how to build a world-class back office
DESCRIPTION
Paul Leamon presents common back office challenges, and defines what a world-class back office looks like, and how to build one. Additionally, explains the business impacts of becoming a world-class back office.TRANSCRIPT
How to Build a World-Class Back Office
Paul LeamonDirector, Back Office Product Management
NICE OverviewBack Office ChallengesWhat is a World-Class Back Office?How to Build a World-Class Back Office?Business Impact
Agenda
2
Software solutions that take organizations from insight-to-impact, addressing three main business segments:
• Enterprises –enhancing the customer experience and increasing revenues through a broad variety of customer interaction channels
• Financial institutions – ensuring compliance and preventing financial crime
• Government agencies, public and private organizations – ensuring safety & security
NICE (NASDAQ: NICE)
~25,000 Customers
$792-802M
Expected full year non-GAAP 2011 revenues*
>80%Fortune 100 Customers
>35Local Offices
>1,000Service
Professionals
~3,000 Employees
>150 Countries
1986 Founded
* Per guidance provided on November 3, 2011
The NICE Offering
5
NICE ENTERPRISE
Customer Interactions
NICE SECURITY
Safety & Security
NICE ACTIMIZE
Financial Risk & Compliance
Capturing the intent of individuals
Multi-channel interactions and transactions
Multiple data sensors
Intent
The Essence of Our Offering
6
Insight Impact Extracting insights using advanced analytics
Real-time cross-channel analytics
Multi-sensor data correlation
Making an Impact on: Customer experience Regulatory compliance Operational efficiency Financial crime prevention Safety and security
!
BACK OFFICE CHALLENGES
Back Office Frustration
How to improve employee performance?
How to improve compliance?Backlogs are too large!Overtime costs are over budget!She believes that there is hidden
capacityHow long does it take to process back
office work?How to accurately plan for growth?Need to improve quality and lower
reworkNow her team has to handle calls too!
Mary is Director of Back Office Processing
Example of AHT Difficulties
Back Office Challenges – Accurate AHT
What the system recorded: AHT = 2 hours
Employee took a Loan Application from the queue Loan processed to Underwriting
11:00 13:00
What really happened: AHT = 30 minutes
Employee took a Loan Application from the queue Loan processed to Underwriting
11:00 13:00
Loan Facebook eBay Lunch Netflix Facebook Loan
11:15 11:30 11:45 12:15 12:30 12:45
Multiple systems with no single source of data Employees can work on multiple items concurrently No data for manual or paper-based processes
Imaging
CRM
Fax
Loans
Billing
Sales
If only she had technology like the call center!
ACD
Matt is Director of the Call Center
Time and Motion Studies
Manual Employee Work Reports
Workforce Management
Call and Screen Recording
Quality Management
Speech Analytics
Customer Feedback
Mary is Director of Back Office Processing
Performance Management
Back Office Technology Gaps
Data Controls
Management Information Systems
What is a World-Class Back Office?
When compared to the average of their peers, they have:
Higher efficiency and productivityConsistently meet or exceed their service goalsLower back office costsHigher customer satisfaction and loyaltyHigher qualityLower regulatory finesHigher employee satisfaction and lower attritionLower contact center costs Intelligently share work with the contact center
INCREASE EFFICIENCY, PRODUCTIVITY, MEET SERVICE GOALS AND LOWER COSTS
Desktop Client
CONTEXTUAL CONNECTORS
GenericWeb
Services
Real-timeDB
Access
Real-time GUI
MonitoringConnector
Real-Time Activity Monitoring of Desktop Work
Business Rule EngineInterprets and DecidesOn Appropriate Action
and Data Collection
Event
Data Event
Event
Event
Event
Event Event
Event
Event
Multiple Applications on User’s Desktop
Works Across Virtually ALL Application Types!
