AUTHOR ARCHIVES: AListair Clifford-Jones

Alastair Clifford-Jones, CEO of Leadent looks at how the focus of field service is shifting towards driving strategy rather than being a recipient of it...

The holy grail for field service managers has been to reduce costs whilst maintaining customer service levels; effectively meeting SLAs at the lowest possible cost. This is still important, but the focus is changing. Field service is moving into a space of key importance, driving strategy rather than being a recipient of it.

All markets are now impacted by this change. Looking at the consumer market there is so much information for consumers; independent websites that not only compare products but also services, and these naturally impact buying decisions.

Research has shown that many customers won’t switch until they have had a bad service experience.It’s now easy in the UK, with the deregulations of the Utilities market, for consumers to switch suppliers. Research has shown that many customers won’t switch until they have had a bad service experience. On the other hand, customers will switch if the price differential is greater than 20%.

The cost of bad service really impacts an organisation’s profits. In a recent Harvard Business Review report; a 5% increase in customer retention results in a 25%-95% increase in profits. This becomes more important to the service organisation as products become less differentiated on functionality.

In light of new technology, and the change in consumer behaviour we at Leadent have developed a maturity model which I introduced in an earlier article for Field Service News. This model (see diagram below) not only measures where organisations are positioned currently, but what they should aim for by demonstrating the key characteristics an organisation needs.

Whilst it’s an organisational model, technology and processes still need to be implemented, and cultural change cannot be underestimated. So let's explore each of the three stages...

Chaotic Survival

This is the embryonic phase, often referred to as JFDI.

Everything is reactionary, heroes in the business are the people that get things done. Someone that fixes a water leak at three in the morning gets the company award. All the processes are desperate, and much of the knowledge about how to do things are in people’s heads.

The level of ‘Chaotic Survival’ can often be measured by the noise in the dispatch office and the number of calls made to the field and customers.

Initially, the workforce is seen as a cost, and any case for change is usually based on a cost reduction program by streamlining processes and the introduction of scheduling, albeit a manual tool.

Whilst many companies have moved beyond this stage, it is surprising how many organisations have not. Moving out of this phase is probably the most challenging in terms of people. Field teams need to be managed and dispatchers need to allow technology to make decisions. The world is littered with organisations that have failed to develop, those who may have implemented a technology solution but not the new processes, organisation and skills required to make this step.

Supply Led

This phase starts building the groundwork for excellence.

The technology both in scheduling and mobility starts to connect the organisation together. Silos, which were in the previous phase are dismantled and the organisation becomes more collaborative. From a business perspective, this is when customer service and field operations often become part of the same entity.

Rather than responding to customer needs in a reactive fashion, the company can start to become more proactive. Planned maintenance, if applicable, gets built into the schedule. Customer service levels can be monitored and informed decisions made in terms of minimising costs but maximising the customer service levels.

The field force, hitherto considered as a cost now has more flexibility and starts to drive a competitive advantage. Whilst we see these organisations becoming more collaborative internally they are still not working with customers and suppliers in a truly collaborative manner, and this is a huge missed opportunity.

Demand Led

The holy grail. This is the phase where technology and the right organisation can really disrupt the industry and organisations can leapfrog their competitors. Field service starts to drive the agenda, drive the strategy. The organisation no longer is a recipient of customer demand and fulfils these in an optimum manner. Processes are no longer just contained within the confines of the enterprise but are built to include customers and suppliers.

This is the new ‘battleground’ for field service and technology has made it possible. By putting the customer first, they have control. They can book appointments through multiple channels and based on their preferred choice. They have full visibility of the processes, and in many cases, can actually solve the problem themselves.

The suppliers are able to understand how their products perform in the field and feed this back to the manufacturing processes.

This is the new ‘battleground’ for field service and technology has made it possible.

IoT is a reality and no longer a pipe dream of visionary consultants, and it enables organisations to truly predict failures, determine preventative maintenance schedules and offer a level of service which exceeds customer expectations at a substantially lower cost.

