C a s e S t u d y Enhancing Customer Service through Learning Technology John Hancock Implements an online learning solution which integrates training, performance support, and assessment Chris Howard January 2006 Bersin & Associates
Enhancing Customer Service through Learning Technology 2 Table of Contents Table of Contents... 2 In This Case Study... 3 About John Hancock... 4 The Challenge... 5 The Solution... 6 Pilot Program Demonstrated Success Quickly...6 Assessment System Streamlines New Hire Screening...7 Continuing Education Delivered Efficiently...7 Compliance Training now Automated...8 Technology... 9 From Learning to Performance Support... 10 Results...12 Program Benefits...13 Lessons Learned...15 Next Steps...17 About Us...18 About This Research...19
Enhancing Customer Service through Learning Technology 3 In This Case Study As demands for on-the-job learning and regulatory compliance increase, many organizations struggle to balance training needs with productivity and customer service. This was the dilemma faced by John Hancock s Retirement Plan Services division with respect to its approximately 300 client account representatives. The division s learning department, called the Performance Development team, launched an e-learning program in 2001. By 2005, a significant portion of instructor-led training has been converted to online self-study and self-testing. E-learning has greatly enhanced scheduling, training, testing and tracking, resulting in significant efficiencies and greater flexibility in training delivery. For some courses, training and testing time has been reduced by as much as two-thirds. This time can now be allocated to serving customers and revenue generation. Performance Development staff are freed up from many administrative tasks and classroom responsibilities, allowing them to focus on strategy, planning and other value-added work. Additionally, the enhanced e-learning system has expedited screening of job candidates and streamlined the audit process. This case study describes how John Hancock s Retirement Plan Services division used a technology-based e-learning solution to automate a portion of its training and testing, creating significant efficiencies in learning, testing and training administration.
Enhancing Customer Service through Learning Technology 4 About John Hancock John Hancock Financial Services offers insurance, investment products, investment management and other services. In April 2004, John Hancock was acquired by Manulife Financial, creating the fifth largest life insurance company in the world and the second largest in North America based on market capitalization. In 2004, Manulife had revenues of $23.2 billion and approximately 20,000 employees. Manulife is highly decentralized. Each business unit operates like a small company, with its own HR, finance, marketing, administration and other functions. John Hancock Retirement Plan Services, based in Toronto, administers 401(k) plans for small firms in the United States. Although a mid-sized division (1,100 employees), it is one of the most profitable in the company. Like the corporation as a whole, training at John Hancock is highly decentralized, with each Performance Development team focused solely on the needs of its own business unit. Performance Development directors meet periodically in a Trainers Forum to share best practices and technology. For example, the divisions leverage their combined buying power by sharing the cost of software licensing. The Performance Development team within Retirement Plan Services has 10 people who are responsible for attracting and retaining the best people for this business unit, supporting their professional development and providing the communications and knowledge management tools they need to perform their jobs. The group spends approximately 80 percent of its time on learningrelated activities. Performance Development staff wear a number of different hats: They are instructional designers (all course content is developed inhouse), and also serve as classroom facilitators, project managers and subject matter experts. These multiple roles allow them to build courses with a high degree of time- and cost-efficiency. While not part of human resources, the group supports HR by creating job descriptions and conducting new hire screening.
