Executive Summary/Abstract The proliferation of customer service channels and increasing customer expectations for accurate answers across all channels has made it more difficult for organizations to provide adequate customer service. One of the most common problems companies face is having inaccurate or outdated content published in their Web, email, chat or other knowledge bases. This leads to an inconsistent customer experience and eventually a loss of trust in the company. Many organizations also face internal governance issues, either through a lack of central knowledge administration, or confusion about which business unit or group owns and manages content. And, in some cases, there are separate knowledge bases for different channels and groups such as customer care and marketing, which results in discrete content silos, as well as higher resource and technology costs to update and support multiple systems. To improve the customer experience, it is critical for organizations to address these problems through an accurate, accessible and easy-to-maintain knowledge base. Unfortunately, many companies simply buy the latest knowledge management softwareand fail to address the underlying organizational issues that drive effective knowledge management. Based on successful client experiences, Accenture recommends adopting an end-to-end knowledge management strategy that combines enterprise wide governance and well-defined processes with a knowledge management platform. Organizations that follow this systematic approach will be able to establish a knowledge management capability with assigned roles and responsibilities for maintaining content, improve content quality and consistency across multiple service channels to deliver a better customer experience, and significantly reduce operating costs through a consolidated platform. Page 1 Page 2 Choice of Service Channels Creates Quandary Today, when customers have questions about an organizations products or services, they have many options from which to choose. Should they start with the self-service options on the companys web siteusing either a computer or tablet? Send an email to customer service? Initiate an online chat session with a customer service agent? Consult the companys mobile phone app? Navigate an interactive voice response (IVR) system? Or pick up the phone and talk to a live agent? Regardless of which channel customers choose, they want easy access to an accurate and consistent answer. This expectation puts organizations into a quandary. Customer service executives must determine how to supply correct answers to customers across a proliferation of service channels for the lowest possible cost. To achieve this objective, organizations should balance increasing customer expectations with several internal operational decisionsall related to how knowledge is managed. Accentures latest global consumer research shows that three-quarters of respondents expect it to be easier to obtain customer service, 61 percent are not satisfied with the number of choices they have to receive service, and one in two are not satisfied with their access to customer service using multiple channels. 1
In response to troubling statistics like these, organizations are hastily adding new customer service channels, such as social media sites or mobile applications. Yet even as they attempt to improve service options, these companies may be failing to think about the overarching knowledge management strategy that will power all of these channels. A number of organizations also lack a knowledge management governance structure that provides clear leadership, designates ownership of content, or establishes guidelines on structure, style and tone. In addition, companies may lack resources to maintain an ever-increasing amount of content, as well as formal processes for creating and maintaining high-quality content. Out-of-date or orphaned knowledge can result in message inaccuracies and inconsistences across channels. When this happens, customers may find different answers depending on which service channel they choose. This erodes customer confidence and trustin the product or service, the brand, and eventually the entire company. Lastly, some organizations rely too heavily on technology to solve the problem, thinking that the latest version of knowledge management software will supply customer service agents with the information they need. But technology by itself is an insufficient solution, and, in some cases, may carry the same issues to a new platform. In addition, as organizations implement new customer service channels, they often set up different knowledge repositories; as a result, content becomes siloed. Managing these multiple knowledge bases and varying technologies can be both complex and cost-prohibitive. 1. Accenture 2011 Global Consumer Research Study. The New Realities of Dating in the Digital Age: Are Customers Really Cheating, or Are You Just Not Paying Enough Attention? Retrieved [M/D], 2012 from http://www. accenture.com/us-en/pages/insight-acn-global-consumer-research-study.aspx Guiding Principles for Knowledge Management To maximize return on investment for a knowledge management system, organizations should focus on content that is: AccurateKnowledge management content must be correct and address an organizations core issues. AccessibleContent should be easy to understand and viewable through the channel and devices customers use. Easy to MaintainOrganizations should implement clear and simple processes that enable customer service representatives to establish a virtuous loop and continually review and update content based on feedback, ratings and analytics. Overcoming Obstacles with Knowledge Management To meet customer expectations and prepare for increasing service channel complexity, organizations should take a more comprehensive knowledge management approach. Based on a number of successful client experiences, Accenture recommends adopting an end-to- end knowledge management strategy that combines enterprise wide governance with well- defined processes to drive usage of a centralized knowledge management platform based on leading edge technology. The culminating goal is an integrated, enterprise wide knowledge baseone that organizations can use to capture, store, retrieve and continually refine valuable information to provide customers with the right answer at the right time across