This does, however, require a very different way of thinking and a true cultural shift. To be in this phase you need to have an organisation which thinks differently, embraces technology and one that really understands the customer.

Summary

In summary, the new world is exciting.

It’s even making field service seem ‘sexy’, but most of all digital service (an often misused term) is truly disrupting the industry. It is technology driven, but the companies that will be able to exploit this will think differently. They will think about the end to end processes from manufacturing and the whole customer journey; from making the purchase decision to disposal.

This needs an organisation to not only break down internal barriers but also external ones.

Given that each phase of maturity requires changes in culture, it would be very hard from an organisation to move from being ‘adhoc’ to ‘predict and engage’ in an instant as each phase is a building block for the next. However new entrants to the market can start on the right-hand side, and this is where organisations which don’t develop will lose out.

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Leadent CEO, Alastair Clifford-Jones discusses the fundamental elements that should come together when building a strong request for proposal document...

The purpose of an RFP is to join two or more parties together. One has a need, and the other a product or service to fulfil this need; it’s imperative that companies must never lose sight this objective. To be successful this needs to be met with the right commercial structure.

With a technology requirement, there are many ways of approaching this.

On the one hand, companies can draw up detailed requirements and the vendor can determine how their solution can meet these on a point by point basis. On the other hand, companies can simply put forward a business problem, and the RFP allows maximum flexibility for the vendors to determine how the problem can be solved.

Both have their pros and cons, but with the right approach solution seeking companies can be successful.

Considerations for Success

To produce a successful RFP process there are several things to be considered:

1. The End Goal

Many organisations lose sight of the fact that the RFP is a process, not a document. Many companies, particularly when the RFP is procurement led, focus their efforts on the document and build a very rigid structure. This will work for simple point solutions where the only challenge is a functional fit. As the requirements become more complex organisations must never lose sight of what they are trying to achieve, and not be driven by the initial document. You can never do enough planning.

2. Include Credible Suppliers

It is vital that credible suppliers are included. The process is inevitably very time consuming, and you don’t want to waste time sitting through demos and presentations with suppliers that are not credible.

To determine credible suppliers, it is worth doing your desk research and running an RFI process. There are a number of companies that produce research about the industry’s best suppliers etc. Given that time is limited, it is better to spend this time researching a handful of suppliers than a vast array.

3. Remind Yourself; You’re Buying a Solution, Not a System

Systems need to be implemented to deliver a solution and this part is often forgotten by organisations, namely because it is much easier to evaluate on functional fit rather than implementation skills.

Often organisations will look to split the responsibilities of implementation and software between two vendors. This has its own pros and cons, but if split needs to happen at the same time. Selecting software and then an implementation partner is very disjointed, and whilst you might select the best technical solution it may be the hardest to implement.

4. You’re Building a Partnership

You are building a partnership, and not producing a test or a framework for procurement. Whilst these are important they are not the reason for talking to suppliers. When producing an RFP you’ll want vendors to want to work with you, and the RFP document is a critical window into your organisation. For this reason, it is important that neither procurement or IT write the document.

Their input is, of course, important, but it’s a business challenge you are trying to solve through technology so it’s the business requirements that are critical. A badly written ITT will stop vendors from responding and will be very hard to evaluate.

5. Consider the Evaluation Criteria

The evaluation criteria should not be an afterthought, it must be considered in the planning stage.

Many organisations revisit their evaluation criteria during the processes and this impacts every aspect. This evaluation criteria need to be agreed by all the stakeholders who will be carrying out the evaluation.

Organisations must be very clear about any show stoppers early on and communicate these, with the full criteria to the vendors. There is nothing worse than taking a vendor through the process to realise that their cloud solution is hosted in a country that is not acceptable. The more transparent an organisation can be the more successful the process will be.

