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July 8, 2020 | 23 Mins Read

5 Ways COVID Has Brought Clarity to Our Business

July 8, 2020 | 23 Mins Read

5 Ways COVID Has Brought Clarity to Our Business

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Rodger Smelcer, Vice President/Owner of United Service Technologies discusses with Sarah five ways that COVID-19 has brought clarity to his business and what changes he’s made as a result.

Sarah Nicastro: Welcome to the Future of Field Service Podcast. I'm your host, Sarah Nicastro. I'm happy to welcome to the podcast today Rodger Smelcer, vice president and owner of United Service Technologies. Today we're going to be talking with Rodger about five ways that the COVID-19 challenges have brought clarity to his business. Rodger, thank you so much for joining today. Welcome to the podcast.

So before we dive into the questions, can you just tell our listeners a bit about yourself and your background in the space and what United Service Technologies does?

Rodger Smelcer: Well, of course my name's Rodger Smelcer and United Service Technology is a company me and my business partner, Bob Heidkamp, started in 1995, and the idea behind the business was to really provide a wide gamut of services for the grocery industry specifically. We both had a background in grocery, so that's how we got started. And currently, we service about 2,000 grocery locations in the West Coast.

Sarah Nicastro: Okay, excellent. And you and I have spent some time together over the past handful of weeks in some different interactions. And in our chats, we've talked about this idea of some of the ways that our current challenging landscape has kind of brought clarity to yourself as a business leader and a lot of other folks as business leaders. So specific to you, we've outlined five different ways it's impacted you, and I want to talk through each of those on today's episode. So the first is that it's brought clarity for you to the need to create a culture of kindness. And I know that you've told me this is something that has really always been important to you, but has just become even more emphasized as the last few months have unfolded. So tell us a bit about why it's always been important to you, how the current circumstances have brought even greater clarity to that need, and maybe any advice you can share on how you've done this in your business and how others might do the same.

Rodger Smelcer: Sure. Well, I think we have done it for pretty much the entirety of our business. We've focused in. We always like to say we're developing a culture of kindness because you never really get there all the way. So what we do is we really try to look for the evidence of a culture of kindness, and that's part of developing it, right? First, you have to define what that looks like. And one of the ways we've been able to define that is just two words, respect and cooperation. So when we see those two things happening within a department or inside of a group, that's our evidence that the culture of kindness is actually working there. And so we look at it that way. We're looking for those two things all the time.

Rodger Smelcer: I would say during COVID, one of the big changes for us has been utilizing different pieces of software that we already had. We already had an HR software platform that had a community kind of a building section of it, and what that allowed us to do is create what we call positive impressions. And so peer to peer, they're giving each other positive impressions in a multitude of categories, and that allows us to reward the desired behavior, right? And that's a principle we always operate our business on is only reward desired behavior. And so we're constantly reinforcing that through these positive impressions. And then of course, just through communication, casting the vision and making sure that people understand it.

Sarah Nicastro: Okay. So I have a question about that. So you said that respect and what was the other? Cooperation. I was going to say collaboration. So respect and cooperation are two ways that you know the culture of kindness is working. So if there's an instance where one of the two of those things is lacking, then how do you determine the root cause of that lack? Meaning like how do you determine if it's more of a personal employee issue versus a breakdown in that culture of kindness? Does that make sense?

Rodger Smelcer: Yes, and that's a great question. And so that goes back to why do you... What are the criteria you hire people based on? And so we like to hire on what we call the three Cs, character, capability and chemistry. So we want them to have the character, to be a person of their word, to get to work on time, to do all those things. We want them to be capable of doing the job, but if they don't know how to do something, they need to be a quick learner. In fact, we'll tell a perspective employee that our business doesn't afford us to learn slowly. There are a lot of businesses that do. Ours doesn't. And so we give them a heads up, we're looking for fast learners.

Rodger Smelcer: And then three, chemistry. Are they a team player? Do they work well with others? And what we find is when we're dealing with someone, whether they're not displaying the culture of kindness properly or virtually, any problem basically boils down to those three areas. It's kind of like a tripod, right? And if it's missing one of those legs, it just falls down and it's not very useful.

Sarah Nicastro: That makes sense.

Rodger Smelcer: So when we call people in to talk to them and try to correct behavior, we're usually dealing with one of those three things. And so, because we're not dealing with the specific issue as much as we are these three things. So if they're not showing up on time for example, we're talking to them about their character. What does good character look like? How do we improve this? And we get to the specifics, but we try to deal with the root cause.

Sarah Nicastro: That makes sense. Yeah, this kindness topic is interesting because I think to a lot of people, it could sound a little bit fluffy or woo-woo or what have you, but I do think it's really important, and I've actually been having a lot of conversations recently with folks about how before these current challenges started, kindness was appreciated to an extent, but also sometimes seen as weakness or potential for weakness or potential for being too soft or that sort of thing, and how the perception of kindness in leadership has changed to be perceived as such an important strength. It's really interesting how facing these last few months collectively as a business, as a community, as a world, really has brought a lot of light to how truly important that kindness is. So I know that it's something that for you has been important for your business for a very long time, but I think even other organizations that didn't prioritize it so heavily before are really starting to look at how much of an important role it plays and how they can do a better job.

Rodger Smelcer: Well, a couple of things. So you do find yourself saying, "Don't mistake my kindness for weakness," quite a bit. And number two, in order to really attract and keep millennials and Gen Z these days are also known as zoomers, right? They're demanding that culture of kindness. Really, even in all the turmoil you're seeing now in the media, it all comes down to everyone just wants to see a culture of kindness, right? That's what... Those protests are over that. All these things, so everybody wants to get to a culture of kindness. I think figuring out how to do that is the part that companies sometimes struggle with. I feel like we've been able to accomplish that to a large extent in our company. And of course, like I said before, you're always working on it. It never ends. You're finding new ways to make it more kind. We're finding that game of finding things helps in that as well, and we do that in a lot of different areas and then training and other things.

Sarah Nicastro: I don't want to get us too off track, but that is my specialty. And one thing you said, it just made me really curious. So what are some of the ways that those younger employees of yours, you said they're demanding a culture of kindness. How do you see that presenting itself? What is the evidence of what they're looking for that makes you need to level up in this way?

Rodger Smelcer: It's the questions that they're asking during the interviews, right? One of the questions millennials will ask is what is the culture like? Well, I never hear that from my boomers or my Gen X people coming in. And I hire across the whole gamut, but that's a particular question from them. And so that prompts the question from our interviewer, well, what kind of culture are you looking for? Kindness comes up a lot. And I think that's where we've been able to make some inroads because we're listening to understand instead of listening to respond during those interview times. And I think that's mistake a lot of companies make is they're listening to the person, but they're listening to respond with the next question or with the kind of the criteria that they're really looking for in that moment.

