ARCHIVE FOR THE ‘management-2’ CATEGORY

Jan Van Veen continues his latest exclusive Field Service News series on how companies can monetise their services and data by exploring how companies can remove the obstacles that are stopping them build momentum with their clients...

 

---

Catch up with the previous articles in this series How to Monetise Services and IoT and How To Monetise Services And IoT: Better Articulate Value now! 

---

 

Central question

Many manufacturers experience pressure on growth, revenue and margins.

Their products and services are being commoditised. Competition from lower cost alternatives are arising. On the other hand, there are huge opportunities with new technologies, value propositions and business models.

One of the important trends is that value proposition and offerings become more data-driven and more service-oriented. However, many manufacturers are product-driven businesses which do not fully appreciate the value that service has for their customers and own business.

So, one of the central questions is: How to Monetise Services and Data in order to Grow in a Disruptive World? The capability to monetising service and IoT is mission critical for sustainable performance and existence of manufacturing.

In a series of articles, we cover 4 critical steps that make the difference between success and failure in monetising Services and Data:

1. Solve bigger customer problems, which is about creating significantly more value for customers. 
2. Articulate the value
3. Build momentum with clients to adopt
4. Build internal momentum for monetisation

 

Common mistakes

Too often we see that with (new) services, the new solutions and features we launch are not always that easy to start using for our clients. If the obstacles to adopt are too big and not solved, less clients will use it or will delay using it significantly, and in the meantime will not see the real value, in turn creating more obstacles and resistance, resulting in limited commercial success.

If you encounter such signals, it may not always be easy to get a clear picture whether;

1. Your clients simply do not have the problem that your solution is trying to solve
2. Your solution is not adequately fixing the problem compared to other solutions
3. There are serious constraints in applying your solution, even if it is a good solution

So, caution is advised in these situations not to jump to wrong conclusions.

For the sake of this article, let us assume 1) and 2).

The obstacles in applying your solution can be categorised as follows:

 

Lack of money

The new solution you are offering appears to be too expensive for your client.

It is seen as too big an investment and/or recurring cost in relation to the value they perceive will be received.

It could be that the issue is more related to the perception of the value, how well that has been articulated (see previous article on ‘Better Articulate the Value’) or that you are not talking to the right decision makers in your client’s organisation.

 

Lack of skills

Using the new solutions are too complex and difficult for your client, as they are complex to use and require a lot of training to acquire the necessary skills.

 

Lack of access

Often, the new solutions can only be used and generate value in certain circumstances.

Commonly overlooked is that applying the new solutions and receiving value from it, often requires:

• A significant change in the way of working by staff, which triggers too much resistance
• A significant overhaul of the processes and information flow
• A change in the structure of the organisation and roles, with some staff even losing their role/ job

 

Lack of time

For many new solutions, it takes time and effort to make sure they are adequately used and embedded in the organisation. If the pressure from daily business and other projects is high, it easily happens that adopting the new solutions is put on the back burner and falls off the radar.

 

Risk

In essence, there could be two main sources of perceived risk:

• The risk that the solution does not work as expected and hence does not bring value
• The more social risk of sticking out your neck for change which might not be accepted by stakeholders
• Too often we focus on the technical part of our new solution or features, and do not give other client needs and obstacles enough consideration,  when:
• Gaining customer insight into their bigger problems
• Developing a remarkable solution to solve these bigger customer problems
• How and with whom we discuss the client problems, and promote and sell our solutions

An interesting example is a major metal wholesaler that is looking into adding extra value to industrial clients by not only offering standard trade sizes, but other services too.

They also offer services like cutting, drilling, bending and even picking packages for direct delivery into different locations in the manufacturing  for their clients. This really solves a lot of challenges for low-volume high-mix manufacturers.

However, using these services means that equipment and people doing the pre-manufacturing work becomes redundant or they have to change their role. It also means inventory goes down, which changes the (perception of the) stability and contingency in the production line, depending on an external party.

The result was that initially most clients did not buy the new offerings, regardless of the well-articulated (financial) benefits and business cases.

At some point, stakeholders started doubting the potential of the added value services and whether to abandon the initiative or not.

