Paul Leamon presents common back office challenges, and defines what a world-class back office looks like, and how to build one. Additionally, explains the business impacts of becoming a world-class back office.

1. How to Build a World-Class Back Office
Paul Leamon
Director, Back Office Product Management

2. Agenda
 NICE Overview
 Back Office Challenges
 What is a World-Class Back Office?
 How to Build a World-Class Back Office?
 Business Impact

3. 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

4. NICE (NASDAQ: NICE)
1986
Founded Customers Expected full
year non-GAAP
2011 revenues*
Service
Countries
Professionals
* Per guidance provided on November 3, 2011

5. The NICE Offering
NICE
ENTERPRISE
Customer
Interactions
NICE
SECURITY
Safety & Security
NICE
ACTIMIZE
Financial Risk &
Compliance
5

6. The Essence of Our Offering
Intent Insight Impact
 Capturing the intent of  Extracting insights using  Making an Impact on:
individuals advanced analytics
 Customer experience
 Real-time cross-channel  Regulatory compliance
 Multi-channel interactions analytics  Operational efficiency
and transactions
 Multi-sensor data  Financial crime prevention
 Multiple data sensors correlation  Safety and security
!

7. BACK OFFICE CHALLENGES

8. 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
capacity
 How long does it take to process back
office work?
Mary is Director of
Back Office Processing  How to accurately plan for growth?
 Need to improve quality and lower
rework
 Now her team has to handle calls too!

9. Back Office Challenges – Accurate AHT
Loans
Fax
 Multiple systems with no single source of data Email
CRM
 Employees can work on multiple items concurrently
Imaging
 No data for manual or paper-based processes Sales
Billing
 Example of AHT Difficulties
11:00 What the system recorded: AHT = 2 hours 13:00
Employee took a Loan Application from the queue Loan processed to Underwriting
What really happened: AHT = 30 minutes
11:00 11:15 11:30 11:45 12:15 12:30 12:45 13:00
Loan Facebook eBay Lunch Netflix Facebook Loan
Employee took a Loan Application from the queue Loan processed to Underwriting

10. If only she had technology like the call center!
Mary is Director of Back Office
Processing
Matt is Director of the Call Center
ACD
Time and Motion Studies Workforce Performance
Management Management
Call and Screen
Speech Analytics
Recording
Quality Customer
Management Feedback
Manual Employee Work Reports

11. Back Office Technology Gaps
Data Controls
Management Information Systems

12. What is a World-Class Back Office?
 When compared to the average of their peers, they have:
 Higher efficiency and productivity
 Consistently meet or exceed their service goals
 Lower back office costs
 Higher customer satisfaction and loyalty
 Higher quality
 Lower regulatory fines
 Higher employee satisfaction and lower attrition
 Lower contact center costs
 Intelligently share work with the contact center

13. INCREASE EFFICIENCY, PRODUCTIVITY, MEET
SERVICE GOALS AND LOWER COSTS

14. Real-Time Activity Monitoring of Desktop Work
Desktop Client
Data Event
Event Event
Event
Generic Real-time Real-time
Web DB GUI Connector
Services Access Monitoring Event
Event
CONTEXTUAL CONNECTORS Event
Event Event
Business Rule Engine
Interprets and Decides
Multiple Applications
On Appropriate Action
on User’s Desktop
and Data Collection
Works Across Virtually ALL Application Types!

15. Payback Example
 Back Office: 500 Employees
 Average Salary: $40,000 / yr
 Annual Payroll (without OT):
$20,000,000

16. Accurately Track Processes and Sub Tasks
Visibility into
Individual
Employees to
find Best
Practices and
Compliance
Issues
Use Best
Practices
training to
increase work
items per day
goals
Accurate
Average
Processing 4% Improvement =
Times $ 750,000
16

