"A strategy and framework for world class Customer Service education, training and development

1. "A strategy and framework for world class Customer Service education, training and development in a 21st century South African utility." Kevin von Berg : Corporate Specialist (Customer Service) Naseema Moorgas : Project Leader - Customer Services Training Distribution Division Eskom Holdings Ltd November 27, 2007

2. Themes • Broad brush overview of the new Customer Service architecture that Eskom has put in place, highlighting the changes in requirements from a People perspective 2) Focus on the Human Performance dimension, in particular the requirements for education, training and development in this new work environment 3) Overview of the strategy Eskom is following to attend to these needs 4) Discussion on Eskom SETA Accreditation

3. Customer Service Strategy & Architecture

4. Eskom’s Profile • Eskom was established in 1923 and is currently among the top 10 utilities in the world by generation capacity and the top 11 by sales. • We generate 95% of the electricity used in South Africa and 45% of the electricity used in Africa. • We have 32 674 employees and 3 963 164 customers. • We deliver a maximum capacity of 37 761 MW, through 359 854 km of power lines. • Network of Customer Service Support: • Around 400 people in our Virtual Contact Centre located across 7 sites providing national coverage • Our Contact Centres receive 3,2M calls per year and answer 82,1% of these within 30 seconds. • Services are offered in the customers' choice of 7 of the 11 official languages. • 97% of service requests are handled by agents, 3% by self service technology • We conduct 1,5M outbound interactions per year via SMS, email and telephone campaigns • 102 Walk in Centres • 100’s of Back Office locations throughout the country processing customer service requests • 10 000 plus outsourced payment points We have a large Customer Service Business within our (primarily) Energy Business

5. Efficient Customer Service is seen as: • Eskom is “Easy to do Business With”, at an Efficient Customer Contact Cost DX CUSTOMER SERVICE VALUE PROPOSITION Cost Customer Satisfaction Win-win Balance Migration From Face To Face To Electronic Channels Migration From Islanded To Virtual Contact Centres Migration From Agent Handled To Self Service CUSTOMER SERVICE STRATEGY CORE PRINCIPLE CUSTOMER SERVICE STRATEGY KEY ELEMENTS CRM with High levels of One Contact Resolution & First Contact Resolution Eskom CS Strategy – Condensed version! Standard Value Chains, Processes & Practices World class Technology dependant on good data Mix of world practices and fit‑for‑Africa solutions Good People Measurement and Monitoring BUSINESS CHARACTERISTICS We need people capable of performing in a world class Customer Service environment

6. World Practices & Technology Modified for SA We have not implemented a totally Euro / USA centric solution • South America very similar • Similarities with Australia / New Zealand • Africa has specific challenges We apply technology and practices to achieve: • A Service Focussed CRM • Individualisation of the masses • Multiple touch points • Wide geographic spread with rural element in Africa • Proactive Customer Communication Customer Service jobs have moved from lo-tech admin to hi- tech relationship management

7. VIRTUAL FRONT OFFICE VIRTUAL CC 7 x Contact Centre Front Office Inbound Telephone, SMS, Email, Fax, Mail Service Agents Contact Centre Campaign Mgt Outbound Telephone, SMS Service Agents Self Service Inbound IVR, CSOnLine Automated EAT Face to face, Telephone, Email, Fax, Mail Service Agents Walk in Centre Inbound Face to Face Service Agents Service Reps Inbound Face to Face Service Reps Customer Execs Inbound Face to Face Customer Execs Eskom’s customer service environment VIRTUAL BACK OFFICE Hundreds of locations 3 x Rev Management Centres Back Office Handling of routed Work Items GT-x Workflow Admin / Processing / Service Resolution Risk Management Back Office Handling of routed Work Items GT-x Workflow Admin / Processing / Service Resolution Wires Business Workflow Management / System Admin Contact Centre Back Office Handling of routed Work Items GT-x Workflow Admin / Processing CS Area Back Office Handling of routed Work Items GT-x Workflow Admin / Processing Internal Workflow Electricity Supply Problems Accounts, Payments & Meters Applications Credit Management 4 million Customer Contacts a year, 7 languages, 24x365 Customer Service people need to think and work in processes, as part of the bigger team

