Theme:
MEASUREMENT, ANALYSIS AND KNOWLEDGE
MANAGEMENT
(Benchmarking: Performance and Best Practice Benchmarking)Title of Paper:
Transforming an In-House Call Center into a
Revenue-Generating Outsourcing Center through Benchmarking
Name of Author:
Vice-President, Philippine Society for Quality, Makati, Metro Manila, Philippines
former Senior Manager, San Miguel Corporation, Philippines currently a Strategy Partner/Executive, Globe Telecommunications, Philippines
[email protected] or [email protected]
Abstract:
This should be a summary of the paper describing its purpose; methodology/approach; findings; research limitations/implications (if applicable); practical implications; and, the originality/value of paper.
Purpose:
This paper aims to demonstrate how the implementation of a structured benchmarking management approach (e.g. process, strategic, competitor and best-in-class)can be used as an innovative strategy in building, growing and transforming an in-house call center from a cost center department to a revenue-generating business process outsourcing group.
The paper explores the effective use of various benchmarking approaches in identifying critical areas of improvement and designing more appropriate business models and performance management systems to facilitate such transformation.
It also highlights the lessons learned in the implementation ofthese benchmarking
methodologies, improvements made based on the data gathered and the more effective tools that can be used.
Methodology:
Using a structured process benchmarking approach, this paper will discuss the benchmarking journey to world-class companies which have received various business excellence and quality awards. These include winners of Malcolm Baldrige and Philippine Quality Awards like IBM in Rochester and Texas Instruments (Philippines), and other leading companies such as Coca-Cola in Atlanta and Miller Brewery. It will also illustrate how the author spearheaded the formation of an In-house Call Center Benchmarking Network to improve call center management
processes.Furthermore, the paper will highlight how one can uncover a wealth of other best practices through extensive research using digital media.
Findings:
One of the critical factors in the growth of the call center services was the use of the various approaches in benchmarking. The process improvements and innovative solutions that were discovered resulted in the improved overall performance of the following areas:
Growth in Volume of Transactions Increase in Sales Revenue Transactions Complexity of Services
Expansion of Business Solutions
Diversity of Customers across Industries Originality/Value of the Paper:
This paperwill highlight the different methodologies(e.g. process, strategic, competitor and best-in-class) used in Benchmarking and how the structured and effective implementation of these methodologies helped transform the in-house call center from a cost center to a profit-generating unit.
It also discusses the lessons learned in terms of the development of strategic business models, performance management, employee competency development and design of innovative business solutions.
Biographyof Author:
Provide short bios of the authors – necessary for the chair of the session. Indicate which author(s) will be speaking at the Congress. Up to 125 words.
Ma. Teresa U. Bagaman, MBA : Vice-President, Philippine Society for Quality, former Senior Manager, San Miguel Corporation, currently a Strategy Partner, Globe Telecommunications, and lecturer, Ateneo Graduate School of Business.
She has more than 25 years of strategy development, management and technical experience in Business Process Outsourcing(BPO), CustomerExperience and QualityManagement.
She has earned certifications for various quality management tools e.g. Senior Assessor for the Philippine Quality Award, Call Center Manager from AT&T College of Call Center Excellence, COPC Coordinator from COPC, USA, ISO Lead Facilitator from Neville Clarke,Singapore, Total Productive Maintenance Facilitator from Japan Institute of Plant Maintenance.
She is a Gold Honor Medal awardee of Ateneo Graduate School of Business/US-based Regis University, a Superior Performance awardee of the Asian Institute of Management and a recipient of various quality awards.
Presentation Experience:
Please state your previous presentation experience at seminars or conferences or business events e.g. your 5 last presentations. Up to 100 words. If you have limited presentation experience please do not be discouraged from submitting a paper. This information will help us to arrange sessions specifically for new presenters that wish to share their work.
