Categories
Call Center Articles

Going Virtual

By Peter Lyle DeHaan, PhD

Author Peter Lyle DeHaan

As I wrote my column for the last issue, I was struck with the realization that I had structured Connections Magazine as a virtual company. This wasn’t intentional; it just worked out that way. Not only am I the only one working in the “corporate office,” there are no local vendors either. Indeed everyone who takes part in the production of the magazine is from out of state – different states!

Dave, our layout genius and designer extraordinaire is in Pennsylvania. His work gets sent over the Internet to our printer in Ohio. There they work up the proofs and put them on an FTP site for Dave and me to review and then approve. The mailing list is maintained by myself in Michigan. For each issue, I output the file and email it to our list processor. They massage the data and sort the list, in turn forwarding it to our printer. The printer merges the mailing list with the magazines and delivers them to the post office. An army of postal carriers deliver the finished package to your home or office.

The newest member of the team is Valerie Port, our media rep., in New York; she handles the display advertising sales. As editor, I plan, solicit, collect, and edit the articles and press releases. Finally, our website, connectionsmagazine.com, remains hosted by an ISP in Montana, but I update the content remotely from Michigan.

I have never met any of these fine people in person. We conduct business via telephone and make frequent use of email. Each issue is produced without any face-to-face interaction. For our first issue, this was somewhat disarming and disconcerting, but I am convinced that the result is better than if we all worked together in the same office. True, we miss out on some synergy, incidental communication, and camaraderie, but we are also each free to do what he or she does best and to do so with minimal outside distraction and interruption. As Bill Murray said in the movie “Stripes,” “We’re a lean, mean, fighting machine!”

Several years ago, I theorized that a teleservices company call center could similarly be configured as a virtual company. Not that I advocated it at the time, but it was an intriguing mental exercise. Over the years I have run into more and more situations where aspects of a center were outsourced. Currently, I am aware of services who outsource their billing, accounts payable, and general ledger, who hire a computer support firm to maintain equipment, an ad agency to do marketing, and an independent sales agent (in the spirit of a “manufacturers” rep) to generate sales. Not that any single company outsources all of these functions, but many companies outsource some.

Conventional wisdom says that you don’t outsource your “core competencies.” However, there are those who advocate that you can indeed, farm out your core competencies as well. What if someone else can do it even better – or cheaper? What if your labor market has near zero percent unemployment or if you’re just plain tired of the HR aspect of the business? All of these are prime reasons to consider outsourcing your operations. In fact, I am aware of several companies which have done or are doing so. Outsourcing the operations aspect for a start-up can solve many problems and conserve cash flow while a base of clients is being amassed; then it is all moved in-house. Others have opted to form permanent outsourcing arrangements either out of necessity or preference. The end result is that there are no agents working in their office!

Teleservices companies have essentially six areas of focus and effort: operations, customer service, sales and marketing, technical, accounting, and management. I have yet to see one company do all six with aplomb and excellence, yet any viable concern excels in at least one area. Even the strong players master only two or three. In fact, some of the most profitable companies are, at best, average at five of the six, but because of a strong, visionary, and capable management, they consistently generate outstanding profits.

Since no one can master everything, it is pragmatic and even wise to consider outsourcing the weak areas of your company. Then you can focus on what you do best and your company will be better as a result. After that you can consider taking it to the next level and outsource the rest. Ultimately, you too, could become a virtual company; a company of one!

As you begin looking for outsourcing partners, you must be careful in your selection. A bad choice can be costly or even crippling, but it can also be quickly corrected by merely finding a new firm to handle that aspect of your business. (Those who have outsourced their operations did not put “all of their eggs in one basket,” but have divided the traffic between multiple centers. No more than 50% of your traffic should go to any one place; this gives you greater flexibility and minimizes risk.)

