ARCHIVE FOR THE ‘change-management’ CATEGORY
Mar 20, 2020 • Features • future of field service • management • CHange Management • The Field Service Podcast • Networking
A Field Service News' favourite, Cheryl-Anne Sanderson, joins Mark Glover for our latest podcast bringing ideas around networking, perception and nurturing young talent.
It's been nearly a year since Cher made her debut on the Field Service Podcast. Since then a career move, a successful presentation at last year's FSN Connect, not to mention a well-deserved place in FSN's top 20 service individuals - the FSN20, has made the last 12 months, by her own admission, rather crazy. Yet despite the madness she has still found time to contribute thought-pieces for us on reframing networking and to make a second appearance on the podcast on nurturing young talent.
Cher's belief in guiding the next generation of leaders in service and FM remains undiminished and has possibly got stronger. She shares with us process her firm is undertaking when guiding through young, new recruits; and ponders if anything has changed around the perception of our sectors, a key metric when attracting new talent. She also explores some of the ideas raised in her article about networking.
As ever, it's a fascinating listen from one of the strongest most forward thinking voices in the sector. Listen now!
You can listen to Cher's previous podcast for us here and you can reach out to her on LinkedIn here.
Mar 13, 2020 • Features • future of field service • Jan Van Veen • management • moreMomentum • CHange Management • The Field Service Podcast • Networking
Regular Field Service News' contributor Jan van Veen says surrounding yourself with those on the same wavelength can foster high performance, innovation and change.
Silicon Valley thrives as its own ecosystem exists on disruption. Each start-up flourishes with individuals all moving in the same direction; keen to change what's gone before. Each person has the same values, habits, goals and mindsets. As a collective it's no surprise this part of California is one of the most creative hubs in the world.
In this edition of the Field Service Podcast, moreMomentum's Founder and MD (and long-time Field Service News' Collaborator) Jan van Veen urges service leaders to choose their network wisely if they want to change the status quo. Citing the aforementioned Silicon Valley and high-performance judo athletes van Veen lays the foundations of a successful social environment for your business.
Also, for the first time this series, the podcast incorporates input from a LinkedIn discussion on this topic before the podcast was recorded. One of those who contributed to that discussion, Rohit Agarwal shared this diagram with us. It's handy to reference this image at the appropriate point of the podcast.
You can reach out to Jan on LinkedIn here and find out more information about moreMomentum here.
Sep 19, 2019 • Features • Management • Martin Summerhayes • CHange Management
In an industry that moves as rapidly as field service often does, it is important to have a firm grasp on the nuanced skill of change management. However, getting to the heart of what makes change work lies in an all too familiar acronym writes...
In an industry that moves as rapidly as field service often does, it is important to have a firm grasp on the nuanced skill of change management. However, getting to the heart of what makes change work lies in an all too familiar acronym writes Martin Summerhayes...
Apr 01, 2019 • Features • Astea • KPIs • management • CHange Management • Customer Satisfaction and Expectations
In my role as Managing Director EMEA with Astea I speak to a lot of field service professionals. As is the nature of our industry, these folks come from companies of all shapes and sizes and from many different industries – which can lead to many varying, often highly nuanced views as to what ‘service excellence’ is.
For some of our customers ‘speed of response times’ may be key, for others it’s ‘first-time-fix rates’, for others still it may be ‘effective time’.
However, looking back on the conversations I’ve had across the last twelve months, there is one constant challenge pervasive amongst field service organisations. Indeed, I’d go as far as saying that across the board, service leaders are facing a new reality that can be summed up in one word - change.
Ours is Not a Sector That Stays Still For Long
The field service industry is not and never has been, one for ever standing still too long. Remember, ours is the industry that was sending data back from the field long before the likes of Apple and Samsung had put the internet in everyone’s pocket and the best-in-class companies in our sector today are often those who innovated their way out of the global financial crisis in 2008 by placing their service offerings at the heart of their solutions.
So it is through a lens of confidence and anticipation that I look now at our industry once more going through widespread change.
