Social Security Administration: More Cost-Effective Approaches Exist to
Further Improve 800-Number Service (Chapter Report, 06/11/97,
GAO/HEHS-97-79).

Pursuant to a congressional request, GAO reviewed the Social Security
Administration's (SSA) 800 number service, focusing on: (1) how well
SSA's 800 number provides service to the public; and (2) what steps SSA
needs to take to ensure that improvements to the 800 number are cost
effective.

GAO noted that: (1) although SSA's 800 number has consistently provided
accurate and courteous service to the public, callers have had
difficulty getting through; (2) to address this problem, in early 1996
SSA increased the number of representatives answering calls and
implemented a new nationwide automated menu; (3) these efforts brought
SSA closer to its goal of having 85 percent of callers get through to
the 800 number within 5 minutes of their first attempt; (4) not all
callers who got through actually spoke to a representative, however, or
successfully used one of the automated service options; (5) moreover,
SSA came close to accomplishing its goal largely by diverting SSA staff
from work responsibilities unrelated to the 800 number; (6) SSA's plans
include further increasing the percentage of callers who get through to
the 800 number within 5 minutes and expanding the limited range of
transactions that callers may complete using the 800-number service; (7)
as 800-number and other workloads continue to grow, expanding services
while maintaining access levels will challenge SSA; (8) SSA's plans do
not sufficiently reflect lessons learned from the private and public
sectors on cost-effectively improving 800-number service; (9) for
example, SSA could save a significant amount of money by automating more
of its routine transactions and by finding ways to verify callers'
identities using automated features; (10) for those transactions deemed
complex enough to require personal assistance, private-sector leaders in
800-number service save money and enhance service by locating their call
agents at a few large centers; (11) in contrast, SSA maintains a large
number of teleservice centers and has not developed a specific plan and
timetable for reducing the number of these centers; (12) because SSA
continues to offer customer service through its field offices, it needs
to carefully consider how changes, such as expanding the range of
transactions that callers may conduct or complete using the 800 number,
fit into and affect SSA's overall service delivery strategy; (13) for
example, SSA needs to compare the cost of conducting additional
transactions using the 800 number with other service delivery methods to
identify the most cost-effective approach; (14) SSA also needs to
collect data for more fully assessing how quickly and completely the 800
number serves customers; and (15) by adopting the kind of 800-number in*

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-97-79
     TITLE:  Social Security Administration: More Cost-Effective 
             Approaches Exist to Further Improve 800-Number Service
      DATE:  06/11/97
   SUBJECT:  Customer service
             Telephone
             Human resources utilization
             Social security benefits
             Cost effectiveness analysis
             Centralization
             Cost control
             Government information dissemination
             Federal agency reorganization
IDENTIFIER:  National Performance Review
             SSA Personal Earnings and Benefits Estimate Statement
             Medicare Program
             Supplemental Security Income Program
             
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Cover
================================================================ COVER


Report to the Chairman, Subcommittee on Social Security, Committee on
Ways and Means, House of Representatives

June 1997

SOCIAL SECURITY ADMINISTRATION -
MORE COST-EFFECTIVE APPROACHES
EXIST TO FURTHER IMPROVE
800-NUMBER SERVICE

GAO/HEHS-97-79

800-Number Service

(105936)


Abbreviations
=============================================================== ABBREV

  GPRA - Government Performance and Results Act
  HHS - Department of Health and Human Services
  IRS - Internal Revenue Service
  NPR - National Performance Review
  OMB - Office of Management and Budget
  PEBES - Personal Earnings and Benefit Estimate Statement
  SSA - Social Security Administration
  SSI - Supplemental Security Income

Letter
=============================================================== LETTER


B-271867

June 11, 1997

The Honorable Jim Bunning
Chairman
Subcommittee on Social Security
Committee on Ways and Means
House of Representatives

Dear Mr.  Chairman: 

This report responds to your request that we identify (1) how well
SSA's 800 number provides service to the public and (2) what steps
SSA needs to take to ensure that improvements to the 800 number are
cost-effective. 

We will send copies of this report to the Commissioner of Social
Security and other interested parties.  We will also make copies
available to others upon request. 

Please contact Cynthia Fagnoni, Associate Director, at (202)
512-7202, if you have any questions.  Other GAO contacts and major
contributors to this report are listed in appendix IV. 

Sincerely yours,

Jane L.  Ross
Director, Income Security Issues


EXECUTIVE SUMMARY
============================================================ Chapter 0


   PURPOSE
---------------------------------------------------------- Chapter 0:1

The Social Security Administration (SSA) administers the nation's
largest federal program--Social Security--as well as the largest cash
welfare program, Supplemental Security Income.  In addition to
administering benefits, SSA records the wages of nearly every U.S. 
worker and issues new and replacement Social Security cards.  SSA's
programs touch the lives of nearly every individual in this country. 
Each day, thousands of people contact SSA to file claims for
disability or retirement benefits, ensure that their records are up
to date, obtain a Social Security card, or ask questions about SSA's
programs. 

A major goal of SSA, set forth in its strategic planning documents,
is to provide world-class service to the public.  To help reach this
goal, SSA is seeking to improve its toll-free 800-number service. 
Since the 800 number became available to callers nationwide in 1989,
SSA has struggled to keep pace with caller demand, which grew from 41
million calls in fiscal year 1989 to 121 million in fiscal year 1995. 
In addition, once callers reach SSA's 800 number, they may conduct
only simple transactions such as ordering Social Security card
application forms or making appointments to file benefit claims.  SSA
has initiatives under way to improve the 800-number service,
including improving callers' access and expanding the range of
transactions that callers may initiate or complete with one call to
the 800 number. 

The Chairman of the Subcommittee on Social Security, Committee on
Ways and Means, House of Representatives, asked GAO to review (1) how
well SSA's 800 number provides service to the public and (2) what
steps SSA needs to take to ensure that improvements to the 800 number
are cost-
effective. 


   BACKGROUND
---------------------------------------------------------- Chapter 0:2

To ease the burden on its 1,300 field offices, SSA established
teleservice centers--each with its own telephone number and
geographic responsibility--that by 1988 were serving 50 percent of
the population.  Concerned about staff reductions and field office
workloads, and in response to a GAO recommendation to improve the
quality of its telephone service, SSA established the nationwide 800
number using its existing network of teleservice centers.  As of
January 1997, SSA employed over 4,000 representatives at 40 answering
sites, which include 37 teleservice centers ranging in size from 13
to 573 employees. 

SSA thought callers to the 800 number would have basic questions
about SSA programs and would conduct simple business such as
reporting changes in benefit status.  SSA hoped that the 800 number
would replace its local field office telephone service, still leaving
more complex tasks, such as filing claims, to field offices.  After
start-up problems with the 800 number resulted in high busy-signal
rates, however, the Congress directed SSA to restore telephone access
to local field offices.  Today, when calling SSA, the public may call
either the 800 number or one of SSA's field offices. 

SSA is seeking to improve and expand its 800-number service while
facing growing workloads and shrinking resources.  As the baby boom
generation ages, more and more people will be applying for and
receiving benefits.  SSA's workloads will also grow because of
increased responsibilities, such as legislative requirements to
review the continuing eligibility of SSI beneficiaries resulting from
the Personal Responsibility and Work Opportunity Reconciliation Act
of 1996. 


   RESULTS IN BRIEF
---------------------------------------------------------- Chapter 0:3

Although SSA's 800 number has consistently provided accurate and
courteous service to the public, callers have had difficulty getting
through.  To address this problem, in early 1996 SSA increased the
number of representatives answering calls and implemented a new
nationwide automated menu.  These efforts brought SSA closer to its
goal of having 85 percent of callers get through to the 800 number
within 5 minutes of their first attempt.  Not all callers who got
through actually spoke to a representative, however, or successfully
used one of the automated service options.  Moreover, SSA came close
to accomplishing its goal largely by diverting SSA staff from work
responsibilities unrelated to the 800 number.  SSA's plans include
further increasing the percentage of callers who get through to the
800 number within 5 minutes and expanding the limited range of
transactions that callers may complete using the 800-number service. 
As 800-number and other workloads continue to grow, expanding
services while maintaining access levels will challenge SSA. 

SSA's plans do not sufficiently reflect lessons learned from the
private and public sectors on cost-effectively improving 800-number
service.  For example, SSA could save a significant amount of money
by automating more of its routine transactions and by finding ways to
verify callers' identities using automated features.  For those
transactions deemed complex enough to require personal assistance,
private-sector leaders in 800-number service save money and enhance
service by locating their call agents at a few large centers.  In
contrast, SSA maintains a large number of teleservice centers and has
not developed a specific plan and timetable for reducing the number
of these centers. 

Because SSA continues to offer customer service through its field
offices, it needs to carefully consider how changes, such as
expanding the range of transactions that callers may conduct or
complete using the 800 number, fit into and affect SSA's overall
service delivery strategy.  For example, SSA needs to compare the
cost of conducting additional transactions using the 800 number with
other service delivery methods to identify the most cost-
effective approach.  SSA also needs to collect data for more fully
assessing how quickly and completely the 800 number serves customers. 
By adopting the kind of 800-number initiatives used by some private-
and public-sector organizations, SSA could provide effective service
while controlling costs. 


   PRINCIPAL FINDINGS
---------------------------------------------------------- Chapter 0:4


      IMPROVING ACCESS AND SERVICE
      WILL CHALLENGE SSA
-------------------------------------------------------- Chapter 0:4.1

Ongoing, internal surveys and regular monitoring have consistently
indicated that SSA's 800-number staff provide courteous and accurate
service and that customer satisfaction is high.  Moreover, in an
independent study, SSA's 800-number service received the highest
overall score among nine organizations considered to be the best in
the business.  Meanwhile, SSA's 800 number has never been able to
keep up with caller demand.  Each year, the number of callers trying
to reach the 800 number has grown, while the percentage of callers
actually reaching a call agent or automated service has declined. 
Callers have had particular difficulty getting through during peak
calling periods. 