 

Some practical solutions

Manufacturers that are quite successful in launching and growing customer adoption of the new solutions and features, have the following good practices:

1. The have a broader view on the bigger customer problems and challenges beyond the functional requirements of equipment. They better understand the operational and change challenges and therefore have a more integral view on what it takes to improve on these problems and challenges. Important obstacles are included in the design instead of as an afterthought.

2. They develop a more concrete and remarkable solution to solve the bigger customer problems. Where needed, the obstacles (in using the new solutions) are already designed into the solution.

For example:

a. They focus more on simplifying the solution, making it easier to use with less training and implementation effort for their clients.

b. Their solution is more than a technical solution and includes support in implementing and maintaining a new way of working.

 c. They offer an ascending engagement model in which customers step-by-step can implement and use portions of the overall solution. This way they can mitigate risk, reduce the change challenge and allow their organisation to become familiar with the new way of thinking and working. Simplify the solution and ease of use.

 

3. They involve the right stakeholders in the client’s organisation – who have a stake in the problem being solved, in the decision-making phase and in the implementation phase.

Further to the metal wholesaler example above, the next steps of the added services portfolio were to:

• Organise open workshops for clients, discussing trends and changes in the sector, and some best practices and success stories.
• Workshops with the client’s key stakeholders to get a full picture of the journey of maturing their manufacturing operation, supply chain, plant layout, equipment, competencies and people. And then use the information to develop a road-map on how to step-by-step develop. It also helped to get stakeholders on the same page and engaged.
• Provide project management and change management practices and resources.
• Organise pilot tests, get used to new ways of working and building trust.
• Offering ongoing performance management dashboards to get full visibility and transparency of performance, progress and issues. This helped preventing blame for every incident, and also helped to feed a continuous improvement programme.

 

The Benefit

Manufacturers that are better in building momentum with their clients to adapt to their new solutions, see that their customers fluidly adopt new solutions and have a fairly high pace of scaling up.

Hence, these manufacturers generate more new revenue streams with higher margins and differentiate more from their competition.

 

Give monetisation of Services and Data an Impulse

If you want to accelerate the monetisation of your (new) Services and Data, join our upcoming Impulse Sessions on “How to Monetise Service and Data”.

These are full day interactive meetings with like-minded peers during which we will exchange experiences, insights and challenges.

Book your seat @ http://fs-ne.ws/5gyg30mWzze

 

Essence

Our value is not only in the developing and offering of great solutions to our customers’ big problems, it is about how our clients use and benefit from our solutions.

 

---

 Jan Van Veen is founder of MoreMomentum 

---

 

Be social and share...

Oftentimes field service directors and managers can see the importance of investment within a dedicated Field Service Management (FSM) ahead of their colleagues in the boardroom. In this series of articles Kevin McNally, Sales Director, Asolvi outlines how to build a case for investment to drive your field service operations forwards.

In the first instalment in this series, we looked at how FSM systems can deliver easy Return on Investment. Now we look at how investment in FSM solutions can help you achieve better staff retention.

 

---

Is building a case for investment in FSM a key topic for you?! There is a full white paper on this topic available to fieldservicenews.com subscribers. Click the button below to get fully up to speed!

---

Sponsored by:

---

Data usage note: By accessing this content you consent to the contact details submitted when you registered as a subscriber to fieldservicenews.com to be shared with the listed sponsor of this premium content who may contact you for legitimate business reasons to discuss the content of this content.  

---

 

Not too long ago we lived in a world where things were expensive and labour was cheap. That dichotomy in most regions of the world has now pretty much been flipped upside down.

As it is, the most valuable asset in a field service organisation is widely perceived to be the field service engineers themselves.

Add into this the ageing workforce crisis that many organisations are facing, leading to dramatic increases in costs to replace those experienced engineers leaving the workplace across the next five to ten years, and the importance of good talent retention should definitely not be overlooked.

Neither should the positive impact that the implementation of an FSM solution that empowers your field service engineers.

Let’s now take a look of just a few of the ways that implementing a new FSM solution can help you keep your field workforce happy and staff turnover in this mission-critical operation low…

 

Offer A Better Work/Life Balance:

One of the key fundamentals of most FSM solutions is some form of scheduling solution. Often when we look at the benefits of scheduling we tend to focus on the business benefits. As mentioned above ROI is a clear selling point for investing in such a solution for example.

