational performance of the Call Centre. The following table outlines the key project steps involved in facility planning.

Facility Plan Elements

Key project steps

1. Sizing • Estimate call volumes; • Determine staffing and position levels; • Estimate furniture and space required.

2. Benchmarking • Identify similar Call Centres to visit; • Site visits to three or four Call Centres; • Incorporate information gained into design.

3. Site selection • Determine selection criteria; • Site visits to buildings in top two or three locations; • Select top two sites - begin lease negotiations.

4. Site design • Incorporate furniture and room requirements; • Infrastructure: cabling, conduits and rooms; • Select preliminary finishes, lighting, décor; • Validate space required.

5. Agency approval • Lease signed, approve final floor plan; • Approve all furniture; • Approve infrastructure design.

6. Construction documentation

• Permits; • Lighting and plumbing plans; • Furniture and electrical plans.

7. Bidding / contracting

• Approve final finishes, lighting, décor; • Order furniture; • All infrastructure hardware / software ordered; • General contractor hired.

8. Actual construction • Demolition / construction: walls; • Infrastructure: rooms, cabling, electrical, plumbing.

9. Voice / data infrastructure

• Network conduits and cabling; • Infrastructure hardware / software installed;


installation • All vertical and horizontal cabling complete. 10. Furniture installation

• Modular furniture base installed; • Infrastructure cabling installed within furniture; • All communications outlets wired & tested.

11. Finish construction

• Lighting, ceiling, security installed; • Finishes - painting and décor; • Office furniture installed.

12. Site preparation and move-in

• Supporting vendor contracts installed; • Transition of facilities management; • Move-in.

Developing a facility plan is an important part of the business development and planning process. Such a plan will help ensure that the implementation process is subject to fewer problems and is move likely to achieve the expected time-frames. As facility planning is a specialist role, a project manager or specialist facility planner should be appointed to handle these responsibilities.

4.6.1 CALL CENTRE LAYOUT Planning the layout of the Call Centre is an important step in providing the right environment for maximum staff performance. The plans should be made with a view to future expansion as the volume of calls may be underestimated and the Call Centre may take on additional responsibilities at a later date.

Checklist for Call Centre Layout • Workstations; • Interview / meeting rooms; • Coaching and training rooms; • Lunch room and kitchen facilities; • Staff breakout room (relaxation room); • Computer and telephony room; • Lockers and stationery / storage areas; • Toilets.

There are many different layouts to consider. Work space should be allocated so that it meets the demands for both cost-effective communication and reasonable levels of privacy. Call Centres with open plan layouts and with a modular format provide flexibility for future growth, as well as allowing a team-based environment. Grouping staff in teams will help maintain team development and motivation. Team leaders should be grouped with their teams so that they can quickly identify and resolve problems. Team leaders should also be allocated additional work space for meetings and tracking work performance. Cabling for telephones and computers also needs to be planned carefully. Cables must be easily accessible but also well concealed. Sufficient space


should be left for wires and cables that may be added later. Adequate space should also be assigned for a telecommunications and computer equipment room.

4.6.2 WORKSTATIONS

An appropriate ergonomic workstation design is a critical factor in staff productivity. A good design for the placement of workstations will prevent the staff from feeling like battery hens. Chairs should be adjustable to provide both comfort and good back support. Casters on the chairs will give free movement around the workstation. CSOs spend a lot of time sitting, so the importance of quality chairs cannot be overestimated. The size of the workstation should be large enough to accommodate computers, telephones, manuals and shelf space. Adjustable desk heights are preferable, but they are also expensive. The workstation partition should be just high enough to allow for privacy and to retain the workstation's acoustic advantages, but low enough to ensure staff members don’t feel isolated from the rest of the team. The Australian Standard for Workstations, AS/NZS 44.43:1997, specifies the minimum depths and sizes of desk or workstation bench tops. Correct application of the workstation standards will not only help protect Call Centres from occupational health and safety problems but will improve staff comfort and lead to increased productivity. Some workstation configurations are included at Appendix 3 to illustrate typical arrangements in Call Centres.

4.6.3 ENVIRONMENTAL ISSUES

Environmental issues also need to be considered in the overall design of the Call Centre facility. These include lighting, ventilation, noise levels, recreational space, kitchens, lunchrooms and staff parking. Lighting: natural and diffused lighting should be used where possible within the Call Centre to minimise glare, reflections and shadows. One option is installing vertical blinds for daylight control and using glare guards to prevent problems with glare from artificial lighting. The standard lighting in most offices is not suitable for a screen-based Call Centre environment. Anti-glare options include fluorescent lights with triphosphor tubes and up-lights on the top of workstations. Ventilation: the Call Centre should have its own air conditioning temperature controls and provide comfortable and consistent temperature and humidity. If there are extended shifts, the air conditioning in the building must be programmed to accommodate these requirements.