You should scrutinize an outsourcing partner just like you would any other vendor. “Look before you leap.” Referrals are valuable; check references. When outsourcing operations, unless they come highly recommended, visit them in person. What does their facility look like? Are they big enough to handle your traffic? Are they small enough to care about your account and your client’s calls? Do you have a good rapport with and respect for the key people in their company? Is there the potential for a long-term business relationship? Lastly, find out who will be your primary contact on a day-to-day basis. How well do you mesh with that individual? What is their anticipated future tenure with the company? Should this contact leave, will your satisfaction with the outsourcer’s service disappear as well, or will someone else be capable and able to take over without impacting your organization?

Certainly, no outsourcing agreement should be entered into lightly or without due diligence, but when it is properly executed and for the right reasons, the results can be both liberating and profitable.

This is not to advocate that everyone needs to look into outsourcing, but it does offer some intriguing opportunities and is certainly another option to consider as you look to the future and consider how to make your company better – and more profitable.

[From Connection MagazineJan/Feb 2002]

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry.

Categories
Call Center Articles

It’s a Team Effort

By Peter Lyle DeHaan, PhD

Author Peter Lyle DeHaan

This is my first issue as Publisher of Connections Magazine. It is an exciting time for me and represents a couple of significant milestones. For Connections, this is the 51st issue. Fifty issues have been successfully published by founder and former publisher Steve Michaels. Now the baton has been passed to me as I embark upon the next fifty. This also represents a personal achievement. It was 19 years ago that I became a published writer with my first free-lance article entitled “All About Pagers;” it was published in the January 1983 issue of Radio Electronics. When I saw my article in print, I was bitten by the “writers bug” and began envisioning one day running a magazine. Who says that dreams can’t come true?

This effort, however, is not a one man show; it’s a team effort. I would like to introduce you to that team. First there is Valerie Port. Valerie is our Media Rep; she handles all of the display, classified, and website banner advertising for Connections. Valerie can be reached at 866-668-6694 or Valerie@connectionsmagazine.com. Valerie has over 20 years of publishing experience.

Another integral player is Dave Margolis. Dave handles all of the magazine’s layout and design. He can also develop ads or update artwork for those who do not have the means to do so themselves. Dave has been a designer/art director for over 20 years, designing magazines for the last seven years.

Steve and Chris Michaels are continuing to assist as consultants for the next few issues, acting as my mentors while I more fully learn the publishing industry. Steve will also continue to write his popular column under the new title of “From the Founder.” Steve’s and Chris’ credentials go without saying; the past 50 issues serve as a testament to their expertise and knowledge.

Then there are our printer, mailing label, and Web hosting companies.

My role is as publisher and editor-in-chief. I work on obtaining articles, collecting press releases, and receiving your “letters to the editor.” I also write and edit articles; I look forward to receiving your submissions. Articles, press releases, and letters to the editor can all be sent to me at dehaan@connectionsmagazine.com.

This may seem to about cover every one, but not by a long shot. You, too, are part of the team; our readers are the reason Connections Magazine exists. We are here to serve the industry; this means serving you. Thank you for your ongoing support and continued readership of Connections.

Those who write and submit articles, press releases, and letters to the editor serve to make my job as editor easy and keep the content of Connections fresh and varied; They, also, are important members of the team and critical contributors to our efforts.

Lastly, and most importantly, are our advertisers. Their advertising dollars generates over 95% of our revenue, making this all possible. Please join me in thanking our advertisers for supporting Connections Magazine. Beyond that, take time to really look at their ads; study an ad from a vendor you are not familiar with. And be sure to say, “I saw your ad in Connections Magazine.”

This is my team and I am pleased to introduce them to you. I welcome them on board and salute their efforts.

Now that you know our team, I encourage you to consider your team, those who play an integral role in your operation. Think about your management group and your front line staff, as well as your vendors and your clients. They are all part of your team. So take a moment to recognize the players in your lineup, thanking them for the role they play in your organization’s success. They work hard and they deserve the recognition.

To all teams everywhere, I salute you!

[From Connection Magazine – November 2001]

Peter Lyle DeHaan, PhD, is the publisher and editor-in-chief of Connections Magazine, covering the call center teleservices industry.