Roadmap Toward Operational ExcellenceSuccess Story

Piotr Machowski

Acting Chief Operating Officer, UPC Poland

6th Customer Contact 2012 Europe, 11th June, Amsterdam

V120512-01

6th Customer Contact 2012 Europe, 11th June, Amsterdam

Piotr Machowski, Acting COO, UPC Poland

Roadmap Toward Operational Excellence

Key Take-Aways:

• An example of an effective Innovation Program for employees

• A practical framework for using voice of customers and closing the continuous improvement loop

• A case study of a BPM technology that helped to improve customer satisfaction and decreased operational costs

Switzerland

Slovakia

Puerto Rico

AUSTRALIA

THE AMERICAS

WESTERN EUROPECENTRAL AND

EASTERN EUROPE

Chile

Ireland

Belgium

Poland

AustriaHungary

Romania

Netherlands

Germany

Czech Republic

• 33,2 million homes passed

• 19,5 million customers

• 32,8 million services (18,4m video,

8.2m internet and 6.2m telephony

RGUs) LGI Annual Report 2011

Liberty Global the second largest cable company in

the world

3

Agenda

�An example of an effective Innovation Program for

employees

�A practical framework for using voice of customers and

closing the continuous improvement loop

�A case study of a BPM technology that helped to improve

customer satisfaction and decreased operational costs

4

Simplified business process model

5

Product Dev, Marketing

Sales

Customer Services

Strategy

Resources

Cu

sto

me

r n

ee

ds

Cu

sto

me

r n

ee

ds

Improvement design and building blocks

6

Operational ExcellenceOperational Excellence

Customer Centric CultureCustomer Centric Culture

En

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TE

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bli

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IT

tech

no

log

y

Fe

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ba

ck f

rom

Fe

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ba

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cust

om

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Inv

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Inv

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Voice of Customers

7

This you know from internal KPIs

This you mayknow from your customers

Satisfaction Research Processes in UPCPL

8

Close

the

Loop

Listen

ACT

• Started in April 2010

• In operation since Nov 2010

• 3 processes:

• Listen – select customers,

ask for feedback

• Close the Loop –

identify complaints

left in feedback

• Act – analyze feedback,

pass results to CSRs, look

for trends and root

causes, recommend,

approve and implement

improvements

The research process

• Every day measures 5

Customer Services

processes at UPC-PL

(transactional)

• Once per month measures

overall satisfaction of

UPCPL customers

(relational)

• 7000 – 8000 of answers

every month

• E-mail/www and IVR

• Automated

• Third release of process9

ListenInstallation (2011)

Walk-in-office (2010)

Correspondence (2010)

Call to CC (2010)

Technical Service (2012)

CS processes measured:

Identify

events

(CRM)

Ask for

feedback

Collect and

correlate

feedback

Identify and fix errors

• Every feedback left by

customer is analyzed by

quality consultant

• Every complaint is picked-up

and queued in Complaints

Management Process (same

as for traditional CS contact

channels)

• Complaints processing is

monitored

• Every feedback is categorized

(tagged)

10

Close

the

Loop

Listen

Manual analysis

Complaints

Management

System

Categorization

(positive & negative

contexts)

Pass feedback to CSRs and managers

• All results are delivered to

supervisors weekly (split by

teams) and used for coaching;

customer feedback is passed to

front-line CSR “responsible” for

contact

• All results are analyzed by

Quality Assurance Team

specialists. Monthly report is

presented to CS directors

together with

recommendations drawn from

the analysis.

11

Listen

ACT

CSRsLeader

Directors, QA

Process improvements

Reports

Customer comments – categories

12

0 20 40 60 80 100 120

Paleta usług [Poz]

Paleta usług [Neg]

Problemy techniczne [Neg]

OBOK [Neg]

Instalacja [Neg]

Instalacja [Poz]

Kontakt z UPC Ogólnie [Poz]

Cennik koszty [Poz]

Promocje [Neg]

Cennik koszty [Neg]

Kontakt z UPC Ogólnie [Neg]

Proces sprzedaży [Neg]

0

1

2

3

4

5

6

7

8

9

10

VoC – technical overview

13

Phase 1Nov’10 – May’11

Phase 2Jun’11 – Nov’11

Phase 3

Feb’11 >

IT Telecom

Marketing

IT Report Team

MSSQL Q&D

NPS DB

Contact Data

Gathering ETLs

Results

Gathering

ETLs

MassMailing

Results @

Distribution

ETL

Superiors

WIZARD, BPM

Sharepoint (INTRANET)

Reporting ServicesQ&D

Reports

Publishing

ETL

upc.pl/ankieta

MySQL

Interactive Media

Spec

CustomersResearch results

Customers

BPM

TTA DB

Cases

registering in

BPM ETL

Invitation

distribution

ETLs

Voice of Customers - lessons learnt

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1

2

3

4

5

Make it simple – max 5 questions. Ask open questions.

