Reengineering is not a simple, easy process that every company should perform.  It is an intense, complex, and often painful journey.  However, the result is typically a quantum leap improvement in service levels, service quality, and a coinciding improvement in efficiency that reduces operating expenses.  That kind of dramatic improvement can only come from equally dramatic change.  However, change can be very difficult and not every organization is capable of surviving the stress of reengineering.  Nor does every organization need the ‘complete make-over’ that is reengineering.  Therefore, each company should carefully consider their situation; weigh the potential benefits versus the effort and cost before embarking on reengineering.

What is reengineering and why do companies do it?
First, let’s be clear on what reengineering is…and what it isn’t.  Reengineering means completely re-thinking the work “processes”.  It means starting with a “blank slate” and designing processes that achieve the desired goal in the most efficient manner possible.  “Reengineering” is a term that came about in the late-80s / early-90s when many companies on the brink of failure used reengineering to re-invent themselves…to survive.  It became so popular that many companies embarked upon poorly planned and poorly managed reengineering efforts seeking those “quantum leap improvements”.  The result was a high rate of failure and reengineering got a bad reputation as a result.

But reengineering has been making a comeback and it is no longer just a survival tool for companies in trouble.  In fact, companies that reengineer while in positive growth mode may experience several benefits.  By becoming more efficient, they can typically slow the hiring frenzy and reduce costs.  Customers typically receive better service and are more satisfied.  And, employees often find that reengineered work is more satisfying and less stressful.  That improves productivity and reduces turnover.  Reengineering is good business.

Reengineering is what many support organizations require to achieve their goals.  For the purpose of this discussion, it doesn’t matter whether you have a general goal, such as “to become World Class” or well-defined objectives such as delivering specific, high levels of service to your customers at a reasonable (and also well-defined) expense to the company.  The issue for many is that they will never be successful until they stop patching that old process and design a clean, new process.  While many companies try to improve through incremental adjustments, they are often so broken or require such radical changes, that incremental adjustments do not deliver satisfactory improvement.  In fact, when a company’s process model is so broken as to require reengineering, it is common to see them continuously pouring money into improvement efforts that deliver minimal results.

Is the need to reengineer a sign that a company did something wrong…made a mistake?  Not necessarily.  Most companies require reengineering after a period of substantial growth…and the processes and tools did not keep pace with that growth.  That could be long, slow growth or it could be overnight success.  It doesn’t matter.  They’ve simply outgrown processes that once worked fine.

When the evolution of a support organization does not keep pace with the rest of the company, it doesn’t take long before support is too far behind to catch up through normal, incremental improvement efforts.  When a company’s market expansion, sales levels, new product introductions and other key business functions have grown at a rate substantially greater than the evolution of the support organization, you have a situation that can likely benefit from reengineering.

Please note that I said the “evolution” of the support organization, not the growth.  There’s an important distinction because an organization that grows without evolving is probably becoming less and less efficient.  That problem typically manifests itself as a support organization growing at a rate faster than the rest of the company, while service levels or customer satisfaction decline.

As companies grow, their support operations typically become more complex.  New products, new modules, and multiple revisions in use by the customer base are just a few of the factors that add complexity to the job of providing customer support.  The processes that worked fine when the company was smaller are typically not adequate as the company grows.  A support operation must constantly adapt or it eventually becomes obsolete.

Many companies observe symptoms of a support organization in trouble and then attempt to repair it through a series of “fixes”.  Reorganizations, restructuring, outsourcing, new call tracking tools or knowledge management tools, charge-for-support programs, and other efforts to “stop the bleeding”.  However, treating symptoms doesn’t cure the ailment.  Patching doesn’t solve the fundamental problems.  You must identify and repair the root cause.

Eight things to look for…
It doesn’t normally require an in-depth analysis to determine that an organization is broken enough to require a major overhaul.  The in-depth analysis is actually “step two” and will confirm the initial prognosis. The key indicators (or symptoms) are usually easy to spot.  I’ll explain some of the things I usually look for.

