What is the ‘BPO Health Check’ Series?
We understand that the world of BPO partnerships isn’t always sunshine and rainbows. There are challenges, hurdles, and those inevitable tough conversations. That’s why we’ve created the ‘BPO Health Check’ series – a deep dive into the real issues clients and BPOs face.
We’ll be pulling back the curtain on those often-avoided topics, bringing you candid conversations, expert insights, and practical advice. From navigating missed KPIs to overcoming operational roadblocks, we aim to provide the tailored guidance you need to transform challenges into opportunities.
Up first? How to address missed KPIs with your BPO partner.
The Challenge: Missed KPIs and Damaged Relationships
Let’s face it: Even with strong collaboration, things don’t always go as planned with your BPO partner. Eventually, you’ll need to decide whether to repair the relationship or seek a new partner.
We believe in turning challenges into opportunities. By using a structured approach and the right CX technologies, often in collaboration with a BPO advisory team, poor outcomes can become steps toward improvement.
Our expertise ensures that whichever path you choose, it leads to better business results. Follow us on LinkedIn to add CX experts to your network.
Setting the Stage to Solve the Problem
You’re likely already having regular discussions with your BPO. But when do those conversations escalate to a deep dive into missed KPIs? And how do you approach these discussions constructively?
Before diving into the KPI conversation, ensure you have a solid foundation:
- Clear expectations and measurements: Both parties should understand what success looks like.
- A defined glide path: A roadmap for improvement should be in place.
- Regular reporting: This provides a clear picture of performance.
Remember, data is your ally. Collect at least three data points over weeks or months to build a strong case.
If issues persist, consider creating a Performance Improvement Plan (PIP) with clear goals, timelines, and responsibilities. Regular monitoring and feedback are crucial.
5-Step Approach to Discussing Missed KPIs with Your BPO Partner
The best-laid plans often encounter unexpected hurdles. When KPIs aren’t met, it can be easy to get caught in a back-and-forth with your BPO partner. To avoid this, a structured approach is essential. Here’s a five-step guide to navigating these challenging conversations and driving improvements.
Step 1: Initial Assessment and Communication
The first step is to pinpoint the problem. Carefully examine KPI reports to identify performance gaps. Once you’ve isolated the issues, bring in your CX leadership and strategy teams. These teams can provide valuable insights and facilitate communication.
Next, convene a meeting with all relevant stakeholders, including representatives from the BPO, CX leadership, and IT. This collaborative approach ensures everyone is aligned and committed to finding a solution.
Step 2: Root Cause Analysis
To effectively address the problem, you must understand its origins. Conduct a thorough root cause analysis using data analytics to identify trends and patterns. This deep dive into the data may reveal problem areas such as specific products or services driving up average handle times or automation-related impacts on customer satisfaction. Additionally, gathering feedback from frontline staff can provide invaluable insights into the challenges they face.
Step 3: Develop Solutions
With a clear understanding of the root causes, it’s time to brainstorm solutions. Engage your BPO partner in this process to foster collaboration and ownership. Explore opportunities to leverage CX technology and AI to enhance performance. Based on your findings, create a comprehensive corrective action plan.
Step 4: Training and Development
Skill gaps often contribute to missed KPIs. Evaluate your existing training programs to identify areas for improvement. Develop targeted training initiatives to address specific skill deficiencies. Moreover, providing training on CX technology and AI tools, such as AI-enabled knowledge bases or call recaps, can empower employees to perform at their best.
Step 5: Long-Term Strategy
To sustain improvements, it’s essential to establish a long-term strategy for KPI management. Continue to explore opportunities for CX technology integration and work closely with your BPO partner to ensure ongoing success.
By following these five steps, you can effectively address missed KPIs, strengthen your partnership with your BPO, and drive lasting improvements in customer experience.
When to Cut Bait vs. Doubling Down on Your BPO
The decision to stick with, expand, or part ways with a business process outsourcing (BPO) partner is a critical one. It can significantly impact your customer experience, operational efficiency, and bottom line. So, how do you know when it’s time to double down, bring in reinforcements, or cut bait entirely? Let’s dive in.
Establishing Accountability: Is Your BPO Meeting Expectations?
The first step is to assess your BPO’s performance against your KPIs. Are they consistently meeting or exceeding your expectations? If so, you might consider expanding your partnership. However, if performance is consistently lagging, it’s time to have a serious conversation.
Ask yourself these questions:
- Can your BPO reliably improve its performance?
- Do you have confidence in their ability to meet future challenges?
- Are there underlying issues that can be resolved with additional resources or support?
The “How Do I Know?” Factor
Determining whether to stick with, expand, or replace your BPO requires careful consideration of several factors:
- Performance: Are KPIs consistently met or exceeded? Are there specific areas of underperformance?
- Communication: Is communication open and effective? Are issues addressed promptly?
- Flexibility: Can the BPO adapt to changes in your business?
- Cost-effectiveness: Is the BPO providing value for the cost?
- Cultural Fit: Are the BPO’s values aligned with your company’s?
If your BPO is consistently underperforming in multiple areas, despite your best efforts to address the issues, it may be time to consider a change. However, if there are specific areas of improvement or if you believe the relationship has potential, you might consider bringing on additional BPO partners to support your needs.
Taking Action: Repair or Replace?
Once you’ve thoroughly assessed your BPO’s performance, it’s time to determine the best course of action. If you believe there’s potential for improvement, a direct conversation with your partner is essential. Come prepared with concrete data and clear expectations. Outline a specific timeline for improvement and be ready to discuss the potential consequences of not meeting these goals.
If you find yourself facing challenges in this process and you partner with us, our BPO and Client Success team is here to support you. Our dedicated experts are committed to driving client satisfaction and ensuring mutual success. With a deep understanding of your unique business objectives, we provide unparalleled guidance and support.
Unlike our competitors, we view our relationship with clients as a true partnership that extends beyond service delivery. Our team acts as a strategic advisor, proactively identifying opportunities to optimize performance. By fostering open communication and collaboration, we build long-lasting relationships founded on trust and mutual growth.
However, if your BPO’s performance continues to fall short of expectations, it may be time to explore new partnerships. In this case, a clear understanding of your specific requirements and expectations for a new BPO is crucial.
Whether you choose to repair or replace your BPO, having a clear plan and seeking the right support is essential for achieving your business objectives.
Remember: Making a change in BPO partners can be disruptive, so it’s important to weigh the potential benefits against the costs and risks.
Already working with Outsource Consultants? Then you know you already have access to our exceptional BPO and Client Success Team led by Jade Giesen to own these tough conversations on your behalf. Never hesitate to reach out.
Or are you struggling with these discussions on your own? If so, our team at Outsource Consultants offers proven solutions and expert guidance.
Discover how we can elevate your customer experience and BPO partnership by booking a strategy call today.