SSA's performance goal for fiscal year 1996 was to have 85 percent of
800-number callers reach the 800 number within 5 minutes of their
first try.  To help reach this goal, SSA installed a new nationwide
automated menu and bolstered its call agent workforce in early 1996. 
Despite a few technical problems, the percentage of callers who got
through within 5 minutes increased from 74 percent in fiscal year
1995 to 83 percent in fiscal year 1996--just short of SSA's
85-percent goal.  Getting through is not the same as being served,
however, and many callers who reached the 800 number hung up before
speaking to a representative or completing an automated transaction. 
Moreover, SSA increased access rates in large part by diverting 2,300
employees from other work areas, causing these employees' usual work
to accumulate. 

SSA subsequently raised its access goal for fiscal year 1997 to
having 95 percent of callers get through to the 800 number within 5
minutes.  In addition, SSA is planning to increase the number of
transactions that can be completed in one call, which will occupy
telephone lines and reduce customers' access.  With growing workloads
and limited resources, SSA will have difficulty improving access
while adding services.  To achieve its access goal for fiscal year
1997, SSA plans to divert even more employees from other duties to
answer 800-number calls--an action that could cause other workloads
to accumulate. 


      SSA MUST TAKE CERTAIN STEPS
      TO COST-EFFECTIVELY IMPROVE
      THE 800 NUMBER
-------------------------------------------------------- Chapter 0:4.2

SSA must take certain steps to cost-effectively improve its 800
number and can draw from the experiences of other public and private
800-number services to do so.  For example, consistent with
private-sector trends, SSA could better use its automated menu to
cost-effectively handle routine calls.  To identify transactions
suitable for automation, SSA needs to develop additional and more
detailed data on the reasons for and frequency of customer calls.  At
this time, the need to verify callers' identities--to protect
individuals' privacy and prevent program fraud and abuse--severely
limits progress in automating many transactions. 

To conduct transactions deemed too complex to automate, SSA could
follow the example of leading private-sector companies that have
reduced the operating and administrative costs of using live
assistance by locating their call agents in a few large call centers. 
SSA recognizes that its 800-
number service has too many teleservice centers but has not developed
concrete plans for reducing the number.  Instead, SSA plans to
continue connecting its smaller centers together electronically,
saving some money by more efficiently routing calls to available
representatives.  Fewer centers could provide further cost savings,
such as reduced rent and utilities and increased managerial control
and staffing flexibility. 

In making decisions about increasing callers' ability to conduct and
complete more business through the 800 number, SSA needs to assess
these decisions' overall effect on service delivery.  Some companies
primarily use their 800 number to deliver services; SSA, however,
continues to rely heavily on its field office structure.  Before
adding new services, such as claim filing, to the 800 number, SSA
should carefully assess the impact of this on its 800 number and
other service delivery workloads and its cost-effectiveness compared
with other approaches.  SSA does not now collect enough information
to compare the cost of providing services through its 800 number with
that of, for example, providing face-to-face or telephone service at
its field offices.  Nor does SSA collect enough data for measuring
the impact of adding new services to the 800 number on the promptness
and completeness of customer service. 


   RECOMMENDATIONS
---------------------------------------------------------- Chapter 0:5

To cost-effectively serve the public's growing demand for SSA's
800-number services, we recommend that SSA (1) expand automated
services, (2) reduce the number of call centers, (3) compare the cost
of expanding the 800-number service with that of other approaches,
and (4) establish additional performance measures to more fully
assess the impact of expanding the service on its ability to
effectively serve callers. 


   AGENCY COMMENTS
---------------------------------------------------------- Chapter 0:6

SSA generally agreed with the conclusions and recommendations in this
report, stating that the report would be useful to SSA as it further
refines its 800-number service.  SSA indicated, however, that
800-number callers may not be willing to use automated services to
the extent believed possible by GAO.  Because of the
cost-effectiveness and growing public acceptance of automated
services, GAO believes that SSA needs to continue to seek ways to
expand 800-number automated services.  SSA also noted that it has
progressed and will continue to progress toward consolidating its
call centers.  GAO continues to believe that to provide
cost-effective, live assistance like that found in the private
sector, SSA needs to develop a more comprehensive and far-reaching
plan for reducing the number of its teleservice centers.  SSA also
made some technical comments about this report, which were
incorporated as appropriate.  See chapter 4 for GAO's evaluation of
SSA's comments and appendix III for the full text of those comments. 


INTRODUCTION
============================================================ Chapter 1

SSA administers programs that touch the lives of nearly every
individual in this country.  SSA administers the nation's largest
federal program--Social Security--as well as the largest cash welfare
program, Supplemental Security Income (SSI).  Social Security\1

provides benefits to retired and disabled workers and their
dependents and survivors; SSI provides assistance to the needy, aged,
blind, and disabled.  SSA's expenditures totaled $386 billion in
fiscal year 1996, almost one-fourth of this nation's $1.6 trillion
federal budget.  In 1996, over 50 million beneficiaries--nearly one
out of every five individuals in this country--received benefits from
SSA each month, and the numbers have been steadily growing.  In
administering these programs, SSA records the wages of almost every
U.S.  worker and issues new and replacement Social Security cards. 

To better enable individuals to contact and conduct business with
SSA, the agency implemented a national, toll-free 800 telephone
number in 1989.\2 SSA provides this service through a nationwide
network of 40 answering sites, including 37 teleservice centers.\3
Callers may use the 800 number to conduct simple transactions, such
as requesting information about SSA programs.  Rather than use the
800 number, individuals may also call or visit one of SSA's 1,300
field offices. 

SSA's long-standing focus on customer service has been reinforced
recently by two governmentwide performance improvement
initiatives--the Government Performance and Results Act of 1993
(GPRA) and the administration's National Performance Review (NPR). 
To be consistent with these initiatives and help guide its
activities, SSA established a goal of providing world-class service
to the public as well as several performance measures to support this
goal.  In response to growing public demand and preference for using
the 800 number, SSA has been particularly focused on improving this
service. 


--------------------
\1 The Social Security program administered under title II of the
Social Security Act (42 U.S.C.  401 et seq.) has two parts--Old Age
and Survivors Insurance and Disability Insurance. 

\2 First established in 1988, SSA's 800-number service was initially
only available to 60 percent of the population.  SSA expanded the
service to all callers nationwide in 1989. 

\3 SSA has three additional answering sites that are not dedicated
teleservice centers but take 800-number calls on a part-time or
provisional basis. 


   SSA'S 800 NUMBER IS AN
   IMPORTANT SERVICE DELIVERY
   OPTION
---------------------------------------------------------- Chapter 1:1

SSA's responsibilities in managing the nation's largest retirement,
disability, and welfare programs require SSA staff to deal directly
with the American public.  Each day, thousands of people contact
SSA--to file claims for disability or retirement benefits, to ensure
that their records are up to date, to obtain a Social Security card,
or to ask questions about SSA's programs.  Currently, about one-half
of SSA's 67,118 employees are frontline workers who deal with the
public.  Traditionally, SSA staff have delivered face-to-face
services through a nationwide network of 1,300 field offices.  As the
public began conducting more business by telephone, SSA established
local teleservice centers in large metropolitan areas to handle
general inquiries.  By 1988, SSA was operating 34 teleservice centers
nationwide--each with its own telephone number for specific
geographic areas.  These teleservice centers served about 50 percent
of the population. 

When SSA established the 800 number to improve its customer service,
it used the existing teleservice centers and opened three additional
centers to accommodate the increased call volume.  In October 1989,
SSA had about 3,100 employees, known as teleservice representatives,
taking calls from the public on the 800 number.  The number of
teleservice representatives has since grown to about 4,000 located at
37 teleservice centers ranging in size from 13 to 573 employees as of
January 1997. 

SSA's 800-number service employees handle general inquiries and help
callers conduct simple transactions, such as reporting a change of
address.  Individuals wishing to file claims for disability or
retirement benefits--
which are more complex transactions--may make an appointment to do so
using the 800 number; currently, however, such individuals file their
claims either in person or by telephone with representatives at one
of SSA's field offices. 

SSA had originally intended for the 800 number to become its primary
point of telephone contact with the public.  Public demand for the
800 number quickly exceeded SSA's expectations, however--call volumes
were so high that busy-signal rates reached 50 percent for several
months.  To help reduce this volume of 800-number calls, SSA
temporarily reestablished direct telephone service for some field
offices.  Meanwhile, members of the Congress grew concerned that the
public would no longer have access to local field office telephone
service.  As a result, in November 1990, the Congress directed the
Secretary of the Department of Health and Human Services\4 (HHS) to
restore telephone access to local offices.  Today, individuals
wishing to contact SSA by telephone may call the 800 number or a
local SSA field office. 


--------------------
\4 At the time, SSA was part of HHS.  The Congress enacted
legislation making SSA independent of the Department as of Mar.  31,
1995. 


   WORLD-CLASS SERVICE GOAL
   REFLECTS SSA'S CUSTOMER FOCUS
---------------------------------------------------------- Chapter 1:2

SSA's 800-number telephone service reflects its long-standing focus
on customer service, and GPRA and NPR have reinforced this focus.  A
key purpose of GPRA, enacted by the Congress in 1993, is to improve
federal program effectiveness and public accountability by promoting
an emphasis on results, service quality, and customer satisfaction. 
To help accomplish this, the legislation requires federal agencies to
establish mission statements and goals, measure progress in
accomplishing these goals, and use the information obtained to adjust
operations as needed to accomplish these goals.  GPRA required that
the Office of Management and Budget (OMB) select agencies to pilot
test GPRA's performance planning and reporting requirements, and OMB
chose SSA as a GPRA pilot agency. 