Sarah Nicastro: Right, or even listening to respond with, "Yes, here's how we can give you that," versus thinking... Yeah, versus thinking, "Oh, maybe we should think about this. If this is coming up in these conversations, do we actually do this? Is this something we should consider?" That's a really good point because it's not the topic we're talking about today, but this whole idea of how companies need to evolve to be more effective in their recruiting and hiring practices as the older workforce retires is a huge pain point for a lot of folks. So I really love that idea of listening to understand instead of listening to respond, because if you can glean insights from that where you can go back and change your, whatever it is, job descriptions, benefits, whatever, to make it more appealing and improve your success rates, that's a really big deal.

Sarah Nicastro: Good. So the second area of clarity that we had discussed is the idea of how important a sense of community is. So I've heard you say a couple of times all ships rise with the tide, right? So tell us what you mean by that and how you feel about this importance of community.

Rodger Smelcer: Wow, I have a lot to say on that subject for sure. Well, I do believe all ships rise with the tide. As we share best practices as an industry, it lifts the whole industry, right? And I think one of the things that's come out of this time during COVID and the pandemic is all these virtual happy hours, right? And so many people and companies have participated in these. And for our industry in particular, I think they've been very, very positive. We're getting together casually, but we're also giving updates on what's happening in our specific region and maybe some of the solutions that we've brought into play or policies that we've put together to help us with COVID. And I'm proud of our industry for sharing a lot of that information, but also disappointed that our associations are not more actively surveying the whole group and then taking that information and putting it back out to the entire group.

Rodger Smelcer: I think those are the things... In a lot of ways, I think our associations and our groups that we all belong to, and there's multitude of them, their response to this pandemic has been anemic at best. And we've been left on our own to figure it out, and one of the ways we've done that is through these virtual happy hours, right? So we get together, share a lot of the best practices, bring each other up to speed on what's happening in our different regions of the country. And I think it's been beneficial and I think all ships are rising with the tide during the pandemic.

Rodger Smelcer: And there are a lot more young people coming into the industry now, and we're participating in that. I'm sure you are too. I'm seeing a lot of millennials and Gen Zs coming into the industry and they're networked already. They're communicating this way already. I think as companies, we've been a little bit slower or behind the curve matching that kind of communication, that kind of network, that they are already just kind of born with at this point because of the technology advances that they've experienced and they're coming up.

Sarah Nicastro: Yeah, that's a good point. I think in my role of really trying hard to provide valuable insight to people and to make connections and to share best practices, I think the appetite for that has definitely increased. Since this started, I think that people really want to band together and feel as though... I mean, it's a hard time. You don't want to feel like you're in it alone. You don't want to feel like you're on an island. And we can't get together in person, but it's really nice to be able to just talk with someone about a shared challenge or even just how you're feeling or how they're tackling x, y, or z. There's a lot of value in that.

Sarah Nicastro: And I think that it's a really good point. And hopefully, I hope that that sense of community sticks. I hope it sticks after things get back to some semblance of normal. And I think that the way that we've kind of bonded as humans, I hope that that is something that remains. I think so. For me, it will. And I think if anything, it's just made me reflect on how lucky I am, how much I love what I do, how much I love the community that I serve. And because it's easy when things are going great to take a lot of things for granted. In some ways, it's human nature, right? So it really gives you a chance to think about what's important and this is one of those things. So the third area is clarity around your leadership and the role you play as a leader and what that has looked like. So what are your comments in that area?

Rodger Smelcer: Yeah, I'm typically hard on myself when I'm introspective like that. I feel one of the areas I've improved in that was a weakness prior to the pandemic is just I felt like I was going too slow. And the evidence of that is we were touched early by the pandemic because one of our employees had a father that tested positive and was in the first 10 cases in the US. And so when we found out about it early, we were able to jump all over it and start creating policy and do a lot of different things. But what I saw was we were able to go at triple speed to get things done than we normally do.

Rodger Smelcer: And so could we sustain a higher speed on a lot of these projects if we were really focused? And I think that's improved a lot. We've been moving all of our projects along much quicker post-COVID, and we're not done with it obviously yet, but post the initial reaction to it. And I think that's one area that as a leader and not just me, all of our leaders have grown in this particular area. Being quicker, having a higher sense of urgency as we attack these issues and problems. There are many changes and effects of this pandemic on every department in our companies.

Sarah Nicastro: Yeah, that is a good change and it's a very important one. And I think that we did a podcast a week or two ago, and one of the things that came up was that increase in pace of change. And it was with DSL. And I think one of the things he said is just how proud he was of the ability to step up and do things faster and all of that stuff. And I think that's... You don't know what you're capable of until you're forced to really push it to the limits, and a lot of people are in that spot right now.

Rodger Smelcer: I'd say the other big area is just communication, right? It's been my normal practice over the years to reach out personally to all our employees. I usually call two or three every other day and just try to connect with them. But during this pandemic, the dynamic has changed, right? Now we're not just... It's not, "Hey, how's it going? Is there anything I can help you with? Or what do you need?" Now t's health concerns. I have one employee that has 10 of his family members have tested positive for COVID.

Sarah Nicastro: It's alarming.

Rodger Smelcer: And that's a whole different conversation now, right? Because he's worried about his family and what's ultimately going to happen. And there's a closeness that generates from that though too. It's not a negative thing, it's definitely a positive thing. And you start to get to understand their circumstances a little bit better and get closer as a company.

Sarah Nicastro: Yeah, those interactions have... Maybe before they were somewhat on a surface level and now they've really dug deep into real life stuff. I think it's a good point though that when you were saying communication, I was thinking about the fact that if you as a leader are highly committed to creating this culture of kindness, that element of communication, and more importantly, personal communication. And I would even further qualify it as sincere personal communication. I don't think you could have a culture of kindness without that.

Sarah Nicastro: I think that it's one of those things that... And that's why I was asking you some follow up questions on the kindness thing because I think it's something that is easy for anyone to say like, "We have a great company culture. We have a culture of kindness and everyone loves it here," or whatever, but when you really peel that back and start to look at what are those practices that make that claim a reality, doing something like being regimented with yourself of every other day, I'm going to contact two or three employees personally and show them that I genuinely care and really check in with them, that's a practice that I think goes a long way in making good on that desire to have a culture like that.

Sarah Nicastro: So I just think that's a really important point to touch on because it's not just about coming up with some really great sounding company mission and putting it on the walls of the building, it's about those daily practices and weekly practices that foster that type of environment. So, good. Good job. You're doing a good job. That's cool. All right, so the fourth area we talked about was clarity in business strategy. So talk to us about some of the things that have come to light about where the business is heading and what needs to happen with the strategy to be successful.

Rodger Smelcer: Well, I think everybody got into gear real quick as the pandemic turned on and we realized that this is bigger than we thought, right? Because in the news early, it didn't seem like a huge thing and it may not come over here and all of that. But once it did, you start really taking a look at what's important, what's not and start really looking at your processes that are in place now. Of course, that you're putting together your policies that are ever changing during this pandemic. Things get mandated and then pulled back and vice versa.

Rodger Smelcer: And so I think for us, the strategies that we used during this pandemic weather are twofold. So we looked at them department by department. What did we expect the new normal to look like? And so we started strategizing on what changes need to be made department by department. And we actually first started with sales and marketing, and what did we need to do to help our customer at this moment? What could we do to help them? And fortunately for us, because we're in the grocery industry, only one of our customers actually shut down, bakery, deli and meat department.

