Business Strategy for ABC Telecom - Essay Example

Project Charter Call Centre in the ABC Telecom Company Project Overview and Purpose 1 Project The ABC Telecom Company is one of the leading participants in the telecom services market, which actively increases the number of its customers. With growth of customers, top management of the company has realized that quick, friendly customer service (providing customers with the right comprehensive information just in time) may be the major competitive advantage of the company. Thus, the decision to set up a call centre as a vital link between the company and its customers has been made by the ABC Telecom Company executives. A call centre is generally understood as a separate functional area where a full range of inbound or outbound call-handling services is provided. With the advent of new communication technologies call centres expanded their services considerably, allowing companies to contact a large number of people efficiently. Making a decision about the call centre setting up, the ABC Telecom Company sees considerable benefits for its business, because a call centre will: Improve a service of existing customers dramatically. Help to reach a greater potential customers market. Help to increase sales income significantly. Allow to take the company’s marketing initiatives to a new high level. Improve the company’s inbound and outbound information communications. Improve a real-time technical support. Help to influence public opinion and to improve the company image. Help to increase customer loyalty, as well as the company’s staff loyalty. Help to reduce significantly operational overheads and costs. This document represents a general description of the project aimed to set up a call centre, comprising 10 workstations, in the ABC Telecom Company. The call centre is intended to be a primary way of effective communications with customers, partners and other external audience of the company. The company executives believe that the call centre will provide a single point of contact for all people who interact with company via various channels, including email, fax, web chat and board, phone, VOIP, SMS etc. Such virtual (not face-to-face) interactions may concern different issues from multiple areas, e.g. information dissemination, customer service and support, customer relationship management, marketing and telemessaging, sales (inbound and outbound), employee service and support, emergency services and other areas, related to customers’ satisfaction and telecom business’s efficiency. Thus, the main goal of the project is to set up an integrated system for effective multiple virtual interactions with customers. The final deliverables of the project are: to provide physical space that meet the requirements of a call centre placing; to select and implement a call centre system solution, which includes modern telecom and networking equipment, and an appropriate software; to identify and organise core business processes supporting the call centre activity; to take on and train a staff, which should be a highly motivated, well-skilled workforce, sufficient to ensure 24/7 service operations in the call centre. Undoubtedly, the project is rather complex, it includes a number of various aspects – from the selecting the location to build the call centre to the hiring and training a staff. The ABC Telecom Company does not have sufficient resources to cope with all project tasks by its own strength, that’s why it is intended to get a number of subcontractors and vendors to take part in the project, what brings additional important constraints in the project. 1.2 Business Objectives and Success Criteria Call centre in the ABC Telecom Company is being created in order to increase the value of contacts between the company and existent or potential customers. For customers the value means a good care, so that a customer does not have to wait a response, can get accurate information from a competent person whenever it is needed. For the company the value appears in increased sales, profits and efficiency, in the establishing long-term relationships with customers, in the attracting of new clients. So, the project is aimed to set up such a call centre after the first year of functioning of which the following business objectives should be fulfilled: 1. profitability of the ABC Telecom Company should be increased by 20%; 2. customer service operating costs should be decreased by 15%; 3. customer retention rates should be improved by 10%; 4. number of new customers should be increased by 20%; 5. average number of customers served during a day – no less 700; 6. effectiveness of a customer service should be provided on a level corresponding to the following KPI: a. time for response waiting – no more 60 sec; b. talk time – no more 3 min; c. idle time per call – no more 60 sec. It is obviously that these business objectives are closely related to and highly depend on the project success at a whole. Any project is considered as successful in a case if it is completed within its budget (costs), by a specified date (time) and in accordance with its specifications (performance or quality). But each project has its unique characteristics, which influence on the primary objectives of costs, time and performance / quality. In order to be successful the call centre project will require: Good project definition, clear objectives and relevant time constraints. Explicitly defined commitments for each group of the project stakeholders (including top management, project team and subcontractors). All responsibilities should be clearly stated in contracts or in the project responsibilities matrix. The availability of various resources (time, budget, equipment, knowledge, etc.) to provide a high quality of each deliverable mentioned above. It can be achieved by a thorough resource planning at the