The administration's NPR also stresses the need for agencies to treat
members of the public like customers and improve customer service
while reducing costs.  Begun in 1993 under the direction of Vice
President Gore, NPR has directed federal agencies to build a customer
focus into their operations to eliminate unnecessary bureaucracy,
streamline processes, and more cost-effectively serve the public. 
Also in 1993, President Clinton issued Executive Order 12862,
"Setting Customer Service Standards," which set a goal for the
federal government to deliver service equal to the best in business. 
The order directs federal agencies to survey their customers,
determine the kind of service they want and whether they are getting
it, and set and publish customer service standards. 

Many of GPRA's and NPR's concepts are not new to SSA.  Since 1984,
for example, SSA has routinely surveyed customers who recently
contacted SSA to ask about their experience and satisfaction with
service provided.  More recently, SSA has been using focus groups to
understand its customers' and employees' views.  Moreover, SSA's
strategic planning efforts predate GPRA requirements.  SSA published
an agencywide strategic plan in 1991 that established a goal of
providing timely, accurate, and courteous service to the public.  The
plan also established service delivery goals and objectives for many
aspects of SSA's operations such as access to its 800-number service
and waiting times at field offices. 

Bolstered by increased congressional and administration attention to
improving customer service, SSA has recently strengthened its focus
on customer service.  SSA has, for example, established a set of
customer service standards and formulated a pledge describing what
service customers may expect when they contact SSA; field offices
throughout the country display this pledge.  (See app.  I for SSA's
current customer service pledge.) In addition, SSA has revised its
agencywide customer service goals to focus on providing world-class
service to the American public. 


   CUSTOMER FOCUS LEADS TO
   800-NUMBER IMPROVEMENT EFFORTS
---------------------------------------------------------- Chapter 1:3

SSA's efforts to meet customers' demand and expectations for
800-number service have led the agency to pay increased attention to
improving this service.  Caller demand for the 800 number has grown
steadily, with the number of calls growing from over 41 million in
fiscal year 1989 to over 121 million in fiscal year 1995.  Moreover,
SSA's customer surveys have revealed that customers increasingly
prefer to conduct their business with SSA by telephone and customers
who previously contacted SSA by telephone said that they would rather
call SSA's 800 number than one of SSA's field offices.  SSA's surveys
have also indicated that customers would like better access to the
800 number and to use the 800 number to conduct more complex
transactions such as filing claims. 

Reflecting customer demand and preference for 800-number service, in
1994 SSA established a goal of having callers get through to the 800
number--that is, not get a busy signal--within 5 minutes of their
first try.  This goal represented a considerable shift in emphasis
toward improving callers' access since 1991, when SSA's goal was
having 800-number callers get through within 24 hours of their first
try.  SSA also plans to address customer expectations for improved
800-number service by expanding the range of transactions, such as
filing claims, that callers may initiate or complete using the 800
number.  Some of SSA's current initiatives, such as its plan to
improve callers' ability to complete transactions with one call, have
been guided by private-sector practices.  For example, SSA
participated, along with several other government agencies, in an
NPR-sponsored benchmarking study that identified the best telephone
service practices of eight private-sector companies considered
leaders in customer service. 

SSA is seeking to improve its 800-number service while it faces
increased workloads and responsibilities due to demographic trends
and legislative changes.  Increased responsibilities will, in turn,
place demands on SSA's service delivery structure, including the
800-number service.  For example, as the baby boom generation ages,
the number of applicants for and recipients of retirement benefits
will increase, placing demands on the 800 number and other service
delivery methods.  SSA estimates that, by the year 2015, 50.4 million
individuals will be receiving benefits--one-third more than the 37.4
million receiving Social Security retirement and survivors benefits
in 1995.  In addition, because of recent congressional efforts to
overhaul the nation's welfare system, SSA will have to manage the
large influx of appeals and reapplications expected to result from
changes in benefit eligibility.\5 Finally, call volume will probably
increase when SSA begins to send 123 million records of earnings and
estimates of future benefits known as the Personal Earnings and
Benefit Estimate Statement to individuals aged 25 and older, which
the agency must begin doing by fiscal year 2000.\6 In the current
fiscal environment, SSA is striving to manage its growing workloads
and responsibilities with fewer resources. 


--------------------
\5 In 1996, the Congress enacted legislation that eliminates
disability benefits for drug addicts and alcoholics, restricts
noncitizens' SSI benefit eligibility, and tightens the SSA
eligibility criteria for disabled children. 

\6 These six-page statements supply workers with information about
their yearly earnings on record at SSA; information about their
eligibility for Social Security retirement, survivor, and disability
benefits; and estimates of these benefits.  See SSA Benefit
Statements:  Well Received by the Public but Difficult to Comprehend
(GAO/HEHS-97-19, Dec.  5, 1996). 


   OBJECTIVES, SCOPE, AND
   METHODOLOGY
---------------------------------------------------------- Chapter 1:4

The Chairman of the Subcommittee on Social Security, Committee on
Ways and Means, House of Representatives, asked us to review SSA's
efforts to improve its 800-number service.  More specifically, in
this report, we address (1) how well SSA's 800 number provides
service to the public and (2) what steps SSA needs to take to ensure
that improvements to the 800 number are cost-effective.  To develop
information about SSA's 800-
number performance and initiatives, we reviewed SSA studies,
performance data, and planning documents and interviewed responsible
officials at SSA headquarters.  To better understand the impact on
workloads and operations of recent and future improvements to the
800-number service, we interviewed representatives at selected
teleservice centers in Baltimore, Maryland, and in Richmond and
Salinas, California, and at SSA's Western Program Service Center in
Richmond, California.  We also spoke with representatives of SSA's
employee groups, including the American Federation of Government
Employees, the National Council of Social Security Management
Associations, and a representative of the Federal Managers'
Association. 

We also examined 800-number trends and best practices in
private-sector companies and the Internal Revenue Service (IRS) to
determine what lessons SSA can draw from their experiences.  We
reviewed extensive literature on 800-number trends and best practices
and interviewed private industry representatives and
telecommunication experts and consultants.  We also interviewed IRS
officials to discuss their 800-number operations and efforts to
automate 800-number transactions. 

Our audit work was conducted from April 1996 through May 1997 in
accordance with generally accepted government auditing standards. 


SSA TAKES STEPS TO MOVE TOWARD
5-MINUTE ACCESS GOAL
============================================================ Chapter 2

Through fiscal year 1995, SSA has had mixed results in providing
world-
class 800-number service.  On the one hand, studies have found that
SSA's 800-number teleservice representatives provide accurate and
courteous service to callers.  On the other hand, 800-number callers
have often reached a busy signal instead of a teleservice
representative or an automated message service.  To improve customer
access to its 800-
number service, in early 1996 SSA greatly increased the number of
employees trained to answer 800-number calls and installed a
nationwide automated menu service that allowed callers to conduct
transactions without speaking to an SSA representative.  These
initiatives moved SSA closer to its 5-minute access goal of having 85
percent of callers get through to the 800 number within 5 minutes of
their first try.  However, some callers SSA counted as getting
through to the 800 number within 5 minutes actually hung up or waited
for some time to speak to a representative.  Moreover, SSA's strategy
for improving access resulted in some setbacks and costs.  For
example, a proportion of the additional employees SSA trained to
answer 800-number calls had been diverted from other duties, causing
these employees' usual work--maintaining beneficiary records--to
accumulate. 

SSA's future plans for the 800 number include maintaining high levels
of accuracy and customer satisfaction, while further improving access
to the 800-number service.  Consistent with rising customer
expectations, SSA also plans to expand the number of transactions
that customers may conduct using the 800 number.  For example, SSA
would like to conduct pilot tests to determine if callers want to
file claims using the 800 number, rather than just make appointments
to file claims with a field office.  With workloads growing, reaching
these goals will challenge SSA, especially since expanding services
will make improving access more difficult for SSA.  To help reach its
goals, SSA plans to divert additional resources to the 800 number--a
strategy that with limited resources may prove neither sufficient nor
sustainable for managing future 800-number improvements without
jeopardizing other critical customer demands. 


   800-NUMBER SERVICE HAS
   HISTORICALLY BEEN COURTEOUS AND
   ACCURATE BUT BUSY-SIGNAL RATES
   WERE HIGH
---------------------------------------------------------- Chapter 2:1

Various ongoing surveys conducted by SSA and others have consistently
shown that SSA's 800-number teleservice representatives provide
accurate and courteous service to callers.  Between April 1993 and
September 1995, internal monitoring of 800-number calls revealed that
teleservice representatives followed proper procedures for more than
81 percent of calls; for those calls involving cash payments,
teleservice representatives made no errors for more than 93 percent
of calls.  In addition, SSA surveys of 800-number callers repeatedly
found that over 88 percent of callers had been satisfied with the way
their calls were handled, and 97 percent believed they had been
treated courteously.  Even an independent and unsolicited study found
that compared with world-class service organizations, SSA's 800
number provides courteous service from knowledgeable representatives. 
In April 1995, DALBAR, Inc., compared SSA's 800-number service with
those of eight private companies (including Federal Express, AT&T
Universal Card, and Nordstrom) in several qualitative and
quantitative areas.\7 Although SSA did not perform well in the
quantitative areas (number of rings and time on hold), it rated high
in the qualitative areas (such as representatives' attitude and
knowledge), giving SSA the highest overall score of all participating
organizations. 

