When we talk about the importance of defining the change in terms of business, technical, and human objectives one of the most frequently asked questions we get is, “What exactly are the human objectives?” These human objectives represent the behavioral changes we anticipate as a result of the project or strategic initiative. The more precisely we can define these objectives up front, the better we are able to measure the improvement on the back end.
In this real-world case study, we tell the story of how an industry-leading health insurance provider used key performance indicators alongside the
Accelerating Implementation Methodology as a powerful combination for gaining Sponsorship, building reinforcements, creating readiness for change, and measuring Return on Investment. On June 18, we will be conducting the second in our two-part complimentary webinar series on Using Measurement, where we will explain more about using Key Performance Indicators with the
AIM methodology for greater project success.
Register Now to reserve your webinar participation.
The Client’s Situation
The client was involved in a business re-engineering effort designed to improve call center efficiency while simultaneously improving customer satisfaction. During the early stages of the project, the team worked with Sponsors in the line business to define the strategic business goals for the project, which included:
- Reducing administrative costs
- Creating excellence in customer service
- Streamlining and standardizing processes enterprise-wide
- Increasing associate satisfaction
These goals were then translated into key performance indicators (KPIs). The team initially began with 35 KPIs that were then distilled down to the four most critical indicators to be measured.
This distillation process was extremely important, because the team was able to focus on four very clear measures that could be quantified and used to both measure success and to talk to Sponsors in the Sponsors’ frame of reference. The team selected these four measures:
1. Average handle time
2. Single call resolution
3. Cost savings resulting from efficiency and productivity improvements
4. Associate engagement scores
AIM Served as the Implementation Framework
As we recommend, the AIM steps and deliverables were “unbundled” and integrated into the project plan. Based on previous implementation history, the client identified up-front likely barriers to implementation success. In addition, from the beginning, the project team focused on getting to full implementation rather than installation of new technology and new business processes, both of which were key elements of the initiative.
Beginning with the first step in the AIM process, Define the Change, the team involved Sponsors in order to demonstrate early-on the partnership between IT, the line business, and the project team.
Given the complexity of the organization, key role maps were essential. Through the key role mapping process Reinforcing Sponsors were identified that could otherwise have been forgotten. Attention was paid to developing reinforcements that aligned with the desired performances.
Communication plans focused on two-way interaction so that sources of resistance could be brought out into the open and managed, rather than festering below the surface.
Key Performance Indicators Drive Measurable Results
By combining the use of KPIs with the AIM tools, steps and deliverables, the project team delivered impressive results to the organization:
- Average Handle Time decreased from 361 seconds to 309 seconds, a 14% reduction, representing a $17.3 million dollar plus savings
- Single Call Resolution (the ability to resolve a customer issue on the first call) increased from 68% to 83%, a $35.02 million savings
- Associate engagement increased from 73% to 88% in year 3 after implementation
To learn more about how you can use Key Performance Indicators with AIM, Register Now for our complimentary webinar with David Nielson on June 18 at 11:00 am ET, 10:00 am CT, 9:00 am PT, 15.0 GMT.