We are witnessing significant change in many core areas of field service at the moment, including changes in our workforce structures to include more short-term labor. Even the very role of the field service engineers themselves is rapidly evolving as more emphasis is being placed on quality customer interactions that lead to higher customer satisfaction and hopefully, higher shareof-wallet.
The service engineer has historically been the relationship managers since they have the most one-on-one time with the customer. Now companies are putting formal training in place to ensure technicians have the right customer service skills and the right mind-set for being the brand ambassadors. And field service technology is helping companies make this shift by adding checklists that can guide technician behaviour through things like upselling and cross-selling initiatives.
"I look now at our industry once more going through widespread change..."
As I mentioned at the top, different companies will prioritise different KPIs according to their own internal goals and targets. Yet, one thing that we at Astea are seeing across all service related industries, is the ever-increasing importance of customer satisfaction. This is where field service organisations can find a real competitive advantage.
In a world of digitalisation, Artificial Intelligence and automation, the field service call represents something that is becoming a rare and hugely valuable commodity – genuine face-to-face interaction with customers. In today’s service economy, this is an opportunity that cannot be overlooked.
One KPI To Rule Them All?
Customer Satisfaction is increasingly becoming the KPI for field service organisations, and it is not just for the more abstract concepts within business strategy such as brand perception either – there are very clear, tangible economic reasons why field service companies should realign their KPIs more towards CSAT as opposed to more traditional operational KPIs such as First-time-fix or mean-time-to-repair. For example, for those working in business to consumer verticals, I would point to research published in the Harvard Business Review that revealed that consumers who receive the highest standards of service spend 140% more than those who receive the poorest service, whilst data from
American Express revealed 86% of consumers will pay more for better service. The bottom line is that better service means better revenue opportunities. However, a focus on CSAT KPIs isn’t just for B2C companies, it is just as vital in B2B sectors also. For a start, the lines for service in both segments are continuously blurring as the bar for high quality service continues to be raised in all sectors. But once again, there is also a wealth of data to support the argument for focussing on CSAT for B2B organisations. For example, research by Bain and Company shows that just a 5% increase in customer retention will typically see profit increases of anywhere between 25% and 95%.
Besides guiding technician behaviour, there are other ways that field service management (FSM) platforms can help companies prioritise CSAT, including self-service web portals and mobile apps where customers have more visibility and control over their service relationship. Other ways FSM platforms can help is giving companies the ability to communicate with customers in modern ways that are more often seen in B2C relationships. For example, automated workflows can easily be set up to send text messages or email alerts letting customers know about a change in a service order status.
It’s clear that we are entering an era of new opportunities. Of course, in such times the challenges can be daunting and discussions of how to move forward are often complex. This is why I’m looking forward to hosting a series of round tables at this year’s Field Service Summit in Warwick, where I intend to dig deeper into the changes the field service sector is heading through and how we can embrace them.
John Hunt is Managing Director EMEA at Astea
Dec 18, 2018 • Features • Management • Software & Apps • NPS • Paul Whitelam • CHange Management • ClickSoftware • field service • field service management • field service software • field service technology • Service Management • appointment booking • Live Traffic Updates • Customer Satisfaction and Expectations • Managing the Mobile Workforce
You’ve probably been hearing a lot about new trends and visions for the future, and it’s probably a little overwhelming. An easy way to get started is by throwing away some of the outdated practices you’ve been following. To help you out, we’ve compiled a list of field service practices you might want to leave behind in 2019.
Manual scheduling
Field service scheduling requires making several quick and calculated decisions. You need to consider everything from travel time and routing, technicians’ schedules and skill sets, equipment tracking, and SLA compliance. It’s much easier to rely on an automated scheduling solution to make optimized decisions for you, so you can focus on the bigger stuff—like your customers’ satisfaction.
Using separate solutions
The only way to gain true visibility into field service schedules is to manage everything in a single solution. This includes schedules, capacity planning, long- and short-cycle work, crew allocations, and more. Limiting field service management to a single solution also gives you the flexibility to manage your workforce more efficiently and ensure that you’re equipped to handle urgent work.