Rodger Smelcer: And so we came up with the idea that we were going to offer a hibernation process to them. And we would do it during our normal plant maintenance cycle for them and help them put the machines in a way where when they came back and turned them on, they would work. We have a lot of experience in this because being in the grocery industry, we've experienced grocery strikes. And during those strikes, we saw the grocery chains come back to equipment that wouldn't turn on. And so they blew up their whole maintenance budget coming back because everything was broken, frozen, not working.

Rodger Smelcer: And so that was one strategy we used from a sales and marketing side. And then of course, our plan two, I think in those moments, you're deciding things that we do every day, are we going to continue to do? And what things are we going to eliminate so we can focus energy on more safety and acquiring more PPE or whatever it is. And I think for us, we decided because our industry wasn't largely shutting down, we decided to keep most things going. And of course, the strategy was to move a lot of people home that weren't home already. We've always had work at home people in our company. For last 15 years, we've had many of them and even prior to that. So we have a good ability to manage our people at home and coach them along in areas that are new to them because they're at home.

Rodger Smelcer: And I think that's a little bit how our strategies have changed. We've just really come up with a new normal for each department and I'm focusing in on that. Another way we do that is, I'm an outline taker, right? And so I was talking to you earlier about switching to kind of a mind map format and making things visual for our team. Not only for them, but so they're able to convey it all the way down to our frontline technicians in the field. And that's been a powerful change for us that has really helped us to be more focused on the things we need to be doing to help our customer along.

Sarah Nicastro: Yeah, you shared that with me. Is it Coggle? coggle.it, I believe, is a mind map software that Rodger uses. And him and I were talking on a call a week or so ago and he brought it up and we actually... He pulled it up and we did one together and it's really cool. It's a great way. I think especially with so many meetings happening virtually, it's a really good way to take all of the thoughts that are bouncing around and put them up visually so that people can follow along on, you might be in an hour long meeting that takes 73 different turns and if you're not taking good notes, you get out of that meeting and you're like, "Wait, what were all the takeaways?" Or what have you.

Sarah Nicastro: And just in terms of brainstorming and innovating and organizing, it's a really, really neat tool. So it's definitely worth checking out. And I'd be curious how many people are doing that sort of thing. I know for me, I think it'll be a great way to outline content and brainstorm different ideas going forward. So I appreciate you sharing that with me. Okay, so the fifth and final area of clarity is around the optimization of processes and technology use. So let's talk a little bit about that.

Rodger Smelcer: Wow, that's a big subject for us. We have implemented a lot of technology, partially for the areas it can help us help our customer, and partially because that attracts and retains millennials and Gen Z or zoomers. So we utilize it in many ways. So a few of them are we utilize an AI technology that allows us to triage the calls before we go and understand the parts needed, dynamically build inventories and things like that. We also use a mixed reality technology that allows us to support technicians in the field. And of course, COVID kind of changed that, so now we're starting to support the customer in the field as well so that we're not in close contact. That's the ultimate distance, right?

Sarah Nicastro: Yeah.

Rodger Smelcer: And then the one I'm most excited about right now is we're using a no-code application development platform that allows us to be more flexible for our customer. One of our customers said to me once years ago that the two most important qualities in a service company for them were flexibility and reliability. And we've kind of taken that and run with it. We want to be able to customize the application used by the technician in the field so that they're basically walked through processes specific to that customer. And it's really helping us do that and provide things like Uber style ETAs, and that's a project we're working on now, and other things like that. So that platform is exciting because we're able to do it internally and develop our own application.

Sarah Nicastro: Yeah, so do you think COVID has ramped up your use of technology, or do you think it's just allowed you to find different ways to utilize the systems that you had in place?

Rodger Smelcer: Well, I think we're unique in that we've implemented many technologies in our industry at least, from the other companies that I'm talking to, but it has really just expanded the use of the technologies we were already developing. We haven't really added any new technology as a result of the pandemic. However, we've made all of the technologies we've used more powerful as a result of the pandemic. And so they reach farther into now areas where we're helping the customer. They also give us the ability to really focus in what we do on the current need of the customer, which is different now that COVID is here. And I think we have to have processes in place that are built into our workflow in the field real time. And as those changes are made, we need to be able to make them quickly and respond.

Rodger Smelcer: And I think that's what the technologies have really given us the ability to do. I think our technicians, our management are all involved and working on those. We talked in... The last time you and I talked together, we talked about one of the ways that makes it easier to retain technicians is helping them develop their resumes, right? And we talked about the mindset of people like me, Gen Xer and baby boomers, that job security mindset versus that employability mindset that these new generations have. And we feel like if we can add all of these technologies to their resume, it adds value to them personally.

Rodger Smelcer: And they appreciate that. And you think that it would be counterintuitive, right? You're building up their resume and they'll just take it and go work somewhere else, but what we're constantly reminding them is who is helping you build your resume? And who's going to help you build it in the future? Are you going to continue to build it here, and you've seen the proof of that, or are you going to go somewhere else and hope that they're going to help build your resume the same way we have?

Rodger Smelcer: And I think that's a real key to retention for us.

Sarah Nicastro: Yeah, I think, Rodger, what I'm taking away from this podcast episode is that we should have you back at some point in the future and do an episode specifically talking about best practices around recruiting, hiring, and retention, because I think that you have some really good input on those areas. And like I said, it's a topic we've covered in the past, not in a while because there's been all of these urgent top of mind things, but I think that would be a really good idea. And it's a very good point. So it's good. Any other, I guess, comments or thoughts or lessons learned that you would want to share in closing?

Rodger Smelcer: Well, I think all the things we've talked about, many of them have lessons learned. And when we talk about that new normal that's coming and really is already here, the lessons that we've really learned as a team, as a management team in our business, is that we needed to focus in on the structure of our department and our people and what they're focused on. I think having a little bit more time, and really the pandemic allowed that, allowed us to have more time to really take a look at the business, right? And really decide... I think a lot of people decided they wanted to try to restructure a little bit to meet the need, but that caused them to take a look at the structure that they may have not normally done outside of a pandemic like we did, and really make great changes.

Rodger Smelcer: In fact, I'll tell you during the pandemic, we've had the best three months in our company's history. And I almost feel guilty saying that sometimes because a lot of times I'm talking to a lot of companies that are in the sit down restaurant industry or they're in another industry that was severely impacted like hospitality. And those guys are just coming back. And recently, we opened restaurants or we're planning to, and we ordered all the food and now we can't open them. And so there's a lot of struggle going on with all these things.

Rodger Smelcer: And trying to keep health at the top of the priority list has not been very difficult for us because we're in an industry where you have food safety and all of those things. We do a lot more training with our customer now than we did pre-pandemic. So I think that's an area where I think a lot of companies could improve and we certainly have during this time. So I'll just leave you with that. Really customer training is a big piece of what we do as far as safety, equipment safety, food safety, and just our technician safety on the job.

