ARCHIVE FOR THE ‘ceo’ CATEGORY

Dave Hart, Managing Partner of Field Service Associates, highlights the importance of benchmarking your business against your competitors to fully understand if your strategy and plans are working.

I have to say for almost 18 months now I have been an avid watcher of the news with particular interest in seeing the daily coronavirus cases and deaths figures for the UK. Do I have some morbid fascination with seeing the numbers whilst being thankful I am not one of the statistics? Well, yes; yes, I do. Why may you ask? Well, I am one of those people who are classed as clinically extremely vulnerable, and I must be very careful where I go and who I meet. Even my friends don’t come around to my house unless they have taken a lateral flow test. (I must confess its rather embarrassing ‘parking’ them in the garage and watching them force large swabs up their noses before we allow them in!)
What fascinates me more, is that statistically I am a person far more likely to have serious ramifications to my health if I caught coronavirus and therefore, I watch with great interest in how the UK government tackles this awful virus. Now I am not going to debate the rights and wrongs of if the UK government should have locked down earlier, the wearing of masks, COVID passports and the vaccine roll out versus the anti vax brigade (don’t get me started!). No, I am fascinated how the stats stack up country to country, now we have enough data we can see trends emerging and that is truly enlightening. You see for me, any governments first duty is to protect the lives and well-being of its citizens and now we can measure the ‘performance’ of each country’s government strategy and benchmark them appropriately. I will let you be the judge as to how well each government is performing…

Thus, my title for this article. Always light a candle to show your performance. You see I fundamentally believe that any business, like any government, should be benchmarked against its peer group so that it has an indicator that its strategy and plans are delivering for its key stakeholders, namely the employees, customers, and shareholders

I love the phrase used in the US which is often banded about ‘I had my ass handed to me’ as it resonates with me so much. You see in a previous role, as my quarterly business reviews took place in the board room of our corporate headquarters in Connecticut, I often had my ass handed to me in my reviews because when challenged by the CEO or CFO it was almost impossible for me to defend my team’s performance. You see the problem I had was there were no external benchmarks available that I could use to determine if it was warranted that my ass should be handed to me (even on a silver platter as my old CEO would often attest to doing!). As much as I tried, I could not find a way of proving that my team were performing very well especially with the constraints I faced as a service leader at the time. Often, I would be asked why I couldn’t get more productivity, achieve higher first-time fix rates, increase revenue per head, better profitability by product, reduced inventory (working capital) levels. I could go on – you get the picture. In cases like these arbitrary performance levels are set that can often be extremely difficult to attain purely because no one knows if anyone has achieved these levels of performance historically. It was only much later in my career that purely by chance I met my counterpart from our biggest competitor at the time. It was intriguing to find out that he had the same challenges from his CEO.

It strikes me that these days understanding your businesses performance becomes even more complex with transformational journeys service companies are embarking on. Artificial intelligence, Augmented reality, AIoT, Remote visual assistance, blended workforce approaches and many other developments. Service leader’s needs to benchmark themselves against their peer groups to truly understand if the progress they are making is keeping pace with their competitors. To take this approach would quickly evidence to any service leader whether they needed to really start to take affirmative action in areas where they were falling behind their peer group, or indeed, walk into any boardroom with the full confidence of knowing their service team’s performance sets the benchmark and that is a completely different conversation with the CEO!

So, don’t curse the darkness of not knowing how you stack up, light a candle on your business and benchmark your performance and do so every year so you can evidence your progress. At the end of the day, it makes perfect sense to know whether your ass is ever going to be handed back to you.

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Further Reading:

• Read more about Leadership and Strategy @ www.fieldservicenews.com/leadership-and-strategy
• Read more exclusive FSN articles from Dave Hart @ www.fieldservicenews.com/dave-hart
• Learn more about Field Service Associates @ fieldserviceassociates.com
• Connect with Dave Hart on LinkedIn @ linkedin.com/david-hart
• Follow Dave Hart on Twitter @ twitter.com/DaveHartProfit

OverIT announced that, starting from October, the company will be spun off from the Engineering Group becoming an independent entity controlled by Bain Capital and Neuberger Berman.

In addition, Paolo Bergamo has been appointed as Chairman and Chief Executive Officer of OverIT. Prior to joining OverIT, Bergamo was Senior Vice President Product Management at Salesforce in San Francisco, California.