Enhancing Customer Service through Learning Technology 5 The Challenge In an environment of rapid change and increased regulatory scrutiny, financial services providers are experiencing unprecedented global competition, compliance requirements and mounting pressure to reduce costs across the enterprise. John Hancock is no exception. Client reps in the Retirement Plan Services group are highly skilled revenue-generating workers. Continuous learning and job satisfaction programs are critical to managing this workforce. Retirement Plan Services has a 600-person operations staff that focuses on customer service. This group includes approximately 300 client account representatives, each of whom is responsible for managing approximately 160 accounts. In a typical year, client account representatives are required to familiarize themselves with a voluminous amount of new products, policy and procedure changes and new legislation. But while training needs mushroom, this explosion of information creates greater demands for customer support. Consequently, client account representatives are experiencing ever greater demands on their time. Client account representatives are a highly skilled group whose incentives are tied to productivity and customer service. Top performers move up through the ranks, with the opportunity to work on accounts that have the greatest revenue-generating potential. Candidates for the job undergo a screening and interview process to determine aptitude for this type of work. New hires participate in an intensive, six-week training program. Because the division wants to retain its best employees, every effort is made to provide a stimulating, satisfying work environment that allows representatives to achieve their potential while helping them manage the new information needed to do their jobs well. Historically, training in Retirement Plan Services was largely instructor-led. A typical class took 90 minutes. The learning audience was usually approximately 300-400 people, with class size ranging from 20-50, depending on room availability. This meant that a single course would need to be held anywhere from 7-20 times. During a year, an employee in this division would spend dozens of hours in training. All tests were administered in hard copy, and all scheduling, grading and tracking were done manually. The Performance Development team recognized that certain aspects of the training process were inefficient, labor-intensive and disruptive to customer service. However, they also recognized an opportunity to create efficiencies in the operations area most strikingly among client account representatives. This group of approximately 300 people all doing the same job was considered an ideal model for leveraging the potential efficiencies of e-learning.
Enhancing Customer Service through Learning Technology 6 The Solution In 2001, the Performance Development team conducted a pilot study to evaluate the use of e-learning for continuing education among the approximately 300-person group of client account representatives. At the time, Performance Development believed that e-learning would create significant efficiencies in the learning process as well as huge administrative savings but were unsure of how the changes would be received among the target group, as well as the overall effectiveness of the learning process. Pilot Program Demonstrated Success Quickly In the pilot program, employees attended a training session to learn how to use the Blackboard Learning System and were assigned passwords to the new system. Course materials for a continuing education module were delivered to employees computers via Blackboard, with a two-hour window for completing the course and the test. The pilot involved very basic elements and instructions. Specifically, employees were asked to read a five-page Word document and then complete a five-question quiz to demonstrate proficiency in the new material. The test was returned via the Blackboard system to Performance Development, the scores were captured in Blackboard, downloaded to a spreadsheet and sent to employees managers. Following the pilot, focus groups were held and, overall, employee satisfaction with the new system was high. Based on the success of the pilot, the business case for online learning received management approval. Performance Development then began to explore other areas that they could apply e-learning, beginning with the most straightforward applications. Compliance training was brought online after continuing education, followed by project training and new hire screening. Overall, the conversion process was fairly straightforward. Once content was moved into the e- learning delivery channel, the facilitated course was discontinued. Today, e-learning is applied widely within Retirement Plan Services and accounts for an increasingly large percentage of overall training needs. The transition has allowed the Performance Development team to move from a push strategy to a pull strategy with respect to learning giving employees the tools to learn according to their own pace and their own schedule, and, in some cases, on a just-intime basis.
Enhancing Customer Service through Learning Technology 7 Assessment System Streamlines New Hire Screening The client account representative works in a highly regulated and technical environment, requiring good communication skills. Therefore, an assessment was created to assist with the screening of applicants. Applicants who achieve a passing score are invited for group assessments and, if successful there, interviews are held. In the past, applicants who matched the job profile would be invited to the Toronto facility in groups of 30. This required a member of the recruitment team to call all 30 candidates, shepherd them to and from the testing room, and administer, monitor and hand-score the assessment. The process was time-consuming, labor-intensive and inefficient not only for the recruitment staff but for the candidates as well. Today, candidates receive an e-mail with a link to the Blackboard system. At a time that is convenient for them, they have a halfhour window to complete the assessment online. Blackboard automatically captures the scores, and candidates who receive passing grades then move on to the group assessment and interview process. Continuing Education Delivered Efficiently John Hancock offers more than 100 different investment options through its group annuity contracts, which are refreshed periodically. Additionally, in any given year, there are typically 10-15 enhancements or changes rolled out, such as website improvements and regulatory changes. Adding to the complexity, certain states have their own unique rules impacting 401(k) plan service providers. And system enhancements routinely affect fund administration. For client account representatives, continuing education is a way of life. They need to be aware of new products, product updates, exceptions, changing government regulations and software updates. Finally, they have to be able to easily access specific information to respond to specific customer issues. At John Hancock, continuing education courses cover a wide range of topics, from website changes to fund launches to PeopleSoft enhancements. Before e-learning was introduced, each of the approximately 300 client account representatives was required to complete approximately 12 continuing education courses per year. The facilitated course and test usually took 60 to 90 minutes. Today, the same course content is loaded into Blackboard and delivered to employees desktops. They are given a 2-3 week window to read the course content and complete the proficiency