Sarah Nicastro: Yeah, and we've talked a bit about how going forward, I think safety is going to be a bigger differentiator for service organizations than it maybe was in the past. In certain industries, it's always been important, but it's so critically top of mind for people right now. How are you going to keep us safe? How are you keeping your employees safe? Everything is going to be centered around the details of what those processes look like. And I think that that's something that's going to be a real important differentiator for quite a long time.

Rodger Smelcer: Well, many of our customers are asking for natural disaster planning, right? In fact, it's included right in the RFPs from our customers. So, you have to be prepared. Every company should have a safety committee that meets on a regular basis and talks about safety issues and creates policy and modifies policy and all of those things. And certainly, we have ramped all of that up post-COVID and really made it even more of a top priority than it already was.

Sarah Nicastro: Yeah, good. And I liked the point you made about how this situation has given you a little opportunity to press pause and reflect as a business, right? I think that you get in the day to day busyness and craziness and a lot can just go by and time can go by. And you're right. This has forced people to reflect and where it's necessary, make some changes. And I think there's some good aspects of the impact this will have for businesses for quite a while, just in terms of their openness to change and the, like you said earlier, the ability to be more agile and to move faster when you need to and that sort of stuff. So really good thoughts, Rodger, and I really appreciate you being here and sharing with us today. We'd love to have you back sometime in the future to talk a little bit more about hiring and retention.

Rodger Smelcer: Yeah, thank you for having me. I really enjoyed it and I look forward to another one with you someday soon.

Sarah Nicastro: Awesome. That sounds good. You can find more insight on how companies are handling COVID complexity by visiting us at www.futureoffieldservice.com. You can also find us on LinkedIn and Twitter @TheFutureOfFS. The Future of Field Service Podcast is published in partnership with IFS. You can learn more about IFS Service Management by visiting www.ifs.com. As always, thank you for listening.

July 6, 2020 | 5 Mins Read

Alfa Laval Drives Service Excellence with Remote Assistance

July 6, 2020 | 5 Mins Read

Alfa Laval Drives Service Excellence with Remote Assistance

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By Sarah Nicastro, Creator, Future of Field Service

Alfa Laval is a Swedish company founded in 1883 that is a world leader within the key technology areas of heat transfer, separation and fluid handling. With more than 3,700 patents, Alfa Laval provides worldwide solutions in areas that are vital to society, including energy, pharmaceutical, marine and food. The company has over 17,000 employees, including more than 700 field service engineers, that help customers in nearly 100 countries.

As a product manufacturer with deep history, Alfa Laval has had an eye on advancing its service focus for quite some time. “Service has become an increasing strategic focus for Alfa Laval as we have a huge, installed base with which we need to continue to position ourselves as a trusted partner,” says Cedric Domont, Global Service Sales Director at Alfa Laval. “Service is a key enabler of differentiation and has a critical impact on customer experience. These are the major reasons that Alfa Laval’s focus on service has, and will, continue to increase.”

Like any other manufacturer on the path to Servitization, Alfa Laval has learned it is a journey that takes some time and involves some foundational changes. Jens Pulczynski, Manager Global Service Operations at Alfa Laval, points to a significant shift in company alignment that has enabled the company to make the progress it has. “In 2017, the company was reorganized, and the total lifecycle of products was clarified for alignment, including service sales and service execution,” Jens says.

Digital Transformation is Key to Advancing Service Goals

In addition to its greater companywide alignment on the opportunity around service as a strategic differentiator, Alfa Laval has recognized the role digital transformation will play in achieving its ultimate Servitization vision. “I would divide our technology focus into three categories,” says Jens. “The first is connected products – we have, for some time, embedded our products with connectivity that will allow us to remotely monitor the status and operations of equipment which will increase our service value proposition. The second is remote guidance, which we began investigating last year as a better way to provide expertise to our field service engineers. Then, as COVID-19 hit, we recognized the potential it had in customer-facing capacities and decided to speed our investment in the technology.”

The third area, which will be upcoming for Alfa Laval, is to determine a productive method of virtual selling. “We want our employees to have the right balance between physical and virtual interaction with customers. The progress we’ve made in effectively selling virtually as a result of this time will become something that is sustainable for our business. We’re looking into the right technologies, training, and processes to make this a permanent transformation”, says Cedric.

Remote Assistance Plays a Pivotal Role Through COVID-19 And Beyond

In both navigating the complexity of COVID-19 as well as furthering the company’s broader service objectives, remote guidance has proven impactful for Alfa Laval. “When we began researching remote guidance last year, we were looking at how to support our more than 700 field service engineers. They are supporting a product portfolio with significant complexity and machines sometimes in the market for more than 30 years. We were interested in the idea of providing them more efficient and productive access to remote expertise with a technology that would simulate a hands-on interaction,” says Jens. “As COVID-19 spread and travel restrictions were introduced, we realized that if we acted fast this would be a tool that would aid us in continuing to serve customers throughout the crisis – as well as set us up to serve them better than ever before after the crisis passes.”

Alfa Laval chose IFS Remote Assistance, collaborative merged reality software that blends two real-time video streams into an interactive environment. Two users can collaborate and interact in real-time while telestrating, freezing images, using hand gestures, and even adding real objects into the merged reality environment – whether that’s supporting field service engineers on site or customers directly. “We chose IFS Remote Assistance for our remote guidance because we felt it was a strong technology but also because we value the financial stability and long-term vision of the company,” says Cedric.

The timeframe from beginning of pilot to full rollout was just six weeks, and IFS Remote Assistance is now in use by approximately 150 employees at Alfa Laval. “This solution has provided us business continuity during COVID-19 in areas where travel was banned and keep utilization of our resources high. As we recover from the crisis and return to more normal operations, our use of IFS Remote Assistance will evolve from business continuity to business transformation,” says Jens. “We’ll look at how we can continue to offer remote guidance, eliminate unnecessary travel, improve efficiency, and provide a better work/life balance for our field service engineers. Our customers have been 100% satisfied with the introduction of IFS Remote Assistance and impressed by the way it enabled us to continue serving them, so they will welcome expansion of its use.”

As recovery ramps and business circumstances continue to change, Alfa Laval will work to determine how to expand its use of IFS Remote Assistance and how to continue progressing on the path to Servitization. “IFS Remote Assistance helped us to be fast and flexible when we needed to be, which meant we did sort of a ‘quick and dirty’ release of this technology due to its value proposition in helping us through COVID-19. But it’s just the very beginning,” says Cedric. “We now need to take a step back and operationalize how this fit into our broader transformation – keeping it simple for our customers but looking at how we commercialize it as well.”

Alfa Laval has further goals of connected field service that will all keep the progress moving toward Servitization. “We’ll look at how we can use IFS Remote Assistance hands free, to allow even greater productivity,” says Jens. “And we have various other initiatives to tackle in ensuring our field service engineers are armed with everything they need to provide an excellent customer experience. This is part of a major transformation, and while that includes technology it is also about being willing and ready to think and work differently. We’ve made great progress amid a challenging time and will continue to work together to drive service excellence.”

