How to Build a World-Class Back Office

Paul LeamonDirector, Back Office Product Management

NICE OverviewBack Office ChallengesWhat is a World-Class Back Office?How to Build a World-Class Back Office?Business Impact

Agenda

2

Software solutions that take organizations from insight-to-impact, addressing three main business segments:

• Enterprises –enhancing the customer experience and increasing revenues through a broad variety of customer interaction channels

• Financial institutions – ensuring compliance and preventing financial crime

• Government agencies, public and private organizations – ensuring safety & security

NICE (NASDAQ: NICE)

~25,000 Customers

$792-802M

Expected full year non-GAAP 2011 revenues*

>80%Fortune 100 Customers

>35Local Offices

>1,000Service

Professionals

~3,000 Employees

>150 Countries

1986 Founded

* Per guidance provided on November 3, 2011

The NICE Offering

5

NICE ENTERPRISE

Customer Interactions

NICE SECURITY

Safety & Security

NICE ACTIMIZE

Financial Risk & Compliance

Capturing the intent of individuals

Multi-channel interactions and transactions

Multiple data sensors

Intent

The Essence of Our Offering

6

Insight Impact Extracting insights using advanced analytics

Real-time cross-channel analytics

Multi-sensor data correlation

Making an Impact on: Customer experience Regulatory compliance Operational efficiency Financial crime prevention Safety and security

!

BACK OFFICE CHALLENGES

Back Office Frustration

How to improve employee performance?

How to improve compliance?Backlogs are too large!Overtime costs are over budget!She believes that there is hidden

capacityHow long does it take to process back

office work?How to accurately plan for growth?Need to improve quality and lower

reworkNow her team has to handle calls too!

Mary is Director of Back Office Processing

Example of AHT Difficulties

Back Office Challenges – Accurate AHT

What the system recorded: AHT = 2 hours

Employee took a Loan Application from the queue Loan processed to Underwriting

11:00 13:00

What really happened: AHT = 30 minutes

Employee took a Loan Application from the queue Loan processed to Underwriting

11:00 13:00

Loan Facebook eBay Lunch Netflix Facebook Loan

11:15 11:30 11:45 12:15 12:30 12:45

Multiple systems with no single source of data Employees can work on multiple items concurrently No data for manual or paper-based processes

Imaging

CRM

Email

Fax

Loans

Billing

Sales

If only she had technology like the call center!

ACD

Matt is Director of the Call Center

Time and Motion Studies

Manual Employee Work Reports

Workforce Management

Call and Screen Recording

Quality Management

Speech Analytics

Customer Feedback

Mary is Director of Back Office Processing

Performance Management

Back Office Technology Gaps

Data Controls

Management Information Systems

What is a World-Class Back Office?

When compared to the average of their peers, they have:

Higher efficiency and productivityConsistently meet or exceed their service goalsLower back office costsHigher customer satisfaction and loyaltyHigher qualityLower regulatory finesHigher employee satisfaction and lower attritionLower contact center costs Intelligently share work with the contact center

INCREASE EFFICIENCY, PRODUCTIVITY, MEET SERVICE GOALS AND LOWER COSTS

Desktop Client

CONTEXTUAL CONNECTORS

GenericWeb

Services

Real-timeDB

Access

Real-time GUI

MonitoringConnector

Real-Time Activity Monitoring of Desktop Work

Business Rule EngineInterprets and DecidesOn Appropriate Action

and Data Collection

Event

Data Event

Event

Event

Event

Event Event

Event

Event

Multiple Applications on User’s Desktop

Works Across Virtually ALL Application Types!

Payback Example

Back Office: 500 Employees

Average Salary: $40,000 / yr

Annual Payroll (without OT): $20,000,000

Accurately Track Processes and Sub Tasks

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Accurate Average

Processing Times

Visibility into Individual

Employees to find Best

Practices and Compliance

Issues

Use Best Practices training to

increase work items per day

goals

4% Improvement =$ 750,000

Process: Claim validationTasks included: AllTasks not included: NAPerformers: Top 20%  

Employees: All  

From date: March 1 2011  

To date: March 31 2011  

Max Paths: 2  

33%

45%

0 50 100 150 200 250 300 350 400

37

62

68

55

115

110

59

6450

Review incoming email

Create new claim entry

Validate customer eligibility

Approve/reject claim

Knowledge base

Pat

h C

om

mo

nal

ity

Duration (seconds)

• Average weighted score: 83%• 99 instances• 51 employees• Average duration: 279 sec

• Average weighted score: 74%• 99 instances• 42 employees• Average duration: 341 sec

