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December 7, 2020 | 4 Mins Read

Managing COVID-19 Complexity: Real-World Lessons to Help Navigate the Second Wave

December 7, 2020 | 4 Mins Read

Managing COVID-19 Complexity: Real-World Lessons to Help Navigate the Second Wave

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By Sarah Nicastro, Creator, Future of Field Service

When we began lockdown in March of this year, I thought – maybe naïvely – that the pandemic would be in our review mirror by year end. Here we are, however, with cases rising in many regions across the world and second waves of lockdown in certain areas. While we all long for our lives to normalize, we must find fortitude to wait this out with safe practices and patience.

I recently held a Focus Group with some of the Future of Field Service Advisory Forum members to discuss what best practices they could share from how their companies have handled COVID thus far that may help their peers prepare for this second wave. It was a great conversation – I continue to be heartened by the connectedness among the industry and the inclination to come together during this crazy time to help one another along. Here are some of the points that came up in conversation – thought processes, strategies, and steps that participants felt served them well in navigating COVID challenges.

Let Go of Business as Usual – It’s Time to Get Creative

There were a number of points brought up in conversation about how companies’ normal course of business has been significantly impacted by COVID. Particularly companies that serve retail locations and restaurants have seen drastic declines. Even those who haven’t been hit as heavily have had to alter the normal business processes to comply with lockdowns and keep employees and customers safe. While the outcome varies from company to company, what was shared in conversation was a willingness to let go of business as usual and quickly get creative. This may mean diversifying the business, embracing innovation, altering delivery methods, introducing new services, or a variety of other things. But the commonality is that companies who have navigated COVID successfully haven’t done so by being tied to the legacy of how things have been done.

Lean on Digital Tools to Maximize Safety and Adapt to a Virtual World

Some companies have been able to adopt tools like Remote Assistance to move to a remote-first service strategy. This enabled organization to persist in providing customers service during lockdowns, and really sets the stage for a more evolved way of working even post-pandemic. Much of the conversation within the Focus Group centered around the fact that the focus on physical intervention as the first line of field service will be a thing of the past even once COVID passes. Looking beyond service, companies also discussed technologies being used to replace other functions that were previously conducted in person – like training, for instance. And those whose organizations have needed to continue with essential, in-person service throughout the pandemic discussed ways they’ve been able to rely on planning and automation tools to optimally schedule and route technicians in a way that reduces travel and minimizes exposure through avoiding peak times to keep both employees and customers safe.

Don’t Downplay Employee Emotions

This has been a hard year for everyone, and it is essential not to overlook or minimize the emotions your employees have. Not only are they likely struggling with concerns around health and safety, but those concerns may be compounded worry over the future of t heir job or overwhelm from the introduction of new technologies or processes. Companies that have done well managing COVID share a focus on empathy – a dedication to remembering the human side of all of this and recognizing and addressing the emotions of their employees as best they can. Leaders have gone out of their way to develop more personal means of checking in and staying connected in this virtual world. Some companies have noticed that as remote service ramps up, technicians fear for their jobs – and are working hard to address these concerns and put minds at ease about what’s to come. In a time where we have to move fast to adapt to rapidly changing circumstances, don’t overlook the need to put your people first.

Act Global; Empower Local

Global organizations have faced an extra layer of complexity because COVID cases, management, and restrictions vary so much from region to region. As such, it was brought up that there isn’t any real way to centralize the rection to local COVID circumstances. Rather, these organizations have worked to centralize access to information and resources but empower the local units to react in the ways that best fit their individual conditions. Certain best practices are created and communicated at the global level, but each region feels empowered to react to their own changing circumstances in the way they see fit. Part of what makes this possible is a move toward more real-time data analysis and far faster decision making. This enables communication between central and regional functions and helps everyone to stay in lock step on the approach.

December 4, 2020 | 4 Mins Read

What Can We Learn About Service from a 1,400-Year-Old Company?

December 4, 2020 | 4 Mins Read

What Can We Learn About Service from a 1,400-Year-Old Company?

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By Tom Paquin

If you look at the Fortune 500 list as a barometer of business success, you’ll see some truly behemoth mainstays, many of which have endured on the list for at least the last five years. And sure, evaluating these businesses on the sliding curve of assets and liabilities, this can provide some insight into the health of a company, and excellence is great, but what about endurance? What can we say about a business that has stood through crises, recessions, wars, governments, and natural disasters?

