bcbsf-case study final

BlueDirectBlueCrossBlueShieldofFlorida

MakingBestPracticesBenchmarkingaTransformationalTool The Challenge"So…wheredoIgofromhere?"JackieCoffeyaskedherself.ShehadjustbeennamedDirectoroftheBlueDirectcallcenter,arelativelynewandinexperiencedinboundsalesteamforBlueCrossBlueShieldofFlorida(BCBSF).DecidingwhattodowasamajorchallengenotonlyforJackie,butforallofBCBSF,becausethecompany’smarketwaschangingrapidly.LayoffsandbenefitreductionsatsomanycompaniesinFloridahadleftincreasingnumbersofpeoplewithoutevenbasichealthinsurancecoverage.Thisrepresentedamajoropportunity,butthecompetitionwasrapidlyproliferatingaswell.WhileBCBSFheldaprivilegedmarketpositionintermsofbrandingandconsumeracceptance,otherinsurerswerepro-activelytargetingtheexpandingmarketforhealthinsuranceamongnewlyself-employedpeople,aswellastheseparatebutalsogrowingmarketofseniorcitizensseekingsupplementstotheirgovernment-fundedhealthbenefits.ManagementfeltthatBlueDirectneededmorethanafewtweaks.Theywantedtogiveitamajoroverhaulandprovideatrueframeworkforsuccessgoingforward.Management Education for Best PracticesTheManagementteamdecidedthatalittleeducationcouldgoalongwayinhelpingpinpointwaysforBlueDirecttosucceed.Withthesupportofseniorleadership,includingVicePresidentChuckSartiani,Jackieenrolledinafour-daycallcenterleadershipcourse.Thecoursecoveredcallcentermanagementissuesrangingfrompeopletoprocessestotechnology,withanemphasisonbasicblockingandtacklingandpracticalapplications.Theclasseswereinteractiveandfilledwith"takeaways"thatwerewrittenontheboardwheneverapointwasmadethatresonatedstronglywiththeattendees.Attheendofeachdaytheinstructornotedthateveryoneshouldhaveatleastoneortwo"takeaways"thatcouldmakearealdifferencefortheircenter.However,Jackiehadnotsigneduptogetjustoneortwoofanything!Shewantedtopulltogetherasmanybestpracticesaspossibleinordertosystematicallyandmethodicallyputtogetheracomprehensiveplan,thenmeasureprogressduringexecutionoftheplan.

TheSOURCEforContactCenters

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Expert AssessmentShortlyafterfinishingthecourse,theBlueDirectteaminvitedtheinstructortodoanassessmentoftheBCBSFcenter,startingwithacompletebaselinebenchmarkofwherethingsstoodatthattime.Keyoperationalmetricsfromtheirmanagementreportsandconscientiouslycompletedthebenchmarksurveyquestionnaires.Theyalsoworkedwiththeinstructortocompletesurveystocollectcallersatisfactionandagentsatisfactiondata.UponenteringtheBCBSFLcallcenter,theinstructorwasstruckbytheMissionStatementhangingprominentlyonthewall:"Tobecomea‘HealthSolutions’organizationandperceivedas‘trustedadvisers’”.Theyhadtakentheinstructor’sclassroommessageregardingtheimportanceofMissionStatements,andhadpromptlycraftedastatementaroundwhichallcolleaguescouldrally.Theteamwasdeterminedtobenchmarkallmanagementdecisionsagainstthisstatementofprinciples.Asonemanagerstated:"HavingthatMissionStatementonthewallservesasaconstantremindertoallofus,individually,andasateamofagents,supervisorsandmanagers.Ithasreallyhelpedmefocusmyowneffortsaswell."What did the benchmark metrics and analyses tell the team?Theinstructor'sorganizationhadcreatedthreeimportantdocumentsforJackieandBCBSF:abenchmarkingreport(whichshowedBCBSF’sperformancemetricssidebysidewiththeaverageforitsindustry),acallersatisfactionreport,andanagentsatisfactionreport.Fromthesedocuments,somenotablestrengthswereevident,butalsosomeworrisomeweaknesses,whichdemandedaction.Onthepositivesideweresuperiorresultsinfirstcallresolution,lowchurnrate(indicatinggoodcustomerloyalty),salesrevenueperagent,agentoccupancy,andutilization.Ontheotherside,thecenterperformed“inthered”(belowindustryaverages)inagentsatisfaction,transfers,averagespeedofanswer,timeinqueue,holdtimes,andabandonrate."Embrace the Red!"BlueDirect’sVicePresident,ChuckSartiani,setanimportanttonewithregardstotheseresults.Insteadofbeingupsetwiththefindingsthatwerebelowindustryaverages,hedeclaredthatitwashispolicy"toembracethered."Bythathemeantthattheteamshouldnotshyawayfromaddressingthenumbersthatbenchmarkedbelowindustryaverages(theseweredisplayedinredonalltrackingcharts).Rather,theteamshouldwelcomefullexplorationandanalysisofproblematicmetrics,talkaboutthemopenly,andfindsolutionsforthemasateam.Asampleofthe"explorations"arerecordedhereforillustrativepurposes,thoughtherewereseveralotherswhichmadeanimportantdifferenceforthecenteraswell.