Process Path Analysis Report exampleProcess selection All/Top/Bottom

performers

Employee filter : All/specific teams/specific employees

Date range filter

Number of paths to present

Path commonality

Average task duration

Path - order of tasks

Consider paths that included tasks

Consider paths that excluded tasks

Business KPI Based

Total Application Usage Report

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Facebook Facebook

eBay

Netflix Netflix

eBay

Find “Hidden” Capacity:Facebook

eBayNetflix

Find and Eliminate Excessive Non-Work Time

10 minute Improvement =

$ 416,000

Idle Time

Find and Eliminate Excessive Idle Time

5 minute Improvement =

$ 208,000

Home Loans 21 854 4.98 1.08

TheWorkforce

Management Cycle

Tools to Automate Capacity Management Activities

20

Forecast & Plan

Schedule People& Events

Manage Change

Analyze Performance

1 % Staffing improvement =

$ 200,000

Disparate DataSources

One Version of the Truth…

KPI Dashboard Analytics

WorkflowIncentives

Coaching FormsExecutive Dashboards

A Holistic Approach toImproving Performance

Personalized for Every Person

and Role

ETL Tool Built for Performance Management

ExampleSources

Performance Suite

2 % Productivity improvement =

$ 400,000

HIGHER CUSTOMER SATISFACTION, LOYALTY AND HIGHER QUALITY

Quality Management

Visibility into employee screen navigation to find and fix root causes of errors Tailor evaluation forms to focus on quality objectives specific to the business Deliver & schedule customized coaching packages for individuals & teams

Screen Recording & Playback

Configurable Employee

Evaluation Forms

Custom Coaching Packages

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Error rate lowered from 4% to 2% =

$ 333,000

LOWER REGULATORY FINES

Process Compliance Enforcement

Define Desktop WorkflowsEnsure process compliance within and across applications

$ 1,000 per day Improvement =

$ 260,000

INCREASE EMPLOYEE SATISFACTION AND LOWER ATTRITION

BEFORE

Employee manually adds customer address & other common information in multiple applications

Time consuming and chance of error high

AFTER

Employee enters information once and invokes the automatic population of data in the other applications

Time saved and entry errors eliminated

Automate Manual Work

27

10 Minute improvement =

$ 416,000

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Real-Time Guidance

Employees cannot know everything

Guides employees through complex back office processes

Presents relevant information in a call out window

Provides information relevant to each step in the process

Guidance based upon the specific needs of the individual

Push knowledgebase information instead of employees hunting for it 4% Improvement =

$ 750,000

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User Interface Consolidation

Save time by providing required information from multiple sources in one call out

More cost effective than using 3 monitors

5 minute Improvement =

$ 208,000

LOWER CONTACT CENTER COSTS

Making the Ultimate Customer Connection

Business processes often span contact center and back office

Back office issues drive costly interactions into contact center

Back office inefficiencies impact enterprise profitability

Both contact centers and back offices impact customer experience

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Contact

Center

Back Office Customer

Ultimately- customers are impacted by the ENTIRE enterprise

INTELLIGENTLY SHARE WORK WITH THE CONTACT CENTER

Intelligently Share Work with the Contact Center

Back Office helps the Contact Center

Back Office helps the Contact Center

Back offices can provide some support for easy to handle call types to help with the peak hours of the day

Contact centers can provide some support for related back office work during the lowest volume hours of the day

Contact Center helps the Back OfficeContact Center Forecast

BUSINESS IMPACT

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Strong ROI, Quick Payback

Example: 500 Employee Department Annual Salary: $ 40,000 Payroll: $ 20,000,000 Savings

Find and replicate best practices (4% ): $750,000 Eliminate 10 minutes of non-work time: $416,000

Find and eliminate 5 minutes of idle time: $208,000 1% staffing improvement: $200,000

2 % productivity improvement: $400,000 Lower error rate from 4% to 2%: $333,000

Lower regulatory fines $1,000/day: $260,000 Use automation to save 10 minutes: $416,000

Real-time guidance saves 4% work time: $750,000 Use UI Consolidation to save 5 minutes: $208,000

Total: $ 3,851,000 Payback < 6 months

Plus, additional savings from lower contact center call

volumes!

CASE STUDY

Insurance Case Study

BACKGROUND SOLUTION HIGHLIGHTS IMPACT

BACK OFFICESOLUTION

One of the largest insurance companies in the United States with millions of beneficiaries.

10% efficiency gain by monitoring desktop work

20% staffing savings through improved forecasting and scheduling

One copy and paste automation saved 28 seconds per process and eliminated errors

Improved Operational EfficiencyReal-Time Activity Monitoring Gained visibility into insurance

processing to improve productivity Monitored application usage, web

browsing and idle time to reduce unproductive time

Real-Time Process Optimization Automation to improve efficiency

Workforce Management Improved Forecast Accuracy Increased Scheduling Efficiency

Real-Time Activity Monitoring

Real-Time Process Optimization

Workforce Management

“We need this solution because today we are living in the Dark Ages, with no visibility into the work our employees are doing.”