The pressures continue unabated—deliver higher and higher levels of customer support while simultaneously lowering the costs of that support. Organizational debates are fierce as leaders search for appropriate solutions to achieve these seemingly conflicting objectives. The consolidated support model—one that integrates support for all user requests through a single point of contact—continues to earn credibility. While it is difficult to measure the effectiveness of any single approach, the journey toward consolidated support itself could prove to be a profitable adventure. If you are considering the consolidated support model, Gloria’s insights may get you started in the right direction.

Daly. What is a consolidated support model?

Heck. Our formal definition of a consolidated support model (CSM) is the integration of all user-generated requests and the assurance that the infrastructure and management controls are in place to provide efficient and effective support. That infrastructure includes the organization, processes and technology. Typically, a single point of contact interface to the model is employed to funnel requests through a single point for incident tracking and management, performance measurement, and resource management and controls.

Daly. Are we also referring to physical consolidation?

Heck. Consolidation is a broad term. It could mean a physical consolidation, putting all support resources in one location, or a virtual consolidation, using networking technology to link resources that remain distributed. Of course, it could also be a hybrid of physical and virtual. The decision to include physical and/or virtual consolidation depends primarily on the user requirements and other critical factors, such as global support (typically follow-the-sun), resource availability, and mission critical applications.

Daly. Is consolidation synonymous with support centralization?

Heck. Not necessarily. CSM is a conceptual model based upon standard practices and technology, which takes all requests from users and channels support through a single point of contact. This consolidated approach facilitates the tracking of all types of requests and the costs of supporting those users’ requests.

Now “all,” in the strictest sense of the word, embodies requests regarding a purchase order status, to a PC application problem, to empty paper towel dispensers, and travel expense reimbursement policies. Each organization will determine what types of requests are appropriate to go into the model. My clients usually begin with the strictest definition of consolidated support and then tailor their own ingredients.

Support centralization, to me, implies a single authority with organizational responsibilities across the support provider organizations. A CSM does not necessarily imply centralized authority.

Daly. More than 50 percent of the audience at last year’s conference reported that they are responsible for supporting both internal IT help desk and customer support organizations, another variety of consolidation. That is a significant percentage. Are we also talking about this scenario?

Heck. It is difficult to discern whether those respondents represented support consolidation initiatives. If we look deeper, I suspect that these “consolidated” organizations can benefit from standardized processes and technologies, and probably do not have their analysts answering PC application problem questions on one call and taking a catalog order on the next.

Daly. However, to the extent that they could share infrastructure, that could be a plausible next step.

Heck. Once an infrastructure is built, I see no reason not to use the same infrastructure for both internal and external support. Share the technology, look at standardized processes, establish management controls, and both support organizations would lower costs and provide a more consistent view of service performance.

Daly. Why should companies be looking at the consolidated support model?

Heck. Four key business realities are behind this trend. Cost reduction is the prevailing reason. Given today’s climate, in which everyone is looking for better support with fewer people at less cost, consolidation makes sense. High customer dissatisfaction and unacceptable levels of performance are a second key driver for change. Corporate mergers and acquisitions are also driving initiatives for a consolidated support model. Finally, companies that are regulated by some government agency or that must have standards in place for licensing compliance need to get all parties in the organization on the same page. The consolidated service model drives standardization and centralized controls.

Daly. What groups within companies are pushing for consolidation?

Heck. It isn’t a particular group, per se. However, I am seeing a realization by operational managers who recognize the potential economies of scale and improved customer satisfaction that can be achieved by consolidation. These managers end up acting as the change agents and champions of consolidated support. But, it’s not the networking group or the operations group asking to consolidate. There still seems to be a top down desire for consolidation. Senior managers are pushing for it primarily because it can reduce costs and, secondarily, help deliver better customer service.

Daly. How do you know if your support organization is a likely candidate for consolidation?

Heck. Indicators arise from benchmarking your organization to typical industry performance metrics (cost per call, call volumes, resolution rates, customer satisfaction) and other management measurements, such as total cost of ownership, span of control, and employee satisfaction. Other key areas to understand include tool availability (self-support, Web-enabled support, open architecture, etc.) and cultural issues, such as resistance to change, organizational structure, and alignment with corporate objectives. If your organization is not performing to industry standards or other management objectives, if self-support tool availability is limited, or you have identified significant cultural issues, your organization may be a good candidate for CSM.

