Where is the Philippines in the World?
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- Scarlett Garrett
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1 Where is the Philippines in the World?
2 WHERE IS THE PHILIPPINES in the World Map? In Southeast Asia. East of Vietnam in the Philippine Sea located in the Pacific Ocean north of Malaysia and Indonesia. A group of 7,107 islands - home to more than 94 million people. 2
3 Filipinos can promise you a more heartfelt and interesting experience. Wherever you go, whatever you do in the country, it s the Filipinos that will complete your vacation and will make your holiday unforgettable. 3
4 BENCHMARKING JOURNEY Transforming an In-House Call Center into a Revenue Generating Outsourcing Center through Benchmarking MARIA TERESA (Maritess) BAGAMAN - Philippines Vice President, Philippine Society for Quality 4
5 5
6 THE PHILIPPINES: THE CALL CENTER CAPITAL OF THE WORLD
7 The Philippines IT-BPO industry has grown rapidly Philippine IT-BPO industry size; ; US $ billion x% YoY Growth FTEs Revenue (US$M) % inc. fr 10 # FTEs (~ 000) ~50% 6.1 ~26% 7.1 ~16% Global share 1 5% 6% 6% 7% 8% 8.9 ~25% 11.0 ~24% % Voice BPO 416,000 7,400 21% By 2016: Non-voice BPO/KPO 128,650 2,058 24% Philippines expects to boost its revenues from call centers to nearly $15 billion. With 862,000 people Will sustain three-year lead over rival India IBM, Accenture, Convergys, NTT Docomo, JP Morgan & Chase, HSBC English, Spanish, Japanese, German, French, Bahasa, Thai ITO 49, % Health Info Mgt & Care Engineering Services 24, % 9, % Animation 8, % Game Development 1, % TOTAL FTEs 638,319 11,036 24% Philippines IT-BPO market as percentage of global offshore services market, in revenue terms Sources: BPAP, ACPI, CCAP, GDAP, HIMOAP, PSIA 7
8 Why are Philippine Call Centers on Demand? Call Center sector comprises 70% of the total BPO industry in the country. - 80% of the call services provided for the US market. Others from European (e.g. Spain, France, Germany ) and Asian markets (e.g Japanese). Reasons: Lower operational and labor costs relative to the US Higher proficiency in spoken-american style English and idioms Constant stream of college educated applicants Highly skilled and overly motivated workforce due to higher salaries and several motivational programs and incentives Filipinos are known to be naturally service-oriented and friendly 8
9 Are you ready to join me in this thrilling and breathtaking journey of. Our Benchmarking Story?
10 PRESENTATION OUTLINE Our Benchmarking Journey Benefits Gained Lessons Learned 10
11 OUR BENCHMARKING JOURNEY from an In-Call Center to a Revenue Generating Outsourcing Center
12 OUR BENCHMARKING JOURNEY... SMC CUSTOMER CARE BPO TIMELINE to present INQUIRY HANDLING - SMC-1 San Miguel s Customers First INQUIRY HANDLING ORDER TAKING CUSTOMER SATIS- FACTION SURVEYS Inbound Services INQUIRY HANDLING ORDER TAKING Outbound Services LEAD GENERATION SALES CAMPAIGNS/PROMOS TELEMARKETING CUSTOMER SAT/RESEARCH Inbound/Outbound Services SMS/ /E-FA BPO subsidiary of SMITS CUSTOMER CARE SERVICES - Food Services - Healthcare Services - Telco Services - Other SMC businesses FINANCE & ACCTG.SERV. PAYROLL & HRIM E- PROC/Bldg.&Admin Sup.