Enhancing Customer Service through Learning Technology 8 test. Final results are available to managers. Total learning and testing time averages less than 30 minutes. Compliance Training now Automated In an increasingly regulated industry environment, there is parallel need for increased compliance training and documentation. All client account representatives must demonstrate a knowledge of regulations that affect the financial services industry. In Retirement Plan Services, most of the approximately 600 employees are required to complete compliance training. Under the old system, compliance training was a facilitated classroom course, with all scheduling, testing, scoring and tracking performed manually. Each class was 1-1/2 hours long, and class size ran between 20-50 people. This meant that a given course was usually taught seven or eight times, but occasionally as many as 20 times, if large classrooms were unavailable. Compliance training for Retirement Plan Services currently includes three courses: privacy, anti-fraud/anti-money laundering legislation and complaints handling. Today, both the course material and the test are delivered to employees PCs, with a two-week window to complete self study and self testing. Employees schedule an online session at their convenience, which typically takes around 30 minutes. When the course closes, the grades are calculated, downloaded and sent to each employee s manager.
Enhancing Customer Service through Learning Technology 9 Technology After evaluating a number of different technology solutions, the Performance Development team selected the Blackboard Learning System a product traditionally targeted to universities. Given the division s relatively small size, modest budget and straightforward training needs, it was felt that the cost and overhead of other available products made them unsuitable for this organization. Retirement Plan Services was the first John Hancock division to acquire this technology. Today, the Blackboard license is shared among several business units across John Hancock and Manulife. Blackboard was selected because of its modest cost and ease of use. It is now widely used by several business units in John Hancock and Manulife. Retirement Plan Services uses Blackboard as a course management system that enables self-study and self-testing, automates scheduling and tracking, and captures test scores. In addition to being a self-study platform, Blackboard, can also be used to facilitate collaboration both online and in the classroom. At John Hancock, e-learning self study is sometimes used as a precursor to classroom discussions, for example, management trainees will receive case studies via Blackboard to read independently; then a facilitated class session will be held to discuss and analyze the course material. The Director of Performance Development reported that employee response to the Blackboard system has been very positive. The system makes it easier to manage the large volume of learning material that is delivered to this audience, and reduces the potential disruption to customer service that classroom training creates. Furthermore, Blackboard s ease of use, and the ability to apply currently available skills, materials, and teaching techniques, made the transition to e-learning a relatively fast and painless process. The Performance Development team has also leveraged Blackboard survey functionality for an ancillary use namely, as an internal survey tool. The team discovered that it could use Blackboard s multiple choice test feature to conduct surveys, for example, to solicit feedback on specific courses from the learning audience. Blackboard is a kind of virtual blank slate, allowing the learning team to upload content in a variety of different document formats. Course materials can be created using basic software programs, such as Microsoft Word and PowerPoint. For certain courses the learning team uses Macromedia s Breeze and Captivate software, which include sound and flash animation. All of these programs are deployed through Blackboard. In addition, Macromedia s RoboInfo (rebranded by Retirement Plan Services as InfoNet) is used as a knowledge management system a repository for data from training courses that works much like a search engine. This provides client account representatives with instant online access to a huge database that they can quickly and
Enhancing Customer Service through Learning Technology 10 easily search on an as-needed basis to assist customers. InfoNet is not integrated with Blackboard; however, online courses include links to the InfoNet database. Currently, InfoNet contains over 2,000 topics all developed using a standard format for ease of use and comprehension. From Learning to Performance Support The transition to these technologies has allowed the Performance Development team to move from a push strategy to a pull strategy with respect to learning, giving employees the tools to learn according to their own pace and their own schedule and, in many cases, on a just-in-time basis. Under this Performance Support model, the immediate task at hand dictates what tool will be used, and learning takes place with minimal disruption to one s job (Figure 1). In the graphic below, the different types of Performance Support are covered. Performance Support Training Knowledge Management Performance Support To instruct To inform To guide performance directly Requires an interruption to work Dictates how learner learns Goal is to transfer skills and knowledge to user Less Interruption Users determines how they learn Goal is to be a resource Least interruption Task at hand defines what the tool will do Goal is to assist performance (or do it completely) Figure 1: Performance Support For example, suppose there is an employee who is learning how to use word processing software, Microsoft Word. The first level of Performance Support, Training, would involve taking a course on how to use Word. This could be facilitated training or an e-learning course where the knowledge is pushed to the learner.