Although some areas of SSA's 800-number service got high marks, both
the DALBAR study and SSA recognized that many callers reached busy
signals instead of a teleservice representative or an automated
service.  Busy-
signal rates--which reflect the percentage of incoming calls that do
not get through to the 800 number--have been historically high,
climbing from under 33 percent in fiscal year 1990 to almost 50
percent in fiscal year 1995.  SSA's customers have had particular
difficulty getting through to the 800 number during peak calling
periods.  These periods are generally during the first 3 months of
the year (when SSA typically sends beneficiaries cost-of-living and
tax-related documents), the first business day of the month (when
many beneficiaries are scheduled to receive their checks from SSA),
and the first workday of the week (typical for most businesses).  SSA
is making some procedural changes to help reduce the large volume of
calls it gets at the beginning of each month.\8 In addition, SSA has
increasingly diverted employees from other duties, specifically,
maintaining beneficiary records, to help answer phones during peak
calling periods.  This was done, in part, to help counter the high
attrition rate among SSA's teleservice representatives.\9 Despite
these efforts, busy-signal rates continued to grow. 


--------------------
\7 World-Class Benchmarks:  An Evaluation of Non-Financial Service
Providers, DALBAR, Inc., (Boston:  1995).  DALBAR, Inc., is a
financial services, research, and publishing firm that conducts phone
and mail surveys to research customer service. 

\8 SSA recently published regulations allowing the agency to send
checks to new beneficiaries during the second, third, and fourth
weeks of the month rather than the first week of the month.  SSA
expects to begin sending benefit checks on a staggered basis in June
1997. 

\9 SSA has reported losing an average of one teleservice
representative per day to attrition. 


   SSA TAKES STEPS TO IMPROVE
   ACCESS
---------------------------------------------------------- Chapter 2:2

Persistently troubled by high busy-signal rates, SSA took decisive
steps in early 1996 toward reaching its goal of having 85 percent of
callers get through to the 800 number in 5 minutes.  These steps
included doubling the 800-number workforce, mainly by diverting a
large number of employees from other duties to help teleservice
representatives on an as-needed basis and establishing a nationwide
automated menu allowing customers to conduct certain transactions
without speaking to a representative.  Access rates subsequently
improved, largely due to increasing the number of employees answering
800-number calls.  SSA's initiatives also experienced setbacks and
costs, however, such as paying the diverted employees overtime to
manage their usual workload. 


      SSA DOUBLES TRAINED
      800-NUMBER WORKFORCE
-------------------------------------------------------- Chapter 2:2.1

To help reach its 5-minute access goal, SSA nearly doubled its
800-number workforce.  By January 1997, SSA had a total of about
7,400 employees trained and available to handle 800-number calls. 
SSA managed this increase in staff largely by training and diverting
employees, referred to as "Spikes," from other SSA offices to help
answer 800-number calls during peak calling periods.  SSA had already
been diverting higher graded employees from its program service
centers as Spikes.\10 Responsible for handling complex changes to
beneficiary records that can affect SSA payments to beneficiaries,
these employees required little additional training to handle
800-number calls.  SSA tripled the number of available, trained
Spikes--from just over 1,200 in fiscal year 1995 to 3,700 in early
1996--which included lower graded personnel from program service
centers. 


--------------------
\10 SSA has six program service centers that as of Sept.  1996
employed 6,807 technical and clerical employees and are primarily
responsible for maintaining the records of Social Security benefits
recipients.  The work of the program service centers includes
initiating payment of benefits, establishing the master benefit
record, handling changes that affect benefit eligibility or amount,
and reconsidering initial decisions on benefit eligibility that
claimants have appealed. 


      SSA IMPLEMENTS A NEW
      AUTOMATED MENU SERVICE
-------------------------------------------------------- Chapter 2:2.2

In addition to enlarging its 800-number workforce, SSA hoped to
improve access by installing a new, nationwide automated menu. 
Before establishing this menu, SSA offered an automated message
service to about 60 percent of 800-number callers.  Callers could
request application forms for a Social Security card or a Personal
Earnings and Benefit Estimate Statement (PEBES), order a statement
verifying benefit payments received from Social Security, or listen
to recorded information on Social Security programs.  In early 1996,
SSA implemented a new automated menu service that gave all 800-number
callers (with Touch-Tone telephones) access to three of the
previously automated transactions plus two additional
ones--information on the closest field office location and a Medicare
option allowing callers to obtain local numbers to call with
questions about their Medicare equipment coverage, hospital expenses,
and doctor services.  SSA enhanced its automated service in August
1996 to allow rotary dial callers to choose transactions from the
automated menu.  In December 1996, SSA added another transaction
under the Medicare option allowing callers to order a replacement
Medicare card.  SSA did not offer the recorded information on Social
Security programs provided previously because callers had been using
it infrequently. 

The new automated menu also allowed 800-number callers to select one
of several specific topics about which they wished to speak to an SSA
representative.  These callers would then be transferred or "gated"
to an appropriate SSA employee; for example, callers with questions
on their PEBES would be gated to an SSA unit trained to handle those
questions.  The automated menu service available to callers in
January 1997, including the new Medicare replacement card option, is
shown in figure 2.1. 

   Figure 2.1:  800-Number
   Automated Menu

   (See figure in printed
   edition.)



   (See figure in printed
   edition.)

Note:  If the caller selects a default option or selects no option,
the caller is automatically routed to an SSA nonspecialist
representative. 


      SSA MOVED CLOSER TO 5-MINUTE
      GOAL BUT ALSO HAD SETBACKS
-------------------------------------------------------- Chapter 2:2.3

SSA's initiatives, particularly the use of additional Spikes,
resulted in more callers getting through to the 800 number within 5
minutes of their first try.  The percentage of callers getting
through within 5 minutes rose to 83 percent in fiscal year 1996 from
74 percent in fiscal year 1995.  Although both the additional staff
and new automated menu probably helped more callers get through, the
additional staff had the more profound impact.  The highest rates of
callers getting through coincided with the period during which SSA
diverted the largest number of Spikes to answer telephones. 

In assessing its progress in meeting this goal, SSA is measuring
access to the system, not access to service.  Specifically, SSA is
measuring the percentage of callers connected to the 800-number
service within 5 minutes of their first try but stops the clock when
callers are connected to either an automated service or a teleservice
representative or placed on hold.  Therefore, SSA's performance
measure does not capture the percentage of callers who actually speak
to a representative or complete their business using an automated
service.  For fiscal year 1996, although SSA counted 83 percent of
callers as getting through to the 800 number within 5 minutes, a
smaller percentage actually spoke to a representative or completed an
automated transaction:  the rest hung up before speaking to a
representative or completing their automated transaction.\11 Nor does
SSA include in the 5-minute goal the amount of time that callers
spend on hold waiting to speak to a representative.  In fiscal year
1996, the average amount of time per month that callers waited to
speak to a representative ranged from almost 2 minutes to just over 4
minutes. 

The diversion of a large number of employees to answer 800-number
calls created problems in other areas.  As SSA expected, the usual
work of the program service centers accumulated while Spikes were
handling 800-
number calls.  According to SSA officials, program service centers
had ended previous fiscal years with about 2 weeks of work in
progress or "pending" work.  For fiscal year 1996, SSA officials said
the program service centers finished the year with 3.5 weeks of
pending work, despite program service center employees working
840,000 hours of overtime to manage their telephone duties while
keeping the pending workload down.  The pending workload was somewhat
less than SSA originally expected but still a significant amount. 
Some program service representatives told us that delays in
processing these workloads can affect SSA payments to beneficiaries
and have caused additional inquiries to the 800 number by affected
customers; however, SSA does not track and therefore does not know
the extent to which callers call the 800 number because of delays in
processing transactions. 

In addition, SSA's efforts to gate callers with specific questions to
special units or employees did not work as well as planned.  For
example, SSA planned to gate all calls about the PEBES to a special
SSA unit with expertise in handling those calls.  The special unit
was quickly overwhelmed with too many calls, however, including calls
unrelated to the PEBES, which the unit was not trained to handle. 
Because the special unit lacked equipment to transfer callers back to
the main 800 number, when these staff received questions beyond their
expertise, they directed callers to the main 800 number again, which
diminished service for those callers.  To resolve these issues, SSA
took several steps, including limiting the number of calls gated to
the special unit; increasing the number of staff for that unit; and
training the unit to handle a few additional, simpler types of
inquiries.  SSA is also considering purchasing equipment and
technology necessary for transferring callers to different SSA
numbers. 

Finally, some initial, technological setbacks hindered SSA's efforts
to improve access.  Most dramatically, the automated menu service
lacked sufficient capacity for SSA's tremendous call volume and was
overloaded on its first day of implementation, resulting in only
about 25 percent of callers getting through to the 800 number on that
day.  The next day, SSA switched to another, temporary system capable
of handling SSA's high call volume; however, its automated features
could not be used by Spanish-
speaking callers or callers with rotary dial telephones.  SSA began
providing automated service to rotary dial callers in August 1996. 
Later in 1997, SSA plans to phase in a Spanish version of the
automated menu as well as change the type of telephone switching
centers\12 that support its 800-
number service. 

In addition, SSA had problems with the technology that allows callers
to record their requests for information.  This technology
sporadically malfunctioned during attempts to transcribe the recorded
information, which resulted in, among other things, callers
occasionally receiving multiple PEBES applications.  In addition, the
technology did not provide an accurate count of the number of callers
using this technology--data that SSA needs to evaluate the use and
effectiveness of this feature.  SSA subsequently fixed the
transcription problem but, as of February 1997, was still trying to
resolve problems with obtaining an accurate count of callers using
this technology. 


--------------------
\11 In fiscal year 1996, 21 percent of all callers who got through to
the 800 number--including callers who got through within 5
minutes--hung up before speaking to a representative or completing
their automated transaction.  SSA does not track the percentage of
callers who got through within 5 minutes and who hung up before being
served. 

\12 SSA's 800 number currently uses telephone switching centers or
computers that serve only Federal Telephone System 2000 customers. 
SSA plans to move the 800-number service to switching centers that
serve other customers and offer more technological features. 


