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March 8, 2023 | 30 Mins Read

What Got Us to Where We Are in Service Won’t Get Us to Where We Want to Go

March 8, 2023 | 30 Mins Read

What Got Us to Where We Are in Service Won’t Get Us to Where We Want to Go

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On IWD, Sarah welcomes Kristen Nowak, President of Field Service at Unlimited Service Group, to talk about her journey, learnings, and why it’s time for us to get creative as an industry. 

Sarah Nicastro: Welcome to the Future of Field Service podcast. I'm your host, Sarah Nicastro. Today we're going to be talking about the reality that what got us to where we are in service is not what will get us to where we want to go. I'm excited to be joined today by Kristen Nowak, who is the President of Field Service at Unlimited Service Group. Kristen, welcome to the Future of Field Service podcast.

Kristen Nowak: Hi Sarah, thanks for having me.

Sarah Nicastro: Thanks for being here. Kristen and I met at the Field Service Connect event in Austin last fall, and we were both participated in some different conversations where I could sort of tell, we would hit it off and reached out after to see if we could connect and of course ask Kristen to come on the podcast and share some of her insights and opinions and experiences with you all. So Kristen, before we get into the talking points that we have today, tell everyone a little bit about you, your role, the company, et cetera.

Kristen Nowak: Sure. So like you said, I'm the president of Unlimited Service Group, which means that I look after our 30 unique brands of service companies that have 119 locations across North America with just over 1300 technicians committed to servicing commercial kitchen equipment for our manufacturer partners and customers in the market that we serve. I'm also very blessed and lucky wife to Ed and mom of four, CJ, Megan, Jerry, and Katie. So that's just to say that at any point of the day I'm probably worrying about one of those technicians and definitely worrying about one of those, at least one of those four kids. So if you should just use this time to take a nap. Because that's a lot and I'm sure you understand that Sarah too.

Sarah Nicastro: I do, I do. Yes. A mom's work is never done, that's for sure. Whether you're at work work or anything else you're doing, there's always someone on your mind, that's for sure.

Kristen Nowak: And service never sleeps, so all the time.

Sarah Nicastro: For sure. Yes. So let's talk a little bit about your journey into field service. Okay. So we talked about that you started in public accounting, so completely different. And I've talked on this podcast before about how when I started writing about field service, I had no idea what field service was. I mean, I didn't know that it was a group of industries. I thought, wow, this is going to be so boring. I didn't know that there was actually so much going on. And part of what we're going to talk about later on in how do we get people into this space? Part of it is I always say there's a branding problem. People don't think or don't necessarily know what field services the first time you hear that. And so I'm sure when you were in public accounting, you weren't sitting back thinking I would really love a career in field service, but here you are. So tell us a little bit about what that journey was like and how you progressed from where you started to where you are today.

Kristen Nowak: So I was recruited out of public accounting into the private sector and just like you, and maybe even worse, I started working in field service and I still had no idea what field service was. So I was recruited into a director of finance role. So it's just a little bit different than what I was doing when I was in public accounting, but right when I entered the business, I started seeing the kind of busy, chaotic, messy world of field service and coming from a very structured world and I just fell in love with it. And I was really fortunate to have great leaders, inspirational leaders who gave me opportunities to learn more. In fact, every time a project came up, they said, hey, here's an idea we have for the business.

I raised my hand and back then we were just one service company located in Chicago. So to look back over that 13 year span, the time that I've been in the industry, I raised my hand a lot and it was like I said, really fortunate to have leaders and mentors that gave me opportunities. I quickly moved into an operational role within six months of being in the company. So moved out of finance and became director of operations, and I finally started learning what the heck field service was.

Sarah Nicastro: By immersion. Right. Okay. So you went from finance to operations and then what was the progression from there?

Kristen Nowak: So like I said, we were just one service company at that time and I was still learning so much. I mean, I would venture to say I'm still learning so much, but I started riding along with technicians and kind of learning what their world looks like. I started leading our organization just in that company in Chicago, and at that time our parent organization was starting to look to acquire and I thought that sounded really cool. And so I raised my hand and said, hey, can I be a part of that first acquisition that happened to be out in the Boston area? And they said, yeah, sure, you can come along. And from there on, we kept doing acquisitions a couple every year, and I was fortunate enough to be a part of them, but every spot along the way, learning about the technicians in that market, the customers in that market, learning what the team in the office did to make service work, I just kept sitting with different roles and taking on more and more as I learned more and more about business.

Sarah Nicastro: Yeah. So 13 years ago when you joined the company, it was one business in Chicago and you said today it's how many?

Kristen Nowak: 30.

Sarah Nicastro: 30 across 119 locations is what you said, right?

Kristen Nowak: Yeah.

Sarah Nicastro: So immense growth.

Kristen Nowak: So Canada all across the US. Yeah.

Sarah Nicastro: Yeah. Which is just really interesting to think about how you've grown along with the business. So I'm sure that's been really fulfilling. And also to your point, given you a lot of opportunity to learn different things. When you think about, I always say when you come across people today that have been with one company for 10 years, 15 years, 20 years, it makes me think that either they're someone who loves complacency, which typically that's not it, right? Because even if they did, that might not be what the company needed, but more so it makes me think that they've had a lot of opportunity to continually learn and grow. So because if you hadn't had that where you are, at some point you probably would've felt you outgrew the opportunity at the company and you would've tried to go find that somewhere else. So it's really cool that you've been on these parallel tracks of the company growing and you being able to grow right alongside it.

Kristen Nowak: Well, I think it's interesting because when I first started, we were a very small company. We had less than 50 people in our organization, and I was the person in charge of trucks. I was the person that onboarded the technicians and other staff members. I was the person that reviewed payroll. I was the person that talked to customers. I was the person that dealt with the employee problems. And as you've proven, you can't do that. You can't be everything to everyone. And so you start bringing in team members that are experts in that area. And I have learned so much one about all the things I did wrong in the beginning, but learned so much about each running those areas of the business.

We have to great HR partners, great IT partners that I should not be setting up people's email accounts and fixing their printers, but we have great marketing partners and I'm still learning so much. So as the business has grown and I've grown along with it, I've just had exposure to people that are experts and just wonderful in the areas that they focus on. That's been a great opportunity for me.

Sarah Nicastro: Yeah. Okay. So here is my next question, which is I can't remember what the overall statistic you always hear is, but you hear that women will only apply to a role if they have, I think it's like 100% of the qualifications and men, it's like 60% or 50% or something. And so we know that there is a real difference there. But what's interesting to me about your story is how you say you kept raising your hand. So I'm sure some of those things that you were raising your hand for, you weren't super experienced in, you wanted to learn about them. So there's two tracks to this.

One is the way, and I think we tend to, as women that have achieved a certain level of success, oftentimes I hear us defer to the one path which is, oh, it was great because I was given so much opportunity or I lucked out, et cetera. And so that is one side. There's sort of situations where you find yourself in the right place at the right time, or there's people within the organization that saw something in you and wanted to say yes when you raised your hand and give you those opportunities. But what I want to talk about that I don't think we talk about enough is what made you raise your hand? What made you have the confidence to do that or the desire to learn?

Kristen Nowak: And it's the best piece of advice I ever received in business. And it was from my boss at the time. And before you become a leader or a manager, you generally are portraying the qualities that are needed. So you're generally doing part of the job before you actually get the job. And so when the position for director of operations came open, my boss at the time said to me, what do you think about it? And I said, I'm not ready. I don't know enough about the industry. I'm going to break the business. My kids are too little. I had a hundred excuses of why I wasn't ready for the role, and it was a male leader. And just the great advice he gave me is he said, yeah, you're not ready for it, but when you're ready for it, somebody else will already have it.

So you can learn on the job, have the confidence to jump in, ask questions, and be continually learning. But don't wait until you're ready because when you're ready, it'll be gone. And that really motivated me. The other thing that motivated me was it actually has the name, he actually has the name, I have a son, one of my sons is special needs. And I knew that I've always known my why, and I knew that I was the one that was going to have to support and care for him long term. And every time I wanted to have kind of a crisis of confidence, I looked at him and was like, nope, I've got to do it for him and I've got to do it for my other kids. And so it was those two things, looking at my family and knowing that I had to protect them into the future.

And then hearing this, the best advice ever is don't be there when you're ready. Those two things forced me and it was way out of my comfort zone, raising my hand was not a natural to me. So yeah, it was a lot of internal pushing myself saying, remember those two things and that's what did it.

Sarah Nicastro: Yeah, I was just reading something in the last few days, and I'm not going to be able to think about where I was reading it or anything, but it was talking about this idea of most people that you see doing these things that you may sit back and admire or think, wow, look at that journey. It isn't comfortable for them. They're not doing it because they have some innate absence of fear or some right superhuman confidence. They're pushing through that fear, they're pushing through that discomfort to really put themselves out there. And I think in a lot of ways it's growing a muscle. That first time that you raised your hand you're probably sweating and I mean it was so hard.

But once you do it a couple of times and you see that nothing bad happened, maybe some really cool good things happened and you're learning, and then the next time it's a little bit easier and a little bit easier. And I think sometimes the only way to grow your confidence is through action. I can't just to that person's point, sit around and wait until you feel ready, because that might never happen. So I think that is really good advice. And I also think it's commendable that you took it and you did the hard work of pushing through your own discomfort to be able to take the learning opportunities that you did.

Kristen Nowak: And I remember October 4th, 2010, my first day at this job, I sat in the parking lot 10 minutes before I was supposed to walk in and said, okay, Kristen, you're going to go in, you're going to be different. You're going to talk to people. And it was so far out of what I was used to, and I'm so glad I did because having just that push of that of courage, that 30 seconds of courage really changed my life.

Sarah Nicastro: And I think it's really powerful for you to talk about that today because as Kristen who's the president, there are people that are coming into their careers that wouldn't know you had those feelings if you weren't genuine about it. And so sometimes that's so helpful to someone because they see the current version of you and think, oh, she's probably always been confident or courageous and knowledgeable on X, Y, and Z. But no, you had to give yourself a pep talk in the parking lot, just so many other human beings.

Kristen Nowak: It's the power of vulnerability, I think. When you're willing to be vulnerable and tell people your story, it brings them along with you on it.

Sarah Nicastro: Absolutely. Yeah, I'm a big fan of vulnerability. I think we're all human beings doing our best and trying to contribute. And the more we can share those experiences, I think it helps us and it helps others. So very good. So I want to talk about when we spoke to prepare for this, we talked about the fact that in the beginning, especially in 2010, you were very often the only woman in the room. And so I want to talk about two sides of that. So one is what did you find hardest about that? And then the second is, was there anything you liked about it or any part of that that you felt that gave you an advantage or an opportunity?

Kristen Nowak: So I think what was hardest about it, and it still happens a lot because it's a very male dominated industry that I'm in. And I think what I struggled with a lot and still do some days is feeling like I deserve to be in the room. Whether it is a room with our manufacturers and customers and other leaders in the industry, or if it's a room sitting talking with our technicians and our dispatchers, when we talk about the leaders in the industry sitting in that room, I didn't grow up through the industry, I was an outsider. So feeling like the piece that doesn't belong in there has always been something that I struggled with. And in the same way, sitting and talking to technicians and dispatchers when I've never done that job, I always struggled with that too. And the thing is that struggle is all on me.

Nobody really made me feel that way. That goes back to feeling like I didn't have the skills and the qualities to do that job. So nobody really made me feel that way. I can't say that the men in the room looked at me like what is she doing here? So that was more a confidence thing for me. But if you flip that over and say, okay, what opportunities did that bring to being one of generally the only woman in the room? And I think bringing the perspective, the unique perspective that I have of being a woman in a male dominated industry, being a wife and a mother, being an accountant, all of those different skill sets that I bring into the room offer a different perspective generally from the people that we're already sitting in that room. So I think that just level of thought diversity really made the companies better, brought different ideas to the room, brought that different perspective that I think as we continue to evolve as an industry is really, really important.

Sarah Nicastro: And that's where I kind of pushed you in the direction when I asked you about raising your hand to talk about within you, what did that take? But this is where we have to give the company credit as well because one, they were receptive to allowing you to have those learning opportunities and probably seeing that if not the pep talks you had to give yourself, recognizing that not everyone has the drive or the initiative to want to raise their hand and always say can I learn this? Can I do this right? Because there are situations, and I've had conversations with women that have been in similar situations as yours in those early days when they were the only woman in the room and they were treated in a way that reinforced that internal dialogue of I don't deserve to be here. And so this is where it's a combination of both.

It's a combination of pushing out of your comfort zone, but then we have to as organizations recognize that value of the diversity of thought and be open to hearing different opinions, perspectives, experiences. Because if they had been at all closed-minded to that, it would've shut you down and you would've probably ultimately went somewhere else or whatever would've happened, but they were open to it. So it takes that teamwork of being more open to things that are different than the historical norm and then forcing yourself to build that confidence of, no, I deserve a seat at the table just as much as anyone else here.

Kristen Nowak: So I am fully aware that there are so many women that went before me that didn't have the kind of support that I had. I had the support of the men that I walked into the room with from our organization, bringing me along and exposing me to those opportunities. Without that, I don't think as many doors would've opened for me, but because they brought me through the door with them, I was able to learn and grow. And now I sit at a place where I am not afraid to give my opinion, I am much more confident and comfortable to have those discussions and to walk through the door by myself. So that's not the case. I'm very fortunate to be in a company that had that level of support.

Sarah Nicastro: But they're very fortunate as well. And that's the thing is this isn't about, we're going to talk in a minute about diversity and different types of that, but this isn't about them bringing you along for the ride. It's about them understanding the opportunity to grow through involving people that were different than the historical norm. And the other thing is being in that situation, that mutually beneficial situation where you had the opportunity to grow, they had the opportunity to gain new perspective and skills, and you're also now sitting in a position where you can help others walk through that journey. And that is also really powerful thing.

Kristen Nowak: I think there is a piece of this conversation that you have to do that deliberately, you have to deliberately think of I want different perspectives and different ideas in the room and while combining that with the best person for the job as well. And so bringing those two together, always requiring that people are hard workers with high levels of integrity and commitment, but looking outside the box of what does that person actually look like?

Sarah Nicastro: I think we're at a point going back to the title of the podcast, what got us to where we are today is not what will take us to where we want to be. And I think we're at a point where there's this discrepancy in some cases of companies saying, and I'm not even talking about diversity necessarily right now. I'm just talking about overall, right? Saying they're open to change but not really meaning it. So in your situation, if we look back, that could have been you had an opportunity to sit at the table, but when you brought a different perspective, they could have very easily defaulted to, oh yeah, no, that's interesting, but we've always done it this way. So we just want to keep... So there's kind of this disconnect between recognizing we need to change.

But then really what does it mean to commit to getting uncomfortable and looking at just because it's always been done this way doesn't mean that's how we need to keep doing it, et cetera. I think a lot of people have some of those feelings you had of am I cut out to be here? Do I have the same right to having a voice and stuff like that? I know that today when I speak at a conference or give a keynote, I usually have people come up to me after and say, I enjoyed that so much because it felt so authentic. And that's for me, part of my journey that took building confidence and courage because early on I also was often the only woman in the room presenting to a room full of men. And I would let those feelings get the best of me to where I felt like I had to pretend to be something else.

And it took me some time to realize, no, I mean we're all smart in different ways and we all have different areas that are just not our strengths. And if we can just be ourselves, that's what brings something special to the table. And as soon as I started just letting go of what I felt I should be or needed to be or feeling like I needed to pretend to be smarter than I was in a certain area and just started focusing on being me, that's when I feel like I started actually being able to have an impact.

Kristen Nowak: Well, it's distracting and time consuming to try and wonder who you need to be that day to please the masses. That is incredibly time consuming. So when you just decide to be yourself, it just opens so many more possibilities and for you to focus on what's really important and what needs to get done.

Sarah Nicastro: But to your point, and going back to this parallel track, I have been a part of organizations that did not like for me to be myself or to have opinions that were outside of the accepted consensus. And when you find a place that really values that diversity and thinking and respects different perspectives and opinions and wants to blend that to figure out the best way forward, it makes an immense difference. So that kind of leads us to this next point, which is one of the topics of conversation that we experienced at the Connect event in Austin was around one of the biggest topics of conversation on this podcast, which is how do we bring in new talent to field service and to these roles? So we'll talk a little bit about this, but to start, can you just talk a little bit about how this challenge is impacting your organization specifically?

Kristen Nowak: Yeah, I mean this is something that I talk about every day, tends to keep me up at night. We are so far behind in recruiting and retention of technicians into this industry. It is a really scary thought of to see what 3, 5, 10 years down the road looks like if we don't change our way of thinking about this. To put it into some data in generally, we are eight days out on service if somebody calls now, that's not what happens in reality, we move things around. But if you just do the math problem and say the number of calls we get done in a day versus the number of technicians in our world, this is how long it's going to take us. This is how much of a backlog of work there is. And that's not me just speaking for unlimited service group. I have talked to leaders across our industry that are experiencing the same thing.

So we are never going to have a great customer experience if we can't tighten up those numbers a bit. And the other challenge is that when we are successful at bringing people into the industry, we are really bad at keeping them in the industry. We're not doing a great job of retaining talent. So there is so much we still have to learn and change about what we think technicians. And I'll expand that beyond, and what employees want today because we are not going to be able to serve the customers in the way that they expect and that they need in order to keep their kitchens up and running if we don't at least take a step towards solving this problem. And the ways we did it 13 years ago when I started are not the ways that work today.

Sarah Nicastro: So going back to the title of the podcast and thinking about what got us here versus what will lead us forward, what would you say about how diversity factors into that?

Kristen Nowak: Yeah, so I think there's a practical way of it. There's the practicality of we need to reach more people regardless of race, gender, any thought, we need to reach more people in order to educate them in order for our success to continue. That's just the practical nature of it. But there's also a thought around it that what worked attracted people into the industry, the type of people into the industry then is that type of person doesn't exist as much anymore. So back when schools used to have shop classes and people were attend to move towards that direction, it was much more accepting kind of back when I started and beyond when I was in high school as well. It was moving into the trades was not a default for someone that couldn't get into college or didn't want to go to college.

It was an acceptable, really sought after valued role. And then we went through this phase of, and we're still going through it where college was the only acceptable role, moving into post-secondary school that was college and now it's caused us this problem where we don't have those people that like to fix things anymore that are more inclined and well, they still like to fix things, we haven't taught them anything about that. And so we need to create those people. We need to teach those people that this is a really valuable industry to go into. It's what keeps the world running. We don't have people that can fix stuff. How do all the things around us happen? So we have to teach people again how valuable these roles are. And that is across gender, across race, that regardless of that, we need people to understand how valuable this is.

Sarah Nicastro: And I know you mentioned to me a book you had read recently on generational diversity. And so that's another area, again, I think the companies that are making the most progress are making that progress because they're not looking at diversity as one flavor of it. And they're not looking at it as, okay, well we have to do this either because society tells us we should or just because we need bodies in the door. We need to do this because we can learn so much. Not only because it's what it will take for us to continue to be able to meet customer demand, but also we can be a better business if we value diversity of thought and what that looks like for all of these different types of people.

Kristen Nowak: So it's really interesting, the book that you referenced was a book called The New Diversity. And what it was about is the diversity of generations. So what baby boomers value is not what millennials and Gen Xers and Gen Y, that's not what they value. And so when I got into this business, what the people coming into our industry valued from what their career looked like is totally different than what those coming into the workforce now look for. And we haven't adjusted what we're giving them. We're still basing our benefits, our pay, the structure of our job on what has always worked, and it doesn't speak to a new generation of employees. And so if we are stuck in that way of thinking, if we get somebody in the door, they're not going to stay because we're not valuing what's important to them.

We're not giving the benefits that's important to them. And so bringing a more generationally diverse thought diverse team into the company from a leadership level all the way down is going to have you start realizing what things that the new workforce coming into the industry values. It's so important if you want to start building for us the next generation of technicians that's going to stay 5, 10, 15 years.

Sarah Nicastro: And I think sometimes what happens here, when we spoke to prep for this, we talked about the fact that even within field service, there's a lot of different types of field service. There are field technicians that they do need to have a college degree or they are working in this type of environment, et cetera. And we talked about how for you, it is very much the traditionally viewed as more blue collar type service work. It can be dirty, it can be grimy, et cetera. And so sometimes I think organizations that fall into that category, and I hope you don't take offense to this, but almost use that as an excuse to not get creative because it's kind of like, it's this self-fulfilling prophecy of, well, this is already a challenge for everyone. And then you have these organizations where they're going to work in an IT environment, and of course they would just pick that and we're doomed.

And it's not to ignore the realities of those challenges, but it also can't detract from the responsibility the organization has to adapt. And I think that what I try and push or say to people is, no matter what your circumstances, there are ways you can evolve and improve. There are ways for you to change and make these roles more appealing for the candidates you have today if you want to. You just can't come at it from a mindset of, well, that would never work.

Kristen Nowak: That never works for us. And it was kind of a light bulb moment sitting in that conference with you, we were all talking about this challenge of bringing new talent into the industry, bringing into service. And I remember sitting there thinking, well, thank goodness it's not just me and everybody's struggling with this. There's comfort in numbers. And then I was like, oh, wow, everybody is struggling with this. We are all competing for the same group of candidates. And I did, I had the thought you just said the limiting thought you just said, wow, I don't have the best story to tell. We are working in chaotic, dangerous situations in sometimes dirty kitchens and at all hours of the day and night on holidays and on weekends.

It doesn't feel like a great story to tell, but it's our responsibility as leaders of the industry, those that are tasked with growing our companies to find the story that's compelling and I know this is a great industry. I know that they're great people in this industry. I have to tell that story instead of saying, hey, you want to come work for me and work on a fryer? It's got to be a better story than that, and that's our responsibility to your point, we can't just sit back and say, this is too hard.

Sarah Nicastro: And this is the intersection back to valuing diversity of thought generational and otherwise because if you're willing to move past that initial uh oh, like we have a hard challenge here, which again is true, but if that's the challenge you have, then if to move past the emotion, figure out how to start solving it. If you really value different perspectives, then it gives you the ability to go out and start engaging with different groups of people that you could potentially bring into this space and just initially do so with the objective of understanding what do they think of it? Maybe you start there, not even what do they want out of it, but what do they think of it and what narratives do you maybe need to work on shifting or telling the story better?

And then what do they want? What's important to them, what would make them stay at a job or not? And that's the insight that if you're open to it can help you start getting creative internally about what you can craft into something that is compelling to the people that you want to bring in. And yes, it's a lot of work. I mean, there's no way around that, but to your point earlier, your success in three to five years depends on doing that work. So it's hard work, but it's important work.

Kristen Nowak: And I think to your point, I think the most important thing that we can do to get past this is to listen. And then the second most important thing that we can do is to act, to go out and do the next right thing that speaks to our team members and starts giving them the things that they value and changing our organization so that it's attractive to future generations and sustainable for future generations.

Sarah Nicastro: Yeah, I always think to me, one category you always hear people really value today is flexibility. So I've heard plenty of service organizations say, well, we can't offer that service is 24 hour a day business, okay, yes, but are we picking this apart in the right way? Yes, it's a 24 hour a day business, but that doesn't mean every employee you have needs... And this is what I mean about people get very set in well, for the last 20, 30 years, we've had a team of people that worked this schedule and they just don't necessarily think, well, what if we did this? What if we did a rotation? What if we did whatever? And that's where I urge people to, you got to get creative. I mean, if the game has changed, you have to change with it. And it's not about continuing to where's Waldo find the people that will fit into the mold we've always had.

