How to Optimise the Back Office

Transcription

1 How to Optimise the Back Office Colin Whelan, Head of Training Professional Planning Forum John Bailey, Manager, Solutions Consulting Verint Witness Actionable Solutions Martin McCreesh, Director, Engineering, Desktop Analytics Verint Witness Actionable Solutions Webinar March 25,

2 Today's Discussion Production Management Limitations of Current Back-office Tools and Practices Tools: Workflow, BPM, Imaging Practices: Lean, Six Sigma Best Practices in Production Management Data Capture and Desktop Analytics Workforce Optimisation Back-office Workforce Optimisation Success Stories

3 Production Management Metrics Corporate, financial and functional objectives are all achieved through the management of three key factors: Production Activity / volume throughput Unit cost Individual utilisation Service Delivery Arrival rates SLAs / Deadlines Compliance Quality Error rates Consistency / compliance Skill levels

4 Production Management Evolution Yesterday Feeds from transaction processing systems Manual, employee self reporting Time & motion studies Best guesstimates Today Lean, Six Sigma Process Reengineering Electronic Document Imaging Workflow Automation Business process Management Tomorrow Workforce Optimisation Real-time, comprehensive data capture Planning, forecasting & scheduling Adherence Performance Management Continuous Improvement Data Feeds Reporting

5 Current Practices and Tools Lean, Six Sigma, TQM, Process Reegineering Electronic Imaging, BPM, Workflow

6 Polling Question #1 pick one Which, if any, of the following methodologies do you apply? Lean Six Sigma Business Process Reengineering TQM Other/None

7 Current Methodologies Lean A productivity focused methodology in which peaks and troughs in volume and in-process inventories are minimised to ensure optimum capacity utilisation, minimise waste, improve quality and speed throughput Six Sigma Is a business management strategy to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimising variability in processing following the 5 DMAIC steps. Business Process Reengineering Is a "clean slate" approach that often involves a radical redesign of business processes to achieve dramatic improvements in cost, quality, speed, and service. TQM - is a management approach to reduce processing errors, increase customer satisfaction, streamline supply chain management, modernise equipment and ensure workers have the highest level of training. Tools that ensure sustainability

8 Polling Question #2 pick many Which of the following tools do you use for workflow management in your operations? Workflow Automation/Work Management Tool CRM/ERP Manual paper distribution Other

9 Current Tools Workflow Automation simple automation tool for directing documents and tasks to the responsible users in a business process for further actions Document Imaging a system used to track and store electronic documents and/or images of paper documents. CRM methodologies and software to help an manage customer relationships by capturing customer information to better enable organizations to match customer needs with products/offerings Distribution of work via internal systems Manual Paper Distribution Supervisor controlled distribution of manually received work. The people factor

10 Workflow Mgmt vs. WFO Sample Workflow Management Workforce Optimisation What it Does Defines processes and process steps Routes work based upon organisation group, person or skills Rules based routed based on defined steps Potentially automates steps What It Does Not Do Define Capacity Requirements Identify/Match Resource Availability Monitor Processing vs. Deadline Requirements Enable intraday adjustments to ensure service level agreements are met What It Does Aligns personnel w/demand based upon organisation, skill and availability Computes resource requirements from step volumes, time standards Automates resource scheduling Defines capacity Identifies resource availability Tracks deadline progress Supports decision-making by modeling based upon capacity, availability, etc. What It Does Not Do Define Processes and Process Steps Route Work

11 Best Practices in Data Capture Desktop and Process Analytics Volumes Arrival Rates

12 Example: Data Capture for Capacity Modelling Data capture in the contact centre is through the ACD, which lends itself to a simpler translation into capacity analysis than in an operations area. Volume Data Timings Adaptability Features of ACD in Call Center Single source of data for all volumes and activities ACD captures call length and thus feeds capacity calculations Relatively easy to update Features of Capacity Model in Back Office Multiple sources of data, many not available in any data system Activity timings must typically be developed through observations, timings or desktop monitoring Changes in processes require new analysis of timings and potential volume data sources

13 Polling Question #3 pick many How do you capture data now? Transaction Processing Systems Self Tracking or Time & Motion Studies Desktop Monitoring Other None