initial phase of the project and by further close control. Realistic resources spending and regular charges analysis, in order to have a clear picture of a current state of the project and a possibility to make in-time decision. An experienced project manager and a well- skilled project team, which preferably consists of professionals with different backgrounds, related to the project deliverables. Requirements to the project manager and team should be formulated at the very initial phase of the project. Quick communication channels and a clear communication plan, which allow spreading information and responding rapidly, helping to make right decisions by all project stakeholders. Effectiveness of the project communications should be measured in a regular basis during all time of the project. Exact clear requirements to all project outcomes, both technological and organisational ones. To ensure a good quality of requirements different groups of the project stakeholders (including employees, customers, contractors, suppliers, and even possibly competitors) should be involved in their development. Strong support of the project from the ABC Telecom Company executives. 2. Stakeholders Identification and Analysis According to the Project Management Institute, stakeholders in a project can be both individuals and organizations, who are actively involved in the project, are affected by the project results, or can influence on the project outcomes. The stakeholders of the call centre project are presented in the Table 1. All of them are divided onto two major categories – internal (those who are inside the ABC Telecom Company) and external (those who are outside the company). Table 1. The call centre project major stakeholders. Stakeholder Major Benefits Attitudes Win Conditions Constraints Internal Stakeholders Project Sponsor – the ABC Telecom Company top management Achievement of established business objectives Positive attitudes in a case of the project success; It is a powerful stakeholder (investor) which is able to influence on the project continuation; highly interested in the project success Proper expenses of resources, successful achievement of all project goals Can stop investment for different reasons or even close the project Project Manager Good or improved reputation, useful experience, expanded professional links, career growth, financial benefits Positive attitudes; resolves issues, makes important decisions; highly interested in the project success Proper performance of duties, successful achievement of all project goals Can appear incompetent or not fulfil her duties for other reasons Project Team Financial benefits, useful experience, professional and career growth, expanded professional links Positive attitudes; provide subject matter knowledge and expertise; highly interested in the project success Proper performance of project duties, expected pay-off Can appear incompetent or not fulfil their duties for other reasons Stakeholder Major Benefits Attitudes Win Conditions Constraints Sales department of the ABC Telecom Company Increased sales, better and wider communications with customers Positive attitudes, but plays a passive role in the project Getting an effective means for inbound and outbound sales Does not influence on the project Marketing department of the ABC Telecom Company New opportunities for marketing initiatives, better and wider communications with customers, improved corporative image Positive attitudes, but plays a passive role in the project Getting an effective means for marketing initiatives on a new high level Does not influence on the project HR department of the ABC Telecom Company Improved image of the company as a good employer, enhancement of the company staffs professional level Positive attitudes, but plays a passive role in the project Hiring well-skilled workforce, getting an opportunity for trainings Does not influence on the project Support and service departments of the ABC Telecom Company Better communications with customers Positive attitudes, but plays a passive role in the project Getting an effective means for interactions with customers Does not influence on the project External Stakeholders Sub-contractors Financial benefits, further partnership with the ABC Telecom Company Positive attitudes; provide additional subject matter knowledge and expertise; interested in the project success Proper performance of project duties, increased revenue Can break the contract terms or not fulfil their duties for other reasons Suppliers and Vendors Financial benefits, long-term collaboration and participation in other projects of the ABC Telecom Company Positive attitudes; provide necessary resources; interested in the project success Proper performance of project duties, increased revenue Can break the contract terms, deliver low-quality products or not fulfil their duties for other reasons Stakeholder Major Benefits Attitudes Win Conditions Constraints Customers (existing and prospective) Good customer care, quick accurate information, new opportunities for using modern telecom services Positive attitudes in a case of the project success Increased level of service, getting an effective means for interactions with the company Can change their attitudes and initial preferences Competitors Don’t benefit from the project Negative attitudes; non-interested in the project success Failure of the project Can introduce a new product or service on the market. which will influence on customers preferences and attitudes Authorities and Government Increased taxable income of the ABC Telecom Company, new places of work for local people Positive attitudes in a case of the project success Successful achievement of the project goals Can pass a new law, which will make difficulties for success of the project 3. Vision The vision of the call centre project is formulated as follows: “By organizing a single point of contact for existing and potential customers of the ABC Telecom Company, who interact with company via various multiple channels, the Call Centre system, as an effective way of virtual communications, will enable to provide the enhanced customer 24/7 service, significantly increasing the value of contacts between the company and its customers. Unlike the current system of interactions where various channels are poorly organised so that customers have to wait the responses on their requests for a long time and sometimes get inappropriate answers on their questions, the new call centre system will ensure quick and accurate information needed for each customer applying to the service. Such effective customer service in its turn will increase customer loyalty and retention rates, contribute to attracting of new customers and to increasing of sales in the company”. 4. Project Scope As it was mentioned above, the call centre project in the ABC Telecom Company is complex by its nature; it involves multiple activities from various areas of performance. Besides it is intended that several external subcontractors, suppliers and vendors will take active part in providing of the project deliverables. So, of particular importance appears the way in which responsibility for the project outcomes will be shared between the project team and external project participants. In this sense the scope of work plays a highly important role in the project. It represents a clear project stages’ and tasks’ sequence, and helps to assign the responsible stakeholders to each of the tasks. In addition, the project scope enables the Project Manager to review the status of the project after each stage and the project milestones, in order to evaluate progress, potential success and compatibility with the projects key success factors. The call centre project described in this Project Charter will comprise four main stages: Planning Stage, Design Stage, Development Stage, and Launching and Testing Stage. A high level work breakdown structure (WBS diagram) of the call centre project is presented on the Fig. 1. It shows a sequence of the project stages and main tasks related to each of the stages. It is important to keep in mind that although the tasks are placed in a sequence, some of them may be performed concurrently during the project stage. At the same time, the stages of the project should be carried out in a strict sequence – no one of them can begin earlier than a previous one finishes. The high-level scope of the call centre project is presented in the Table 2. This is a more detailed description of work, although it is still gives a general overview of the project tasks. It also shows some activities that are considered to be out of the project scope, and represents key deliverables for each stage of the project. Table 2. The call centre project scope. Stage Activities In Scope Activities Out of Scope Key Deliverables Planning Stage (3 months) Assessment of current state, needs and necessary changes Development of functional and technical requirements and specifications Preliminary development of the call centre system design (high-level) Preliminary development of the procurement lists (equipment, hardware, software) Development of the project timeline and WBS Development of the project communication plan Cost assessment and planning Assessment of available and needed resources Risk Assessment Evaluation of the site for call centre Analysis and selection of Subcontractors, Vendors and Suppliers Development, legal review and signing the contracts with Subcontractors, Vendors and Suppliers Determination of skills needed for the project success and assigning the project team Analysis of the current service business processes Preliminary assessment of the hardware and software required Conducting the Customer Satisfaction Survey Call centre system specification High-level system design Project description (incl. timeline, WBS, deliverables, success factors, resource requirements, costs, risks, communication plan, etc.) Site Visit Evaluation Worksheet Signed contracts with Subcontractors, Vendors and Suppliers Stage Activities In Scope Activities Out of Scope Key Deliverables Design Stage (3 months) Stakeholders interviewing – identifying requirements Development of final call centre site layout Development of final call centre system design (technological infrastructure, network configuration, interconnect diagram, information structure, conceptual scheme, interfaces design, etc.) Development of key call centre business processes schemes Development of final procurement lists Assignment resources to the project tasks and development of final project schedule Development a final project management plan Development a final communication plan Aligning the project plan with stakeholders needs and requirements Collect current state project documents, including from vendors (workflow, policies, procedures) Call centre site layout Call centre system design Call centre business processes schemes Final procurement lists (equipment, hardware, software) Final project management plan (scope, task schedule, communication plan, costs, risks, recourses requirements) Development Stage (3 months) Building and equipping the call centre site Building and configuring networks and telecommunications Installing and configuring hardware Installing and configuring software applications Development of plan for testing Development of training programmes Development of work description for the future call centre staff Hiring the staff for the call centre Prototype of the call centre system (including communications, processes, hardware and software) Plan for testing Training programmes Stage Activities In Scope Activities Out of Scope Key Deliverables Launching and Testing Stage (3 months) Development of final work flow diagrams