   IMPROVING 800-NUMBER SERVICE
   WITH LIMITED RESOURCES WILL
   CHALLENGE SSA
---------------------------------------------------------- Chapter 2:3

SSA has established more ambitious goals and added performance
measures for both its 800-number service and overall customer service
for fiscal year 1997.  For example, SSA raised its access goal for
the 800 number to having 95 percent of callers get through within 5
minutes from its previous goal of 85 percent, although this goal
continues to reflect access to the 800-number system and not to
service.  SSA knows that this measure is incomplete and is
considering revising its 800-number goals and measures as part of a
broader effort to reassess its customer service standards.  For
fiscal year 1997, SSA has already added a new goal for accuracy of
800-number service as well as two new goals for overall customer
service performance.  Table 2.1 shows SSA's performance measures and
goals for fiscal year 1997 for the 800 number and for customer
service in general. 



                               Table 2.1
                
                SSA's Performance Measures and Goals for
                            Fiscal Year 1997

                                                                  Goal
                                                                (perce
Measure                                                            nt)
--------------------------------------------------------------  ------
Overall service
----------------------------------------------------------------------
Percent of people who rate SSA service as courteous or very         90
 courteous
Percent of people who rate SSA service as good or very good         82

800-number service
----------------------------------------------------------------------
Percent of callers who reach 800 number within 5 minutes            95
Percent of calls handled accurately                               97.2
----------------------------------------------------------------------
In addition to establishing goals for access and accuracy, SSA plans
to increase the number of transactions that customers may conduct and
complete with one call to the 800 number.  As discussed in chapter 1,
SSA has learned that its customers want to transact more business
using the 800 number and do so with one call.  SSA's future plans
include exploring technology and system changes that will enable
callers to conduct complex transactions, such as filing benefit
claims, and to complete transactions with one call to the 800 number. 

SSA officials recognize that improving access while expanding
services will be challenging.  Improving access alone will be
difficult because the volume of 800-number calls is expected to grow
as a result of several demographic, legislative, and program changes. 
Expanding the number of transactions conducted and completed over the
800 number, combined with increasing call volume, will make it even
more difficult for SSA to reach its ambitious access goals. 
Increasing the number or length of transactions conducted over the
800 number will occupy 800-number lines, further exacerbating
busy-signal rates.  SSA officials concede that even with its current
policy of conducting only simple business transactions over the 800
number, the agency has had difficulty keeping pace with customer
demand. 

To help reach its access goals, SSA plans to add 1,000 additional,
lower graded Spikes to the trained 800-number workforce to help out
during peak calling periods.  Moreover, SSA has already taken steps
to counter its historically high attrition rate of one teleservice
representative per day by hiring additional teleservice
representatives at the beginning of fiscal year 1997 to replace those
expected to leave by the end of the fiscal year.  SSA also began
installing a network of personal computers in April 1997 that will
have expert system software intended to provide guidance to
teleservice representatives.\13 SSA expects that this software will
improve the consistency and accuracy--and possibly the
cost-effectiveness--of 800-number service. 

These steps, however, might not help SSA meet its immediate and
long-term goals.  SSA's 95-percent access rate will be hard to reach
because training the new Spikes and installing the new computer
equipment only began in April 1997 but will not be completed until
December 1997.  Moreover, shutting down teleservice centers for at
least a week while computers are being installed and teleservice
representatives are being trained to use them might degrade service. 
Finally, although SSA has increased the size of the trained
800-number workforce by 1,000 Spikes, the agency plans to increase
the amount of help that Spikes provide during fiscal year 1997 by
only 170 work-years over that of fiscal year 1996.  On the other
hand, diverting more employees might result in a further accumulation
of their usual work, considerable amounts of overtime paid to do
this, or both.  As SSA seeks to handle growing agencywide workloads
and responsibilities with fewer resources, its strategy of paying
these employees overtime does not appear to be a sustainable,
long-term solution for improving 800-number service. 


--------------------
\13 SSA's Automation Investment Fund of $1.1 billion supports its
5-year plan, from fiscal years 1994 to 1998, of moving from reliance
on mainframe computers toward a nationwide network of personal
computers. 


STEPS NEEDED TO COST-EFFECTIVELY
IMPROVE SSA'S 800 NUMBER
============================================================ Chapter 3

SSA faces many challenges in trying to meet rising customer demand
and expectations for its 800-number service.  The experiences of the
private sector and IRS in meeting similar challenges could help SSA
cost-effectively improve its 800 number.  While SSA knows about many
of these cost-
effective practices, it needs to take deliberate steps to
successfully implement them.  For example, more and more private
companies have made greater use of automated services to both satisfy
growing customer demand and expectations as well as reduce the cost
of their 800-number operations.  To move in this direction, SSA would
first need to systematically identify transactions suitable for
automation, then develop and test an expanded menu of automated
transactions.  For those transactions considered too complex to
automate, leading private-sector companies reduce the operating and
administrative costs of providing live assistance by locating their
call agents in a few large centers.  Likewise, SSA could reduce the
cost of providing live assistance by consolidating its network of 37
teleservice centers. 

In contrast to some businesses that rely primarily on their 800
numbers to provide customer service, SSA continues to provide service
through an extensive field office network as well as over the 800
number.  Therefore, before adding to the number of transactions
available over the 800 number, SSA needs to determine whether the 800
number is the most cost-effective way to deliver those services. 
Currently, however, SSA does not systematically collect the cost and
performance data necessary to make such a determination.  (See app. 
II for additional information on private-sector trends and best
practices in 800-number service.)


   STEPS NEEDED TO EXPAND
   AUTOMATED SERVICES
---------------------------------------------------------- Chapter 3:1

Following private-sector practices, SSA could save money and improve
access by expanding the use of the automated menu to provide routine
services; however, SSA has not taken concrete steps to do this. 
Until SSA develops automated methods for verifying callers'
identities, it cannot automate transactions involving sensitive
information.  SSA set up a work group to study this issue, but the
group has no results to date.  In contrast, IRS--a public agency also
concerned with protecting the privacy and integrity of the business
it conducts with the public--has successfully implemented automated
security measures, such as customer service numbers, to establish
callers' identities for several sensitive transactions. 


      SSA DOES NOT HAVE CONCRETE
      PLANS TO INCREASE AUTOMATED
      TRANSACTIONS
-------------------------------------------------------- Chapter 3:1.1

As in the private sector, SSA could save money while improving access
by increasing the number of services provided through the automated
menu.  Private-sector companies have dramatically reduced per call
costs by relying on automated response systems to reduce the number
of simple and routine calls handled by call agents.  Companies have
used these systems in the past to handle routine transactions that do
not require an explanation but are increasingly using them to handle
a wider and more complex range of transactions such as the making of
bill or loan payments by customers.  As of February 1997, SSA has
limited the automated menu to five of SSA's simpler, most frequent
transactions.\14 SSA's Office of Inspector General recommended in
1995, before SSA established the nationwide automated menu, that the
proposed menu be expanded to include, for example, 11 of SSA's
simpler, more repetitive transactions to reduce the number of
staff-years needed to handle 800-number calls.  Table 3.1 shows these
11 transactions, including the percentage of 800-number calls they
represent and whether they are currently automated. 



                         Table 3.1
          
               Transaction Types Suitable for
                         Automation

                                  Percent of
                                 calls (8/92  Currently
800-number services               to 7/93)\a  automated
------------------------------  ------------  ------------
Requests for new or                     12.9  Request for
 replacement Social Security                   application
 cards
Benefit verification                     5.1  Yes
Personal Earnings and Benefit            3.8  Request for
 Statement                                     application
Field office location                    4.1  Yes
Nonreceipt of check                      3.8  No
Status of claim                          5.0  No
Change of address                        6.4  No
Scheduling of appointment to             2.4  No
 file retirement claim
Other forms/literature                   1.0  No\b
Inquiries about direct deposit           6.4  No
Application for Medicare card            1.6  Yes\c
==========================================================
Total                                   52.5
----------------------------------------------------------
\a According to Inspector General representatives involved in this
audit, the data on percent of calls were collected as part of a
special study conducted by SSA's Office of Program Integrity Review. 

\b Automated options for requesting pamphlets or listening to
informational messages are only available to callers after hours. 

\c The automated menu also allows callers to get information on
Medicare coverage of medical equipment or supplies, inpatient
hospital expenses, or doctors' services. 

Sources:  Improving Service on Social Security Administration's 800
Telephone Number Network, SSA, Office of Inspector General, Dec. 
1995 and SSA's Office of Telephone Services. 

As of February 1997, SSA did not have concrete plans to expand its
current selection of automated transactions.  According to SSA
officials, SSA is postponing development of such plans until it has
completely phased in an automated menu that can be used by
Spanish-speaking callers. 

In addition, SSA officials are concerned that providing too many
automated transaction options and submenus might confuse customers
and increase the length (and thus cost) of each call.  SSA's current
automated menu offers seven initial options (including a live
assistance and repeat option).  Some of these options lead to other
submenus with additional, more specific options.  Experience in the
private sector has shown, however, that, if carefully scripted and
tested, automated systems of two to three submenus with up to four
transaction choices each can produce high customer use and
satisfaction. 

To systematically identify the most cost-effective transactions for
automation, SSA needs ready access to detailed data on the frequency
of specific types of calls.  Using these data, SSA could determine
which transaction types, if automated, would most likely decrease
time spent by SSA representatives, for example, providing routine
information.  SSA does not now track reasons for each incoming call
because it would require teleservice representatives to remember and
accurately record the information.  Instead, SSA relies on data
acquired from (1) routine call monitoring conducted for quality
assurance purposes and (2) surveys of recent 800-number callers.  Due
to the small sample size of calls monitored for quality assurance
purposes, however, "reason-for-call" categories are combined to get
representational data.  Although combined categories might create
more representational information for quality assurance purposes,
they become less useful for identifying specific call types that
could be transactions suitable for automation.\15 Data acquired from
surveys of 800-number callers are based on callers' recollection of
their reason for calling and therefore are not very reliable. 