14 Desktop Analytics Enables Back-Office Quality Assurance Identify Process Variations: Quickly see who s following prescribed process steps (use recorded session for validation or root cause analysis) Assess process step adherence & timings in aggregate form Identify potential process improvements Alert Managers To Problems: Send pop-up or alerts so line managers can correct behaviors Alert department or organization management when quality issues exceed thresholds Track & Publish Quality Metrics: By individual employee By team or department By entire organization

15 Visibility of Activity Precise application utilisation metrics Identify top performer characteristics Understand where time is being spent Perform unbiased and objective analysis of actual user behaviour

16 Visibility of Process: Triggers Create triggers to follow user paths, extract key data, and create on-screen process guides. Utilise business analysts to create and modify triggers as process and data needs evolve.

17 Visibility of Process: Comparisons 100 Processes done 100 different ways. Where are the variances? Where am I out of compliance? Is there a best practice?

18 Visibility of Process: Comparisons With a start and end point defined, DAM can visually map and generate the processes in a Microsoft Visio diagram. The diagram expresses steps used along with the paths traveled. Additional details are provided by clicking on a particular step or path. Paths may be viewed to determine which users followed a particular path while steps may be viewed to determine metrics by user as well as group average. Perform analysis on each path taken to complete a step or process.

19 Consistency of Process Enforce process adherence. Process Guides for each user or group. Automatically propagate data without integration.

20 Consistency of Process: Handle Times Measure each distinct process. Gather metrics on handle time for each step and each process. Retrieve additional analytics for a particular process by clicking the process or step of interest within the report. Visible end-to-end insight on completed processes are managed along with the associated steps. Tagged values allow for further analysis of process management based on uniquely identified values (i.e. case id, value amount, issue, etc.).

21 Desktop & Process Analytics: Review Arrival of work Volume of arrived work needed to start Service Level measurement Use Triggers on Scanning and Imaging or Use Volume Capture Tool (VCT) - self declaration of volumes Completed work Volume of work at the end of Service Level measurement Use Triggers to capture individual achievement of volumes Use Trigger Comparison/Process Analysis to capture Handling/ unit times Other non-production work/time Use MyTime - self declaration of activities

22 Best Practices in Workforce Optimisation Planning Forecasting Scheduling Adherence Intra-day Management Performance Management

23 Polling Question #4 pick many How do you plan, forecast and schedule now? Excel Spreadsheets Access Database/Reports Use a front office WFM tool Use a back office WFM tool Manual/Other

24 Capacity Management F&S Reporting Assess utilisation, productivity, unit costs and identify opportunities for improved efficiencies. Smith, N Smith, O Smith, P Smith, R Smith, T Smith, N Smith, O Smith, P Smith, Smith, R R Smith, T Note: This is an excerpt from a multi page work queue report and is only a sample for demo purposes.

25 Forecasting Forecasting & Scheduling Application Customise the Forecast and Service Goals for each work queue accommodating the unique needs of the operations environment and ensuring resources match demand. Backlog is an important factor for proper planning.

26 Scheduling Forecasting & Scheduling Application Schedule based on activities vs. time in/time out, prioritising work and aligning work with skilled employees. Account for production and non production activities, such as projects, meetings, and training in order to mitigate the risk of impacting service levels.

27 Back Office Adherence What does it mean? Monitor Adherence to Plan/Schedules Monitor Inventory/Backlog As Well As New Arrivals Respond in Real time to Variances in Volumes, Absences

28 Polling Question #5 pick one Do you monitor adherence in your back office on an: Intra-day basis Intra-week Intra-month None Other

29 Backlog and Inventory Management Monitoring backlog, process adherence, and employee throughput ensures compliance and service level achievement. Backlog and Inventory Management Backlog and inventory are vital volumes to consider Driven by nature of business and the appropriateness of extended service goals Tracking Age of Work Items SLA achievement with backlogs/inventory requires managers to be able to track and find specific items Because work is spread over hours and days, the likelihood that some items may exceed compliance deadlines and SLAs increases Multi-step Work Modelling Work flows through multiple steps and many people One employee can do multiple steps Downstream workload and time is dependent on previous steps