Noise: background noise can be stimulating within a Call Centre environment, but excessive noise levels can cause problems with communication. A relatively noise-free environment is desired. Soft furnishings, such as carpets, partitions, and window blinds will help to absorb sound and minimise noise levels. Headsets with built-in noise reduction facilities will also help. Recreational Space: given the repetitive nature of telephone call handling and the desk-bound nature of the job, it is important that CSO’s have a recreation area separate from the workplace. Here they can get away from the phones for short and longer breaks. Special breakout or quiet rooms with comfortable chairs are ideal for this activity. Kitchen and Lunchrooms: a dedicated kitchen / lunchroom area for staff will help minimise food consumption at workstations and encourages staff to have a proper break away from the phones. Other rooms: where possible, fit out of the Call Centre should include training rooms, interview rooms and a utility area. A dedicated area for specialist coaching and training sessions and a confidential meeting room for discipline or other issues are also worthwhile inclusions.

4.6.4 OFFICE EQUIPMENT Among the resources required for the efficient day-to-day running of the Call Centre are office equipment such as fax machines, photocopiers and printers, whiteboards, training room furniture and equipment, TV / VCR, overhead projector and shelves for stationery and other office items. Place noisy and distracting support equipment away from the Call Centre.

4.6.5 SECURITY Adequate provision should be made for security in the Call Centre. This includes restricted access to customer records and the database, confidential material, and personnel files. Secure areas for files, together with a system of passwords to restrict access to information, are two methods that can be used. The telecommunications and information systems room is also likely to be a restricted area with access codes required. In addition, access codes are likely to be required for overall access to the Call Centre facility. The Call Centre must also have adequate protection against fire, water and other damage. Proper backup facilities, with redundant telephone and information systems, will also be required. A secure carpark will be needed for staff safety, especially if the Call Centre operates outside normal hours. An escorted security service is another option.

4.7 Staffing


Appropriate staffing is one of the most critical aspects in establishing a Call Centre. Ensuring that correct numbers of staff are recruited and deciding on what levels they will be hired are two key decisions in effective human resource management. Elements of a typical staffing plan include:

Key Staffing Plan Elements • Determine critical competencies and job standards; • Develop position descriptions and person specifications; • Set a process for staff selection; • Decide on internal or external management of the process; • Calculate number of staff initially required; • Implement recruitment and selection process; • Design the initial induction training program.

4.7.1 CALCULATING STAFF NUMBERS The number of calls and their duration are the two important factors in determining the staff numbers required in a Call Centre. Estimating call volumes is more difficult in an inbound Call Centre than in an outbound Call Centre. The basic process for estimating staff numbers is as follows:

• Step 1 - Determine the number of calls to be made / received; • Step 2 - Determine the average talk time for each call and after-call

work time; • Step 3 - Determine the actual productive time of a CSO.

These are the definitions used as the basis for the calculations:

• Call time is the actual call time spent on the telephone; • After-call work time is the time spent on the paperwork or data

processing associated with that call; • An average CSO’s day is generally considered to be a six-hour shift or

360 minutes; • Average contact time = call time + after-call work time; • Average number of calls per day = 360 ÷ average contact time.

Staff Number Requirements Calculations Formula

minutes per CSO day = 360 minutes A average call length 2 minutes (120s) + average after-call work time 1.5 minutes (90s) = average contact time 3.5 minutes (210s) B average number of calls per CSO A ÷ B = 360 ÷ 3.5 = 103 calls C total number of calls per day 1500 D STAFF REQUIRED = D ÷ C = 1500 ÷ 103 calls =

14.6 staff or 15 staff


When calculating staff, the number of calls handled per CSO is directly linked to the service level objectives and call quality outcomes. In other words, a focus on call quality outcomes may mean fewer calls handled per CSO. A further discussion on key performance indicators and the focus on quality versus quantity can be found in the Operational Guidelines.

4.7.2 HOURS OF OPERATION An analysis of calling patterns early in the morning and late in the afternoon will identify call trends (see 2.3 Assessing the current situation). This information should be used to plan optimum operational hours of the Call Centre. A decision to extend the operation of a Call Centre beyond a typical day (9 am-5 pm) will have significant implications in terms of the length of shifts required, levels of supervision and the staff numbers required (see 3.3 Call-handling strategies).