Kristen Nowak: Break the mold.

Sarah Nicastro: Yes, exactly. Are there other things that you think about when you think about figuring out the story you need to tell or figuring out how to accommodate what people value today? Are there things that come to mind?

Kristen Nowak: Well, I think you just hit on it a little bit. When I first started, I could not give away enough overtime for an example, everybody wanted the overtime hours. When I hired somebody new, they were like, well, what's that going to do to my overtime? Everybody filled the on-call schedule right now. I can't get anybody that wants to work, be in an on-call schedule or work overtime. And so it just shows that at one point they valued the saving of money and earning as much as they can, and now they're valuing more time is more their currency. I mean, you still have to have a great pay and all the benefits that go along with that, but you have to be able to listen to, okay, now time is more valued. So to your point, what is the end state? What does service utopia look like for a technician?

And then start working backwards to the small steps that you can take. So in order for me to have, if a flexible schedule is the end state, in order for me to have that and offer that, I've got to have this number of technicians, this volume of technicians, then I've got to develop what those shifts are that we can still meet the customer need, and then I've got to find people that can fit into them. So just do the next right thing to find what could get you there. Because you can't get there overnight. You can't say, tomorrow I'm going to offer flexible schedules, or I'm going to offer zero cost insurance or unlimited PTO, or anything like that. You have to start at what's the next right thing that I can do to start working towards that and bring those team members along with you in that conversation so they know what you're working for working towards for them. That's going to build a lot of value and a lot of loyalty, them seeing the process and the progress that you're making towards making their work environment better.

Sarah Nicastro: No, that makes perfect sense. If you think about how we started this conversation, what got us to where we are today isn't what will get us to where we want to go, are there other areas that you feel leaders need to be really thinking about and reflecting on?

Kristen Nowak: Well, it's a great question, and I think it all comes back to value. It really all comes back to what your team members value. So is it time, is it benefits? Is it pay? Is it work environment, work from home or work from the office? I think the pandemic it was such a challenging time for so many people, but it also taught us so much about our team and that we really can trust them to know what is best and to do the hard work for our organization. So I think what we have to do better as an organization, as an industry, and I would say for everybody, is listening and asking people what would make a successful work environment for you?

What is it that keeps you sticky to a company and staying around? What do you think we need to do to grow? I mean, all of these people have great ideas. We just rarely ask them. So invite others into the room with you and listen. And that's where, back to my early days where I was the payroll person and the HR person and the customer person, you don't need to be that anymore. Invite these people along to have the conversation with you, and you're just going to get better from there. More is better, together is better.

Sarah Nicastro: It's just like we said in the beginning, it's about valuing different perspectives. And to your point, I think if you're really open to listening to those different perspectives, it will guide you toward what the things are that you need to get creative about and work on changing. All right. Kristen, last question is 13 years in field service, and what is the biggest lesson you've learned as a leader in field service?

Kristen Nowak: Oh gosh. That I'm always learning. That I'm always learning, and that you can never have enough good people around you. There's no room for ego, there's no room for arrogance, and you're better together than on your own.

Sarah Nicastro: Yeah, I think that's great. And I think that mentality of not only mentality, but hunger to always be learning. I mean, that's what keeps people relevant over a long period of time. The worst thing you can do is feel like you've got it all figured out, right? If you know don't, and no one ever does, then you just continue that journey of soaking up the different knowledge and experiences.

Kristen Nowak: It's hard because you just like, okay, I know this. I'm just going to get this done. I'm just going to move forward. I'm just going to make this decision. When you don't bring people along with you, the unintended con consequences that you can alienate them. And while we always have to, as leaders, we're in the business of making decisions and setting strategy, and so sometimes you have to be the one that makes that final call, but it's always better when you brought people along with you.

Sarah Nicastro: Absolutely. All right. Well, thank you so much for coming and talking with me. I really appreciate it.

Kristen Nowak: Yeah. Thank you so much for having me, Sarah. I enjoyed it.

Sarah Nicastro: Absolutely. You can find more by visiting us at futureoffieldserviceref.ifs.com. I want to make sure you are aware that we have recently introduced the Future of Field Service Insider. If you subscribe to the Insider, we will make sure that every other week we deliver the latest Future of Field Service content to your inbox, along with some exclusives for our community. We also have announced the dates for the 2023 Future of Field Service Live Tour. We will be in six countries between March and September. So have a look at the schedule and register for the event nearest you. The Future of Field Service podcast is published in partnership with IFS. You can learn more at ifs.com. As always, thank you for listening.

March 1, 2023 | 28 Mins Read

Macro Themes Making Service More Strategic

March 1, 2023 | 28 Mins Read

Macro Themes Making Service More Strategic

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Sarah welcomes Curtis Novinger, Regional VP of Service, P3 Services to discuss the trends he sees when evaluating businesses for investment on how companies are embracing opportunities to innovate and make service more strategic.

Sarah Nicastro: Welcome to the Future of Field Service podcast. I'm your host, Sarah Nicastro. Today we're going to be talking about some of the macro trends that are involved in making service more strategic. I'm excited to be joined today by Curtis Novinger, who is the regional Vice President of Services at P3 Services. Curtis, welcome to the Future of Field Service Podcast.

Curtis Novinger: Good to be with you Sarah.

Sarah Nicastro: Thanks for being here. So before we get into our topic for the day, tell our listeners a little bit about yourself, your role at P3 and your sort of journey in field service.

Curtis Novinger: Sure. Well, currently I'm Regional Vice President of Service for P3. P3 is a family of companies across the United States. We have HVAC, plumbing and electrical businesses, primarily in the plumbing space right now. And my job is to support those companies and help them grow and provide services that help them get better. So prior to joining P3, I was Vice President of Service Operations for Comfort Systems USA. That's about a $3 billion business. They have 40 companies nationwide, about 140 locations. I worked with teams in sales, operations, and then the last three years I was there, I was doing a lot of equipment as a service development, developing products and remote monitoring systems that allowed us to offer services, full service agreements. So prior to that, I got into the industry while I was in architecture school, I worked as a plumber nights and weekends. And when I got out of school, instead of going into private practice, I started a plumbing company. And then I sold that company in 2008 to Comfort Systems USA. I've got three kids, two of which will be driving next week.

Sarah Nicastro: Wow. Next week.

Curtis Novinger: I was doing parallel parking last night in the dark with trash cans as cars because we hit some trash cans. So I'll have a lot of extra time on my hands, but my insurance rates are definitely going to go up.

Sarah Nicastro: Wow, that's exciting and scary all at the same time. Okay. So when we were preparing for this podcast, we talked, you have quite an interesting background in terms of your experiences growing up and through school and how that, we talked a little bit about how maybe that impacts your viewpoints and how you look at things going on around you. Can you share a little bit about that?

Curtis Novinger: Well, I never thought that I would be a plumber. My dad and family, we worked on apartments that we purchased when I was a kid, so I would follow him around and fix air conditioning units and that kind of thing. But my mom was an opera singer. She passed away here a few months ago, but she was, had a master's degree in opera from Columbia University in New York, and dad was an international banker. So my parents got divorced. My mom said, business is evil, you should either play the violin, do something else. And so I went to school at McGill University and studied philosophy for four years, which I realized unless you don't want to be a lawyer, it's very difficult to get a job. And I had that same struggle. So kind of went back to what I did with my dad as a kid and started fixing houses and that's how I supported myself and until I went back to school.

But I think I studied philosophy partly just to try to understand some of the patterns behind how people think and what drives them. And I do that at work. That's just kind of naturally how I think and definitely enjoy identifying patterns in how the businesses operate and just how in general the market works mostly to identify biases that give people, if you recognize you have a bias and give you a competitive advantage if you can address it. So that's sort of what I've done over the last few years, both identifying ways in helping customers in unique ways, but also to build business strategy in a way that you're working in the blue ocean rather than staying in the red ocean with all the rest of the competitors.

Sarah Nicastro: And maybe that's how we got on that topic. My undergrad was in psychology. And I mean similarly, I feel like it leads into everything I do because I'm just very interested in understanding how people are thinking and how their mind is working. We had a podcast last week with an author who is a neuroscientist by trade and talking about change management. And it was so interesting to me to put that context to a lot of the challenges that the people we talk to regularly here have in terms of, well, we're trying to change X, but we're facing so much resistance. And then look at picking apart what's behind that. And I do think it's really interesting and it's a level of examination that maybe the average bear doesn't bring to those situations. And so having those conversations, understanding those perspectives can be so helpful in then working through some of those challenges. Or to your point, developing strategy or understanding biases, etcetera.

So, yeah. But then to your point, you know, you end up places you didn't really anticipate being and life unfolds and takes you in wild directions. But that's cool. Very good. Okay, so in your role at P3, you're helping evaluate a lot of different investments in service businesses. And so, kind of taking a look at not only to your point, how can we differentiate or how should we set a strategy that that's in the blue ocean, not the red ocean, etcetera, but really just taking in what's going on in these different organizations that you're having a look at or evaluating, etcetera. So, when you think about what you're seeing and also the experiences you had at Comfort Systems, so inside of the business, where do you think we are on this evolution of making service more strategic? So moving away from the very tactical break, fix, transactional type of service to what I know, you and I both have opinions on what it can be.

Curtis Novinger: And I think I can speak to my industry specifically. I think we're way behind a lot of the adjacent markets like aerospace, for instance, they're way ahead of us in that regard. Our industry is still very fragmented, which is partly why there's so much interest from private equity. There's about a hundred thousand plumbing contractors nationwide, give or take. And it's going up. It's becoming more fragmented even though there's a lot of consolidation. So what that means is that most of the businesses are small. They're run by a service plumber that struck out on his own, kind of like me. And he's not only just the plumber, he's the accountant, he's the bookkeeper, he's dispatching, and there's not a lot of time in a business like that to work on a business. So strategic thinking, if it didn't take place before he started and got in that gauntlet of meet and payroll every week and collecting money, then it maybe doesn't happen for quite a while.

But there's certain things going on in the market right now that's changing that at that level, that million to $5 million business, which makes up the majority of the market. Then there's the field service management software that's out there, Service Max, Service Titan, is doing much better job not just providing dispatch and routing, but they're offering workflows that allow you to structure a business in the most economical fashion. They have much better financial reporting. A lot of the dashboards give you insight. And once you have that system set up, that kind of strategy, working on the business, just becomes a natural part of how you do the work. So that effort, by and large, has been done by people outside of the business using processes from other adjacent markets to apply them to the plumbing industry.

The other thing that's happening, or I guess one of the things I said about, unless you start the business with a specific strategy in mind, a lot of times you're just being a generic plumber. So I look, when I'm looking at plumbing companies, I like to see a company that has a unique offering. Lots of businesses, you see the trucks on the street, they say they do everything. They think that that's a positive thing. They do residential and commercial, they do drain cleaning, they do boilers, they basically fix everything. Well, if you're working on everything, it's hard to be good at any one thing. So companies that start out, at least with a unique offering or a unique tool or a service that's provides them a competitive advantage, oftentimes they're built strategically from the get-go.

But as far as transitioning from break fix model to equipment as a service, we're a long ways away from making that happen globally in the industry, probably because of the fragmented nature of the business. And so a few of the companies that start out offering equipment as a service, and they evolve very slowly. I think the pressures in that regard are coming from outside the industry. So you have first tier distributors that are getting into equipment as a service and they're becoming direct competitors with their customers, the subcontractors. But that's becoming more commonplace. And I think that that's happening up the food chain.

So before that quote, say you're building a high-rise apartment complex before the actual construction documents get sent to the subcontractors, the equipment rooms are being pulled out of the scope of work and being given to a first-tier distributor. And so the subcontractors don't even see that scope of work. So they don't even know that their customers are, or their vendors, are actually a direct competitor. We have a lot of that here in central Texas with central plants being offered as equipment as a service and plumbing construction companies, they're putting in the piping, they, they're excited about doing the work, but the reality of the fact is that the highest profit scope of work in that high-rise building is the central plan.

Sarah Nicastro: Yeah.

Curtis Novinger: So I don't know if that answers your question about strategic versus tactical.

Sarah Nicastro: Yeah. No, it makes sense. So in plumbing, specifically, there's a long way to go. And it sounds like with what you're telling me is happening, that the progress that is being made is starting on the commercial side. Right? I mean, it's talking about building these new developments and that's where this concept that is likely mutually beneficial for the people that are building the infrastructure versus the suppliers that are offering the equipment as a service, even though I know they're leaving the contractors out of the equation. If you just take it a step up and look at how that relationship is developing, the people building these buildings know that there's value in being able to consume the equipment as a service. And the suppliers of that equipment are recognizing that even though they're not, the plumbing contractors aren't always recognizing that those suppliers are becoming a competitor. Right?

Curtis Novinger: Correct.

Sarah Nicastro: Okay.

Curtis Novinger: And 10 years ago, if we came up against, say, a train distributor in a new construction job and we realized they were also bidding the equipment, we'd call them and say, "Hey, we're a bid on this," and they would back out. Now, they're not in that situation because that scope of work isn't even offered to us. And so we're not in a situation where we can ask them to back out because we're not competing with them. They already have the work.

Sarah Nicastro: Right.

Curtis Novinger: That's how they're dealt with it. And that was 10 years ago. Now it's just a generally accepted practice. And I think, in some ways, subcontractors haven't realized how much work has stopped coming to them.

Sarah Nicastro: Yeah, that's interesting. So let me rewind back for one minute and then we're going to come back to talking a little bit about the as a service. So when you're looking at different organizations for P3 to potentially invest in, I want to talk about what stands out to you in terms of indicating that they're a good candidate. And then, on the other hand, what are some red flags that make you think, "We'll stay away from these organizations?"

Curtis Novinger: Well, when we do our market analysis of businesses before we even call the companies, we're checking the size of the business, the financials to a certain extent, and identifying whether it fits our investment model. But once we get to a point where we're doing site visits, if I'm going on a site visit, I'm looking for things like a lot of trucks in the parking lot. If there's a bunch of service vehicles that aren't out on the road, they're sitting there, that tells me about how the business is being run.

If I'm meeting with an owner, if they answer their phone every five minutes and they can't take an hour away from the business, that tells me about the fragility in some ways of the business. When we look for a company, we're definitely looking for businesses that have some kind of succession plan. They have a strong second that's working in the business, and the owner is in a position where they can step back and the business will continue operating without him or her. Things that concern us, believe it or not, rapid growth over the last year or two is something that we worry about. Sometimes it takes a while for growth like that to be absorbed into the natural processes of the company, and it can put it at risk of falling back to reduce in size once we purchase it. So we like to see regular sustained growth over a number of years as opposed to rapid growth over the last couple.

Sarah Nicastro: That makes sense.

Curtis Novinger: We look at employee retention, got great employee retention, says something about the culture. And then, of course, once we start getting into the due diligence piece of it, we're looking for any kind of legacy legal issues or high risk safety, OIR ratings, that kind of thing.

Sarah Nicastro: Okay. All right. Okay. So let's go back to talking then about some of these macro trends that you're watching, that others are watching, that are going on. So going back to the conversation around as a service. So, we started talking about where things are today, particularly versus 10 years ago, and what's kind of going on right now at the equipment supplier level versus the plumbing contractor standpoint. So, what I'm interested to hear your thoughts on then is, what is the untapped potential? How can this play out? Because I obviously don't know a ton about the plumbing industry, in particular, and so I'm thinking, I'm interested to hear how this is going to evolve or how you think it could evolve in the most positive way. There's obviously a lot of opportunity, and so whether it takes 10 years, 20 years to really see that opportunity land, what do you think is going to happen?

Curtis Novinger: Well, so I think of that in two terms. So in terms of what's keeping the brakes on growth and then what are the opportunities for maybe a different strategy or some kind of new business, new growth and it's no secret that the skilled labor shortage is causing an issue. So I feel like companies that can solve that problem better or faster or uniquely are in a competitive advantage and then have the opportunity to grow. It's 47% of the workforce is female, but less than 2% of the workforce is in our actual trade. And even smaller number is physically working in the field. They might be in dispatch or in accounting, but they're not working with their tools. That is a huge miss on our part. And you shouldn't be talking about a labor shortage without addressing that opportunity to fix it. How do you reach out to women and get them excited about working with their hands in the field?

One of the effects of having a bunch of small businesses in the plumbing industry is that the people with the financial decision power come from the field, because the companies aren't large enough to go hire a CPA and put them in a position where they're an operations manager or a CFO. It's a small business of maybe 10 employees. So if the majority of your industry is made up of small businesses in the one to 3 million revenue phase, then, and most of the decision makers are men because they came out of the field, then, the industry as a whole, has a bias against just seeing the world through a male lens. So not only is it an opportunity to solve this skill shortage by bringing women into the industry, but you bring in a whole new perspective of how to run a business, how to treat employees, what kind of strategies to use.

And in the residential space, 85% of the decision makers in the home are women. And so, why wouldn't you have women running the company so that they can communicate with their customer in a way that men just don't know how to do? So I think that's one opportunity. One of the, I was thinking about this, and of course there's a whole bunch of obvious answers to this question, but one of the things I've seen happen just in the last two years not only in Texas, but throughout probably the world, is two weeks ago we had an ice storm. I didn't have power for eight days, didn't have water for a while. It's not a good thing for your wife to say, "You're a plumber and you're the only one on the street that doesn't have water. Go fix it." But what is that? And two years before that, in Texas we had this massive snowstorm.

So within the space of two years, we've had two storms that were worse than anything else that's happened in the last 100 years. What's happening right now is the insurance claims are finally hitting market two years later. And so premiums are going up and people that are building high rise buildings have risk management programs and they're saying, "Look, unless you have a smart pipe system or this project, your umbrella coverage is going to be 10 times less or your premium's going to be more, or your deductible is going to be a lot higher." We just started construction on a 53-story high-rise apartment in downtown Austin, and the umbrella for leaks was $40 million. But then when they started doing the risk management program, they said, "Well, no, we're going to reduce, unless you have some way of shutting the water off if there's a leak, your umbrella coverage is $4 million."

Our personal deductible was $50,000 prior to the storm two years ago. It's now $250,000. So what's that mean? Where does that, what's that do? I don't think that trend's going to change. We're going to continue to have unusual storms that are going to cause wide scale damage. Insurance premiums will continue to go up. And so where's the opportunity for plumbing? Well, obviously, applying technology to piping to predict failure is an opportunity, and that's something that we've gotten involved in pretty heavily. We're installing systems on our construction sites that allow us to turn the water off at night if sensors, and we're also metering the water to determine whether or not there is a leak. And then we have a whole team of people that are monitoring those systems remotely. And we're offering that service as, that equipment as a service. So we're offering that as a program where you hire us for X number of dollars per month and we'll take care of the security of your water system while the construction is in service.

So other trends, ChatGPT, I'm going to throw it out 'cause it's all over the market right now. So how does that apply to plumbing? Well, a lot of decisions are made online right now, and when we hire a marketing company, unfortunately, they tend to create organic content that is just rotten because they have to throw in all these keywords and it has very little value. And what I see happening is that content's going to get better, but it's also going to become more common. So organic search is going to change rapidly over the next few years and figuring out how to be successful in that space is a limiter to growth. If you can't figure out how to be one of the top 10 search results for a new customer, then you're going to, you're not going to have a growth opportunity that you should have otherwise.

So I still think that there's space for true content and not only just to increase your results in Google, but to build culture and build family, build rapport with your employees and coming up with a program to generate that kind of talent content, celebrate your employees, document your potlucks and show people that your training opportunities is increasingly important. But ChatGPT is going to make it easier. We were just writing bios for our guys. So one of the opcodes when we dispatch the technician that sends a picture of the technician that's going and then a brief bio of who they are.

We use ChatGPT to do that. It took us 10 minutes. The bios are amazing. It was written by someone, one of the dispatchers where that would have taken all kinds of time going back and forth and editing it then. I mean, they're good. So, another thing I think that's going to happen is flat rate pricing is ubiquitous in the residential space. I see it going, I see it happening in commercial service really soon. It's already apartment complexes, multifamily businesses, they're already asking for it. I really think that that's going to expand into the commercial market, which means that the hourly employees in commercial service will be given the opportunity to work on commission. I think I see that expanding.

Sarah Nicastro: And how do you think that will change, not change, but impact the recruiting of new talent?

Curtis Novinger: It definitely increases the compensation for the employee. It takes the uncertainty from the employer away from paying an employee a lot of money. So it's, a lot of times there's a risk to paying an hourly employee a lot of money because it's not directly tied to revenue or to gross profit. Whereas in a commission based model, it's directly tied to profit. So if you set it up properly, if your plumber is making money for the company, they're making a lot of money and everyone's happy. And to a certain extent also the customer's getting better value because they have someone that's talking to them about their options. They're getting pricing before the work is done, and they're in more in control of how to spend their money. Whereas in a T and M model, the customers are buying a state not knowing what the market price is and they're sitting having to pay for it even if they don't like the state.

Sarah Nicastro: Makes sense. So one of the other things we talked about when we were chatting for this session was around leadership. So how does that factor into all of this?

Curtis Novinger: Leadership, in what context?

Sarah Nicastro: So we talked about plateaus caused by leadership. So what that makes me think of is that there's some really traditional old school leaders in place that aren't maybe as willing to see some of the potential or try new things or think differently, etcetera.

Curtis Novinger: Yeah, that maybe I'll get at it. We can probably get at this a lot of different ways, but one of the things I think about is when you grow a business, there tends to be revenue plateaus. There's a plateau at a million dollars, at $4 million, at $8 million at 15, 30, 50, 100, 150. And a lot of times each of those plateaus require, in order to get through a plateau, it requires the leader to evolve and develop new skills. So the $1 million plateau to the $4 million plateau is that leader has to get out of his truck and trust other people to do the work and take care of his customers for him.

For the $4 million to $8 million plateau, the leader needs to find someone in the office he can hand, or she, typically he, right, can hand off control to. So they can focus on marketing, growing sales, developing technicians. Oftentimes the reason $4 million businesses fail is because their business, they're not being run as a business. When you get into the eight to $15 million range, it's about bringing in multiple trades, multiple offerings. There's a different business strategy. You have to, over $4 million, maybe you're offering HVAC as well as plumbing or you're moving into a different market.

So being able to structure an org chart that's that much more complicated requires another skillset. But as far as leadership goes, I think some of it, leaders that can make that transition that can grow are leaders that are willing to spend time being ignorant, really, really being spending time going, "You know what? I don't know how to do this." Reaching out for help or just genuinely some reflecting and saying, "Man, I just can't seem to get past $4 million. What do I need to do differently?" And that's not an easy skill to develop, right? No one wants to feel ignorant, and yet being able to lean into that space is one of the main limiters to growth.

So leadership, in general, what does it mean? I think one of the struggles with transitioning from traditional break fix models to equipment as a service is having the guts to act on a very risky, scary transition. And we've talked about swallowing the fish and how do you deal with drops in revenue and cash flow issues when you're growing a new business? I think in our market, really, that's why I think that work will go to adjacent businesses or companies that start out with the goal of being in equipment as a service business and having backing perhaps from private equity. I don't see as many transitions taking place in the smaller fragmented market that makes up most of the plumbing industry.

Sarah Nicastro: And that was kind of a point I was going to come back to because when you were explaining what's happening right now with the suppliers starting to take that on and the plumbing contractors not even necessarily being aware of that competition. I was going to come back to that and ask, so can that even change, right? Because it kind of seems to me like that will only snowball. I mean, the more those suppliers see the benefit and the value of those partnerships, the more then they're going to do. And I don't see a plumbing contractor being capable in most senses, of taking that on. You know what I mean? Like winning that competition. But maybe that's just limited view. I don't know.

