Sample Balanced Scorecard for dummies

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					MISSION

X COMPANY mission is to run business operations for leading global organizations by attracting,
developing and managing outstanding talent globally to build profit and reputation for our stakeholders.

VISION

To increase the number of Fortune 500 clients that X COMPANY serves from current 56 to 70+by
providing better and faster customer service.

We are going to look at a balanced score card prepared for the customer service department. The
hierarchy of the customer service department for the travel process XYZ is as follows :


                             Chief Executive Officer, X COMPANY Group

                              Managing Director, Asia Pacific and Middle
                                                East

                                         Business Unit Leader


                                         Senior Vice President


                                             Vice President


                                       Associate Vice President


                                       Service Delivery Manager


                                            Team Manager


                                       Assistant Team Manager


                                             Team Leaders


                                            Team Coaches


                                   Senior Customer Service Agents


                                       Customer Service Agents
Now we will look at a balanced scorecard for a particular department. Let me give you a brief of this
department. It is a team consisting of 10 Customer service agents and one team leader. This team
handles inbound calls and act as sales and support. It is an airline process and the queries include :

       New bookings
       Changing reservations
       Cancelling reservations
       Reservation information
       Complaints
       Website troubleshooting

So we will try and develop a balanced scorecard to improve the customer satisfaction levels and
efficiency of this team.

STRATEGY

       To increase customer satisfaction
       Improve customer retention
       Increase revenues by promoting new sales
       Retain good talent in the organization
       Ensure performance standards are met by the agents

Now we will need to look at two things. First the team and then the team leader. Let us first take the team.

TEAM

The job responsibilities of the team agents are as follows :

       Take calls to provide customer support
       Provide solutions to web based problems
       To contribute to the revenue by promoting new and existing products
       Achieve the goals as set by the team leader

TEAM LEADER

The job responsibility of the team leader are as follows :

       Provide support to the agents in terms of process knowledge
       Ensure the targets as set by management are achieved
       Retain good quality employees in the organization
       Ensure that the team members work within the framework of code of conduct as laid down by the
        company
       Increase sales revenue by ensuring new and existing products are promoted
       To schedule agents for training programs to fill in the competency, skill and knowledge gaps
       To ensure smooth and peaceful functioning of the team as one unit
       Assess performance on a regular basis through performance appraisals
       Conduct disciplinary action against employees who are not working as per the company
        standards over a period of time
       Manage leaves and attendance of the agents
GOALS OF THE TEAM

     Improve Average Handling Time (AHT)
     Improve Quality scores
     Improve customer satisfaction (CSAT) scores



SUB GOALS OF THE TEAM

  1. AHT
            Reduce the talk time from current 645 secs to below 600 secs
         Reduce the wrap up time from current 50 secs to 40 secs
         Reduce hold time from 290 secs to below 250 secs
         To get the overall AHT from current 16.41 secs to 14.83 secs
  2. Quality Scores
         Increase quality score average from current 89.63 to above 92.00
         Ensure no more than 2 zero scores for the month
         Ensure new quality parameters are met
  3. CSAT Scores
         Increase CSAT scores from 4.95 (Out of 7) to above 5.50
         Achieve maximum number of customer appreciations
         Ensure that the customer complaints are resolved within 48 hrs



LAST 6 MONTHS PERFORMANCE
                          AHT (secs)
720
      702
700          693
                               677
680
                                        661
660
                                                     645
640                 630                                            AHT (secs)
620

600

580
      AUG    SEP    OCT        NOV      DEC          JAN




                            Quality
94    93.4

92           91.2
                                                           89.63
90
                                              88.7
88                               86.9
                     86.5                                               Quality
86

84

82
      AUG    SEP     OCT         NOV          DEC          JAN
                                                         CSAT
          7         6.31
          6
                                     5.12                                                     4.95
          5                                                      4.44          4.63
                                                4.04
          4

