SSPA Best Practices Conference

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SSPA Best Practices Conference

• Dancing with the Bear, and other outsourcing
  parables
• April 9-11, 2006
• Russ Reynolds
• Xerox Corporation

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Agenda

• Strategic Alignment
• Voice of Customer
• Voice of Business
• What others are doing and not doing
• What options are available
• Optimization
• Partnering
• Leading
• Summary

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Evolution
Todays focus

• 2002-2005
• Product Support Life cycle
• Transactional work
• Strategic Outsourcing

• 2006 ----
• Continue Product Support life cycle
• Continue optimization
• Expand partnerships

• 1998-2002
• In Sourcing
• Co Source
• Near Shore
• Canadian OPCO
• Planned gradual transition
• Centralization of other functions

• 1993-1998
• Regionalized
• In House
• Centralization process

Partner Engagement
Co-Source
Consolidation
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In Sourcing or Co-Sourcing
Offer more services to support internal processes
remotely
Successfully transitioned many workloads over 4
years

• 1998-2002
• In-source or Co-Sourcewith Canadian Opco
• Excellent Cost model
• Excellent Employee Base
• Some local government incentives
• Exchange rate benefits (risk)
• Phased workload transition
• Planned over period of years
• Communications critical
• In effect outsourced
• Company controlled
• Opco partnership

Performance remained as good or better
Achieved significant cost savings
Eye on the future
Thank you sir, may I have another?
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Strategy
Success measured through enterprise value chain
Services Delivery
Customer Contact
Contact Centers
Self Service
Contact Center Tier 2
Customer Visit
Level 1
Level 2
Level 3
Level 4
Level 5
Knowledge
Key Message Determine where a partner would fit
in the current and future business strategy
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Voice of Business
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Voice of Business
Knowledge moving faster right to left
Develop
Test
Launch
End of 2nd tier Support Launch ELS
Decision Tool
End of Service
Maintenance Two support tiers
Product Support Life Cycle
Product life cycles shortening
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Voice of Customer
60 Satisfied Portland Research Group 2005
How satisfied were you with ?
70-95 Satisfied Range Gartner Study 2004
Source Xerox Business Research Group
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Voice of Customer
Voice of Customer varies in products and market
segments
Technology Support levels Expectations
Key Message Understand varying customer
expectations
Source Xerox Business Research Group
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Key Message Understand industry trends and
practices
Industry
Source Dr. David Butler, Ph. D.
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• Missing Caribbean and South America

Key Message Understand industry trends and
practices
Industry
Source Dr. David Butler, Ph. D.
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Contact Center Industry

• Key directions
• First Contact Resolution
• Remote support systems and processes
• Motivated employees drive customer loyalty
• Balanced approach to technology as the answer
• Customers increasingly unfavorable to lengthy IVR
• Current movement toward controlled live answer
• Outsourcing will remain a viable option, utilized
  within strategy and with understanding of
  customer expectations
• Positive customer experience focus
• Continued cost control pressures while improving
  customer experience and overall results

Source Various reports and white papers
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Approach
Higher Value
?
?
To Re-Discover the Customer
?
Lower Skills
Higher Skills
?
Offer more services to support internal processes
remotely
To Offshoring and Automation
?
Lower Value
Source Dr. David Butler, Ph. D.
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Second Phase
Grew in variety of work
Variety of types of work migrated to centers

• 2002-2005
• Product Support Life cycle
• Transactional work
• Strategically aligned 3rd party partner
  outsourcing

Much transactional in nature
Quality of services standards set
3rd Party Decision
Thank you sir, may I have another?
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Major Account Operations
Small / Medium Business Ops.

• Core (Office-Color/Digital)
• XOG
• Team Xerox
• Legacy products

• Major Account HD
• Managed Services HD
• Graphic Communications HD
• Supplies
• Core (Production)

Multi Skilled Reps, Multi Contact
Method Blended Routing
SC Professional Services
Xerox Services Support

• Customer Relations Group
• Via Xerox
• LCSC / XDSS / IP

• CSE Support / Helpdesk
• Parts Support Operations
• Disaster Recovery Teams
• FM Help Desk

3rd party partner work candidates legacy and
mature products support, transactional work
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Knowledge moving faster right to left
Develop
Test
Launch
End of 2nd tier Support Launch ELS
Decision Tool
End of Service
Maintenance Two support tiers
Logical place for 3rd party partner
Product Support Life Cycle
Product life cycles shortening
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Product Support Life Cycle
Ongoing support
Product Launch