13 PERFORMANCE RESULTS ( Excludes Coca Cola services ) ,000 Growth in Volume of Transactions From: 110,000 Inbound Transactions (2003) 880 To : >10 million (Inbound/Outbound) Transactions (2011) Growth in Processing Sales Revenue Transactions From: Php 0.01 Billion To : 2010 over Php 30 Billion Growth in Program Complexity Volume of Transactions (in thousands) Customer Inquiry Handling Order Handling for Trade Customers Telemarketing Sales and Marketing Campaigns Customer Retention Programs Incremental Sales Generation Customer Satisfaction Tele-surveys Customer Research Tele-surveys Internet Sales/Healthcare/Telco Services 13
14 OUR BENCHMARKING JOURNEY Searching the World Building a Knowledge Exchange Network Nurturing Benchmarking Relationships thru Benchmarking Partnerships 14
15 Searching the World Finding the best-in-class companies - Effective process implementation of Total Productive Maintenance (TPM) Visits to companies awarded for the effective TPM implementation; model companies Joint training in Japan on TPM for certification Regular visits to sites; listened to mancom pres and interviewed employees re: lessons learned Developed customized modules/processes. Plant-wide trainings. Plant Manager championed implementation. Pilot implemented in one plant site model plant Success led to implementation in all 5 plant sites Department successes were replicated in other departments. 15
16 Searching the World Finding the best-in-class companies - Improving Customer Satisfaction Processes Visits to companies awarded for strengths in Customer Satisfaction Management - Different Industry : Baldrige Awarded IT company in Rochester, USA, multinational banks in the Phil., Pizza - Same industry: top company in the US; CSAT training in US Used structured Process Benchmarking Approach. Developed CSAT Management Process for pioneering in-house Customer Care System. Launched campaigns/recognition to involve employees in all levels of the organization as Customer Satisfaction Advocates Championed by the Division President and its ManCom. 16
17 BENCHMARKING THE CUSTOMER SATISFACTION PROCESS AT IBM-ROCHESTER Steven Hoisington Dr. Gerald Balm
18 CUSTOMER SATISFACTION MANAGEMENT PROCESS OBJECTIVES OF PROCESS : To establish a structured strategy to handle all customer requests, concerns and recommendations To continually improve customer satisfaction level To develop and create partnerships bet. IBM and its customers To improve customer relationships
19 BENCHMARKING THE CUSTOMER SATISFACTION PROCESS AT IBM ROCHESTER SELECTION CRITERIA COMPANY A COMPANY B COMPANY C COMPANY D Formal Cust. Mgt. Process Emerging Emerging Conduct/Adm. CSAT surveys Formal Complaint Handling, Mgt. & Aggregation Process Recognized as World-Class Model in CSAT International Sales Tracks CSAT Worldwide Direct Sales Sales through Intermediaries Emerging Emerging Tracks CSAT to the End-User Consumer Consumers incl. large acct. as well as individuals Dissimilar Industry
20 Building a Knowledge Exchange Network Strengthening Linkage of Benchmarking to Knowledge Management & Competitor Intelligence. Managing Information for Performance Management... Knowledge Management, Benchmarking Management and Competitor Intelligence Company-wide training on all 3 concepts & linkages Developed a company-wide Knowledge Exchange Network. - on-line training on Benchmarking - repository of internal and external best practices - repository of other training modules - repository of the list of Knowledge Experts within/outside 20 20
