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If the key to adoption of new technologies in Field Services lies more in people than technology itself, then embedding the self-learning DNA gene must be the priority for all organisations wanting to be winners writes Nick Frank, Si2 Partners...

Previously we have observed that those field service organisations that have been able to quickly adapt to the fast evolving digital environment display a common trait “the self-learning gene”.

This is the innate ability to continually move through the problem, solution, problem, solution learning loop that propels organisations forward, such that they are comfortable experimenting with new approaches, have an outside-in perspective, are able to solve problems systematically and generally embrace change as an exciting part of business life.

There are many change methodologies that can be used to achieve this goal, but if leaders are not careful, they can find themselves hiding behind the process. It doesn’t matter if we are the CEO or on the shop floor, change starts with us ‘the person’. If we as an individual can become solution focussed, then it becomes possible to unleash the natural creativity that lies within most of our people. The good news is that most of us intuitively know the right things to do, we just struggle to implement our thoughts.

 

Perhaps harder to grasp is that there is no defined roadmap to follow, but there are guidelines, which we can apply to our particular situation. If you want to achieve a high performing, adaptive organisation through developing your ’self-learning genes’, then these are seven principals you may consider:

Communicate, collaborate and communicate again:

This is the mind-set of leadership change. Get comfortable with being out there, in front of your team providing a clear direction, but with the clear understanding that it is your team members who will deliver a great solution.

As Dwight Eisenhower US president and Army General said: “Leadership is the art of getting someone else to do something you want done, because they want to do it”

Ensure your team has a sense of purpose:

A sense of purpose is what drives us all forward in both a private and work environments. It comes from 3 perspectives:

• Know why we are here!
• Feel that the business we work for stands for the things we believe in
• That there is consistency between what a business says and what it does.

By constantly focussing on these three elements, sharing experiences, best practices and success stories people start to believe in an organisations purpose.

Focus on the language of solutions:

It is hard for many English speakers to appreciate, but language is the gateway to understanding culture. Without speaking French, it is challenging to truly understand what it means to be French. The same is true in companies, which means achieving a common solution focused language is a critical step in embedding a ‘way of thinking’ within the DNA of the organisation.

For example a phrase that was embedded in me while I was running a Field Service organisation was “Fix yourself, before you fix your customer”. It was used and applied to every person in the organisation and is still used today!

Be a role model in what you say and do:

It is important to remember that you cannot tell people how to think. They have to figure that out for themselves. The only tools you have is to influence your team by what you say and what you do! A great examples would be the key performance indicators you focus on to manage your business. These say a lot to your people about what are your priorities.

Relentless follow up and training:

Evolving a company intrinsic DNA is not a one shot event. It’s a journey, its relentless, be prepared for the long haul. In small teams it is possible to drive this as a manager, but within larger organisations, a more formalised programme is required to touch every individual.

Training and support programmes that emphasis and re-emphasis solution thinking should be embedded into your annual budget if you are really serious about change.

Be open to Outside-IN thinking:

It’s a sad fact, but people will often listen more to people outside their immediate organisation, whether that be another department, customer or consultant. Be aware of this and use it to your advantage to influence and embed the ‘Self-Learning gene’ in your people

Be prepared to manage people out of the organisation:

Sometime people for whatever reason are not prepared to change. In my experience more people than you might think can live with change (I am an optimist), but when it’s clear that its not working, be prepared to be ruthless and actively manage poor performers out of the organisation.

In a short article it is difficult to fully discuss all the aspects of the self learning culture and why it is important. So in co-operation with Field Service News, we propose to organise a virtual round table later in the year to discuss with peers how to embed the ‘Self-Learning gene’ into your organisational DNA.

If you would like to participate, please contact either Kris Oldland or Nick Frank.

Si2 ON-Demand is a unique advisory and support service that enables top performing leaders to solve problems and get things done, quickly, easily and cost effectively.

 

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Who are the most influential people in the global field service sector that you need to pay attention to in 2017?

The Field Service News #FSN20 is our list of the individuals we believe will be key influencers in our industry across the next twelve months. Those included in the list have been selected by our own panel of industry insiders, who were given the simple criteria of identifying people who will have a significant impact on field service thinking.

However, more than just an annual list of 20 individuals the #FSN20 has grown since it’s launch to become a true celebration of excellence and innovation within our industry.

