Vodacom

1
Staffing Retention Solutions Vodacom Contact
Centre
Aptus Integrated Solutions (Pty) Ltd November
2007
2
Overview of Aptus
Vision To be the preferred Outsourcing and Human
Capital provider in Africa through service
excellence and thought-leadership

• Background
• Aptus has been in existence for over 8 years
  (since 1999)
• Developed from a management consulting company to
  a fully fledged BBBEE HR outsourcing company
• Has a regional footprint of 7 offices in South
  Africa
• Has a company in the UK (London), and activities
  in Dubai, Australia, Kuwait, Nigeria and Europe
• Operating with 5 Strategic Business Units (SBUs)
• Distinguishing ourselves through customised
  value-adding solutions that are aligned with
  customers strategies
• Service excellence is non-negotiable
• We employ only passionate, excellent,
  highly-qualified and motivated staff that have
  one main goal, to delight our customers with
  service excellence.

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Aptus Footprint
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Aptus South African Footprint
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• Regional offices form our backbone and are
  responsible for our service delivery in their
  regions
• SBUs are strategically focused business units
  responsible for rolling-out all SBU services
  across regions

Aptus SBU structure
Flexible
Payroll
Staffing
Outsourcing
HR Outsourcing
Web Usability Improvement
Training Development
General Management
Consulting
Local/
International
Recruitment
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Directors
Hannes Spies Gregg Davids Mkhululi Palane Chris
Spies
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About the presentation

• Presentation divided into 4 parts
• Our understanding of the issues facing contact
  centres
• The Aptus staff retention solution
• Our BPO solution
• Value adding services

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Part 1 Our understanding of challenges faced by
SA Contact Centers

• Staff turnover - the pool of qualified talent is
  quickly evaporating. And what once was a seasonal
  skirmish for new workers has turned into a
  full-fledged, year-round war. Companies that used
  to go after their competitors customers now
  chase after their competitors best employees.
  Attrition rate (quits, dismissals and
  retirements) on average 16 (inbound) 21
  (outbound) in SA (depending on type of call
  centre). Costs vary from the equivalent of 3.5
  times monthly salary to 5 times monthly salary.
  SA reports states approx R18000 (to recruit,
  screen and train)
• The challenge of let the magic work an
  optimum balance between people, process and
  systems (includes culture)
• Modern staff not loyal, difficult to keep, need
  to mix skills with technology to create a
  sustainable business (need to nurture talent all
  the time)
• SA heading towards unionization of agents, then
  business continuation becomes critical in case of
  strikes
• Legislation (e.g. the NCA, FAIS/FICA, Privacy and
  standards) complicates things and makes it more
  difficult

Source The SA Call Centre Industry A study
of strategy, Human Resource Practices and
Performance June 2007 and many more (available
on request)
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Our understanding of challenges faced by the
Contact Centre (Cont)

• Major challenges with the BPO models (business
  process outsourcing), which is seen as the way to
  go in future, e.g.
• Understand what to outsource and what not
  (unpacking of the business)
• Channel management between vendor and client
• Us and them syndrome (especially with
  in-sourcing)
• Technological compatibility/integration
• Quality assurance and compliance
• The challenge of qualification level. Different
  service lines requires different skill levels. Up
  the basic qualifications of agents to include
  more post matric qualifications (SA lags behind
  international norms). SA 84 of agents have
  matric, (3 less than matric), internationally
  22 are graduates (India 70 college graduates) -
  danger is they get bored,
• or
• employ candidates with less than matric for
  repetitive type work, as they tend to get less
  bored and stay longer. Is it good enough if we
  want to compete?

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Our understanding of challenges faced by the
Contact Centre (Cont)

• To improve telecommunications agent remuneration
  (lowest in SA of all call centre industries), but
  still reduce seat prices.
• one shoe fits all syndrome that does not work
  in call centres, to identify the specialised
  areas and to apply industry best practice
  business models
• To reduce training time and period before a new
  agent is competent takes between 17 26.5 days
  of training (International norm 15 days) -
  In-house call centre around 18 weeks,
  sub-contracted call centre 12 weeks for an agent
  to be fully competent (Internationally 4 weeks
  (Israel) to 25 weeks (Ireland))
• Optimal work organisation and job design,
  including flexible job descriptions, job
  discretion and flexible working arrangements, as
  well as self-managed work teams and
  process/product quality improvement. Leads to
  high levels of stress with high levels of
  routinisation and repetition

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Our understanding of challenges faced by the
Contact Centre (Cont)

• To change the perception that overall performance
  monitoring and feedback is to police agents, to
  a source of corrective action, both to identify
  training needs and improve performance
• Management style
• Acute shortage of middle management and
  supervisors to execute properly
• Executive management skill that dictates culture
• Accountability of management (abdication)
• Management style directly effects productivity,
  quality, customer satisfaction, culture, etc
  (Plan, lead, control, organised)
• Line managers have great control over how agents
  experience day-to-day. They can make them feel
  better by showing flexibility in scheduling or
  turn them off through obnoxious intrusive
  monitoring. Any sort of abuse of power or public
  humiliation is a huge contributor towards high
  staff turnover.

