Is It Better to Light a Candle Than to Curse the Darkness?

Dec 16, 2021 • Features • CEO • Dave Hart • Service Leadership • Leadership and Strategy

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.

Could Your Office Printer Be Repaired by Tony Stark?

May 13, 2021 • Features • CEO • Dave Hart • Service Leadership • Leadership and Strategy

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.

CEO’s, CFO’s and CIO’s – “Hello, is it me you’re looking for”

Dec 23, 2020 • Features • CEO • Dave Hart • Service Leadership • Leadership and Strategy

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?

Super Cars, Broken TVs and Service Excellence

Oct 14, 2020 • Features • Dave Hart • field service • Leadership and Strategy

Dave Hart is a hugely respected and incredibly well-known figure in the global field service community, in his debut article for Field Service News he offers an excellent moment of reflection field service managers would be wise to consider...

Not being an avid blogger, I did what my two kids say to me with every question I pose to them these days. ‘Hey kids my internet is down any ideas?’ ‘Google it’ comes the reply. ‘Hey kids how do you change the background colour on a PowerPoint slide?’ ‘Err have you Googled it’ comes the now all too often response.

Ahh the joys of the internet and thinking for oneself, anyway back to my blogging prowess (or lack of it). I googled ‘how to make a blog interesting’ and one suggestion was put a picture of a supercar on your blog as that will draw the attention of men, but also women. Really, who could have guessed that?

Siri is not much better, ask Siri ‘what’s the height of the Eiffel tower’ and it will respond 324 metres to the top. Ask it a more open question such as ‘why is there social unrest in Belarus’ and you get the stock answer ‘OK, here are some websites you may find useful’. Really, I might find useful??

Thus my point here, information is literally everywhere, yet its nowhere. Searching for information can take you hours and get you nowhere.

Knowing what information is trustworthy is an art form and in life it could be argued that the more experience you have the more valuable that experience would become to any potential employer. A recent HBR article suggested that by 2025 a quarter of all employees in the US and UK would be over 55 years old and this demographic is the fastest growing in almost every country. 25% of all your employees over 55 with a wealth of experience that are contributing in ways we have little understanding of, as more often than not as they get older, we honour tradition by buying them a gold clock and wish them on their way to a long and happy retirement.

INFORMATION IS LITERALLY EVERYWHERE, YET IT'S NOWHERE

After I finished college, I worked in a TV repair shop (yes in the days where TV’s were repaired and not thrown away) and a customer brought in a TV he had for 12 years. It was a Sony portable that was quite expensive when he bought it, when he returned it to the shop, he had bought it from for repair, they had kept the TV for 2 weeks and told him it was irreparable. As a last resort he had brought it into our little TV repair shop. Jim (who ran the shop) had 40 years electronics experience asked him to wait, walked into the back of the shop and started to troubleshoot the issue; it was magical watching him. He instinctively knew where to look and within 10 minutes he had soldered a new transistor into the circuit board and the TV sprung into life. He turned to me and said, “now do I charge for the 10 minutes it took me to repair this TV or should I charge for the 40 that allowed me to fix it in 10 minutes.” That day has stuck in my memory as if it were yesterday - It was nearly 40 years ago.

In the field service industry these trends are increasingly worrying as we watch valuable resources with 30,40 years of experience with skills in abundance leave companies and with it their abundance of knowledge just walking out of the door with them.

I suggest four approaches:

Ask them to consider a part time role working from home and ask them to work the triage desk or indeed on technical support. This flexible approach means they can still keep their grey matter working, they can help customers and other engineers (which all engineers love to do)
Offer part time mentoring roles where older employees can take new engineers and show them the ropes thus increasing the rate of their learning curve exponentially
Consider a learning enablement platform where you can capture their experience in blogs, videos, articles and sketches so you capture all that goodness in one place. Searchable content that’s enriched with real life ‘how ’ can be a much richer experience than just knowledge articles.
Try and convince them that the next President of the United States will either be 74 or 77 years old and they are still working, why don’t they consider staying (not sure this will be a compelling argument but hey you have to try right?)