There are some familiar names and some new faces on this years list and as always we don’t expect everyone to agree with our selection – at it’s heart the #FSN20 was conceived as a tool to get everyone in our industry thinking about who it is that they have come across in the global field service sector that has made them think, who has made them question the accepted paradigms, who has inspired them to do just one little thing more in their own day to day role.

The #FSN20 is not just about the list our panel has put together. It is about fostering discussion that celebrates the unsung heroes of the field service sector. So look out for the online version of this list as well to take part in the debate.

But for now, ladies and gentleman and without further a do, in no particular order, we are pleased to introduce the #FSN20 of 2017…

 

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Click here to see page one of the 2017 #FSN20

 

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Nick Frank, Founder and Managing Partner Si2 Partners

Having worked as an international consultant for over 6 years, Nick founded Si2 Partners last year bringing a new approach to consultancy by offering services on demand.

Nick’s focus is on service strategy development, servitization business models, ecosystems, innovation management, service operations and service business development. He works with companies in a diverse range of industries including engineering, high volume manufacturing, equipment manufacturers and technology. A regular columnist in the trade press and a excellent speaker often to be found at industry conferences, Nick also plays a pivotal role in organising the conference sessions for the UK not-for-profit group The Service Community.

 

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Michael Blumberg, President of Blumberg Advisory Group, Inc

Michael Blumberg is the President of Blumberg Advisory Group and is a recognised expert in Field Service and Reverse Logistics in High-Technology industry.

Michael’s thought leadership, service system planning and strategy formulation are cited as having helped many organisations increase profits and he is a prolific author publishing a number of well received projects including white papers and educational video projects.

 

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Aly Pinder, Director of Member Research & Communities, The Service Council

In previous editions we had a rule that we would only include one person per organisation within the #FSN20. However, ever since Aly moved from the Aberdeen Group to The Service Council, we knew we would have to repeal the rule, as both Aly and Sumair are industry heavy weights in terms of analysis of our industry.

In his new role he will be looking to further enhance the already well established research projects undertaken by The Service Community and his addition to their team makes The Service Council one of the most important groups in the entire global field service sector.

 

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Tom Heiser, CEO, ClickSoftware

It may perhaps be unfair to comment that when Heiser took the reigns of the field service management software stalwarts ClickSoftware the company was perhaps at it’s weakest point in some years, indeed they remain a leading provider of field service management solutions at the forefront of the industry.

Yet, based on the sheer level of dominance that they once held and in light of the ever increasing quality of the competition in the field service management space, Heiser had little time to find his feet in the world of field service if he was to ensure the ClickSoftware brand remained as synonymous with delivering service excellence as it had to date - particularly in the natural uncertainty that an acquisition by a private equity firm can potentially cause. 

However, having seemingly spent little more than a few hours in his own office for the first six months as he flew around the world meeting analysts, influencers and customers alike Heiser certainly appears to have not only established a firm grasp of the industry at large but also where the future for field service management technology lies and under his guidance the outlook for the iconic ClickSoftware brand appears to be on a very positive footing once more...

 

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Marne Martin, CEO, ServicePower

With their next generation platform Nexus now firmly established within the market place ServicePower have re established themselves as a key company within the FSM solutions sector under the vision of Martin.

However, it is her focus on R&D that really continues to drive Service Power to the forefront of their sector. With a number of patents including a one focussed on quantum annealing that will see them developing cutting edge technology for the foreseeable future. Martin is also a very highly respected speaker on the international field service circuit

 

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Jim Baston, President of BBA Consulting Group Inc

Baston of BBA Consulting is the proponent of Proactive Service, and is a master when it comes to understanding the delicate relationship between service and sales and how companies can maximize that relationship to enhance profits. Author, Speaker and Consultant Baston is an intelligent and experienced leader within his field whilst being a true gentleman and pleasure to talk to, to boot.

 

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Kevin Jones Managing Director Computer Product Solutions, Panasonic Europe

Panasonic remain the undisputed leaders in the rugged space with the ToughPad and Toughbook brands synonymous with rugged computing. The Panasonic ToughBook20 is the worlds first fully rugged detachable and could just be the most perfect device for field service to date being both a tablet and a laptop.

Jones has spent a decade with Panasonic and has total responsibility for the entire ToughBook / ToughPad Products and Solutions in Europe, including Sales, Marketing, Engineering and Operations whilst also sitting concurrently on the board of Panasonic Manufacturing.