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Our understanding of challenges faced by the
Contact Centre (Cont)
Vodacom specific

• Vodacoms target is to sell 10 million new lines
  a month whether its through the contact centre,
  or customer liaison officers.
• Vodacoms senior management slogan Manage chaos
  constructively
• Internal politics (cooperation and communication)
  - Contact Centre vs. Vodacom Service Provider vs
  Network Division
• To improve and address mobile handset
  manufacturer communication, training, technical
  training and on going support in the contact
  centre

• e.g. BlackBerry has a new handheld device 8310
  which has being approved by Network Division 40
  days ago, the contact centre refuses to sell the
  new device as they have not received network
  certification and clarity (stumbling block)
  customers handset manufacturers are annoyed as
  customer cannot receive devices or support until
  Vodacoms internal strategy is sorted out.
  BlackBerry had given handset training, technical
  training but still not support from call centre
  to on-sell the product.  This is only one of the
  scenarios that handset manufacturers and
  customers are faced with.

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Part 2 The Aptus Staff Retention Concept

• Purpose
• Introduce a workable retention staffing model for
  the Vodacom contact centre with reduced staff
  turnover
• Reduce staffing costs at operational level (find
  optimal balance between cost and customer
  service)
• Improve cost to income ratio and ROI
• Reduce the risk of unfair labour practices
• Enhance customer service (delight the customer)
• Supply trained and enthusiastic staff
• Overcome some of the challenges stated earlier on
  in this presentation

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Introduction to the Aptus Staff Retention concept
(cont)
The original flexi-staff model evolved.
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Our proposal

• We have two potential solutions to address the
  issues mentioned
• Supply flexible staff
• different employment practices
• Finding the suitable skill by benchmarking
  (talent sourcing)
• Introduce unique performance management systems
• Skills development (on the job)
• Aptus learnership programmes and tax savings
• Our management approach
• BPO (Distributed model) - Outsourcing/In-sourcing/
  co-sourcing and/or paid for productivity model?
  (in conjunction with the Aptus flexible staffing
  model)

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1. Different employment practices

• Flexible staff, to be appointed permanently by
  Aptus, working on the Vodacom site (not temps)
  or off-site as part of BPO
• Hourly or monthly paid
• Staff receive usual statutory benefits, such as
  leave, etc.
• Additional benefits could be offered after three
  to six months of employment, such as provident
  fund, group life insurance (x3 annual salary at
  death) and funeral cover as an incentive to stay.
  Could also be offered at onset
• Medical/hospital plan could also be offered

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2. Talent sourcing

• Objective
• Benchmark positions within the organisation
  (World best practice in the Telecoms sector). Can
  use Vodacoms best three or more agents and use
  them as benchmarks.
• Job matching accordingly
• Career path planning
• Succession planning
• Measure the employee / prospective employee
• Identify specific training needs of each
  employee, as required for the position
• We provide information on each individuals
• Numeric, linguistic and spatial skills
• Motivation to work with people, data or
  technology
• Comprehensive personality profile
• Financial reward motivators
• Boredom threshold
• Level of commitment to work
• Level of enthusiasm, innovation
• Ability to cope with stress

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Talent sourcing (cont)
An example of an international benchmark
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Talent sourcing (cont)
How assessment has evolved
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Talent sourcing (cont)

• Whichever assessment tools we use a the end of
  the day, will
• Conform to the most stringent legal requirements
  internationally.
• Free of ethnic/cultural-, racial-, gender-, or
  age-related bias.
• Compliant with the requirements of the United
  States EEOC and ADA regulations (if not locally
  developed) - the most stringent
  anti-discriminatory regulations in the world
• Compliant with comparative South African
  legislation
• Provide Total View of candidate
• Learning speed (capability)
• Can they do the job?
• Motivation interest (job satisfaction)
• Will they have a passion for the job?
• Personality (job fit)
• How well can they do the job?

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Talent sourcing (cont)
In conclusion

• Aptus has access to various sources and databases
  for contact centre staff, as well as an on-line
  application system.
• We dont believe in taking staff from one client
  and employing them at one of our other clients.