1. First, are customers “going around” the process? Are they calling in on the direct dial number of support engineers or asking for specific people? Are they using email to go directly to a support engineer rather than call in and follow the “normal” process?  Are they trying to bypass “level 1” or circumvent the process in some other way? If so, we have a clear sign that the existing process does not meet the customers’ expectations.  If a process works, (i.e. provides a level of service that meets customer needs), then customers will generally be satisfied and adhere to the process.  But, when the process isn’t working, you’ll hear complaints and/or you’ll see lots of examples of customers “going around” the process to get what they want.
2. Are customers seriously dissatisfied with the speed and/or quality of service? You don’t necessarily need to perform a formal customer satisfaction survey in order to determine there’s a problem. If customers are unhappy, they usually let you know. Do the CEO and other senior managers get frequent complaints? Do complaints outnumber compliments? Does line management spend a good portion of their time dealing with “hot sites”, irate callers, or other forms of customer dissatisfaction? Do you have a special process for handling complaints or a person whose job it is to follow up on complaints? If the answer to any of these questions is yes, you have a major issue and it is likely impacting customer loyalty, which in turn impacts company revenue and profitability.
3. Are your employees satisfied? If the process isn’t smooth, it creates a situation where it’s difficult for people to be successful. Most people want to do their jobs well and a poor process will frustrate them. People don’t generally like working in frustrating, unrewarding, or stressful situations. A poor process, therefore, results in low moral and high turnover. Also, it’s difficult for people that feel this way about their jobs to continually provide good levels of customer service. While good people will try hard, their frustration and inability to get the job done efficiently will eventually filter through to customers. In fact, I’ve often said, “If you want to know what your customer satisfaction level will be six months from now, measure your employee satisfaction today.”
4. Are there observable flaws in the current process? Does each step of the process add value?  Many times, organizations put steps in their processes that don’t really add value.  One of the most common is a “dispatch” or other “front end” group that takes calls and collects some information, then logs a case and routes the call.  Why are they there?  What value do they add from the customer’s perspective?  None!  Usually, they are only there to provide a buffer for the support engineers (that don’t want to take calls “live”) or as a mechanism to avoid having customers on hold for a long time waiting for an available engineer.  If these people aren’t part of the problem resolution process; if they don’t have some likelihood of resolving the issue, then they are an unnecessary step…a cost without benefit.

Another common flaw is sorting calls into many small groups.  The intent is to get the call to the expert and improve the resolve rate.  However, the result is typically overstaffing and/or poor response times (long hold times) due to the inherent inefficiency of this model.  Reengineering will correct these process flaws…delivering better service at a reduced cost.

5. Do you have a “one size fits all” support model?  Most companies have a variety of customer types with a variety of needs.  If all customers are required to get service the same way, many will be dissatisfied.  Some customers demand higher levels of service and are willing to pay for it.  Other customers are more self-sufficient and just want tools or access to information.  If you only have one service program, you’re probably missing revenue opportunities with some customers and irritating others.
6. Has the organization been trying to use technology to improve service levels?  Technology is a great “enabler” and many process improvements require new technology.  However, technology on top of existing processes generally provides only incremental improvement (if any).  When I see an organization spending lots of money, adding lots of “automation”, I usually find that they need to look at the core process model.  When you automate a poor process model, you may achieve some improvement.  Unfortunately, you typically miss the bigger improvement opportunity that comes from reengineering the process and using technology to enable that new process.
7. Does the headcount match the workload (and performance)?  There are a number of methods for estimating the required headcount for a given amount of work, including workforce management software products. If you drop an organization’s workload into one of these “tools” and it says the required staffing is substantially less than is currently being applied, we have an opportunity. Or, if the current staffing should be capable of delivering great service, but it isn’t, then we have an opportunity.
8. Do the operational metrics stack up against industry benchmarks?  Are they within the “normal range”?  If any key metric seems inappropriate, I become suspicious of a problem.  When two or more metrics are out of range, it means we need to “drill down” and find the problem.  It’s very important to understand that operational metrics, like most of what I’ve described in the previous paragraphs, are “symptoms” and are not the real problems. You don’t fix poor performance metrics; you fix the underlying cause.

When you know what to look for, the signs are easily observed.  When you see symptoms, you must suspect problems. A single problem can manifest itself as multiple symptoms. Keep in mind, however, that a single symptom can mean several different things…so don’t make assumptions! You must identify the root cause.

Conclusion
Even if all the telltale signs are there, even if this appears to be a major opportunity for a company to benefit from reengineering, another step is required.  Before launching into a reengineering project, a company should always perform a thorough operational assessment.  The operational assessment validates (or invalidates) the initial hypothesis.  It determines the root cause(s) of the identified problem(s), estimates the level of effort required to correct those problems, and then predicts the benefits (ROI).  No company should start a reengineering effort if they haven’t done this preliminary cost/benefit analysis.

About Dave Brown……………………………………………………………

Dave Brown is a management consultant, teacher, and writer.  Dave teaches management training programs for Support Center University (www.SupportCenterU.com).  He also consults with selected clients to establish world class service operations and is an expert in the area of process improvement, staffing models, and change management.  Reach Dave at his office in Boulder, Colorado (303-494-4932) or by email (dave.brown@SupportCenterU.com).