6. Make it an Easy Decision

Making a decision is hard but it needn’t be if you have done your planning right, agreed on what you want (evaluation criteria) and have the right level and expertise from the stakeholders. The problems occur when all the vendors meet your requirements, their references are good and you can’t differentiate. This is the point where relationships and cultural fit come into play. These can be determined by the bid team, but often this team is different to the client team and presentations have been led by the sales team and not the people doing the work. If needed, this is the time to do more work. Meet reference clients, insist on meeting the delivery team, understand the vendor strategy and how they will work with you in the future.

Trusting Relationships Will Win Out

Often the RFP process fails due to its transactional nature. This is the start of a partnership between two businesses and as mentioned at the start, you need vendors to think about how this will progress. It is true that in today’s world the start of a relationship is often transactional (meeting a partner via Tinder) but for it to be successful as the relationship progresses there needs to be transparency and honesty, and this no different in business.

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Leadent CEO, Alastair Clifford-Jones tackles the tricky issue of ageing technology...

Many organisations that have implemented field service management solutions now face a dilemma. Recent advances in technology platforms, software and hardware, have caused these organisations, that had previously enjoyed a competitive advantage, to risk being left behind. And it’s not just the advancement of technology that is driving this, the focus for many field service organisations has changed due to consumers’ ever-increasing expectations, and the deregulation of some industries.

Given the pressure on organisations to provide a better customer experience, many assume the solution is to replace or upgrade ageing technology; especially considering that the replacement could be a Cloud or SaaS-based solution that would shift the costs into an OPEX bucket. Whilst this might be seen as a silver bullet, the truth is more complicated.

When organisations first considered field service management systems they were trying move away from the Chaotic Survival state (as per the maturity model shown below.) Business cases were predicted on an improvement in operational efficiency by ensuring the right job was given to the right operative, with the right skills/tools/parts to meet customer service levels at an optimal cost.

 

To become a Supply Led business required a limited change in technology, and more of an organisational change as it is much more about breaking down silos within a business.

However, transforming into a Demand Led organisation requires significant investment, and a completely different way of thinking. This is where organisations need to be truly digitally enabled with multi-channel customer touch-points.

So, what’s the right direction for organisations?

It depends. There are several aspects to be considered.

The first is not just what technology you have, but how well it’s been implemented into the business; are processes understood and adhered to? Does the business model match both the objectives, and process model?

Often organisations believe technology is at the root of their problems – if they could just have faster software or more flexible configuration life would be so much simpler. In reality it’s often the way technology has been implemented and this isn’t just about customisation or configuration, it’s about embedding process and mindset change into the business. Even in today’s world, there are far too many technology-driven implementations that are not owned or controlled by the business.

The second is deciding where the business needs to be. In the diagram above, it is clear the ‘best’ position is on the right-hand side, but this is primarily driven by consumers. If your customers don’t need you to be this type of business, there is no point trying to position yourself there. But don’t kid yourself, this would make you the exception, not the norm.

Your business’s starting point, and where you need it to be will give you an indication of the gap that needs to be closed to deliver competitive advantage. This then begins to formulate a basis for the decision to upgrade or replace technology. But, as ever, there are a number of ways to close this gap, with many requiring some technology, but how do you make the right decision?

The options are:

• Drive more value from a current deployment
• Implement point solutions to add functionality
• Upgrade an existing solution
• Replace the current system

Getting more Value from a Current Deployment

Many implementations have failed to deliver the anticipated value. It’s not that businesses are over optimistic when the business case is developed, but more that they don’t take the opportunity to truly transform. The field service management solution is seen as an operational tool and implemented in a silo.

This silo thinking has resulted in the lack of an integrated view of the end-to-end customer journey. In reality, this is not because the business failed in the implementation, but more that efficiency was the focus at the time.

 

Getting more from a current deployment is all about the end-to-end customer journey. Often greater value can be achieved from just having an integrated view, which means looking at processes and how the organisation matches this view.

In my experience, there is always more value that can be generated from a current deployment. But the big question is, is it ever enough to meet current and future requirements?