Curtis Novinger: No. I think of, like when you look at the, I'm trying to figure out how to unpack that. I guess I agree with you. I think in general that's going to happen less in a lot of equity money that's been hitting the market for decades now has been focused on aggregating fragmented business, showing value by buying a lot of companies. That's what Comfort Systems started doing in '99. So it's, I'm sure there's MBA terms for this, but you're essentially aggregating a bunch of fragmented businesses. I think the money that's going to change and help us transition to equipment of service is going to come almost from venture capital, angel investing where they say, "Look, let's start this whole new platform. We're not going to buy an existing platform. We're going to give you money to go play in equipment as a service and grow the business from the ground up."

And it might be that you take an existing company that's been doing distribution, you say, "Look, let's start and build a service business, but instead of just doing break fix, we're going to use your warranty team and we're going to do new installs as a service." I think that's where the main change is going to happen, unfortunately.

Sarah Nicastro: Do you feel the demand is there?

Curtis Novinger: Yeah, it makes sense.

Sarah Nicastro: It does.

Curtis Novinger: It just makes sense.

Sarah Nicastro: It does. And so much else in our world has already moved to a subscription model. I mean, it does make sense. Same the example you gave about the pipes and offering that as a service monitoring, etcetera. I mean, it's just, to me, consumers, whether those are individual consumers or commercial consumers, want the simplicity of just saying, "Yes, we will pay you if you worry about just making sure this works." You know what I mean? "If you can just tell us our building won't flood and that X, Y, and Z will happen the way it should tell us where to sign up, we'll pay you monthly for that and all is well." And there's obviously, in the examples that we've talked through on here, there's a lot of ways that that setup is equally valuable to the provider of said as a service, if they're understanding the opportunity for what it is.

And that's the challenge with what we're talking about is who's capable of transitioning or is it more, to your point, new entrant. If you think about just a couple of the stories we've had on this podcast, we did an podcast with Care in Singapore, and they have over, I think it's about a decade, converted their entire business to as a service. Really cool story. We did a podcast with Baxi in the UK and there're earlier on in that journey, but doing something similar. Now, there's some differences though in the sense of there being nudged significantly by environmental regulations. So it's like there's this additional pressure to react where if you strip that out, would they still be where they are on that journey? But then you think about, another one we did was with Koolmill. Now different industry. They're a rice milling company, but they are a disruptor in a very traditional industry who came in to your point, and Alec from there, and I even talked about the fact that he has it a lot easier not having the legacy to overcome.

I mean, this is how it was begun. It's different. He's not saying it's easy, right? Because he still has to navigate the existing way of doing business with the people he's selling to, right? It's still different for the customer, but that's one battle. Instead of being a company that's transitioning who's battling that plus a whole internal battle of, "No, this is different than what we do, we do this." That sort of thing. So, I guess I've seen examples on both sides. Care is one that did a good job of transitioning a legacy business to as a service. Koolmill spoke about the advantages of being a new entrant and not having to do a lot of that evolution. But I think what's clear is the demand is there and will only continue to increase, and the opportunity is there for someone to take, right? It's just a matter of who and how.

Curtis Novinger: No, I agree. I think there's another way of going at this. Well, first of all, a lot of the money going into our industry from private equity particularly, is being invested in that aggregate model as opposed to coming up with a unique business strategy, like equipment as a service. And there's still a whole lot of good work to be done there and efficiency and the better training, better safety, there's a whole lot to be done there. So I think that will continue.

If you step back and you ask yourself from a customer's perspective, what conversation do you want to have as a customer when you have a broken system? Do you want to talk about the plumbing? No. Most people don't care about the plumbing. And yet, back to the whole fragmented nature of the industry, most of the people coming to talk to the customer want to tell you all about the experience because they're proud of it. That's what they want to talk about. And so there's this natural disconnect right at that interface between the customer and the technician, between what the customer wants and what the plumber wants to talk about. That's why I think the solution's not going to come from our industry, it'll come from an industry that knows what the customer really wants and what they care about, which is for their air to have cold air.

And it's not even cold air. They don't care about cold air. They care about the conference room being the right temperature for when they have visitors come in or they want their plumbing to work when Aunt Melba comes over and they're having Thanksgiving. So I think, and just to give you a concrete example, about five years or so ago, we had a national program to increase the full service agreement sales at Comfort Systems. We had this major effort. We spent a lot of money, Comfort Systems spent a lot of money training sales staff.

We took a bunch of sales staff that was used to selling preventive maintenance or scheduled maintenance and brought them in and trained them on all these new tools about how to sell full service, which is the first step towards equipment as a service. It was a complete flop. It did not work. And because it was fundamentally a different conversation that had to take place about financial benefit and not taking care of the equipment and just checking off the task list that the manufacturers recommending you do. So how do you make that transition? I don't know. I honestly don't know how do you do it inside the industry for those two reasons.

Sarah Nicastro: Yeah. So we definitely don't have time to get into this today, and it may be a bit too deep, but when you were talking about how this may evolve, and you said about how customers don't care, they don't want to hear about the plumbing details, they just want it to work. And how, ultimately, we could find ourselves at a point where it is as a service, it's just, "I need this thing to work. I will pay you to do that. I don't care about any of the details." What I started thinking about is, and this is deep, so bear with me, is how does that compound the challenge we already have getting people into the trades?

Because you're essentially taking a situation where historically, and maybe even currently, you have trades, usually men or women, running these companies that take a lot of pride in what they do, but the less interest the customer has in that trade, and the more it becomes this kind of just high level, no, you just make it work conversation. Does that exacerbate the challenge we already have today to get people in? Because at the end of the day, that work still has to happen. You know what I mean? You can include remote monitoring and even remote resolution and you can modernize it, but there's still going to be a need for a plumber that goes to a building and fixes X, Y, and Z. So, the less interested the customer becomes in the details, does it become harder to get people that want to do this invisible job? You know what I mean?

Curtis Novinger: Yeah. That's such a good question. I love...

Sarah Nicastro: Like I said, we might have to park on it and come back, because we are almost out of time. But that just got me thinking about the path this will all take, and maybe it's worth thinking about and coming back and talking about how do we solve for that, right? What's the answer? I don't know. But it's interesting. And this is how someone with a degree in psychology...

Curtis Novinger: I was going to say, it's a psychological question.

Sarah Nicastro: For sure, for sure.

Curtis Novinger: But there's opportunity there.

Sarah Nicastro: Yeah. And it's just something I guess to be aware of. I mean, it's one of those things that we might not be thinking about all of the implications of what I think is a huge opportunity, don't get me wrong. I think as a service is one of the coolest opportunities that exists for companies that are installing and servicing things. Because when it works, it's so mutually beneficial and it's really, really cool to see it come together. But I'm just wondering if, from a marketing perspective, I always say we have a field service branding problem, and will that branding problem be amplified as we get further down this path? So.

Curtis Novinger: I have one comment, it's a psychological comment, so maybe I appreciate. When a plumber arrives on a job site and there's something broken and they're able to fix it, they get an emotional charge. I mean, it is so much fun to be, and I could tell you stories about it, right? So if that system doesn't break, how do you give that same employee that same self-satisfaction? There is no, he's not the superhero coming in to save the day. And I think that's something that should be acknowledged.

Sarah Nicastro: Yeah, yeah, yeah. Yes. So good food for thought. All right. Okay. So Curtis, we've talked a lot about your viewpoints on the industry and what's happening and what will continue to happen, but if we just look inward for a moment and think about your own experiences, what would you say is the biggest lesson you've learned from being a leader in service?

Curtis Novinger: I think ultimately, and this is my hope, but I think there's some truth here. People genuinely at their core want to help other people. And I saw that with the ice storm. All the people helping each other get trees out of their houses in their front yards. They genuinely want to. And fundamentally, that's what the service industry is all about. It's providing, showing up, and being of service. And if you can, as a leader, maximize the amount of time people can focus on that and minimize the amount of time that they're worried about politics and detail fixing processes, then you'll have a much happier company and much happier customer.

Sarah Nicastro: Yeah, that's very good advice. I like it. Well, thank you so much for coming on today and sharing your thoughts with us. I appreciate it.

Curtis Novinger: Thank you.

Sarah Nicastro: You can find more by visiting us at futureoffieldserviceref.ifs.com. Make sure you subscribe to the Future of Field Service INSIDER, which will make sure that you get the latest content we've produced, delivered to your inbox every other week. You can also now view the schedule for the 2023 Future of Field Service live tour dates and register for the city nearest you. You can do all of that on the website. The Future of Field Service Podcast is published in partnership with IFS. You can learn more at iffs.com. As always, thank you for listening.

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February 22, 2023 | 27 Mins Read

TKElevator’s Path to Predictive Logistics

February 22, 2023 | 27 Mins Read

TKElevator’s Path to Predictive Logistics

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Sarah welcomes Ivo Siebers, Sr. Vice President of Global Logistics at TKElevator, to discuss the company’s journey to removing as much uncertainty as possible from its spare parts operations and the impressive results that they’ve achieved.

Sarah Nicastro: Welcome to the Future of Field Service podcast, I'm your host, Sarah Nicastro. Today we are going to be talking to Ivo Siebers, who is the Senior Vice President of Global Logistics at TKElevator, about the company's path to predictive logistics. Ivo is the senior vice president of Global Logistics at TKElevator, and he and I met at Field Service Europe late last year and had a conversation about the journey the company is on to really modernize and transform its logistics operation, and he is here today to share some of that insight and perspective with you all. So Ivo, thank you so much for being here.

Ivo Siebers: Thank you.

Sarah Nicastro: So before we get into the predictive logistics topic, can you just tell our listeners a little bit about yourself, your role, and maybe just give a brief overview of TK Elevator in case anyone isn't familiar?

Ivo Siebers: Okay. Thank you Sarah. Let me start to introduce myself. I'm 30 years in construction supply industry. I worked in R&D in product management, product line management, branch manager. I was service manager so I occupied a lot of different position in this area. Since more than 20 years, I'm IN the elevator industry and since 13 years with TKElevator, formerly known as ThyssenKrupp Elevator.

So TKElevator is an elevator and escalator company. We are producing elevators and escalators and we also offer after-sales services. My current position within TKE is I'm head of global logistics and this means I'm responsible for the service supply chain or to be a little bit more concrete, the spare parts business around the world.

Sarah Nicastro: Which you described to me when we spoke is, the overall goal of the journey is really taking something very unpredictable and making it predictable. So when we think about logistics and spare parts and supply chain, particularly over the last few years, right, it's been very unpredictable. So to really accomplish that objective, to put as much predictability into this ecosystem as possible, what does that mean in terms of some of the ways that TKE needs to modernize? So what is the importance of embarking on this journey and looking to reduce as much as you can of that unpredictability?

Ivo Siebers: Well, that's a very broad question. So my understanding of our business and here I'm concentrating mainly on the after-sales part, which is about 50% of our revenue stream, we have a common interest with our customer, which is we want to avoid breakdowns or down times of the equipment that are under our maintenance. And everything unpredicted means there is a breakdown, there is something where we have to react instead of act and that has the potential of increasing the number of breakdowns but also the time that the breakdown takes to be fixed.

I think it's in the utmost interest of everybody that we reduce that to the minimum. To doing so, we must understand better the systematics patterns, how it occurs, and that's exactly what we try to do. We try to better understand our portfolio, we try to understand better each and every type of equipment that is under maintenance with us and try to use this knowledge, this big data, to make predictions in order to avoid that.

Sarah Nicastro: Okay, that makes sense. What it makes me think about, Ivo, is when we think about the overall landscape of logistics and particularly spare parts, inventory and things like that, over the last couple of years there's been a ton of headlines about the volatility and having trouble getting inventory in certain places or having delays in getting things that you need, et cetera.

What you are saying, what it makes me think about is any company cannot remove all unpredictability, but you can focus on, internally. So this is kind of what I think you're saying, is there might be things outside of TKE that you can't control, but the focus is to make sure that your own operations, you are looking at how to remove as much of that unpredictability as possible. Does that make sense?

Ivo Siebers: It makes sense, but I would phrase it a little bit broader, and we had the experience of the last two and a half, three years with a lot of interruptions of the supply chains globally. And it's more, as you know, what you will need in the future that better you can tackle that by building up stocks upfront by being the first of ordering critical stocks and by rebalancing the stocks around your own network where it's really needed.

Sarah Nicastro: So basically, having visibility into what you have currently, having the intelligence based on that visibility into what you will need allows you to do more forward-thinking, forecasting and planning so that you get ahead of some of the external challenges. Is that what you're saying?

Ivo Siebers: Exactly. What I'm saying is I think when we are talking about prediction, we are usually talking about digitization, about condition monitoring, so trying to figure out when which equipment breaks and try to avoid that. What we are doing, it's a little bit the opposite. What we are doing is we are using all the data points that we have anyway, so we are using the data points of the consumption of material, of the equipment in order to predict for the future what is needed and put it into the cars of the technicians upfront and direct them also beforehand to take a closer look into certain components before they break.

Sarah Nicastro: Yeah, okay, that makes sense. So let's kind of rewind a step and talk about the environment that you've moved away from. So if we think about what the before looked like versus the ideal state that you're working toward, what were some of the biggest challenges, and I guess the indicators that you needed to modernize and take a different approach?

Ivo Siebers: I think before we can discuss that, I have to give you a short journey how the typical workplace of the technician with TKE, a service technician of TKE, looks like. So usually, each technician maintains the number of equipment over a longer period of time, so we are talking about years. TKE is a multi-brand service company, so we are servicing not only the equipment that we produce ourselves, but also equipment from our competition. So we are maintaining each and every brand, which makes it even more complex.

But in essence, the technician has a number of equipment that he maintains that he's responsible for. Most of the technicians go to the sites by car when they're doing maintenance and they try to fix everything that they can during their regular maintenance visits. Nevertheless, there are incidents, there are call-outs where the system breaks down. And when he goes there, often he can only fix it with the help of exchanging spare parts. That makes a huge difference, whether his car is equipped already with the right equipment, or whether he has to order it and come back to fix it.

So typically, how the process works is if the technician sees that something is broken or will break, he will try to identify the part and get the part ordered and collects it somewhere, and brings it back to site and fixes it. That is the normal procedure. What we are trying to imply with the system or what we try to do with our system is to bring the parts already to the technician before he needs it, so that he do not have to order it. He has it in his car already, he consumes it, and he can fix the elevator in one stop.

Sarah Nicastro: Okay. So this is a journey that you are still in the midst of. Can you talk a little bit about where you've gotten to today and then what the complete ideal state looks like, so where you're ultimately heading?

Ivo Siebers: When you look at TKE, TKE is built up of a lot of different country organizations with different setups, and what we have done is we defined target states that fits for all that can be applied to each and every country organizations of ourselves. But obviously, we couldn't roll it out in one big leap, but we tested and piloted it in different countries and we are now in the rollout state, country by country.

So the current status is that we have rolled it out already in some countries, and there, we have the feedback of the improvements so we can prove what you can gain from implementing it, and we're currently rolling it out further to other countries.

Sarah Nicastro: So just to understand a little bit more, if you go back to the initial process, so you mentioned that the technician would need to identify what part is needed, order the part, pick up the part somewhere and then go and make the repair. Are they determining what's needed with a visit on-site?

Ivo Siebers: That's the normal process. Yeah, it could be during a regular maintenance visit, so they do maintenance and see that a part could break and they order the part before it breaks. Or it's really a call-out where the elevator is already, where the part is already broke, where failure happens, and then he's going out not really knowing what to fix, identifies the root cause for the failure, identifies whether you need a part, identifies the part, orders the part and comes back when the part is arriving to him.

Sarah Nicastro: And in that situation, I don't know if you know this, but how often, percentage-wise, do you think they had the part needed versus needing to order it?

Ivo Siebers: Before or after?

Sarah Nicastro: Before.

Ivo Siebers: Before we started the initiative, and we call it spare part business excellence, so that's the overall name that we are running it under, we had an investigation in two bigger established service countries, country organizations. And we figured out that in the car, the technician, in 10% of our cases, the technician can find the part he needs for a fix, then he would think, "Okay, we have branch around the country, "so you would find it in the branch inventories, but that only fixed it within 20% of our cases. With the new system, we are now at 80%, so it's a magnitude.

Sarah Nicastro: Yeah, absolutely. So 80% before they had to order that part, and now 80% of the time they have the part. Okay?

Ivo Siebers: Correct.

Sarah Nicastro: But just going back to the process itself, if I remember this correctly from our initial conversation, the other change is that before, when they would order that part, they then had to pick it up from the branch location. And now, rather than going through that longer process of identifying, ordering, waiting, picking up, going back, you are looking to forecast what will be needed, have it in advance, and proactively stock into their vehicles so that they have those things that first visit. Correct?

Ivo Siebers: Correct. So let me explain the entire process, how it's designed. So we really tried to get a seamless digital solution end-to-end, from the technician to the technician. It starts with a technician who is onsite, who needs a part. He has a catalog, a digital catalog in which he can identify the parts. That's extremely important for us because we have a variety of approximately 100,000 different parts, or per country organization maybe 20 or 30,000 different parts that might be broken.

So it's important to give him a good tool in the sense that he can do an accurate identification, meaning he can identify the article number. With that, he can then set a request to a central warehouse which fulfills the request. And instead of sending it to the branch as formerly done, they would send it directly to him. That might be a pick point, that might be the car trunk, that might be a PUDO, that might be a location close to his workplace. Wherever it suits, it'll be sent as close as possible to him in order to save his travel time.

Further on, we are using the data of consumption of his route and also routes around in order to understand which equipment has which need at what time for spare parts, and try to configure his car stock in the way that it fits best to his specific route, so to the elevators that he maintains regularly. That is a kick that allows us to go away from this one-to-one order and fulfillment to replenishment, replenishing of his car and then reduce the orders that he has to place to a minimum.

Sarah Nicastro: That makes sense. So going back to thinking about the progress that you've made and the benefits of doing this from the before to today. So just to clarify for listeners, we said that before 10% of the time he had the part needed another 10% of the time, so 20% of the time he could find the part nearby and get it from one of the local branches, 80% of the time he had to order, wait, pick up and go back. Okay?

Now in the updated system, 80% of the time he already has the part he needs, and the other 20% is fulfilling that request. Let me also ask though, with the change in how those orders are fulfilled, how much faster does the technician get the part needed when he does need to place an order? So I'm just thinking about the difference between ordering, it goes to the branch, picking up, versus it going directly to the technician.

Ivo Siebers: Yes, it's a full digital process. Each request that the technician sets to the central warehouse is immediately in the warehouse, and there's a cutoff time in the afternoon until if he places the request until then, he will have it in his car or at his pick-up point early in the morning, before he starts, so that's what we are fulfilling today.

Sarah Nicastro: Okay.

Ivo Siebers: Obviously, there are exceptions of where you need the part immediately, let's say an elevator who is going directly into an emergency room in a hospital. There, we would find a solution to bring it directly there and install it during nighttime, if necessary, but that are really exceptions.

Sarah Nicastro: So it's less than 24 hours from the time that the technician submits the request until they have the part in their hands, for the most part.

Ivo Siebers: Actually, we designed three types of service level and the technician can choose from them. One is next morning, one is immediately, and one is planned, then he gets the part when he wants the part to have, because it doesn't make sense to bring out the parts to him if he needs it only next month.

Sarah Nicastro: Right, okay. That makes sense. So the other question, I'm just thinking about how to phrase this in a way that is clear, so bear with me. The other question I have is thinking about the predictability of parts, and so how much you've been able to evolve to using all of the data that you have access to on usage, typical product-related insights on the average duration of how long a certain part lasts, et cetera, plus the technician's individual portfolio of what they're servicing.

How much have you been able to move to this world of looking ahead and planning in advance? So what I'm thinking is yes, you still have this 20% of time that they're ordering a part, 80% of the time they already have it in their car. But overall, if you think about how you're getting ahead of, like we talked about at the beginning, what you need to order from different suppliers and doing that in a way that allows you to meet those SLAs, right?

I mean, the only way it's possible to meet those three SLAs you spoke about is if you are already doing a good job of stocking parts in your distribution centers, because otherwise, you would be running into situations where the next morning isn't happening because you're not doing a good job of evaluating the demand you need for parts to have them already available in the distribution centers.

So how has that process changed in terms of the forecasting and planning so that you are kind of getting ahead of the curve to make sure you're doing a good job of stocking things at these distribution centers to make this possible on the sort of last mile?

Ivo Siebers: That's actually a very good question. Actually, we learned ourselves a lot during this process, during our first piloting phase. And one of the things that we learned was that all the biases that we had about our business being already quite okay or quite optimized were totally wrong. So as I said, 10% of everybody, the former procedure was that the technician together with his field supervisor determined what parts he puts into his car. Everybody was thinking as they are so close to the customer, so close to the equipment, that they know what they're doing. But they are no specialists and they do seldom really put a lot of time into it. So this bias, we broke through, and it actually showed how seldom really they got a hit.

The second bias is that you need more stocks in order to increase your service level and what we are seeing now is that we have already reduced at the warehouse 30% of our Stocks. And if we can trust the predictions, we can go another 50% down with higher SLAs than before. So there's the takeaways, there's a lot of unused stock lying around that is there because we don't know what stock we need in which location. And what we are doing, we have a quite well-working inventory planning system that is fed by different systems, our ERP system, our field operation system. It has some preconditions set in into, and this plans each and every location instantaneously. So it plans which part should be positioned best in which location, and by that, you can optimize extremely well your inventory.

Sarah Nicastro: Yeah, that's really interesting because we talk a lot about this idea that in the last, let's say, 10 years, we've talked so much about how important... Data, data, data, the importance of data. Right? But now, we talk about the fact that data in and of itself really doesn't do much, right? It's the intelligence you're able to turn it into that is impactful. And a lot of companies struggle with that, especially the more data they have, the harder it is to identify what data is useful.

And this is a really good example of taking data from, like you said, different systems, consolidating it, and gleaning that insight from it that is helping you make a significant impact on the business, both in fulfilling those spare part SLAs for the technicians, which is helping them to improve first-time fix and mean time to repair, I mean I have to assume.

And then also, reducing the inventory stock that you have while improving the inventory availability that the technicians have of what they need, when they need it. So it's a really good case study in terms of taking a bunch of data that's being gathered from all of these different places, and making a really good use of that data converting it into intelligence that's helping you make really specific positive impact on the business.

Ivo Siebers: Let me answer with my takeaways from my experiences here. I think we have a lot of data already in our companies and we talk about data, not information. So data in the company are of different qualities, that was also something we learned. And I think you can't make compromises in the quality of the data, that is already one of the big hurdles in order to realize something as we have done it.

So you have to be extremely strict, garbage in, garbage out. You have to be strict at the point of entrance that you get correct data in the system. And think about, we have 25,000 technicians, 25,000 technicians have to be disciplined, trained to do it correctly. It's not an easy task, it's really not an easy task. They have never done it, they are not IT specialists, but you rely on the quality of their input. And that makes it so difficult to implement.

Yes, I think we have a lot of data but of different qualities. So first you must ask yourself, "Is what I'm seeing really what is a representation of the reality, or is this corrupt?" And then you have to clean it up. A big hurdle, really one of the very big hurdles. Then the second thing is you have to make sure that if you design an end-to-end process, you must be aware that you are crossing border lines between different functional silos.