all channels. Equally important, Accentures approach can help organizations to reduce operating costs while optimizing the customer experience. Page 3 Key questions include: Who creates the content? Who owns it? What is the best way to gather information from subject matter experts into the knowledge base? Who are the liaisons between content owners and other enterprise stakeholders? Who approves content changes? How can agents and customers rate content for continual improvement? Organizations that think through these people-related aspects will be able to improve the effectiveness and efficiency of knowledge management, and improve adoption of related systems. In terms of governance, customer service executives should adopt a knowledge management governance model that reflects their organizational structure, and balances the requirements of various business groups and stakeholders with the needs of the enterprise. Options include a centralized model with a single team that sets processes, policies and standards across the organization, or a representative model that includes participation from key stakeholders, such as product or service owners, and customer care, IT, marketing, legal and social media functions. Three Components of Knowledge Management Strategy As organizations rethink their approach to knowledge management, the first step is to develop a strategy that focuses on three complementary components: people, processes and technology. People Knowledge management is most effective when an organization has an established knowledge management capability and dedicated knowledge organization staffed with committed resources. This capability includes a governance model with active leadership, clearly defined knowledge management roles and responsibilities, with performance metrics and targets that drive quality content. Part of this effort involves thinking about the people who will create, manage and use the knowledge, including content authors, customer service agents and customers. Defining knowledge management roles and responsibilities helps confirm that the knowledge base contains accurate and up-to-date content across all channels. Sample roles include content authors, who produce content based off of defined guidelines and style sheets; and content liaisons representing various groups within the organization, who are responsible for reviewing and approving content. To encourage employees to fulfill their knowledge management roles and produce usable content, organizations can incorporate knowledge management performance metrics into the annual review process. It is also important to offer incentives that focus on quality of information over quantity. One way to accomplish this is to use a rating system that measures the quality of articles that an individual contributes based on how the articles are being used by agents and customers, or how well the articles answer commonly asked questions. Case Study Focusing on the people component was critical for a leading software company as part of its overall knowledge management strategy. The company was organized into distinct business units by product line and each unit had its own sales, marketing, customer care and IT organizations. In an effort to improve operations, the company turned to Accenture to help develop an enterprise-level knowledge management capability that could be leveraged across the various business units. Accenture helped establish a governance structure that enabled the business units to collaborate on a common knowledge management approach, as well as to identify requirements for the knowledge management platform. The governance plan included a steering committee that developed the strategic direction of the platform, a knowledge management team with representatives from each business unit, and a change management team that reviewed and approved changes to the platform. These groups met regularly for status updates and to share lessons learned about the knowledge management system implementation. Accenture also helped the company to create a knowledge management community of practice to define and manage processes, which were integrated into the knowledge management platform. Once the platform was complete, a campaign was implemented to encourage customer service representatives to use the new knowledge management system through change management and training support. The end-to-end knowledge management approach, with an emphasis on governance and roles, helped the software company to reduce redundant infrastructure and tool investments, and also improve the effectiveness of agent and customer experiences. With the new centralized knowledge management system, the company achieved a 15 percent increase in call deflections for knowledge base content, a 66 percent increase in article resolution rates, a 340 percent reduction in failed searches, and an 85 percent accuracy of search results, enabling customer service representatives to provide quick and accurate answers to customers. Page 4 Processes Organizations can further improve knowledge management efficacy by following well-defined and standardized content management processes. This capability encompasses detailed workflow processes, along with collaboration tools, such as feedback cycles, rating systems and analytics, to help continually improve content from generation through delivery. Considering how knowledge will be collected, reviewed and refined is a good starting point for process definition. Key questions include: how will subject matter experts submit content? How will key stakeholder groups review and approve content? What is the best way to speed the time between content creation and publication? How will the knowledge base be refreshed to monitor continuous improvement? How will the organization prioritize the most critical pieces to update? How much content should the company leverage from external sources, such as social media sites? What is the proper way to measure content quality? Organizations that design and use formal and consistent processes will reduce the time it takes to capture knowledge, while increasing the amount and quality of the content captured. At the same time, knowledge management processes should not be a burden. Some businesses may overcomplicate the workflow by requiring numerous content approvals or by trying to maintain too tight of a control on content. But these