Driving rapid client experience improvement in GBS · McKinsey & Company | 6 Test lab setup steps...

Driving rapid client

experience improvement

in GBS

November 9, 2015

CONFIDENTIAL AND PROPRIETARY

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McKinsey & Company | 1

Percentage of customers likely to …

Great customer experience drives real impact

Share of companies…

Percent

5

62

… having CX as a priority topic 87

… viewing themselves as CX

industry leaders

… focusing most on investing

in CX in 201213

… planning to implement

a CX program in 201325

… targeting to become CX

industry leader in 3 years54

… running some sort

of CX program in 2012

SOURCE: Oracle, 2013 B2B commerce trends; Temkin report, 2012

0

10

20

30

40

50

60

70

80

90

14131211

… upgrade or

buy additional

products

… recommend

201918171615

… cancel

… downgrade

Customer satisfaction score

Many companies think CX is important The reasons why are clear


CX is an effective frame for a broad set of initiatives – not just

service, but improvements to product, pricing and brand

The best way to improve CX is through journeys, achieving stacked

wins (NPS, churn, gross adds, call reduction, cost saving)

CX requires a heavy dose of front-line empowerment and capability

building

At the core of a CX program is an analytics “central nervous system”

to identify what matters and to whom

Key beliefs around customer experience

CX should be approached as an enterprise-wide change management

program – it is the job of everyone, not just a customer

Create a Test Lab to enable rapid testing for marketing and the

front-line

Measurement matters – the right customer-back metrics and the right

system to operationalize


Transforming the customer experience through GBS: Setting the vision

and aspirations

Vision Aspiration (illustrative)

35+ ptsNPS scores across business units

50%Reduction in client/

EE service requests

Top quartileassociate assessment of customer

service

Call to action

Fast processing of work that

matters to me

Accurate processing and service

that is done right the first time

Secure provision of services that

protects customer data

Transparent servicing that lets

the customer know what’s

happening

Customer want a “FAST”

experience Transform the customer

experience

Enable our associates to

deliver exceptional service

Enhance our competitive

price position in the market

Transformational goals…


Test labs are meant to rapidly prove or disprove the effectiveness

of initiatives by trying them in a closed loop system under stress

Test lab objectives

▪ A Test Lab to rapidly refine solution design and prove impact for

complex solutions / initiatives

▪ Closed loop learning to identify defects and root causes end to end

▪ Proof that we can meaningfully move the needle on key output

metrics (e.g., NPS, transaction volumes)

▪ “Stress the system” to prove different level of performance possible

(e.g., create system to test increased productivity)

▪ A region or site to host the trial of frontline continuous

improvement

▪ Frontline/operational evangelists that can excite their peers


Initiatives scale based on type of change

The process runs initiatives through a series of recursive sprints

before scaling through direct implementation or communication

Policy /

operational

changes

Cultural /

frontline

changes

Policy and operational changes scale

through implementation to the broader

associate base

Cultural changes and new ways of

working can scale through go-and-

see’s & other internal communications

Week 5 Week 6 Week 7

EvaluateTest

Week 16…

x4

Weeks 1-4

Setup Design

Typical lab will run 2 - 3 initiatives

at a time through a 2 week sprint

of design and test with a week for

evaluation vs. metrics

The test lab method relies on a

fast failure mentality with

recursive sprints to design,

test, and evaluate results

Number of recursive sprints depends on the

intended / realized results:

▪ Unsuccessful tests can be redesigned / re-

tested if opportunity still exists

▪ Successful tests may be discontinued if full

potential has been reached

A 4-week setup defines test

lab parameters: ring-fence,

associates, initiatives &

metric dashboards

Detail to follow

ILLUSTRATIVE

Rapid test & learn occurs in a series of recursive sprints


Test lab setup steps – 4 week process

▪ Define segment of demand which can be easily “ring-fenced” and funneled into the lab

▪ Identify a segment of demand to provide a representative sample and properly test initiatives

▪ Call out and define plan to address technological or other limitations to tagging demand that is

meant for the test lab

Actions to take

Identify client

segment to ring-

fence

Select team to

involve in exclusive

service of ring-

fenced clients

Choose initiatives

to run in the test

lab environment

Establish metrics/

dashboards track

progress through

the governance

structure

▪ Identify a critical mass of associates who:

– Can easily co-locate in the same geography as Journey leadership

– Will have ~20% more work than average if provided the work from step 1

– Can be easily back-filled if necessary to avoid disrupting operations in the “control” group

▪ Define plan for other departments / functions who need to cooperate to ensure a closed system

▪ Define initiative goals for the test lab

▪ Chose which initiatives are most appropriate given the identified client segment / associate pool

▪ Sequence initiatives to ensure proper measurement of results

▪ Define metrics which can be easily used to create a dashboard for each initiative

▪ Define plan to overcome metrics whose timeline will outpace the length of the test lab (i.e., will

not provide adequate sample size to accurately measure test lab results)


The test lab is a driver of a long-term, groundbreaking vision

for critical customer journeys

Impact

Scale

Fail

Time

Test lab

Long

term

vision


How to transform a specific customer journey: Driving the transformation

starts with a six step process Focus of today’s discussion

2. Prioritize

journeys

3. Journey

improve-

ment

4. Define

method to

operationalize

5. Launch

initiatives

6. Opera-

tionalize,

continuous

improve-

ment

1. Define aspiration

Customer

experience (CX)

transformation

Define overall CX

aspiration & Journeys

▪ Define overall

aspiration in terms of

CX / operational goals

▪ Define holistic set of

Journeys

Operationalize, continuous

improvement

▪ Operationalize each initiative

category, including securing cross-

functional resources, setting up

management system

▪ Define metrics to measure

improvement including feedback

loops

▪ Set up continuous improvement

Understand what matters to

customers to prioritize within

journeys:

▪ Analytics to understand what matters

to which customer groups

▪ Use to prioritize journeys based on

incidence & improvement potential

Launch initiatives in multiple streams

▪ Launch quick win

▪ Embed changes within functions where needed

▪ Pilot more complex initiatives in test lab before scaling

▪ Leverage IT resources where possible to automate

Define method to operationalize:

▪ Define initiatives and metrics tied back to program goals against

baselines

▪ Prioritize initiatives and develop plans based on application of

the appropriate tools (e.g., test labs)

Baseline existing

performance, define

improvement initiatives

▪ Baseline current

performance and customer

pain points and needs

▪ Define future experience

▪ Define initiatives to improve

CX and operational

performance


Reimagining the end-to-end process to address specific client pain

points (1 of 2)

Intake and validation

Notice

sent

Intake and

index

Validate

(T1)

B

Notice submission

Email/

fax

Client

calls?

Further

action

needed?

End

process

To client

Y

Y

N

N

ResearchAutoreply and segmentation

Auto

response

(~25%)

Segment-

ation

T1

able?

(queue)

AutoY

N NA

High-profile

T2 review/

queue

T1

researchResolved?

Y

How can inbound solve /

collect info upfront to

decrease end to end time

and total volume?

How can more

notices be routed

direct to decrease

time to

resolution?

RAF

notice?

Y

N

How can auto-

response be pushed

upstream to decrease

end to end time?

How can index values be

used to determine auto-

response / segmentation to

decrease end to end time?

T2

research

N

How can outreach be further

batched and/or have prearranged

call times to decrease non-value

add wait time?

Client communication

Phone communication

Email communication

Letter communication

In addition to

current test lab

initiatives

Linked to current

test lab initiatives

3


Agency

process

Distribution

for output

Client action

Audit

Reimagining the end-to-end process to address specific client pain

points (2 of 2)

Client

action

req’d?

AuditDis-

approved?Send client

pack

Agency

receives +

processesA

B

N

Client

notified

Client

action

Y

N

Y

ADP

debits (if

applicable)

Client

approves

Client

notifiedFunding

(>$2500)

Researcher

releases

Other client

action

Audit

neces-

sary?

Y

N

How can we work with

agencies to receive

receipt and processing

data to become more

transparent?

How can audit be

eliminated to decrease

end to end time without

sacrificing accuracy?