And usually, at the end of each silo, things fall down and at the beginning of the next silo, they are picked up and worked on again. And that, you have to avoid. So you really have to design a process that seamlessly works end-to-end, and where everybody relies on the quality of the work that has been done before. And this is also not in our genes, so this trust is also not in our genes. So it's a huge transformation process to design such a system in an existing elevator company.

Sarah Nicastro: Those are excellent points, and I think that the point about data cannot be overemphasized. I think that that's something that a lot of organizations, when they embark on a journey like this, they don't account for enough time, they don't understand what the work might look like. To your point, when you talked about the biases earlier, they may overestimate the quality of the data they have and then not be prepared to face the reality of what it actually is. And so then, companies can get really frustrated but there's no way to avoid that bulk of work if the goal is to achieve these outcomes.

And I think the point you made about this end-to-end process is something that in service is increasingly important, because we see more and more sort of focus on the overall customer experience or customer journey, which means that internally we have to look at more of those end-to-end systems and processes. We can't be good in one silo, poor in another, and expect the overall experience to be a positive one. And so this idea of going through that change, of those functions really working together and being able to depend on one another is a really important point as well.

Ivo Siebers: And it also, I think it's as a side effect that we see, you not only increase the competency on all levels about digitalization or you make it to something that they start believing in, but also it's something about the self-esteem going into the next project. If you have such an experience done already, you are open for the next one.

Sarah Nicastro: Yeah, absolutely. There was a podcast that I had early on when we started doing these, and it was a gentleman named Greg Lush. And he spoke about this concept of digital reputation and this idea of how important that digital reputation is when you have any sort of digital transformation initiative within the business. When you don't handle it well, the ripple effect that causes in the distrust your employees have of your ability to execute change makes everyone after that much harder.

And on the flip side, when you do this hard work that you're speaking of, you really confront those biases, you do the hard work of the data integrity and getting everything the way it should be, you really work on breaking down those silos and getting everyone to work together, the outcome of that is not only visible in the amazing results you've achieved of really flipping from 80% unavailability to 80% availability, but also in how your employees feel about your ability as a company to introduce tools and change that actually help them. Because to your point, when it's time for the next thing, they have a trust and a belief in what TKE can do that makes them a lot more open minded, and makes that next change just a little bit easier to accomplish.

Ivo Siebers: That's another point that I think is important. When we talk about digitalization, often it's connected to job reduction, cutting down costs and so on. And I would like to give it a little bit different perspective. So as you see with the examples that I made, it's not really, we are still growing, so what we achieve with the efficiency gains we are putting into more workload for the people. So we use the time with the same people, we are not reducing headcounts there.

In addition, I think we should have to look a little bit ahead we have some baby boomer generation which goes out of business during the next years. Everybody is talking about lack of talent, especially for the technical jobs. Here's a possibility, digitalization gives us a possibility not only to fill in the gap, but also, and we have to do it now, to codify the knowledge of the people who are going. And I think that are also two aspects that we have to think when we talk about digitalization that are important.

Sarah Nicastro: Absolutely. Yeah, I think that's a great point. It's about working smarter, right? I think with the point you made about the talent gap and all of the struggles, companies across the world are having to bring people into these roles at the pace they need to. Technicians should not be concerned for their jobs, that's not what this is about. It's about efficiency for the sake of not wasting people's time and not just burning through money just unnecessarily and not delivering the customer experience that you are quite capable of delivering if you just use these tools.

That's what it's about, it's not about getting rid of anyone. It's just about working smarter and allowing you then to serve more need with either the same amount of people or being able to grow and expand with the same amount of people. So I think there's this unnecessary fear of, "Automation is here to take my job." It's an often an outdated perception. I think it's really, there's plenty of work to go around, it's just about doing it in a way that is smart and allows them to shine in a way.

Instead of showing up and assessing the situation and saying, "Okay, customer, now I need to order this part, wait for it to come in, pick it up, I'll be back in however long," they're showing up, and 80% of the time they're getting the job done and they're fixing what needs to be fixed and they're achieving that higher customer satisfaction. I mean, that has to make them feel better about what they're doing day to day. So there's a lot of really positive points that come out of this for the technician itself as well.

Sorry, I was just going to say one last thing, which is I think when digital transformation is done well, what's really interesting is it's mutually beneficial to the customer, the company, and the frontline worker. There's things to gain for all of those stakeholders. It's just a matter of making sure you're looking at that change from the context of how it benefits all parties, not just one party.

Ivo Siebers: I just wanted to expand and give an example for something which hit us unexpectedly. When we first discussed this quite broad new concept, there were a lot of discussions about, "Oh, we are giving the technician quite a bit of authority. He's ordering the parts, he's warehousing, in a way, his car, he's consuming the parts, he's receiving the parts and all these data points he has to do accurately. So we are expanding his area of responsibility quite a bit." And we thought, "Okay, then we go into discussions about increasing salary. Will he ask for more? Will he accept this responsibility? Will he fill his car unnecessarily with material because he can now?" That was one of the questions.

Another question was if we are cutting out the branch out of the entire process, because it's an end-to-end process between the central organization that warehouses the parts and the technician and nobody is anymore in between. We thought that the field supervisor who formerly did all this work would protest because they can't see any more really what his technician is doing when he's doing repairs. And we did a pilot in Brazil. Brazil is a big and very experienced service organization for TKE, and we did a pilot there. And guess what? It was exactly the opposite.

So we started the program and I talked myself with quite a few of the technicians and they said, "Great that somebody is doing it. We always have to telephone for the parts, we're in the front of the customer and we have to rectify this part not coming. Now we are in the driver's seat and we know when the part is coming, we can directly give the information to the customer." So they feel really empowered and they took it really positive. And from the field supervisor side, also the opposite, they said, "Nobody likes this task, so taking it away from us, it's great." So sometimes you are a victim to your own biases, when you discuss things.

Sarah Nicastro: Yeah, that's a great point. And I think you want that frontline worker to be someone who is capable of portraying your brand really well with customers. And if you just think about, as human beings, are they better equipped to do that when they're this resource that the company feels it needs to micromanage, it always has to be watching, it's questioning what they do, versus this resource that's empowered and trusted?

I'm sure there's always anomalies. Maybe you'll come into a situation where there is this one individual employee that doesn't handle that responsibility well, but generally speaking, I think that employee feels more valued and more appreciated because they are in the driver's seat and that is reflected in how they interact with customers then. I mean, there's just a real difference of someone, I think the energy they have showing up to a customer site when they have this feeling of being trusted and being empowered. I just think that's a different energy that they'll give off to the customers they're interacting with. So I think that's a really good point, a lot of good lessons learned.

Ivo Siebers: Actually, want to add, where we put a lot of emphasis on and put also a lot of time into was to think about each and every stakeholder. So first of all, the technician, if he don't likes it, he will give corrupt data. You can't run such a system without the help of the technician and full acceptance of him. So what really is in for him?

So really sitting down, building a pitch for him, really trying to address all the uncertainties, but also what is in for him, and really get a good pitch together for him and for the branch, for the field supervisor, for the warehouse. So for all different stakeholders to understand really what drives them and what can you achieve for them. This is really an important step that we took and it proved to be extremely important,

Sarah Nicastro: I think it's such an important step, because a lot of times, companies either, they go out communicating the benefit of the change to the company, which some people are going to care about but a lot aren't. And then other times, they come up with this generic why, right? Something that's just, "Well, you should care because X," without really, what you're talking about is personalizing that change management message for every role that the solution will impact.

And that's when taking the time to put yourself in their shoes and think about what does it really mean for them, I think is such an important aspect of managing change well. Because number one, it shows them you took the time to understand them as an individual function instead of just throwing out this, "Here's why we're doing this and you should comply." I always say there's a difference between commitment and compliance, and that difference a lot of times is how well you manage that change.

You don't want employees that are just complying, because at some point, the pressure will be off to comply and then they might not care if they put in the data the right way or they do the steps they need to do. You want them to be committed to the new process because they see the value in it. And then, that's when you have technicians that are always following what they need to do or using the tool the way it's intended to be used because they want to. That should be the goal, not just force or getting them to do what you're saying to do just because, so I think that's a really good point.

Ivo Siebers: And I think you also have to, during the implementation process and afterwards, you really have to give them a word. So you have to go there and really ask them honestly about the experience and take it with you. You might not change everything that they want to be changed, but at least you have to take it seriously and answer it. And the good thing with technicians is, at least with the technicians I met during that, is that they usually are quite honest. They are seeing everything from their own perspective, that's clear, but usually, once you have some warm-up behind you, then you get quite qualified answers to questions.

Sarah Nicastro: And if you're open to really listening in that implementation phase, you may pick up on some points that make a significant difference in how the solution is adopted in the wider rollout. Right? I mean, to your point, not every piece of feedback will be relevant or addressable, but there may be some that if you are listening or points that you hadn't considered or will make the end product a lot better.

This is, again, where I think some of the aspects of change management that are tough are coming back to, "Are you willing to put the time in, to personalize the message, to actually listen?" Employees are smart enough to know, "Are you asking me my feedback just because you're trying to pacify me and make me feel like you care enough to listen, or are you asking me because you genuinely care and if I have something important to say, you may actually take action on it?" I think people can tell the difference, and if you are willing to really listen, there could be some very helpful things that come out of that, so that's a good point.

So Ivo, last question is really just around, you've made significant progress here, but if you think about the future, I'm talking three to five years from now, something like that, and you think about what else may change in the logistics landscape, what do you see coming along? What further refinements or changes, what do you think will be sort of the next version of the ideal state that you're working toward?

Ivo Siebers: I think in the nearer future we are planning to do something quite obvious, actually, we are working already on it. So the system that we are using at the moment is working with data from the past, so we are using consumption data plus something else, mix it together, do some big data analytics and then come out with a prediction. But in essence, we are looking back to predict the future.

The next step will be, you might have heard about our condition monitoring system, we call it Max, and Max is throwing out condition monitoring data and we are working on algorithms that give us hints of future events, future failures. And obviously, that would be helpful for us to integrate that also into our prediction methods, so that we not only look to the past but also into the future where the condition monitoring, that's, I think, the nearer future that we are working on at the moment for the concept.

Obviously, as byproduct of everything we are doing, we get a lot of data and a lot of insights about equipment, about failure, pattern of equipment. And when you think that further ahead, it'll give you also very good ideas for the route planning, for time, assumptions for certain tasks. You might vary your work plan depending on the necessities of the equipment because of your experiences on that, you might have different contract models for different equipment. I can see a lot of use cases for those data.

What you also can do is you can use the data in order to re-engineer or synthesize some sort of service problem. So as you know what was consumed, you could also take a bunch of the consumed parts and say, "Okay, this is the equipment I'm maintaining," without really looking into it. This is also important for old equipment, where you might not have the data available. So there are a lot of things that I can see in the future, without talking about 3D printing and about picture recognition and about artificial realities and so on.

I think one point I see definitely for the future too is, as I said, we are looking into the future where talents are scarce and where a lot of knowledge get lost, where a huge amount of people will go out of business. So I think we have to find ways now to conserve this knowledge, and digitalization, digital tools, virtual reality gives us also a huge opportunity to do so and we should start using it.

Sarah Nicastro: Yeah, very good points. Well, I mean, kudos to you for everything you've accomplished so far. It's really impressive to hear how far you've come from the before to today, and then to also think about some of the ways you can continue to refine what you're doing to make further improvements, so I really appreciate you coming and sharing and it was a great conversation.

Ivo Siebers: Thank you for having me.

Sarah Nicastro: Absolutely. You can find more by visiting us at futureoffieldserviceref.ifs.com. Be sure to register for the Future of Field Service INSIDER, which will deliver our most recent content to your inbox every two weeks. Also, take a look at the schedule for the 2023 Future of Field Service Live Tour. We are visiting six countries this year. The events are free to attend, so be sure to register for the location nearest you. You can find all of that on the website. The Future of Field Service Podcast is published in partnership with IFS. You can learn more at ifs.com. As always, thank you for listening.

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February 15, 2023 | 33 Mins Read

The Neuroscience of Leading Through Change

February 15, 2023 | 33 Mins Read

The Neuroscience of Leading Through Change

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Sarah welcomes Dr. Elizabeth Moran, former VP of Global Talent Development at ADP who now works as a consultant and executive coach and is passionate about helping teams and organizations successfully navigate and evolve through change using a neuro-transformational approach. She gives an inside look into her new book, Forward: Leading Your Team Through Change, and offers honest advice for change management success. 

Sarah Nicastro: Welcome to the Future of Field Service podcast. I'm your host, Sarah Nicastro. Today, we're going to have a very interesting conversation about the neuroscience of leading through change. If you've been following the podcast or our website content for long, you know that change management is one of the biggest topics we discussed because it is one of the biggest challenges that you all have. So, we're going to have a great conversation about that today. I am thrilled to be joined by Dr. Elizabeth Moran, who is formerly the Vice President of Global Talent Development at ADP. She's an experienced leader, consultant, and executive coach, passionate about helping teams and organizations successfully navigate through change with her organization, Elizabeth Moran Transformation.   

Dr. Moran partners with Fortune 500 companies all the way to technology startups and works to support everything from large scale to small scale transformations. She holds a master's and doctoral degree in clinical psychology from the California Institute of Integral Studies, a PCC level coaching certification from the International Coaching Federation, and a certification as a neuro-transformational coach. Ooh. She's also the author of the upcoming release or maybe brand-new release, Forward: Leading Your Team Through Change. Oh, that was a mouthful. Thank you for bearing with me. Moran. Got it. And if it's okay, I'll switch to Elizabeth. Is that okay? Okay, perfect. Okay. Elizabeth, thank you so much for being here. I really appreciate it. That was a lot to cover, but obviously, you came to my attention through your brand-new book, which is really exciting. But then in looking at your bio, you have a lot of experience with very relevant organizations, some of which I'm sure are listeners of the podcast.

So, that's very exciting. We're talking about change management today and how leaders tackle that, "What do we need to do to equip leaders to successfully manage change?" I think there was a time where change management as a topic was almost like a project. You have a project. If you understand the importance, you have a change management process with that project, and then you move on. Today, it feels a lot more like an ongoing necessity. What are your thoughts on that first?

Dr. Elizabeth Moran: I think you touched on two important things that people are noticing more and more about. One is that when you think about change management ... I say change leadership. I couldn't care less which you use. There's two pieces to that. You highlighted the one, which is super important, is being able to manage the project aspects of a change. But then there's managing the people aspects of the change. And so those are two different things. And oftentimes, people focus on the project aspects, rightly so, at the expense of, Well, are people getting it? Are we setting them up for success, including leaders?" And so when you think about that, that's important.

The second piece that you mentioned is it's constant ongoing change, not only multiple changes, but so many changes are years. They continue. They're rolling. And so leaders are faced with a change that changes and changes again. Actually, there's a quote in there from Ashley who is a service leader in the book, who was saying, "Yes, that's exactly what we're saying, 'Hey, thanks for this change, but just so you know, this change is going to be changing, and then we'll change it again.'" And we all laughed. But it was true.

Sarah Nicastro: That's exactly what I mean. When I started in this space, it was 15 years ago. Yes, there was change, but it was a more static landscape compared to where we are today. You know what I mean? And so if there was change, it was done, it was stable for a time, and then you moved on to something else. Today, the hits, they keep coming. Right? If it isn't one thing, it's another thing. It's this thing. And now, this thing we just changed is changing again. And then it's just that we live in a very real time, constant flow of information, constant flow of needing to react, et cetera. So, there's this, I think, increased intensity around it and also amplified need for leaders to really get a grasp on the people part of that change leadership.

So, the volume and the intensity has sped up. I think leaders are reacting in a variety of ways. Some maybe intuitively are better at it than others. Some are really struggling, but we need to make sure that we're equipping people to navigate this because it's not going away. That intensity is likely here to stay. Here's where I want to start, and then I want to get into some of the details. In your book, you are giving five simplified neuroscience concepts that every change leader can and should use to their advantage. Let's use that as a starting point, if you can talk us through those five concepts.

Dr. Elizabeth Moran: The first thing I tried to do with the book is to understand that everybody is overwhelmed. And so it was very important to me to provide something where it wasn't just, "Hey, here's the concept, one, two. Here are some things you can do, which is why I call it a playbook. So, here are some steps." And then number three, which to me was often missing, is, "Here are the words you can say. You have to have a difficult conversation with somebody that you think might be resisting. Here's how you approach that. Or when you announce a change or you're going to have to talk to your team, here are most likely the common tough questions you're going to get. And here are ways to answer it." First of all, even when I think about the neuroscience concept, they are five concepts with the caveat that, look, we are learning so much all the time, everything changes. But I tried to give a simple overview. And then, "So what? What does this mean for you?" I'm going to look at the book to make sure I capture all five. The first one was what we call the threat of uncertainty. And that ultimately is what the change leaders, themselves, are experiencing as much as people are.

Our brains hate uncertainty more than anything. And so the goal is, if we know this about ourselves, "How do leaders create ... " When I say certainty, I don't mean that that means that they know everything. But that means two things. One is when people are already in uncertainty, they think the next thing that is going to happen, in other words, what's in the unknown, is going to be bad. So, part of the leader's job is to know that we're already geared towards the negative. So, how do you help people course-correct back to neutral? And there's techniques to do that also for ourselves. That's super important. And then the other thing is when you think about telling your team what's known, it's just as important to say what's unknown because most people are thinking about ... Ultimately, the first question that runs through anybody's mind is, "What does this change mean for me?" And so that's why we talked about it's totally fine to say, "I don't know." And we'll get more into that later.

The second concept is negativity bias. That means we automatically have a brain that's tilted towards looking for that. We started with uncertainty. Now, we're automatically tilted to what's going to go wrong. That's just a way that we are always hardwired to protect ourselves. So, why it's so important to not only think about what could go wrong in a change and allow your people to talk about it. It's also important to basically think about, "Well, what could go right?" The third thing is switch-cost. And many times, I hear from service leaders ... Leaders in general, but service leaders, particularly if they have employees who've been around for a long time, is, "Oh, my gosh. The people, they don't want to change. It's so hard to get people to change." And so this gives leaders an understanding about why. I like to say there's a little geek in your brain that's calculating the cost-benefit analysis for you to make the effort to change. And so a lot of times, we like to stay in the ideation phase, "Ooh, that sounds great. That would be so cool." But actually, when it comes to doing the work ... And I give an example in the book of when I tried to learn a foreign language. Sounded like a great idea when I was living in Italy. My brain was like, "It's not happening."

Didn't matter how kind the Italian people were, wasn't going to happen. The switch-cost was too great. So, then I talk to leaders, "Well, how do you deal with this?" And one way you deal with it is helping people understand what they can get rewarded for. So, in this case, what we're looking for is not perfection in somebody doing a task or doing it the exact same way we've done. We're going to reward people trying something new. And that's a way you can counteract. Do you want to jump in?

Sarah Nicastro: Yeah, I was just going to say one thing on that because sometimes, one of the challenges I hear is in that ideation phase ... Let's say digital transformation. We're adopting this new tool, and we're going to do this, so it will improve X, Y, or Z about your Mr. or Mrs. Frontline-Worker, role. "Okay. Yeah, that makes sense. Sounds good. Sure, I'll consider that." But then adoption doesn't actually happen. So, there's this initial acceptance when the change management plan is initially rolled out. But then after the implementation of that tool, the leaders really struggle with its use. It's not being used at all. They're just defaulting to the former tool, or it's not being used in its intended manner. So, this switch-cost idea makes a lot of sense because that initial acceptance is sort of this, "Yeah, okay." And then there's this recognition of, "But I'm so comfortable doing this thing. I don't want to actually learn how to do this new thing." I was just kind of putting it in the-

Dr. Elizabeth Moran: Perfect.

Sarah Nicastro: ... context and thinking about how much sense it makes. Okay, sorry.

Dr. Elizabeth Moran: Yes, you're absolutely right. And some of that is needing time, but there are a couple of other things that leaders can do in that case. First of all, is making sure, "Is everybody clear, first of all, of what we're trying to do? Does everybody get it? Fine." The leader can think about and make room for, "Okay, as you adopt this new tool, what concerns you, or what excites you? Also, what might be gained, or what might be lost?" Giving people a chance to say, "I like doing this. I was an expert. I could do my job very easily. And now, depending on what some of those metrics are that people will be measured ... You have to make sure they're not being penalized for taking more time or having to learn a system. So, it's really looking at the whole reward mechanism.

And oftentimes, it's like, "Yeah." And it's the leader simply saying, "You're right, you're right." And just making some room for that, "It's hard to not be the expert anymore, and it is hard to take longer." So, a lot of times, the leaders has to just acknowledge, "Yeah, you're right." And there's not much more to do about that, again, except, "Hey, do you want to walk through this together? Should we try it and see what it's like?" And then giving the person more time and, as we said, trying to reward them and encourage them for struggling as opposed to being perfect.

Sarah Nicastro: Makes sense.

Dr. Elizabeth Moran: Humans, right? This is a thing. We're dealing with humans. Two other things, and they all kind of flow together. Number four is the analytic versus empathetic networks in our brain. This was a huge light bulb going off for me, and it gets to the heart of what you're talking about, the project versus the people aspects of the change. The analytic network is those groups of systems in our brains that are responsible for analyzing data, looking at timeframes, putting specific actions together, getting things done. It's planning. It's all of that stuff. Most organizations reward for analytic network activity a lot. The other part is the empathetic network in our brains. Two major functions here. One is it allows people to almost pull back out of the details and see the larger, broader picture, which is a lot where you can see patterns. It's where innovation comes from, the ability to pull out and think about doing things in new ways. The other thing is it enables us to be tuned into the verbal and non-verbal cues of people. The kicker is when one of those is active, it suppresses the other. And so hence, when we're very focused on a project in getting something done, we are not able to attend to the human side of change, which why the best leaders who do this really almost have to specifically imagine they're putting a different hat on, and they have different questions.

Even in groups when we were meeting, doing training around this, and we were having leaders, service leaders in particular, practice, we would assign, "Okay, your job in this conversation is simply to wear the people-hat. You put yourself in the role of people. What are you thinking and feeling?" And they felt permission to do that while everybody else was focused on getting it done. That's really critical. And then the fifth is optimism. And I hope this makes people feel good. For me, earlier in my career, I used to sort of roll my eyes at optimism or positivity because it just didn't seem serious. Now that I'm a complete nerd when it comes to brain science, it's, again, helped me so much appreciate that, again, we went back to ... Because our brains are tilted towards the negative, actually, some say we give three times more psychological weight to the negative than the positive. Again, you can understand our bodies are trying to keep us safe. But when it comes to constant news and things that make us feel very anxious, unless we specifically try to scan for the good, we are always going to fall behind.

In this case, practicing optimism would be getting your team together and imagining a positive future, imagining a positive outcome, really taking some time to think about what's happening, what could be really beneficial for clients even in the short run, if we're struggling. It also is taking time to celebrate that movement towards adoption. Even if it's like, "Oh my gosh, I did this. It was the complete failure" It's still, "Congratulations. What can we learn from that? I so appreciate you making the effort. It's wonderful. What can we learn from this?" And then it's also celebrating more of the traditional successes. I'll stop there.

Sarah Nicastro: That makes sense. I'm looking at our outline and thinking we don't have enough time because I have so many extra questions. But I was thinking when you were talking about the analytic versus the empathetic ... I'm sure part of it is putting on those different hats, but I have to assume also people are geared in one or the other. And so I think I was just thinking about ... Clearly, I would be on the empathetic side, but that's not for this conversation. But I think on the flip side, there's a lot of leaders who aren't, and that's tough. And knowing that the people part is tougher than the process part, then it kind of exacerbates the challenges. The other thing I was thinking about when you were talking about optimism is you're working toward whatever this that outcome is. But we tend to focus so much on the end goal that we don't look for those positives all along the way. I'm just thinking about ... Going back to ... The second point was around ... Remind me. The second point was around?