--------------------
\14 During evenings and holidays, when SSA representatives are not
working, SSA offers callers two additional automated transactions--to
request pamphlets or listen to informational messages. 

\15 To illustrate this, all calls concerning claims are combined into
one category.  For purposes of automation, SSA might be interested
in, for example, the number of callers who want to schedule an
appointment to file a claim. 


      SSA MUST RESOLVE HOW TO
      VERIFY CALLERS' IDENTITIES
      USING AUTOMATED TRANSACTIONS
-------------------------------------------------------- Chapter 3:1.2

Some types of routine SSA transactions might be suitable for
automation but, due to their sensitivity, cannot be automated until
SSA develops methods for verifying callers' identities without using
teleservice representatives.  To reduce the risk of program fraud or
inappropriate access to personal records, SSA service representatives
handle many routine but sensitive transactions either in person or by
telephone to verify customers' identities.  For example, a
beneficiary may change the address on record only after establishing
his or her identity with an SSA representative by correctly answering
a series of questions that only that individual could answer (such as
place of birth or mother's maiden name). 

SSA is in the early stages of examining how to verify callers'
identities using the automated features of an 800-number service. 
SSA created the Electronic Service Delivery project to identify
cross-component, cross-program approaches for providing convenient,
cost-effective, secure, and user-friendly service options to
customers.  Under this effort, SSA work groups are studying the
problem of protecting individual privacy and program integrity for
sensitive transactions conducted using electronic media.  While the
work groups are largely focusing on the problem of providing customer
service over the Internet, one work group is developing the first set
of agency standards for determining the level of security required
for different types and methods of transactions, including telephone
transactions.  As of February 1997, this work group had not yet
completed a broad set of standards for authentication. 


      IRS' 800-NUMBER SERVICE
      OFFERS SECURE AUTOMATED
      TRANSACTIONS
-------------------------------------------------------- Chapter 3:1.3

IRS provides a useful example of a public agency's conducting
sensitive transactions that require verifying callers' identities
without the help of agency representatives.  IRS operates an
800-number service that had historically experienced even higher
busy-signal rates than SSA's.  To improve access, IRS has increased
the use of automated services to allow telephone agents to take more
complex calls.  As with SSA, many of the transactions that IRS
conducts with the public require security measures to prevent fraud
or improper disclosure of information. 

As of January 1997, IRS had successfully automated several of its
800-
number transactions that require verification of callers' identities. 
For example, taxpayers may learn the status of their refund or the
amount of payment due without speaking to an IRS representative.  To
learn about the status of a refund, callers first establish their
identity by keying in their Social Security number, filing status,
and refund amount using their Touch-Tone telephone.  Using more
stringent security measures, certain taxpayers may also file an
income tax return over the 800 number.  IRS provides taxpayers who
have a history of filing the simplified tax form (1040EZ) a customer
service number in the tax documents mailed to them.  These
preidentified taxpayers may now file their 1040EZ forms using IRS'
automated 800-number service by first keying in their personal
identification number along with their Social Security number and
date of birth. 


   SSA NEEDS A COST-EFFECTIVE
   STRATEGY FOR PROVIDING LIVE
   ASSISTANCE
---------------------------------------------------------- Chapter 3:2

SSA also needs to pursue cost-effective approaches for delivering
those services that it determines are too complex to automate and
therefore require the SSA representatives' help.  SSA is moving in
this direction, for example, by providing its teleservice
representatives with new personal computers and software to improve
the consistency and accuracy of service and linking call centers
electronically to improve call routing.  Although these new
workstations might improve the consistency and accuracy of service,
SSA's plan to electronically link centers falls short of
private-sector trends to save money and improve service by reducing
the number of call centers. 

Consistent with private-sector practices, SSA has plans for improving
the way its teleservice representatives provide customer service. 
Private-
sector leaders recognize the importance of providing call agents with
state-of-the-art technology and tools to provide fast and effective
service.  For example, expert systems that provide immediate access
to technical guidance are common tools for many 800-number agents. 
In addition, companies are successfully reducing service time by
linking telecommunication and computer technology to access customer
records even before the call agent takes a call.  As noted earlier,
SSA plans to install new personal computers with expert system
software at each teleservice center, which it expects will improve
the consistency and accuracy of service provided by teleservice
representatives and Spikes. 

SSA also has plans to expand previous efforts to link more
teleservice centers together electronically.  SSA recognizes that 37
teleservice centers are too many and that consolidating them would
reduce costs.  SSA is reluctant to reduce the number of centers,
however, because of the impact that closures will have on employees
and surrounding communities.  SSA's plan to electronically link
centers achieves some of the benefits of consolidation, such as
increased operational efficiency and telephone access, without
closing centers.  While closing offices would be difficult, locating
its teleservice representatives in fewer call centers would most
likely result in even lower operating and administrative costs for
SSA and improve the quality of the 800-number service. 
Private-sector best practices have demonstrated that reducing the
number of call centers provides many benefits, including lower rent
and utilities, lower operating and equipment costs, increased
managerial control and flexibility in staffing, centralized training
and support, and increased consistency in processes and services. 
Similarly, the benchmarking effort sponsored by the National
Performance Review found that 800-number services operate most
efficiently with few centers with as many as 600 employees each.  As
far back as 1990, HHS' Office of Inspector General\16 recommended
that SSA consolidate the 800-number network into fewer call centers
to lower operating and equipment costs, as well as to increase
flexibility in using telephone agents, the public's telephone access,
and opportunities to use new technology.  SSA continues to study this
issue but does not have concrete plans to significantly reduce or
consolidate its current teleservice centers. 


--------------------
\16 Before SSA became an independent agency, HHS' Office of Inspector
General had responsibility for internal audits of SSA.  After gaining
independence from HHS, SSA established its own Office of Inspector
General. 


   EXPANDING SERVICES REQUIRES
   CAREFULLY ASSESSING COSTS AND
   BENEFITS
---------------------------------------------------------- Chapter 3:3

Consistent with private-sector practices, SSA is responding to
customers' demands to conduct a greater range of transactions by
phone and to complete their business with one call.  Unlike some
private-sector leaders in 800-number service, however, SSA provides
services through an extensive field office network in addition to its
800 number.  SSA recognizes that before increasing the range of
transactions provided by its 800-
number service, it should first assess such changes' effect on other
service delivery methods and whether they are the most cost-effective
approach for providing service.  For example, SSA would like to allow
callers to file claims for benefits using the 800-number service
without having made an appointment.  Individuals must now file claims
by calling or visiting one of SSA's field offices, typically by
appointment.  Because filing a claim requires 30 or more minutes to
complete, adding this service to the 800 number might negatively
affect access to the 800 number without providing a commensurate
reduction in field offices' workload and thus not contribute to the
overall cost-effectiveness of service delivery. 

Knowing whether filing claims or conducting other complex
transactions over the 800 number is cost-effective compared with
other methods would help SSA justify 800-number improvements to
internal and external stakeholders, including employee groups and the
Congress.  At this time, however, SSA does not know how the cost of
conducting transactions over the 800 number compares with the cost of
conducting transactions using other service delivery methods such as
field office telephones.  Due to differences in local phone systems,
SSA does not know how many calls field offices receive.  In addition,
SSA does not track the resources devoted to answering field office
telephones.  In general, the cost of 800-number workloads is
basically easier to evaluate than that of field office workloads
because the 800 number is supported by a centralized telephone
network that routinely and automatically tracks all calls. 

As SSA expands the range of transactions available through the 800
number, the agency also needs to develop better performance measures
of how well or completely callers are being served.  As discussed in
chapter 2, SSA is currently measuring access to the system, not to
service, in assessing progress toward its access goal.  This is
inconsistent with common private-sector practices, which typically
establish performance goals based on access to service.  SSA already
collects data on the average amount of time callers spend waiting on
hold to speak to a representative.  SSA also collects data on the
length of time each caller speaks with a teleservice representative
and the number of callers who hang up either while waiting to speak
to a teleservice representative or before completing an automated
transaction.  With this data, SSA could establish performance goals
and measures on the extent to which callers actually completed their
automated transaction or were assisted by a teleservice
representative, the amount of time spent on hold, and the total
length of calls. 

Although SSA can establish additional performance goals based on data
that it already collects, it does not collect other data that would
allow it to more fully measure access to service.  For example, SSA
does not track the reason for each call and therefore cannot
establish a performance measure for whether callers successfully
complete specific types of transactions and the length of time
required to do so.  In addition, according to research and consulting
organizations specializing in customer service, customers consider
time spent waiting on hold to be less important than what they
experience once the phone is answered.  A wait of 1 minute is usually
acceptable, for example, if customers then reach someone who can
handle their call to completion on first contact.\17 SSA does not now
track information on the extent to which it transfers callers to
other units, however, or refers them to another office to complete
the callers' business.  SSA is currently reassessing its customer
service performance goals and measures.  As it does so, SSA will need
additional information on the extent to which callers can
successfully complete various types of transactions and the length of
time or number of steps required to do so. 


--------------------
\17 Jay Marwaha and Jeff Tommerdahl, "Outsourcing Your Customer
Service," Telemarketing, Vol.  14, No.  2 (1995), p.  84. 


CONCLUSIONS, RECOMMENDATIONS, AND
AGENCY COMMENTS AND OUR EVALUATION
============================================================ Chapter 4


   CONCLUSIONS
---------------------------------------------------------- Chapter 4:1

Since its inception in 1989, SSA's nationwide 800 number has received
increasing numbers of calls, reflecting growing customer preference
for using this service.  Meanwhile, SSA has had trouble keeping up
with caller demand as indicated by persistently high busy-signal
rates.  Recent initiatives, including adding more people to handle
800-number calls and installing a nationwide automated menu, have
increased the percentage of callers getting through to the 800 number
within 5 minutes of their initial try.  SSA accomplished this,
however, mainly by diverting SSA employees from other work areas,
causing these employees' usual work--maintaining beneficiary
records--to accumulate. 

