5 Challenges Facing IT Directors In today’s volatile world, small details can mean the difference between failure and success Researched and produced by… Sponsored by Business Telecom Products © - 2012 2 Why a study? • After 20 years working with telecom and IT, BTP noticed the increasing challenges for IT • Budgets slashed, jobs outsourced, customers increasingly unhappy • BTP hired Empire Research Group, an independent research company, to investigate these issues Business Telecom Products © - 2012 3 Areas covered • Top challenges facing IT today • Critical importance of the little things—and their ultimate connection to success Business Telecom Products © - 2012 4 What is affecting IT today? Business Telecom Products © - 2012 5 Economy continues to struggle Jobs lost per recession 6,000,000 • Worst recession in history 5,000,000 • Unemployment remains high 4,000,000 3,000,000 2,000,000 • Stock market continues to swing wildly 1,000,000 0 1980 Source: George Will says most recent recession killed more jobs than previous four recessions combined, Tampa Bay Times, 2011; Labor Force Statistics from the Current Population Survey, Bureau of Labor Statistics, 2012 Business Telecom Products © - 2012 1981 1990 2001 2008 6 Expectations are through the roof IT directors are under heavy pressure to increase current productivity levels in any way possible • 62% of senior business execs say that IT is to be a key element in their companies’ post-recession recovery Source: IT departments understaffed, yet overworked, Industry Week, 2010 Business Telecom Products © - 2012 7 Today’s reality… • Unforeseen circumstances have left IT leaders with an unusually difficult set of circumstances • Dual problems of dealing with budget cuts while keeping overworked staff and demanding customers happy What challenges are preventing IT from achieving their goals? Business Telecom Products © - 2012 8 Challenge #1 Managing budget woes Business Telecom Products © - 2012 9 Budgets continue to shrink 2012 CIO IT Budgets 12.7% • In 2012, less than 40% of businesses expect any IT budget increase 3.4% • According to Gartner, 2012 IT budgets are still decreasing -.6% Latin America APAC N America -.7% Europe Source: 2012 IT Spending Priorities Survey, Information Week, 2012; Gartner Executive Programs’ Worldwide Survey Shows Flat IT Budgets In 2012, 2012 Business Telecom Products © - 2012 10 Unprecedented waste • America has become a “throw away” society—80% of all U.S. products are used once and then thrown away • Many “throw-aways” could be fixed with the right support • 98% of in-warranty telecom products never have a claim filed against them and many are discarded unnecessarily • Annually millions of wasted warranty dollars and unnecessary trash filling our landfills Source: The truth about trash, the throw-away society, Planet Thoughts, 2008; Telecom equipment warranty report, Warranty Week, 2011 Business Telecom Products © - 2012 11 Challenge #2 Allocating scarce IT resources Business Telecom Products © - 2012 12 IT departments hit especially hard • CIOs say tech support teams are 42% smaller than ideal • 43% of CIOs say that their IT departments are understaffed for their current workload After budget cuts and layoffs, IT departments are operating with skeleton teams Source: Tech support teams understaffed by 42%, Network World, 2011; IT departments understaffed, yet overworked, Industry Week, 2010 Business Telecom Products © - 2012 13 Time is money What’s impacting productivity? • Up to 40% of helpdesk calls are for minor problems things like a simple password reset • Despite knowledge bases and company training material, end-users want live support Source: Why is password reset still a top call driver?, Tific, 2011 Business Telecom Products © - 2012 14 Minor issues are costing major dollars • With the average helpdesk call taking 20 minutes and costing $20 - $40 or more, those minor problems add up–$23,000 per IT professional per year • Tier 2 escalation doubles or triples the cost Source: Steer clear of steep help desk calls with call avoidance, Infotech, 2009 Business Telecom Products © - 2012 15 Challenge #3 Handling customer irritations Business Telecom Products © - 2012 16 Improving customer service is key for IT According to top CIOs: The 3rd and 4th highest IT priorities in 2012 are to create a better internal and external customer service experience • Between 2008-2010, the number of complaints to U.S. call centers increased from 550 million to more than 770 million—an incredible 40% jump Source: 2012 IT Spending Priorities Survey, Information Week, 2012; ContactBabel publishes new research on U.S. Contact Centers, Contact Center World, 2011; Consumers experience poor voice quality with call centers, Call Center Helper , 2010 Business Telecom Products © - 2012 17 Did you know? • 42% of all contact center calls are affected by voice related issues • 79% of all consumers report that they have experienced poor voice quality on at least one occasion • “Stressed” is the most commonly used word consumers used to describe how they felt after a call with poor voice quality Stressed Customers = Unhappy Customers Source: Call center frustrations may cause consumers to shop elsewhere, Internet Retailer, 2010; Consumers have experienced poor voice quality with call Centers, CallCenter Helper,2010 Business Telecom Products © - 2012 18 A small thing like sound can hurt the bottom line • 68% of customers say that they simply hang up if they have trouble hearing an agent • Customers who encounter difficulties when they are calling about a new product or service will turn to a competitor Source: 79 per cent of consumers have experienced