Development of final policies and procedures Training the call centre staff Launching the call centre in a testing mode Invitation of customers for testing Testing the call centre system Modification and improvement of the call centre system according to testing results (including business processes, technological and informational structures, networks, software, and other components) Planning of further actions Change Management Processes Trained staff Tested and improved call centre system Further actions plan 5. Assumptions and Dependencies The description of the call centre project represented in this Charter is based on the following assumptions and dependencies: The call centre system is a complex system, which comprises well-equipped rooms, network and telecommunication hardware, computer workstations, software solution, organised business processes and trained staff – each component is highly important for overall success of the project. The target audience of the call centre is existing and potential customers of the ABC Telecom Company. To take advantage of the new company service the call centre system users should either have internet access or be able to connect via phone line. The call centre project is a high-priority project for the ABC Telecom Company executives, so they support the project and invest it. One of the key factors of the project success is effective communications within the project, which is organised and ensured by the Project Manager, so that information is spread quickly among the multiple stakeholders and better decisions are made. Functional and technological requirements to the call centre system, which are defined during the Planning stage of the project, may be defined more precisely on the Design stage. It may cause significant changes in the project plan, in particular in terms of time and costs. To provide the call centre system design and development, the ABC Telecom Company will contract several vendors, subcontractors and suppliers, which assure needed knowledge, expertise and resources, absent in the company. All responsibilities will be clearly established by the contracts. Since the ABC Telecom Company does not have its own call centre technology, it will be delivered and implemented by one or two third-party vendors, who will also provide support manning and backup service. Project Sponsor (the ABC Telecom Company executives) will provide all necessary resources, available in the company, according to the project plan. In a case if the company does not have needed resources; the Project Sponsor will find the additional external sources so that to ensure the project tasks fulfilment in time and with required quality. 6. Constraints No matter how well a project was planned, the Project Manager sometimes has to make tradeoff decisions along the key project dimension: features, quality, cost, schedule and staff. Understanding of a project driver and constraints helps to make more appropriate decisions. The main constraints and drivers of the call centre project are presented in the Table 3. It is presumed that the key drivers of the project is time (or schedule) and quality. Table 3. The call centre project constraints. Dimension Constraint (state limits) Driver (state objective) Degree of Freedom (state allowable range) Project’s features The project depends upon work of third-parties, some of which is not able to provide all the call centre system’s features in time 80% of features (high-priority) must be included to the end of the project, the rest 20% can be implemented later Key stakeholders are difficult to contact when an important decision should be made Quality Customer satisfaction should be no less 95% Cost Budget can overrun up to 10% from the planned one without the company executives approval Schedule The call centre system should be launched on 11 months of the project Testing period can be extended on 2 weeks Staff The project team is not planned to expand during the project The project team lack of knowledge of the technology provided by vendors It is possible to train 2 of the project team members in the vendor technology 7. Project Milestones The key milestones of the call centre project are presented in the Table 4. Table 4. The call centre project milestones. Event or Deliverable Target Date Responsibility Project charter approved 1 Sep 2010 Project Manager High-level design of the call centre system completed 10 Oct 2010 Project Manager Project description completed 25 Oct 2010 Project Manager Project description approved 31 Oct 2010 Project Sponsor Vendors and subcontractors selected, contracts signed 30 Nov 2010 Project Manager Call centre system design completed 15 Feb 2011 Project Manager, Subcontractors Call centre system design approved 28 Feb 2011 Project Sponsor, Project Manager, Subcontractors Prototype of the call centre system completed 25 May 2011 Project Manager, Subcontractors, Vendors Call centre system staff training completed 30 June 2011 Project Manager, Vendors Call centre system launching 01 July 2011 Project Manager Call centre system testing completed 31 July 2011 Project Manager Call centre system modification and improvement completed 30 August 2011 Project Manager Project closed out 31 August 2011 Project Sponsor, Project Manager 8. Business Risks Table 5 shows main business risks associated with the call centre project. Table 5. The call centre business risks. Risk Name Score Impact Mitigation Methodology Call centre system does not work, because of the software failure 2 5 Redundant technological environment should be provided in order to support immediate failback Low level of customer satisfaction due to inadequate staffing in the call centre 3 3 Intelligent call routing software solution should be implemented in the call centre. Call queue should be actively monitored. Staffing should be arranged as necessary. Low