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July 3, 2020 | 3 Mins Read

The State of Digital Commerce Benefits from a Service Mindset

July 3, 2020 | 3 Mins Read

The State of Digital Commerce Benefits from a Service Mindset

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By Tom Paquin

Forrester, in partnership with Bloomreach, recently published a report on the state of commerce experience for, in which they take a look at how both B2B and B2C sellers have realigned their channel strategies in direct response to COVID-19. There’s a lot of illuminating material in the report, especially on how the rate of adoption of digital channels has picked up dramatically in the face of necessity (unsurprisingly), but what is particularly interesting is that among businesses who sell online, 46% of them are seeing business growth over the last few months.

Another interesting piece, as noted in the report, is that half of the customers accounting for this increase in online commerce are shopping for things that they had never purchased online previously. We’ve discussed this in detail recently, of course, but it bears repeating, especially since we now have empirical data to further support these assertions.

Naturally, the market is following suit. When evaluating their planned commerce spending, 19% have decided to decrease spend on in-person commerce interactions, compared with only 2% before COVID.

These numbers are very compelling for of course all the reasons you’d expect, but evaluating them through the lens of service is an important consideration for both servitized business as well as those that are strictly product-oriented.

Forrester’s research, as it has for the last decade (and full disclosure: I worked there until 2016), centers on the role that technology plays in customer centricity, and the remainder of the report considers things like smart search, and the relationship between direct ecommerce and third-party retailers.

These are all inherently important, and I am fully entrenched in my belief that customer obsession begins by contextualizing technology through the lens of the customer, but there naturally surfaces a challenge in defining a face of a brand when that face has been taken away, and that is where service fits.

We obviously play in the sandbox of field service here, but humanizing your company through service can take many forms. Through smart customer engagement technology, for instance, organizations can not only take some of the operational lift of service off their workers, but also make their workers front-and-center to the conversation of their customers’ challenges. This is a little thing that goes a long way, especially in a world where, as the data shows, purchases are just a click away, and so are your competitor’s sites.

Servitization is of course the other major way that businesses can humanize their brands, and also retain customers through service agreements that have reasonably low overhead and help customers remain within a specific product ecosystem. By building service contracts with the customer in mind to accentuate the capabilities of your ecommerce system, you’re getting the best of both worlds: point-of-sales easiness right alongside an opening into a face-to-face relationship with the customer. The best companies combine that commerce and service data into a single practice that supports business growth.

We know this works. In a study IFS commissioned with IDC, we see that highly-mature servitized companies in the manufacturing space are 8X more likely to see a visible increase in profits directly tied to digital transformation and 5X more likely to grow revenue faster than 5% annually.

There are obviously limitations to the pervasiveness of this theory, though I’d argue fewer than you’d think. I had intended to use clothing as an example, but the existence of my StitchFix stylist (shout out to Kristina) reminds me that businesses are finding new ways to servitize everything. I’d say disposable goods like cleaning supplies are likely to be mired by pay-per-use indefinitely but I am certain that someone smarter than me is working on a way to servitize such industries as we speak.

COVID restrictions will (thankfully!) not be forever, but changing consumer sentiment will have permanent consequences for the sale and distribution of goods. It has mostly accelerated the changes that have permeated all businesses over the last half-decade or so. Service could be the key to championing that change, and making it your own.

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July 1, 2020 | 25 Mins Read

A Real-World Look at What Slows Servitization Progress

July 1, 2020 | 25 Mins Read

A Real-World Look at What Slows Servitization Progress

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Greg Parker, who has 20+ years of experience with brands like Hussmann, Trane, and Thermo King, shares some real-world insight into some of the common challenges that slow Servitization progress within organizations.

Sarah: Welcome to The Future of Field Service podcast. I'm your host, Sarah Nicastro. Today, we are going to be taking a real world look at what slows servitization progress. Servitization has been a buzzword in the industry for the last few years, and we're actually going to talk about why it's a buzzword, and kind of what it really means. Since COVID has hit, we've had a lot of discussions around kind of speeding the journey to servitization. As customer demands are evolving, there's even an increased need just in the last few months to really move to outcomes-based service models and to servitize manufacturing businesses, and really evolve with those customer needs, but it is a journey that seems to be fraught with challenges and takes quite a bit of time.

Sarah: And so, I invited our guest on today. He has a ton of industry expertise and experience and some really good perspectives on what some of the things are, the real world look, at how servitization progress gets slowed down. So, I'm excited to welcome back to the Future of Field Service podcast today, Greg Parker. Greg, thank you so much for being here.

Greg: Thank you, Sarah. It's great to be here.

Sarah: Awesome. So, Greg, like I said, you have a lot of experience in service, so why don't you tell our listeners a bit about your history in the industry and what you've accomplished in this space.

Greg: Sure. It really all started about almost 25 years ago, but it was in manufacturing at the time, and engineering, and that's really where I got started off for the first five or six years. I made the leap into the 3D world of service and sales in about 2004. So, for the past 15 to 16 years, I've been working in a services-type capacity, in really all aspects of it. In the beginning, it was improving service operations, improving overall operations in general management, and then it kind of carried into sales engineering, then over directly into service operations; and then for three years or so, customer care, which is customer service, another aspect of service, as well as technical training; and then the last three to five years has been with portfolio management over our service offerings.

Greg: And so, really, it's been a pretty broad aspect of the services world, but also been playing into the manufacturing and engineering space, as well.

Sarah: So you've witnessed a lot of this evolution firsthand, and I know you have some different experiences with the different companies that you've been with, in kind of leading the charge on the path to outcomes-based service to servitization, and so that's what gives you the perspective and experience that I think will lend to a great discussion today.

Sarah: Now you most recently were with Thermo King, and I know you also have been at Trane and Ingersoll Rand. Am I missing any?

Greg: I was with Hussmann for the first 13 years of my career.

Greg: Yep, and then the next 10 years after Hussmann was with Trane Commercial, and then the last 18 months was with Thermo King.

Sarah: Okay, cool. All right, excellent. So let's start by talking about why it is that companies need to embrace this evolution towards servitization or towards outcomes-based service, because I think that one of the very first steps in kind of preventing that progress from being too slow is the simple recognition that it is the future of service and it is a necessary evolution. So, what are some of the reasons why companies need to embrace this change?

Greg: Sure. Of course, I think that that depends on where you stand and who your customers are in your market, but generally speaking, we know that customers always have similar unmet needs. If you are simply manufacturing a product, and when that product leaves the factory, you're done, then the customer has a lot more needs than just obtaining that product from you. They're going to find a way to solve their problems, and the question will be, are you going to be a solutions provider for your customers, or will someone else be?

Greg: I think, in particular, if you are an OEM, you have a tremendous advantage to get into the services world, because you can really pull all the pieces of the puzzle together for your customers. Even if you're not, it's a great opportunity to provide those solutions, hit those unmet needs for your customer base, and it's really an opportunity to explore what do your customers really want, what do they need, and then prioritize how you can provide that solution to them. That's really the first aspect.

Greg: I'm going to say that there's another one. There's a second one, which is really centered around the financial piece. Consider downturns in the market. How about the times that we are, as a country, going through right now? In a downturn in the market, with many factories having to slow or even shut down, that dramatically impacts the revenue for your business, for your company, and services can be a more steady stream. Are there ups and downs? Sure, but either you will have the opportunity to offset those ups and downs, or it at least will be a level of stability to your business that you do not have today, and so, financially, it's also a great move for a business.