Yet, from the engineers’ perspective, a well-planned job schedule within their working day can be a huge positive. By utilising an FSM system you can factor in things like the engineer’s home so their work schedule across the day can bring them closer to home as they approach the final few jobs of the day.

When a field service engineer finishes their last job at 5 pm on a Friday the difference between being close to home or being stuck two hours away in rush hour traffic can have a huge impact on their work/life balance.

 

Keep Them Doing What They Signed Up For Not Endless Mountains Of Paperwork:

While there are invariably exceptions to every rule, in the main, there are some key attributes that field service managers share. They enjoy problem-solving the ability to work autonomously and solving technical or mechanical problems.

What they tend not to enjoy is the endless filing of reports and administrative tasks – which can be necessary for a business granted, but would certainly rank near the bottom of a list of tasks the majority of field service engineers relish most about their work.

Fixing stuff and solving problems is what field service engineers are paid to do and largely it is also what they excel at. Admin is not.

As the late, great Peter Drucker outlined, we are far better off focussing on what we are good at so we can become excellent in that field than trying to improve areas where we are weak – as no matter how much we focus on our weaknesses, we will only ever become average in these areas at best.

This is a major area of improvement to the engineers’ day to day enjoyment of his work that an FSM solution can bring. By automating many of the essential yet mundane admin tasks such as sending completion reports, tracking parts inventory in and out of their van stock, or even sending invoices – the engineer is able to focus on what they do and enjoy best.

 

Make The Engineers The First-Time-Fix Hero:

Our field service engineers are the frontline of our businesses and very often the most frequent face-to-face interaction that your customers’ may have with your organisation.

As such when things go wrong, it is your engineers who are in the firing line.

The flipside of this, of course, is that when things go right, they may as well walk out of your customer’s premises with a cape around there neck and their pants on outside there trousers – the standard uniform for every superhero who has just saved the day.

It is fairly self-evident which of these is the preferred scenario for the engineer, and a good FSM solution can help him achieve that more often in a number of ways.

For a start, an FSM solution can be harnessed to provide the engineer with all the relevant history and information available for the job he is about to undertake, including things like previous maintenance carried out, potential likely failures on the asset and even if this is a regular fault or if this is the first time service has been required on the asset.

 

 

"In addition to things like asset history, many FSM solutions can be integrated with knowledge banks, so should the issue fall outside of the engineer’s current experience, he can access detailed information on how best to tackle the problem..."

 

 

All of these pieces of information can not only allow the engineer to diagnose the issue swiftly but also to gain an understanding of how best to approach the customer – for example, if this is a regular fault that has already been repaired on numerous other occasions, then the customer may require a more delicate and empathetic approach compared to a customer who has had a more favourable previous experience with your organisation – who may be a prime target for potential upselling.

In addition to things like asset history, many FSM solutions can be integrated with knowledge banks, so should the issue fall outside of the engineer’s current experience, he can access detailed information on how best to tackle the problem.

Similarly, engineer-to-engineer communications are something we are beginning to see become included more often in FSM solutions, which can also give an engineer access to the knowledge of one of their peers who may have encountered the problem, they face before.

In fact, engineer-engineer communication can be vital in providing a support network for engineers so they don’t feel isolated and disenfranchised from the business.

Finally, you should remember that investment in tools for your engineers is an investment in your engineers – and when someone understands you are investing in them and that you do so because they are respected and valued within your organization, you will more often than not engendered much greater employee loyalty. In fact, every time you roll out a new aspect of an FSM solution you can reinforce this point simply by establishing change management champions from within your field workforce.

And if your engineers’ feel valued, you can guarantee your staff turnover will be below the average.

 

---

Want to know more?! There is a full white paper on this topic available to fieldservicenews.com subscribers. Click the button below to get fully up to speed!

---

Sponsored by:

---

Data usage note: By accessing this content you consent to the contact details submitted when you registered as a subscriber to fieldservicenews.com to be shared with the listed sponsor of this premium content who may contact you for legitimate business reasons to discuss the content of this content.  

