First Wealth Bank Had Outsourced Its Customer Interaction ✓ Solved

First Wealth Bank Had Outsourced Its Customer Interactive Services

First Wealth Bank had outsourced its customer interactive services operations to Customer Calling Services (CCS) about 5 years ago. First Wealth Bank guaranteed minimum volume of 300,000 calls per year with the rate of $4.50 USD. Over the last two years, the service performance of CCS has deteriorated to such an extent that First Wealth Bank is considering cancelling the contract. CCS has been collecting the data on the duration the representatives were available to answer the calls and the hold time.

The performance measures that were of interest to First Wealth Bank were: 1. Provide first call resolution to at least 75% of calls 2. Resolve minimum 90% of inquiries within 5 days. Furthermore, First Wealth Bank was monitoring the data on number of people who were unable to get answers from CCS. The Quality Assurance (QA) department conducts regular inspections of recorded conversations between the callers and representatives. A rating based on the scale of 1-5 is assigned to the calls based on friendliness, accuracy, and suitable advice given to the callers.

CCS also wants to ensure that the Average Handle Time (AHT) is maintained during the course of this project. CCS has 6-8 months to turn around the performance of the company or potentially lose contract.

Process Capability Indices and Performance Assessment

To address the decline in service quality at CCS, it is essential to evaluate the process capability indices for the critical performance metrics of First Call Resolution (FCR) and 5 Day Resolution (5DR). These indices provide insights into how well the outsourced services are meeting defined specifications.

Exercise 1: Process Capability Indices

The specification limits for FCR are defined as Lower Specification Limit (LSL) = 75% and Upper Specification Limit (USL) = 100%. To determine the process capability index (Cp), we can calculate the actual performance of CCS based on the data provided in Table 1, focusing on the FCR percentage.

The following equation is used to calculate Cp:

Cp = (USL - LSL) / (6 * σ)

Where σ represents the standard deviation of the FCR percentages. Based on the data shown in Table 1, we calculate the average percentage and standard deviation of FCR. After computing these values, we can plug them into the Cp formula to interpret the performance.

5 Day Resolution Analysis

Similar to FCR, the specification limits for the 5 Day Resolution are LSL = 90% and USL = 100%. The same process will be employed to calculate the process capability index for 5DR. By understanding the proportion of inquiries resolved within five days, we can gauge the adequacy of CCS’s performance in this area as well.

Exercise 2: Data Analysis and MSA

The data shown in Table 2 represents qualitative ratings based on call assessments from QA analysts, John and Miranda. To verify the repeatability and reproducibility of these assessments, a Measurement System Analysis (MSA) would be appropriate. Specifically, we can apply the ANOVA method to evaluate the variance caused by different factors involved in the rating process.

Notably, observing the variation in ratings between different analysts highlights the potential for inconsistency in quality assessments, indicating a need for improved calibration or training for the QA analysts to minimize variability and biases in their judgments.

Potential Causes of Failure to Meet FCR Targets

CCS's inability to meet First Call Resolution (FCR) targets consistently can be attributed to several factors:

• High turnover rates leading to a lack of experienced staff.
• Insufficient training for new employees, potentially impacting performance.
• Poor motivation and morale among call center representatives.
• Inefficient processes leading to longer hold times and reduced call handling capabilities.

Addressing these issues will be critical to enhance service delivery and client satisfaction.

Proposed Solutions

In order to remediate the identified shortcomings, several solutions may be proposed including:

• Implement a robust training program for new hires focusing on skills necessary for achieving FCR targets.
• Introduce employee engagement initiatives, such as recognition programs to boost morale and motivation.
• Review and streamline processes to ensure efficiency and reduce customer hold times.
• Use data analytics to identify patterns causing delays in inquiry resolutions, enabling targeted improvements.

Exercise 3: Failure Mode and Effects Analysis (FMEA)

Employing a Failure Mode and Effects Analysis (FMEA) on the solutions proposed will allow CCS to identify and mitigate potential risks associated with these enhancements. For each solution implemented, it is prudent to assess:

• The failure modes that could occur (e.g., insufficient training, employee disengagement).
• The potential effects of these failures on service quality (e.g., unsatisfactory FCR, increased customer dissatisfaction).
• The likelihood of these failures and their impact, using a risk priority number (RPN) to prioritize actions required to mitigate risk.

This systematic approach can assist CCS in identifying critical failure points and implementing measures to enhance their service quality over the designated turnaround period.

Conclusion

First Wealth Bank’s decision regarding the continuation or termination of their contract with CCS hinges on the ability of CCS to address performance shortcomings effectively. Utilizing methodologies such as process capability analysis, measurement system analysis, and FMEA will provide valuable insights into the current status of operations and potential improvements necessary to regain client trust.

References

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