          3                                                                                                 CSAT
          2

          1

          0
                    AUG              SEP        OCT              NOV           DEC            JAN




                                                       FINANCIAL
                                              Last
   Objectives               Measures                   Targets                          Initiatives
                                             Score
 Increase the                                                        1. Reduce the AHT to increase the number of calls
number of calls                                                                            per hour
 taken (more                                             600        2. Provide more incentive for agents will lower AHT
                               AHT          645 secs
    calls will                                           secs         3. Put a clause in the performance appraisal for
  translate to                                                                            lower AHT
more revenue)                                                           4. Reward agents for lowest AHT in the team
                                                                       1. Make it mandatory for agents to ask for sale
                                                                                        during the call
                                                                   2. Agents to be rewarded 1% of the value of the sale
   Increase
                             Revenue                                                     as incentive
number of sales
                                                                    3. Agents with highest sales should be recognized
                                                                        4. Sales should be made a part of criteria for
                                                                                         promotions
 Increase CSAT                                                               1. Include CSAT scores in appraisals
score (for repeat          CSAT Surveys      4.95        5.5             2. Provide incentives for best CSAT scores
   customers)                                                          3. Separate training for increased CSAT scores
                                                      CUSTOMER
                                                                          1. Include CSAT scores in appraisals
                                                                     2. Separate training for increased CSAT scores
                        CSAT Surveys        4.95        5.50
                                                                  3. Special team to follow up on customers who are
                                                                                      dies-satisfied
                                                                 1. Ensure that the agents who get appreciation calls
Customer service
                      Appreciation calls                                            are recognized
   excellence
                                                                          2. Incentives for appreciation calls
                                                                 1. Older and more experienced agents will workon
                                                                          the complaints on a priority basis
                         Complaints                    48hrs
                                                                    2. Team leader will follow up to check that the
                                                                      customers are satisfied with the resolution
                                                      INTERNAL
                                                                 1. Have a briefing session with the quality person so
                                                                     that every agent is aware of the expectations
                                                                  2. Have a session with the training department to
                                                                   ensure that all the agents can clarify their doubts
 Increase quality      Quality scores       89.63       92
                                                                  3. Introduce penalties for agents with consistently
                                                                                       low scores
                                                                 4. Have random test to check the agent's knowledge
                                                                        5. Incentives for the best quality scores
                                                                   1. Best practice sharing sessions with agents who
                                                                     have consistently scored high on CSAT scores
                                                                 2. More autonomy to agents to take on spot decision
      CSAT              CSAT Scores         4.95        5.5
                                                                               in difficult situations
                                                                 3. Prepare a separate call back team who can call the
                                                                          customers back to help save on AHT
                                                                 1. Introduce documentation templates to reduce the
                                                                   amount of time agents spend on documenting the
                                                                                        records
                                                                  2. Have real time monitoring in place to ensure that
                                                        600             there is no wastage due to casual agents
   Reduce AHT               AHT            645 secs
                                                        secs     3. Introduce times on the systems so that the agents
                                                                          are aware of their AHT on every call
                                                            4. Ensure that the shifts that log out should leave the
                                                            floor early so that the other agents are not distracted
                                                               5. Penalties for agents with consistently high AHT
                                             LEARNING AND GROWTH
                                                              1. Agents to undergo training to keep up with the
Increase in overall     Performance                                               new updates
   performance           appraisals                               2. Refresher to be given to older agents to refresh
                                                                                       the basics
                                                       3. Leadership trainings to be imparted to the agents
                                                      to encourage them to take responsibilities within and
                                                                         outside the team
                                                       4. Develop a mentor mentee structure to help the
                                                                        newer agents




TEAM LEADER

GOALS OF THE TEAM LEADER

     Ensure performance metrics and SLAs are met
     Retain quality employees in the organization
     Drive sales through agents
     Conduct disciplinary actions
     Manage leaves and attendance of the employees
     Ensure smooth functioning of the team

SUB GOALS OF THE TEAM LEADER

  1. Performance
          Ensure SLAs are met
          Ensure targets for AHT,Quality and CSAT are met
          Set goals and objectives for the team

  2. Retention
          Reduce attrition from 3.21% last month to below 1.5%
          Ensure older employees are given more responsibilities in the team
  3. Drive Sales
          Increase team sales revenue from current Rs. 6.3 lacs to Rs 8 lacs
          Ensure every agent meets the sales targets
  4. Attendance
          Reduce absenteeism from current 12% to 8%
          Ensure agents log in for full 9 hours and do not exceed their breaks
  5. Discipline
          Counsel the employees on company’s code of conduct
          Issue warning letters to employees who have consistent disciplinary issues
  6. Team functioning
          Ensure harmony in the team
          Resolve personal issues in the team



LAST 6 MONTH PERFORMANCE
                         Attrition(%)
7                 6.57
    5.87
6

5                             4.73
           4.02                         4.19
4
                                               3.21
3                                                      Attrition(%)
2

1

0
    AUG    SEP    OCT        NOV        DEC    JAN




                         SALES (lacs)
7                 6.57
                                                6.31
    5.88   5.91
6
                              4.98      5.02
5

4

3                                                       SALES (lacs)
2

1

0
    AUG    SEP    OCT         NOV        DEC    JAN
                                        Absenteesim(%)
           16                                                  14.76
           14                                     12.32                    12.01
           12
           10
            8                        6.76
                5.33                                                                         Absenteesim(%)
            6
                              4.1
            4
            2
            0
                AUG           SEP    OCT          NOV          DEC          JAN