• Knowledge base growth
• Feedback from various processes
• Experience growth

• Three tiers of support
• Knowledge Base early stages

Cycle continues as new products are launched
Toward End of Life
Maturity

• Majority of knowledge collected
• Prepare Subject Matter Experts
• Transition 2nd level to SMEs

• Product mature and approaching EOS and EOL
• First tier support by partner
• 2nd tier support through SMEs

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Optimization Defined

• Define
• Right work
• Right place
• Right Cost
• Right reason
• Right customer
• Next logical step
• Work candidate identification
• Legacy product support
• Transactional and administrative
• Mature products nearing EOS

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Outsourcing

• Goals and objectives of outsource initiatives.
• Keep costs under control
• Maintain highest level of customer satisfaction
• Migrate workload within our business strategy
• Form sound partnership with 3rd party provider as
  extended member of operation
• Enhance operational flexibility

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• Decision made to Partner
• Selection
• Request for Quote
• Statement of work
• Assessment of responses
• Narrow down to 3-5
• Due diligence process
• Narrow to final 2-3
• Reverse auction
• Final agreement negotiation

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• Decision made to Partner
• RFQ
• From inventory of contacts
• Complete information for suppliers to consider
• In and out of scope
• Partnering objectives clear

• Assessment of responses
• Which responses are closest to RFQ criteria
• Customer focus
• Financial
• Which most closely resemble our values
• Flexibility
• Quality of personnel
• Commitment
• Quality and professionalism of response

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• Decision made to Partner
• Narrow down
• First cut to 3-5
• Based on RFQ criteria and response
• Narrow again interviews
• Final 2-3
• Reverse auction

• Due diligence
• Site visits
• Interviews
• Background checks
• Financial reviews
• Risk assessment

• Final negotiation and decision

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• Leadership
• Relationship Manager
• Pseudo Center Manager
• Partner with Operations Manager
• Cultural norms
• Customer culture sensitivity
• Keeping informed
• Membership in the community
• Experienced Center Manager

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North American Customer Support Centers
Russell B. Reynolds Manager, NACSC 972-420-2920

• 3rd Party provider relationship
• Day to day business operations
• Resource Management
• Tele-Communications Strategy and Direction
• Via Xerox

• Customer Satisfaction Remote Solutions
• Service Delivery Process
• Work Environment
• Employee Growth and Development
• Managed Services Help Desk
• Xerox Canada Operations
• Xerox Channels Group
• Customer Relations Team

• Customer Satisfaction Remote Solutions
• Service Delivery Process
• Work Environment
• Employee Growth and Development
• Managed Services Help Desk
• Logistics CSC
• Customer Relations Team

• Planning / Analysis
• Business Analysis
• Falcon/Phoenix Integration
• Voyageur project Leadership
• Systems Quality and Reliability

• Remote Support Strategies
• E-Services
• Product Support and Development Integration
• Product Launch
• Organizational Collaboration and Integration
• Product Knowledge and Training

• Managed Services Help Desk Integration
• Major Account Support strategies
• Customer Satisfaction Programs

• National Customer Relations Processes
• CRG Teams leadership and direction
• Complaint Management Processes
• Executive Customer Relations Leadership
• Internal Issues management
• Field Interface Customer Issues

• Lean Six Sigma Organizational Integration
• Lean Six Sigma Project Integration/Coordination
• Business Process Consistency and Quality
• Training quality

Extended Partners
04/01/05
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Partner Inclusion Process
In house Operations

• Strategic alignment first
• Outsourcer as a partner. Same common goals and
  objectives

3rd party Partner
Supports coverage, DRP
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Virtual Operation Partner Inclusion
Internal Center
Internal Center

• Leadership Community
• Scheduler and Staffing Community
• Training Community
• Process Management community

• Leadership Community
• Scheduler and Staffing Community
• Training Community
• Process Management community

Virtual Connected Engaged Focused
Home Office
Partner Center

• Leadership Community
• Scheduler and Staffing Community
• Training Community
• Process Management community

• Leadership Community
• Scheduler and Staffing Community
• Training Community
• Process Management community

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Results
Cost / Transaction
Cost Objectives achieved
Customer Satisfaction
Customer Satisfaction objectives achieved
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General Next Steps

• Use uncommon sense
• Prepare for marathon, not a sprint
• Dont think of outsource as big procurement
  deal
• Start with research
• Strengthen operations before outsourcing
• Plan, refine plans, repeat

Source Anatomy of an Outsourcing Deal, Paul
Roehrig, Ph. D.
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Summary
Optimization
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Thank you