Profitability Customer Satisfaction

Internal Provider

Lenovo Group Embracing Performance Improvement With Teamwork and Management Support
s a young and dynamic enterprise born amidst the tidal wave symbolizing China's reform and open door policy, Lenovo Group (formerly Legend) is growing in a market of intense competition. Realizing the competitive edge superior performance within its contact center space ensures to its market position, Lenovo Group engaged in the strategic implementation of the rigorous COPC-2000 Standard to firmly establish its leadership role within the global information industry. The Achievement uring the 12-month certification process, the COPC-2000 Standard provided a balanced approach to concurrently measuring all customer-touch activities. With more than 200 performance metrics defined, Lenovo demonstrated significant improvement across all parameters addressing service, quality, efficiency and We feel very fortunate customer satisfaction: that Lenovo Group is operating Faster handle time generates a in an era of continuous progress, and 30% service level improvement participating in an industry in complaints department AHT time improved from characterized by innovation and 363 seconds to 319 seconds transformation. Our undivided Service level improved from commitment to developing and 49% to 79% deploying the COPC-2000 Standard 33% accuracy improvement has enabled us to experience drives cost reduction Overall accuracy improvement significant improvement from 51% to 84% improves in service, quality, efficiency call routing and increases and customer satisfaction while customer satisfaction enhancing our people-oriented First Call Resolution facilitates corporate culture. focus on accuracy vs. volume FCR increased from 77% to Zhang Kun Sheng, General Manager 84% generating fewer callbacks

Increased agent utilization produces dramatic annual savings CSR utilization improved from 44% to 69% while handling 44% more calls A Well Executed COPC Implementation hen first audited in November 2002, Lenovos contact center operations were compliant in 3 of the 32 items of the COPC-2000 Base Standard (Version 3.2). Understanding the operational impact of quantified measures drove Lenovo to meet 75% of their 207 metrics in less than one year, while demonstrating sustained improvement in an additional 10% of the processes measured. What made Lenovo achieve success? What was the winning formula? Executive management commitment coupled with a winning attitude, saying yes to what was needed and following through in a timely manner. From the very beginning, Lenovo adopted COPC as the performance management framework, believing that the COPC certification process would help them in achieving quantum improvements in performance. It was not, however, just a certification process, nor was the certificate the end objective. The top management and the entire team absorbed the COPC principles and applied them to their daily operations. Strong people management By sharing current and needed performance objectives with the future direction, Lenovo aligns staff toward common goals, which are then reviewed during quarterly
Case Study Legend - Lenovo Implementation 1Q04 Ver. 1

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A Well Executed COPC Implementation continued... communication sessions. This structured approach identifies targets that are not met and allows team members to develop and implement improvement plans.

To encourage teamwork and drive performance, Lenovo has integrated a compliant recruitment, training, coaching, and skills verification process. The staff performance review and compensation programs are designed specifically to motivate staff, focusing on constant 2-way communication through coaching sessions and walk-around reviews. The strict adherence to these effective processes has been repeatedly exhibited in Lenovos high Service Level and Customer Satisfaction improvements. Among the required COPC metrics are staff satisfaction and attrition measures. Both of these metrics have positive results, with increased employee retention and satisfaction. Lenovo firmly believes this system has improved quality of staff and been a key driver for performance improvement. Strong analytical skills Excellent analytical skills, coupled with a proficient root cause analysis approach, enables team members to better understand more than 200 operational metrics being tracked. The roll up of all these metrics is represented in the Standard with a tool called Table F. The Standard requires that a minimum of 50% of tracked metrics meet the targets nine out of twelve months per year, while those not hitting target, must demonstrate continued improvement. When performance fails to meet targets, through data analysis the root problem causes are determined, corrective actions are taken, and improvement is achieved. Certification also requires Lenovo to perform transaction monitoring with output directed at two levels process and agents. Process level analysis is used to identify and correct process level defects, while agents are individually coached to improve in areas where they need individual help. This systematic approach across the operation has great benefit, as explained by Shi Hong Xin, COPC-2000 Registered Coordinator By diligently adopting and deploying the approaches for all the items of the COPC-2000

Standard, we have achieved our targets across scores of key operational metrics (Category 4.0 metrics), improving leadership and planning as well as our processes and people management.

Lenovos primary objective throughout the certification process has been to seek performance improvement, not just obtain a certificate. As a direct result of the dedication and commitment of management and staff towards

COPC Standards adopting COPCs performance Committee management system, Lenovo is an n the summer excellent example of first attempt of 1995, representatives certification of a CSP. from various Elizabeth Prakasam, companies volunteered CEO of COPC Asia Pacific Inc. to join a work team concerned about performance and service quality provided by third party Customer Service Providers (CSPs). These firms included Motorola, Microsoft, Dell, American Express, Compaq, and Intel. By early 1996, this team had developed the first version of the COPC-2000 Standard, concurrent with the formation of COPC Inc. The development team became the Standards Committee, which is responsible for all aspects of the Standard, from establishing the criteria through approving the Certification process. Participation on the Standards Committee requires detailed working knowledge of the Standard. More importantly, it requires knowledge of operations and the financial impact and ROI of superior service delivery systems. Current members of the Standards Committee are from Blue Cross Blue Shield, Motorola, LL Bean, General Motors, Microsoft, ClientLogic, Convergys, (US companies), Lenovo Group (China), Centrelink (Australia), DHL (Singapore), Transworks (India), and Japanese User Group. The Standards Committee has approved two Standards, one for Vendor Management Organizations (VMO) and one for Customer Service Providers (CSPs). CSPs can be an internally managed operation or a third party provider.

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Case Study Legend - Lenovo Implementation 1Q04 Ver. 1