Client communication

Phone communication

Email communication

Letter communication

In addition to

current test lab

initiatives

Linked to current

test lab initiatives

3


The test lab will aim to reduce non-value added calls, process time and

subsequent notices to improve NPS

Shorten time from “client

sent” to “in process” to

reduce status calls /

overall process time

Reduce non-value added

call volume by ~50%

Initiative to address

N1 N2 N4 N5 N6

Segment

and triage

demand

Prioritize

notice

workflow

Standard

work for

research

Upload/inte-

ractive notice

submission

Adapt to

SBS comm.

needs

Prevent subsequent

work and follow-up by

reducing end-to-end time

3


Metrics that align to the client priorities and tied to specific initiatives

Secure

Accurate

Fast

Trans-

parent

Customer Focus Cross-Functional Alignment Frontline Empowerment

Overall

Aspiration

▪ “35+ pts

NPS

▪ 50% CE /

EE SR

reduction

▪ Top quartile

associate

assessment

of client

service

Simple

to buy

Simple

to

integrate

Simple

to use

4

Metric TargetsPrimary initiatives

N2 Prioritize notice workflow

N4 Standard work for research

N1 Segment and triage demand

A3 Amendments common back-end

A2 Flex Op. model in Amendments

A1 Clients self-serve amendments

Standardize notes from researchN10

Simplify letter reason codesN9

N11 Ensure PoA / RAA / SUI

N5 Interactive notice submission

A5 Pay ahead P&I

A8 Template common amendments

N8 Automate notice validation

N7 Eliminate validation of 130k RAF

N6 Adapt to SBS comm. needs

Count of subs. notices - 0 -

Status calls Reduce 50%

End-to-end time < 5 days

Amendment backlog Eliminate



Count of subs. notices - 0 -

First pass yield 90%


First pass yield 90%


Total notice volume Reduce 10%1

Potential data breach - 0 -

% requiring validation - 0 -

“Sent” to “in progress” Immediate

Status calls2 Reduce 50%

N3 IVR to route without like call New notice calls Reduce 50%

1 Plug. To be replaced with % of notices caused by not paying forward P&I when caused by an amendment

2 Baseline to be established


The transformation also focuses on employee feedback and

engagement to test and generate improvement initiatives

Value streams

Value streams

Beliefs and behaviors

Management systems

Daily huddles

Coaching

Process confirmations

Visual performance

Skills matrix

Standard work

(Re)set

performance

targets

Identify

deviations

from target

or

standard

Define

problem

to be

solved

Identify root

cause of

deviations

Propose and

test

counter-

measure

Implement

and sustain

The

continuous

improvement

cycle

1

2

3

4

5

6

Problem solving

Client and associate

feedback surveys

Performance dialogues

4


This creates a new way of working that empowers employees to own

and improve the customers experience

Track daily

performance

against client

expectations

Daily huddle with performance

metrics yields transparency and

individual accountability for client

experience

Raise issues

affecting client

experience

and solve

Root cause problem solving sessions

enable researchers to solve and

implement improvements for client and

associate experience

Provide full

visibility of

client demand

Visual management tools have

enabled researchers to better manage

their desk according to client

expectations

Share best

practices with

other teams to

enhance

everyone’s

ability to serve

the client

Standard work allows researchers to

contribute to the performance of the

entire organization for much greater

client impact

4


Target

Engage Leaders Recognize and

Celebrate

Build a CX

Culture

Tell the CX Story

Awareness

What is our

CX

aspiration?

Understanding

Why is this

our top

priority?

Conviction

Why should I

care about

improving

CX?

Action

What should I

do to help?

Advocacy

How can I

enlist

others?

Employees

Leaders

The transformation hinges on change management and communications

to make the “change stick”

▪ Customer

interviews

▪ Frontline side-

by-sides

▪ Develop

mindsets and

behaviors shifts

for frontline

▪ Align incentives

to CX goals

▪ Leadership

blogs

▪ Newsletter

communi-

cations

▪ Frontline CX

videos

▪ Monthly CX

recognition

program

▪ Peer to peer

weekly

recognition

program

35+ ptsNPS scores across

business units

50%Reduction in client / EE

service requests

Top

quartileassociate assessment of

client service


Discussion questions

How do you measure and track customer experience today?

What CX journeys would you focus on an end-to-end

transformation?

How would you engage your business partners on

implementing a CX transformation and test lab?

Driving rapid client experience improvement in GBS · McKinsey & Company | 6 Test lab setup steps...

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