Average Speed of Answer, Queue Time, Transfer Rate and Abandon Rate

Thesemetricspointedtoseveralpotentialprocessandtechnologyissueswhichtheinstructor’sorganizationandmanagementteamdugintoinamethodicalfashion.Problemswerefoundwiththecallroutingprocess.Chiefamongthesewasthefactthatinitialmis-routingfromtheIVRcontributedheavilytoatransferratethatwasthreetimestheindustryaverage.Thisinitialmis-routingwasalsoclearlyasourceofdownstream"backup"inthesystem,whichexacerbatedexistingissueswiththeSpeedofAnswer,QueueTime,andAbandonRate.Itwasnotcleariftherewereimportantdemographicissueswiththeirsystemaswell.Inadditiontotheclearagedistinctionbetweenself-employedcallersandcallersover65,theteamwonderedifotherfactors,suchasgender,incomeandeducation,mighthaveanimpactonhowusersperceivedtheirphonesystem.Managementreactedbycommissioninganin-depthanalysisoftheIVR(inbothEnglishandSpanish),delvingintoalloftheflowsandbusinessprocessessurroundingcallidentificationandrouting.Asaresultofthisproject,theyfoundthefollowing:

• Contrarytoexpectations,demographicindicators(age,gender,income,education)wereweaktonon-existent.

• Satisfactionvariationsamongthethreemajorcalltypes(sales,statusandservice)weresignificant

• ThereexistedimportantopportunitiestoclarifyIVRpromptsforimprovedunderstandingandflow



• Telephonytoolswerethegreatestdissatisfactionsources.Elevenpercentofcallerscommentedonserviceortechnologyproblems

• DissatisfactionwasalsoexpressedwithhavingtogiveaSocialSecuritynumberforidentificationpurposes,sometimesmorethanonce

• Therewasasignificantnumberofrequestsforspecificself-serviceapplicationstoroutecallstoagentsasquicklyaspossible.

ThisstudyprovidedthedataandanalysisnecessarytomakesubstantialchangesintheIVRprompts,routingandtools.Theresultsincludedthefollowing:

• ThecallflowthroughtheIVRwasflattenedfrom5to4levels,andrepetitiverequestsforidentifyinginformationwereremoved.

• Self-serviceapplicationsweredeveloped.Thesechangesaredeliveringhigherlevelsofcallersatisfactionand,bydirectingthecampaigncallstotheappropriateagent,BlueDirectisrealizinga$240,000costsavingsannually.Whenthecenterwasbenchmarkedayearlater,thefollowingpositivechangeshadoccurred:thetransferratehadbeencutinhalf,theaveragespeedofanswerwasdown70%,queuetimehadfallen68seconds,andabandonsweredownover28%.Notonlyhadthishighlysuccessfulmetrics-inspiredfocusimprovedthequalityofserviceforcustomers,butitmadeagentshappieraswell.Theynolongerwastetimeroutingcallstothecorrectdestinationanddonothavetodealasmuchwithirritatedcallers.Thisallowsthemtoconcentrateonprospects,improvingtheirsalesrate,and,mostimportantly,earnmorecommissions.Italsosavedinagenttimeandtelecommunicationscosts.Agent SatisfactionAgentsatisfactioncorrelateswellwithincreasedsalesandimprovedcallersatisfaction.Happyagentsmakeforhappycallers,andhappycallerstendtobecomepayingmemberswithrecordsofloyalty.However,theoriginalagentsatisfactionsurveyshowedthatagentsatisfactionintheBCBSFcenterwasataverylowlevel,scoring75%lowerthantheindustryaveragein“topbox”agentsatisfaction.Abenchmarkedagentsatisfactionmetricatthislevelwasaveryserioussourceofconcern.Rarely,however,isonefactor