 

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Dave Yarnold, CEO, ServiceMax

Within less than a decade Yarnold has taken ServiceMax from start-up to being purchased by GE late last year for close to a Billion Dollars.

However, the meteoric rise of ServiceMax wasn’t solely about the technology. Yarnold has a true passion for the service and that passion has filtered down and shone through at all levels of the organisation, which was perhaps the secret source that put them at the top of the sector - having been recognised as the leading FSM solution provider in the most recent magic quadrant report.

Now as part of GE Digital, Yarnold has even bigger visions of how ServiceMax can play a role in building an operating system for the entire industrial sector of which service will be a key component.

Big ambitions?

Yes. But Yarnold is a man that could possibly just do it.

 

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Click here to see page three of the 2017 #FSN20

 

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Nick Frank, Founding Partner with Si2 Partners explains why profitable long term growth comes from having the right people in the right place at the right time and why technology although important, usually plays a secondary role...

In todays fast moving world this might be an “off- message” statement, but the truth is that it is still people who deliver profits. As a result creating ‘High Performance Teams’ or what some call the ‘Self Learning’ organisation has become a priority in staying competitive within the new digital economy.

Sustainable improvement requires a commitment to learning.

In successful organisations, this is embedded in the DNA of its people which drives themselves forward to deliver results that makes the real difference.

How does your team measure up? Perhaps a good place to start is to review how your teams manage problems and the language they use. Most technically orientated organisations pride themselves on solving problems.

Ironically, too strong an emphasis on problem solving does not necessarily drive the customer-orientated behaviours we are looking for. Problems are in fact very static, with a focus on past events.

If organisations are not careful, problems become a blame game, concentrating on why things cannot be done. ‘Yes but……’ is a phrase that become endemic within the organisations way of doing things. However, problems are also the life-blood of innovation, in that they can create a focal point for organisations to rally around.

 

The resulting solutions are often focused on customers, are dynamic in nature and focused on the future. The language of solutions concentrates on ‘Yes and…’, seeking possibilities and opportunities. It is in fact solution thinking that really drives the organisation forward in creating competitive advantage.

A self learning organisation is one that has the rigour to identify and quantify problems, yet the discipline to shift to solution thinking, develop forward momentum and achieve results.

This problem-solution-problem-solution learning loop sounds fairly straight forward, but actually requires a level of management maturity that is often surprisingly missing from many organisations.

As Winston Churchill pointed out, learning is all about engagement: “Where my reason, imagination or interest were not engaged, I would not or could not learn”

So how do we go about creating a culture of ‘self learning’, which is deeply embedded in the corporate DNA. In most businesses, focussing on two important aspects of organisations can really make a difference. The first is a strong vision of what the company is all about, why it is there, what it is trying to achieve for its customers and how.

More important than the vision statement’s words, is the way that it is communicated.

Successful communication comes from:

1. Targeting your message: For example Field Service Techs have very different drivers from their Product Sales colleagues.
2. Augmenting logical reasoning with an emotional appeal that inspires employees to do things differently.

The second aspect is Values.

A company’s values are the core of its culture. While a vision articulates a company’s purpose, values offer a set of guidelines on the behaviours and mindsets needed to achieve that vision. While many companies find their values revolve around a few simple topics (employees, clients, professionalism), the originality of those values is less important than their authenticity.

Developing a culture that is aligned to values and vision is what provides people with a purpose, and this is the key to facilitating innovation.

Organisations that successfully create a self-learning environment typically start to see:

• Problem being solved systematically
• Experimentation with new approaches to work
• Learning from other companies and a focus on customers solutions
• Greater knowledge transfer through out the organisation
• An acceptance that change is normal and to be embraced

To get the ball rolling does not necessarily require large complex change projects. For example at Amazon, every person who wants to pitch a new idea to the management, is asked to describe it as a press release written on the day that the idea is launched. This press release, together with a list of ‘Frequently Asked Questions’ is what Amazon executives use to judge whether there is real value in the innovation.

This relatively simple idea forces everyone to focus on outcomes and solutions.

And if leaders ‘do what they say!’, then these practices and thinking, can become part of an organisations DNA.

 

So if you sense that your teams are struggling to execute on new opportunities that are arising in this digital age, or are becoming to focused on problems and falling into the blame game, then perhaps it is time to think about how you can evolve the dynamics of your organisation.