A few years ago, Mark Zuckerberg stated that ‘younger people are smarter’ but the science shows that this is just not the case. For most people, raw mental horsepower declines after the age of 30, but knowledge and expertise — the main predictors of job performance — keep increasing even beyond the age of 80.

Employers will do well to remember that fact and act now to save all of that experience goodness whilst they still can…

(PS if you read this far, the picture of the supercar worked!)

Shaking The Tree: Disruption Hits Capital Equipment Assets (And Why That’s A Good Thing)

Oct 11, 2017 • Features • Capital Equipment • Dave Hart • IoT • servicemax • Software and Apps

Disruption has become a phrase so widely used it is in danger of becoming hackneyed, but in terms of asset maintenance, the IoT is bringing true, genuine disruption writes Servicemax’s Dave Hart...

If you had to pick a moniker for this decade, then “disruption” is a pretty good one. It’s now so pervasive that it’s almost become a cliché of itself.

Everywhere you look, from banking to music to taxis and hotels, traditional business models and markets are being disrupted. All driven by technology being applied in innovative new ways. Now it seems it’s the turn of capital equipment assets and the machines themselves to be disrupted – or at least the way we manage, use and maintain them.

Industrial downtime is no joke. Unplanned downtime in just about every industry has a significant impact. The Aberdeen Group last year reported that the cost of downtime across industries went up to $260,000 per hour on average between 2014 and 2016. That’s a huge jump with a considerable hit on any business.

Time typically isn’t kind to equipment and machines.

Most companies don’t know how best to optimise uptime availability in different conditions, such as managing volatility, meeting peak demand or managing performance in extreme conditions

As assets get older, parts need maintaining or replacing and more can go wrong. And when it does go wrong, service technicians are typically sent out on site with very little insight other than something isn’t working. On top of that, most companies don’t know how best to optimise uptime availability in different conditions, such as managing volatility, meeting peak demand or managing performance in extreme conditions. It’s an area of business that’s historically been very inefficient, and had very little intelligence or investment applied to it.

As a tech-enabled society, we are better than that. And it was only a matter of time before the wave of technology innovation and disruption made its way to changing how we optimise equipment and capital assets, and predict their maintenance and service requirements. By harvesting and applying intelligence that previously would have been impossible to obtain, companies are seeing a major step change this area.

And it’s more than just a ‘nice to have’ scenario. For most industries, margins are too thin and competition is too fierce to simply guesstimate how much capacity a piece of equipment can cope with, and it seems positively archaic to run a reactive break/fix service mentality in today’s connected age.

The reality is that the Industrial Internet offers an opportunity to intelligently manage resources and manage performance. Machines with sensors feeding back performance data provide a raw pipe of potential intelligence that needs to be woven into the business. With the right tools, organisations can use this data to develop strategies that alleviate risk.

Asset-intensive companies always strive to reduce operating risk while improving efficiency, at the same as coping with regulatory demands and workforce development.

These are key challenges that are difficult to achieve without an intelligent asset performance management (APM) approach. The more forward thinking companies also have field service management (FSM) strategies in place in an effort to streamline and automate their service departments. They are wise investments as both APM and FSM each deliver significant value in their own right.

But here’s the real disruptor: By combing these two disciplines, businesses have, for the first time, a complete suite of intelligence at their fingertips to understand potential equipment issues, and pre-empt them or act upon them quickly and efficiently with the correct tools and parts, should machinery need fixing for example.

No second guessing, no wasted investigative journeys and much lower risk of downtime.

Now take this one step further and think of a digital twin that mirrors of all your physical assets globally, giving you a dashboard that reports back to you on the status, health and performance of how each piece of equipment in each location is working. One that proactively alerts you, through intelligent APM, when action is required, and automatically takes preventative measures, through FSM, when an issue arises. Suddenly downtime looks much less of a threat.

Service businesses represent around seventy per cent of the world’s economy, yet to date, only about a third of the world’s large service businesses use just FSM solutions. They are missing a trick.

That’s because predictive analytics and work management through APM enable businesses to plan, schedule, execute and feedback on problems and solutions. Which equipment is failing or about to fail and why? What parts are needed to fix the problem, where and by whom? And FSM then automatically triggers scheduling, ordering and dispatch of a service technician if required, to ensure everything is up and running and downtime is minimised.

