Our MetaExpert, Holly, gets it done! See how she used her expertise in lean methodology and value stream analysis to bring big savings to a call center.
Situation
A call center was nearing the end of their State contract, with only 1 year remaining. The scope of the contract represented 20% of health insurance members.
Actions
MetaExpert Holly implemented a Value Stream Analysis to identify areas of waste within the call center that were a detriment to customer satisfaction, costing the organization money, and slowing down their processes. Holly’s analysis revealed that:
- 85% FCR resulted in activities having to be routed to multiple areas within the organization.
- 1/6 of these activities aged longer than 30 days resulting in significant member dissatisfaction.
- Several projects were underway within claims escalations, but none would solve the root cause.
- Waste in the process included up to 35% misrouting, and 25% first pass yield costing the organization $0.5M.
Results
With Holly’s expertise in lean methodology, she was able to guide the call center to develop and award a new contract retaining an astounding $5B in revenue over the course of 5 years.
There were some costs associated with implementing Holly’s plan. Overall, the process cost 1000 overtime hours and a $5,500 investment in facilities, totaling $25,500. However, those initial investment costs are a mere fraction of the annual cost savings of the call center due to their leaner, more efficient processes. Holly’s meticulous efforts resulted in an annual savings of $1,600,000 after process redesign and an additional $800,000 from the financial analysis.
ROI
By bringing in a MetaExpert like Holly, this call center was able to see an unprecedented return on their investment with a total annual cost savings of $2,400,000. In addition to extensive financial cost savings, Holly also provided the call center with tangible operational efficiencies to include:
- Increased call center capacity 16%
- Average activity age reduced 30 to 2 days
- Simplified handling of service exceptions
- Eliminated escalations
- Attrition rate reduced 16% to 7%