The Squawk Point

Organisational Mechanics

  • Home
  • Blog
    • People
    • Data
    • Process
    • Wild Cards
    • Index
  • Podcast
  • Book

A Stitch in Time…

19 November, 2014 by James Lawther 4 Comments

Running a customer service centre is hard

It is a constant battle, trying to minimise cost and maximise customer service.

But we all know the game, we get employed to play it:

  • Squeeze your head count down as far as you dare
  • Ride the variations in customer demand
  • Manage the backlog
  • Set up a turnaround time target or service level agreement
  • Edge as close to it as your nerve allows

Conventional wisdom is to average out your customer demands over time (make your customers wait) then you can minimise your costs. Staff your centre like this:

Call Centre Staffing

It is a bit like playing chicken

Staff close to the edge and sooner or later something will go wrong, a sales promotion will mess up, or a statement run will fail and wallop, you will have more customers calling you than you can deal with and weeks of stress digging your way out:

Picture2

But most of the time you will be fine. And your costs will look good.  — Honest.

But are you fine most of the time?

Do your customers care about your S.L.A?  Most of the time you are sitting on repeat calls and chase paperwork.  You might be holding your own and hitting your S.L.A. but how much of that customer demand is chase demand?

There is another way

Overstaff… resource your contact centre like this:

Picture3

Deal with today’s work today.

I know what you are thinking, “that will cost me money”. But will it?  If you deal with today’s work today you might just get less work tomorrow.

And besides, what are you here to do?  Service your customers or play chicken with them?

What does your job title say?

A stitch in time…

If you enjoyed this post click here to have the next delivered straight to your inbox

Stitches

Read another opinion

Image by sarahakabmg

Share
Share on LinkedIn
Share
Share this

Filed Under: Blog, Operations Analysis, Tools & Techniques Tagged With: abandon rate, call centre, capacity planning, customer focus, service improvement, supply and demand

About the Author

James Lawther
James Lawther

James Lawther is a middle-aged, middle manager.

To reach this highly elevated position he has worked in numerous industries, from supermarket retailing to tax collecting.  He has had several operational roles, including running the night shift in a frozen pea packing factory and carrying out operational research for a credit card company.

As you can see from his C.V. he has either a wealth of experience or is incapable of holding down a job.  If the latter is true this post isn’t worth a minute of your attention.

Unfortunately, the only way to find out is to read it and decide for yourself.

www.squawkpoint.com/

Comments

  1. maz iqbal says

    19 November, 2014 at 10:02 pm

    Hello James,

    As one who advocates Customer Experience, loyalty and revenue growth the second course of action shows up as smarter. And that is what i would pursue as the CEO. However, if I am not the CEO, merely the Contact-Centre Manager, I will focus on costs. Different games call forth different courses of action.

    All the best
    maz

    Reply
    • James Lawther says

      23 November, 2014 at 4:27 pm

      I guess it depends on the CEO Maz

      Reply
  2. Adrian Swinscoe says

    22 November, 2014 at 11:11 am

    Hi James,
    Would you say that ‘chase demand’ is the same as ‘failure demand’ in John Seddon systems thinking speak?

    Adrian

    Reply
    • James Lawther says

      23 November, 2014 at 4:27 pm

      Absolutely

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Explore

accountability assumptions beliefs best practice blame bureaucracy capability clarity command and control communication complexity continuous improvement cost saving culture customer focus data is not information decisions employee performance measures empowerment error proofing fessing up gemba human nature incentives information technology innovation key performance indicators learning management style measurement motivation performance management poor service process control purpose reinforcing behaviour service design silo management systems thinking targets teamwork test and learn trust video waste

Receive Posts by e-Mail

Get the next post delivered straight to your inbox

Creative Commons

This information from The Squawk Point is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
Creative Commons Licence
Customer Experience Update

Try This:

  • What is Sample Bias?

  • Fish Bone Diagrams – Helpful or Not?

  • The SMART Goal Myth

  • Everybody Cheats

Connect

  • E-mail
  • LinkedIn
  • RSS
  • YouTube
  • Cookies
  • Contact Me

Copyright © 2025 · Enterprise Pro on Genesis Framework · WordPress · Log in