constraints limit flexibility. Instead, organizations should design knowledge management processes that make it quick and easy to publish content, while also providing the necessary oversight and approvals to monitor quality. One useful way to support content expediency and quality is to insert a feedback loop into knowledge management processes. Using a feedback mechanism, customer service agents can identify knowledge inaccuracies or gaps and recommend updates to content. The same type of tool can be used externally in the form of a ratings system such as a one to five scale. In this way, customers can give a low score to content that they believe is inconsistent or needs correction, and a high score to knowledge that they find particularly useful. In all cases, knowledge management processes should incorporate a cycle of continuous improvement. To accomplish this objective, organizations can commit to a regular review of how knowledge is created and used, including the data collected from the feedback and rating tools. This process helps enable a virtuous loop in which both employees and customers are more willing to share feedback because they know it will be acted on (see Figure 1). In addition, organizations can collect data and run analytics to provide insights on the knowledge that is most valuable and the content that should be targeted for immediate improvement. A u t h o r A n a l y t i c s F e e d b a c k C o n s u m e R e v i e w P u b l i s h Figure 1: Knowledge management is most effective when it incorporates continuous improvement, as depicted in this virtuous loop. Page 5 2012 Accenture. All rights reserved. Case Study Recognizing the need for more consistent and rigorous knowledge management processes, a global eCommerce company engaged Accenture for help with its knowledge management approach. As part of an end-to-end effort, Accenture instituted several new processes, including a common authoring, translation and approval workflow and an enterprise wide process for continual knowledge improvement. To help confirm the company created high- quality content, Accenture integrated a feedback and rating mechanism for existing knowledge, providing agents and customers with an easy way to flag out-of-date articles or recommend updates. This tool enabled the company to improve content consistency across various channels. Accenture also gathered detailed analytics to help the company identify which articles were being used most frequently and effectively to solve customer problems. Specific data analyzed included the number of cases solved by article, average article rating, average time in workflow and at each step of the workflow, and average article aging to identify content that had not been updated recently. Working with Accenture, the global eCommerce company transformed its approach to knowledge management. Today, the company is using a single, global content repository that supports multiple service channels and more than 20 languages. Search results consistently achieve 85+ percent accuracy, enabling agents to find the right information at the right time. Accenture also supported the transition through change management and training that drove agent adoption of the new knowledge base to 73 percent after only four weeks, which was more than double the prior system. Page 6 Technology Organizations can complete their strategy with an integrated, enterprise wide knowledge management technology platform that enables search, sharing and archiving across the full content life cycle. This functionality makes it easier to repurpose old content and maintain version control. The knowledge repository should also have built-in tools for team collaboration through a central portal. Ideally, organizations will be able to consolidate all knowledge assets and metadata into a single, centralized content repository. If various knowledge management systems are in use across the enterprise, organizations will need to adapt their governance model to minimize redundancies and reduce costs. When making knowledge management platform decisions, organizations should consider these questions: does the technology provide all the necessary functionality? Is there a way to consolidate knowledge bases using technology? Will the technology support multiple channels and platforms? Does the technology provide analytics for continuous improvement? Can the technology leverage content sources not directly controlled by the organization, such as social media channels? Several aspects of the knowledge management technology should support ease of use for customer service representatives and customers alike. For instance, the knowledge base should employ a content architecture that provides the same knowledge across any channel (Web, chat, phone, IVR and more) and any platform (PCs, smartphones, tablets, televisions and more). Likewise, the content structure must support the needs of various channels: the Web channel should provide a detailed view of information with interactive content; the chat channel should include short, textual bits of content; and the phone channel should have simple instructions, potentially with illustrations of what the customer may be seeing. Tagging content with metadata is also crucial to improve the search function as it makes it possible for agents and customers to use contextual knowledge lookup. For example, an article on setting up an Apple iPhone could be tagged with iPhone (the product) and Setup (the function) so an organization could recommend this specific article in response to a customer inquiry on a self-service site. The search mechanism should move beyond simple keyword-based searches to incorporate key concepts, such as synonyms and spell checking. Knowledge management technology that uses natural language is ideal for this purpose. Lastly, localization that makes the same article available in all of the languages customers expect is critical in a global business world. Knowledge management technology should include mechanisms to schedule updates to localized versions when the primary language has been updated. Case Study Accenture helped the New York City government transform customer service through a comprehensive knowledge management approach using one, highly flexible knowledge management technology platform. The citys initial vision was to make it easier for residents to interact with more than 300 agencies to find