aloneresponsibleforsuchresults;abroadapproachmustbeusedtotracerootcauseinfluencersbacktovariousbrokenprocessesinthecallcenter.Usingtheagentfeedbacksurvey,aswellasagentfocusgroups,theinstructoruncoveredanumberofsourcesofdissatisfactionforagents,including:



Training - Traininghadbeenveryspottyinthepast,especiallyamongmoresenioragents.Senioragentsfeltstronglythattheyhadnotreceivedoptimalsalestrainingandthatthis,inturn,causedthemtoregisterweakersalesperformanceandlowercommissionratesthanemployeeswhohadbeenmorerecentlyhiredandwhohadreceivedbettertraining.

Advancedsalestrainingwasquicklymadeavailabletoseasonedagentswhowishedtotakeit.Thetraining,whichfocusedoncallcontrolandsalesresults,producedimmediateandmeasurableimprovementsinproductivity--which,inturn,boostedagentmorale.BlueDirectalsointroducedanimproved,moreefficientnew-hirecurriculum.Asaresult,newhiretrainingtimewasreducedfrom12weeksto6weeks--and81%ofthenewagentshitsalesplanwithin90days.Understandingthateducationneededtoinvolveeveryoneandbeongoinginnature,BlueDirectlaunchedorganizedtraining“blitzes”involvingallmanagers,supervisors,andtrainersonthefloorsimultaneously,focusingonspecificsalesskillstokeeptheagentsengaged.



Trust-Inparallel,themanagementteamtooknoteofthefactthattheAgentSatisfactionReporthadindicatedtherewasanissueofconfidencethatneededtobeaddressed.AnopendoorpolicywasimplementedandtheManagementteammadeaconcertedefforttoactivelyinteractwithalloftheemployeesinastraight-forward

mannerateveryopportunity,formalandinformal.Ayearlater,focusgroupswiththeagentsindicatedthatSeniorLeadersrecognizedallofthem,calledthembyname,andhadearnedtheirconfidence.Theagentsknewthattheentireleadershipteamwasnotonlylistening,but,moreimportantly,theyweresolicitingandincorporatinginputfromtheagentsaswell.Theydidthisboththroughone-on-oneinteractionsandthroughanagentcommitteewhichwasformedtoprovidetimelyinputtomanagement.Overall,thiscategoryofagentfeedbackimprovedby349%fromtheinitialreport

Coaching and Communication Anotherareaofweaknesswascommunication.One-on-onesessionsbetweenagentandsupervisorswereinconsistentatbest.Theyweredelayedorcanceledregularly.Asaresultofmanagementinitiatives,behaviorchanged,butmoreimportantly,theattitudeaboutthesemeetingschanged.Supervisorsweregivenaddedtrainingbyanoutsideexpertonhowtobeaneffectivecoachandmentorforsales



agents.Meetingswerenolonger“optional”activities;supervisorswentintothemwithbetterinformationandmoreeffectiveplans.Therewasoversightfrommanagementandaccountabilitydemandedofthesupervisorstoassurethatthequalityandfrequencyoftheone-on-oneswasoccurring.Duringtheinitialassessment,theinstructorhadencouragedherandherfellowmanagerstoviewthesupervisorsas"agentenablers"and"agentchampions."Supervisorsshouldnotbeseenprimarilyasdisciplinariansorrecordkeepers,butratherasmentor-cheerleaderswhoencourageagentsandgivethempointersonhowtomakemoresalesandthusmakemoremoney.Everyinteractionwastobuildtheagent'sconfidenceandeverycoachingsessionwastobefocusedonhelpingtheagentachievesuccess.Thecollectiveimpactofthesechanges(andothersnotrecountedhere)wasanexceptionalincreaseintopboxagentsatisfactionofover500%.Bytakingthebenchmarkingresultstoheartand"embracingthered,"managementhadturnedaroundaproblemsituationinapproximately18months.Caller SatisfactionTheBlueDirectManagementteamunderstoodthatcallersatisfactioniscriticalthroughoutthesalesprocess.While