4.7.3 ROSTERING The efficient rostering of staff to manage call volumes effectively is a vital role within Call Centres. Overstaffing can lead to increased call costs while understaffing leads to poor service levels, such as delays in answering calls and increased abandonment rates. If the Call Centre is constantly understaffed, there is a high risk of staff burnout. This can have a significant effect on the overall quality of service delivery and customer satisfaction levels. The result of understaffing may lead to customers getting an engaged signal or being forced to wait on hold before having their call answered. In order to minimise staffing costs, staff need to be rostered according to call peaks and troughs. If the Call Centre has more than 25 seats, a workforce analyst may be needed to optimise resource allocation and associated costs. Decisions also have to be made on the length of a shift. Seven-hour shifts in a Call Centre may not be ideal given the repetitive nature of the work. Based on call patterns, the use of four or five hour shifts to cope with peak call volumes at various times during the day and week may be more appropriate. This would also reduce the potential for stress and fatigue associated with the repetitive nature of the calls. It is also important to build up a pool of casual staff for optimum resource flexibility or to use alternative technology solutions, such as call queue back, IVRs or Internet-based technology.

4.7.4 STAFFING MIX

Call Centres tend to have a staff employment mix of full-time, part-time and casual staff. The majority of Call Centres use permanent part-time staff who work between 20 and 40 hours per week, with casuals handling peak call times, evenings and weekend periods.



Many Call Centres use university students in shorter shifts. Using trainees can also be very effective, given their ability to develop eventually into fully productive Call Centre CSOs. Most public sector awards are based on a 35-hour week. However, some agencies operate Call Centres with a successful strategy of employing part-time staff to cover peak periods, such as weekends. Helpful publications that discuss flexible work options include Flexible Work Practices: Policy and Guidelines produced by the Public Employment Office (1994,1995) and Strategies for Flexible Workplace Arrangements, Premiers Department (2000). Existing staff The introduction of a Call Centre may lead to the relocation or reclassification of some existing staff, as they become displaced by the specifically recruited Call Centre staff. Agencies should consult Managing Displaced Employees: Policy and Guidelines (1996) for information on how to manage displaced staff if staff rationalisation becomes necessary. Already established areas in the agency may also need to be integrated with the Call Centre if staff there handle a high volume of customer contacts. Likely areas include the switchboard and accounts payable and receivable.

4.8 Organisational structure

It is important to develop a structure that provides overall effective performance management within a Call Centre. Figure 1 in Appendix 4 shows a typical organisational structure for a 30-seat Call Centre. Typically a Call Centre with fewer than 10 CSOs, would have a Call Centre manager, team leader and a combined support staff member / CSO. A Call Centre with more than 50 CSOs would have three to four team leaders, senior CSO levels, specialist support staff, a workforce analyst and a staff development / quality assurance manager. Support staff for Call Centres include information technology and telecommunications specialists and finance and administration personnel. Key roles The manager of a Call Centre is ultimately responsible for the effective day-to-day operations of the Call Centre as well as the overall long-term strategic direction and development. The manager is a key member of an agency's senior management team, given the strategic importance of a Call Centre to the agency. Depending upon the size of the Centre, the Call Centre manager may have a team of specialist personnel responsible for specific roles. If the Call Centre has fewer than 25 CSOs, some of these specialist roles may be performed by the Call Centre manager or allocated to a team leader.

The role of team managers / leaders includes coaching, double jacking, performance management, silent monitoring, analysing statistical reports to identify high and low performers, and overall responsibility for motivation / morale of their team. The team managers / leaders should also acquire their Certificate IV in


Assessment and Workplace Training to ensure that on-the-job training of staff is structured for maximum results. By having senior CSO / workplace coach positions in place, a better career path will be available to CSOs. The supervisor to staff team ratio, in general, should be no more than 15:1 provided that there is one senior CSO / workplace coach in smaller teams of seven or eight. In addition, a team-based structure should be introduced for improved team management with team managers and senior CSO positions responsible for the overall effective management and development of their team's performance. Typically, the key roles of Call Centre support staff include systems support and maintenance, and administration / word processing. Succession Planning The Call Centre manager and team managers / leaders are important to the overall effective management of a Call Centre. Consideration should be given to succession planning within a Call Centre for the Call Centre manager's position. Staff in the position of team managers can develop the required expertise over time.