Implementing Point Solutions

If the scheduling and dispatch solution is working well, and an organisation is just trying to improve the customer experience, there is no reason why the existing solution cannot be enhanced by implementing greater functionality via integration with other software such as online booking or customer communications.

This way a customer can get the ‘digital experience’ with minimal disruption to operations. Given integration capabilities and the proliferation of APIs, it is much easier in today’s world to integrate a point solution with current platforms. The main gripe for customers is the lack of information from the organisation. If you keep your customers informed via appropriate channels - a web or mobile app, or even a lowly text message, it can dramatically enhance customer experience.

In addition to improving the customer experience, it alsomakes operational sense. The business case for delivering better customer information can often be satisfied by the reduction in calls to call centres alone.

Upgrade an Existing System

Upgrades come in many forms. Vendors are working hard to shift customers from on-premise solutions to their new cloud variants. While the existing cloud vendors are innovating and adding functionality to stay out in front. Often the decision to upgrade is with the supplier in that support will usually be withdrawn for non-upgraded systems, for example, where the cloud option becomes the only option.

Where the organisation has an option to upgrade to get enhanced technological capabilities, it is very important to understand the impact it will have on the people and processes. In my experience, upgrades often fail because the processes have not be realigned, or the teams have not been properly informed or trained.

Organisations that have really benefited from enhanced functionality have conducted a full impact analysis on the processes and realigned their businesses appropriately to make best use of new capabilities.

Replacing a Current System

To many organisations, replacing a system fills them with dread as the initial implementation was a particularly expensive and painful experience but, in reality, much of the hard work has already been done. Much of that pain was in moving from a manual system to auto-scheduling and mobile dispatch. This was a change management exercise, and isn’t a reason not to replace. In fact, if it was done well, it’d be shame not to further capitalise on that investment.

Additionally, moving to a cloud or SaaS based system will not require the capital outlay which was required in the past and, should an organisation choose to move to the cloud, the new IT landscape and architecture needs to be considered, particularly in terms of integration and security.

 

Of course, there are benefits of replacing a current system beyond those of better functionality, for instance, some new systems offer much greater business flexibility. For example, the way different providers treat capacity can offer greater benefits; where many assign an engineer at the time of appointment, some now look at the overall capacity and perform the assignment on the day. For the majority of businesses and use cases, this increases efficiency.

If we are looking at moving organisations to the right on the maturity model it’s essential to have an integrated approach to the end-to-end customer experience, which may be constrained by that organisation’s field service management solution.

Don’t Get Left Behind!

As we’ve seen, moving towards a truly Demand Led model for field service can be achieved via a number of different paths. Where your organisation sits within the maturity model and how much focus is placed on the customer journey will dictate the path you need to take.

But in all cases, it is imperative to make those decisions with a critical eye on your own maturity and the end-to-end customer experience in mind. Failure to do so risks leaving the business trailing in the wake of those who do.

 

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Alastair Clifford-Jones, CEO at Leadent Service Cloud, looks at the challenges IT managers working within service organisations face... 

If you are an IT Manager in a service business, you have a tough job. With an increasingly-squeezed budget, you are constantly expected to deliver more for less. When it comes to your organisation’s fieldforce the responsibility to provide an effective field service software tool for minimum cost and maximum return may well lie with you, together with managers of the operation itself.

But whilst budget is obviously important, we don’t believe it should be the top priority in the decision-making around IT investment. (And yes, we hear your response of “Well, you would say that”, but bear with us.) We think you need to think more broadly, think bigger.

Whilst the budget for field service software may sit with IT, primarily it’s the operations of the business who will be using it day in, day out. If implemented and used correctly, field service management solutions can offer a whole host of savings and benefits, including a good number that will directly impact the IT department and budget.