In his new role, Bergamo will lead OverIT's global team, growth strategy and vision.

Bergamo has a deep knowledge of Field Service Management, with over two decades of proven global experience in the software sector. Given his track record, Bergamo is ideally placed to lead OverIT in its next phase of growth as innovator and visionary.

"The spin-off is the result of a strategic partnership between Neuberger Berman and Bain Capital, that has the goal to accelerate OverIT's internationalisation and build the global Field Service Management software leader through increased investments" said Piero Galli from Neuberger Berman.

"When searching for a new CEO to lead OverIT growth journey and reach the ambitious goals we set, we wanted someone who deeply understood not only the industry OverIT operates in, but also the ambition of our funds and the culture of a global company. Paolo has proven leadership capabilities and a track record of scaling technology businesses; we are pleased to have him join to lead the company in the next phase of growth" said Giovanni Camera from Bain Capital.

"I'm thrilled to join OverIT at such an exciting period" said Bergamo, "When Bain Capital and Neuberger Berman proposed to me the ambitious project to bring OverIT, one of the flagships of Made in Italy technology, to the forefront internationally, I felt I couldn't miss this great opportunity. I have the ambition to make OverIT an international hub for young technology talent to grow and unleash their potential".

 

OverIT, backed by US capital with development headquarters in Italy and main US office in Miami, is a multinational company with more than 20 years of international and cross-industry experience in Field Service Management. The firm is recognized by premier global advisory and consulting organizations as a leading vendor in FSM, Mobile Workforce Management and AR industries. providing more than 300 international customers and 150,000 Field Service users with process knowledge, innovative functionalities and cutting-edge technologies.

Bain Capital, LP is one of the world's leading private multi-asset alternative investment firms that creates lasting impact for our investors, teams, businesses, and the communities in which we live. Since our founding in 1984, we've applied our insight and experience to organically expand into numerous asset classes including private equity, credit, public equity, venture capital, real estate and other strategic areas of focus. The firm has offices on four continents, more than 1,200 employees and approximately $140 billion in assets under management. To learn more, visit www.baincapital.com.

Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate, and hedge funds—on behalf of institutions, advisors, and individual investors globally. The firm manages $433 billion in client assets as of June 30, 2021. NB Renaissance supports ambitious entrepreneurs and management teams with a goal to create market leading businesses. Part of Neuberger Berman since 2015, today NB Renaissance manages €2.0 billion of commitments from a pool of high-quality Italian and international investors. NB Renaissance is currently invested in 12 companies, which include some of the excellence of the Italian corporates. NB Renaissance can count on a team of 20 private equity professionals of Neuberger Berman in Italy, supported by the broader Neuberger Berman private equity platform of 245+ professionals.

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Further Reading:

• Learn more about OverIT @ www.overit.it
• Read more about Digital Transformation @ www.fieldservicenews.com/digital-transformation
• Read more about OverIT on Field Service News @ www.fieldservicenews.com/overIT
• Read more about AR on Field Service News @ www.fieldservicenews.com/augmented-reality
• Learn more about Bain Capital @ www.baincapital.com
• Find out more about Neuberger Berman @ www.nb.com
• Follow OverIT on Twitter @ twitter.com/OverITSpA

 

Dave Hart, Managing Partner of Field Service Associates, discusses one of Marvel’s greatest superheroes (and the issue of skill shortage in the field service sectors)...

In 1963 it was the height of the Cold War and it so happened that Marvel published its latest comic edition entitled Tales of Suspense. It launched a new superhero who was a wealthy ‘ladies’ man’ (Don’t shoot the author at this point - that’s how Marvel described him - can we say that now?) called Anthony Edward Stark or Tony Stark as most of us know him. The creator of this new superhero, Stan Lee, based the character on Howard Hughes, one of the most colourful and influential entrepreneurs of his time.

In 2008 the character hit the big screen in the film Iron Man, played superbly by Robert Downey Jr. and grossed over $585 million at the box office.

Iron Man had the following abilities:

• Genius level intellect
• Proficient scientist and engineer
• Powered armour suit with:
  • Superhuman strenght, speed, durability, agility, reflexes, and senses
  • Supersonic flight
  • Energy repulsor and missile projection or Regenerative life support

Tony Stark’s armour suit was always intriguing to me as it gave him an extraordinary advantage in any situation as it was powered by an arc reactor. He could fend off any potential foe as it gave him incredible strength and durability.