level of customer satisfaction due to bad call centre service 2 5 Comprehensive staff training. Implemented policies and procedures to respond properly. Activity control and reviewing from a management side. Call centre system does not meet customer requirements 2 5 Regular performance reports. Constant interactions with customers for their feedback, surveys, benchmarking, improvement. Poor customer service due to turnover of the trained staff 3 3 System of performance-based incentives should be implemented. Motivational programmes, which include health, welfare and job satisfaction activities, should be implemented. Instability of prices in telecom services market 3 4 Long-term contracts should be signed wherever it is possible Low level of employee satisfaction due to unhealthy environment of the call centre (noise, stress, exertion) 2 3 Policy of regular breaks should be implemented. Insurance should be adequate. Room for relaxation is needed. 9. Resources Requirements Table 6 shows main resources requirements for the call centre project. Table 5. The call centre resources requirements. Resource Description and Source Human: Project Manager Project Manager acts on a day-to-day basis to ensure a progress of the project; she is a central point of contact for all stakeholders in the project. Source: the Company. Project Team Project Team provides subject matter expertise and work in the project on a day-to-day basis to achieve the project objectives; it consists of professionals with different backgrounds related to the project. Source: the Company. Subcontractors Subcontractors provide additional subject matter knowledge and expertise, they participate on a contract basis in development of the call centre site layout, system design and business processes schemes (consultant, designers, engineers, etc.) Source: external. Vendors Vendors provide additional subject matter knowledge and expertise, as well as necessary resources, namely a call centre system technology; they participate on a contract basis in system design, development and testing. Source: external. Suppliers Suppliers provide necessary physical resources; they participate on a contract basis in all stages of the project. Source: external. Funding: Investment Investment is financial resources needed for the project. The Company invests either its own finances or banking credit. Source: the Company. Physical facilities: Room for the call centre For the call centre with 10 workstations a room approximately 1,500 square feet is needed. It should be equipped by a higher capacity heating, air conditioning and ventilating, emergency facilities. Source: the Company. Room for relaxation To decrease stress level and improve health of the call centre staff a room for relaxation is also needed. Source: the Company. Resource Description and Source Equipment: Furniture The call centre should be equipped by modern comfortable furniture, in accordance with the project requirements. Source: the Company, suppliers. Network and telecommunication The call centre should be equipped by modern network and telecommunication equipment, in accordance with the project requirements. Source: the Company, suppliers. Computer workstations The call centre should be equipped by modern computer workstations, in accordance with the project requirements. Source: the Company, suppliers. Hardware The call centre should be equipped by modern hardware devices, in accordance with the project requirements. Source: the Company, suppliers. Software: Call centre solution The core of the call centre system is a software solution, which is developed in accordance with the project requirements. Source: the Company, vendors. Databases Databases can be integrated in the call centre software solution in accordance with the project requirements. Source: the Company, vendors, subcontractors. Other program systems Other program systems (CRM, KM, etc.) can be integrated in the call centre software solution in accordance with the project requirements. Source: the Company, vendors, subcontractors. Organisational knowledge: Business processes The company can provide a documentation describing its current business processes, in order to help the project team to understand the business challenges more deeply. Source: the Company. Policies and procedures The company can provide a documentation describing its current polices and procedures, in order to help the project team to understand the business challenges more deeply. Source: the Company. Resource Description and Source Training: Working in the call centre Call centre staff should be provided by trainings on how to deal with the call centre system, as well as on how to serve customers better. Source: the Company. Relaxation Call centre staff should be provided by trainings on how to relax during the working hours in order to reduce stress and fatigue. Source: the Company. Health care in the call centre Call centre staff should be provided by trainings on how to care about their health both on a workplace and at home. Source: the Company. 10. Approvals The signatures in the table below indicate that the signatories agree to use this Project Charter as a basis of the project, and agree on the following approval decision: Approval Decision:  Approved, development of detailed project plan is authorized V Approved, project execution is authorized  Approved, but project is on hold until future notice  Revise charter and resubmit for approval  Charter and project proposal are rejected Role or Title Name and Signature Date Project Sponsor, the CEO of the ABC Telecom Company Mr. Jeffrey Donavan Project Sponsor, the CIO of the ABC Telecom Company Mr. Thomas Wolf Project Sponsor, the CFO of the ABC Telecom Company Ms. Mary More Project Manager Mr. Jan Fleming Revision History Name Date Reason For Changes Version 08.08.2010 initial document 1.0 Read More