Dr. Elizabeth Moran: Negativity bias.

Sarah Nicastro: Yes. Or maybe it was when we were talking about the switch-cost. But you said that you might not change anything, but that person just wants to be acknowledged. And so this is where this gets really interesting to me. I have a degree in psychology. That's probably why. But I struggle so much in talking with people about this because I think so much of where we go wrong is in really simple details. Do you know what I mean? When you think about acknowledgement, that person that's frustrated with that feeling of failure because they went from a process they know they could do in their sleep to something brand new that feels so, so hard, the frustration there, leaders sense that or are made aware of that. And they react in a way that is either panic or force rather than just acceptance and acknowledgement. And maybe all that person needs is to feel heard and feel validated that, "Yeah, I know. It is hard because it's new, and that's okay, but we're still going to do this because of this why for you."

And the same thing with the optimism, yes, you have this end goal, but work backwards from there even in advance and think about, "What are the realistic milestones that you can look for to celebrate so that people don't get so disengaged, waiting to get to the finish line?" It makes good sense to me. All right. Let's go back to your point about ... Communication is obviously a really big part of this. There's this need to have, you said earlier, a clear message, "Why are we doing this?" And I think one of the things we've talked about before is also acknowledging as a leader that the why is different depending on what stakeholder you're talking to. The why for the CEO is different from the why to the frontline worker, et cetera. So, you need to have this clear message. But you mentioned also that it's okay to be clear about what you don't know. Let's talk a little bit about that and this idea of clarity, compassion, and then, "Communication doesn't mean you have to have all of the answers.”

Dr. Elizabeth Moran: We hope in organizations, but I still hear that it doesn't happen, that the organization is providing their leaders with some information, enough information that starts to answer some key question, "What's changing, why is it changing?" And maybe, "What happens if we don't change? What are the actions and results? What are we trying to get to? And then what are the benefits we're hoping to achieve?" Now, many organizations will have answers to some of that, but in a much more sort of big picture general sense. It's up then to the change leader to take that information and really be able to answer the questions for their people in a way that's relatable for them. If there's one piece of advice that all of this boils down to is take some time before you talk to your folks about a change and simply put yourself in their shoes, and say, "If I was in their shoes, what would I need? How is this announcement going to land? And what might I need to adopt? Even if I'm resistant at first, that's okay."

It's thinking about, first of all, just the overall consistent basics, "Do you have that?" And if you don't, go to your leaders and ask some of those questions. Then it is, "Okay, I'm going to communicate this to folks. But before I do, I'm going to take some time to anticipate tough questions or reactions they may have so I am not surprised." And then it is going to be okay. But it involves a mindset shift because ... I know I can go in a bazillion different directions because of the overlap, but I'm trying to stay focused. If you think about what your job is in the different stages, first, it's just to announce the change, make sure people get the technical details enough, and then they can ask questions, and then they can have their reactions. So, you have to get into a mindset that says, "My job as a change leader is not to have all the answers. My job as a change leader ... I know I'm successful, is I can actually unearth a ton of questions I can't answer yet because that tells me I'm giving my folks an opportunity to engage and to get involved. I'm also trusting their wisdom and their knowledge. They're on the front lines."

And the problem is a lot of leaders are exhausted. They already feel like they're going to hear people being like, "Oh, are you kidding me? Another change? What about this? And this one still isn't working." And that's fair. And then it's like, "Okay, let's map this out. Let's talk about that." And it's giving 20 minutes. Now, what I'd like to say to leaders is, "It's okay." For instance, as soon as you shift your mindset that resistance isn't a problem, resistance is normal, this is what people do, that's cool. But resistance isn't a permanent state. And then over time, it becomes a different conversation. But at first, my job is to understand, "Do people have enough information now?" And then it is to make sure I ask questions if I have an expectation. That is, "Do you understand what you need to do differently?" Which is the clarity priority. We can touch on those in a minute. The clarity priority bottom line is, "Is everybody clear on what they need to do differently on a day-to-day basis as a result of the change?" That's usually the part that's missing.

A change gets announced, there's not as much conversation or clarity around, "Okay, now, what is it like to actually implement this change? Do I need new training?" And almost making room for, "Look, this is how it looks now, but it's probably going to change as we start to roll it out." And setting that expectation upfront so people don't think, "Oh, now, you're changing again. That must mean it was a problem." No, this is normal. I'm going to dovetail into the communication priority. Clarity priorities, making sure people are ... Really, they understand what they have to do differently. Communication is two-way. It's not just telling. It's making room to ask. And that's why I hope the book is helpful because I do outline conversations and guides for a ton of tough questions, including, "Am I going to lose my job?" Which is a big one that freaks leaders out.

It is all about, "How do you become curious and not look at somebody's negative reaction as either a total roadblock to your trying to move ahead in your analytic network and get things done? And also, how do you welcome it as good data?" It's important for me to know this. And so as soon as I go into curiosity mindset, I'm not defensive. I don't have to convince anybody. And then it's compassion, is really where I like to start. As I said, you are able to understand that resistance is completely normal, that my job here is to really try to put myself in that person's shoes, which I've got to say service people are so good ... The most successful ones all the time. It's what causes a lot of their frustration.

As I said, they love their clients. They feel like they really want to support their clients. So, how do you end up really allowing ... Put yourself in your person's shoes, but then allow them to put themselves in their client's shoes, and talk to you about what this is going to be like from a client or user experience perspective. We're talking about a lot here, but I want to make sure we focus down on that most leaders right now, they are already change leaders. They're doing it. So, the goal is, "Let's figure out what you do that works?" And if you're coming up against some particular problems or challenges, I'm hoping this book can make it easy for you to try a couple of things differently to get that change adoption,

Sarah Nicastro: That makes sense. I think this idea of, "It's okay to say I don't know." Also goes back to authenticity, which builds trust. To me ... I'm probably more skeptical than some, but the worst thing someone could do if I ask a question and they don't know is to make something up because I will just smell the BS and just walk away, rolling my eyes. And that disconnect is what you want to be avoiding. You're better off just being honest and transparent, "I don't know, but let me find out. I don't know. I'll come back to you. I don't know. Let's whatever." So, it almost is part of the compassion piece for me of-

Dr. Elizabeth Moran: Totally.

Sarah Nicastro: ... "Don't let your ego make you feel the need to make things up. It's okay to not have all the answers. It's better to not have all the answers and figure them out together than to pretend you do if you don't." Now, you mentioned some of the tough questions. I want people to get the book and read the book. So, we don't need to go through all of the examples, but-

Dr. Elizabeth Moran: I'm happy to.

Sarah Nicastro: What is the advice on ... Obviously, you should anticipate that you will get some, but how do you navigate those tough questions or those moments of extreme resistance without taking it personally or losing focus, confidence, energy on where you're trying to get to?

Dr. Elizabeth Moran: I think the whole point is these conversations are hard. So, what I like to say is it's not that you're ever maybe going to feel great about having these conversations or that you're going to like them. It is, again, shifting a bit to be able to tolerate the discomfort. And most people that I have found, they build the skill over time. And then they start to have a couple of things, which is what's in the book. So, let's talk about that. The first thing is it's normal. As soon as you shift your mindset that somebody's reaction or tough question is not a barometer of my change leadership ability ... And it might not even be a barometer that they're resisting change or not. Resistance is simply concerns that haven't yet been addressed. So, if you can shift to that, that often helps again ... As I like to say, as soon as we trigger curiosity in ourselves, that oftentimes alone reduces our own anxiety. In the brain, there's a different emotion that's now in line in your amygdala, and it's not fear or anxiety. That's one.

Two is if I've taken some time in advance, given what I know, and prepared for some tough questions like, "Why do we need to do this when everything's going so well?" Or, "I'm already overwhelmed." Or, "Am I going to lose my job?" Or whatever. [inaudible 00:31:22] you take some time in advance, there are ways to handle that. What I like to say to leaders is across the board, the one tip that will really help is, "Stop thinking you have to give an answer right away." And again, we think about where I should be asking more and telling. If someone clearly is coming forward with a question that's very clear that they just have the wrong information, then yes, tell is like, "Hey, let me just make sure I'm clear." Oftentimes, it's simply playing back, which is what service people are trained to do with clients, "Let me play back. When I just want to deescalate conflict, let me play back what I hear you saying. Okay, great. Yes, boom."

If there's more of an emotion behind it, telling can start to get into a debate. That's what you're trying to avoid. First of all, as you know this, you can say something like, "Hey, that question makes sense. I think I understand why you're asking it, but I'd love to get some more information. Why is that coming up for you now? Or can you give me some more information?" That does two things. It enables the person to sometimes even get clearer on what it is, especially if there's emotion involved. And so it could be, "Hey, what are you concerned about? I think it's this, but tell me more." So, the leader is simply there, helping the person get to the bottom of stuff. But that does require in that moment, that the leader has already kind of come into it and said, "Okay, I'm going to take off my analytic network hat. I'm simply going to put on my empathetic network."

Now, you had said you are probably more geared towards having a preference. Me too. That said, when my brain is focused on a goal, I'm on a tight timeframe. I got another meeting coming up. I'm in my analytic network. And so I'm going to be much more likely to tell. So, part of it is being very clear in this conversation ... This may be a tough one. So, I'm going to have some notes. I'm going to have a couple of questions I can ask back, and then I'm going to make sure I take time. And if we're running out of time, I'm going to say, "Hey, let's continue this." But the whole point is can you ask a couple of questions first, let the person talk a minute and then say, "Huh, that's a great question. If I was in your shoes, I could understand why you're asking it. Here's what I know right now, and here's what, still, we don't know."

The other thing that's really tricky here, and this goes back to the neuroscience concept of uncertainty, oftentimes, it's hard for people when, again, change wasn't their idea. It's being foisted on them to feel okay about moving forward if they don't have all the answers, but leaders and frontline people. Oftentimes, it's important for the leader to say ... If they are not able to answer a question, be very clear about, again, "Great question. I can understand why you're asking it. We don't have an answer now. Is not having an answer preventing you from doing your job right now? And if it is, listen, that's good to know." But oftentimes, people just don't like not knowing, and they'll feel bad about it. They'll feel uncomfortable. And that's important for leaders to say, "Look, I totally get it. Your question makes perfect sense. Here's my commitment to get you an answer. But I think in the meantime, you'll still be able to do these things even if it's uncomfortable. Am I right about that?"

So, it's just always trusting your people that they're trying to do the best they can with the information and pausing for a minute, and just simply joining them. Doesn't mean agreeing. It just means, "I'm going to be present enough for you for these next 10 minutes just to make sure I'm getting what it is that is important to you.”

Sarah Nicastro: Yeah, I think that distinction that acknowledging emotions does not mean agreeing with them is a good one because people want that acknowledgement. They want to feel heard. That doesn't mean you are agreeing, conceding. It's just a matter of allowing them to feel that way and feel heard, and then to your point, finding the solution. Okay. One of the things I want to talk about is change fatigue. We have had a whole lot of it over the last few years. I think service, we had a big push of digital transformation and technology change. We've had changes in, "What are customer expectations, and how do we shift service delivery or business models to meet those needs?" And then obviously, the last few years, that's all been compounded by changes as a result of the pandemic, et cetera. What are the thoughts on change fatigue and how it factors in both for leaders and for employees?

Dr. Elizabeth Moran: I think you said it beautifully. The question is, "What is it that will help both employees and leaders when it seems like there's no relief really coming?" And so part of that is, first of all, understanding that this idea ... Let me say this another way. As soon as you understand that our brains are automatically tilted to the negative, that's really important information. Once you understand that, you're able to stop and pause, and stop thinking that just because your brain is saying, "Oh my God, there's something wrong. There's something wrong." Doesn't make it true. And this is the most important thing. 100% of my clients are overwhelmed and exhausted. And so the first thing we have to do is help them understand, "You are in habit." Most people's brains are in the habit of anxiety, and it's exhausting because we are not built to constantly be in fight or flight. We also know ... Little more neuroscience research, that there's been research done about ... They put people in MRI machines. They flashed images. They were trying to understand, "Is there a difference between something lodging in what we call the unconscious brain, which is more of the inner brain versus the outer brain? And yes." What they discovered was people's amygdala could be lighting up and flashing, and reacting to stuff in the environment even though their conscious brain wasn't recognizing it.

So, the first thing for leaders to understand is you have to take care of yourself. And that may mean not giving yourself access to all this bad news. It's allowing time for quiet, and it's allowing time for reflection and honoring your state. That's one. Two, it's then saying, "I'm in the habit of bad news. I'm in the habit of telling myself the worst case scenario is going to happen. I'm in the habit of focused on fixing problems. I'm in the habit of catching people doing things wrong. I'm in the habit of criticizing myself." Once you see how tilted you are to the negative, then it's figuring out, "Are there one or two things I can do that bring me joy?"

And all good change leadership, which is basically good leadership, starts with you. So, start with yourself and say, "How am I feeling about this change? Does this exhaust me? Okay, I need to take a moment and honor myself, listen to my concerns." I have tips in the book for, "Hey, if this is your concern, here's a way to reframe it." It's not ignoring it. It's not acting like it doesn't exist. It's just searching for a more empowering, optimistic way forward. Again, it's so hard for people because we think the negative is more real or more true, and it's not. It's simply our scalps working over-time of all the things that could go wrong to try to protect us. So, it's developing a new habit. Once you do that, that even alone, to start to scan for the good, to see things that are going well. Even if it's a little thing, that builds energy and resilience. The other thing is people being really clear, and you can do this with yourself, and then with your people.

And again, I used to roll my eyes at this, but not anymore after both experiencing the magic and power as a leader of using this, is strengths. What that means is, "I am clear myself, as well as my people. We know the activities that we love doing, that energize us. Doesn't mean we're going to do them all the time. It's just, "We all know." They might be a little different, so we can leverage each other when there are things that drain me, somebody else might want. Now, that's different than a skill. For instance, I'm good at PowerPoint. Thank goodness, I can do it right. It's a skill. I don't love it, but I can do it. Versus Excel makes me want to poke my eye out. That drains me. So, how do I find people who love doing that? Let them do it. Part of this is honoring on your team, "Are people more often than not doing activities that they love, or are they doing activities they love, but the organization is making it so difficult for them?"

And then how do you as a leader focus on a couple of things and practice shared leadership with your team, which is saying, "Yes, let's figure out what are the obstacles right now that we're facing? What are the things we can fix or at least speed up? And what are the things that we can't do anything about right now. It's just where the technology is at. And so what can we do to make sure we all are taking care of ourselves?" And then it's celebrating success, as you said. It's a little thing. It's a little thing. And in the book, I have a framework called Great Job 2.0, which really is most people ... Because again, we're so focused on solving the problems. Again, we're paid to do that. That's great.

But Great Job 2.0 is simply like, "Hey, let's take 10 minutes and have a conversation about what went really well, what enabled your success. Here's where I saw you shine. Thank you so much. Well done, you. And what success do you want to preserve that we can take forward? Hey, can we do this in a team conversation so we can celebrate together? Who else helped you?" It's these little things that are like 20 minutes. It's, again, changing some habits, and then also really asking your team what they need, trusting the wisdom of your team so you as a leader, aren't working so hard.

Sarah Nicastro: Yeah, I think that there's so much of this that I think is really impactful. But the whole time you were talking about the fatigue, it just made me think of how very, very important it is to really believe in the need for and the power of that optimism because I think there's a lot of people that ... Like you said earlier, there's a point in your career where you would've rolled your eyes. I think a lot of people feel that way. But when you think about not only what you're saying about how the brain is wired, but the realities of the negativity that we have all experienced and are experiencing, there is a need to bring more of that to the table. Whether it's big things, little things, personal things, team things, I think that there is a real responsibility for leaders to take that seriously and to think about how to harness that power to offset not only change fatigue, but a lot of the realities that they're facing today. It doesn't erase at all. But if that's something you can do without spending a ton of money, without exerting all of your time, that can offset some of that. Why would you not? Right?

Dr. Elizabeth Moran: Exactly. It's usually just learning about it, is what you've said, because a lot of it is leaders taking a minute and just asking themselves first, "What's stopping me from doing this? Is it a knowledge thing? Do I know how to do it? I'm not really sure I buy it." And that matters. If you don't buy it, okay. But you don't buy it probably not because it's not true. You don't buy it because you don't know enough about it yet. I learned this ... Again, I was lucky being at ADP, and then we bought the Marcus Buckingham company. Marcus has been amazing in the work he's done with Gallup and the research. Really, the couple of key questions that are the things that he's focused in on, data, after data, after data of the most engaged teams are, one, "I get a chance to use my strengths every day at work." And two, "My teammates have my back." Is a big one. Another one is, "I'm clear, basically, what's expected of me."

We talk about all of those, compassion, clarity, and communication. And again, the leader doesn't have to all of a sudden ... I think in our mind, we go to black and white thinking, "I have to become a cheerleader, and oh my God." No, you do not. You simply just have to find your own authentic way of saying, "Well done." But the other thing that really gets in the way of this is people, themselves, feel weird acknowledging their strengths and what we know ... And you've probably seen this as well, when they've done the research, joy is one of the least trusted emotions at work. And again, it's like, "Wow, we have all been conditioned that we have to be miserable." And this is what's changing now. The external world used to be a lot more comfortable to go out there and get some feel-good. It's not as much like that anymore.

And so what's happening is many people now, I believe, are truly being directed inward, and we need to find these senses of joy, whether we get it from a partner, an activity, nature, a pet, just those moments of joy. Our brains need to spend at least 20 seconds in that feeling of feel-good, so it actually chemically makes a difference as opposed to the rampant anxiety that is nothing more than a thought or an emotion. It's not real, most of it.

Sarah Nicastro: Yeah. I think too, the other kind of excuse that I could foresee leaders having is, "I'm just too busy. I'm too busy. Even if I say I get it, I'm too busy to make time to celebrate small wins because I'm focused on this big thing." And I think what we're talking about today is really the argument that it's too important not to. When you think about the intersection of how leaders are leading, and like you said, really every leader is a change leader, and then the issues that organizations have with retention and recruiting, and company culture, and employee experience and satisfaction, this is what a lot of it stems from. We can't just continually drive, drive, drive. People have to feel some sense of reward and connection to what they're doing, which comes from leadership. Super interesting.

Dr. Elizabeth Moran: Could I actually follow up on-

Sarah Nicastro: I think this is ... Yeah, go ahead.

Dr. Elizabeth Moran: I want to follow up on that because listen, I honor and fully believe ... And trust is wisdom. A leader saying, "I'm too busy." And so all I would say is, "I totally get it. I'm sure you are." There's no need to argue with that. If you're getting the results that you want with your current approach, that's great. If you're not sure and you really feel too busy, again, talk to your team. Ask your team, "Hey, I'm considering this, and I know we're all tired. I would love to hear from you all." So, leader doesn't have to do any more work. Maybe there's somebody on your team who's like, "Actually, I have a story of when this really helped me, and I'd love this." But it's making it safe for the team. And so again, it's simply saying, "Try and experiment." You don't have to, again, change who you are. You can do your, "I'm not sure I believe this. I'm reading this book. Do we want to talk about it and try it? Are we all rolling our eyes? And if we don't want to do it, then don't do it." [inaudible 00:49:18]. But that's what I say about shared leadership and, "Don't work so hard as a leader.”

Sarah Nicastro: Yeah, that makes sense. Okay. Any final thoughts? I guess one final question I have would be, if you were to want to surface one major misconception you feel leaders have about how to handle change or navigate change, what would it be?

Dr. Elizabeth Moran: I think it is that resistance is a problem. I think in that one thing, simply shift to say, "These are just people with good brains. These are just being good humans, and how do I look at it? Oh, probably some really good information there." And now, I can become curious as opposed to being like, "Oh my God, there's that difficult person again." And they may be a difficult person. I'm not saying they're not. But if you can be like, "Oh, I trust you. You tell me. What do you think?" And just ask a couple questions, that really could change a lot.

Sarah Nicastro: And expecting it instead of having an unrealistic expectation that you won't get it, knowing it's normal. It's not a reflection, like you said earlier, of a failing. It's not personal. That makes sense. Okay. All right. This is the book. Tell everyone where they can find it. That was my Vanna White moment.

Dr. Elizabeth Moran: Well done. It's on Amazon. You can get it through IndieBound, Barnes and Noble, an audio book's coming soon. But that's where it is. And also, if people want more information, they can go to my website. I do this work because I'm a nerd. As I said, I love it. So, executive coaching, if leaders want some training, it's there too.

Sarah Nicastro: That's awesome. I love people that love what they do. It makes me very happy. Okay. Excellent. Elizabeth, thank you so much. I'll make sure the links for the book and for your website are in the podcast show notes. I really appreciate you coming. I could easily talk to you for another few hours. So, maybe-

Dr. Elizabeth Moran: Me too.

Sarah Nicastro: ... we'll be lucky enough to have you back sometime.

Dr. Elizabeth Moran: I would love that, Sarah. Thank you for the opportunity to connect with your listeners and you.

Sarah Nicastro: Absolutely. All right. You can learn more by visiting us at futureoffieldserviceref.ifs.com. I want to remind everyone that we recently launched the Future of Field Service Insider, which you can now subscribe to. That will make sure that every other week, you receive the latest content we have published directly to your inbox, along with some exclusives. We also recently announced the 2023 Future of Field Service live tour schedule. We will be visiting six countries this year. So, have a look at the website to see where we will be and sign up for the event nearest you. Ah, the Future of Field Service podcast is published in partnership with IFS. You can learn more at ifs.com. And as always, thank you for listening.

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February 8, 2023 | 20 Mins Read

What Disconnects Are Holding Field Service Back?

February 8, 2023 | 20 Mins Read

What Disconnects Are Holding Field Service Back?

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Sarah talks with Jason Hamm, VP of Networks Strategic Programs at Ericsson, about what he’s learned from traveling the globe about the gaps between field service potential and intent versus execution and outcomes.

Sarah Nicastro: Welcome to the Future of Field Service podcast. I'm your host, Sarah Nicastro. Today, we are going to be discussing the question of is a leadership disconnect holding field service back. I'm excited to be joined today by Jason Hamm, who is the Vice President of Networks Strategic Programs at Ericsson. Jason, welcome to the Future of Field Service podcast.

Jason Hamm: Thank you.

Sarah Nicastro: Yes, thanks for being here. So, before we get into our discussion, tell our listeners a little bit about yourself, your role. Anything you want to share.

Jason Hamm: My role is Strategic Programs. What does that mean? I'm looking at five to 10 year time horizon, thinking about what will be trends and themes, and what could be, which is slightly different. Trying to think about opportunities to say, how do we need to transform or continually adapt, to continue thriving five years, 10 years out? That time horizon working back with the organization.

Something about me is I started as an installer in telecommunications, and have worked my way through a lot of different roles and positions. I find the greatest satisfaction in leading teams, understanding individuals, and then working with individuals to work together as a team. That's what fascinates me most.

Sarah Nicastro: Okay. How long have you been in your current role?

Jason Hamm: Only for about two, almost three years now.

Sarah Nicastro: Okay. Yeah, I think it's really interesting. This idea of the timeframe you're specifying five to 10 years out, right? We've done a lot of content and had some different conversations about, organizations obviously need to be innovating. And by that, I don't mean incremental improvement. I mean actual innovation, which is really what you are looking for. What are those opportunities?