Sarah: Yeah, very good, and I think that there's kind of two different angles from which to look at what you just said. There's the areas in which it presents a significant opportunity for the business, and a path to growth and a path to different revenue streams, and then there's the other side of it, which is where it is a threat to your business to not go down this path, right?

Greg: Right.

Sarah: So I think both sides of those coin are really important, so that's good.

Sarah: I think the other challenge I think of right away is just with the terms themselves, servitization or outcomes-based service. I think, generally speaking, it's a term that signifies a universal and foundational shift in service, as service becoming a strategic differentiator and a path to revenue for organizations, but as you mentioned, that looks very different from business to business. So, I think one of the areas where companies get off on the wrong foot... once they've accepted that this is the path forward, I think there can be some real issues around clarity in terms of what the definition of servitization is, specifically for them.

Sarah: So, what thoughts or advice do you have on, within an organization, as you recognize the need to go down this path, clearly defining what that opportunity looks like for an individual business?

Greg: Sure. I think the first thing that I, in particular, think about is, don't get so hung up on the word servitization, and you just really alluded to that, Sarah. It's one word with a whole lot of syllables, right? If you haven't heard it before, you probably would think that it's some rocket science, but really, it isn't. It is simply getting on that journey to provide service to your customers, and then, what does that journey look like? Well, that really depends.

Greg: So, when you brought up, it may look different from business to business, my thoughts there is, concentrate on the market that you are in. Understand your customers, your customers' needs, and then identify what would be the best opportunity for you to begin that journey? Baby steps are totally okay, and a baby step could be simply, let's offer extended warranties, or let's offer repair services, but you also want to ensure that you just don't remain at those baby steps.

Greg: I would encourage more like a long-range plan. So, what would year one look like? What would the first three months look like, for that matter? But then, what does three years out look like? We could say maybe five years, but the world certainly changes a whole lot in five years, so most of the time, I would encourage just get to three years, and then go from there and you're probably going to be in good shape.

Greg: But I want to bring all this back to the fact that I could say, hey, do this or do that for any given company or any given advice, but it really depends on what market you're playing in and your customer needs. My best advice would be understand your existing customers' needs, but also understand your market, and there's many ways of doing that. I mean, talk to your customers. You could bring someone else in to help you facilitate that through a third party, if need be, or you can simply go old school and write it down on a sheet of paper, and then start to analyze it for yourself, and then bring others in, vet those results; then, begin doing like a Pareto that would say, "Hey, what are the biggest opportunities?"

Greg: Lastly, let's make sure that you don't forget that you're going to have some probably internal barriers, as well as the market may say, "Oh, there's a best opportunity for me, and this is the biggest opportunity that my customers need," and maybe that looks like, "Hey, I've got to provide an outcome-based service or a telematics or that sort of thing," but internally, you're not ready for that. Do you have the talent, the skills, the investment?

Greg: So, don't get intimidated by that, either. Just draw a box around that, put it over to the side, and say, "Okay, at some point, we may or may not be ready for something like that, but we can still start our journey." So, identify what has to happen internally for your company, and how you can create that best match to meet your customers' unmet needs.

Sarah: Yeah. You and I were on a happy hour last week, and that's actually kind of what initiated the idea of jumping on and having this conversation for a podcast, but Robin Butler was on with us, and I liked... what he said is, a lot of times, companies get caught up in the plan and lose sight of the outcomes, right?

Greg: Yes.

Sarah: So it's getting clear on, what does this journey look like for us, and what are some of the key outcomes that we want to accomplish, but then being very flexible in the plan for getting there, because that plan is going to evolve. To your point, it could be you need new talent or different talent; you need new technology, different technology; you need different processes; you need different sales and marketing expertise. I mean, there's a lot of layers that come into this, and I think those layers can seem very daunting, but you need to set those objectives and then just be flexible in how you begin achieving them.

Sarah: I think that there's... to me, I've been writing about this space and interviewing service leaders for about 14 years, right? And so, I think that we've reached a general point of consensus among the people I speak with within the industry that this evolution is necessary. Whether you're a strictly service business that is migrating from break/fix work to more of an outcomes-based model, or whether you're a manufacturer that is looking for your path to being more of a solution provider, I think it's a journey that everyone has pretty much signed up for at this point.

Sarah: But where I see a lot of kind of disconnect is... I guess I would think of a few points. I mean, there's the way that the technology providers in this space tend to talk about this journey, which is that it is the future, so let's do it, right? Let's get out there and make it happen.

Greg: Right.

Sarah: It's more slow moving than I think anyone would expect, whether that's the people providing the technology or the companies themselves. I think anyone would acknowledge that it's not an easy transformation because it is very multi-layered, as we mentioned. You talk about, you need to understand what it is your customers are going to be willing to pay for, and then you need to start re-engineering your business in a way that will allow you to provide that from a product perspective, from a process perspective, from a technology perspective, from a sales and marketing perspective, from a service perspective.

Sarah: When you really start digging into what a change like this means, it becomes pretty easy to understand why it isn't something that happens rapidly within the businesses. I think right now we're in this weird sort of limbo between a general consensus of understanding this is the path forward, but a lot of lag in taking that recognition and turning it into actual, tangible progress, right?

Sarah: So, what are your thoughts on that?

Greg: Yeah, that's a really great question, Sarah, and earlier in your comments, it made me think of... I think, at least my philosophy is, I'm a big believer in doing experiments. I totally agree that don't lose sight of the plan, but also don't just go with the plan. The experiments are going to be critical so that you know how to adjust, and it's okay to do experiments, and it's okay to fail at those experiments, as long as everybody is under the context that we're going to try something out, and that's the spirit of innovation. So, that's the first thing that I would say is, don't be afraid to go find those quick wins and to do those experiments.

Greg: But in terms of the lag and what may cause... hey, everybody gets excited, and then all of the sudden, things get stale, for whatever reason... I think there's a lot of factors into that, and as I have, I guess, experienced that in both a mature service industry and a relatively immature service industry from both angles, I would say that, be careful to not do copy/paste. This is really a message to a leader, or those that are trying to spearhead or sponsor the effort.

Greg: If you think that you can go benchmark a company, and then just do everything that that company did, and say, "Well, this should apply to me. It worked for them," that's probably going to be a dangerous strategy. I do think that it's really important to do benchmarking. I always do benchmarking, but you'll have to take that into context. I've seen, I've at least witnessed, before where a company will take and say, "Oh, well, this company did it; they're sort of in the same space we are. They did it his way. Let's just do it that way." What happens is you begin to lose sight of your customers, your specific market niche, and your needs, and what your own abilities are that I alluded to earlier, and when you do that, people get frustrated.

Greg: You may not be organizationally set up to do that. You might not have the talents, nor the technology to set up to do all of those things that the benchmark company that you just looked at did; and so, that typically brings forth pause, and then when pause comes forth, then people begin to say, "Well, gee, I don't know if this is actually going to work or not," and then the economy gets bad and you say, "Well, gee, I can't place my bets into servitization anymore. We're going to have to double down on our core business and make sure that we hone in on that."

