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Chapter 5 | Setting the stage: The case context

5.2 Eon Customer Support (Eon CS)

5.2.2 The organizational structure at Eon CS

Eon CS is organized with three levels of management (central, divisional, and group levels). In line with the top-management group, the CEO makes decisions for the company at a central level. Such decisions aim to be in line with Eon’s vision. However, the operative responsibility for carrying out these decisions is with the division manager (divisional level). The group level comprises managers for each work group (middle managers), the support function in each group (operational support), and call center agents (Figure 4).

37 For example, experienced agents often answered questions of culture during interviews and observations with the expression: ”It’s in the walls”.

Figure 4: Organizational actors and functions in the front-office division at Eon CS

Since this study aims to understand performance and the elements that influence it in the call center context, the main emphasis is on understanding the operational components of the company. Therefore, my main attention is directed toward studying the division manager, middle managers, the operational supports, and call center agents.

The division manager at Eon CS

The division manager’s main task is carrying out the decisions made by the CEO and the top-management group by implementing their decisions into the operative organization. The division manager develops the front-office business for it to reach its goals, which are to translate the vision of the company (Eon Sweden) “to deliver the most liked customer experience” and to become “one of the most highly ranked companies in our industry in terms of efficiency”.38 The division manager also helps Eon CS develop a lean, transparent organization (E.ON Sverige, 2012).

These aims are implemented by meeting a number of strategic objectives (KPIs) at the firm level that are benchmarked against the energy

38 Division manager, November 2012.

Organizational levels

The central level

The divisional level

The group level

Actors Main functions

Eon Customer Support

CEO

Division manager (Front-office)

Middle managers

Operational supports

Call center agents

- Directing the company - Making strategic decisions of

company operations and development - Following Eon’s vision

- Implement central decisions - Operationalize Eon’s vision - Meet operational targets

- Enable agents to meet performance targets - Set and evaluate performance

- Provide support for middle managers and agents

- Provide help to customers - Reaching targets

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industry.39 The division manager also is mainly responsible for reaching a number of operational targets that are more detailed (such as errand times, Customer Satisfaction Index, NPS, and sales).40 Although a certain influence is given to middle managers, since they have the main responsibility for the call center agents in their respective work groups, the division manager is still mainly responsible for the operations and performance outcomes of the work groups in the organization. The division manager also sets middle managers’ salaries and bonuses based on the work group’s success, for which each manager is responsible.

Success is evaluated by whether or not the work group reached expected performance levels.

The middle managers at Eon CS

A middle manager at Eon CS is at the lowest managerial level and is responsible for managing a work group of approximately 20 call center agents to help them meet their work goals. A middle manager’s main responsibility is controlling and guiding the agents to reach the performance targets set out for them (determined by the middle manager, in agreement with each agent). These actions are followed by performance evaluations of the agents. The middle manager also sets salaries and bonuses for each agent in the work group and plans the call center agents’

schedules, which must be in line with the current flux of incoming calls. A middle manager also is fully responsible for making sure that the dynamics between the agents in the group is functioning well. All 14 middle managers at Eon CS (one for each work group) report the group’s activities and performance levels to the division manager.

The operational supports at Eon CS

Each work group at Eon CS has one operational support role, which functions as an intermediary between the call center agents and their manager. The operational supports’ main task is to facilitate agents’

ability to carry out their daily work and provide help in solving specific problems. The operational supports possess detailed knowledge of how to carry out the call center work and are physically or virtually available in

39 The benchmark for the KPIs utilized by Eon CS (such as errand times) is based upon a consultancy report (conducted by CapGemini during 2011 with statistics from 2010).

The targets are also benchmarked against (internal) operations within the Eon Group as well as externally – against peers within each industry at an international level (CFO at Eon CS, April 2015).

40 Division manager, April 2015.

the group.41 Their role also includes providing informal, but detailed reports to the middle manager of individual agents’ performance and task execution to facilitate evaluation of the agent’s development and ability to solve customer errands. During the last two years, the operational supports were assigned additional tasks that reduced their availability to provide help to agents and middle managers. The effects of their absence vary between groups, but generally resulted in agents approaching their colleagues within the work group for help and guidance to a larger degree than previously (see Chapter 7).