Not prepping technicians for customer service
Your field resources are often the only face-to-face contact your customers have with your company. This means it’s crucial they are equipped to give the best customer service possible. Start thinking of your technicians as your brand ambassadors, and ensure they have the soft skills to make a great impression on your customers.
Lack of visibility into technician location
With Uber you can hail a ride and know exactly where your driver is and when they will arrive. And Amazon provides updates when your package is shipped and as soon as it’s delivered. Your customers know this level of visibility is possible, and they expect it in their service too. Allow customers to track their technician’s location and send them reminders and updates about the status of their service. On top of giving your customers’ peace of mind, this also helps you avoid no shows and last minute cancellations.
Long Appointment Windows & Exact Time Slots
According to our Field Service Report, more than 60% of consumers across all countries said a long wait time between their service appointment being booked and carried out led to a bad customer service experience. It’s no surprise because today’s customers expect service fast, and definitely, don’t want to be waiting around all day to get it. Use optimized scheduling and appointment booking to ensure shorter, two-hour service windows for your customers.
Leaving the customer site before booking a follow-up appointment
Sometimes a repair is more complex than originally thought or a technician doesn’t have the right part to complete a job. When a follow-up appointment is needed, don’t leave the customer site until it is booked. Instead of simply ordering a part and asking the customer to call and schedule when they receive it, do it for them. The customer will feel more at ease knowing that even though the problem wasn’t fixed today, it will be fixed as soon as possible.
Not measuring customer effort score
When it comes to measuring customer experience, the Net Promoter Score (NPS) and customer satisfaction (CSAT) scores are usually the go to. But in today’s on-demand world, convenience and ease are becoming more and more important to customers. Many organizations have started measuring customer experience by the amount of effort customers are putting into getting an issue resolved. Add this to your list of KPIs so you can ensure future customer engagements are simple and seamless.
Not using live traffic updates
As customer expectations continue to rise, the importance of route optimization and getting resources from place to place is ever increasing. Many organizations are taking advantage of predictive travel and applications like Google Maps to accurately estimate travel times and plan routes ahead of the service day. However, it’s also important to consider real-time, live traffic updates on the day of service to account for unforeseen traffic and roadblocks.
Leaving out change management
When your service team has been doing things a certain way for several years, bringing in a new solution can be overwhelming. Even if the previous solution was inefficient or completely manual and paper-based, change can be scary. When implementing a new field service management solution, it’s important to get everyone on board and comfortable with the new solution—so don’t skip out on change management. Emphasize the benefits of FSM—such as efficiency, cost savings, and customer satisfaction—and make sure everyone is properly trained on using the solution.
While no one can know exactly what the field service management landscape will look like in 2020, it’s safe to expect increasing customer expectations and new technologies. Start preparing your organization for what’s next today.
Be social and share
Nov 01, 2018 • Features • Paul Whitelam • CHange Management • ClickSoftware • field service • field service management • field service technology • Service Management • Software and Apps • Field Technologies • Managing the Mobile Workforce
In the early part of this century we have seen huge technological developments impact field service management and increasingly technology and service delivery have become entwined - but investing in the wrong technology can be an expensive mistake,...
In the early part of this century we have seen huge technological developments impact field service management and increasingly technology and service delivery have become entwined - but investing in the wrong technology can be an expensive mistake, Paul Whitelam, VP Product Marketing, ClickSoftware outlines how we can ensure we avoid such pitfalls...
As we count down to 2020, companies are considering how to prepare for the next decade and get a jump start on the future.
There are many exciting technologies about, which offer much promise. In field service management,
where there is serious complexity that raises the stakes for any technology investment, it’s important these promising avenues realize their potential sooner rather than later.
But investing in new tech doesn’t guarantee its potential will be fully realized. It remains within the purview of the tech buyer to ensure the business extracts maximum value from new technology.
Identify Opportunities for Improvement
Understanding your business strengths, weaknesses, and technological maturity is prerequisite to any exploration of new technology.
Have you outgrown an existing solution and need greater sophistication, or are you limited by processes rather than technology?
"Knowing your biggest obstacles and inefficiencies is the starting point for any tech conversation..."
Knowing your biggest obstacles and inefficiencies is the starting point for any tech conversation.