SSA's 800 number will remain an important service delivery method,
for which demand is expected to grow.  SSA will need to determine how
to most cost-effectively meet this growing demand in the current
fiscal environment.  In addition to improving access, SSA's future
plans include expanding the number of transactions callers may
conduct and complete using the 800 number.  With limited resources,
however, SSA will have difficulty reaching its competing goals: 
expanding the range of and increasing access to 800-number services. 

SSA knows that private-sector companies are expanding 800-number
services and increasingly relying on technology to cost-effectively
meet customer demand and has adopted some of these approaches to meet
its growing demand.  We support these efforts, but SSA needs to take
the additional steps that IRS and the private sector have used to
cost-
effectively meet their customers' expectations.  For example, to
improve cost-effectiveness, SSA should develop concrete plans to
automate more transactions, systematically reviewing data to identify
those best suited for automation.  As it seeks to increase the number
of automated transactions, SSA will also need to ensure that it
protects against fraud and improper disclosure of private
information. 

To provide cost-effective service when live assistance is necessary,
private-sector companies tend to locate their call agents in a few
large centers and provide them with the technology and tools to
quickly and efficiently serve their customers.  SSA has taken some
steps to provide its call agents with additional tools but should
have a more comprehensive strategy for providing cost-effective live
assistance.  For example, SSA needs to develop a concrete plan for
locating its teleservice representatives into fewer, larger call
centers.  Office closures involve sensitive human resource issues and
may have a negative impact on local communities.  For these reasons,
SSA will need to work with employee groups, and with the Congress, to
successfully implement any consolidations. 

Before expanding the 800-number service to include additional
transactions, such as filing of claims, SSA should determine the
impact of such an expansion on overall service delivery, including
its cost-
effectiveness.  To do this, SSA will need additional cost data on
alternative service delivery methods.  In addition, SSA needs
additional information on the 800 number's performance, including the
extent to which customers may complete their business with SSA in one
call and the length of time or number of steps required for SSA to
completely serve a customer.  With this data, SSA would have a more
complete picture of how effectively it is serving callers. 


   RECOMMENDATIONS
---------------------------------------------------------- Chapter 4:2

To serve the public's growing demand for SSA's 800-number services
with limited resources, SSA needs to take additional steps toward
improving the 800 number in a cost-effective manner.  These steps
should include

  developing a plan for expanding automated services that both
     systematically identifies additional transactions for automation
     and, for sensitive transactions, protects against fraud and
     inappropriate disclosure of private information and ensures
     program integrity and customer privacy;

  developing and implementing a plan for reducing the number of call
     centers to save money and enhance service provided by SSA
     representatives;

  comparing the cost-effectiveness of expanding the 800-number
     service with that of other service delivery methods, such as
     face-to-face service; and

  establishing additional performance measures to more fully assess
     the consequences of expanding 800-number services, including
     measures for the promptness and completeness of 800-number
     customer service. 


   AGENCY COMMENTS AND OUR
   EVALUATION
---------------------------------------------------------- Chapter 4:3

SSA officials generally agreed with the conclusions and
recommendations in this report and stated that the report would be
useful to SSA as it further refines its 800-number service.  In
response to our recommendation that automated services be expanded,
SSA commented that recent internal surveys suggest that callers may
not readily accept automated services to conduct their business. 
Because of the cost-effectiveness of this approach, however, SSA
needs to continue to seek ways, we believe, to expand 800-number
automated services.  Furthermore, public acceptance of automated
services has been growing as indicated by private-sector trends.  In
response to our recommendation that SSA develop and implement a plan
for reducing the number of call centers, SSA said that it continues
to explore all potential efficiencies and take appropriate action,
including the consolidation and collocation of teleservice centers. 
While SSA has consolidated or collocated some teleservice centers, it
has also continued to add call answering sites to its teleservice
center network.  SSA needs a more comprehensive and far-reaching
plan, we believe, for providing cost-effective live assistance that,
consistent with private-sector practices, includes organizing its
teleservice representatives into a smaller network of large call
centers.  Trends in the private sector amply demonstrate that fewer,
large centers yield operational and cost efficiencies. 

Finally, SSA stated that it has taken steps consistent with our
recommendations that it compare the cost-effectiveness of 800-number
service with other service delivery methods and that it establish
additional performance measures.  In establishing more complete
performance measures, SSA should ensure that such measures involve
the entire 800-number service and that information collected is not
limited to pilot projects.  SSA also provided technical comments,
which we have incorporated in this report as appropriate.  The full
text of SSA's comments appears in appendix III. 


SSA CUSTOMER SERVICE PLEDGE
=========================================================== Appendix I

We will administer our program effectively and efficiently to protect
and maintain the Social Security trust fund and to ensure public
confidence in the value of Social Security.  We are committed to fair
and equitable service to our customers.  We promise to respect your
privacy and safeguard the information in your Social Security record. 

We are equally committed to providing you with world-class public
service.  When you conduct business with us, you can expect: 

  We will provide service through knowledgeable employees who will
     treat you with courtesy, dignity, and respect every time you do
     business with us. 

  We will provide you with our best estimate of the time needed to
     complete your request and fully explain any delays. 

  We will clearly explain our decisions so you can understand why and
     how we made them and what to do if you disagree. 

  We will make sure our offices are safe, pleasant, and our services
     are accessible. 

  When you make an appointment, we will serve you within 10 minutes
     of the scheduled time. 

  If you request a new or replacement Social Security card from one
     of our offices, we will mail it to you within 5 working days of
     receiving all the information we need.  If you have an urgent
     need for the Social Security number, we will tell you the number
     within 1 working day. 

  When you call our 800 number, you will get through to it within 5
     minutes of your first try. 

We know that you expect world-class service in all of your dealings
with us.  In 1994, when we set these standards, we were unable to
meet your expectations in some areas, but we have worked to change
that.  We are revising all our critical work processes to make them
simpler, quicker, and more customer-friendly.  When we redesign our
processes, you can expect: 

  When you first apply for disability benefits, you will get a
     decision within 60 days. 


PRIVATE-SECTOR TRENDS AND BEST
PRACTICES IN 800-NUMBER SERVICE
========================================================== Appendix II

The private sector is facing many of the same customer demands and
challenges faced by SSA.  Customers are continually demanding more
convenient ways to conduct business.  Recognizing these demands,
private companies are increasingly relying on 800-number telephone
service to conduct business with their customers because 800 numbers
are convenient and free to the customer.  In addition, once
private-sector companies establish 800-number service, customer
preferences have had an important influence on what and how services
are delivered. 

More and more companies are using automated menus, known as automated
response systems, to cost-effectively handle the increasing volume of
incoming calls while meeting customer preferences for a wide range of
800-number services.  Telecommunications experts we contacted
unanimously viewed this technology as more cost-effective than using
live assistance.  Automated response systems have been used mainly
when callers have a frequently asked question or wish to complete a
routine transaction that does not require live assistance.  Companies
are increasingly seeking ways to automate more complex transactions,
however, that require customers to interact with the system to a
greater degree than, for example, simply obtaining information. 

Although the private sector continues to emphasize finding 800-number
services that can be automated, live assistance remains a necessary
part of service for handling unusual or complex transactions or for
customers with some special need or question.  To lessen the cost of
live assistance and enhance service, private-sector companies provide
their call agents with state-of-the-art telephones, computers, and
software applications and tend to organize them in a few large
centers.  Although opinions vary on the ideal number and size of call
centers, a few sites with large numbers of call agents has become the
norm for high-performance call centers. 


   CUSTOMERS WANT COMPREHENSIVE,
   COMPLETE, AND FAST SERVICE
-------------------------------------------------------- Appendix II:1

To meet consumer expectations for fast and convenient service, some
companies have been moving toward telephone-based service and away
from other service delivery approaches such as face-to-face service
or mail.  For example, banks have been setting up telephone-based
services to meet the competitive challenge from nonbank financial
competitors, such as mutual fund companies, which are leaders in
providing telephone-based service.  Given this trend, the percentage
of retail transactions conducted over the telephone in the banking
sector is expected to increase by 88 percent by the year 2000;
in-person transactions are expected to decrease by 38 percent during
the same time period. 

Other industries are also increasing telephone-based service.  For
example, one large insurance company has expanded its 800-number
service so that about 90 percent of its business is currently
conducted over its 800 number.  Before expanding its 800 number, this
company conducted about 30 percent of its business by telephone, with
the remaining 70 percent conducted primarily by mail.  According to a
company representative, customers are now very satisfied with the
more convenient and faster service. 

In the private sector, once an 800 number is established, customer
preferences have a major impact on how and what services are
delivered.  Customers soon expect to be able to conduct an
increasingly larger number of transactions by telephone and to
complete transactions or have questions answered with their first
call and in a minimal amount of time.  According to
telecommunications experts, customers are continually seeking a
greater range of services to be conducted by telephone, often basing
their expectations on the positive experiences they may have had with
another company. 

To guarantee quick and responsive service, private-sector firms often
establish expected performance levels for providing access to
customer service--not just to their system.  One expert told us that
firms, by analyzing incoming calls, have a precise idea of how long
customers will wait on hold before hanging up.  On the basis of this
knowledge and the service responsiveness of their competitors,
companies arrive at their planned level of responsiveness.  For
example, one company has established performance measures and goals
for the percentage of calls answered without the caller spending time
on hold (84 percent or higher) and the percentage of callers
abandoning their calls (no more than 2 to 3 percent). 

Companies also recognize that customers expect to complete
transactions with one call.  According to one expert, firms need
improvement if they completely serve callers on initial contact in 80
percent or less of cases.  A research and consulting organization
specializing in customer service has found that customers will
tolerate being transferred during their first call only if they then
actually reach someone who can address their concerns.  Multiple
transfers caused 10 to 25 percent of customer dissatisfaction,
according to this organization's findings. 