Daly. How can you get support for a consolidation plan—upward and downward?

Heck. There are three key components. First is executive support. Executive support does not mean putting posters in the cafeteria. It means providing the funding and the time resource to make it happen. And, it means going to meetings, taking on projects, and participating as an active team member.

Second is achieving complete ownership and buy-in by all parties—staff, managers, executives, and customers—which is accomplished when everyone participates in developing and executing the plans.

Buy-in requires the third key component, effective communication and marketing to both your internal organization and your customers. While executives look at the initiative as a whole and fund the effort, the people who make it happen are the operations managers and middle managers. People are often reluctant to change. In particular, lower level support workers seem to be more afraid of consolidation. They fear a loss of power and fear that their jobs may be in jeopardy. You must sell the concept, demonstrate the value of consolidated support, and communicate regularly in all directions.

Daly. How do you ensure that the consolidated operation will achieve its objectives?

Heck. First and foremost, you must have an effective implementation plan that is aligned with the consolidation objectives. Then, analyze and select the optimal transition method to the new model. Are you going to do a pilot? Will you do the cut over? Will you phase the implementation across a number of major milestones? Next, make sure you have the management buy-in that you need, that your staff is trained, that your staffing levels meet your demand, and determine how you are going to maintain service levels throughout.

Daly. How do you maintain service levels during the transition?

Heck. Make sure that your plan includes the following components. First, a clear, documented understanding of the customer requirements—what are their expectations and what you are providing to meet those expectations. Next, include service level agreements with the customers and documents of understanding with all of the service providers so that everyone has a sense of ownership in the support process. If you have your baseline performance measurements, document them in the plan. Otherwise, make obtaining baseline measurements the first goal; you will need milestones to measure progress, ensure staff and user training is effective and timely. Finally, execute the communication and marketing plan as developed.

Daly. Are there any other key variables we should address?

Heck. Yes, standards. Standard technology and documented standard processes for all aspects of support, including incident management, problem management, change management, and asset management.

Daly. Can you discuss barriers to achieving a consolidated support model?

Heck. Lack of standardization in products, services, or processes, makes it very difficult to implement a consolidated support model.

Daly. Yet, if a company plans to consolidate, then standardization might be the first step in the plan, turning this barrier around into a strategic goal.

Heck. True. Another barrier in that sense is not having a clear definition of your customers’ requirements. You may think you know your customers’ needs; you build a structure and then find out that what you built does not reflect what your customers’ wanted or needed.

Not establishing a performance baseline first is another barrier to success. Without a baseline it is difficult to determine how you are performing today, what kind of performance to expect or target, and if you did achieve your targets. This barrier often becomes one of the first action items.

Companies trying to deliver global support find that the country-by-country differences in work ethics and technical requirements present a significant barrier to consolidated support.

Other challenges may include overcoming an established corporate culture’s resistance to change, “turf wars” over authority and governance, and effective project management

Daly. Can consolidation really lower costs and improve customer satisfaction?

Heck. Yes, I believe so. As with many aspects of support, objectively linking lower total cost of ownership or improved customer satisfaction solely to the implementation of a consolidated support model is challenging. It is further compounded by the fact that the model is often a component of a larger support strategy, organizational restructuring, or the result of a corporate merger. Often the positive results, at best, wind up being anecdotal. Nonetheless, you can expect cost savings and improved customer satisfaction if the business justification for the transition to a consolidated model is sound, the planning is thorough, and the implementation is effectively managed.

Daly. The old question, is it the whole or the sum of the parts?

Heck. Having the strategy in place and working the plan may lower the cost of ownership even before you achieve the ultimate goal of a consolidated support model. The strategy may include reducing hidden costs—that two-thirds of costs that can exist below the waterline of the total cost of ownership iceberg. Sometimes the most significant value in transitioning to this model results from quantifying actual support costs and keeping them above the waterline for tracking and optimizing. The more of the iceberg that is visible, the lower the risk. Just ask the captain of the Titanic.

Gloria Heck, a 25-year support industry veteran, is founder and president of Millennium Consulting Partners, Inc. She previously spent 18 years with IBM managing international help desk and call centers, as well as leading a consulting group specializing in support center assessment, strategy development and implementation assistance. Gloria is featured in the session, “If You Don’t Want to Know, Don’t Ask!” sponsored by ICSA at HDI 2003.

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