poor voice quality with call centers CallCenter Helper, 2010; Call center frustrations may cause consumers to shop elsewhere. Internet Retailer, 2010 Business Telecom Products © - 2012 19 Challenge #4 Increasing productivity Business Telecom Products © - 2012 20 Communication drives productivity • The average worker spends 75% of their day communicating • Lack of quality communication hurts: – Productivity – Employee job satisfaction & retention – Customer acquisition & retention • A 100 employee company loses 17 hours weekly clarifying communication. The annual cost is $528,443! Source: The importance of effective communication, Wertheim, E, 2008 ; The high cost of poor communication, Leader Values, 2009, Business Telecom Products © - 2012 21 Having to do more with less • 77% of workers say they are feeling “burn out” on the job • Workloads are heavier and employers continue to push for greater productivity Companies are running out of ways to squeeze more work out of their existing staffs, and IT staff is more stressed than ever Source: Worker stress is on the rise as economy stumbles, CIO Insight 2011; IT employees having to do more with less, Maxis Solutions, 2011 Business Telecom Products © - 2012 22 Challenge #5 Retaining skilled talent Business Telecom Products © - 2012 23 No more cradle-to-grave employment • Even with millions of unemployed workers in America, companies are having difficulty retaining skilled workers • 65% of executives expressed concern about losing high potential employees • In Seattle: aside from Microsoft and Amazon, we now have Google, Facebook and Twitter recruiting top talent Source: Has the great recession changed the talent game?, Deloitte, 2009; Seattle Ranks #1 in tech sector job growth, Seattle Times, 2012 Business Telecom Products © - 2012 24 Low employee engagement • According to a 2012 MetLife study, employee morale is at a three year low—and companies are looking for answers • Perceived lack of employer support, higher stress levels and increased workloads lead to disengagement • These disengaged workers cost companies $416 billion per year Source: Workers eager to job hunt as morale plunges, USA Today, 2012; Most U.S. workers not fully engaged, Towers Watson, 2012; Disengaged Employees cost U.S. businesses billions of dollars, Business & Legal Resources ,2010 Business Telecom Products © - 2012 25 Reality check • 2 out of 5 IT professionals are looking for a job in 2012 • 65% of employees at top global companies are currently looking for new career opportunities or are about to • Looking for Another Job 65% Another survey shows 84% of employees plan to look in 2012 Source: How to Lose Your Best IT Employees, Information Week, 2012; Talent Edge 2020: Building the recovery together—What talent expects and how leaders are responding, Deloitte, April 2011; Can you detect “Flight Cognition”?, Human Resource Executive, 2011; Business Telecom Products © - 2012 26 In today’s enterprise… • IT is bombarded with unreasonable expectations and given minimal support • Customer complaints and budget concerns are rapidly rising while the ability to increase productivity and retain skilled talent is being stifled What are some steps or solutions that can help in the near term? Business Telecom Products © - 2012 27 Leverage small things to save money Business Telecom Products © - 2012 28 Look for simple ways to save • Utilize unused warranties • Revive idle products • Increase employee awareness of preventative maintenance • Take better care of desktop assets • Budget review – 2 years • Energy savings Business Telecom Products © - 2012 29 Examine Total Cost of Ownership (TCO) • TCO over product life should be the main consideration when making purchases • Review each item carefully to determine the implications of long-term TCO • Resist the trap of accepting Improve productivity Maintenance Product lifecycle Tech Support Installation Warranty the cheapest price! Business Telecom Products © - 2012 30 Utilize warranties – even for the small stuff • Many items come with a manufacturer’s warranty—that is never used • These items, simple things like UC audio devices, are often seen as disposable— regardless of the fact that they may cost $200 or more • Over 90% of the time a headset that was suspected to be faulty didn’t need a purchased replacement at all Source: BTP internal study, 2011 Business Telecom Products © - 2012 31 Leverage small things to reduce complaints Business Telecom Products © - 2012 32 Improve customer satisfaction Small things like… • Quick response time • A live person to help • Correct solutions • Quality products • Treated with respect Business Telecom Products © - 2012 33 Leverage small things to increase productivity Business Telecom Products © - 2012 34 Handset vs. headset Headsets, a small thing that is often overlooked, drastically affects productivity • Moving to headsets improves productivity by up to 43% • Headset users placed an average of 16 more calls a day than those using traditional handsets Source: Jabra Brings Lotus Sametime Unified Communications To Headsets, InformationWeek, 2011 Business Telecom Products © - 2012 35 Small things make a big difference Look beyond the call center and help desk Loan processors at a mortgage corporation were observed as they conducted normal business over a 90day period • Those with wireless headsets closed 23.5% more loans than those with corded Source: Worker productivity increases nearly 25 percent with Plantronics Headset use, Plantronics, 2004 Business Telecom Products © - 2012 36 Leverage small things to maintain employee satisfaction Business Telecom Products © - 2012 37 Little things go a long way The right