Using a 3rd party to help leaders gain new perspectives can be useful, because people listen more to a new voice. However, at the end of the day it is the Leadership at all levels in the organisation who by taking reasonably simple steps can set expectations, ‘Walk the Talk!’ and move the organisation on.

Nick can be contacted on nick.frank@Si2partners.com. Si2 ON-Demand is a unique advisory and support service that enables top performing leaders to solve problems and get things done, quickly, easily and cost effectively.

 

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The key to digital transformation for field service organisations lies in people and not technology writes Nick Frank of Si2 Partners...

“The rate of increase of industrial devices being connected to the internet is up 25% per year, but customers don’t really appreciate how the capabilities and benefits of the IoT are relevant to their business’

So says Dave Hammond, Product Manager at MAC Solutions. And he should know, as he sells and manages the market leading eWON router, which enables industrial equipment to be accessed securely and remotely, across the Internet. For business leaders, his ‘grass routes’ observations are far more insightful into the challenges of monetising data, then the many articles routinely churned out on the subject.

It highlights the importance of mind-set above all else, which is all about getting back to management basics, a point that many commentators have lost sight of. What becomes clear from talking to people like Dave is that servitization, industrie 4.0 and Digital economy have little perceived relevance to SME businesses at the moment. Their focus is on better meeting the needs of their customers but mainly reducing costs. Many are enabling their equipment for remote connectivity with a business case solely based on savings and cost reduction.

 

They can easily imagine and so justify the investment based on a reduction in costly service visits through remote diagnosis, especially during the warranty period, where they bear 100% of the cost. With the number of devices being put on-line booming, everything sounds pretty good with the market. But Dave and his colleagues at MAC are concerned at the lack of ‘market understanding’ from the UK SME’s they talk to.

In their ‘Connectivity Roadmap’ most customers are stuck at level 2 - ‘Get Connected’, which is all about cost! They struggle to justify moving to the next phase of delivering proactive service revenues and ultimately transforming their business.

 

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So what are the underlying causes of this stagnation and an inability to step up to the challenge?

Part of the reason lies in the lack of maturity of the tool sets being developed by IoT providers such as GE, Microsoft and PTC. In the last 3 years, huge investments have brought these tools into the realms of reality, but they are still relatively cumbersome to integrate into the business processes.

Despite what you might read, it is only larger businesses that have the resources to invest in developing their own bespoke infrastructure; and even then, most of the tangible gains remain in the area of cost reduction.

For many in the industry, another challenge is around culture. Most quarters of industry have struggled to really imagine what the technology can do for their business. They have become trapped in product-centric thinking, rather than deeply analysing where the value is delivered within their customer and industry value chains.

The good news is that the business case to ‘Get Connected’ is so inequitably clear, that at least many engineers have been encouraged to pilot the technology and learn for themselves what it can do.

A second challenge is the conservative nature of many industrial businesses in adapting to fundamental change. Together these represent a significant mind-set issue.

The message for many businesses is that to maximise their return on technology investment, they would do well to challenge their current culture to become more outward orientated and service focused.

 

This means not only better understanding customers’ needs and their immediate problem.
But moving deeper into how to harness their inherent know-how and technology to help their customers make money. By moving emphasis away from technology towards outcomes and operational excellence, many businesses will be able to deliver more value and hence profitability.

The problem is that this is a ‘back-to-basics’ approach, based on common sense and, as we all know, common sense is one of the hardest elements of business upon which to act. Leaders can start by encouraging an ‘outside-in’ approach, taking a long hard look at the value they add to their customers and how they influence the industry value chain.

Then together with the experiences they gain in understanding the power of these digital technologies, they will develop the insight and confidence to turn data into profits.

So, if you sense your initiatives in developing these new capabilities are slowing down or not meeting your expectations, perhaps there are three basic challenges for you to review...

1. Do you have the right level of insight to use your know how to make your customer more profitable?
2. Do you know how to use information to make your operations more cost effective?
3. Are your people encouraged to explore new ideas and have an environment and process in which innovative ideas can be turned into reality?

 

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Nick can be contacted on nick.frank@Si2partners.com Si2 ON-Demand is a unique advisory and support service that enables top performing leaders to solve problems and get things done, quickly, easily and cost effectively.

 

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Michael Blumebrg, President, Blumberg Advisory Group explains why the on-demand economy has become a very attractive value proposition for both FSOs and their customers...

I recently marked a significant milestone in my career. This year marks 32 years since I began work as a management consultant in the Field Service Industry.