It’s interesting that service businesses represent around seventy per cent of the world’s economy, yet to date, only about a third of the world’s large service businesses use just FSM solutions. They are missing a trick.

A combined APM and FSM approach optimises the equipment strategy for a company, analyses the risk and cost of how often equipment should be inspected, saving money, increasing productivity and reducing risk of downtime.

So what does all this mean in real terms? By proactively optimising and managing equipment assets, business can expect, on average, a 10 percent inventory cost reduction, 40 percent reduction in reactive maintenance, 25 percent gain in employee productivity and a 25 percent reduction in total cost of ownership.

Likewise, field service management can generate an average 13 percent boost in revenues and an 11 percent increase in customer satisfaction.

Why wouldn’t you want to join the dots on metrics like those? Throw in the potential savings from reduced transport and failure rates, less downtime, plus the sustainability benefits, and you have a recipe for future growth.

Now that is compelling, not to mention disruptive.

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Time to take what your field service techs have to say seriously

Jun 25, 2014 • Features • Management • management • Dave Hart • Field Service Techs • servicemax

Dave Hart, vice president of global customer transformation at ServiceMax provides a tale of two field service companies and how listening to your field service techs is not only easier than ever but more important than ever also...

Here’s a tale of two field service companies — one that figured out how to build better products by tapping into their technicians’ on-the-ground experience, and another that didn’t and then paid the price.

First, the company that stumbled: Years ago, I worked for a manufacturer that released an update to one of its most popular products. There wasn’t anything wrong with the existing version: it was easy to use, rarely broke down and, when it did, it was simple to fix. The “new and improved” version, however, wasn’t well-designed and didn’t work as well. Our field service techs were left scratching their heads. “How could we get everything so right with one product and then so wrong with the next?,” they asked.

The lesson? Your service techs know your company’s products the best — even better than the customers do.

The reason was obvious: the research and development (R&D) teams and the service techs never spoke to each other.

Now, for a different story: A large healthcare technology company has installed a knowledge management system on the smartphones, tablets and other assorted devices its tech carry with them on the road. The techs document what they and the customers experience with the products day in and day out. The information is delivered to the company’s product development team for consideration when updating the system — or even creating a new product altogether.

The lesson? Your service techs know your company’s products the best — even better than the customers do. They are on the ground every day and hear what customers like, and don’t like, about the product. They develop an intuitive sense for what can (and probably will) go wrong.

The Power of Data Collection in the Field

Unfortunately, the story of a product rollout that didn’t go according to plan is more the rule than the exception. The strange thing is, it doesn’t have to be that way. Collaboration between field service techs and product teams, such as R&D, has never been easier. Field techs carry smartphones, tablets and laptops in the field Communication apps such as Salesforce Chatter, Skype and Apple Face Time make it simple, fast and efficient for product developers to work with field service techs.

So while companies are embracing knowledge management systems on mobile devices, they’re not capitalising enough on the information that gets collected. The operations side see the real-time updates about product glitches or common customer gripes, but the research and development side doesn’t. That’s a huge missed opportunity.

Consider the healthcare company that I described above as the exception. So far, the company has collected more than a thousand product suggestions from field workers who use its mobile knowledge management technology. Both the technical support and product teams vet the suggestions, and share the most informative ones with the rest of the company.

How Service Tech Feedback Can Boost the Bottom-Line

Here’s a basic example of how technology-enabled collaboration between service techs and product developers can improve business. Say that a product has a fundamental problem or part that needs to be regularly replaced. Field techs can often spot design flaws that, if corrected, would reduce maintenance and repair times. If a product developer can look at a product from the tech’s perspective, everyone benefits — the company, its customers and the techs who service the equipment.

Multiply that across multiple products and service calls and you start to see the time and money savings. There’s an added benefit, too: like all employees, service techs want to be heard. Giving them a strong voice in how the products they work with every day are created goes a long way toward engaging them in all aspects of the business.

The healthcare company is a prime example of how companies can tap into their technicians’ vast product knowledge. Every field service company should follow its lead.

Want to turn your Field Service division into a profit powerhouse? To download an excellent white paper including a real life case published by ServiceMax click here.