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© 2001-2009 Scott Degraffenreid
NECESSARY MEASURES
Metrics that Determine Success 
NECESSARY MEASURES
Metrics that Determine Success 
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Case Study #1

Client - Midsize, rapidly growing network engineering firm

Situation - The company does very sophisticated LAN-WAN integration, requiring a high level of skill and expertise. At the beginning of the engagement they were experiencing attrition at a 100% annual rate. Due to the skill level required, engineers were difficult to replace and the training cycle was lengthy, averaging six months. Turnover was inhibiting growth into new markets. 

 

Analysis and Action - The problem was diagnosed as a mismatch between personality types of engineers and the flexibility demanded by the firm's aggressive approach to the market. A tool was used to classify both engineers and customers in order to make better assignments. Sales staff were also asked to provide more complete information about new accounts. Hiring criteria were modified to bring in more adaptive personality types.

 

Results - Since the recommendations were implemented, turnover has been practically 0%. Recruitment efforts have been focused on opening offices in two new markets rather than struggling to replace existing engineers. The company has been nominated for the Arthur Andersen Award for Innovation in Employee Retention.

Case Study #2

Client - Call center for national car rental agency.

 Situation - The company was experiencing high stress levels during training and low productivity among telephone reservations agents, post training. The turnover rate was averaging 15% per month. Making this loss worse was the fact that agents tended to quit right after reaching peak efficiency, thus depriving the firm of the chance to recoup its investment in the agents' training and on-the-job learning.

 

Analysis and Action - Investigation revealed that the main contributor to the high stress levels was contact overload: the agents were handling too many calls with too few breaks. The performance measures used to evaluate the agents and center management were inappropriate, and were largely responsible for the overload problem.

 

Results - Several changes were recommended: a reduced time-on-the-phone requirement; refurbishing of the agents' break area; more flexible break schedules; increased call variety; use of overlapping shifts to handle peak-load times. Following implementation of these changes turnover improved to less than 10% per month.

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Case Study #3
Case Study #4

Client - High-tech communications products company.

Situation - The company was experiencing 50% annual turnover among customer engineers who provide field support to end-users. Positions require high skill levels with a lengthy training cycle. The intangible effect of high turnover was the disruption to the customers of frequent changes in support personnel. Financial problems due to customer defections were causing the threat of bankruptcy.

 

Analysis and Action - Investigation showed that many of the problems were due to insufficient communication by management about the future direction of the firm.

 

Results - Turnover among customer engineers was reduced to less than 10% annually. The number of lost service-contract renewals was reduced dramatically, from over one half of all accounts to fewer than 5%.

Client - Large financial-services institution with telemarketing and customer-service divisions.

 Situation - The company was losing 15% of new employees per month in the recruiting and training processes, inhibiting growth and adversely affecting quality and productivity.

 

Analysis and Action - Observation of the training classes showed that there was a large social-class gap between the instructors and the trainees. It also revealed that the classes were conducted in a very one-way manner, with little two-way interaction between instructors and trainees. The training process was made more "hands-on" and the social-class disparity between the trainers and the recruits was de-emphasized. Trainees were given a glossary of terms, which made them feel more confident and less self-conscious about asking "stupid" questions.

 

Results - Retention in the recruitment process improved (dropout rate reduced) by 10% immediately after recommendations were implemented. There is the expectation of achieving a 25% improvement. Retention in the training process has improved by 25%, with expectations of 50% improvement in the next few months.

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