Performance Management – Queue Consolidation

Client:

Fortune 125 Financial Services Company with annual revenue of $20 billion

Client Challenge:

Reduce unit costs across the personal lines contact centers under the “Shared Business Model” initiative

Results:

  • Consolidated 17 queues to four, increased capacity, streamlined service delivery and positioned centers for virtual call routing
  • 21% reduction in unit costs; 24% reduction in call support staff
  • First year savings of $900K against staff of 140 agents

Background:

A Fortune 125 insurance and financial services company with 30,000 employees launched an internal initiative, the Shared Business Model, to improve the effectiveness and efficiency of its personal lines contact centers. A driving force behind the Shared Business Model initiative was to reduce unit costs through consolidation of regional service centers. The consultants at Major Oak were retained in this capacity.

Project Details:

In 20 weeks our consultants completed a Six Sigma project, which consolidated 17 queues to four, streamlined business processes and implemented an activity-based management control system. A historically based forecasting model was built, which integrated call arrival data across multiple queues, providing the visibility needed to ensure accurate call distribution patterns and agent schedules from day one of the cutover. By the 16th week of the engagement our client had already realized $533,000 in savings, self funding the project, and was well on its way to achieving the first year savings goal of $900,000. In addition to delivering more optimized scheduling through enhanced call routing and better training, several process improvements were made, largely stemming from the 944 side-by-side observations conducted by the project team. This roll-up-your-sleeves effort led to improvements in: call greeting, call closing, job aides, complex calls / conflict resolution and processing techniques for 30 off-phone activities. During this effort the company continued to maintain its very high quality standards, while the improvements above drove a 34% improvement in service levels.

The Major Oak Difference:

Our proven approach and experienced consultants delivered the target benefit with this project, which served as a foundation for a broader improvement program, generating savings of $10 million in three years. With more than 15 years of contact center experience, our team was able to navigate the tactical challenges presented by this process improvement initiative while recognizing the critical role of open and honest communication. At Major Oak Consulting we are passionate about our clients’ success and it shows in every project we lead.