30 Intra-day Management Pulse Monitor intra-day, week and month trending and enable re-forecasting and schedule adjustments should variances in volumes or absences threaten service levels

31 Item Level Tracking Work Item Tracking Set up custom aging buckets, then view the distribution of the age of various types of work by tracking workload at the item level

32 Scorecards and Performance Management Scorecards Organisation Scorecard View Capture employee skill proficiencies and monitor error rates and productivity to ensure skills match demand and identify training or coaching needs Roll up scorecards to track targeted KPIs for financial, quality, service, production, employee, and customer goals Tracks actual to goal Quick visual of current score and the current trend

33 Dashboards Organization, Team and Individual Performance Discover Trends Over Time View Leader Boards Compare to Goals Compare to Peers Identify Coaching List

34 Back-office WFO Success Stories ROI Case Study

35 Back-office WFO Value Proposition Performance Management and Increased Productivity Back-office WFO typically delivers a 500% ROI Managing performance at the employee level Driving improvements and raising the bar Better workload balancing and intra-day management to meet deadlines and service levels while reducing costs Match staff to workload (including inventory) &manage to meet service levels Understand current status against forecast to proactively manage Enterprise view of the workforce (including contact center) Identify cross training opportunities to leverage staff across functions Improved quality and customer satisfaction Better staffing meets customer service levels Triggering to prevent errors from occurring

36 Enterprise WFM In Action The Situation International financial services company Increased back office staffing was improving service but not productivity What mattered most: identifying the source of this disparity, so it could adjust its operations and service accordingly The Solution Back Office WFM Witness Actionable Solutions Strategic Business Consulting Process, Capacity Planning and Scheduling Review The Outcome Achieved an 800% return on investment Identified operational improvements totaling $3.3 million with an immediate capacity savings of approx. $660,000 (based on 22 FTEs) Experienced operating and human resource gains that include: 38% increase in operating margin 11% increase in overall volume activity 6% reduction in headcount

37 Key Takeaways Best practice is to manage back-office service levels through measurement, planning and adherence Use Desktop Analytics to feed Back-office Workforce Optimisation Manage customer experience across front and back office using enterprise Workforce Optimisation

38 Verint At A Glance 15 YEARS TOP 20 Founded 1994 and based in Melville, NY THE THE UNITED UNITED KINGDOM KINGDOM CALIFORNIA CALIFORNIA FRANCE FRANCE COLORADO COLORADO THE THE NETHERLANDS NETHERLANDS GERMANY GERMANY POLAND POLAND ISRAEL ISRAEL HONG HONG KONG KONG TEAMWORK 2500 dedicated professionals worldwide INNOVATION Over 450 patent registrations and applications CANADA CANADA Global enterprise application vendor * CHINA CHINA JAPAN JAPAN 10,000+ Customers in 150 countries MEXICO MEXICO R&D GEORGIA GEORGIA FLORIDA FLORIDA OVER 80% Fortune 100 companies use Verint solutions INDIA INDIA BRAZIL BRAZIL MASSACHUSETTS MASSACHUSETTS MARYLAND MARYLAND NEW NEW YORK YORK NEW NEW JERSEY JERSEY VIRGINIA VIRGINIA AUSTRALIA AUSTRALIA SERVICE SINGAPORE SINGAPORE Global Leader in Actionable Intelligence Solutions * AMR Research, July 2009 Industry-leading R&D investment World-class customer service

39 Market Leadership Functionality - Specific functionality added to a robust, proven platform to support the unique needs of the back office Business Knowledge - Depth of experience in Practice and Services in working with the back office as consultants, implementers and business advisors Verint's vision for WFO spans the front and back office and is, by far, the most executed on through the creation of a dedicated enterprise division Enterprise Vision - A true enterprise vision that understands the linkages and opportunities to leverage a solution across an organization Verint received perfect scores in the firm s first ever WOTs (workforce optimization technology) report for solution breadth, vendor strategy and solution maturity. Depth of Experience the Impact 360 for Back-office Operations is in it s fourth generation with over 25,000 seats installed Verint provides the most mature and comprehensive integrated WOTs solution in the market.