17. Process Path Analysis Report example
Process Consider paths that
selection included tasks All/Top/Bottom
performers
Process: Claim validation
Tasks included: All
Consider paths that
Tasks not included: NA excluded tasks Employee filter : All/specific
Performers: Top 20%
teams/specific employees
Employees: All
From date: March 1 2011
Date range filter
To date: March 31 2011
Max Paths: 2
Path Average task
Number of paths
commonality duration Business
to present
KPI Based
• Average weighted score: 74%
45% 62 55 110 50 64 • 99 instances
• 42 employees
Path Commonality
• Average duration: 341 sec
Path - order
of tasks
• Average weighted score: 83%
33% 37 68 115 59 • 99 instances
• 51 employees
• Average duration: 279 sec
0 50 100 150 200 250 300 350 400
Review incoming email
Duration (seconds) Create new claim entry
Validate customer eligibility
Approve/reject claim
Knowledge base

18. Total Application Usage Report
Find “Hidden”
Capacity:
Facebook
eBay
Netflix
Facebook Facebook
eBay eBay
Netflix Netflix
10 minute
Improvement =
Find and Eliminate Excessive Non-Work Time $ 416,000
18

19. Idle Time
Home Loans 21 854 4.98 1.08
5 minute
Improvement =
Find and Eliminate Excessive Idle Time $ 208,000

20. Tools to Automate Capacity Management Activities
The
Workforce
Analyze Schedule People
Management
Performance & Events
Cycle
Manage
Change 1 % Staffing
improvement =
$ 200,000

21. Performance Suite
One Version of Personalized for
Disparate Data A Holistic Approach to
the Truth… Every Person
Sources Improving Performance
and Role
Example
Sources KPI Dashboard Analytics
Incentives Workflow
Executive Dashboards Coaching Forms
ETL Tool Built for Performance
Management
2 % Productivity
improvement =
$ 400,000

22. HIGHER CUSTOMER SATISFACTION, LOYALTY AND
HIGHER QUALITY

23. Quality Management
Screen Recording Configurable Custom
& Playback Employee Coaching
Evaluation Forms Packages
 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
Error rate lowered
from 4% to 2% =
$ 333,000

24. LOWER REGULATORY FINES

25. Process Compliance Enforcement
 Define Desktop Workflows
 Ensure process compliance within and across applications
$ 1,000 per day
Improvement =
$ 260,000

26. INCREASE EMPLOYEE SATISFACTION AND
LOWER ATTRITION

27. Automate Manual Work
BEFORE AFTER
 Employee  Employee enters
manually adds information once
customer address and invokes the
& other common automatic
information in population of data
multiple in the other
applications applications
 Time consuming  Time saved and
and chance of entry errors
error high eliminated
10 Minute
improvement =
$ 416,000

28. 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

29. 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

30. LOWER CONTACT CENTER COSTS

31. Making the Ultimate Customer Connection
Contac  Business processes often span
Back t Custome contact center and back office
Office r
Center  Back office issues drive costly
interactions into contact center
 Back office inefficiencies impact
enterprise profitability
 Both contact centers and back
offices impact customer
experience
Ultimately- customers are impacted
by the ENTIRE enterprise

32. INTELLIGENTLY SHARE WORK WITH THE
CONTACT CENTER

33. Intelligently Share Work with 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 Back Office helps the
hours of the day Contact Center
Contact Center helps
Contact Center Forecast the Back Office

34. BUSINESS IMPACT

35. Strong ROI, Quick Payback
Plus, additional
 Example: savings from lower
 500 Employee Department contact center call
 Annual Salary: $ 40,000 volumes!
 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

36. CASE STUDY

37. Insurance Case Study
One of the largest “We need this solution because today we  10% efficiency
insurance are living in the Dark Ages, with no gain by monitoring
visibility into the work our employees are
companies in the desktop work
doing.”
United States with  20% staffing
millions of savings through
Improved Operational Efficiency
beneficiaries.
Real-Time Activity Monitoring improved
 Gained visibility into insurance forecasting and
processing to improve productivity scheduling
 Monitored application usage, web  One copy and
browsing and idle time to reduce paste automation
unproductive time saved 28 seconds
 Real-Time Activity per process and
Monitoring Real-Time Process Optimization eliminated errors
 Real-Time Process  Automation to improve efficiency
Optimization Workforce Management
 Workforce  Improved Forecast Accuracy
Management  Increased Scheduling Efficiency