4.9 Recruitment and selection

The development of a rigorous recruitment and selection process is important, given that the average cost of recruiting and training of staff in the industry is estimated at more than $12,000 per position. Agencies should also consult a useful report, Council on the Cost of Government Third Report (1997), which discusses selection and recruitment costs. Other sources of information on legislation and policies for public sector recruitment and selection should be consulted before starting recruitment These include:

• Public Sector Management Act, 1988; • Public Sector Management (General) Regulation, 1996; • Personnel Handbook,1999; • Specific legislation governing statutory authorities.

The first major decision in the recruitment and selection process is whether to conduct the process internally, externally using a recruitment agency, or a combination of both. If the agency has no experience in the recruitment and selection of Call Centre personnel, then one option is to use a specialist recruitment agency. There are many general recruitment agencies, but it is important to select a recruitment agency that has extensive experience in selecting Call Centre personnel, particularly in the government sector, and that uses an advanced Call Centre recruitment process.


Even when the selection process is undertaken internally, recruitment agencies may be useful in screening and assessing applicants. They can streamline the assessment of the available pool and short-list those candidates who are most suitable. If large numbers of applicants are expected, then using a recruitment agency in this phase of the process can be a time-saver. Whether the recruitment process is handled internally or externally, the entire process must be based upon the skills needed to do the job. Essentially, the recruitment and selection process for CSOs should include:

Key Recruitment and Selection Processes • Job analysis, position description and person specification; • Telephone screening; • Telephone interviews including voice analysis; • Behavioural interviews; • Behavioural role-plays; • Face-to-face interviews; • Reference checking.

Telephone interviews are an essential part of the selection process. The aim of the telephone interview is to establish candidates’ work experience, communication skills, telephone manner, voice skills and selling ability (if applicable). It will also reveal their attitude, enthusiasm and the creativity of their telephone performance. The most important part of the selection process is the role-playing. This provides an opportunity to assess how good the applicants are at communicating and selling themselves. Three specific role-play scenarios should be used to test the extent of candidates’ customer service orientation, communication skills, ability to handle complaints and phone-selling skills (if appropriate). Recording the role-plays will enable them to be played back at a later stage to confirm initial impressions. It may also be appropriate to incorporate the use of a Customer Service Questionnaire (CSQ), a psychometric test developed by Saville and Holdsworth. The CSQ has proven to be very effective in identifying suitable customer service-oriented staff The recruitment and selection process for the Call Centre manager and team leader positions is likely to be more complex. Given the strategic importance of the Call Centre manager to the effective establishment and operation of a Call Centre, the recruitment and selection process for this position may involve an executive search and placement process or be handled by an external recruitment agency that specialises in this type of recruitment. The selection process for the Call Centre manager may include resume screening, psychological profiling, multiple interviews, agency presentation and reference checking. Recruiting team leaders will be similar to the CSO recruitment, but will emphasise different skills. Here the emphasis will be on experience in leading and managing teams within a Call Centre environment, important criteria for this level of position.


Behavioural questions at the interview could address these criteria, along with role-plays based on specific scenarios involving motivating, coaching and counselling team members.

4.9.1 OTHER EMPLOYMENT CONSIDERATIONS Appointment conditions for each position and level also need to be specified, including hours of work, pay rates, and leave entitlements. Exit interviews are an important link with the recruitment and selection process as they can identify issues that may need to be addressed within the Call Centre, based upon the staff member's feedback.

4.9.2 POSITION DESCRIPTIONS

Clear descriptions of the roles and accountabilities for the positions of Call Centre manager, team managers / leaders and CSOs need to be developed and should include Call Centre key performance indicators (KPIs). Specific accountabilities and performance measures vary for each level, but the following tables indicate some of the relevant skills.

Key CSO Skill Requirements Priority Rating

High level customer service orientation 1 High level communication skills, including superior voice skills

1

Team-based skills 2 Positive attitude under pressure 2 Keyboard and computer database skills 3

Key Team Leader Skill Requirements

Priority Rating

Ability to effectively lead and manage a team 1 High level communication skills 1 Ability to motivate, coach and counsel team Members

2

Ability to work well under pressure, meet deadlines and effectively manage resources

3

Ability to provide a high level of customer interface 3

Key Call Centre Manager Skill Requirements Priority Rating Ability to effectively lead and manage the Call Centre 1 High level communication skills 1 Ability to achieve agreed targets and KPIs 2 Ability to effectively manage resources within defined budgets

2

High level focus on continuous improvement 3


4.9.3 INITIAL TRAINING AND INDUCTION PROGRAM Appropriate training for Call Centre staff can improve productivity and service levels by more than 15 per cent. A training and development plan for the next 12 to 18-month period should be developed and include ongoing training programs for all staff in customer service and sales (if appropriate) techniques. An important part of the training and development plan would be to conduct a Training Needs Analysis and an individual Skills Assessment. These will help to identify current competency levels and specific training requirements from both an individual and team perspective, particularly if internal candidates are selected. Depending upon the size of the Call Centre and the ongoing training requirements, a dedicated training position may be needed to manage staff development training requirements. Ongoing training requirements are also discussed in the Operational Guidelines.