Directly related to consumers' expectations that transactions be
completed with one call are that cycle time (the time it takes to
complete a customer's transaction or business) be kept to a minimum. 
Having immediate access to a service representative is not the same
as getting a prompt answer to a question.  The time customers spend
waiting on hold is not as important as what they experience after the
phone is answered, according to research findings.  A wait of 1
minute is usually acceptable if customers then reach someone who can
handle their call to completion on first contact.  To help their
frontline workers assist customers quickly and effectively, industry
leaders use computer information systems that allow workers to
quickly retrieve online information and procedures manuals. 


   AUTOMATION IS CRUCIAL TO
   REDUCING COSTS AND IMPROVING
   SERVICE
-------------------------------------------------------- Appendix II:2

Companies are increasingly using technology, such as automated
response systems, to help them meet consumer preferences and handle
growing volumes of incoming calls.  Reflecting the increased demand
for this technology, the market for automated response products and
services is expected to more than double from $1.1 billion in 1994 to
$2.3 billion in 2000.  By installing an automated response system,
most companies seek to both improve customer service and reduce the
number of routine calls handled by service representatives. 

According to one expert, installing an automated response system can
improve service responsiveness.  By answering callers' questions from
preprogrammed menu options, an automated system can curb routine,
tedious transactions that detract from employee productivity, such as
customer requests for bank account balances.  This allows employees
to respond to more complex and nonroutine calls more effectively and
provides callers with round-the-clock availability and faster
transaction processing.  To illustrate this, before a state medical
bureau installed an automated response system, the bureau's three
teleservice agents could answer only about 8 percent of calls from
doctors and other health care providers to verify Medicaid claims. 
Since the bureau installed the automated system, which handles 12
calls simultaneously, 100 percent of its calls are answered.  In
addition to improving service, the system may save the state over
$1.3 million a year by eliminating claims with errors. 

This and other private-sector experiences indicate that automated
response systems can dramatically affect the cost of service
delivery.  Calls would cost $12 per call if answered by a call agent,
according to one financial services firm, compared with $.20 per call
if answered by an automated response system.  This firm, with a daily
call volume of 250,000, could potentially reduce costs from $3
million to $50,000 a day with a fully automated system.  In another
example, over a 4-year period, one company reduced staff by 50
percent and increased its account base by the same percentage by
promoting the use of automated response systems.  One brokerage firm
has passed on some of the savings to its customers by offering
discounts of as much as 10 percent for trades conducted over its
automated telephone system. 

Although companies have historically used automated response systems
in situations where customers make many repetitive calls requiring no
explanation, such as balance and check-clearing inquiries in the
banking sector, they are also increasingly using such systems for a
wider and more complex variety of transactions.  For example, one
bank official we contacted said customers may use an automated
interactive service to transfer funds between various bank accounts,
make loan payments, and pay bills to previously identified merchants. 
The bank wants to expand its automated services and is setting up an
automated feature to stop payment on checks and a
merchant-verification procedure (whereby merchants can check to see
if customers have sufficient funds to cover a personal check). 

To be effective, automated systems should have no more than two to
three submenus, with each menu offering a maximum of four options,
according to research studies.  For more complicated menus, however,
companies have found that providing information ahead of time on the
features and proper use of an automated system reduces the number of
calls ultimately handled by a service representative.  Companies
generally mail such guidance to customers. 


   LIVE ASSISTANCE OPTION
   IMPORTANT FOR EFFECTIVE SERVICE
-------------------------------------------------------- Appendix II:3

Private-sector companies have found that live assistance remains a
necessary part of 800-number service for handling unusual or complex
transactions or for customers with a special need or question.  To
provide cost-effective service, private-sector companies recognize
the importance of providing their call agents with state-of-the-art
technology.  Such technology allows call agents to quickly and
efficiently serve their customers.  For example, expert systems are
widely used to enable frontline workers to answer customer inquiries
quickly and effectively.  Expert systems include databases to quickly
retrieve information and online procedures manuals that are easy to
use. 

Companies are increasingly linking telecommunication and computer
technology to retrieve customer records as soon as a call is
received.  Using automatic number identification technology, a
company's computer matches the caller's phone number to company
records to identify and retrieve the record on file for that phone
number.  Such a quick retrieval of information can reduce call length
by 20 to 30 seconds, according to one expert, and, if a business has
many of its callers using their phone number on file, the savings can
be substantial.  The benefits of this technology surpass cost
savings, according to one representative of a major vendor, because
it is a proactive service saving the customers' time and increasing
customer satisfaction.  Most of this vendor's largest customers have
moved to this technology. 

Companies are also increasingly using sophisticated imaging
technology that allows them to electronically share copies of
documents officewide.  In the past, call agents would have to rely on
sharing paper documents to provide customer service--an inefficient
and time-consuming process.  Imaging technology allows a document to
be scanned into the electronic database and be made immediately
available to all agents on their computer screens anytime they need
it.  Document scanning and on-screen retrieval have helped one major
company answer 80 percent of inquiries on the first call, compared
with 40 percent in prescanning days. 

Companies are also moving toward fewer and larger centers for
organizing their call agents.  While opinions vary on the ideal
number and size of call centers, experts agree that site
consolidation is important for effective 800-number service.  A
recent example of call center consolidation includes a regional power
company that served its customers in the late 1980s through 98
offices in two contiguous states.  While service was personal, it was
also inconsistent and inefficient, so the company consolidated its 98
offices into a single, state-of-the-art megacenter. 

Sometimes companies consolidate operations to achieve purposes other
than economies of scale.  For example, when one company consolidated
57 branch offices into three regional centers, the primary criterion
in site selection was an adequate supply of high-quality labor at
competitive labor rates.  Other potential benefits of physical
consolidation include reduced rent and utilities; lower operating and
equipment costs; increased managerial span of control requiring fewer
managers; increased flexibility in staffing, centralized training,
and support functions; and increased consistency in processes and
service.  Beyond these benefits, according to one expert, fewer call
centers allow easier database management, particularly because
teleservice agents often have to share data among centers. 

Opinions vary on optimal call center size, but the centers in many
large corporations range from between 200 to 600 positions.  The
National Performance Review-sponsored benchmarking study of
800-number services reported that the number of operating locations
needed to handle even the largest call volumes is typically one to
three call centers, with a maximum of 600 frontline workers per
center.  Some larger companies, however, have as many as 2,000 to
3,000 teleservice agents at one call center, according to one
800-number vendor we contacted. 




(See figure in printed edition.)APPENDIX III
COMMENTS FROM THE SOCIAL SECURITY
ADMINISTRATION
========================================================== Appendix II



(See figure in printed edition.)


GAO CONTACTS AND STAFF
ACKNOWLEDGMENTS
========================================================== Appendix IV

GAO CONTACTS

Cynthia M.  Fagnoni, Assistant Director, (202) 512-7202
Michele Grgich, Evaluator-in-Charge, (415) 904-2183

STAFF ACKNOWLEDGMENTS

In addition to those named above, Robert R.  Tomco was an important
contributor to all aspects of this review, including data gathering,
analysis, and report writing; and James P.  Wright contributed
significantly to the writing of this report. 


BIBLIOGRAPHY
============================================================ Chapter 1

American Bankers Association.  Call Centers:  Moving Beyond Call
Centers to Full Service Delivery.  A Quarterly Monograph on Retail
Delivery, Issue 5.  Washington, D.C.:  American Bankers Association,
1995. 

DALBAR Automated Voice Response Analysis.  DALBAR, Inc.  Boston: 
1995. 

DePalma, David E., and John A.  Goodman.  Key Factors to Successful
Implementation and Acceptance of Automated Response Systems. 
Technical Assistance Research Programs, Inc.  Arlington, Va.:  1995. 

Gable, Robert A.  "Enhancing Call Centers With Advanced 800 Services: 
Benefits and Risks." Telecommunications (Feb.  1995), pp.  31-34. 

Gorman, James.  "Maine Bureau Climbs Up From Sick 8 Percent Call
Handling." Communications News, Vol.  32, No.  8 (1995), pp.  20-21. 

Improving Service on Social Security Administration's 800 Telephone
Number Network, SSA Office of Inspector General.  Washington, D.C.: 
1995. 

Marwaha, Jay, and Jeff Tommerdahl.  "Outsourcing Your Customer
Service." Telemarketing, Vol.  14, No.  2 (1995), p.  84. 

"Serving the American Public:  Best Practices in Telephone Service."
National Performance Review Benchmarking Study Report, National
Performance Review.  Washington, D.C.:  1995. 

Sewell, Richard.  "Reengineering the Call Center." Business
Communication Review, Vol.  24, No.  11 (1994), p.  33. 

The Voice Processing Market Outlook.  Yankee Group Research, Inc. 
Boston:  1995. 

Walters, Kevin.  "A Marriage of Convenience." PC Week, Vol.  13, No. 
12 (1996), p.  13. 



RELATED GAO PRODUCTS
============================================================ Chapter 2

Social Security Administration:  Significant Challenges Await New
Commissioner (GAO/HEHS-97-53, Feb.  20, 1997). 

SSA Benefit Statements:  Well Received by the Public but Difficult to
Comprehend (GAO/HEHS-97-19, Dec.  5, 1996). 

Tax Administration:  Making IRS' Telephone Systems Easier to Use
Should Help Taxpayers (GAO/GGD-96-74, Mar.  11, 1996). 

Social Security:  Telephone Access Enhanced at Field Offices Under
Demonstration Project (GAO/HEHS-96-70, Feb.  23, 1996). 

Tax Administration:  IRS Faces Challenges in Reorganizing for
Customer Service (GAO/GGD-96-3, Oct.  10, 1995). 


*** End of document. ***