It got me thinking. Wouldn’t it be wonderful if someone would develop a suit that would give people incredible strength and durability? Just imagine the uses. People with a physical disability could walk again. The elderly, who may struggle with physical exercises such as climbing stairs or walking could live a ‘normal life’ again if a suit like Tony Stark’s existed.

Well, perhaps it does, in the form of Exoskeleton technology. According to a study by ABI Research, global exoskeleton revenues are expected to rise from $392m (£284m) in 2020 to $6.8bn in 2030. When you consider all the use cases, this number does not seem so unbelievable.

In our mind's eye, we may see large bulky metal frames with wires and hydraulic pipes hissing as the frame moves like some giant metal Schwarzenegger lifting a small family car, but this is not reality anymore, the technology has improved over time. There are practical use cases now used in everyday life. Take GM for example, they are supporting the development of a battery-powered exoskeleton glove developed by Swedish firm Bioservo. This glove, called the Iron Hand, has sensors and motors in each finger, which automatically respond to the level of force that the wearer applies to his or her hand when lifting or gripping something. The glove, therefore, takes up some of the strain. A simple use case, but it helps with productivity, lowers repetitive strains, decreases health and insurance costs, and reduces the risk to its workers.

 

"It’s been long established that field service is heading for a skills shortage. Growth in service businesses has fuelled demand..."

 

Does this all seem a bit 22nd century still? Well, Delta airlines are testing a full-body exoskeleton for their baggage handlers that can lift to 90KG (200lbs) for up to eight hours at a time. Please think of the benefits that will deliver to the long-term health and well-being of their people.

So why is the growth in exoskeleton technology so rapid? Well, according to the American Chiropractor Association, back pain accounts for more than 264 million lost workdays in one year—that’s two workdays for every full-time worker in the country, and Low-back pain costs Americans at least $50 billion in health care costs each year—add in lost wages and decreased productivity and that figure easily rises to more than $100 billion, in the US alone!

Now to my point here - it’s been long established that field service is heading for a skills shortage. Growth in service businesses has fuelled demand. As the Boomer generation retires, the next generation of Millennials display signs of reticence and don’t always see field service as an area where they see their career long term. We are heading for the perfect skills shortage storm.

Yes, some technology advances help; the boom in AR technology that allows much better remote triage impacts productivity and customer experience. Couple this with Customer Replaceable Units (CRU’s) and the pressure has been relieved somewhat. Still, most service organisations have no choice other than to send a highly skilled engineer to a customer site to affect a fix.

So, where does this leave us? 

Fewer engineers and higher workloads might mean we need to use tools that could extend the working day or indeed the working life of our engineers. Using exoskeleton suits could reduce the physical burden on engineers so this can be possible. Factor in AI where the suits become more intelligent as they learn over time, and you could have a combination that could deliver a huge productivity bump in field service. Also, consider that as battery technology and manufacturing costs reduce, this technology will be within the grasp of a service leaders budget – it’s just a matter of time…

So next time you place a service call on your office printer, look out for Tony Stark with his tool bag in hand. If Pepper Potts is with him, then you really have struck gold.

 

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Further Reading:

• Read more about Leadership and Strategy @ www.fieldservicenews.com/leadership-and-strategy
• Read more exclusive FSN articles from Dave Hart @ www.fieldservicenews.com/dave-hart
• Learn more about Field Service Associates @ fieldserviceassociates.com
• Connect with Dave Hart on LinkedIn @ linkedin.com/david-hart
• Follow Dave Hart on Twitter @ twitter.com/DaveHartProfit

Dave Hart, Managing Partner of Field Service Associates, takes us on a journey down memory lane in this exclusive article for Field Service News.

OK, come with me on a journey down memory lane here…

In 1983, legendary singer Lionel Ritchie (yes, he of Commodores fame) released his new solo album Can’t Slow Down. The following year he released a single from that album entitled Hello (is it me you’re looking for) and it reached number one on three Billboard music charts: the pop chart (for two weeks), the R&B chart (for three weeks) and the adult contemporary chart (for six weeks). The song also went to number one in the UK Singles Chart for six weeks.