4.9.4 TRAINING PROGRAMS Even though specific training requirements differ from one organisation to another, there are a number of common elements that should be incorporated into induction programs. These include:

• Knowledge of the organisation, including its mission, vision and core values, key performance objectives, office values and business strategies;

• Product knowledge – products and services of the organisation, including key uses and benefits, prices (if appropriate);

• Customer knowledge, including customer profiles; • Communication skills, including voice skills and call-handling

strategies; • Computer systems; • Office procedures and hours of operation.

An induction and training manual should be developed. It should document the entire training program, including lesson plans, facilitator's guide, overhead transparencies and workshop manuals.

4.9.5 TRAINING STRATEGIES Methods that can be used to train Call Centre CSOs include classroom activities and call observation. However, accelerated learning techniques to bring new staff quickly up to speed may use double jacking, product knowledge tests, and one-on-one coaching. Another option is for senior CSOs to be available on the floor to assist newer staff. Experienced staff see this system as an appropriate recognition of their knowledge and performance.

4.10 Marketing and communication strategies



The final major factor involved in the establishment of a successful Call Centre is an effective marketing and communications role. Undertaking a project of this magnitude will have a large impact throughout the agency. This will result in a cultural shift, in terms of effective customer contact management. Communicating the role and objectives of the Call Centre is vital to gaining acceptance and recognition of the Call Centre's importance. Both internal and external marketing and communication strategies will need to be developed to ensure both agency staff and customers understand what the Call Centre does (functionality), what service level objectives (KPIs) have been established and how the Centre will improve the agency's service delivery. Methods used to communicate to both internal and external customers include:

• An official launch of the Call Centre, with the relevant Minister involved; • Call Centre newsletters, information briefs, video; • Appointment of service liaison officers within the Call Centre to communicate

with other sections within the agency; • Letters to customers and other key stakeholders; • Media releases and other publicity.

The Call Centre needs to be integrated into the agency's overall marketing strategy to maximise its effectiveness. This will help to coordinate the various agency initiatives. This coordination will ensure that the Call Centre is not faced with unexpected call volumes because it was unaware of a planned marketing event. Unexpected call volumes that are not handled efficiently can lead to widespread customer dissatisfaction, destroying the success of the marketing strategy.

Call Centre Establishment Guideline – Appendix 5 of 44

APPENDIX 5 Abbreviations for common Call Centre terms

1. ACD Automatic Call Distribution

2. API Application Programming Interface

3. ASA Average Speed of Answer

4. ATT Average Talk Time

5. BIC Best In Class

6. CATI Computer Assisted Telephone Interview

7. CBT Computer Based Training

8. CIS Customer Interface Services

9. CLI Caller Line Identification

10. CND Calling Number Display

11. CSR Customer Service Representative

12. CTI Computer Telephony Integration

13. D-AMPS Digital Advanced Mobile Phone Service

14. DRB Digital Ratio Broadcasting

15. EAS Expert Agent Selection

16. ERM Enterprise Relationship Management

17. GOS Grade of Service

18. ICR Intelligent Call Router

19. IDNX Integrated Digital Network Exchange

20. ISDN Integrated Services Digital Network

21. IVR Interactive Voice Response

22. MCU MultiPoint Conferencing Unit

23. PBX Private Branch Exchange

24. PCS Personal Communication Systems

25. PSTN Public Switched Telephone Network

26. RSA Reservations Sales Agents

27. SFA Sales Force Automation

28. SNMP Simple Network Management Protocol

29. SSA Switching System Adaptor

30. TCP/IP Transmission Control Protocol/Internet Protocol

31. TIO Telecommunications Industry Ombudsman

32. TIS Translating and Interpreting Service

Call Centre Establishment Guideline – Appendix 5 of 44

33. TSR Telemarketing Sales Representative

34. VOIP Voice Over Internet Protocol

call centre establishment guideline

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