Payback Example
Back Office: 500 Employees
Average Salary: $40,000 / yr
Annual Payroll (without OT): $20,000,000
Accurately Track Processes and Sub Tasks
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Accurate Average
Processing Times
Visibility into Individual
Employees to find Best
Practices and Compliance
Issues
Use Best Practices training to
increase work items per day
goals
4% Improvement =$ 750,000
Process: Claim validationTasks included: AllTasks not included: NAPerformers: Top 20%
Employees: All
From date: March 1 2011
To date: March 31 2011
Max Paths: 2
33%
45%
0 50 100 150 200 250 300 350 400
37
62
68
55
115
110
59
6450
Review incoming email
Create new claim entry
Validate customer eligibility
Approve/reject claim
Knowledge base
Pat
h C
om
mo
nal
ity
Duration (seconds)
• Average weighted score: 83%• 99 instances• 51 employees• Average duration: 279 sec
• Average weighted score: 74%• 99 instances• 42 employees• Average duration: 341 sec
Process Path Analysis Report exampleProcess selection All/Top/Bottom
performers
Employee filter : All/specific teams/specific employees
Date range filter
Number of paths to present
Path commonality
Average task duration
Path - order of tasks
Consider paths that included tasks
Consider paths that excluded tasks
Business KPI Based
Total Application Usage Report
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Facebook Facebook
eBay
Netflix Netflix
eBay
Find “Hidden” Capacity:Facebook
eBayNetflix
Find and Eliminate Excessive Non-Work Time
10 minute Improvement =
$ 416,000
Idle Time
Find and Eliminate Excessive Idle Time
5 minute Improvement =
$ 208,000
Home Loans 21 854 4.98 1.08
TheWorkforce
Management Cycle
Tools to Automate Capacity Management Activities
20
Forecast & Plan
Schedule People& Events
Manage Change
Analyze Performance
1 % Staffing improvement =
$ 200,000
Disparate DataSources
One Version of the Truth…
KPI Dashboard Analytics
WorkflowIncentives
Coaching FormsExecutive Dashboards
A Holistic Approach toImproving Performance
Personalized for Every Person
and Role
ETL Tool Built for Performance Management
ExampleSources
Performance Suite
2 % Productivity improvement =
$ 400,000
HIGHER CUSTOMER SATISFACTION, LOYALTY AND HIGHER QUALITY
Quality Management
Visibility into employee screen navigation to find and fix root causes of errors Tailor evaluation forms to focus on quality objectives specific to the business Deliver & schedule customized coaching packages for individuals & teams
Screen Recording & Playback
Configurable Employee
Evaluation Forms
Custom Coaching Packages
23
Error rate lowered from 4% to 2% =
$ 333,000
LOWER REGULATORY FINES
Process Compliance Enforcement
Define Desktop WorkflowsEnsure process compliance within and across applications
$ 1,000 per day Improvement =
$ 260,000
INCREASE EMPLOYEE SATISFACTION AND LOWER ATTRITION
BEFORE
Employee manually adds customer address & other common information in multiple applications
Time consuming and chance of error high
AFTER
Employee enters information once and invokes the automatic population of data in the other applications
Time saved and entry errors eliminated
Automate Manual Work
27
10 Minute improvement =
$ 416,000
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Real-Time Guidance
Employees cannot know everything
Guides employees through complex back office processes
Presents relevant information in a call out window
Provides information relevant to each step in the process
Guidance based upon the specific needs of the individual
Push knowledgebase information instead of employees hunting for it 4% Improvement =
$ 750,000
29
User Interface Consolidation
Save time by providing required information from multiple sources in one call out
More cost effective than using 3 monitors
5 minute Improvement =
$ 208,000
LOWER CONTACT CENTER COSTS
Making the Ultimate Customer Connection
Business processes often span contact center and back office
Back office issues drive costly interactions into contact center
Back office inefficiencies impact enterprise profitability
Both contact centers and back offices impact customer experience
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Contact
Center
Back Office Customer
Ultimately- customers are impacted by the ENTIRE enterprise
INTELLIGENTLY SHARE WORK WITH THE CONTACT CENTER
Intelligently Share Work with the Contact Center
Back Office helps the Contact Center
Back Office helps the Contact Center
Back offices can provide some support for easy to handle call types to help with the peak hours of the day
Contact centers can provide some support for related back office work during the lowest volume hours of the day
Contact Center helps the Back OfficeContact Center Forecast
BUSINESS IMPACT
35
Strong ROI, Quick Payback
Example: 500 Employee Department Annual Salary: $ 40,000 Payroll: $ 20,000,000 Savings
Find and replicate best practices (4% ): $750,000 Eliminate 10 minutes of non-work time: $416,000
Find and eliminate 5 minutes of idle time: $208,000 1% staffing improvement: $200,000
2 % productivity improvement: $400,000 Lower error rate from 4% to 2%: $333,000
Lower regulatory fines $1,000/day: $260,000 Use automation to save 10 minutes: $416,000
Real-time guidance saves 4% work time: $750,000 Use UI Consolidation to save 5 minutes: $208,000
Total: $ 3,851,000 Payback < 6 months
Plus, additional savings from lower contact center call
volumes!
CASE STUDY
Insurance Case Study
BACKGROUND SOLUTION HIGHLIGHTS IMPACT
BACK OFFICESOLUTION
One of the largest insurance companies in the United States with millions of beneficiaries.
10% efficiency gain by monitoring desktop work
20% staffing savings through improved forecasting and scheduling
One copy and paste automation saved 28 seconds per process and eliminated errors
Improved Operational EfficiencyReal-Time Activity Monitoring Gained visibility into insurance
processing to improve productivity Monitored application usage, web
browsing and idle time to reduce unproductive time
Real-Time Process Optimization Automation to improve efficiency
Workforce Management Improved Forecast Accuracy Increased Scheduling Efficiency
Real-Time Activity Monitoring
Real-Time Process Optimization
Workforce Management
“We need this solution because today we are living in the Dark Ages, with no visibility into the work our employees are doing.”