Enhancing Customer Service through Learning Technology 11 At the next level, Knowledge Management, the learner would have access to a support system that allows him to draw the knowledge to himself. The Help feature of Word would be an example of this type of learning, or, in the case of John Hancock, InfoNet. In the final stage, Performance Support, information is brought to the learner based on his performance. In the example of Word, an automatic spell check feature actually corrects misspelled words, thereby automatically supporting the learner. Building a customized Performance Support system is extremely resource-intensive, but an effective knowledge management system can be developed quickly and cost-effectively. In 2005, InfoNet was enhanced as a portal for information called For Your Information (FYI), in which projects with finalized policy and procedure information are displayed. This portal has made it possible to reduce the volume of broadcast emails containing policy & procedure changes, resulting in a 30 percent decrease over 2004. Since, May 2003, InfoNet usage has more than doubled (Figure 2). Month May 2003 Home Page Hits 213 per day % Increase from 2003 January 2004 302 per day 42% November 2005 453 per day 113% Figure 2: InfoNet Usage Growth
Enhancing Customer Service through Learning Technology 12 Results Since the e-learning solution was rolled out in 2001, it has become clear that the combination of tools Blackboard for course management, RoboInfo for knowledge management, and Breeze and Captivate for course development is ideally suited to a number of information-intensive areas that deal with process, compliance and technical material. Following the pilot evaluation, employees reported that learning and testing time decreased significantly requiring as little as to 1/3 the time required by a facilitated session. They said they vastly preferred the new process for its improved efficiency, providing more flexibility in scheduling learning, allowing them to learn at a faster pace, and enabling them to return to their jobs more quickly. The Performance Development team found that the new system eliminated many tedious adminstrative tasks, including scheduling and hand-scoring of tests, as well as the need to conduct the same class multiple times for different groups of employees. Employees have indicated that topics related to communications and people skills, as well as those that generate a significant amount of Q&A, are best learned when there is human interaction. Therefore, facilitated training still plays a key role for subjects such as customer service, sales, managerial skills and parts of new hire orientation. In some cases, a blended learning approach is used, in which Blackboard jump-starts the learning process. For example, reading materials are posted on-line for course preparation prior to a facilitated classroom session in management training. E-learning represented only a fraction of all training during 2001-2003 but began to gain traction in 2004 and continues to make signficant gains. Total e-learning hours increased more than 100 percent in 2005. There were 20 new projects launched in 2005, compared with 12 the previous year, and e-learning has helped the division manage these heightened learning requirements as the projects grow more complex (Figure 3).