Communicate your findings and successful improvements.

Design the back-office process (analysis and complaints).

Share customer verbatim feedback. It is powerful.

Build a team. Support business process owners.

To do:

Don’t do:

� Set up a program without senior management support.

� Setup questionnaire without business process owner.

� Ask too many customers for feedback.

Involved employees

15

Involved employees – innovation program

16

2705 submitted ideas 2705 submitted ideas

365 rewarded (13%) 365 rewarded (13%)

321 implemented so far 321 implemented so far

In 2006 we launched an Innovation Program

„I have an idea” for all UPC employees.

Results up to date:

Participants

– 41% of all employees came up with at least one idea, many

employees with several.

– Customer Care personnel submitted 87% of ideas (and no

wonder, they know best what customers’ pain points are…).

17

Customer Care

first line 77%

Customer Care

back office10%

Sales & Marketing

5%

Technical6%

Other2%21-61 ideas

1511-20 ideas

40

6-10 ideas70

2-5 ideas220

1 idea216

Categories of implemented improvements

18

Customer Care processes

73

IT Systems81www.upc.pl

39

Products36

Billing & Collections

20

Installation & technical service

18

Administration17

Other10

Gathering

opinions

Preliminary

reviewDECISION

CommitteeManagers,

Specialists

REWARD

UPC PL

Intranet

COMMUNICATIONABOUT WINNERS

Back Office Process

Rules and

regulations

Back Office Team

Sponsor Project

Manager

IMPLEMENTATION

UPC

employee

19

Innovation Program - lessons learnt

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1

2

3

4

5

Provide fair evaluation, financial rewards and recognition.

Encourage feedback and listen to your innovators.

Design the back-office process.

Identify business sponsors.

Build a team that manages program.

To do:

Don’t do:

� Set up a program without senior management support.

� Let people wait long for any feedback on their ideas.

� Manage implementations in an ineffective manner.

Enabling technology

21

Enabling IT technology – BPM platform

Why Business Process Management platform is enabling:

– Requires business discussion about process before

development begins

– Automates routine functions

– Enforces standard processing of every case/incident/iteration

– Helps process owners to take ownership of their process,

e.g. provides instant process metrics (KPIs)

– Is relatively easy to change (frequent process improvements)

Almost any workflow enabled tool will provide

those benefits.

22

BPM implementation – correspondence

Before:

– Old correspondence handling system, expensive to

maintain and to modify, performance problems

– Information about handling ‘hidden’ in silos

– Almost no metrics

After:

– Redesigned correspondence handling process, agreed KPIs

– Information easily accessible for all CSRs

– Instant access to process metrics (manager & CSR level)

Result:

– Complaints handling time decreased by half

– Retention process triggered automatically23

Email recognition system – success fee

Before:

– Email registration manual, delays, errors, increasing cost

– Delayed handling due to missing information

After:

– Brand new technology, young and academic vendor,

no good criteria to approve delivered solution

– Significant % of payment after business goals are met

– Smooth cooperation despite change of requirements and

schedule overrun by 100%

Result:

– 98% of incoming mail properly auto-recognized

– Email handling time decreased by half

24

Enabling IT solutions: BPM - lessons learnt

25

1

2

3

4

5

Use process-aware tools to improve your processes.

Start with business area which is ready for change.

Share success criteria with your vendor.

Review business process before building requirements.

Prepare for changes.

To do:

Don’t do:

� Use most sophisticated tools from day one.

� Let “traditional” IT personnel to manage BPM project.

� Underestimate growth of volume of transactions.

Improvement design and building blocks

26

Operational ExcellenceOperational Excellence

Customer Centric CultureCustomer Centric Culture

En

ab

lin

g I

TE

na

bli

ng

IT

tech

no

log

y

Fe

ed

ba

ck f

rom

Fe

ed

ba

ck f

rom

cust

om

ers

Inv

olv

ed

Inv

olv

ed

em

plo

ye

es

Thank you for your attention

Questions?

Piotr.Machowski@upc.pl

+48 600 488 592