She has presented papers on Customer Satisfaction and KnowledgeManagement in Singapore (Call Center Conference), Thailand and Taiwan (Asian Productivity Organization Study Missions),and the Philippines (National Quality and Workplace Cooperation Conference).
Content of Paper:
As a guide focus on operational strategies, innovative practices, models, tactics, and measurement methods addressing how to make improvements happen (including lessons from unsuccessful initiatives). Ensure that your paper fits at least one of the Congress themes.
Background and Content
This paper aims to demonstrate how the implementation of a structured benchmarking management (e.g. process, strategic, competitor and best-in-class) can be used as an innovative strategy in building, growing and transforming an in-house call center from a cost center department to a profit center outsourcing business.
In 2003, in line with the company’s efforts to grow volume and maximize synergies, San Miguel integrated some of the call center-related functions that resided in its different
businesses. This resulted in the integrated call center which was referred to as the San Miguel Customer Care Center. When it was launched in 1997, its primary function was to serve as the “hotline” number for the inquiries of SMC customers. With the
advancements in information technology and improvements made through various benchmarking activities. San Miguel’s integrated Customer Care Center nowprovides alternative channels for SMC customers for easy access and quick response to varying types of customer needs. In 2007, San Miguel Customer CareCenter expanded into a profit-generating outsourcing business for the company.
Objectives, i.e. what you were trying to do
To demonstrate how the implementation of a structured benchmarking management approach (e.g. process, strategic, competitor and best-in-class) can be used as an innovative strategy in building, growing and transforming an in-house call center from a cost center department to a revenue-generating business process outsourcing group.
To show how the effective use of various benchmarking approaches in identifying critical areas of improvement and designing more appropriate business models and performance management systems was able to facilitate such transformation. To identify the lessons learned in the implementation of these benchmarking methodologies, improvements made based on the data gathered and the more effective tools that can be used.
Salient events or process or practice (or methodology used for an academic paper) Using a structured process benchmarking approach, this paper will discuss the
benchmarking journey to world-class companies which have received various business excellence and quality awards. These include winners of the Malcolm Baldrige and Philippine Quality Awards a like IBM in Rochester and Texas Instruments (Philippines), as well as other leading companies such as Coca-Cola in Atlanta and Miller Brewery. It will also illustrate how the author spearheaded the formation of an in-house
Benchmarking Call Center Network to improve call center management processes. Furthermore, the paper will also highlight how one can uncover a wealth of other best practices through extensive research using digital media.
Benchmarking methodologies that were used since 2003 include process, strategic, competitor and best-in-class. An example of a benchmarking activity applied was used in the formation of an in-house Call Center Benchmarking Network. The members of this network came from different industries in the Philippines namely insurance, pharmaceutical, power, food and beverage, government service, fast food chain, banking and car batteries.
In order to encourage open sharing in the initial stages of the formation of the
benchmarking network, it was agreed among the members that only one representative per type of industry will be asked to join the network.
The methodology used by the in-house Call Center Network was based on the APO Benchmarking Methodology as discussed by APO expert Bruce Searles in 2004. This methodology consists of four stages namelybased on the accepted business standard model but targeted specifically at benchmarking:
Stage 1: Planning and Analysis – This is the stage where the group sets the vision for delivering the outcomes of the benchmarking project in consultation with stakeholders, chooses a benchmarking topic, selects the project sponsor, plans the benchmarking process, establishes the team, chooses the partners and conducts data collection and analysis of data.
Stage 2: Learning and Sharing – This is the stage where the group examines comparative strengths and opportunities for improvement, and facilitates learning and sharing between the organization and chosen partners. This will result in the knowledge exchange required for the development of a plan recommending improvements.
Stage 3: Recommendations– This is the stage where the group draws up the plan in consultation with the sponsors and stakeholders to ensure that the plan has support and approval.
