How to Prevent Ongoing Performance Issues

Our Guest Blogger this week is Jan van Veen. He helps technology and manufacturing companies increase momentum for a continuous and quicker adaption to change. Adaptability is a key success factor for sustainable success in an increasingly complex world with rapid changes.  Download his research report “Adapt or Die – How to increase momentum for sustainable success”

Is your company experiencing continuous performance issues? Are your co-workers fixing these problems, adequately and rapidly? Many manufacturing companies often suffer with ongoing performance issues.  Their most common intervention is to do more of the same, in the hope that this will do the trick. In a complex world that is rapidly evolving, it is essential to continuously adapt and drive performance. But is this easier said than done?

Take a regional leadership team for example, that once struggled with reaching their expected growth. As the pressure for them increased, their main intervention was to create a list of potential sales opportunities within their respective countries; in order to meet their objectives, they would only have needed to gain a small portion of these leads. Unsurprisingly however, this  didn’t work out.

Why get Stuck?

As opposed to just a ‘quick-fix’, many performance issues require a more thought-out intervention. This should begin with a thorough root cause analysis, involving different stakeholders bringing in their individual perspectives. Several teams or departments will often need to collaborate, to implement the adequate solution.

In practice, this appears to be difficult for individuals and teams whilst they are in the so-called ‘defensive survival mode’ or in the fixed mindset (as opposed to Carol Dweck’s famous ‘Growth Mindset’). The common “planning & control” management approach is what pushes co-workers into this defensive survival mode. They focus on short-term targets and punish set-backs. They fail to give themselves time to sit back, discover the root cause, and seek alternatives.

Consequently, people in the defensive survival mode will focus on their survival by reducing risk, justifying issues, identifying external circumstances, blaming others for causing problems, and so on. This impacts performance and creates performance issues throughout the company.

The Alternative

Let’s go back to the leadership team from our last example. How different would it have been if they had taken the time to find out why their business was failing to grow? What if they had involved other stakeholders and experts, or interviewed a couple of (potential) clients? The team could have discovered that their company did not have the right brand or proposition for this specific region. They could have solved the performance issue from first principle, at the root cause. This would have resulted in quicker, and more sustainable solutions.

The Solution for ongoing performance issues

To resolve the matter, employees at every level should be confident and eager to adapt, collaborate, try, rethink, question, and most importantly: act! With modern “sense & respond” management practices you can increase the momentum to continuously adapt and drive change. There are a few practical things you could do, to increase momentum in your team:

  • Let them take the time to analyze the root causes.
  • Schedule meetings with team members to discuss these root causes.
  • Engage in strategic dialogue across all levels, to discuss and adjust priorities.
  • When objectives are not met, initiate a forward-looking approach; with a constructive review and discussion, that will lunge your team forward.
  • Introduce shared objectives as a basis for the review, as well as rewards for your team members; this will get them all in the ‘same boat’, and drive collaboration.

Hold them individually accountable, by agreeing on separate objectives that can all contribute towards the overall goal.

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Field Service Management

Current State and Future Outlook

This Q & A first appeared on Mobile Reach as part of their Field Service Management Expert Interview Series. 

In what ways do you think field service management is changing? What are the future areas of growth?
Field service is becoming a technology-intensive business function. Technology enables field service organizations to build “Uber” like service offerings which are always available on-demand and in real-time. The future growth will come from adopting disruptive technologies like mobile, augmented reality, GPS, IoT, etc., to make this happen.

Speaking of IoT, what role do you see it playing in field service management?
I see the Internet of Things playing a very important role in field service management. It provides field service organizations and individual field service engineers with real-time visibility into status, health, and the condition of equipment they must support within their installed base. With this knowledge, field service organizations can be more effective at solving issues remotely, and field service engineers can be certain to have the right skills and resources (e.g., spare parts) with them when they arrive onsite to resolve an issue.

How are mobile technologies changing the way FSM organizations interact with their customers?
Mobile technologies provide field technicians with instant access to information about equipment history, spare parts availability, and technical knowledge. This helps them be more effective in doing their job for customers. In addition, they can use the technology to receive real-time updates and alerts about customers’ equipment. Furthermore, field technicians can utilize mobile technology to capture business intelligence about their customers that can then be utilized to upsell and cross sell additional services.

You mention upsell and cross sell. How can field service organizations use mobile technologies to drive revenue and competitive advantage?
Field service organizations can use mobile technologies to capture information about their customers’ machine population. For example, they can record data about what equipment they own, how long they’ve owned it, whether it is under a service contract, when the service contract expires, and their level of satisfaction with their current service provider. This information provides market intelligence that can be used to upsell and cross sell additional products and services. Companies can also drive revenue and competitive advantage by using mobile technology to capture customer satisfaction data and other relevant market research that would help improve performance and lead to the development of innovative products and services. Organizations should coach and train field technicians on how to sell and establish sales oriented KPIs for the organization.

How is the broader economy affecting field service management? How do you see this changing over time?
The current economy has a very positive impact on field service management. In an “up” economy, such as the one we are currently in, customers usually invest heavily in new equipment which means more service in the form of installations and service contracts. They are also more likely to spend more on services by purchasing premium service offerings that they may have not purchase in a down economy. I see the economy and the field service industry remaining strong for the next several years. However, even a down economy can have a positive impact on field service. Investors view field service as a defensible business in the sense that it is not hurt by cyclical economic trends in the way that industries like automotive or luxury goods are. Customers still need field service even when the economy is performing poorly. In fact, they are likely to increase their dependence on field service to extend the life of the equipment they currently own instead of buying new products.

What is role of the Chief Service Officer and how will this position evolve going forward?
The role of the Chief Service Officer is to drive customer satisfaction by managing service delivery against KPIs. In addition, their role is to serve as an internal advocate/champion within their organization for service. This means they work toward obtaining investments and resources when needed to improve customer satisfaction and service delivery performance. The role is evolving in the sense that CSOs are being tasked with responsibility for managing field service as a profit center as well as taking a leadership role in developing business strategy and driving innovation within their organizations.

What are the top three KPIs that you recommend FSM organizations focus on now?
My top three KPIs are First Time Fix (FTFR), Mean Time To Repair (MTTR), and customer satisfaction (CSAT). In the future, as field service generates greater value for companies, the KPIs are more likely to focus on financial metrics and customer outcomes such as gross margin, uptime availability, contract attachment, and renewal rates.

How can FSM organizations integrate big data without becoming bogged down with information overload?
They should consider the problems they are trying to solve before trying to find a big data solution. Once they have a clear understanding of the problem, they can determine if a large data set is required to solve it and, more importantly, identify what types of big data analytics are required. Does the problem require descriptive, diagnostics, predictive, or prescriptive/cognitive analytics? Lastly, they must understand that from a data solution perspective these analytics build upon each other. In other words, you can’t run until you learn how to walk. Trying to implement a prescriptive/cognitive big data analytics solution is pointless unless you have effectively addressed problems that can be solved through descriptive, diagnostic, and predictive analytics.

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