Are you able to measure everything and set benchmarks for desired performance? You will need to in order to have a productive conversation with a vendor.
For example, if you know you want to reduce windshield time rather than mileage this creates different requirements for a routing solution and what methodology it uses to map routes for service workers.
In organizations new to field service management solutions, there might be a lack of sophisticated measurement and benchmarks.
If you are moving from spreadsheets and manual paperwork for the first time, the leap can seem daunting. But this is the perfect opportunity to put prospective vendors to the test and use their expertise to source measurement frameworks, benchmarks, and best practices—then hold them accountable for delivering.
Invest in Outcomes, Not Products
Anyone trying to sell you a hammer will characterize your problems as nails, regardless of their nature. Once you’ve understood your challenges, you can articulate desired outcomes that can define the required capabilities for a solution.
The underlying technology is not irrelevant, but how it’s utilized is most important, and to what end.
Imagine you want to speed up response times without adding staff.
This will require the ability to schedule and dispatch workers automatically—with zero touch.
This could lead you to AI-driven automation and keeps the horse before the cart. The desired outcome first, tech and methodology second.
Whether your ultimate aim is to reduce costs, increase revenue, or improve customer experience, it should be clearly stated and technology agnostic.
Don’t let shiny new technology give you the old razzle-dazzle—you’re in the business of getting real work done—drive every conversation back to outcomes and proof.
Incorporate Change Management
New and innovative solutions can fall short of their promises if not wholly adopted by your workforce.
Even the best solutions can fall flat if your team is not on board.
Many field service organizations save money by using augmented reality wearables to remotely assist junior technicians on advanced jobs.
A senior technician can provide the expertise and guidance without having to travel. This sounds like a great idea to implement until you realize senior technicians are uncomfortable with the technology and prefer to use phones or to be dispatched to the job themselves—at a higher hourly cost.
"When talking to your technicians, extol the benefits of the change from their point of view, rather than the potential..."
Ensuring your new process and field adoption line up with your vision requires an early focus on change management and communicating with all levels of your service organization.
When talking to your technicians, extol the benefits of the change from their point of view, rather than the potential. They’re more likely to buy into an idea that impacts their work positively.
Have a plan for communicating with, training, and reassuring your workforce about what’s in it for them.
Looking ahead, make sure you recruit employees who are technology friendly and are eager to learn and use the latest and most advanced solutions available.
Automation, machine learning, real-time traffic based routing, and augmented reality all have practical applications in the field today.
Just as the technologies of yesteryear that they’re succeeding, these are simply tools to enable the job field service workers have always done.
To capitalize on their potential, whether you’re considering an upgrade, a process change, or purchasing a new solution, remember to lead with your biggest challenges, define your desired outcomes, and ensure your team is excited about the coming changes.
Be social and share
Feb 21, 2018 • Features • Management • Continuous Improvement • Jan Van Veen • management • Volvo Penta • CHange Management • Vase Study
Jan van Veen, Managing Director, moreMomentum interviews Seva Gavrilov, Market Unit Director, Russian of Volvo Penta
Jan van Veen, Managing Director, moreMomentum interviews Seva Gavrilov, Market Unit Director, Russian of Volvo Penta
Volvo Penta is a global, world-leading supplier of engines and complete power solutions for marine and industrial applications. Their comprehensive, reliable solutions have helped customers all over the world increase productivity and performance – in every detail. By continuously improving their offer, through innovative, sustainable power solutions and the strengths and expertise of the entire Volvo Group, they have redefined premium for the modern market, operating entirely through their independent dealership network.
Seva Gavrilov joined Volvo Penta 22 years ago and took over leadership of the Russian business in 2007. He has always had a passion for nautical engineering, having graduated from the Marine Technology University in St Petersberg as a Naval engineer but also as a visionary with a head for business. Now, he is leading Volvo Penta through a programme of initiatives that are giving their dealerships a competitive edge, more momentum and increasing the company’s market share.
moreMomentum believes, as a result of our research, that successful long-term managers and companies have established ‘Momentum’, starting with 4 Winning Habits – Direction, Dialogue, Decision-making and Discovery. In this series of Momentum Case Studies, Jan van Veen, co-founder of moreMomentum, interviews proven managers across the globe who are successfully implementing the 4 Winning Habits to lead innovative, energised and engaged teams.