I was a newly minted MBA when I started and wondered how I could possibly help clients solve their field service challenges. One of my mentors at the time told me that the key to my success was to just keep at it.

Eventually, I’d have enough experience to solve any challenge presented to me; even those that people were dealing with for the first time. Not just because I’ve seen these issues before but because I would be able to anticipate them.

Looking back, I find these words of wisdom to have been spot on. The Field Service Industry has changed so much since I began working in it.

Much of what we anticipated would happen has happened.

Oldsmobile, a now defunct car manufacturer, had a popular commercial jingle on television in the United States when I began my career…” this is not your father’s Oldsmobile… this is the new generation of Olds”. I feel the same way about Field Service. We have entered a new generation of field service.

 

The field service industry has changed so much such much since I started working in it. Interestingly, much of what the experts at that time predicted would happen with respect to field service has happened.

Back in the good old days, I used to sit around the lunch table with my colleagues and discuss how technology would change the service delivery model and how service would become a utility just like electricity, water, or gas.

It would always be available when you needed it, you would consume it frequently, and pay for what you use. In other words, we were describing the basic elements of the on-demand economy. We just didn’t know it at the time.

What exactly is the On-Demand Economy?

Tech Insider Magazine defines it as the economic activity created by technology companies that fulfil consumer demand via the immediate provisioning f goods and services. Uber, eBay, Lyft, and Airbnb are classic examples of the On-demand economy in practice.

Field Service is also rapidly becoming an On-Demand economy business. Over the last twenty years there have been several industry trends and developments that have made this possible.

Here are a few examples of how Field Service Organisations (FSOs) are leveraging technology to become On-Demand economy businesses:

• Dynamic Scheduling provides real-time information on technician availability which permits FSOs to immediately commit to their customers when a Field Engineer (FE) will arrive on site.
• GPS Technology provides real-time visibility of FE location which enables immediate updates as to when the FE will arrive on site
• Freelancer Management Systems provide FSOs with the ability to source, train, and dispatch freelance technicians. As result, FSOs can scale their workforce on-demand.
• Advanced Technology such as IoT, Augmented Reality, and Artificial Intelligence provides the technical platform for delivering on-demand diagnostics to FEs and end-customers reducing resolution time and improving first time fix.
• 3D Printing Technology enables FSOs to produce parts on-demand. Thus, they can reduce their investment in spare parts inventory, improve fill rate, and lower their logistics and transportation costs.
• Servitization Business Models where manufacturers charge for usage of their product on a subscription basis, such as Rolls Royce’s “power by the all”; the ultimate example of an on-demand economy business. Customers pay for what they consume, when they consume it.
• On-demand consulting platforms like Si2Partners provide a collaborative platform for Field Service Leaders to access subject matter experts to validate thinking, solve problems, challenge assumptions, and formulate new approaches as needed.
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The On-Demand Economy is no longer a concept of the future as far as the Field Service Industry is concerned. It represents a very attractive value proposition for both FSOs and their customers.

There are numerous case studies and data points available that demonstrate how the advancements identified above have helped FSOs improve the efficiency, agility, and economics of service. It will only be a matter of time before Manufacturers and FSOs develop and market on-demand value propositions to business customers in the same way that Uber or Airbnb have done with consumers.

Given current trends, FSOs will need to give serious consideration as to whether they should develop on-demand, “uber-like” service offerings for their customers. It is likely that customers will expect these offerings just as they have come to expect other types of services that have become standard within our industry.

 

There will obviously be leaders, followers, and those left behind when it comes to On-Demand. The question is where will you company reside on this spectrum. Will your company be first to market or will you wait to see what happens? The choice isn’t easy.

Ultimately the answer comes down to whether your company and your customers are ready for On-Demand.

If my experience offers any wisdom, then it’s that entry into any new service or market requires a good bit of market research, analysis, planning, and execution.

On-demand consulting platforms like Si2 Partners can certainly be a critical resource to field service leaders as they formulate their own on-demand service strategies.

 

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Nick Frank and Dag Gronevik of Si2 Partners joined Kris Oldland for our latest podcast where the talk was all about KPIs, in this excerpt we look at whether KPIs should be under constant review...

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Want to know more? Check out our Podcast with Nick and Dag on this topic here

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KO: Why are KPIs so important to driving a business forwards?