Whilst driving along in the car a few weeks ago, I was thinking through my consultancy write up following my conversation with a CIO of a very large company. “Hello, came on the radio” at exactly the right moment; it was one of those moments, almost fate where in seven words Lionel had managed to summarise the root of the issues this particular company was having.

Whilst discussing with my CIO client her particular hot topics (which was the subject of the call) we discussed her companies service business which was fairly sizeable and when digging a little deeper into the topic with her she proclaimed, “I don’t actually know the name of the guy who runs our service business!”

I know from my own experience running a large service business, our quarterly business reviews with the CEO were two hours long. One hour and fifty minutes discussing how much product we had sold and ten minutes discussing the service business. The service business contributed significantly to the overall EBIT of the company; it’s like it was a given, that service would just perform and achieve the numbers.

During a budgeting cycle in the same company, the regional CFO exclaimed, “I have no real idea how service works, I just assume revenues will go up with the annual price increase, you will keep contract losses below 3% and your budget EBIT number is a given”

So, my question. Should service be taken for granted?

Unfortunately, in so many businesses, it is and my call to action here is that for service to thrive It needs focus from the whole ‘c suite’ to ensure it grows, that it constantly invents itself to cater for customers ever changing needs, market forces and transformational factors.

“Service leaders need to grasp what dominates their business leaders’ areas of focus

and then capitalise on that.”

Service is the powerhouse, the profit driver; dare I say, the future of sustainable revenues for product companies. Don’t take my word for it look at the evidence. In the recent TSIA publication ‘The State of Service Revenue Generation 2020’ the report states that 62% of companies polled said equipment revenues were declining and 70% stated service revenues were increasing.

So, ask yourself this question. How many true CSO’s are out there within companies, CSO’s that sit on the ‘C suite’ and influence the business direction, develop strategies for growth, that influence product design to be more service centric and ultimately transition the company to adopt a service mindset?

I bet not many.

I remember a conference from the days when we could travel, data attributed to PwC was presented, PwC had surveyed 2,500 companies in 2018 and found that 83% of those companies promoted the CEO from within. There is a startling similarity to service leaders who are promoted from within (that number is actually 84%), but does this necessarily mean that the potential myopic view of service is maintained?

The challenge for service leaders is to become apparent and top of mind to their CEO/CFO/CIO’s which is by no means easy. Service leaders need to grasp what dominates their business leaders’ areas of focus and then capitalise on that. I suggest service leaders find an approach that works with each persona. Here are some suggestions which are generic but may help the reader understand some areas of potential focus for them…

• CFO’s – Half of CFO’s are fast tracking digital initiatives and 52% are re assessing business strategies. What an opportunity to put service front and centre introducing new approaches and digital transformation to pull organisations out of the COVID slump and back into revenue growth.
• CIO’s – Of course will be concerned with cyber security, data governance and automation but in creating IT products, CIOs will be interested in the emotional value that makes their customers purchase the product or service. CIOs and IT leaders realize that customers buy from companies they feel care about them. Another wonderful opportunity to get on the agenda of the CIO and talk about your service strategy.
• CEO’s – Their top concern is global recession and maybe it’s time to enlighten them about how service can become the engine of growth for their business.

Service leaders need to be able to understand each of the drivers of the people listed above and then ensure they tailor a message to that persona that will resonate. To do that they must be thoroughly prepared to be top of mind with their proposed solution, as each one of the ‘C suite’ will have many pressing priorities, all vying for their and their teams time as well as those precious financial resources.

Benjamin Disraeli once said ‘There is no education like adversity’ and COVID has delivered adversity in spades but I can’t help but feel the time has never been better to influence above, to build a sustainable plan that will resonate with your leadership team, to re-educate them about just how powerful their service businesses are. I then suggest you then pick up the phone and dare I say, start by saying….

Hello, is it me you’re looking for?

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Further Reading:

• Read more about Leadership and Strategy @ www.fieldservicenews.com/leadership-and-strategy
• Read more exclusive FSN articles from Dave Hart @ www.fieldservicenews.com/dave-hart
• Learn more about Field Service Associates @ fieldserviceassociates.com
• Connect with Dave Hart on LinkedIn @ linkedin.com/david-hart
• Follow Dave Hart on Twitter @ twitter.com/DaveHartProfit

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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