Challenges facing Volvo Penta Services in Russia
In the early 2010’s Volvo Penta decided its route to increased growth was through the large corporate fleet owners such as the shipping and oil companies who controlled significant purchasing budgets. A major obstacle to this goal however was the dealer network that had created Volvo Penta’s success to date. At that time, the dealers saw each other as competitors and lacked trust. When it comes to corporate customers, many dealers are smaller local companies which do not have the resources, skills or confidence to respond to large-scale bids and service contracts. They lacked expertise in areas such as advanced corporate financing, project management, HR, etc. On the other hand, the larger dealers needed access to local markets for customer relationships, delivery and customer service. Seva needed a new approach to dealerships.
The Strategy
An obvious solution would have been to consolidate the dealers into a smaller number of large companies that could cope with the large deals, but in a large country like Russia that was impractical – they needed to keep access to small local areas. Instead, Seva created a strategy that would do two things: reverse the company’s focus so it put customers/fleet owners first and also encourage collaboration between the dealers instead of competition. All this could only be achieved by influence, to change how the dealers worked with each other, so a new environment of trust and co-operation could be built. The strategy was planned out over several years and introduced step-by-step so as not to scare people, but take them along on the journey.
Here we will show how Volvo Penta in Russia demonstrated each of the 4 Winning Habits in the implementation of its plan, creating momentum for long-term sustainable success. The strategy shows that momentum can start in highly competitive environments or even in other companies, elsewhere in the value chain, when the 4 Winning Habits are employed.
Direction – the common cause that everyone can get behind
Seva needed the dealers in the network to see the value in each other instead of just competition. Each had different strengths and skills that could be of use to the rest and enable them to reach and respond to more varied customers. This goal of collaboration was the direction driving the programme, although the dealers didn’t necessarily know it in the beginning. They soon realised however that along with collaboration come happier customers and a reduction in stress levels.
Dialogue – open discussion at and between all levels to encourage new ideas
The Volvo Penta annual dealer conference had always focussed mainly on reporting and products, so it was attended by dealers’ more junior managers. Starting in 2012 however, the agenda was changed to focus more on communication. It started with simple steps such as roundtable discussions that let the dealers identify common opportunities and solve common problems by themselves instead of with Volvo Penta’s intervention. Whereas before they would often blame each other, open discussion now started even on contentious subjects such as price wars. In the second year, Seva provoked discussions to create a realisation that collaboration was possible and even desirable. He made them think for themselves how it could work and what the benefits would be, and they produced 30 benefits of sharing resources (e.g. specialised mechanics, financial experts, parts, knowledge, etc).
The focus of the conference shifted to strategy, and with added training on subjects such as finance, communications, leadership and finding solutions from conflicts, it attracted more senior delegates as it was seen as a decision-making forum. From the third year, the dealers created their own agenda which has gone on to strengthen trust and collaboration.
It shows that once people start to talk they also start to trust and then solve issues which were critical but difficult to solve before - Seva Gavrilov, Volvo Penta
To support the new collaborative approach, Seva improved the bonus scheme to reward dealers who contributed to the success of the group. Now, only 30% of bonuses are sales driven, the rest being based on competencies, skills and as a reward for sharing resources. There is even an extra bonus that dealers can award to each other as thanks for assistance. Since bonus levels also define the next year’s discount they are extremely valuable and sought after.
Decision-making – local decision-making empowerment
As a result of the new open environment, the dealers have taken it upon themselves to support each other. The smaller dealers, that used to rely on discounting, are now being ‘lifted up’ and actively supported by the larger ones. They’re not only a source of leads but can keep local customer relationships going and provide local provisioning in regions that would otherwise be too costly. Dealers are now regularly sharing mechanics, knowledge, financial expertise, etc.
In order to reinforce the new culture, the top six dealers voluntarily withdrew themselves from the annual ‘Best Dealer’ competition for four years, making the rest more motivated to win. Now, the competition is much tougher and the winners are more representative of the whole dealer network.