DG: First of al I think KPIs have one fundamental role and that is to drive behaviour. One of the risks with KPIs, as many people have realised is that they are interpreted and perceived as a controlling measure. But if you look at it from a driving the business perspective it really is all about driving behaviour.

To be able to link that behaviour you are looking at with strategy, budget,what the competition is doing, what customers are expecting... It’s quite a tricky cookie to crack but if you do it right, it is very powerful. One of the things people tend to forget is that we say Key Performance Indicators, there is the word Key in there, so people mix Key Performance Indicators, with performance indicators and it becomes a bit of a soup of KPIs. We should be really targeted on the ‘key’ word.

KO: It is a bit of a hackneyed phrase now but ‘what you can’t measure you can’t manage’ comes to mind. Is it really that simple, that we need to be measuring these things so we can improve?

NF: Actually that’s an old Peter Drucker phrase, but also I think it is quite often mis-quoted. Because he was also of the opinion that yes, you need the measures to gauge and give feedback on performance but actually there are things, part of performance that you can’t measure when your dealing with a person. In fact one of the key roles of a manager is to be able to provide this feedback to their people that can’t be measured or quantified.

[quote float="left"]The really big challenge that we are dealing with here is people and how people react. I think a lot of managers forget this because many managers equate measures with control.[/quote]The really big challenge that we are dealing with here is people and how people react. I think a lot of managers forget this because many managers equate measures with control. They want to control their business, they want to control their people, they want to prove to their bosses that they really know what they are doing.

So they measure everything and they tend to look at what has happened rather than predict what is going to happen and I think this is a mistake that many people make, they have too many and they are always looking backwards.

KO: It’s that rear view mirror approach - i.e. you can’t drive a car forwards competently, if your constantly checking the rear view mirror. 

You’ve both mentioned influencing behaviour and influencing people, but KPIs are essentially all about cold, hard numbers, and that is a very rational and logical way of looking at what is not always a logical and rational issue, because people are different and not so easily quantified.

Is that the big challenge in terms of getting the right KPIs - in that we can’t just base our decisions on percentages all of the time?

DG: I think you have certain measure that are unavoidable, especially financial ones, that are measuring trends which are very important to keep there year-on-year, but you might also have KPIs that you might only keep for one year.

For example, a short term project or program or a local project that you want to monitor and give more visibility to. I think that is also an area where you can keep KPIs. But I think it is important to keep that perspective of the long term measure that you can actually see trends, because if you can manage that well, then you also have control of your business.

KO: So are KPIs something that should be under constant review?

DG: I think that you will alays have a core set of KPIs as I mentioned but other than that yes I think so. You have an agenda that you review every year, you have an operational plan and as a support to that operational plan you need good measures to track progress.

Also they [KPIs] allow you to communicate to the organisation, if you are behind - what could be the reasons? Then you have activities supporting all these measures and KPIs so you can actually address the issues quite quickly and effectively.

KO: What is interesting here is the fluidity you describe, that whilst of course you have your solid KPIs at the heart of the business, in addition to that there is this layer of shifting metrics that are adaptable to where the business is at any given time. For me that is something that can be often overlooked, it’s almost like KPIs are carved into stone tablets some times.

On a similar subject let’s talk about the different KPIs that you would set for the team compared to those you would set for management...

NF: I think as a manager you want to be in control of the business, you want to problem solve and you need a level of detail and that’s part of your job - to be able to drill down from high level metrics to the operational metrics in order to do that and in order to answer the questions from your own management.

That’s very different from what you need to do with your people and what you need to do to drive your people. I’ve found if your talking to field service engineers their eyes just glaze over if you start talking in too much detail.

They are just really interested in what they can impact.

[quote float="right"]Managers are one set of stakeholders, but the people who work in your team, who work at the coal face, they have another set of needs and it’s important to recognise that they are different and to actually find the measures that motivate them and they can do something about[/quote] Therefore, it’s actually very important to separate out the two. It comes back to what Dag was saying at the beginning, there is a reason we do this it.

It’s to drive the business forward and be more effective in terms of our processes but also mainly our people.

Managers are one set of stakeholders, but the people who work in your team, who work at the coal face, they have another set of needs and it’s important to recognise that they are different and to actually find the measures that motivate them and they can do something about - so that if they take an action they can actually see that they are impacting how the business is working.

You really should think of them as two different sets of stakeholders therefore you should separate out the different sets of KPIs.