Greg: And so, that's at least been some of the things that I've seen across the industry, and the second piece of that really boils down into leadership, too. You have to think about, do I have the right leadership? Is there a steady hand in all this? These things play together, and you don't have to have all the best industry experts to do it, so I'm not really saying that. I'm simply saying that let's make sure that your leaders understand enough about that path and that journey of servitization that they can support that, that they can be the ones that can be that foundation, because if the foundation cracks, then the house falls, so you have to be careful about that, too.

Sarah: Yeah. Okay, I want to go back to a couple of those points.

Sarah: First of all, I think the point you brought up about not being able to mimic anyone else's success is a really important point, because in this industry, if you look at what I do, what Future of Field Service is intended to do, it is to share best practices. It is to share lessons learned and road maps and paths to success and all of that, and I think that is important, but to your point, on this journey, in particular, it is very tied to the two points you brought up: what exactly are the services and outcomes that your customers are willing to pay a premium for, and what are your unique characteristics and unique value proposition that you can bring to the market, and where do those intersect, right?

Greg: Absolutely.

Sarah: To your point, that is not going to look the same for any one business, for any one industry. So, it is very much a unique path and a unique journey; so you can look to others for inspiration and for certain best practices and ideas, but that will never be a replacement for any one company doing the work of finding that intersection themselves. So, I think that is a very good and a very important point.

Sarah: The other thing you brought up in terms of leadership that I think is another really good piece of advice is, I think to really make progress on this journey, I think you need both visionaries... so, I think you need people that understand why this path is so important and can create a vision for how to bring a business to this endpoint... but I think you also need some strong operational expertise, because I think another area where this gets really slowed down is... if you think about doing the work of determining that intersection between customer demand and company expertise... so, you do that, and you have this vision for where the company can go and how it can evolve into servitization, but there's a lot of muck that you can get bogged down in, in wherever you are; whether it's A to Z or F to Z, or however long you need to go to reach that vision, there's a lot of real process and operations-related work that needs to be done, and in my experience, I don't think that those visionaries are often really good at the execution work, right?

Greg: Right.

Sarah: And so, you need to marry those two pieces of talent, I think, to ultimately achieve success. You need visionaries that can really think outside of the box and be innovative and do some of that work to determine where you are headed, but then you need people that can turn that into process and strategy and a plan for how you can get there, so I think that's another really important point.

Sarah: The third thing you mentioned that I wanted to go back to, and see if maybe you could talk through an example of, is the idea of experimentation. You simultaneously need to be working kind of your three year plan... what's the vision and where do we want to go... but you need to be getting those small wins along the way to kind of build that momentum. So, I don't know if you can think of an example to share of, what would an experiment on this path... what's an example of what that could look like?

Greg: Sure. I should probably give a couple. So, one would be more operationally, because a lot of times, when we think about service, we think about the experiments that we need to do on the day-to-day or to repair a break/fix, and then the other would be more around our offerings. But one example would be, in one of my past roles, we had a number of locations that were really afraid of the idea of doing triage with express service, so in some ways, that is a service offering. It wasn't positioned as a service agreement, so to speak, but just a way of doing business.

Greg: The thing about that is, when you think about that, it really changes the flow of the operation, and so changing the flow of the operation gets kind of scary when you've been doing something for, who knows, five, 10, 25 years the same way. One of the success points that we've seen in the past is, why not just experiment with introducing that? It doesn't have to be full-blown out of the gate. Perhaps you can try it from the hours of 10:00 to 2:00, and therefore, it might be a lighter part of the day, and begin getting your service coordinators, your folks that are handling that flow, accustomed to it. Then, where you see the wins, make sure that you highlight those wins. Track your progress. Have some form of measurement that would say, did I do better today versus yesterday? And so, that's one type of experiment. I mean, there's many that could be out there.

Greg: In terms of service offerings, I would say that, consider a company... and this is probably more on the immature side... that has a service agreement business, and maybe that service agreement is a preventative maintenance; so, you are doing preventative maintenance once a quarter, and you have this great idea that on my journey, on my road map, I want to provide more full comprehensive services and comprehensive service solutions. Maybe it's a monthly type of service or bill that you're doing for customers.

Greg: Again, you don't necessarily have to jump completely off into the pool and do that right away. There are ways to where you can evolve that preventative maintenance service agreement into more of a comprehensive-type service agreement just by adding a few features and functions, maybe changing the way that the billing is; instead of doing it once a quarter, maybe that's the first to once a month. But perhaps you may want to be looking at, "Well, for preventative maintenance, I want to do more remote services."

Greg: Again, this is for those companies that may be a bit more mature, and one experiment there is, why do I have to do a quarterly inspection? Why not just do the inspection when it needs it, or when the sensors say that it needs it? Why replace a filter that really hasn't become dirty in three months? So, those are some experiments that you can do with your customers, and make it your own.

Greg: So, that would be a bit of advice. Of course, I'd give some examples of the industries that I've worked in, but brainstorm to where you can do your own experiences.

Sarah: Yeah. Very good. I think it could be helpful, maybe, to just talk through... again, a very generic example, but of servitization on a maturity curve, because I think it can be unclear for some, so just a couple points, depending on the business.

Sarah: So, you begin as a product manufacturer; then, you may shift to the addition of warranties and after-market service; then, you may add preventative maintenance; then, you may migrate to more of an SLA and outcomes-based model, and then I think, the kind of final progression that we see in terms of servitization is to offer product as a service, or to your point, be seen as more of a solution provider than a product manufacturer.

Sarah: So, that's kind of just one example of what this would look like kind of on the evolution from start to "finish." Are there certain areas within that maturity curve that you think companies typically get more bogged down in than others?

Greg: Yeah, that's a great question. I think there's two areas, Sarah. One is, it's quite a bit of a change when you are going from the break/fix to a type of service agreement, whether that's a preventative maintenance type of agreement or a more full-service agreement. That change is a change in philosophy. It is a scary thing for some people to say, "Well, gee, maybe I won't make as much money," or, "Perhaps I have to change the way that I'm billing in the back office for something like that," or, "How do I market myself for that sort of thing?"

Greg: So, there's a bit of sometimes fear involved in making that leap, and that's usually where we see the biggest hump to get through, and so, in my experience, again, it's been bringing them back to, "Let's try some things out. Let's try to do it. Don't be scared to try. If you have fears, let's write them down and let's see how we can draw a box around those fears and minimize your risk, but let's move the ball forward." So, that's one area; so, I think it's moving from that break/fix to more of a service agreement type, or step, I would say, in a maturity curve.

Greg: The second piece is when you are trying to move up the ladder to outcome-based service, or even product as a service, and I think that these two can play together in terms of why there would be a pause or maybe a struggle there. The struggle is going to be because a lot of times, customers are not used to buying your services in that way. So if you're going to outcome-based service, you have to convince a customer to purchase it from you, and sometimes doing that would require a higher level of stakeholder in your customer's organization. So, a CEO or a Director of Operations may totally get it and may say, "You know what? That makes a ton of sense for me. I'm going to increase my up time of my equipment if I do this. My risk is minimized."