Enhancing Customer Service through Learning Technology 13 2004 2005 % Increase New Projects 12 20 65% Hours of e- Learning per Existing Employee Total e-learning Hours (includes new employees) 18.5 27 45% 5,550 11,853 100% Figure 3: E-Learning Growth Program Benefits E-learning has delivered important benefits to individuals, departments and the organization as a whole. In general, client account representatives and Performance Development staff have responded positively to the new processes. The division s customers, as well as John Hancock, also stand to benefit. Ease of use and more time on the job: Client account representatives have found the system intuitive and easy-to-use, requiring little or no training to get up and running. E-learning empowers them to schedule learning and testing according to their own schedules, rather than the instructor s schedule. This allows the group to provide better support to their customers and to focus more of their time on servicing clients. Efficiency, speed, and consistency: The reason e-learning delivers big efficiencies is simple: People can read at a rate that is much faster than the ability of an instructor to speak. Additionally, because it is not dependent on the skills of the individual instructor, e-learning provides a much more consistent learning experience. Finally, e-learning allows people to progress at their own pace; and, for quick learners, this can be much faster than a facilitated class. Training staff freed up for more strategic work: With an increasing amount of the division s learning now done online, the role of the Performance Development staff has changed dramatically. In the past, this group divided most of its time between classroom facilitation and the large volume of clerical work that testing and training generated. Today, this group spends far less time in the classroom because of one of the key benefits of e- learning: its scalability. Once a course is developed, it can be given
Enhancing Customer Service through Learning Technology 14 over and over during the course of a year with little work on the part of the learning team. In subsquent years, most courses require a minimal amount of time and effort to review and update. Additionally, many tedious and time-consuming tasks are now automated, allowing learning staff to spend time on activities that add value to the organization instead of busy work. This not only benefits the company but it also enhances job satisfaction among Performance Development staff. Improved Customer Support: There is anecdotal evidence that the division s customers also benefit from the transition. The e- learning system gives client account representatives better tools to keep pace with the latest information that they can pass on to their customers. Furthermore, because the representatives spend less time in the classroom, they may be able to respond to customers questions and concerns more promptly. The Performance Development team believes that these benefits can have a larger effect within the John Hancock organization. Greater efficiencies in training mean that people are using their time on critical activities: serving customers, growing the customer base, generating revenues and driving growth. Employees whose jobs are enhanced by having the technology and tools to work smarter are also likely to have higher job satisfaction and lower turnover. Expedited and Simplified Compliance Training: E-learning for compliance training has delivered another benefit: The audit process is significantly expedited. With all compliance training filed electronically, the Performance Development team is able to provide the auditors with confirmation that employess have completed the required traiining.
Enhancing Customer Service through Learning Technology 15 Lessons Learned Feedback from employees indicated that they wanted to acquire new product and technical knowledge as efficiently as possible. They did not want this type of learning to be fun or entertaining just to be able to get through it as quickly and easily as possible and get on with their work. Software functionality such as discussion boards and multimedia are viewed as largely extraneous to this goal. However, while e-learning was preferred for information-intensive technical subjects, classroom training was preferred for certain areas primarily soft skills and any subject that benefited from face-to-face discussion and facilitator input, including some new hire training. (Figure 4). Figure 4: Sample Schedule New Hire Training
Enhancing Customer Service through Learning Technology 16 Converting to a new learning methodology inevitably generates change management issues. Even in situations such as this, where new software and tools are fairly intuitive and easy to use, there is a certain percentage of employees who resist change. Therefore, it is critical to start off slowly, spend time setting expectations and provide the necessary information and support well in advance of implementation. Doing so helps establish a comfort level with the new processes and deflects a good deal of employee resistance that inevitably accompanies change. A minor but common problem was that client account representatives often forgot the passwords they created to access the new system. This meant that either the Performance Development team would need to be engaged, or employees would re-register, creating duplicate users. The lesson: Conduct a facilitated session to familiarize employees with the basics of e- learning, including seemingly minor details. Finally, building effective training requires high levels of coordination and communication among the Performance Development team, other subject matter experts and members of the business. In today s fast-paced environment, launching a new online course typically offers a short time frame for acquiring content, developing a course blueprint, getting management approval, integrating and testing a new techology and so on. Part of the responsibility of the Performance Development team is to educate business management about the need to provide content in a timely manner and to clearly define the the scope of the project, allowing the learning team sufficient time for course development and deployment.
Enhancing Customer Service through Learning Technology 17 Next Steps The Performance Development team continues to explore innovations in learning technology that will help them move closer to the Performance Support model (see Figure 1, page 10). At present, the team is exploring ways of further streamlining the time and cost of training while enhancing the learning experience and reducing the learning curve. In the near term, the team is focused on technical upgrades, including a faster and more efficient server for the knowledge management database. They are also considering adding multimedia features such as graphics and animation into the current system.
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Enhancing Customer Service through Learning Technology 19 About This Research Copyright 2006 Bersin & Associates. All rights reserved. What Works and related names such as Rapid E-Learning: What Works are registered trademarks of Bersin & Associates. No materials from this study can be duplicated, copied, republished, or re-used without written permission from Bersin & Associates. The information and forecasts contained in this report reflect the research and studied opinions of Bersin & Associates analysts.