---

 

Be social and share... 

Michael Blumberg reveals some of the key findings of the latest research into field service Scheduling and Dispatch to come out of Blumberg Associates...

A critical success factor in managing a Field Service Organization (FSO) is the ability to effectively schedule and dispatch field service engineers (FSEs).

It is about making sure that technicians arrive at the customers’ site at the right time with the proper tools, knowledge, and resources to resolve the problem during their initial visit.

First Time Fix is the name of the game in field service. FSOs run the risk of incurring additional costs and damaging their customer satisfaction any time their First Time Fix target is in jeopardy.

There’s a lot at stake for FSOs when it comes to effectively scheduling and dispatching FSEs. There are significant challenges for FSOs, particularly if many service visits are required each day, dispatching is made from a large pool of FSEs, and the FSO is financially penalized by the customer when response time commitments or Service Level Agreement (SLAs) are not met.

 

"First Time Fix is the name of the game in field service. FSOs run the risk of incurring additional costs and damaging their customer satisfaction any time their First Time Fix target is in jeopardy..."

 

Over the last 10-20 years, FSOs have turned to advanced tools and technology to automate the scheduling and dispatch process to improve this activity.

These tools range from appointment setting applications to dynamic scheduling software based on artificial intelligence and operations research algorithms.

To understand how these tools are deployed in the field as well their impact on service performance, Blumberg Advisory Group and Field Service Insights in conjunction with Timing Software conducted a benchmark study among 150 FSOs. In this article, we will examine the impact of automated appointment booking applications and dynamic scheduling functionality on performance.

Most FSOs had limited flexibility in their appointment booking process.

 

• 59% offered their customers the first available time slot while the remaining 40% provided their customer with alternative options
• Approximately half (49%) set appointments 5 days out or longer. This reflects that they have limited ability to handle emergency and/ or expedited requests.
• Less than one-third (30%) were capable of booking appointments 1 to 2 days in advance. However, nearly two-thirds (65.7%) utilized automation to help identify or locate available appointment times.
• Almost three-quarters relied on the automation supplied by their CRM/ERP software vendor.
• Less than 9% utilized a separate, best of breed scheduling solution for appointment booking, while the remaining depended on a customized system developed in-house.

 

FSOs who utilize automated appointment booking offer a better customer experience than those who do not.

There is a higher level of customer engagement because it provides the customer with options and a feeling of control when service is provided.

Companies that utilize this functionality are four times as likely to handle a 500 or more service requests per day and experience a higher FSE to Dispatcher ratio that those who do not.

The second step from booking an appointment is the actual scheduling of FSEs.

 

• One half assigned FSEs to customer sites based on their skill set, availability, and proximity.
• Remaining 50% either determined the schedule for their FSEs by dispatching the same FSE to the same site every time or assigned the same FSE to the same site having the FSE determine their own schedule.

 

Two-thirds of survey respondents utilized an automated process/system.

Approximately half (51%) used software that contains some type of algorithm which optimizes scheduling based on specific criteria (e.g., cost, travel time, etc.) or pre-defined factors. Less than one-third (31%) have a scheduling system on a rules-based engine. The remaining 17% have an AI based system that improves their scheduling process based on dynamic variables.

 

"FSEs who use automated scheduling software are 47% more likely to complete 5 or more service visits per day..."

 

The use of automated scheduling software has several benefits to FSOs. Our survey results indicate companies who utilize this type of software are 45% more likely to handle 100 or more service requests per day.

They are also 39% more likely to experience an SLA compliance rate of 90% or higher. In addition, they are twice as likely to have FSE rates of 85% or higher.

 

Furthermore, FSEs who use automated scheduling software are 47% more likely to complete 5 or more service visits per day.

Our findings suggest that appointment setting functionality plays a critical role in improving customer experience, increasing service productivity, and operating an efficient dispatch centre.

Automated scheduling software provides measurable improvements with respect to FSE productivity and efficiency. In the last year, 99% of FSOs surveyed incurred a financial penalty or were required to provide a customer rebate for missing SLA/response time targets. Almost half (45%) missed these targets more than 24 times last year.

