Dictaphone Corporation Executive Interview

1. It appears that almost all your monitoring competitors have expanded their offerings in an attempt to differentiate themselves from one another. How does Dictaphone differentiate itself from its competitors?

 Our Workforce Relationship Management™ (WRM) approach significantly differentiates us from our competitors in two key ways. First, it employs a competency model that clearly defines the skills, knowledge and abilities that it takes for an agent to be successful in the job. Secondly, our solution is focused on improving workforce optimization at all stages of the agent lifecycle, not just through monitoring calls. Using our software, contact centers can then take those known competencies and systematically apply them to each phase of the agent’s tenure — beginning with recruitment. T he competency model becomes central to the hiring process, the assessment process, and training for both new hires and existing staff.

2. What product and/or services directions can we expect Dictaphone to take in the near future?

We see an emerging trend of contact centers looking for more fully-integrated and comprehensive solutions for workforce optimization and workforce management. You can expect to see Dictaphone expand our WRM suite to address these needs.

3. Please comment on Dictaphone’s financial performance in the past year? What are your financial expectations for 2005?

This past year (2004) was a solid year performance-wise for Dictaphone and marked our return foray back into the contact center market. In 2004, our ContactPoint™ software gained significant recognition and traction in the marketplace, evidenced by a number of awards, and a number of new customers, which is of course the ultimate endorsement. This year (2005) is already off to a great start, and we look forward to another banner year as we continue to add new features and functionality to ContactPoint.

4. Has the decision making process changed over recent years? Who are the influencers, who are the decision makers?

Yes, the decision making process has changed quite a bit in recent years. As contact centers move from cost centers to strategic, revenue generating entities, we see more senior, experienced, customer savvy executives involved in the purchasing decisions. Also, as integrated solutions that impact different facets and functions of the contact center (like recruiting, training, and quality assurance) emerge, the complexity and number of participants in the decision making process is growing.

For instance, where in the past, our sales contact might have been almost exclusively with members of the contact center management team, now we are finding that executives from a variety of disciples are involved – for example, representatives from Human Resources (who are responsible for recruiting), and those in charge of the training function as well. And of course, IT departments, the CIO and CTO, want to ensure the right technology decisions are made, so they are always important to the decision making process too.

5. Has senior management’s perception of the contact center changed in recent years? Has IT’s perception of the contact center changed?

Again, the perception of the contact center is shifting from a cost center to an organization of great strategic importance. Contact centers are the main point of contact between a company and its customers, the place where customer perceptions are cultivated, and where customer relationships are solidified or cut short. As contact centers become more strategically important, senior management will be more inclined to invest in process and technology to maximize the contact center’s resources (most notably, agents!).

6. What market sectors, i.e. public safety, do you anticipate will have the most significant growth for Dictaphone in the upcoming years?

The most significant growth and opportunity for Dictaphone will likely come from the contact center sector as the need and demand for workforce optimization solutions grows.

7. What are biggest challenges for Dictaphone in the upcoming year?

Implementing successful solutions in today’s complex contact center environments begins with understanding customer needs and understanding the intricacies of that specific customer’s environment. You then have to apply that knowledge along with technical expertise and proven project management skills to deliver the best customer solution. This is what professional services is all about. We have some of the best resources in the industry in this area. The challenge in the upcoming year will be to expand our professional services to keep up with the growth in demand for our workforce optimization solutions.

8. Some companies have set up their sales organizations by vertical market, i.e. contact centers,9-1-1, financial services. This type of structure enables a sales team to acquire expertise in specific areas enabling them to “speak the customer’s language.” How has Dictaphone addressed this issue?

Frankly, we have tried both approaches, and we have found invariably that a structure that is not vertically organized (our current structure) works better. Despite all of their notable differences, the key verticals in which Dictaphone generates most of its sales really have a lot in common. For instance, “quality” of service is critical for both commercial contact centers and emergency communication ( 9-1-1 ) centers, albeit important for different reasons. Also, most of the sales team within Dictaphone is extremely tenured, and they are cross-market trained, with many years of experience consulting with customers from a variety of markets.

9. Your ContactPoint Workforce Relationship Management approach appears to make a great deal of sense. What has been the market’s acceptance of this approach?

We are finding that the contact center analyst community, media and customers alike are embracing our unique approach to workforce optimization. Why? Because it just plain makes sense. Focusing on the staff in the contact center is, we believe, the best way to deliver high quality service. It’s also the best way to keep costs in check – such as the high costs associated with runaway turnover, inefficient training and ineffective recruiting. At the end of the day, it’s the interactions between agents and customers that make the difference. That’s why hiring the right agents, and empowering them with the right combination of training and rewards is critical to success.