Stage 4: Implementation – This is the stage that involves the implementation of the recommended changes and a review to determine the success of the improvements. After a careful study of the APO Benchmarking process, the group develops a modified process. The following framework shows the modified In-House Call Center Benchmarking Network Process:
Phase 1 Phase 2 Phase 3 Phase 4
ORGANIZE THE TEAM SET TEAM GOALS IDENTIFY PERFOR-MANCE STDS. MEASURE, SHARE, LEARN & ADAPT PLANNING AND ANALYSIS
LEARNING AND SHARING GAP ANALYSIS Phase 1 Phase 2 Phase 3 Phase 4
ORGANIZE THE TEAM SET TEAM GOALS IDENTIFY PERFOR-MANCE STDS. MEASURE, SHARE, LEARN & ADAPT ORGANIZE THE TEAM SET TEAM GOALS IDENTIFY PERFOR-MANCE STDS. MEASURE, SHARE, LEARN & ADAPT PLANNING AND ANALYSIS
LEARNING AND SHARING GAP ANALYSIS
The modified benchmarking approach consists of the following four phases andsome of the activities that are implemented under each phase:
Phase 1: Organize the Team – This includes identifying members, securing the support and approval of concerned senior management, conducting a benchmarking training/workshop, setting agreements on hosting schedule, venue, house rules and membership rules.
Phase 2: Set Team Goals – In this phase, the following major outputs are developed namely: objectives, roles, scope and code of conduct.
Phase 3: Identify Performance Standards – In this phase, the group identifies an internally accepted set of Benchmarking Framework and Standards that can be used as a reliable guide in the improvement of the call center management systems. From this set of standards, the group identifies the priority improvement areas based on the scope agreed upon in Phase 2.
Phase 4: Measure, Share, Learn and Adapt – This phase focuses on data analysis and the comparison of processes with the internationally accepted standards and the members of the Benchmarking Network. The group assesses and identifies the gaps per organization and develops individual action plans. This is also the stage where new levels
ofperformance can be shared. A major highlight of this phase is the conduct of learning sessions based on topics that were identified as critical based on the gap analysis. In 2010, other types of Competitive and Best-in-Class Benchmarking approaches(e.g. mystery shopping for flagship stores, role playing as a customer to discover best practices in the call center, and simulated browsing of web portals to define performance levels) were also used in developing the Customer Experience Process Design as a business solution for one of the outsourced clients.
Results, and how they were obtained
The resulting process improvements and innovative solutions that were discovered resulted in improved overall performance in the following areas:
- Growth in Volume of Transactions: from 110,000 inbound transactions in 2003 to more than 4 million inbound and outbound transactions in 2011.
- Increase in Sales Revenue Transactions: from Php 0.01 billion in 2003 to over Php 30 billion in 2011
- Complexity of Services : from inbound transactions of inquiry and
lead generation, telemarketing, customer satisfaction measurement, competitor intelligence, customer data mining
- Expansion of Business Solutions : from Call Center Services to other Business Process Outsourcing Services (e.g. Finance, HR,
Procurement) and Knowledge Process Outsourcing (e.g. Customer Experience Process Design)
- Diversity of Customers across Industries: from beverage to food (meat, poultry, dairy, ice cream), telecommunications, healthcare, corporate services
The following are examples of the results that were obtained from competitor and best-in-class benchmarking using pioneering customer experience tools like Customer Journey Maps and Emotion Curves:
Implications for others (describing how businesses can learn from this) The following are some recommendations to ensure the effective use of the various methods of benchmarking :
Development of a structured benchmarking methodology
Institutionalization of the agreed methodology by ensuring quick access and settingup user friendly automated workflows. These could be accessed in the company’s internal Knowledge Exchange Network portal.
Development of a “management friendly” and easy to use methodology which will encourage the sustained use of the approach in all levels of the organization Defined objectives and roles of concerned members of the organization
Use of internationally accepted standards on performance excellence
In setting up and sustaining the benchmarking network, encouraging members to “have fun while learning” and continuously showing the improvements made to senior management