                                               FINANCIAL
                                     Last
Objectives             Measures                Targets                         Initiatives
                                    Score
                                                                  1.Set targets for individual agents
                                                8.00
   Sales               Revenue      6.3 lacs          2. Discuss sales figures for past weeks at the starting of
                                                lacs
                                                                              every week
                                                       1. ensure that the employees with less than 6 months
 Retention        Attrition rate    3.21%       1.50%      service do not leave so as to recover the cost of
                                                                                training
                                               CUSTOMER
                                                            1. Ensure that the initiatives for the agents are
                                                                             implemented
                   CSAT scores       4.95        5.5
                                                        2. Do 10 random checks everyday to ensure that the
Performance                                                agents are providing excellent customer service
                                                          1. Personally maintain a record of the complaints and
                   Complaints
                                                                        follow up to ensure closure
                                                           1. Maintain record for individual agents which can be
                 Appreciations
                                                                  used during appraisals and promotions
                                                 INTERNAL
                                                   600
                                      645 secs             1. Ensure all the agent initiatives are implemented
                                                  secs
               AHT,CSAT,Quality        4.95        5.5         2. Take disciplinary action against defaulters
Performance
                    scores                                  3.Hold weekly reviews to counsel agents on their
                                       89.63        92
                                                                                performance
                                                          4. Set goals for the week ahead for individual agents
                                                          1. Make an early warning system to flag employees
                                                                         who you think might quit
                                                            2. Ensure that you speak to individual employees at
                                                             least once in a fortnight to discuss their problems
                                                           3. Counsell the agents on career pathing and growth
 Retention       Attrition rate        3.20%     1.50%
                                                                              opportunities
                                                              4. Take up the issues with HR on a priority basis
                                                                       regarding employee welfare
                                                          5. If you are not able to resolve the issue escalate it to
                                                                         your superior immediately
                                                          1. Before planning the schedule discuss employees and
                                                                       accordingly adjust weekly offs
                                                          2. Encourage employees to apply for important leaves
                                                           like holi or diwali well in advance to avoid cluttering
Attendance       Absenteeism          12.00%     8.00%     3. Ensure that any transport issues are taken up with
                                                           the transport department so as to avoid absenteeism
                                                                          due to lack of transport
                                                            4. Take disciplinary action against agents who have
                                                                      more than 2 absents in a month
                                                           1. Advise all the employees of the company's code of
 Discipline     Warning letters
                                                           conduct and the disciplinary action that can be taken
                                                           1. Conduct team outings to keep the team morale up
                                                          2. Resolve interpersonal issues through counseling the
                                                                                   agents
                                                          3. Be proactive and look out for any issues that can be
                                                                              bad for the team
   Team       Interpersonal issues,                        4. Set team objectives that the team needs to achieve
functioning        team work                                                    collectively
                                                          5. Ensure that every agent is appreciated for his
                                                                      performance in the team
                                                        6. Take up the issues that your team faces with the
                                                            senior management or HR or the concerned
                                                                            department
                                         LEARNING AND GROWTH
                                                         600
                                          645 secs                    1. Ensure that the agents go for regular trainings
                                                         secs
                                                                    2. Maintain a record of which trainings an agent has
                                            4.95          5.5
                  AHT,CSAT,Quality                                                        attended
Performance                                                         3. Attend the training yourself to keep yourself up to
                       scores               89.63         92
                                                                              date with the latest development
                                                                 4. Conduct monthly test to check the knowledge gaps
                                                                                     of the team




       Now all the goals that have been set have to be achieved and the agents or the team leader has to
       assessed on the parameters that have been laid down in the balanced scorecard. Assessment is very
       important as we need to be able to find out how much of the goal the person has achieved. It is not fruitful
       just to set targets if there is no attention paid to the results.So I have provided a sample assessment
       sheet that can be used to measure the performance against the set targets.




                                                        FINANCIAL
                                                                          Target Date of
  Objectives      Focus Area    Target              Initiative                               Weightage     Achievement
                                                                           completion
                                            1. Reduce the AHT to
                                          increase the number of         31st March 2010          50
 Increase the                                   calls per hour
  number of                                    2. Provide more
  calls taken                             incentive for agents will      31st March 2010          25
                                 600              lower AHT
  (more calls        AHT
                                 secs       3. Put a clause in the
 will translate
    to more                                performance appraisal         31st March 2010          15
   revenue)                                     for lower AHT
                                             4. Reward agents for
                                                                         31st March 2010          10
                                           lowest AHT in the team
                                   1. Make it mandatory for
                                     agents to ask for sale    31st March 2010   30
                                          during the call
                                         2. Agents to be
                                      rewarded 1% of the
  Increase                                                     31st March 2010   25
                                       value of the sale as
 number of      Revenue   8 lacs            incentive
    sales                           3. Agents with highest
                                         sales should be       31st March 2010   25
                                           recognized
                                   4. Sales should be made
                                      a part of criteria for   31st March 2010   20
                                           promotions
                                   1. Include CSAT scores in
                                                               31st March 2010   45
Increase CSAT                               appraisals
   score (for    CSAT              2. Provide incentives for
                           5.5                                 31st March 2010   35
     repeat     Surveys                best CSAT scores
  customers)                       3. Separate training for
                                                               31st March 2010   20
                                   increased CSAT scores

				
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Description: Sample Balanced Scorecard for dummies