Greg: But if you're having that same conversation, if historically, you've been selling to maybe a middle management-type layer... great folks, but they don't have the same priorities or have the same purchasing criteria that perhaps someone higher in the organization may be. So, you really have to target that strategic account and say, "How am I going to propose an outcome-based service appropriately, such that I am ensuring that my customers are getting the win that they deserve, and that I know that I can provide?" Because if you don't, you're going to have folks in the middle saying, "Hmm, not for me. I don't even know how to buy that from you."

Greg: So, that's one thing that I've experienced, has been a struggling point for businesses.

Sarah: Yeah, that's a really good point, and it makes me think, if you look back through the maturity curve, and sort of pinpoint different aspects of that evolution, you can begin to see where different layers of the business come into play. I rambled off earlier some of the different aspects of the business that this shift impacts, from R&D and product to operations, to IT, to sales and marketing. So, to your point, it's also something that's another, I guess, barrier or common challenge that comes up that we didn't touch on earlier, which is... if you're a service function within a business that's trying to servitize without the buy-in of the broader business, it's never going to work, you know what I mean?

Greg: Right.

Sarah: It's not something you can do in a silo. It needs to be a cohesive, strategic decision, and that's because, to your point, it impacts so many different areas of the business, and you really have to have that alignment in order to progress through that maturity curve.

Sarah: I alluded to this in the beginning, but one of the things that I've been seeing in the conversations I've had since COVID came into play is, how this crisis can really speed companies' paths to servitization, and I think that's a result of how customer demands have changed in the last couple of months. I've talked with a number of different businesses that have said, quite frankly, right now, their customers will not make cap-ex expenditures; they want to maximize the lifetime of their existing equipment, because they don't want to make new investments right now. They are putting a lot of big projects on hold, big investments on hold, and so, there's actually been quite an opportunity for businesses to come in on the service side and be creative about how to servitize and how to offer new ways for companies to accomplish those goals.

Sarah: We've seen, really, some significant growth there, and I think that will continue. I think it's kind of a way to spur these companies forth in that journey a bit, to maybe the next step or two, to really meet demands that have changed quite significantly over the last couple of months, and I was just curious to get your thoughts on that.

Greg: Yeah, so I have a couple thoughts on that. In my experience with service, it's a small fraction of the investment that you would have to put forth to get either equal or greater results from, say, investing in designing a new piece of equipment. So, there are many things that you can do for $10,000, $20,000 that can get you a hundred to a half million. That's been my experience time and time again, and so, I think with the environment that's changed, you're exactly right. Leaders should explore that, because again, you could take just a small investment and produce great results.

Greg: Sometimes those investments are in the form of IT or software. Sometimes they're in the form of just getting the support that's needed to push the ball across the goal line, but they're usually not dramatic. They're not dramatic expenses.

Greg: I think the one thing that I have seen over the past three or four months since we've been going through this crisis is, people are now willing to try things, because they have to. Consider we're doing this today. We did the last one in person. We would always rather do it in person, but we have found ourselves some ways to make this work... through videos, through Skype... and yes, other people have done it before, but the majority of people in life have not, and it's forced the equation a bit.

Greg: How does this apply to field service? Well, think about technical support. Think about all the things that some people like me, like you, have been talking about for almost 10 years, with augmented reality, with artificial intelligence, with being able to provide support for technicians. How about remote services, intelligent services? All of those things require the types of technology that today, we are... I would say, in a more mass scale, people are beginning to use.

Greg: And so, that sometimes forces people to get a bit more comfortable with things. I would never have preferred it to have occurred this way, but certainly, as a result of the economy being down with the COVID situation, it has required some people to work differently, and I know people that have came to the office every day for many, many years, and the day that the office shut down and they had to work from home, they were really just lost. It required a lot of setup, it required a re-thinking of how am I going to work, and I read an article that you put out not too long ago about that very situation.

Greg: These are some things that we can apply into the soup of, how do we do service and make that more of a reality? So, I do think that it has accelerated the process a bit, and we probably won't even know it for a few more months to come, but as we look back, maybe a year from now, and we would say, "You know what? Because I did that Skype meeting or Teams meeting or Zoom meeting, or now that I had the opportunity to experiment with remote services, my texts are a bit safer. I can provide real-time support to them." Those are the type of things that I think may become an outcome of this unfortunate situation that we're in.

Sarah: Yeah. Yeah, I think service organizations are in a unique situation right now where both customers are more willing to do things differently as a result of what's happened, and so are employees, right?

Greg: Yes.

Sarah: And so, it is a time that I think there's a window of opportunity to make some significant progress with change more quickly or more easily than you could have six or 12 months ago. So, it will be interesting to look back and see.

Sarah: Last question for today: just any other thoughts or comments or advice you have on key aspects of what it takes to achieve servitization success?

Greg: Yeah, so as I reflect upon that, number one is look at your customers' unmet needs. Make sure that you understand what it is in your market that people are thirsty for. What is it that... the problems that they need to be solved? Do you have the ability to solve them, and if you don't, what type of things would you have to do? Map those out. You don't have to shoot for the moon in the beginning, so map it out. What would be some easy wins, a targeted approach, and consider it like climbing a set of stairs; so I've got to take step one and then step two... whatever that may be for you, but it needs to start in your market with your customers and make it your own.

Greg: I do encourage benchmarking, because you can learn a lot from that... best practices... but again, come back to making it your own. That would be certainly one thing, and I think that also keep in mind that sometimes this shift can be significant, so I think that that really depends upon your approach, but it is a significant change, but you don't have to make it to where it's unfathomable. You can make it where it's obviously something that you can do right away.

Greg: I would also not get discouraged with all of the hype around, you have to have certain IT solutions, you have to have all the latest and greatest stuff that's out there. Those are certainly important enablers, but you have to apply them for where you are on your journey. So if you're just getting started, if you're just a product manufacturer, and you want to take that first leap, you don't have to go spend millions of dollars in IT. Work your process out, make sure that you can do some things and try some things, and then understand where those things come along the journey. It's where to play and how to win, and how do I get there? Those are the top things that I would say upfront.

Greg: I would put a bow on that, and I would say whatever you do, track your progress. It's important for you and for your people and your customers to see the wins, and if you're not tracking the way that you should, make those adjustments. That's really important. Identify your own KPIs. Make it visual. Put it on a board. Put it on a computer screen for people to see. Know where you're winning, and know what adjustments you need to make to ensure that you are on a winning path.

Sarah: Yeah. That's really good advice. I appreciate that, Greg. I always enjoy speaking with you, and I really appreciate you joining us today and spending some more time with us, so thank you again.

Greg: Thank you. It's been great.

Sarah: You can check out more of our content on servitization, outcomes-based service, how companies are managing COVID-19, and much more by visiting us at www.futureoffieldservice.com. You can also find us on LinkedIn and Twitter, @thefutureoffs.

Sarah: The Future of Field Service podcast is published in partnership with IFS. You can learn more about IFS Service Management Solutions by visiting www.ifs.com. As always, thank you for listening.

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