In addition, the four largest dealers joined forces to mutually fund and develop new management reporting software, connected to the accounting systems, to measure daily performance against targets. It provides a report on sales, customer satisfaction, parts, etc. Soon it will be rolled out across the entire dealer network, meaning common standards and quality for the big fleet customers.
If Volvo Penta had developed the software it would have been more expensive and created resistance. Because they did it themselves they made it in the way they wanted and paid for it themselves. I expect the roll-out to be quicker than if Volvo Penta had done it - Seva Gavrilov, Volvo Penta
Discovery – Looking for new external trends, opportunities and threats
The conversation with customers has changed. Dealers are less and less seeing themselves as just parts suppliers and breakage fixers. They are looking for other values such as budgeting, parts supply forecast, telematics and other service solutions.
Having in mind shared resources, dealers now know they can provide better service to customers than before. This also opens up opportunities which dealers were not able to afford before such as better payment terms to customers, quicker service, etc. Some dealers have also started to open branches in remote areas as they see them as opportunities rather than cost.
Next Steps
The next step in the programme is to develop higher levels of customer service, to create such a good feeling about the brand that the people in customers and dealers feel proud to use Volvo Penta products. Their relationships will grow into trusted partnerships where the smallest to largest customers can be open to changing market conditions and challenges they see approaching.
The group HQ in Gothenburg, Sweden has been watching Seva’s programme carefully and has already implemented some similar ideas internationally. Since the company is in a transition period from being largely product and dealer focussed to Customer focused, Russia’s key message is to enforce the shift to end-user benefits. Improvements in change processes, complaint handling and collaboration between groups such as sales and service can make huge improvements.
Beyond that, Seva wants the dealers to think about why they are in business in the first place. He wants them to make so much money that they spend more on their life, to make a better world for themselves and the people around them. - Seva Gavrilov, Volvo Penta
It’s important to make the connection between profits and common social values and that will be the subject of the next conference. Money and profits are only the intermediate result, there are more objectives behind it.
What will they do with their profit? What is the bigger game? What is their direction?
Be social and share
Feb 17, 2018 • Features • Management • Jan Van Veen • management • moreMomentum • Motivation • Business Improvement • CHange Management • Service Innovation and Design
Jan Van Veen, Managing Director, moreMomentum, continues his exclusive series for Field Service News exploring the ‘4 Winning Habits of Long-Lasting Achievers in Service’ and looks at the importance of the third winning habit: Decision-making.
Jan Van Veen, Managing Director, moreMomentum, continues his exclusive series for Field Service News exploring the ‘4 Winning Habits of Long-Lasting Achievers in Service’ and looks at the importance of the third winning habit: Decision-making.
Common mistake: Dismissing employees to take ownership
During the last decades, if not centuries, it became a habit to have all important decisions in companies made at top management levels. The assumption traditionally is that this is where the skills, expertise and overview are to make the right decisions. The aim was to increase control, predictability and stability. This used to work fine in most sectors as they were fairly predictable and stable.
However, a lot has changed. Lifecycles of products, services and markets are shorter, changes are quicker, new trends and the future are less predictable, and the complexity of running a business has increased dramatically.
In more industries, companies are suffering from lack of adaptability and agility and falling behind the competition.
Here are a few symptoms we see from the traditional top-down management habits:
- Someone in the lower ranks who sees a threat or opportunity and wants to act on it first needs to discuss this with higher rank management to get their approval and buy-in/decision. There is a challenge that many initiatives face for the attention and favourable decisions from top management. These politics can be frustrating for employees.
- The time of decision-making by higher management is becoming scarce in the critical path for most initiatives. Necessary decisions are being delayed or being made without the attention required.