If you look at a list of the oldest businesses in the world, you’ll discover that the top of the list is monopolized by Japanese companies. And while many of the years are impressive—705 for the oldest hotel in the world, 862 for the oldest winery—one business stands a head (and nearly 150 years) above all the others, and that is Kongō Gumi.

What compelled me about Kongō Gumi specifically was that in a list dominated by hotels, restaurants, alcohol producers, and state-owned properties, Kongō Gumi was something different—they were a service provider. Specifically, they’re a construction company, specializing in elaborate Buddhist temples.

There is however a twist to this story: Kongō Gumi was liquidated in 2006 and sold off to Takamatsu Construction Group. It seemed incredible to me that a company that has survived for as long as Kongō Gumi could so flippantly and abruptly go the way of the dodo, but it’s yet another reminder that, in the age of empowered customers, legacy is meaningless. It’s fascinating, though, to look at what toppled a service mainstay that was incorporated more than 1200 years before the country that I am currently sitting in. The obvious answer is that pedigree is a meaningless function in the face of industrial growth, but nevertheless, when a company of unrivaled pedigree collapses in an industry about which you study, there are certain to be some lessons to take away.

To consider those lessons, let’s look at some of the main reasons why Kongō Gumi was driven to acquisition.

Insolvency
If you look at the available evidence regarding the collapse of the business, this, in its simples terms, is what dealt the final blow. Unregulated lending derived from the Japanese economic bubble of the 1980s weighed down companies like Kongō Gumi with excess debt. Exacerbated by a lagging economy in the early 21st century, the business was no longer capable of standing on its own.

There are of course many positive and valuable reasons for businesses to take on debt—personnel attraction, research and development, or expansion—but this can serve as a reminder that debt needs to be justified and leveraged across a broader business plan, rather than be a means to keep a business afloat. This is a bigger challenge in construction and real estate than in other businesses, which is well-known for solvency issues and corrupt practices. This doesn’t mean that other service industries are immune from the challenges of debt, obviously. Let’s take it a step further and think about what led to this degree of insolvency.

Product Rigidity
Kongō Gumi has a broad and detailed history of building Buddhist temples and shrines. It was the stability and consistent needs of this industry that permitted their success through the centuries. This rigidity of vision turned detailed, elaborate architecture almost into a widget factory, though each of their constructions endures as a unique and beautiful symbol in its own right. Nevertheless, the other side of that rigidity meant that when the market reached a point of saturation, there was nowhere to pivot to.

For manufacturers, product-oriented organizations, or service companies, it’s a short path to see how some product diversity could have helped to mitigate some of the fiscal problems that the business ultimately faced. We frequently talk about building new service offerings that stem out of the primary offerings of a business, and that remains a way to evolve with a changing market. Service, on a whole, can be extremely nimble when given the tools to do so.

Knowledge Hoarding
The complexity of the work that Kongō Gumi meant that apprentices needed ten years’ worth of training in order to reach a level of mastery necessary to produce work that met the expectations of the customers. While I personally admire and respect the cultural practice of rewarding expertise and excellence at a craft, it is easy to see how such a business model would struggle to scale in a modern corporate environment.

Service businesses have an opportunity to take heed of this, and consider how their skills are disseminated across their business. Most businesses don’t require the expertise that is needed to construct elaborate pagodas, so making sure that new staff have the skills they need as soon as possible is an imperative, and a comparatively easy one to manage.

In spite of it now being a totally-owned subsidiary, Takamatsu Construction Group respects and maintains the name and reputation of Kongō Gumi. In some ways, by joining the larger organization, Kongō Gumi has, in short order, been given the tools to be more nimble. Let’s hope that the beautiful structures that they create even now will endure for many more years.

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December 2, 2020 | 1 Mins Read

Breaking Away from Break-Fix Service

December 2, 2020 | 1 Mins Read

Breaking Away from Break-Fix Service

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Sarah talks with Brad Resler, President and COO of Brady Services and Roger O’Connor, EVP of Aftermarket Operations at Gosiger about the migration to more proactive and outcomes-based service.

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