The call center agents and the work at Eon CS

A call center agent refers to a worker with the initial main responsibility for the company’s interactions with its customers. The majority of these interactions are initiated by the customers through incoming calls. The call center agents at Eon CS handle about 1 million customer calls each year.42 A typical call generally includes solving more than one issue, in which the most frequent routine-based errands might include:

x Signing a new agreement, or re-signing agreements when current contract expires

x Asking for changes of the conditions of a current agreement (such as discounts, subscribing/renouncing environmentally friendly energy)

x Change of address

x Questions regarding variable, fixed, and mixed rates with various contract lengths

x Questions regarding invoices (unclear, incorrect, requesting a deferral if having problems paying, asking for electronic invoices) However, the agents sometimes also need to answer questions and solve issues that do not frequently occur (generally referred to as problem-based issues), such as:

x Energy prices and other questions in relation to various energy sources in relation to signing a new agreement

41 For operational supports to be virtually available, they must be available to provide responses through the internal instant messenger online function (called Lync), which functions as a chat in which agents can write a message to any operational support and expect a response in a few seconds or minutes.

42 The number of phone-based errands is decreasing each year (1 million in 2011, 880,000 in 2012 and, 850,000 in 2013, and 658,600 in 2014) (NPS Coordinator, May 2015).

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x Issues relating to invoices that are not of a general nature (such as tracking down a former customer to pay an invoice, changes in relation to renewable energy)

x Questions regarding technical support of the company’s energy device function (100 check), which provides consumers with direct information about their energy consumption

x Issues related to power outages (such as complaints or requests for reimbursement for damages caused by power outage)

While interacting with customers on incoming calls, the agents are also assigned to offer various sales agreements, such as insurance agreements in relation to change of address, energy from wind power, and technical equipment for measuring the energy consumption in the household. These sales agreements, also called leads, are commissioned by another subsidiary of Eon Sweden (Eon Sales) (see Appendix 3, Table 22) and are presented as a way to increase the company’s revenue while giving the customer added value.43

Agents handle incoming customer calls through a headphone, with support from a computer (with two screens) and the integrated IT systems.

In addition to these more traditional interactions, the agents can resolve issues through other channels, such as by responding to questions through the company’s web-based chat (to a limited extent) and e-mail correspondence. The call center agents also handle administrative tasks such as taking care of correspondence from customers concerning contracts, payments, and other information that is received by mail. All in all, the operations carried out at these two call centers comprise low-skilled work, in which the agents primarily need general skills to carry out their tasks. Since agents don’t manage these customer relations in person, and customers are routed to any available agent with the right knowledge (rather than to an agent with whom the customer has been in contact previously), the operations carried out by these agents are relatively anonymous.44

Eon CS operates with employed and temporary agents (referred to as consultants). Although the proportions shift between years, the average

43 Division manager, HR manager at Eon CS, November 2014.

44 Customers can also solve more routine issues (such as receiving and paying invoices, changing address) on the company’s website and mobile applications. Information from company presentation of “Eon’s Extended Customer Service”, received April 2015.

ration during the time of my study was at approximately 80 percent employed agents versus 20 percent temporary agents.45 Forecasts of incoming customer calls and the available number of agents provide the basis for the number of consultants hired. The total number of agents also varied (252 in 2011, 274 in 2012, 244 in 2013, and 214 agents in 2014). In addition, the average agent is female,46 works full time,47 has been with the company for approximately six years,48 is 36 years old,49 and has a high-school degree as the highest educational level.50

Given the flat organizational structure (Figure 4), agents’ opportunities for advancement are rather limited, since a large number of agents compete for positions within the support unit (a support group that handles agent scheduling), to become an operational support or a middle manager.

Despite these low opportunities to advance, the turnover among the agents at Eon CS was rather low during the time of my study.51 Agents’ salary growth and bonus size is determined by the middle manager during performance appraisals (Chapter 6.1). However, hired agents do not receive bonuses and are excluded from salary discussions with the middle manager. Instead, the recruitment firm sets their salaries.

5.2.3 A representative example of agents’ daily work activities