headset or UC audio device leads to: • Higher morale • Lower fatigue levels • Increased mobility • Fewer phone-related physical complaints • Unique accommodations Business Telecom Products © - 2012 38 Skilled workers look at minor things • The right tools simply work better for end users, they are appreciated more, and are better taken care of Kevin Sheridan, Chief Engagement Officer at consulting firm, HR Solutions, said that one of those answers is simple: Employees "want to know that they're reporting to someone who cares about them as a person and cares about their engagement level" Source: Workers eager to job hunt as morale plunges, USA Today, 2011 Business Telecom Products © - 2012 39 Develop strategic partnerships Business Telecom Products © - 2012 40 Collaborate with partners who specialize • Outstanding customer service = improved ROI • Relieve repeated trivial issues plaguing IT • Fewer frustrated end-users Look for… • Top suppliers that include their own set-up, installation, maintenance, service, warranties, AND who will field end-user concerns and questions Business Telecom Products © - 2012 41 Look for a provider that… Understands it is the small things that can help solve major problems • Willing works with you to fix the problem instead of trying to sell you new products • Offers free product evaluations • Provides technical support and expertise Business Telecom Products © - 2012 42 Weigh the consequences Can the partner alleviate concerns regarding: • Unnecessary downtime • Replacement costs • IT help desk time • Customer retention, satisfaction, and acquisition Business Telecom Products © - 2012 43 Will the partner go the extra mile? • Will their product be compatible and make end-users happy? • Will they deliver the technology and the support FAST? • Will the partner work to take some of the load off IT? • Does the partner have proven results – can they show how they have helped companies save money? Business Telecom Products © - 2012 44 Increase employee productivity, decrease TCO? An expert partner will help you navigate through the selection process – all the way to the end They should be certified as an expert by manufacturer They should offer free troubleshooting and support throughout product life Can they help lower your TCO? Business Telecom Products © - 2012 45 We hope you’ve learned a great deal today • In today’s IT environment, managing budgets, allocating resources, handling customer irritations, increasing productivity and retaining talent is crucial • It is often the small details that mean the difference between success and failure Business Telecom Products © - 2012 46 Educational insights brought to you by… We understand service is a lost art today. We embrace the art and strive to master it every day! Business Telecom Products © - 2012 47 At BTP, serving YOU is our top priority • We know that with thousands of different UC audio devices and replacement parts on the market, managing it all can be a daunting task • We make it our business to know each and every product available, so that you don’t have to • We guide our clients to the right compatibility, comfort, voice and video quality to enhance their most important function—their communication Business Telecom Products © - 2012 48 Facts about Business Telecom Products • 20 years specializing in the last 5 feet of office communication systems • Certified UC Audio Endpoint Specialist – one of 7 nationwide • Expertise ensures we recommend the best products for your application • FREE setup and training for first time users and UC deployments Business Telecom Products © - 2012 49 Facts about Business Telecom Products • Calls answered LIVE - full support, delivering the best return on your investment, lower TCO • Free lifetime support for products purchased from BTP • Trained experts help you avoid buying new products unnecessarily – up to 90% of the time Business Telecom Products © - 2012 50 Facts about Business Telecom Products • Relieve help desk and IT staff from support calls, focus on higher level activities • Prompt, accurate order entry and shipping ensure minimized downtime • Core values of honesty, integrity and respect – doing business the old fashioned way Business Telecom Products © - 2012 51 What our clients are saying Your service to our company has been outstanding and we appreciate all that you do to take care of us. – L. Campbell, Alaska Airlines I’ve said it before, but it’s worth repeating. If all my vendors were even half as good as you folks, my life would be MUCH easier! – B. Hunt, City of Olympia Business Telecom Products © - 2012 52 What our clients are saying Thanks for all you do for us. We are thrilled to have a “person” instead of a company for our headset needs. The headset “bother” is no longer a big deal with all your insight. – M. Hanson, CTS LanguageLink …I could find it a little cheaper online, but told them these folks are doing a heck of a job, we’ll go with them… – D. Ashe, WA Dept of Corrections Business Telecom Products © - 2012 53 Diverse client base State of Washington City of Portland Business Telecom Products © - 2012 54 Free Headset Audit, a $995 Value! • Count, categorize by brand, model and age • Compatibility check • Ensure your headsets are used optimally • 9 point quality check: transmit/receive sound, side tone/distortion, clarity, settings, correct • Test suspected faulty headsets, refurbish working ones • Care and maintenance Business Telecom Products © - 2012 55 We can help. Business Telecom Products © - 2012 56 Mastering the lost art of customer service. Mastering the lost art of customer service. Thank you. Old fashioned values in a high tech world www.btpi.com