information, file complaints and resolve issues. In many cases, residents did not know which agency to contact. Called NYC 311, it is now one of the largest and most sophisticated customer service systems in the world. Working closely with the citys IT department, Accenture led multiple teams to build and launch a centralized, all-purpose call facility that would direct customers to information or resources on a 24/7 basis. Accenture first developed a searchable knowledge base and taxonomy of city, state and federal government services. Using enterprise content management technologies, the team fed information into a customer relationship management tool and established the basic structure of information that enabled customer service representatives to respond quickly to customers inquiries. The result was a comprehensive knowledge repository for 7,000 aspects of the citys government. Accenture subsequently worked with New York City government to launch a Web- based self-service channel called 311 Online. To maximize efficiency and reduce costs, Accenture leveraged the citys existing NYC 311 call center content management system for the online channel and made it possible to publish updates easily to both the call center and Web channel. Today, NYC 311 supports nearly 300 city, state and federal agencies and approximately 4,000 services for residents with information that is available in 170 languages, from Amharic to Zulu. On an average weekday, more than 60,000 customers dial 311, and the majority of calls are handled in four minutes or less. Approximately 80 percent of calls are answered in 30 seconds or less, and 85 percent of 311 customers resolve their inquiry during their initial call. Page 7 A Deeper Look at End-to-end Knowledge Management Accenture defines knowledge management as a managed program that combines people, processes, and technology to deliver the right information at the right time. Once the knowledge management program is in place, organizations can encourage employee adoption and participation through a change management initiative. This initiative is directed at the customer service agents and other employees who will use the knowledge management system and helps to identify needs, develop a change network and communicate the benefits of the new system. A core component of the change management effort is effective training to help people maximize use of the new system. Leadership & Communication Support Organization Communities of Practice Individuals Governance and Organization Plan Technical Architecture and Taxonomy User Portal Search Knowledge Repository On Board & Off Board Sources Business Strategy Process Knowledge Management Processes Knowledge Strategy Incentives Metrics Change Management Plan Program Benefits Realization and Metrics Approach Figure 2: Accenture takes a comprehensive approach to knowledge management. Page 8 2012 Accenture. All rights reserved. Page 9 High Performance through Knowledge Management Organizations that adopt an end-to-end knowledge management approach focused on people, processes and technology have the potential to realize benefits such as these: Improved efficiency and effectiveness Defining and enforcing a knowledge management programwith governance including central administration, designated roles and responsibilities, and easy-to- use processesdrives employee behavior to support and use the knowledge management system. Improved content quality and consistency across multi-service channels Incentivizing customer service representatives to focus on quality of information over quantity, and incorporating a feedback loop and continuous update cycle will help verify that the knowledge base contains the right information across all service channels. Increased customer trust and loyalty Providing consistent information on all service channels will help customers answer their questions quickly, and confirm trust in the brand and company, which ultimately improves loyalty. This consistency will also encourage customers to use self-service options without having to call an agent to validate answers, which is more expensive for organizations to support. Reduced resource and maintenance costs Consolidating multiple knowledge bases into a single, global repository makes it easier for employees to update and disseminate content across the enterprise. Where applicable in the organization, consolidation also decreases technology support costs for maintaining and upgrading multiple knowledge bases. Reduced customer service costs Accenture client experience shows that a highly functional knowledge management system can help customers resolve issues using self-service methods, which leads to call deflection and reduced call volume. An effective knowledge base can also help customer service agents resolve customer issues the first time, potentially reducing average call handle time and resulting in fewer repeat calls. Additional benefits organizations can achieve include a reduction in failed searches and an increase in the accuracy of search results. When combined, these operational improvements can have a vital effect making it possible for organizations to optimize the customer experience, and, ultimately, drive growth. Page 10 Sales and Customer Services Sales and Customer Services business domain helps companies acquire, develop and retain more profitable customer relationships. We offer a broad range of innovative capabilities that address every aspect of the customer experience, including pricing strategy and profitability assessment, customer analytics, direct and indirect sales force execution, customer service, field support, customer contact operations, and retail/branch operations. We use these combinations of skills to help our clients accelerate growth, improve sales productivity and reduce customer-care costshelping increase the value of their customer relationships and enhancing the economic value of their brands. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 249,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the worlds most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended August 31, 2011. Contact Us For further information, please contact: David Klimek david.m.klimek@accenture.com Adrienne Huang adrienne.s.huang@accenture.com Gregory Nye gregory.s.nye@accenture.com Copyright 2012 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture representative.