- The quality of decision-making suffers from inadequate information. Observations and information about threats and opportunities do not flow through the organisation quickly and accurately enough.[/unordered_list]
The solution: Unlock the huge decision-making power throughout the organisation
Leading companies have tremendous power, speed and responsiveness due to the following effective habits on decision-making:
- Top-down and bottom-up strategies and roadmaps
- Effective and efficient decision-making
- Full transparency
1. Top-down and bottom-up strategies and roadmaps
Maintain an overall strategy and roadmap
The overall strategy and roadmap defines the changes required in different phases to achieve the envisioned future. It clarifies the focus and ballpark figures on key metrics towards the envisioned future. This provides a clear picture of the direction required for all entities of the business to shape their own role, contribution and strategy.
Typically, the leading companies have competence centres for various topics which provide best practices, frameworks, benchmarks and advice to the entities in order to develop and execute their strategies.
Each entity has its own strategy and roadmap
Based on the overall strategy and roadmap, each division, subsidiary and department maintains and executes its own specific strategy and roadmap. They own their plan and are fully accountable for the progress and results.
Larger organisations have a cascade of several levels of sub-strategies, which can contain dozens or many more sub-strategies.
Focus on “new”
Within most successful companies, the strategy and roadmap is about moving towards the future. It’s about doing new things and doing things differently in order to achieve new performance levels and future success. An excel-sheet with numbers, for example, does not achieve this purpose on its own.
2. Effective and efficient decision making
Many business leaders fear that decentralized decision-making leads to chaos and that control mechanisms are needed to prevent this. Most companies still use traditional “plan & control” mechanisms which require complex, expensive and time-consuming coordination systems.
The following practices ensure that decentralized decision-making is powerful and secures performance;
Structure of decision making units
Every team fits in an overall structure of roles and responsibilities with clear objectives. Each team develops, maintains and follows their own strategy which contributes to the overall strategy and roadmap.
This provides clarity to everyone who decides on what, and how, decisions relate to each other.
Decision-making protocol
Every team follows a decision-making protocol which provides guiding principles and rules on;
- How autonomous the team is for the different domains that make decisions
- How to align with other stakeholders
- How to handle objections from stakeholders, depending on the impact this might have for other stakeholders and/or the organisation as a whole
- When decisions have to be handed over to other decision making units[/unordered_list]
Some decisions hardly have an impact on other teams and can therefore be made autonomously.
Other decisions have a minor impact on the work of other teams. These other teams are informed about the decision, how this will impact them and how they are expected to adjust. The other teams provide feedback and suggestions, however it remains up to the deciding team how they incorporate the feedback and suggestions.
Some decisions could have a major impact on other teams or the organisation as a whole. For these decisions, there is a protocol in which other stakeholders can raise objections that need to be processed adequately. In some cases the decision has to be handed over to another team who has the responsibility of the bigger picture.
3. Full transparency on performance and financials trigger crucial initiatives
In many organisations, the flow of information is limited because of lack of information systems, defensive behaviour, limited willingness to openly share and too little interest in the overall picture. As a result, people miss opportunities and make wrong decisions. This reduces collaboration and initiatives throughout the organisation and increases resistance.
Constructive and well informed dialogue, strategy development and decision-making require that everyone has the same, and adequate, information about results, failures, progress, opportunities, threats, trends and practices.
Leading companies are transparent about the following:
- Financial figures of the entire business, as well as the different entities
- Progress of projects and initiatives
- Challenges or issues they are facing, including failures
- Customer feedback
- Decisions
- Practices or processes[/unordered_list]
Benefits
The benefit of encouraging decision-making throughout the entire organisation is that, on all levels in the organisation, teams and employees have engagement and ownership. They aim higher, pursue more opportunities and achieve more. Decision-making is faster, more responsive, has higher quality and is executed quicker.
The result is that the business is more adaptable to changes and therefore performs better today and will also perform better tomorrow and further in the future.
The Essence
If we think that it’s about control, stability and predictability, then we’ve missed the point! It is about thriving in a changing and unpredictable world, full of opportunities that we need to discover. It’s about passionately exploring, developing, learning and discovering what works, and what doesn’t work.
‘Magic’ happens when you bring together business innovation and employee development and empowerment.
How well has your business adopted the 4 Winning Habits?
Discover your momentum for innovation and change with the online Momentum Scorecard find out more @ http://fs-ne.ws/mpKJ30ibWsb
Be social and share
Leave a Reply