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3. Performance management

• The concept of managing our employees
  performance is to introduce a performance
  management tool and system that is easy on
  staff but tough on outputs.
• Aptus has various ways to do this, one such a
  toolkit is IPMS (Integrated Performance
  Management System) - in joint venture with
  Jacques Linden/Beyond Outsourcing
• It involves extensive training for all our
  supervisors and staff
• Information will be downloaded from the contact
  centre systems and fed into IPMS to enable a
  total view of performance management
• As part of the Aptus flexible staff project, IPMS
  could be proven and made available for the rest
  of Vodacom should it be desired
• The following slides are just a brief overview of
  the system

IPMS
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Performance Management (cont)
IPMS success is borne out of your strategy being
made practical
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Performance Management (cont)
IPMS provides various toolkits
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Performance Management (cont)
Alignment is created between strategy and
recognition/reward
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Performance Management (cont)
Performance is systematically assessed and
corrected
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Performance Management (cont)
Alignment is created between the individual and
the company
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Performance Management (cont)
Performance is sustained through continuous
improvement
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Performance Management (cont)
Results are immediate, tangible and motivational

• - In the 1st business quarter (13 weeks)
• 67 lift in human capacity
• 40 lift in human capability
• 50 improvement in staff retention
• 200 to 1000 Return on Investment

Extensive reference sites available
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4. Skills development (training and development)

• Aptus will continuously do a detailed training
  needs analysis of all staff to determine needs
  for
• Short unaccredited training courses (current
  offering)
• Short SAQA accredited training courses
• Complete learnerships
• Recognition of prior learning
• Top-up training
• Induction academy
• Client specific technical interventions
• Liasse with Handsets distributors for training
  (if this fit into the Vodacom procedures), like
  BlackBerry, Siemens, Ericsson, Motorola, Nokia, I
  Mate, HTC, RIM handsets, etc
• Aptus will source relevant training as required

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5. Learnership programmes (and tax savings)

• Aptus is in the process of registering as an ESDA
  (Employment and Skills Development Agency) with
  the Department of Labour, as was recently
  promulgated by government. Closing date for
  registrations was 30 October 2007.
• Registration as ESDA will enable Aptus to de-risk
  all clients for
• Employment of the unemployed
• Payment of learner stipends
• Labour relations
• SETA interaction
• Aptus will utilise accredited training providers,
  project manage delivery and quality in
  cooperation with relevant SETA
• Client will still receive full tax benefit (R25
  000 per learner) and partly subsidised labour
  for the duration of the learnership
• Skills base of offering will be dramatically
  improved with impact on career planning, quality
  control, employability, etc.
• Employment after completion remains the onus of
  the employer

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6. Our management approach

• Appropriate planning and tracking always delivers
  better results as opposed to random fire-fighting
• By hiring the right persons turnover will be
  reduced by working on a profile of happy,
  productive and motivated agents as a benchmark.
• We will endeavour to create a fun and supportive
  environment It is easier to build a well-knit
  team when it is a fun place. Management is
  responsible for the culture sustaining such
  cultures requires careful planning, a reasonable
  budget, proper screening and assessment, and a
  clear emphasis on training.
• Compensate staff fairly similar pay for similar
  productivity
• Investigate and establish benefit programs, such
  as profit-share schemes (if part of BPO), paid
  vacations, tuition fee reimbursements, etc
• Avoid overwork terrible demotivator
• Build pool of additional staff for stand-ins, etc

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Our management approach (cont)

• Empower the team as far as possible (to make
  decisions) may apply more to BPO model
• May include setting of schedules and roles
  various team members are playing
• Will keep on training our managers to achieve
  superior productivity, how not to be over
  controlling and overly critical. Hone soft
  skills, reward them for team performance and
  diminished turn-over rate
• Exit interviews are not enough perform staff
  satisfaction snapshots quarterly (it is much
  cheaper to retain a staff member than replace
  them) act visibly on it

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Our management approach (cont)

• Examples of Fun environment
• Pleasant, functional working environment
• Strong team identification Usually associated
  with product line, speciality or expertise area
• Personalised areas
• Security of people belongings
• Colour, photographs, fun items
• Water coolers
• Branded water bottles pens
• Visible recognition for top achievers
  (certificates, stars over work area) monthly
  functions
• Fun days eg. Themes
• Creation of employee forum and representatives

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Solution 2 Business Process Outsourcing (BPO)
Off-site contact centre? Paid for productivity
model?