8. Contact Centre Telephone IVR SMS Internet e-Mail Mail Fax Develop & Market Products & Services Web Site Accounts Meters Payments Prepaid Cards Electricity Supply Problems Applications & Terminations Credit & Disconnection Acquire Customers Directly from the Value Chain eg Power Restored Processing Centre Manage Availability of Supply Telephone SMS Internet e-Mail Mail Fax Cust Exec Service Rep Agent Manage Revenue Cycle Via a Service Channel eg Query Resolved Network Asset Creation ATM Agent Other Processes eg Complaint Mgt Outage Credit Control New customer Radio Press CS Value Chains & Service Channels CUSTOMER NEED SERVICE MEDIUM SERVICE CHANNEL SERVICE CATEGORY VALUE CHAIN / PROCESS SERVICE DELIVERY CUSTOMER SATISFACTION Customer Service people need to adhere to process principles and practices

9. Case Management : Workflow 1. Customer has a request FIRST CONTACT RESOLUTION: Agent resolves the issue immediately Case Closed ONE CONTACT RESOLUTION: Back Office resolves the issue Case Closed OVERDUE & ESCALATION MANAGEMENT Resolved (with Escalation) (Aim is Zero never resolved) 2. Service Agent opens a Case 4. Exceptions (Overdue issues or Repeat contacts) 3. Case sent via Workflow to Field or Back Office Specialist System contains routing rules, tracks progress and escalates Customer Service people must interpret, communicate and use initiative – yet be compliant

10. Human Performance factors

11. FROM: Working in an Energy Delivery business Functional thinking One Stop Service (“I own the problem”) Face to Face interface Low - Medium Tech Narrow jobs Diverse local practices Business as usual TO: Working in a Customer Service business Process thinking One Contact Resolution (“I need to deliver quality in my process role” Remote interface High Tech Multiskilled jobs Standardised processes Load shedding (unusual volumes and pressures) What changes are the people experiencing?

12. What do we require from the people? • Selection • Training • Insight • Frontline staff insight into strategy & processes – 3 day Orientation Workshops led by senior managers (Vortex Challenge) • Accreditation • Coaching • Assessment / Evaluation • Attitude / Discipline / adherence to standards • Got the whole Customer Service organisation to use GT-X to resolve customer cases Management focus on the number of overdue and • escalated cases • Performance management • Customer Service Index is a significant % of our staff bonus incentive modifier

13. Strategy & Framework for Customer Service Education, Training and Development

14. As – Is situation in Customer Service ET&D • Lagging in a clear structured career path • Training curriculum well defined but maintenance and updating of course content is a challenge because of rapid change • Lagging in clear synchronisation oftraining interventions and utilisation of instructors • Challenge to align Eskom Process and System training to Unit Standards –lead to accredited qualifications for employees • Pipeline for the business growth and turn-over needs to be aligned to meet business needs

15. Proposed Approach • Identified qualification that will support career path • Qualification must be open to all levels • Current Employees (18.1 learners) • Bursar Pipeline (18.2 learners) • Must support Customer Service business needs • Qualification must be transportable between Contact Centres and other units in Customer Services • Qualification must be accessible by lower qualified people to develop • Must be registered with formal Contact Centre / CS Learnerships with a recognised Tertiary Institution/s

16. Principles • Focus on Immediate delivery – no time for a long period of analysis • No major rework of training material – current Training material is valid / relevant. Planned program to update and refine all training material over the next 12 months • Full time National management of the co-ordination task • National approval of approach, projects and development budgets • Regional management of implementation and line training budgets, Consolidated national reporting • Standard material to be used in all Regions • External contractors not to use external material unless approved nationally and incorporated in the standard material

17. Proposed Career Path for Customer Service NQF 8 D Tech CC Management M Tech CC Management 7 B Tech CC Management Further Studies Note: • National certificate issued not as a qualification but 1st year towards diploma 6 National Diploma CC Management 5 National Higher Certificate: CC Management 4 National Certificate: CC Operations employees - 18.1 learners Pipeline 18.2 learners 2 National Certificate: Contact Centre Support ABET employees - 18.1 learners

18. Scope: CS Training Project • Development and implementation of a standard national curriculum for CS which aligns with NQF. The existing set of CS courses / modules will form the basis of this curriculum. • Development and implementation of a process for pipelining trainees in CS • Development and implementation of a process for Competence Profiling existing staff in CS, coupled with process for ongoing CS training and assessment to close identified gaps • Setting up a commercial arrangement with the Tertiary Institutions to run and administer a country wide CS training curriculum for Eskom Dx, leading to formal SAQA qualifications for candidates • Development and implementation of the post of National CS Training Manager for Eskom Distribution • The review and finalisation of the draft CS Training Strategy document • Alignment with establishment of the Eskom University

19. SETA Perspective

20. SETA Accreditation • Eskom is registered with the Energy SETA • Customer Service Training material in Eskom to be developed within the scope of the Services SETA • MOA (Memorandum of Agreement) to be instituted with the Services SETA

21. Thank you!Enjoy the Rest of the Conference