In trying to explain the return on investment from field service software, we’d usually talk about savings in diesel costs through the use of optimised driving routes, completing extra jobs per day through a more optimised scheduling system, or adding a new customer because you have been able to eliminate repeat visits. All of these savings have a direct impact on the company’s bottom line, and we do acknowledge that they come primarily from the operation. But there’s more to it than that - what about the IT savings that will result from using a best-in-class, cloud-based solution rather than a bespoke or customised system from a small, niche provider?

 

The benefits of a Software as a Service (SaaS) model have been much discussed and well documented. It allows IT Managers to hand responsibility for up-time, service levels, bug-fixing and support back to the software vendor. No more out-of-hours server upgrades (at least not for these systems), or working through complex contracts to understand what’s your responsibility; all you really need to do is make sure that hardware is available and the users’ browsers are the correct version.

When it comes to a system as central to the organisation as field service management, think how much effort and stress could be saved by not having to worry about the system going down. Or, not having to think about how it will integrate with other systems that you might purchase in the future. When you use a market-leading product (like that which Leadent Service Cloud is based on), these worries are a thing of the past.

Obviously, this will never be a decision that sits solely with either IT or Operations; we think it’s vital that the business and IT work together to come up with an aligned approach that focuses on benefits to the organisation as a whole, and which looks at costs/savings across all budgets, rather than putting this all on a single department.

IT Managers are used to having to support business needs – it’s the whole purpose of the function and it happens brilliantly in organisations every day without too many people noticing. So when it comes to field service management software, we’d encourage you to think big, get involved with the Operations teams and consider the organisation-wide benefits of a using a best-in-class solution, as well as thinking about the financial and workload flexibility you can derive from a SaaS solution.

 

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If you would like to know more about how Leadent Service Cloud can help you improve your field service then please visit www.leadentservicecloud.com

 

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Alistair Clifford Jones, CEO Leadent Solutions looks at why failing your own field service operations is also failing your customers...

It doesn’t matter what industry you are in, customers are becoming more demanding and products less differentiated. The boundary between efficient customer service and the best products is blurred. If you talk to people about what car to buy the topic is often more focused on aftercare service than the actual car.

In the case of domestic appliances this is certainly the case; although many manufacturers have outsourced their service business, it is still perceived as the service arm of the manufacturers. I know my wife will never purchase a well-known brand again as the service company was in her view ‘a nightmare’ (her post on Facebook attracted many similar ‘likes’ effectively trashing the product), when the problem was a different organisation.

Facilities management companies invest heavily in bid management, but rarely in efficient operations. Yet this has had fairly tough consequences – we can all remember the G4S fall out after the Olympics more than 4 years ago. I am sure, retrospectively, G4S would have invested more in efficient processes and technology had they known the consequences.

 

Service management is now the shopfront for products, not an afterthought, but it never seems to have the investment it deserves, certainly not compared to areas of the business like product development or marketing.

Why is this? I guess it’s not seen as dynamic or sexy, and operations rarely have a position on the board. Unfortunately, many organisations still view operations as a cost and a target for reduction, rather than investment.

This is where CEOs and CFOs have failed. Not only to understand how influential service management is on their overall business, but also how investment in technology, supporting efficient processes, will really drive down costs and more importantly enhance the customer experience.

There have been many business cases, requiring substantial capital expenditure, which have been rejected, often as the argument has been based purely on operational costs and not the impact of poor service on future sales.

I hate the phrase ‘no brainer’ but in today’s world, we are missing a trick in excluding the company’s reputational damage through poor service from a business case. Also in failing to recognise how cheaply cloud-based products can be implemented as the cost becomes a monthly charge rather than a huge operational expenditure. If our industry leaders truly understood this, implementing a solution would surely become a ‘no brainer’ and the costs of running a service business balanced with the repeat sales.

Our team has spent the last 10 years determining what makes the very best field service organisations succeed.  We know how to get organisations like yours working smarter, delivering better customer experience whilst reducing costs, that’s why today we have launched Leadent Service Cloud to help CEO’s stop failing their customers.

 

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