theircallersatisfactionwasclosetoindustryaverage,theBlueDirectteamwantedtobeanindustryleaderincallersatisfaction.Theyknewtherewereopportunitiestoimprove

thecaller’sexperience.Anumberofinitiativeswereaddressedthataimedtoincreasecustomersatisfactionandenhancetheagents'abilitytoclosesales,aswellasensurethatexistingcustomersstayedinthefold:

1. FirstCallResolutionhasalwaysbeenareliablepredictorofCallerSatisfaction.BlueDirectengagedanexperiencedvendorwhichimplementedapost-callIVRsurveytoascertainCallerSatisfactionandFirstCallResolutiondirectlyfromthecaller.TheyconductedtwotothreesurveysperAgentpermonth;andsupervisorssharedthecustomer’sresponseswiththeAgentsimmediately.Bylisteningcloselytocallsthatgarneredtopboxandbottomboxscoresfromcallers,BlueDirectwasabletocreateacoachingprogramthatreinforcesappropriatebehavior--andalsoleadstoincreasedsales.

2. AverageSpeedofAnswerisanotherpredictorofcallersatisfaction.As

indicatedabove,BlueDirect’sresultwastwiceashighastheindustry,meaningthattheykeptpotentialbuyerswaiting,onaverage,twiceaslongastheirindustrycompetitors.TheIVRstudymentionedabove,alongwithotherchangestothetelephonyandworkforcemanagementsystem,allowedthecentertoimprovesignificantly.



Pacing Considerations in Change Processes Whileworkingforbetterment,theteamunderstoodthattryingtodotoomuchatoncecouldresultinmeltdownsthatworkedagainstimprovement.So,"embracingthered"neededtobetemperedby"pacingthechange".Managementmonitoredthesituationcloselyandlayeredinimprovementinitiativesasquicklyasorganizationalrealitiesallowed.Theresultsweregratifyingandincludedthefollowing:

• Loweringagentturnoverandimprovingtimetocompetency.Changesinrecruitment,trainingandtalentmanagementmadeamajordifference.Thetoplinenewannualrevenueof$7.8Mfortheseagentswasaneyeopenerforseniormanagement.Theinvestmentinthisinitiativerepaiditself23timesoverwithinthefirstthreemonths.

• WorkforceManagementimprovements:o helpedbringtheabandonedcallratedownfrom10%to3%.BCBSF

estimatedthatthisallowedittobook$5.1Mmoreinannualrevenue.Comparedwiththeinvestment,thisbookedbusinessprovideda14.6Xreturnoncostinthefirstyear.

o enableda13%productivitygain(1.1hoursperagent/perday),whichresultedinmorethan$10Minannualrevenuegain.

• WebSales–BlueDirectunassignedwebsalescostpersaleof$17is86%lowerthanthe$124costbornewhenusingtheexternalServiceBureau,deliveringanongoingannualsavingsof$600,000andproviding$18,000,000innewannualrevenue.

Insum,theBlueDirectteamleveragedbenchmarkingasakeyelementtofocusattentionandtohelpdrivechangeintheirorganization;theytookownershipoftheirresultsandkepttheiragentsengagedthroughouttheprocess.Eighteenmonthslater,theirimprovementsarestrikingintermsofmorale,quality,salesresults,andcostsavings."Benchmarkingdoesn'tdothework",saidJackieaboutBlueDirect'sadventureinbestpractices,"butitshowedusexactlywhereworkwasrequired.Benchmarkingwasanessentialtooltoidentifystrengthsandweaknesses,andallowustobecomecertifiedasaCenterofExcellence.”VicePresidentChuckSartianiadded:”by‘embracingthered’withopenmindsandateamapproach,wehaveshownwecansucceed.Youcanbesurethatwewillbenchmarkourresultsregularlytomonitorourprogressfromnowon....becauseournewsloganis:‘maintainthegain!’”

bcbsf-case study final

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