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Want to know more? Check out our Podcast with Nick and Dag on this topic here

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In this the latest edition of the Field Service podcast Kris Oldland, Editor-in-Chief of Field Service News talks to Nick Frank and Dag Gronevik of specialist service management consultancy Si2 Partners about the importance of understanding the KPIs you set and how they can be used as a tool to not only monitor performance within your field service team but also to improve it.

You can listen to a brief sample of the podcast above and if you would like to listen to the full podcast then you can download the full 45 minute conversation by clicking the link below:

Download the full podcast here

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Related articles discussed in the podcast: 

Driving success in service operations through leading indicators

Monetizing digitisation: start with the customer experience and work back

What impact will the IoT have on field service operations?

 

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Si2 Partners consultancy is launched to help industrial companies leverage services and take advantage of the Industrial Internet of Things (IIoT) or Industry 4.0 to beat the competition and win in their markets. Founding Partner Nick Frank tells us more 

Si2 On-Demand is a new way for managers and their teams to get advice and the support they need to get things done – as they need it, when they need it and as much as they need!  Managers engage with Si2 to solve problems, get new ideas or validate their thinking.  If they have capacity constraints, they use Si2 specialists as an extended workbench to complete their tasks -virtually, rapidly and cost effectively, wherever they are in the world. An innovative smart platform enables access to expert practitioners and consultants as well as a growing Insights Library, 

Leading industrial manufacturers have long seen the installed base as a business opportunity and as a way to moderate economic cycles. Faced with intensifying competition and limits to growth from product sales in developed markets, after-sales services provides ways to drive new revenue streams, improve margins and ward off competitors.

Today, services are an anchor business for many companies and have evolved from pure product support to encompass sophisticated offerings to help customers better manage or outsource industrial processes, including asset management, maintenance or parts of production and logistics. Nevertheless, even more companies have either not taken part in this evolution or failed to realise its benefits due to a flawed strategic approach or implementation. The well documented “service paradox” phenomenon, where profits decline even as volumes increase, is something that managements must learn to overcome.

 

Forward-looking companies have gone on to drive competitive advantage by bundling products and services into integrated solutions, delivering outcomes to customers demanding functionality and performance.

When outcome displaces the product from the centre of focus, transactional relationships with customers become more co-operative and longer term, as both sides work together to co-create value and share risks.

With customers locked-in and competitors locked-out, price pressures are moderated through value- based pricing. Currently, outcome-based services or performance contracting are viewed as a way to bend cost curves to improve performance in many industries, including healthcare, infrastructure, technical services, aerospace, defence as well as large machinery. Nevertheless, while customers have benefited from these business models, the same cannot always be said for suppliers.

Companies contemplating outcome-based services must overcome a number of hurdles, including assessing and managing risks as well as understanding how to measure value. Their challenge is to blend their value chain into customer operations, integrating ecosystems of suppliers and partners into value networks. They must invest to scale their business, but ensure that demand is sufficient and customers are open enough to try new approaches.

 

With technologies such as the Industrial Internet of Things enabling more productive service operations, there is now increasing evidence that digitization, is also sparking a ‘revolution’ in thinking, driving servitization and new business models. By enabling companies to collect and analyse data on an unprecedented scale and granularity, new services are being designed to improve products, process performance and customer experience.

Data is becoming a key new asset class, perhaps even more valuable than the underlying physical assets and processes. It is crucial for competitive advantage, and necessary for OEMs to avoid commoditisation of their products. Those with real vision are investing in new digital service platforms (“Anything-as-a-Service”),  to drive disruptive growth and new customer demand while dramatically reducing costs.

Si2 Partners reflects this new age of disruption. With the ambition to help industrial companies leverage services in increasingly digital environments, Si2 Partners offers On-Demand Advisory and Support, delivered through collaboration technology by people who know how to make things happen, Si2 helps companies not only shape their servitization transition, but focus on all the critical issues affecting their service businesses, including strategy, business models, organisational development, sales, marketing and operations as well as technology.

 

Operating across many industries and all geographies, Si2 Partners is uniquely placed to deliver solutions to problems or work successfully on major business transformational issues, such as business building, operational improvement, change programs or new go-to-market initiatives. Si2 combines a deep understanding of service business, a unique blend of top management and consulting expertise and strong industry experience.

Each business and the context within which it operates are unique, requiring a bespoke approach. Si2 works with management teams to understand their views, requirements and objectives, while bringing industry insights, proven methodologies and services thought leadership to the table.

 

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