The use of advanced tools and technology like automated booking and scheduling software will have a significant improvement in reducing or eliminating the frequency of these occurrences.

 

---

Be social and share...

Oftentimes field service directors and managers can see the importance of investment within a dedicated Field Service Management (FSM) ahead of their colleagues in the boardroom. In this series of articles Kevin McNally, Sales Director, Asolvi outlines how to build a case for investment to drive your field service operations forwards.

In the first instalment in this series, we looked at how FSM systems can deliver easy Return on Investment, in part two we explored how investment in FSM solutions can help you achieve better staff retention and now in part three we turn our attention to how the implementation of an FSM solution can improve worker health and safety.

 

---

Is building a case for investment in FSM a key topic for you?! There is a full white paper on this topic available to fieldservicenews.com subscribers. Click the button below to get fully up to speed!

---

Sponsored by:

---

Data usage note: By accessing this content you consent to the contact details submitted when you registered as a subscriber to fieldservicenews.com to be shared with the listed sponsor of this premium content who may contact you for legitimate business reasons to discuss the content of this content.  

---

 

Perhaps the easiest argument to put forward to an executive board when seeking approval for investment, aside from outlining a clear ROI, is when that investment will mean ensuring the working environments you place your employees in meets any necessary health and safety requirements.

Of course, in a field service scenario, it is not necessarily possible to control the environment in which your field workers will be undertaking their role.

Therefore, monitoring their safety and ensuring they follow all due protocols and procedures is of huge importance.

So let’s take a quick look at some ways in which FSM systems can help you keep your field service engineers and technicians safe.

 

Geo-Fencing And Lone Worker Support

One reason field service technicians and engineers are particularly vulnerable is simply the fact that they are often working alone - so should an accident happen it could go unnoticed for some time, delaying any necessary medical attention.

There are many lone worker solutions out there, but it is optimum if you can identify a solution that can integrate into your wider FSM system so it can take a data feed of where the engineer is scheduled to be at any given time.

In fact, once that data feed from your scheduling solution is in place, it is possible to establish geo-fencing to make sure that should your engineer either stray outside of where they are supposed to be, or should they fail to arrive where they are supposed to be within a parameter of acceptable margin, alerts can be triggered helping to avoid potential tragedies that can arise from lone worker scenarios.

Indeed, this is one of the key areas in which the importance of the easy flow of data across your field service eco-system can be most easily highlighted – as the benefits literally could mean the difference between life and death.

 

Smart Scheduling To Ensure Your Engineers Are Safe

The next item on the list is an obvious one, and one that any good dispatcher even working without an FSM solution will pride themselves on doing – however, by automating it we can remove the potential for human oversight and error.

Many FSM systems will allow you to set clear parameters against a job during set up so that should maintenance or repair need to be scheduled then unless those parameters (such as the job requiring specific qualifications or more than one technician being required) are met the job cannot be scheduled.

This relatively simple, yet highly effective inclusion within an FSM system can ensure that the right engineer(s), with the right qualifications, are sent to the job, helping to avoid any potential health and safety issues that could result from under qualified or undermanned service teams being sent out.

 

Guide Your Engineers When Onsite To Safe Processes Every Time

Even the most experienced engineers can make mistakes – and these are oftentimes the result of simple complacency – again something that can be overcome through the use of mobile tools often found within an FSM solution.

For example, by building a checklist on the engineer’s mobile device that is built into their workflow you can ensure essential steps aren’t overlooked.

It may seem like an obvious thing for the experienced engineer to be told to switch off a core valve or even mains power to an asset before undertaking maintenance, but it only takes one rushed moment of forgetfulness on a bad day to cause an accident that could potentially be fatal.

But your FSM solution could help avoid that entirely by only allowing the engineer to begin work on the asset once they have completed the H&S checks on their mobile device.

 

---

Want to know more?! There is a full white paper on this topic available to fieldservicenews.com subscribers. Click the button below to get fully up to speed!

---

Sponsored by:

---

Data usage note: By accessing this content you consent to the contact details submitted when you registered as a subscriber to fieldservicenews.com to be shared with the listed sponsor of this premium content who may contact you for legitimate business reasons to discuss the content of this content.  