And we have had some conversations about how sometimes, organizations expect that their operational leaders should just also put on that hat of identifying the opportunities and areas to innovate. And that's really tough, right? Because they're two different hats.

That's not to say someone can't do both or see both sides. But I think with the pace of change that we live in today, it's kind of an unrealistic expectation or unfair ask, to task a leader of a business who's responsible for meeting today's expectations, to also figure out. And in your free time, what should we be doing in five years? So I think it's really good that Ericsson has invested in that role specifically so that you can balance that out. So really cool.

And we're going to talk about this a little bit today. But I know in your role, you do a lot of traveling around, and engaging with folks, and really taking in a lot of what today's landscape looks like, and what people are thinking about the future.

So one of the things that we discussed is that we hear a lot today about people focus, right? We've had a lot of podcast conversations about we need to focus more on employee experience. We need to improve our company culture. We need to improve retention. We need to lead better through change, etc.

So there's this acknowledgement that it's important, and I think you said really well, that you feel most leaders have really good intentions, but there's this disconnect between those intentions, and then what action is being taken to really treat people differently or change that experience.

So you said, and I like this. "Many leaders do more business admin than they do actually leading. They're more comfortable talking about balance sheets than organizational psychology." And I think that's a really good way to put it. So talk a little bit about what you've observed, and how. And then, what do we need to do to close that gap between the intention and the reality?

Jason Hamm: Yeah, good. One of the things I've learned, some years ago, I did a 52 market... Within the US, 52 market tour. I asked the business leader to put forward their top 2%. Top 2%. These were technicians predominantly. And I met with those 52 markets worth of top 2% technicians.

And one of the questions I asked was, "Think about the best leader that you've ever worked for. And what were the attributes?" And it was just on an old school whiteboard, no bad answers, etc.

What I found fascinating was zero said things like they're a subject matter expert in technology, etc. And one thing that was unanimous across the board was the leader gave them constructive feedback.

So I think that's a fallacy that it's almost like an unwritten rule. All of us under a cost pressures these days, that's not going to change ever. It's very common for a leader to have the right intent and think about, "My top performers, what I need to keep doing is telling them they're rock stars." That's a common word I hear all the time. "Jimmy or Sally, you're a rockstar. You're a rockstar. Keep doing what you're doing. Thank you so much for your contributions."

But what I learned from those rock stars in 52 different markets asking open questions is they're so hard on themselves. They're harder on themselves than any leader ever could be. They feel dismissed if they're not given some, "Yeah, but coach or leader, what can I do better?" Even if you think about professional athletes that are the best in the game, they're constantly looking for coaching and advice on how they can be even better. So I think that's one fallacy maybe for leaders to consider. Another thing I would say is I think it's the vernacular when you say things like psychology and philosophy. It just feels like it doesn't fit in a business context.

But if I shared with you that psychology is a study of how we do think and philosophy is a study of how we could think, then it's like, "Wow, if you think about especially in a services community, all we have is people." And all this sudden that kind of jumps up to the top of the list to be thinking about.

So I would encourage leaders to think differently. Don't be afraid of the psychology and philosophy term. Think about what's most important for you to focus on. Your subject matter expertise as a leader is leading coaching and developing. And that requires you to really understand people as individuals, how they think, how they're motivated, how they're demotivated, etc. So those are a couple observations I've learned over the years.

Sarah Nicastro: Yeah. Is there any other gaps you would identify thinking about the disconnect between good intentions, but not actions that match those intentions?

Jason Hamm: Design thinking is a common buzzword these days. I'm not sure which consultant firm came up with that. It's very simply thinking about who you're trying to help.

I think that again, leaders consult with a lot of different folks. Leaders have the right intention. They want to get with let's say tower climbers, or plumbers, or whatever the service is, and understand their problems.

The reality of what that looks like is, it may be a crude analogy, but it's like gold mining. You have to sift through a lot of dirt to find those flakes of gold. And I genuinely believe that sometimes a leader will have a preconceived idea of what the solution might look like. They ask questions. And the questions typically, if you're asking the people that are working the challenge, they're not going to just articulate, "These are the top three things, and the ROI." They're not going to turn it into those kind of business terms that maybe a leader will have to translate it to.

So the challenge I would offer out there is really extreme immersion in design thinking. Really breathing the same air, walking the same shoes. And then constantly checking back to say, "Do I have this right?" And you got to have people that will speak up and tell you, "No, Sarah. That's not what I said. That's not what I mean when I say this. This is what I mean." You have to encourage that.

And one of the first things to think about and consider is I am not a reflection of the community I'm trying to help. That's really difficult for me personally because I used to be in the field doing field services. And I like to consider myself well grounded, and I remain connected, and I understand.

The truth is though, that's been a long time ago. And I don't think exactly a technician thinks these days, I have a different mindset, a different perspective. So that's one of the first ways, and I continually have to remind myself is really understand that you do not represent your logic. Even with your best intentions, you do not represent the people that you're trying to help. That that helps you talk to people with a more open mind and really hear them, what they're trying to say.

Sarah Nicastro: Yeah, that's a really good point. So there's really this big area around listening. And like you said, immersion. So not just surface level. "We did an all hands, and we did an open forum Q&A once this quarter." But really getting entrenched in the business and being exposed to what are the frontline workers thinking, struggling with? What's the real perspective? Okay. I like that.

So one of the other areas we talked about where there's maybe some disconnect and some opportunity to really evolve is around learning and development. So you mentioned that it's human nature for people to go after what's comfortable. I know you can't speak to every business. But when we think about learning and development, what is that disconnect? What are we not doing that we should be, or trying to do that's not really working? And what's your perspective on how we need to innovate in that area?

Jason Hamm: Yep. I'll tell you a quick way I learned something in that. On this topic, I've traveled all over the world as far as Australia. Asking people from all different industries. Field services was the common connection.

And one question I've asked the audiences all across the US, other countries, including Australia, is think about the best technician that you've ever worked with. And just raise a hand, shout out words that describe what made that technician the best one that you've ever worked with.

And I'm a little bit fascinated when you have unanimous statistics. Unanimously, not one single time. All across the world, all these different groups that don't even know each other. Not one single time have hard skills been brought up. So under technical knowledge, or Excel expertise, or etc. 100% of the time it's been the soft skills. It's been things like their ethics are second to none. I completely trust them. Their work ethic is remarkable. They have insatiable curiosity. They are a real team player. Anytime they learn something, they try to help the next person.

So what that tells me, and that's real data. I've seen it. I've talked to all these people across the world. What that says is the most important thing, as we think about developing our people, it is the soft stuff.

So that doesn't say that AI, and ML, and machine learning, and all these different, cool things. Those are really important for certain groups to know in certain aspects. Or maybe if it's in a plumbing, to really have that technical knowledge. I'm not discounting that.

What I'm saying is what I've learned is the most important thing is finding the right talent and developing that talent further. You're going to get way more ROI, if you want to call it that, by investing in people's soft skills.

So when you look at your L&D, critical path learning, etc., if you find trade specific hard skill at the top. And perhaps missing or way, way down the priority list, things that are behavioral. Check that. Think about that. Is that really the right thing to do?

And then the second part of your question is what do we do about it? Without freaking people out, there are a lot of behavioral personality tests. You can have semi guided. Basically you just take something online, you have a professional come in. They're not going to use a bunch of psychology terminology or whatever.

What I've found is people absolutely are fascinated with those readouts, because it's not a Sarah's better than Jason kind of discussion. It's a spectrum of these behavioral areas to say, "Here's how Sarah is, and where Jason is. And here's how they might complement each other in these kind of scenarios. These are the kind of areas where Jason would go to Sarah and lean on her for help. These are the kinds of things that cause tension between people like Sarah and Jason, etc."

People are absolutely thrilled by that. And it also takes a lot of the emotion out of the day-to-day business, where maybe I'm an extrovert and you're an introvert, for example. That's a pain point. And you just think, "I wish Jason would go away. He's annoying me, he's super extroverted." After having that discussion together as a team, taking your team through that, you can point to that study. You can point to that readout and just go, "Jason, you're being a little bit of extrovert," or whatever. You can take some of that emotion out of the business. And it really helps with teamwork, camaraderie, I would say. That's just an easy example.

Sarah Nicastro: Yeah. So I do think that that response you got is interesting. I also would say it's in line with what I've heard over a lot of conversations. Which is, there are aspects from a soft skills perspective that certainly are trainable. There's also aspects that sometimes are innate, that are hard to teach. Whereas those technical skills, I think there's a general agreement that they can be taught.

And so how do we shift from always looking for experience, certification, these technical things? Versus figuring out what some of those traits are that are common among our top talent, and then figuring out how do we find more of that, right?

I think what's also interesting though is how if you think about, going back to, I know some people don't like to talk about psychology, maybe like you said. But I do.

And I think when you go back to people that have that, you said insatiable curiosity. People that have that drive and that sense of ownership, etc. How they need strong leadership to feel connected, and engaged, and to want to stay.

So in an environment where for instance, they log on to the learning and development platform, and it's all just these super technical process-based things. And they're not feeling that there's an outlet for some of those traits. They might not feel they have the opportunity to really utilize them in the environment where they are. So that's where there's different connection points back to what is the philosophy of the leaders in the organization around people, and managing those relationships, and offering them training and development, career paths, etc. How are we giving people that have that drive the outlet to use it, right? What are your thoughts on that?

Jason Hamm: I'll give you an example of one solution I've used several times. And I'm sure there are many competitors that do the same. But it gets back to approximately 20 behavioral attributes.

And what's really cool, if you just go into an organization, let's say an organization says, "Hey, I really want to focus on these five roles. These five roles represent 80, 90% of my employee base." What you can do is even if it's subjective, have the leadership team say, "What are your top 2% or 5%?" Whatever. The top 5% of your whatever technician role, let's call it. What you can do is have them take this personality assessment, and it groups. So we all know, hopefully we can agree these are the top 2% or 5%. This is what the profile looks like. And it's a one to 10 spectrum. 10 is not better than one, etc.

And what you see with that is as you look for future candidates for these roles, if you see a tight, let's say it's a seven, eight. Is the spread of the top two or 5%. What that means is anything outside of that seven or eight is a stress point. Doesn't mean that someone that's lower than seven or higher than eight can't do it. But it does mean that the more they stray from that on that particular behavioral attribute, it's going to be a stress point.

So if you think about sales and extrovert. If you're a straight up one on the introvert scale, and you're in cold call sales or door-to-door sales, that's a great example of that's going to be really stressful for that individual. Doesn't mean that that individual can't do it, etc.

To me, that's really no different than if you want Cisco certification or a certain electrical license. Those hard skill things, we look at that all the time. We look at that on resume, we ask those questions on interviews. And if we believe what I learned across the globe, what I said earlier. The more important thing is these personality things, the behavioral piece. So leading from the front and taking even 50% of the same rigor we put into the hard skills, into the soft skills. It really can be easy to measure and think about.

And it's also blind. A lot of companies thankfully, are starting to really think about their diversity, inclusion, unconscious bias, things like that. What behavioral assessment is. It doesn't care what gender or color, etc., that you are. This is the truth about that person. And then you can make decisions based on what works from a personality perspective. So it kind of can help, depending on how you use it in those areas as well.

Sarah Nicastro: Yeah, that makes sense. So going back to the point about from a leadership perspective, intent versus what action looks like today, we talked about some people are more comfortable talking about balance sheets than they are organizational psychology.

Now obviously, balance sheets are important. So no one's saying to ignore that. But how do we, I guess upskill, or help our leaders be more comfortable with these conversations, these topics, and really help them to take appropriate actions that match that intent?

Jason Hamm: Depending on your setup, if you have the luxury of having some training budget for leaders, I think it's most important that you do something together as a leadership team. As opposed to if you have 12 leaders, each one going for themself. What's really ideal and has a profound ripple effect is to take them all through the same thing together. They'll have the same vernacular, etc. Then they start leading from the front, and then cascade it into the organization.

That's the most powerful approach. I would just suggest not a certain name or company, but what I would suggest is find something that's not focused on business administration. Rather, focused on how to understand people, how to motivate people, how to have difficult conversations with people. When you look at the curricula or the syllabus, those are the kind of things you're looking for. Not the business administration piece. That's quite different.

If you can't get that, if you can't get that training, there are so many, depending on how you, there's books on Audible. There's YouTube free videos of some fantastic different podcasts, etc., that you can get these sound bites and books that you can read, for very inexpensive to even free. You can really educate yourself. And it's a grind.

What I would say is it's uncomfortable. And it's just like any habit. Whether it's trying to go to the gym and you haven't been going to the gym, it's a grind. You have to commit yourself to it. And what I suggest to leaders that are really serious about it, find four hours a week. And treat that four hours like a religion. During those four hours, you're going to block off all communication unless it's an absolute real emergency. And for those four hours, you're going to work on yourself, in these specific areas.

And that may look different to you, and me, and someone else. So I think that's the part. Just get into the grind four hours a week, or whatever you can afford to give. And then all of a sudden you'll look up six months later, and A, it's become natural. It's become part of your day-to-day routine. And then B, you've grown, you've learned. And you're thinking it's more front of mind than way, way back here. So therefore, you'll be more comfortable in those conversations. And all of a sudden you'll find yourself, when you're conversing with your employees or your managers of employees, etc., you'll have these thoughts come out, because that's what's relevant on your mind. You're reading about it, you're consuming podcasts, etc. These are on the front of your mind now, so therefore it's going to be on your employees and managers, etc. So it's just a grind to get set up and go after.

Sarah Nicastro: Yeah. I think that's an important point is some portion of that disconnect between intent and action really comes back to default to comfort level. If you don't make it mandatory, if you don't put parameters around it, you're just going to get sucked back into what you know or what the demands are of the day, the week, etc.

And the same goes for employees. Going back to the learning and development. If they log on, and the technical courses are mandatory and they're at the top, then they'll do them and move on. If the soft skills stuff is at the bottom and optional, you're not doing anything as an organization to really force, gently force some of that change.

So I think it's a good point of making it as mandatory as possible, making it measurable, and making that commitment. And for a company that really wants to evolve to some degree, doing that by subset of leaders. And like you said, trickle down.

I'm not going to ask you to name your top or anything, because I don't want to put you on the spot in terms of what's the best. But just to share some of your personal sources, is there anything that comes to mind when you think of good books you've read, Audible, podcasts, etc.? Anything you would name for folks to check out?

Jason Hamm: Yes. Including a company is okay?

Sarah Nicastro: Sure.

Jason Hamm: There's a company out of Florida called ADEPT, A-D-E-P-T. And I've worked with them over a lot of different years, different companies, totally different groups. I find their approach to be the best I've ever worked with. It's highly immersive, and it's a long term. Typically, your shortest term is six months. So as a leadership team, whoever goes through it, goes through it together for six months. Every two weeks you have a session.

I think that's a really powerful approach because it's way better than let's say other things. Even if it's the same content. You get kind of immersed for a week, but then you go back. And it's so easy to fall back into your BAU. I did read Mindset recently. I do find that to be very powerful. It's the first book I believe that's been written on the mindset as I understand it. I think that might be one of the most important pieces if you think about character, who a person is, etc.

Another thing I would say that's very practical. You were talking about mandatory training and things. I agree with that. Whatever you focus on. One of my mentors said one time, "Leadership focus is like fish food to fish. Wherever you focus, the fish will come." And that's absolutely true.

Most people, probably they're listening to your podcast or leaders of leaders. And in your staff meeting, ops meeting, whatever you call your meetings, your cadence. If you're talking about the finances and all these things, if you're not talking about leading coaching and developing, if you're not spending at least five minutes of that time, every single time you talk on these soft skills and all that, you cannot expect the organization to adopt and make some of these pivots. So that's one really free. It's a free thing to do is just talk about it.

And even if it's clunky at first and awkward for that five minutes each meeting that you're having every week, that's okay. You got to start wobbly legs and clunky at first. And then all of a sudden, it will become more advanced. And people read, and become more informed, and educated, and comfortable thinking about it. So that's an easy, free way to do it as well.

Sarah Nicastro: Yeah, that's good. So we said at the beginning your role is really to look five, 10 years out, and think about what's coming. What challenges are coming, what opportunities, etc.

And so when you think about that viewpoint and the things that you look at day to day, and then what needs to evolve from a leadership perspective, what are your thoughts on what needs to happen, how things will need to change, how the gap will close or continue to widen? What comes to mind when you think about how the topics you're looking at from a strategic perspective match to what we need from leaders going forward?

Jason Hamm: If you think about the pyramid, it's going to turn upside down. We're going to move toward, some people call it the gig economy, where it's transaction based. And what does that really mean? That really means that the human doing the work, the human that has the knowledge, skill, and ability, that's performing the given task and work is in control. And it's not any longer a matter of, "You work for me at my company as a W2, and therefore you just go do what I say."

Those days will evaporate. And what we will be left with is if Sarah is a top 2% performer, and I'm representing a company as a leader and I want the top 2%, I'm going to have to use honey, not a stick. We're going to have to be the most attractive, desirable. We're going to have to have a brand that people are drawn to. That connect with their hearts, not just their mind. We're going to have to do the work. We're going to have to be the most attractive to people that have the knowledge, scalability, the top talent. It's not going to be a, "We'll pay you a little bit more and demand you to do crazy things," or whatever.

So we're going to have to fundamentally change. Some people are further ahead on that spectrum than others. But this whole 1980s type of leadership where you just kind of put your fist down on the desk and demand of your employees, those people are the dinosaurs of leadership. And either they need to change completely, or they will be obsolete. That's what's happening.

And I see some companies, I think Ericsson's at the front of that for sure, leading by example. And I see other companies. And sometimes it's the smaller field services companies that they're looking at three ring binders instead of using technology. And also, their leadership style is very much 1980s fist on the desk kind of thing. So it's an eyeopener, I think, for leaders to think about how are you leading. Because if you think about leading, just by definition, if you look it up in Webster, whichever dictionary you choose, it's not about mandating. That's not what leading is about. It's about influencing people, which requires buy-in, etc. So that's what I would throw out there for the future.

Sarah Nicastro: Yeah, I think it's very well put. And I could not agree more. So thank you for that Jason. Thank you for your insights. I really appreciate you joining me and sharing your perspective today. So thanks for being here.

Jason Hamm: Happy to. Thank you for having me.

Sarah Nicastro: Absolutely. You can find more by visiting us at futureoffieldserviceref.ifs.com. I want to remind you that the Future of Field Service INSIDER is now live. And you can subscribe on the website. That is a newsletter of sorts, where we deliver all of the latest content to your inbox every other week, along with some exclusives. Registration is also open for the Future of Field Service 2023 Live Tour. So we will be in six countries, various dates throughout the year. So have a look and register for the location nearest you.

The Future of Field Service podcast is published in partnership with IFS. You can learn more at ifs.com. As always, thank you for listening.

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February 1, 2023 | 13 Mins Read

Meet Mr. Future of Field Service

February 1, 2023 | 13 Mins Read

Meet Mr. Future of Field Service

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Sarah introduces her husband, Eric, about whom she often receives questions.

Sarah Nicastro: Welcome to the Future of Field Service Podcast. I'm your host, Sarah Nicastro. Today is a very special and exciting episode because I am introducing you all to Mr. Future of Field Service. In other words, my husband, Eric. Hello Mr. Future of Field Service. Welcome to the podcast.

Eric Nicastro: Thank you for having me. This is new for us. I like it.

Sarah Nicastro: Yeah, it's interesting because we're actually across the hall from one another, but we don't have the proper equipment to record side-by-side. So we're doing it through Zoom, like the rest of them. So let's be transparent and say that the idea for this came early this morning when I woke up to an email of a guest that had to cancel last minute, and I thought, I don't have a good backup. Who could I have on? I thought, what about Eric? That would be great. And in retrospect, I feel like we should have done this a long time ago because I get so many questions about you when I travel and talk to different people. So I'm excited to let everyone get to know you a bit.

Eric Nicastro: I'm excited to be here.

Sarah Nicastro: Tell everybody a bit about yourself.

Eric Nicastro: So, we've been married for almost 10 years now. Been together for I think, 12, something like, yeah. Yeah, 12. I am an IT analyst with Erie Insurance, which is an insurance agency here, based here in Erie, Pennsylvania. But I believe we're in 13 different states in the US. But my job as an IT analyst is to write business requirements for the digital experience team for different products that we build and different services that we build. So I do have some experience in the tech space. I spent 10.5 years in marketing and communications before being an IT analyst. I felt it was time for a change, coming to the end of that, and this was something that kind of fell into my life. I've always done work with websites and digital analytics and digital marketing. So the IT analyst role with this company really kind of aligned very, very well. And I've enjoyed it. I've been there since June of 2022 and it's been a fun process.

Sarah Nicastro: You wanted to let your inner nerd out a little bit more?

Eric Nicastro: Oh yeah. Trust me, I get to geek out over a lot of technical stuff and it's a lot of fun because I'm starting to learn a little bit more about the data analyst space and data science. So this is kind of like, I'm like, okay, I like this stuff. I like to use Excel unlike some people.

Sarah Nicastro: We're not talking about that on this podcast. Okay. So tell everyone about your t-shirt. It's another love of yours.

Eric Nicastro: So, this says the Civic Arena. This was the previous home of the Pittsburgh Penguins down in Pittsburgh, PA. And I grew up a big diehard Penguins fan and diehard Steelers fan. And so Pacific Arena is long gone now, but it always holds a special place because I watched so many games there growing up as a little kid and into my teens. And when they built a new arena across the street, they had to tear the old one down. So this is a t-shirt that I wear in remembrance of that building because it was a special place.

Sarah Nicastro: Yes. He loves hockey.

Eric Nicastro: Love hockey.

Sarah Nicastro: Loves tech things, and also is a photographer and videographer, and has actually shot some photos and videos that a lot of you have probably seen on Future of Field Service.

Eric Nicastro: Yes, I have.

Sarah Nicastro: So, as you mentioned, this year will be 10 years that we've been married and a whole lot has changed in the last decade.

Eric Nicastro: Oh yeah.

Sarah Nicastro: For those of you that don't know, Eric and I have two sons, Evan, who's seven, and Ellis who's six. They're 16 months apart. When they were born and very young, I was in my former role with Field Technologies. Eric was in his former role and both of those employers were far less flexible than the ones we have now, which was super challenging. But we've always found a way to make it work.

Eric Nicastro: We've always made it work.

Sarah Nicastro: It's teamwork.

Eric Nicastro: Yeah. That's the way we work, we just work together on it. I mean, yeah, there were some moments that were stressful. I mean, you can't look over that. It's going to happen with any time when you have a spouse traveling and there's two kids, especially when they're really little. Now that they're a little older, I don't want to say they're self-sufficient but they can do a lot more stuff on their own now and they're a little easier to manage. It still can be tough at times, but yeah, back then, yeah, I mean, I'll be honest. Yeah, it was tough. But we worked as a team and we made sure going into it to when either ... Because I used to travel for my old job and now I don't travel anymore. My job is a home office position and I have no need to go to any of our branches because I work in IT. I don't work in the insurance sales part of it.

So I used to travel and you used to travel. I used to travel a lot, but even back then when we were traveling, we just made sure that we communicated with each other what was going on, what was happening. And FaceTime is a wonderful tool now that we have our ability to stay in touch and still be able to communicate, not just over a phone or a text, but actually see each other. And that was a big thing. And it helped the kids out a lot too, because they got to see mom and dad while we were traveling, and they always liked to see a tour of the hotel room, and the view outside the window, even if it looked into a parking lot most of the time. But it did help a lot. And just communication and planning well ahead is something that I think really helped us out.