21 How can KNOWLEDGE MANAGEMENT drive PERFORMANCE ECELLENCE?
22
23 Creating an In-House Call Center Benchmarking Network Identified companies from different industries which have set-up in-house call centers Invited one company representative per industry; no competitors Conducted Benchmarking trainings esp. Code of Conduct Nurtured Long Term Benchmarking Partnerships Improved several processes in the In-House Call Center e.g. CSAT process, Employee Satisfaction and Competency Development Process, Performance Management. Set the stage for the formation of an Integrated Call Center and Business Process Outsourcing Company
24 IMPROVING THE PERFORMANCE MANAGEMENT PROCESS OF IN-HOUSE CALL CENTERS through Local Benchmarking (Philippines) 24
25 ORGANIZATION PROFILE Batteries Insurance Bank Pharmaceutical Fast Food Chain Power Gov t Service Food, Beverage 25
26 OBJECTIVES To have a deeper appreciation of Benchmarking To be guided on how to use benchmarking for effective management of in-house call centers in the Philippines To establish a network for continuous improvement 26
27 BENCHMARKING METHODOLOGY (Asian Productivity Organization) Stage 1 Planning and Analysis Stage 2 Learning and Sharing Stage 3 Recommendations Stage 4 Implementation 27
28 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 Identified Members Mgt. Approval Conducted Training/Workshop Agreed on the ff: - Hosting Schedule - Agenda - House Rules - Membership Rules Identified the ff: - Objectives - Roles - Scope - Code of Conduct Identified : - Benchmarking Framework/ Standards Identified Priority Improvement Areas Compared performance with international Stds. Shared levels of perf., experiences, new learnings Conducted Learning Sessions 28
29 Phase 1 Benchmarking Network Process House Rules/Norms ORGANIZE THE TEAM Have Fun! Designate 1 or 2 Representatives from the member organizations Maximum number of representatives per meeting is 5 The allowable number of absences is 3 Regular meeting will be monthly(3 rd Tuesday of the month) - Start meeting on time. Members are encouraged to be punctual. - If late, members must be prepared to entertain group. Host member is in charge of: Venue, Confirmation of Pax, Meals, Agenda, Minutes of the Meeting Form Steering Committee, Roles & Responsibilities and E-Group Follow Brainstorming Guideline 29
30 Benchmarking Network Process Phase 2 SET TEAM GOALS Benchmarking Code of Conduct Principle of Legality Principle of Exchange Principle of Confidentiality Principle of Use Principle of First Party Contact Principle of Preparation Principle of Completion Principle of Understanding and Action During benchmarking, no poaching/ pirating of each others personnel Companies should come from non-competing industries 30
31 Benchmarking Network Process Phase 3 IDENTIFY PERFORMANCE STANDARDS Customer Operations Performance Center (COPC) Performance management approach that a provider must institute and defined metrics provider must use to evaluate the effectiveness and efficiency of its approaches. It is a sustainable performance management framework. 31
32 Gap Analysis/Action Plans Finalize statement of direction and align metrics to be measured. Monitor and measure for internal use the common asset utilization such as peak seat utilization. Develop client management procedure Research comparative industry standards for inhouse call center on internal client satisfaction Develop client and staff satisfaction monitoring system, administer survey annually 32
33 Benchmarking Analysis PARAMETERS B. People Management Recruitment Career Path EISTING SET- UP Hiring follows a generic process and is not focused on hiring of call center agents Initial design for CKAG career path BENCHMARK SYSTEM GAP ANALYSIS / SOURCE SYSTEM/PROCESS ACTION PLAN Individual testing and interview group dynamics based exercises Progression within the call center but may avail of opening within the organization 4 levels (competencies defined per level) Coordinate with CHR to develop standards for recruitment of agents Develop competency ladder and performance management system (with AMG and OD) Progressive within the call center and career path in operations. 33
34 COMPETITOR AND BEST-IN-CLASS BENCHMARKING Customer Journey Maps Emotion Curves 34
35 Customer Experience Process Design for CALL CENTER TOUCHPOINT OBJECTIVES To identify call center attributes and parameters that are critical in creating positively unforgettable customer experiences to mobile phone customers. To benchmark the processes that will differentiate the Telco s call center s front end processes from its competitors. 35
36 Emotion Curve 36
37 Strengths per Best in Class and Research 37
38 BENEFITS GAINED Identified Customer Experience differentiators using the structured approach in Benchmarking Strengthened Benchmarking Network Sustained growth & expansion of call center 38
39 Secrets to Benchmarking Success Friendships: Shared Goals User-Friendly Structured Approach Nurturing Relationships : Trust code of conduct Search the world with One Click Experience the Process 39
40 Next - Generation Benchmarking Journey
41 This our Story... 41
42 Create a Ripple. for a Whole New World. What is your Story? 42
43 CREATING CREATIVE POSSIBILITIES.. A DOOR WITHOUT BOUNDARIES 43
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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
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