---

 

Be social and share

Kris Oldland, Editor-in-Chief, Field Service News is joined by Michael Smythe and Alice Walton from eBecs as they discuss how their clients are using their site assessment survey tool to collect key data from the field when their field service engineers are on site...

---

Want to know more? The full-length version of this video is available exclusively to fieldservicenews.com subscribers - access it now on the button below!

---

Sponsored by:

 

 

---

Data usage note: By accessing this content you consent to the contact details submitted when you registered as a subscriber to fieldservicenews.com to be shared with the listed sponsor of this premium content who may contact you for legitimate business reasons to discuss the content of this content. 

 

---

Be social and share...

In this latest of his Momentum Case Studies, Jan van Veen, co-founder of moreMomentum, interviews proven leaders across the globe who are successfully implementing the 4 Winning Habits to lead innovative, energised and engaged teams.

Here the case study examines a global leader serving the mining and oil & gas industries. Much of their recent success has come because they take services very seriously, being seen as a knowledge partner to help their customers improve operational efficiency, reduce risks and increase profitability.

The challenges faced

The company operates in traditionally slow-moving industries with large incumbent players and has become a leader by creating a strong service business which now generates a significant portion of total revenues, deepens customer relationships and creates resilience during economic downturns.

However, it has now spotted that a potentially significant disruptive threat could emerge from ‘big data’ and data analytics technologies, enabling new types of services. In the past, they would have considered taking five years to develop new equipment to be fast for the industry, but now understands that when it comes to future services, the speed of innovation needs to be higher.

Senior management is very aware that customers will move away if they see a better way of doing things, so the company must adapt if it is to stay a market leader.

The Strategy

The company has entered a period of change. To meet the disruptive threat ahead it must be visionary: to redesign itself and its culture so it can move much faster to keep ahead, enthusiastically embracing digital technologies with a focus on the end-to-end customer experience. In fact, it has to re-imagine its relationship with its customers so that rather than selling products, it provides ways to help its customers improve their operational processes and even their business models.

The company has demonstrated success from the 4 Winning Habits for Momentum so far, but now they need to take it to another level. Here we will show how they are using each of the 4 Winning Habits in the implementation of its strategy, creating Momentum for long-term sustainable success.

Direction – the common cause that everyone can get behind

The company management has recognised that, at a time of change, a compelling vision describing their role to help customers be more profitable is important to pull everyone together in the same direction. It is being spread throughout the company using both traditional townhall meetings, the company intranet as well as new digital social sharing methods such as Salesforce, Chatter and Yammer.

It helps operational messages fit into context if there is a beacon for people to move towards if there is a vision of what the company will look like in five yearVP of Service Marketing: “It helps operational messages fit into context if there is a beacon for people to move towards if there is a vision of what the company will look like in five years, what the industry will be like, what our company will be like. Otherwise, you have isolated initiatives”.

To push the new company direction, the company has been busy hiring a new CEO, CMO and CDO (Chief Digital Officer), all with experience in driving innovation. The Board understands the need for change, but the company can be a supertanker which takes time to turn. However, it is also aware that the competitive landscape can change quite quickly.

Dialogue – open discussion at and between all levels to encourage new ideas

Digital initiatives are at the centre of this company’s reinvention, so senior managers are heavily involved in steering new ideas, to get behind them and also to prevent them from breaking current business streams.

Across the company, at least 75% of targets and incentives are collective, leading to limited silo thinking between teams since they’re all in the same boat. Where there is friction, it’s usually because goals have been set too narrowly and issues fall between the silos. As a result, there is much less politics than might be expected in a large company and a higher level of transparency on performance.

This all helps create a culture of trust with less finger pointing and blame.

VP of Service Marketing: “Rather than looking for blame, people look at how to fix issues and learn from mistakes. It works well due to open dialogue. People don’t feel threatened and are not so eager to hide problems”.

Decision-making – local decision-making empowerment

The company has always had a decentralised structure. Different markets are quite autonomous and allowed to make their own local sales decisions, choosing which sales and marketing initiatives in which to participate based on market needs. This has been a successful approach so far, but staff at all levels and across the business will need to now be included in the decision making processes if the company is to continue adapting at a fast enough pace.