Sarah Nicastro: When I was in Paris for the live tour last year, I had the opportunity because of the time difference. It was evening there, the boys were just getting out of school and I had the opportunity to FaceTime them from the Eiffel Tower, which was really cool for them to see that and have that experience remotely. I remember, thinking about teamwork, I remember when we were expecting Evan and we were at a gathering at your parents' house, and Eric's aunt said, "Well, so you're quitting your job" to me. And I said, "No."

"Well, you're not going to travel anymore are you?" And I said, "Well, yeah, eventually." And she said, "Well, what are you going to do with the baby?" And Eric said, "Hello."

Eric Nicastro: I'm here.

Sarah Nicastro: I'm going to take care of it. Yeah, and I mean, funny enough, it's years and years later, but I still get a lot of similar questions. So one thing people ask me a lot is, how does your husband feel about you traveling so much? So tell them.

Eric Nicastro: Honestly, I mean, I'm proud of you for what you've done and for what you're doing. I mean, this is a tough role to be able to balance being a mother and a wife and having a position at a company like this. And it's very tough to balance and I'm very proud of you for how you're doing it and you love what you do and it shows through all your work and everything, the way you talk to people. You truly love what you do and I want you to keep doing that. There's no reason to stop doing that. There's two of us. We'll make it work. I mean, we always do, and that's the most important part is you make it work and I'm happy to support you. And so you rise up the ranks and go across stages with 1,000 people in the audience.

I mean, it makes me feel like ... I like to brag about it a lot because everybody at my office, when I'm in the office, they're always asking, "What's your wife doing now? Where is she this time? Where is she this time?" And I get to say all these great locations. Yeah, I mean, I'll be honest, I'm a little jealous because I'd like to go to some of these European spots too, but I'm very proud of what you've done and what you've built because a lot of this is at your hands, the work that you put into it and the results, they speak for themselves. So I'm proud of you, babe.

Sarah Nicastro: Thank you. He knows I don't take compliments well, but I appreciate it. And he is not just saying this because he is on the podcast. When I was in London last year for the live tour, I had asked him to print some note cards for me and he snuck one in with a note that said, "I'm really proud of you." And he does little things like that all the time to support me in addition to the major things that you do to support me as well. Which leads me into another question that people often ask, which is, who's taking care of your kids?

Eric Nicastro: They're on their own now.

Sarah Nicastro: Yeah. Now I will say again, for those of you that haven't heard this story before, our seven-year-old son has type one diabetes. He was diagnosed when he was three, which obviously adds a significant layer of complexity, but he also has had a private duty nurse with him since three months after he was diagnosed, who has become like a part of our family. So she is around and she does help significantly, and she is a big reason that I feel comfortable traveling the way I do because he has someone with him at school all of the time when Eric is not personally with him, making sure that he's safe. So that's huge for me in being able to do what I do when I'm away and Eric is working. And your parents come up every so often, but not that frequently. So it is almost entirely you. So how do you do it?

Eric Nicastro: I mean, Sandy, she's been a huge help. She's allowed you to keep traveling the way you do. And honestly, for both of us to have a career because if it weren't for her, I'm sure one of us would have to stay home or we'd have to find a way to make it work. And the stress of trying to do that I think would be incredibly great. And Sandy has really just been that, she's kind of been that angel, that saving grace that's been there with us for so long. She's not just Evan's nurse, she's a member of our family. I mean, she'll come to the house a little early in the morning to help get the boys ready when it's just me, or she'll stay a little bit later when I have to work a little bit later. I have an appointment late in the day that I can't get home right at five o'clock, she's here with them.

And she's somebody that has been with us through so much in the past few years that it's weird to imagine what life would be like without her because she's been more than just a nurse and a caregiver. She's been a part of this family and we love her for it, and we're eternally grateful, trust me.

Sarah Nicastro: But all of that said, I mean, she does go home in the evening.

Eric Nicastro: She does.

Sarah Nicastro: You are on your own and we don't have a live-in nanny.

Eric Nicastro: No, we don't.

Sarah Nicastro: We don't do anything like that. So it is very much Eric, dad, taking care of the kids when I'm away.

Eric Nicastro: I mean, it's fun. We have a good time. We play.

Sarah Nicastro: Mostly.

Eric Nicastro: Mostly. Yeah. I mean, there are some moments where trying to get two boys to get their baths and get ready for bed can be rather challenging most of the time. But I mean, we do it and we have a good time. I mean there are times where we get to just sit there and play Legos for 20 minutes, 30 minutes or an hour after dinner, before baths. And that is a very special time for me. I mean, that's fun for me to do that with them. And yes, we do eat out maybe a little more than we should, but it's special time that I look at, like okay, this is a special moment, so we'll get a pizza or something like that and have that for dinner instead of trying to make something here just because I know these boys, they love their pizza just like me.

Sarah Nicastro: All three. Yep. Yeah. And we do FaceTime. We try to FaceTime every day when one of us is away and I'm very hands-on when I'm home. I also was sharing recently with someone in 2022 because I did travel a lot, I also tried to take a good amount of time off. So luckily, like I said, having flexibility, we're able to make sure that I'm not thus far. I mean, knock on wood, we've been able to make sure that I'm not missing anything super significant like birthdays or kindergarten graduation. And I've tried as much as I can to be home when the boys are on break from school so that I can take a little extra time off to really spend dedicated to them. So I think we have struck a good balance. It isn't always seamless, so I don't want people to hear this and think it's perfect or effortless.

I think it takes a whole lot of work and you deserve a lot of credit. I always struggle when I'm traveling and someone says, "How does your husband feel about this? Or how does he do it?" Because women are asked that question and men are not. I don't hear anyone go up to a man at a conference and say, "How are you away from your kids so much? Or how does your wife handle it? How does she feel about you being gone?" You don't hear that. And so on one hand, when you think about equality in the workplace and getting rid of some of those biases, I don't want those questions to continue to be the norm. But at the same time, the only way we change stereotypes is by living that change. And I think in a lot of ways, that's what we are doing. And it is largely because you have the view you do about what marriage looks like, what a partnership looks like, what fatherhood looks like, and you do deserve credit for that.

Because until those stereotypes aren't stereotypes anymore, then we need to point out the work that goes into changing them. So that being said, we had a situation this weekend that made me reflect and think, boy, maybe we're going too far in the other direction. I was painting a banner for a celebration we're having this weekend, and the boys were both sitting at the table painting with me. And our youngest son said, "Wow, mommy, I just feel so bad for daddy." And I said, "Why?"

"He just does everything." And I said, "He does?"

"Yeah."

And I'm like, "Well, what do you think mommy does?"

"Well, I mean, you cuddle us, but he makes you coffee every morning" Which you do. And I am glad that he recognizes how much you are contributing. At the same time, there's a lot that goes on behind the scenes.

Eric Nicastro: You do lot more than you get credit for. You really do.

Sarah Nicastro: It's good to know that they are acknowledging the effort you put in and they appreciate you and I certainly appreciate you as well.

Eric Nicastro: Well, thank you, babe.

Sarah Nicastro: Thank you for all your support. And without you, I would not be able to serve the Future of Field Service community in the way that I have. So this is sort of the man behind the scenes that keeps everything going so…

Eric Nicastro: I mean, I'm happy to support you.

Sarah Nicastro: And you've all had the chance to meet him.

Eric Nicastro: Yeah, I'm happy to be here and support you and like I said, a lot of times I'm proud of you, what you do and for what you've built.

Sarah Nicastro: I appreciate it. And we're trying really hard to get Eric on a trip this year. So stay tuned. Hopefully you'll all see some selfies of us somewhere really fun and we'll make it happen. But I hope you all have enjoyed getting to meet Eric. He means a lot to all of us, so we wanted to share a little bit of him with you. So thank you, babe, for coming on and meeting everyone.

Eric Nicastro: Thank you for having me. I love you.

Sarah Nicastro: I love you too. All right, you can all find more by visiting us at futureoffieldserviceref.ifs.com. I want to make sure you know that we recently launched the Future of Field Service INSIDER, which is a great way for you to not only stay up to date on the latest content that we are publishing, but also receive exclusive content that you won't find anywhere else and exclusive invitations to community events. We have also recently announced the 2023 Live Tour schedule. The first event is in Sydney, Australia, March 9th. So you can find all of the information to subscribe to the Insider or to join us on the live tour by visiting us at futureoffieldserviceref.ifs.com. As always, The Future of Field Service Podcast is published in partnership with IFS. You can learn more at ifs.com. Thanks for listening.

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January 25, 2023 | 28 Mins Read

5 Common Issues that Sabotage Digital Transformation Success

January 25, 2023 | 28 Mins Read

5 Common Issues that Sabotage Digital Transformation Success

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Rudy Goedhart, Head of Digital Transformation at Spencer Technologies, talks with Sarah about the complexities that can derail organizations from seeing their digital visions realized. 

Sarah Nicastro: Welcome to the Future of Field Service Podcast. I'm your host, Sarah Nicastro. Today, we're going to be talking about five common issues that sabotage digital transformation success. I'm excited to be joined today by Rudy Goedhart, who heads digital transformation for Spencer Technologies. Rudy, welcome back to the Future of Field Service Podcast.

Rudy Goedhart: Thank you for having me again.

Sarah Nicastro: Yes. So, Rudy was a guest on episode 18 of the podcast. So, we've come a long way, my friend. Here we are back, better than ever. Rudy has a new role compared to what he did in episode 18, which is related to digital transformation, the topic for today. If you're not familiar, Spencer Technologies, Rudy, you can correct me if I'm wrong, is responsible for installing infrastructure, and managing infrastructure in retail environments. So, across different sectors of retail, everything technology related in a store, your teams would go in, put in place, set up, if a store moves, they go, and move all of that technology over for them, et cetera. So, your customers are retail organizations.

Rudy Goedhart: Correct.

Sarah Nicastro: Yeah. Okay, good. All right. So, you're responsible for managing technology for your customers. And obviously to do that well, you have to have a good handle on how you're using technology, yourselves. So, Rudy, and I have had numerous, countless conversations about service transformation, digital transformation, all of those types of things. And I think the five issues we're going to talk about today are issues that not only has Rudy had to encounter, and overcome in his role heading digital transformation, but they are ones that I think almost all of you that are listening would agree that you have encountered as well. So, these are things that very commonly get in the way of digital transformation success. I've recited statistics before, I don't have them in front of me, but I know IDC for instance, there's some humongous percentage of digital transformation initiatives fail, and there's these common reasons why. And so today we're going to talk about some of those. So, up first we're going to talk about legacy thinking. So Rudy, what are your thoughts on how legacy thinking can get in the way of digital transformation success?

Rudy Goedhart: Yeah, so that's a good one, Sarah. The legacy thinking we've struggled with quite a bit both within our own organization as well as with others that we've partnered with. So, what we find, and whenever you talk about change management transformation, the very common things that come up very frequently are simple statements such as, "This is how we've always done it, this is how we did it before. Why do we need to change?" I've got a giant pile of cheese right next to my house. Why do I need to go find more cheese? Who moved my cheese reference there. But so legacy thinking is a big problem. Change is very important. Transformation's very important for an organization to stay relevant, and to become more relevant to grow the business. And one of the biggest challenges is communicating that across all of the stakeholders, making sure that everybody understands why we're changing, not just what we're doing, but why we're doing it.

And I'm pretty sure in the past, I've referenced it before, if you tell somebody to press a button, they're going to try to do a best effort to press that button anytime that you tell them to. But they're not going to keep it up. They're not going to stick with it simply because they don't understand the reason why. So legacy thinking has been quite the challenge, and it falls almost in the second category that you haven't initiated yet. But the alignment part, the organization does need to be aligned for change in order to get that legacy thinking problem to go away as well. If everybody knows where we're going, why we're going there, what we're looking for, what we're looking to become, you can get people to be part of that transformation culture that ultimately we're trying to get to. But it's nonetheless a challenge.

Sarah Nicastro: Yeah. I think this is such a emotional, psychological response, right? I mean, it's a very human thing of "No, no, no, I would rather stay in my comfort zone." Well no, this is working. Like we're doing fine. The company's doing fine, so why should we go mess that all up to do something different? There's this idea that if it ain't broke, don't fix it. And I think the way this presents itself in different businesses is super interesting, because when you have issues with legacy thinking among the frontline, you're really talking about change management. It's a leader's role to communicate the reason for the change to get them bought into the change. But what can be really, really challenging for organizations is when the legacy thinking sits at the very top of the business, because that prohibits a lot of forward motion.

If the people making decisions are the ones that are risk averse, that are complacent, that don't want to rock the boat, then it makes it really hard for anyone in the ranks to really have enough initiative to push that forward. So, I think people get there one way or another, but it's, I think, very frustrating for employees when there's kind of some outdated mentalities in top leadership. Because when you have anyone who is driven, or innovative, or creative, it really squanders that. So, yeah, I don't know what your thoughts are on that.

Rudy Goedhart: No, I think you're dead on that it comes top down. So, anything change definitely goes top down. So, last time we talked, I was just responsible for business intelligence, so it was really data analytical driven, and I said my pieces on that. Since then, rolling into digital transformation, which, so a little bit backstory there. So, we started in systems development, then went to business intelligence, then went to digital transformation. So, in the digital transformation world, I've gotten much more involvement with the people portion where systems development is super systems focused. I don't want to say it's easy, because nobody will say it's easy, but all you're responsible for is delivering the solution that people are asking for, and you deliver it, your portion is almost done with that. Business intelligence, you're responsible to making sense of all the data, looking at it, finding the problems.

But again, in the transformation world, it's the people that played the very biggest role because not only are you responsible for getting the technology to do what it needs to do to grow the business, and to make the people more efficient, and just overall increase the customer, and employee experience, you've got to roll that out, and sell it as well. So, I've taken much more of a sales position there, and I have encountered situations where seemingly everybody's on board, everybody's part of this change champion list, but then internally it goes something a like, "Hey, we got to change this system. It's not going to work, but let's give it our best effort anyways." So, even if everybody on the surface is on board, the message that gets relayed outside of the very controlled meetings is super important. So you don't just need the public, you need the actual buy-in.

You need to make sure people understand what they're doing, that they're excited about it. Legacy thinking is a fear of change. And you know mentioned it change is hard, and there's so many articles on it. Change is pain, change registers to the human brain as pain. You've got this valley of despair area in change management. There's so many references. Change is hard, change is difficult, change is pain, but change is exciting, too. And that's really something that I like to relate to people. Look, for whatever reason, we're doing things today, but if we can do this, here's what you get out of it. Here's what we can do with it. You start listing all these people, you start getting the people excited about the change, but that needs to come top down. And that is so important to get [inaudible 00:09:02] on board.

Sarah Nicastro: And I think, as someone leading digital transformation, bringing that enthusiasm to the table is a really important part of the role. But moving on to the next topic, so is alignment. I was saying when we were chatting, your role is a lot like herding cats, because there's all of the functions of the business. They have different opinions, different objectives, different needs for the technology, different visions of where they want to go. And somehow you have to figure out how to get everyone on the same page, and to take all of those silo functional visions within Spencer, and make them a Spencer vision, one vision, and then prioritize how that all happens. So, it sounds pretty easy. And how's that going?

Rudy Goedhart: Oh, man. So, alignment is absolutely the very biggest struggle that I've faced for probably the better part of a decade right now. And it's something that I'm not super excited about to talk about, because there's been some real struggles, and some real pains in this. So having sat in several areas of the organization in Spencer, we've always had a lot of things to do. Being in technology, providing organization where we support multi-site corporations such as recently onboarded Lego, super proud, and super excited for that.

Sarah Nicastro: My kids would love that.

Rudy Goedhart: I love it. I can't lie about that. So, someday I'll go to the headquarters, and that's kind of on my bucket list now. But anyways, so we are onboarding these technology companies. We're always moving. We cannot stand still. We cannot be stagnant in what we offer, or how we do because ultimately we're tying into all of our vendors' software systems. And with that comes the need for us to have a system that is super strong, and then be on top of that. So, the alignment to make sure that technology is important, that we have the right technology in place, that we have the right people in place, the right priorities has become very important. What we faced before is that all of these priorities, all of these needs got mangled where each officer in the organization had, for example, their priority one, two, three, four, five. To me, that translates as five priority ones, five priority twos, five priority threes, and all of the small asks that came on top of it.

As a result, we were not as effective as I wanted to be. And it really wasn't until we launched an operational excellence initiative within the organization, which we called Project Phoenix, because rise from the ashes kind of story, not that Spencer was in ashes, but we're really proud about this. We're really proud about rising. And the Phoenix is now proudly presented within our office on our templates, and sometimes an email signatures. It's a gorgeous image, and the messages just as well. We are aligned now. We went through this operational excellence initiative, and we started from a very customer-centric point of view. We had all of the functional leaders, and stakeholders of the organization in one room, and we asked one simple question per workflow.

We mapped out the whole organization's workflow that had to do with service delivery. We asked, "What do you think our customers want from us?" So, everybody put post-it notes on the board stating, "Well, here's what I believe during this step of our process, here's what the customers want from us, what they would like to receive, what would make them happy, happier." And then we went over all of these post-its by Workflow, and we said, "Okay, what needs to change within our organization to get to that point?" So, we've identified what do we think our customers want from us. Now, we're at this point, how do we get there? So, now we've got... It's hard not to swear for me, but now we've got a whole lot of sticky notes on the wall, and a whole lot of topics, and a whole lot of solutions. So, then we said, okay, "Everybody gets five points. Put them where you feel that change is best implemented within the organization."

So, we marked the right items, the ones that we believe are most impactful to our customers. And of those, we now separate them into sprints from an agile implementation strategy, let's mark out which ones we want. And there were some very clear winners. So, we can all agree that the company now agrees on what's most important to improve our service delivery, client delivery, to the clients. And with that comes that alignment. The whole company agrees, we need to work on, let's say reverse logistics. There's a pain point, because it gets complicated. And next time somebody comes to my office, and says, "Rudy, I really need to change this." My question becomes, "Okay, how does that fall into the alignment? How does that fall into the item that we deem most important for the organization to fix?" Which gives me sufficient fuel to really push back on initiatives that may help a couple people here and there.

But it's still hard, right? Alignment, stays hard. I'm very happy to announce that Spencer Technologies is aligned on where it feels that the change needs to happen to best the organization, and the customer experience with a focus on that. There's still the day to day, and that's where, personally, I struggle because it's hard to say no when you know something takes maybe an hour out of my day, somebody says, "Look, Rudy, this takes me eight hours every day. I know I can fix it in one." It's really hard to say no to that. But sticking to that alignment, making sure that you use your own resources, including your own time right to stick with that alignment is absolutely crucial.

Sarah Nicastro: Yeah, I think that's such good advice. And if I'm not mistaken, prior to you taking on the digital transformation role in Spencer, that wasn't a role before. It was handled by committee, or within other functions, but it wasn't a dedicated role in the organization. Is that accurate?

Rudy Goedhart: Yeah, it was a wild west. Quite frankly, it wasn't even that well controlled. It was literally the greasy wheel. The squeaky wheel gets the grease. Yeah, it was hard.

Sarah Nicastro: And that's the point I wanted to make is going back to the IDC research that I didn't even appropriately quote early on though, but the number one barrier to digital transformation success is silos within the organization. And that's exactly what we're talking about here. And I think it's why companies who have not put a specific function for digital transformation, or innovation, or however you want to word it in place, are really struggling because it's function battling function. It's silo battle, battling silo. It's squeaky wheel gets the grease. There isn't someone responsible for bringing that view together. And the second thing I wanted to comment on that is so, so important that you said, and kudos to you guys for getting this right, is the way you prioritized was based on customer desires, experience, and value, and that is the way it should be done.

So, you're absolutely right, it gives you that framework to go back to of we made these decisions together based on what has the biggest best impact for our customers. So, here's what we're sticking to. Not every company takes that outside in objective when they're looking at how to prioritize those different needs, wants, wishlist, vision, et cetera. So, I think that's really good advice as well.

Rudy Goedhart: Yeah. And it comes with a little tale too, because arguably customer experience is important, but I can, in all honesty say I've never had a good customer experience with an employee that wasn't happy. If somebody's miserable, grumpy, disgruntled, bitter, that's not going to give you the customer experience that you're looking for no matter what the situation is. So, employee experience plays into that, but that's why it's a tale, and not a segue completely. As an employee, everybody wants to do the right thing. I've learned that over a long time. Nobody wants to fail, nobody wants to do a bad job. So, if they know that they have the tools to deliver the best customer experience, that tend to play into their happiness as well.

Sarah Nicastro: Yeah, absolutely. So, the third area we're going to talk about is technology debt. And I know that compared to many organizations, Spencer is in a really good place as far as this goes. You have some scenarios where organizations have invested in a technology that just really is not serving them, but they struggle with when do you admit defeat, and start over, and just eat that cost knowing that it's not serving you. And that is really hard for sure, but luckily you're not in that position. But there is this other idea of even when you have a core system that's working really, really well for you, digital is ever changing, so you always have to be looking for ways to continually improve, ways to evolve your platform with the needs of the business, and the value that you need to provide. So, can you talk a little bit about how you handle that?

Rudy Goedhart: Yeah, and it's an interesting topic, and it's so logical, so simple, at the same time, it's so not easy. So, I consider the software, and especially when you're talking about an ERP, about the system of record to come, the software that runs your organization, or the packages that run your organization, consider that a foundation. If you have cracks in your foundation, are you going to build the rest of the house, or are you going to fix that first? And frankly, if you're a foundation, didn't have the right consistency to put it in construction terms, you stop, you break it out, and you start over. Technology is no different. It sucks to take the loss. And we've certainly been there in the past, and I've seen it with some of the organizations that we acquired before. They've tried for years to implement the solution and it didn't stick, it didn't grab it, didn't quite get to the right place.

And they push, and they push, and it really caused disgruntlement amongst the employees because it didn't do what it needed to do, yet they held onto it. Technology, I mean the same similarities exist across all aspects. Whether we're building something, whether we're talking about employees, sometimes, you do the best you can, and you do what's right, but if something isn't working, something isn't working, and not to make that human centric, because that could be negative, but you do need the right software. For Spencer, that has been a struggle, and probably will continue to be a topic of conversation, but not a struggle at the time.

IFS, as an example is funny in that we chose it when it was recently acquired by IFS when it was just metrics, but it was such a strong product. So, in the last six years, when we see you leading the Gartner charts for service solutions, we cheer, right? I've mentioned it before, we actually sell that to our clients. It's part of our deck to our clients because we not only want to be very proud of the solutions that we have, we also want our customers to believe that the infrastructure that we deliver our business with is stable, stays up with that. Now, on the service side, we don't have that problem of course, but financially we did struggle there. As Spencer has growing to become a global service provider, we were on a finance application, which I shall not name, but it looks like a visual basics application built in the nineties.

We've all meddled with it. And it couldn't do multi-currency, you can't have more than six characters in your place, there's all of these limitations to stop us, and we could invest a lot of money, we could try to get it right, get it to the latest version, but frankly we needed a better solution. So, we started out with an RFP for a better finance system, and we got a glimpse of modern technologies between IFS cloud, and some other organizations with finance solutions. And it actually blew us away. I let our accounts receivable, accounts payable, and our financial accounting analysts see the package, and they're so excited, because they're looking at the system, they go, "Oh, my gosh, I don't have to look up taxes every state's individual website anymore, every week? What?" Right? Stuff like that. So, you get the right technology and to really help grow your company, but if something doesn't work for you, cut your losses, move on. Identify that it can, or cannot meet the bill.