• Aptus partnered with SPM Direct (MIC3), award
  winning call centre for best outbound campaign
  (Gauteng) 2007
• If Vodacom would like to consider BPO, Aptus/SPM
  could pilot that for you off-site, or even
  in-source
• Infrastructure A combination of
  facilities/attributes are available, such as 300
  immediately available seats, adaptable technology
  (customizable), as SPM own the technology.
• People experienced management team, great
  sourcing abilities, training facilities and
  programs
• Processes best practice processes around many
  different process, from credit cards to cheques
  books to insurance. Multi-disciplined campaigns
• Systems full BPO managing platform available
  for multiple campaigns in-and outbound
• Compliance fully compliant to required relevant
  industry standards
• Aptus to provide staff and team leaders and
  performance management e.g. IPMS

SPM Direct Holdings was awarded the Best Outbound
Campaign Award at the Annual Intelleca
Gauteng BPO Awards 2007 (August)
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Possible costing models
BPO (cont)

• 5 costing options
• Cost per seat
• Cost per productive hour
• Cost per call model
• Cost per output (sales) on targets
• Or a combination of the above
• or
• Full risk model or shared risk model (campaign
  dependent)

Aptus will also access Governments grants
announced in March 2007 (R1.1b) for start-ups and
expanding BPO operations in the customer care and
call centre arena. Should this be successful
Aptus will invest that back in making this
venture a success story.
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More about SPM
BPO (cont)

• SPM Direct Holdings (Pty) Ltd is compliant in
  accordance with Section 51 of the Promotion of
  Access to Information Act, No 2 of 2000
• SPM Direct Holdings (Pty) Ltd is an authorised
  Financial Services Provider
• FSB Number 20464
• SPM adheres to the following acts
• PPR (Policy Holder Protection Rules)
• FAIS (Financial Advisory and Intermediary
  Services Act)
• FICA (Financial Intelligence Centre Act)

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BPO (cont)
SPM Direct BPO model one stop outsourced
facility managed by specialist
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BPO (cont)
Quality Management Focal Points
Monitoring Measurement Reporting
Remedy Assure
Installation
Q.A.
Quality Assurance
Test
System optimization
B u s i n e s s A u d I t
Q.A.
Report
Performance improvement
Sign off
Staff development
Q.A.
Recommend
Billings
Coach
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BPO (cont)
Quality offering

• Utilize QA toolbox or customise,
• you choose
• Calibration to client QA system
• Customized reporting
• Query handling special reports

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BPO (cont)
Our Benchmarks

• Strategic
• Customer profitability
• Customer Retention
• Annual Customer Value
• Lifetime Customer Value
• Customer Share
• ROI

• Operational and Tactical
• Number of Leads to Sales
• Talk time
• Contact- ability
• RPC

• Major Commercial Drivers
• Increase Sales and Revenue
• Improve Service and Retain Customers
• Reduce Costs and Increase Efficiency

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BPO (cont)
Benefits for Vodacom

• Spread of risks tasks can be spread across a
  range of sites and providers
• The opportunity for Vodacom to refocus on its
  core activities (value-adding)
• Lower costs improved capital and labour
  productivity
• Access to more effective business processes that
  will improve Vodacoms service and
  competitiveness
• Access to scarce resources through Aptus
  (widening the net)
• Access to dedicated world-class technology
• Predictable cost streams budgeting becomes more
  predictable, and the risk of changes in the cost
  structure supporting the outsourced process is
  transferred to Aptus/SPM
• Better service, including for example 24/7 call
  centre availability
• Building a culture outside of Vodacom (if
  off-site) that is different from current
  operations

e.g. Vodafone shifted some call centre work from
NZ (Auckland) to Egypt (Cairo) (Due to staffing
issues and inability to handle increased work
load as of November 2007 15,000 30,000 calls
per month 32 staff in Cairo, want to increase
to 200 000 calls per month)
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8. Additional Aptus services

• Analysis of causes of high staff turnover
  (management consulting)
• Staff satisfaction surveys (consulting)
• BPR of processes and systems (management
  consulting)
• Training of supervisors and team leaders,
  customised for Vodacom
• Develop mentorship/coaching program (management
  consulting)
• Manage Vodacom learnership program
• Review Induction programme and make
  recommendations

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In conclusion

• We take the consultative approach. Developing the
  longevity of a true partnership, we want to
  become a vital part of the organization and not
  just being a supplier.
• We want to understand your and your companys
  requirements, strategy, structure, culture and
  milestones, as well as personal pain's.
• We can through understanding you then provide you
  with a teamed approach to solving staffing
  issues in contact centers, and more.
• Providing service differentiation by delivering
  innovation and creating truly tangible value for
  you as well as a ROI for the company.
• We will customise our Vodacom solution
  specifically around your needs

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You give me the right people and I dont care
what organization you give me, good things will
happen. Give me the wrong people and it doesnt
matter what you do with the organisation, bad
things will happen. (Colin Powell. Secretary
of State and former Army General)

• Bottom line To be the best, you have to hire the
  best. To hire the best, you have to attract the
  best. To attract the best, you have to be the
  best!

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Questions?

• Thank you for the opportunity to discuss this
  with you.