Discovery – Looking for new trends, opportunities and threats (internal and external)

The newly established Digital Office is a powerhouse of new ideas to add new technology to client relationships, including tools such as the Internet of Things devices and data analytics. It has been set up to operate somewhat separately from the mainstream company in order to be free from ‘business as usual’ thinking.

Companies, middle managers actually, are often quick to kill new products they see as a threat to the status quo and that’s why it’s good to have a Chief Digital Officer, tasked to create change and disruptionVP of Service Marketing: “Companies, middle managers actually, are often quick to kill new products they see as a threat to the status quo and that’s why it’s good to have a CDO, tasked to create change and disruption. We might all be comfortable with how things are today and not want to change it but I’m damn sure there’s someone out there who wants to kill our business model, and will be aided and abetted by our customers if they see a better way of doing things”.

The company has even started trying new approaches to R&D, such as hackathons.

VP of Service Marketing: “When I first heard of hackathons I have to admit I was sceptical, but from what I’ve seen they actually allow people to look at problems in new ways and get people involved who would never normally be involved, and maybe redesign the way of doing things. And for big companies, that’s what we have to do, because our competitors don’t worry about the fact we have an established base and products, they’re actually thinking ‘How can I change the industry to make money? They don’t care if it destroys our business’”.

The company has also started involving customers in its processes, for example with surveys. They keep the company honest about its achievements, drive change and allow them to spot systemic issues. The voice of the customer can be very powerful.

Next Steps:

Change is an ongoing process at this manufacturing company, but they recognise the need to accelerate the pace of change to a new level and then make it ‘business as usual’ – a revolution in the mining sector!

The 4 Winning Habits for Momentum will be key. They are working on a clearer picture of the future state of the company, to give stronger Direction to the business units and local staff for local Decisionmaking.

Dialogue with staff will improve, so personal objectives will be better aligned to the strategy and not be so focussed on purely financial targets, but also learning, collaboration and Discovery of new opportunities. If they can do all this, then they will truly be creating a revolution in mining.

Outcomes

The huge growth in the service business at the company has brought enormous benefits for their customers, made the company a trusted ‘knowledge partner’ and expertly positioned them to forge ahead into digital transformation.

People buy from them now because of the advice they give and their approach to improving their customers’ businesses. For instance, mining equipment runs 24/7/365 and downtime can cost many €100,000s per day so, they have redesigned parts, consumables and field services to reduce the time it takes to change them, so reducing costs for their customers.

Energy efficiency has been another focus, as has the charging model – customers pay for service contracts by the ton, so they know their costs in advance. These changes epitomise the innovations that the company has achieved, and there are many more on the way.

Be social and share

In a new report the British Safety Council says our understanding of changing risks to health, safety and wellbeing needs to improve, in a new report about the future of work

The public debate on the future of work has centred so far on the likely shape of the workplace and its implications for both employers and employees. There has been far less focus on what this might mean for workers’ health, safety and wellbeing. When wellbeing has been considered, the discussion has centred on the present, rather than preparing us for the challenges of the future. Yet, the impact of automation on the workplace will be more fundamental than is commonly understood, with 11 million jobs predicted to be lost in the next 20 years in the UK. As we are already seeing with some ‘gig’ working, it may undermine such basic human needs as social identity, economic security and a sense of belonging.

These issues have been examined by the Future risk: Impact of work on employee health, safety and wellbeing report commissioned by the British Safety Council from RobertsonCooper researchers. It reviews the existing literature on this subject and makes a number of recommendations. While providing an overview of the landscape of work, the report explores the changes that employers and employees are likely to experience over the next 20 years. It focuses on the risks of these changes to the health, safety and well-being of the workforce.

Professor Cary Cooper CBE, Professor of Organisational Psychology and Health at the University of Manchester, founder of RobertsonCooper, said: “We know that work is changing, which is why there is currently so much conversation about the future of work. However, we know less about the risks this might bring to the health, wellbeing and safety of employees, so it’s a challenge for businesses to prepare for this.”

The main themes explored by the report are:

• Implications of ‘anytime, any place’ work. A move away from standard work practices, hours and location will challenge the relationship between employers and their workforce. “We are currently seeing loyalty between employers and employees decreasing, which means that retaining healthy, high performing employees is even more important. Organisations of the future need to trust their employees and manage by praise and reward,“ explains professor Cooper.
• Need to build resilience. The future world of work will place new pressures and forms of stress on employees. Working alongside intelligent machines and robots, which never stop, outperform humans and are incapable of social interactions, will require an entirely different set of skills. This may strip away everything good work in traditional social environment offers employees, such as a sense of identity and belonging, as well as social support. That’s why employers will need to introduce specialist training and wellbeing programmes to help their employees gain skills that will build their resilience and help them to cope in new circumstances.
• Forward-thinking education. New jobs in partially-automated, remote or less secure workplaces may require a greater variety of ‘soft skills’, including creativity, leadership, flexibility and social skills, as well as skills related to new technology and the ability to collaborate with intelligent machines and robots. School and training bodies should start developing such skills and this process should continue beyond the compulsory education system. Such training must teach employees how to look after themselves, as well as how to take responsibility for their own health, safety and wellbeing.
• Updating regulatory systems to protect modern workers. In modern workplaces, where humans will work alongside robots, and companies operate across borders, the answer to the question of where ownership of risk lies, i.e. who should take responsibility if something goes wrong, will be of crucial importance. As employment contracts are increasingly diffuse (people in the gig economy are often not classified as workers), companies may wish to avoid the costs of sickness absence or liability insurance. The government should look at all measures to protect the self-employed and gig workers.
• Understanding future risks. These fundamental changes to work and the work environment present huge risks to employers, employees, the economy and the environment. For example, the fast pace of innovation, insecurity around employment status and a drive for efficiency are putting increasing pressure on people, which can lead to stress, which people working remotely may not be able to handle, particularly if they are older. The current understanding of these risks is poor in places. The report, while identifying the risks which have particular relevance to employee health, safety and wellbeing, calls for further research into this area.

Matthew Holder, Head of Campaigns at the British Safety Council, said: “At a time when work is rapidly changing, whether through technological innovation or types of employment, there is an urgent need to have a more strategic view on what research says about the future of work and risk, and how these two issues are related. Future risk: Impact of work on employee health, safety and wellbeing tells us that the state of this research needs to improve if we are going to take action to enhance people’s physical and mental wellbeing.

“I’m also pleased to see the report go beyond this ‘call for more research’ and make concrete recommendations how Government, regulators, businesses and the trade unions, the educational system and organisations like the British Safety Council can act today to prepare us to face the risks of tomorrow.”

The report can be downloaded at britsafe.org/futurerisk-report

Be social and share

A new management team is set to revitalise Hobart’s service division as 2018 ushers in a fresh approach to business.

The new four-strong team shares over 80-years of industry experience and includes the company’s very first female Sales Director.

MD Keith Mackie, formerly of UCC Coffee and widely credited with transforming the operations side of the business, joins Sales Director Louise Plant, previously of service specialists JLA, Finance Director, Darren Beech, formerly of Premier Foods, and Operations Director, v, who has joined from Miele.

Our task as the incoming management team is to firmly establish the division as the best in class for service supportAs Mackie comments “For many years Hobart Service has quietly gone about its business with a network of over 160 directly employed technicians delivering high quality reactive and planned maintenance to a ‘who’s who’ of customers nationwide. I am delighted to have built a team with vast experience working with high-quality corporate brands and entrepreneurial customer-focused backgrounds.

“Our task as the incoming management team is to firmly establish the division as the best in class for service support, raising awareness of our core strengths – the fact we service all makes and models alongside an unparalleled nationwide reach."

“The expertise and relationships we have built through our shared time in the industry will also be leveraged to help grow the division. Hobart Service UK is a business within a global manufacturing and service conglomerate, ITW with all the expertise, backup and resource that delivers. The division holds an enviable position in the UK market as a brand leader and is now set to take its service offering to a different level to ensure brand protection and future growth. Establishing ourselves as market leaders is a task that we take on with great excitement and enthusiasm.”

Hobart’s service programmes include year-round support; 24-hour access to technical, operator and spares information and access to 160 fully trained company-employed technicians.

Be social and share

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