And that's okay. And you know, have talked about this before, I don't mind taking a step back. Failure is often perceived as a really bad thing. Failure's okay. It's okay to start over. We all do it in our daily lives left, and right. It doesn't always work the first time, and that's okay. Sucks that you have to present it to a board of directors, and you go, "Hey, yeah, that project that costed us a lot of money, it really isn't going where it needs to go", but it means lying to yourself, and lying to your investors, and your stakeholders, because you lose the buy-in back to that whole, making sure that the people are positive about things. Being true to yourself, being true to the people about the ability to succeed with the technology that you're picking, or have currently implemented in your organization is very important to that.

Sarah Nicastro: Yeah, it's unrealistic to think you're always going to get it right, but are you learning from those missteps I think is the most important thing. I think the other point I just wanted to close on as far as technology debt goes is the other thing I see companies do that's really unfortunate is they invest in a platform that may be working really well, but it goes back to that natural tendency to complacency. They invest, it's solving the need they have, it's working well, but there may be all of these other things they can do with that platform that they just don't take the time to learn, or explore, or incorporate, which is another factor of this idea of continual improvement. And if you're leading digital transformation, making sure that you're getting the most out of all of your technology investments, and you're leveraging them to their potential.

So, you mentioned earlier the employee experience and I think that's really important as well. And I know that you understand the importance of change management, but when we were chatting about this interview, we were talking about the fact that even when you acknowledge how important change management is, and you have the best laid plans, there are a lot of variables that will change. And sometimes all it takes is one change in variable to throw a company completely off course on its change management strategy, and then things kind of unravel. So, how have you handled change, keeping your eye on the prize as far as focusing on the employee experience, making sure you're bringing employees along on the journey?

Rudy Goedhart: Yeah. And that's as possibly the hardest question you're going to ask me today. Because people are people and nobody's the same. We're all one of a kind, in one way or another, we're all one of a kind. And how we perceive change, and how we get to the goal is very much part of that one of a kind thing. So, the hardest thing, so I'll start a little bit with that in what makes change management fail. Again, I've had too much experience with that, but probably not enough at the same time, because to your point earlier, from your failures, that's where you learn, and that's something that is that mindset when you fail, you can frown about it, and you can be unhappy about it, and that's okay, but take something away from it. Take something away, take a look at why you fail. Do that root cause analysis, find out what happens, and do better.

Do better is not always perceived as a positive statement, but nonetheless. So, some of the things that we've faced internally is lack of direction, very much to the alignment portion, lack of direction's a big deal. Too many critical needs. If everything is a high priority, frankly nothing's a high priority, and that's a hard message to relay because if everybody says that their priority is the highest, then nothing is. Can't all have the same priority. Lack of resources. If you're going to pursue change management transformation of your organization, make sure you have the right resources in place to do that. I alluded to that in a little cartoony fire pit video that I made not too long ago. If I am trying to build a fire, and I'm trying to keep that going, but I got to rush between different campfires all the time, then ultimately one will burn out because I'm either using up the sticks that I needed to keep it going, or I'm not paying attention to it.

You cannot be in three places at once, but you could hire three people to tend to three fires at the same time. But resources come back to the right number of resources, both from an employee point of view as well as from a monetary point of view, technology point of view, everywhere. Impatience. If somebody wants a type of change that simply, and they're pushing a deadline on you that is too aggressive, which I would like to reference. I've heard people purposely put an aggressive deadline on something with the explanation if I set the deadline too far forward, then you're more motivated to work really hard on it and sure, hopefully meet the actual deadline that could be met. Even though the expectation was never the original deadline. That's demotivating. If you know you're going to fail from the start, where's the drive to get there?

If you set a realistic deadline, you're actually more likely to get people on board, because everybody wants to be successful. But yeah, realistic deadlines, making sure that people understand change is not instant. One of my previous leaders once told me, right now doesn't exist. You can get it right, or you can get it now, but right now is not a thing. I'm teaching my kids that, too. At age three that's hard. But wrong conditions, even if you have all the resources, and all of the right intentions in place, sometimes the conditions aren't good. If I try to change something large in my organization when I'm in the middle of peak season, it's not going to happen. People don't have the right time for it. They don't have the right mindset for change at that time. They're too busy running the company. Change in leadership comes back to that change in vision, change in direction.

When leadership changes, sometimes we find that the old plan either doesn't get the right buy-in anymore, or the sponsorship support stops, and executive sponsors a heck of a lot more than a name in a field there. There's a lot more to that. Poor transitions. If you do change, and you don't transition right into the new thing, or you don't stick with it, that's a problem. And that's something I've actually learned the hard way in change management. Once you get people on board, everybody's happy, everybody wants to change, but then once you deliver it, you walk away, the chance of it actually being a successful change does not depend on your deployment success. Deploying change is relatively easy. Making sure that it sticks is really the hardest thing.

Making sure that people stick with it, they understand why they're doing it, making sure that it doesn't get lost in the daily shuffle and ultimately it undoes the change, but people change management and people, all of those things, and then so, so, so many more. It is by far the hardest topic, but I think that communication is key. Getting the right people motivated, getting them on board, keeping communication straights so that you don't get people wondering where you are on the status of things. Making sure you stick with us both throughout the development as well as post deployments, provide the right people, the right tools, and that may roll into our next topic, but you give people the right tools to be successful with the change processes.

Sarah Nicastro: Yeah, no, that makes sense. And I agree. It is the most complex of all of the challenges for sure. All right, so the fifth, and final one we're going to talk about today is companies that struggle to turn data into intelligence. So, everyone is on this digital journey, recognizes the importance of data, puts tools in place to gather data, gather data, gather data, gather data, and then sometimes organizations are just left saying, "Uh oh, now what?" Right? Now what do we do with all of this? And so this lends itself to what our first podcast discussion in episode 18 was all about, really, was this leveraging this powerful resource that is data. But for the sake of today's conversation, I guess, when you think about the ability to leverage data, internally, to help make intelligent decisions drive business performance, and then the ability to leverage data externally with your customers as a source of value, what are your thoughts on where companies struggle to really take the data, and convert it into intelligence? And how have you done that?

Rudy Goedhart: Those are two interesting questions. Yes. So, data is powerful, and especially in the earlier conversation that we had three years, or so ago, I've made a couple statements that I've since then regret making. But in general, data is very powerful. Data can protect you, and data can be weaponized at the same time. And sometimes it turns into this data war where you get all these reports being thrown back, and forth. It's this way, no, it's this way, no. Here's what it is. So, data is very important to get right. But since then, one of the things that is most important I think is the actionability of your reports, but not just the fact that a report has to be actionable, because I've also seen that term heavily weaponized. Again, "Rudy, your report's not actionable." Okay, well what do I do to make it actionable?

Well, I don't know, but it's not actionable the way it is. Okay, well what are you trying to do? And that really comes back to what are you trying to accomplish, or what are you using the data for? Whether we're talking internally, or to our customers, when you build a report, what function does it serve? If a report is a report to look at, or dashboard, if I have power BI dashboard that is nice to look at, and it always shows green, or red, or yellow, but nobody is using that to drive any type of actions, then why are we looking at it? If it doesn't have people looking at it and making decisions, then why are we looking at it? Sometimes data is simply for decision making. If I'm talking about profitability forecasting reports, there may not be direct actions, but indirectly there of course are, because my forecast report shows that I am growing the business much faster than I anticipated. If I'm expecting, I don't know, 15 million worth of work in March, then I should staff up for that. So, it becomes actionable.

I think that actually is one of the biggest things to our customers. And here's the statement that I used to regret. I'll start actually customer facing, and I'll talk more. With customer facing, I used to state, "Take control of the narrative. Create standard reports, canned reports, provide them to the customer." And the example I used back then is you don't ask your partner, what do you want for dinner when you go out? Because the answer will be, I don't know, what do you want? You come back into this whole war of where do we go to eat, ultimately. Whereas if I ask the partner, let's go to Olive Garden, what do you want from their menu? You're going to get a straight answer, or a direction in which the answer can be given such as, "Hey, but that has a Longhorn steak", and I forgot the name of the whole place, but a Longhorn Steakhouse next door, pick me up something there, because I know you're already in their parking lot.

So, it's set to control of the narrative. But the thing that I regret is you do want to listen to your customers. Having a standard set of reports is very nice, but listening to your customers need is important, too, because ultimately being selected as a vendor for them, they have an intention for that too. They have expectations, and you want to make sure that your standard reports meet that expectation, or you enhance your standard reports by listening to them. So, what are the problems they're trying to solve? How could we help them? We have the experience of supporting tons, and tons of vendors, and corporations in the field. We kind of know what they want, but there are intricacies to each organization, and listening to them trying to find out how we can help them is big. One of the examples is a very simple asset management survey. So, data being used properly. When we go to your store, we're going to service any technology that you ask us to service, but we weren't always necessary the ones to install it.

But whilst we're there, we may as well take a quick inventory, take a look, send some pictures, and record what assets you have in your store because now you know, a simple survey after, and it's very common. It's certainly not Spencer unique there, but having that data collection capability for the clients, and then being able to report back, "Hey, here's all the devices in your store", from a very selfish point of view, could then roll into more work for us, because, "Oh, they didn't know they still had those old registers there, would we upgrade them for them?" Right. Of course, we will. But yeah, intelligence in general, I mean, it's kind of in there. Intelligence isn't intelligence if you can't do anything with it, those are just useless facts, not intelligence, and useless facts are fun, but they're certainly not always useful, and unless you're trying to break the ice, but we don't have break the ice kind of meetings with our customers that often.

Sarah Nicastro: Yeah, it makes me honestly think of the process you spoke about when we talked about alignment, and how you took all of the different stakeholders, and had them prioritize based on impact to customers. It's similar in the sense of what are the objectives you're trying to drive, whether those are internal objectives, or external in terms of customer objectives that you can provide value around, and what data do you need to work toward those goals that you can measure, and then derive those actions from? So, in a lot of ways, it's almost like working backwards from what's the end goal? If you, as a business, want to grow X percent, improve productivity, Y percent, whatever it is, what sources of data do you have that are giving you insight on how you're performing that are related to that objective? And then what actions can you derive from there?

For a customer, if they want to know X, Y, and Z, then that's where you start, and you provide those insights, and you look for ways to your point to take the intelligence you have as a business that could be helpful to them and to you, and then put it into a format that makes sense to both parties. Yeah, I mean know it's one of your great loves data, but it's just an area I think a lot of companies really struggle to get a handle on in a way that is as bolted down as it needs to be.

Rudy Goedhart: Right. And as complicated as it gets, it's also not that complicated, because you're telling a story. I mean storytelling is it's another common buzzword these days, but buzzword haven't... Same with actionability, and business intelligence. They're all good buzzwords, but at the same time, there's a lot of power behind them when used properly. And that storytelling data is storytelling all day long. And when you're having a report that instead of a story, it's more like a phone book than make sure that that report is only used when people need to find a phone number for something, don't have it displayed on a big dashboard in your building because there's no point to it, there's no actionability to it. It's a tool for assistance, and that's what really strikes the difference between actionable reporting, and just tools. Intelligence tool.

I do have a decent example, recently, where the data intelligence, the really plays into your processes as well, and the meaning of it. So in really onboarding a lot of help desk organizations lately, the two terms that come up a lot are first call fix, and time to resolution, right? Because they're not the same, but often are considered the same. So with that comes a whole lot of explanation because if I'm a help desk agent, and I'm answering a call, but I was unable to resolve the issue, because the resolution doesn't reside in our organization, and let's say I need to ticket to Granite Telecommunications to get a new phone number activated, the first call fix applies because yes, we did do everything we needed to. There's nothing else for us to do, and we're closing out our request. At the same time, the time to resolution at that point wouldn't quite be accurate for me to say, that's the ticket time, because I did not right actually resolve the issue.

I just did everything that I needed to do, and hung up so that... We're working with our help desk leadership right now. Let's define time to resolution because it cannot be different for every client, because then how do agents know how to transact within the system. And then what's your purpose of it? Are you trying to figure out how long our team spent on each ticket, Spencer's responsibility? Or are you trying to measure how long the company, the customer of ours, is in which way affected by the problem? Those are two complete different timeframes. So, define what you're trying to solve. Once you define what you're trying to solve, the business intelligence portion will come with it. And sometimes you find that you have to update a process, update your technology to make sure that you can capture what you need to. But I mean, there's tools galore these days.

You can as much as measure every mouse click, and keystroke on your employees' laptop if you chose to do that. Until measuring performance, making sure that you measure every time that they're actively looking at a ticket. So, the technology these days really supports a lot of intelligence. Arguably too much.

Sarah Nicastro: That's what I was thinking.

Rudy Goedhart: So, yeah, keep it simple. Make sure that your goals align with the data that you're displaying, and make sure that if you have actionable dashboards, that action is actually taken on it. Because if you're looking at the same report every week just to show that you're still yellow, it needs to come with action items.

Sarah Nicastro: Yeah, that makes sense. All right. Very good points, Rudy. Thank you for sharing your experiences, and your knowledge with us. I greatly appreciate it.

Rudy Goedhart: Thank you for having me. It's an honor to be here two times.

Sarah Nicastro: Yeah, I look forward to the third. We'll see how things progress, and yes, but I appreciate it. I appreciate you. So thank you for being with me today.

Rudy Goedhart: Thank you.

Sarah Nicastro: If you would like to listen to Rudy's first episode, episode 18, you can find that, and much, much more by visiting us at futureoffieldserviceref.ifs.com. You can also find us on LinkedIn. The Future of Field Service Podcast is published in partnership with IFS. You can learn more@IFS.com. As always, thank you for listening.

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January 18, 2023 | 31 Mins Read

Service Transformation: Perception is Reality

January 18, 2023 | 31 Mins Read

Service Transformation: Perception is Reality

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Adam Gloss, VP and GM of Service at McKinstry, joins Sarah to discuss how he pushes beyond some of today’s biggest challenges to see and capture the opportunity – and how he motivates his teams to do the same. 

Sarah Nicastro: Welcome to the Future of Field Service podcast. I'm your host, Sarah Nicastro. Today we're going to be talking about how in so much of service transformation, perception is reality. I'm excited to be joined today by Adam Gloss, who is the VP and GM for services at McKinstry. Adam, welcome to the Future of Field Service podcast.

Adam Gloss: Thank you, Sarah. Nice to be here.

Sarah Nicastro: Yes, thank you for being here. All right. Adam and I had the pleasure of meeting last fall, and when we connected to chat about doing a podcast together, I was really, really taken with your passion and excitement for not only what you do, but the potential that exists in services as a whole. I probably was taken with that because I am also very passionate and excited about the potential that exists. But we started sort of reflecting on how you perceive different things dictates so much of the path taken, the outcome, et cetera. So that's kind of what we're going to talk about today. But before we do that, tell our listeners a little bit more about yourself, your role, anything you would like to share.

Adam Gloss: Yeah, that sounds like a softball question, which is a great way to kick things off.

Sarah Nicastro: A warmup.

Adam Gloss: Yeah, yeah. My answer is probably a little complicated, but I think it will tell you a lot about me. So humor me. I'm the Vice President of Service for McKinstry and we work in the built environment. We are a national design, build, operate, and maintain company that specializes in critical and complex buildings and facilities for infrastructure. Ultimately, I'm tasked with leading our field service organization and developing solutions for the problems our customers face, and frankly, the society at large faces around the cost of the built environment and maintaining it, the wellbeing of its occupants, its energy and carbon impact, and the equity impacts all that exacerbates. So it's a small job.

Strangely, when you think about what I do, I actually started my career in advertising and marketing. Completely left field, right? And then spent 15 years in healthcare, first in sales and marketing and then in operations, and moved into field service about 17 years ago. When I talk to people about my background, those threads seem very disparate. They all look at me kind of like, what? And I have to explain to them. But I see a lot of congruity, a lot that ties those things together. Both of them are really focused on outcomes where helping others is critical and the work matters, and that's important to me. That gets me up and going every day. Both are environments that are talking about healthcare and thinking about facilities. Both are very dynamic. They're very fast paced. There's a lot of change, a lot of challenges. I think that gets back to attitude. I find joy in that, not frustration. And then both are very labor intensive. They're very people focused, and there's incredible challenges and opportunities around that. And I love the people aspect of that.

For me, what I do now kind of ties all of that together and it gives me an opportunity to make an impact in a very big way and to have a meeting in my work. And then I'm also really, really fortunate to work with some amazing people. That actually brings a lot of joy to me. And any success we have, I think is largely because of the quality of people in our organization, their dedication to the work that we do, and their excitement about the impact that we get to make. That excitement becomes contagious.

Sarah Nicastro: Yeah. That makes sense. And I think that's a really good way to say it. Excitement becomes contagious. So does negativity or boo hoo attitude as well. So we'll talk a little bit about that. You have been in field service, you said 17 years. I've been in this space about 15. I think maybe some of our excitement around what's going on in this space today is because of the entry point of time into it. I know for me, I've said this a lot on this podcast, when I started in this space, it was pretty segment in some ways. And it was a little bit, I say boring from the context of covering the space. All of the conversations were sort of centered around how do we maximize productivity, minimize cost. Service was a cost center. There wasn't a lot of super exciting technology advancements being adopted yet, et cetera.

I feel like what kept me interested over the last decade and a half is that I started to see that progression unfold. Those conversations started to shift and the recognition of service as a profit center on a differentiator happened and the way work is done and the way we focus on customer experience evolved largely due to digital transformation. So there's been a lot of things that have happened that have really, really flipped that impression of 15 years ago around. You've probably witnessed something similar. And here you are saying, "I love change. Everything that's going on in service is so exciting." And other people can find it daunting or exhausting or frustrating. So we're going to talk about some of the areas of change and your perception on them, but just related to change overall, what is it that you like about change? Why do you feel like you have the perspective that you do?

Adam Gloss: It's not change per se. For me, it really is about solving problems. I get a lot of satisfaction from making things work better or from finding novel solutions to a problem. And I really enjoy the creative process in that. The byproduct of that is change, but it's not looking at change for change's sake. It's, "Well hey, here's a problem, here's something that we could have an impact on. Is this worth doing? If it is, let's figure out how to do it." And that's the exciting part to me, is seeing that impact that you're having on a client or customer on a segment of the market, on your own team members or employees, on the world around you. Being able to wake up one day and look at something and go, "Wow, I helped do that." That's really exciting and engaging.

Sarah Nicastro: I want to unpack this a little bit only because I'm trying to think about the psychology of this a little bit because I understand what you just said, but what I heard is you saying, "What I really get excited about is having an impact." I think even more so than solving problems. The reason I say that is there are people that enjoy solving problems, but once they've figured out the solution, they wouldn't necessarily be energized by the thought of evolving that solution as the problem shifts. Maybe sometimes in minute ways. Do you know what I mean?

Adam Gloss: Yeah.

Sarah Nicastro: So I think you can like problem solving but still kind of be in a place where constantly having to reengage in that process can seem daunting. But I think what you're saying is what really drives you to embrace change is having an impact. And if you're focused on having an impact, what it takes to do that is going to continue to evolve.

Adam Gloss: It will.

Sarah Nicastro: Does that make sense?

Adam Gloss: It does. Yes. Yes. So you're right. And there are people who know me who will tell you that I get bored easily. I'm not a stagnant person. I have trouble with that. I know people who have been doing the same job for 20 or 30 years and God bless them. We need those people. I think even in those roles, you still though have incremental growth and change. You can think about somebody in my world, let's talk about a service plumber or mechanic or a refrigeration technician or a boiler technician or whatever they are. You can be a really, really good chiller mechanic. And it takes years, by the way, to become one. You're talking about a decade of work to really get competent and they will tell you that, well, the machinery changes on them or the customer change and they can't be stagnant either. I think to excel at anything that you do, you have to recognize there's going to be a need for growth or incremental change along the way.

I would struggle, frankly, with people who don't want to ever change what they are doing, who don't see that just to keep meeting the needs of society or customers or clients or to keep working on emerging technology or whatever, you have to be able to change and adapt. Now, I think there's fatigue that comes with that at some point, right? I can talk about how to manage that difference, that there are people who can become more tired of change more quickly than I do, and how do I recognize that and stay attuned to that and manage through that? That's a whole separate challenge. But I would say that anybody who is not willing to think about continuous improvement it’s a better way to talk about this. They're not going to be comfortable working on one of my teams. They're just not.

Sarah Nicastro: Right. Yeah.

Adam Gloss: But I think it gets back to that same thing you talked about earlier, which is about owning your attitude. Sayings around owning your attitude are overworn, but they are for a reason. You made the comment that if you are frustrated, that colors how you see the problem. You see it as a problem if you approach something. Because I'm already frustrated by this, it's terrible, it's horrible. Now I'm focused on the problem. If I can get myself past that and think, "Okay, this is what it is. How do I deal with it?" Now I can focus on an outcome, now I can focus on a solution. If you approach it with a different energy, that becomes self-fulfilling.

Sarah Nicastro: Yeah. So let's talk about a couple topic areas because I want to kind of illustrate for people what we're talking about when we're talking about perception. So we're talking really about challenge versus opportunity. So when you think of a topic that's relevant to service today, do you see challenge? Do you see opportunity? And what is that distinction? So we had talked about a couple examples when we were preparing for this, and maybe we'll just touch on a few, but one is the topic of labor. So maybe kind of summarize for folks your attitude and we can talk about how that may differ from someone who is focused on the challenge versus the opportunity.

Adam Gloss: Yeah, I think this is the perfect illustration. Labor is by far the biggest challenge that we face in my organization. And as I talk to people who lead field service organizations and other companies and other industries, it's single biggest challenge that they face. So it's universal. My own viewpoint is that it's especially acute in the skill trades. Because like I mentioned, it takes years to actually become competent at what it is you're doing. Most of our apprenticeships are four to five years before someone's actually able to work independently. I could get hung up and other people do get hung up and oh my gosh, there's not enough people in the skilled trades. All these baby boomers are getting ready to retire. We have this massive brain drain that's happening. There's not enough people going into trade schools or entering union apprenticeships. And you can get spun up on the crisis that this really is.

We are, some people say on the edge of the cliff, some people say going over the cliff. Either way it's bad. So you can get hung up on that and panic. We see people trying to buy their way out of that and offering insane sign-on bonuses or trying to steal other people's employees. "Well, I'll pay them more." Okay, where's that end? Right? Because they're going to make up a buck or two an hour more somewhere else until they go there. That's a panic mode response. If you approach it with that same attitude we were just talking about and think, "Okay, is there an opportunity in this?" This actually gets really exciting to me. So when I think about that gap in skilled trades people, and I think about the cost crisis that I mentioned at the outset, the cost to operate buildings is too high, and most of that frankly is driven by labor costs, which is supply and demand equation. Not enough people, too much demand. Wages are escalating much more quickly than they normally would.

The labor crisis you mentioned, and I mentioned the equity crisis, that there are people who are underrepresented in our labor pool. There are people who are shut out of those opportunities. There are people who are more directly impacted by the climate crisis, by the cost crisis, and they're suffering the most from this. I see a confluence. I see an opportunity to solve multiple problems in the same stroke, but I have to think about it a little bit differently and say, "Okay, if I thought about these." And said, "Okay, there are underserved populations, how do we get them into the trades? How do I maybe address the labor gap by being more inclusive, by bringing in underrepresented people?" So that's actually part of our solution. We are working on developing pathways to those marginalized or underrepresented groups to bring them into the trade, working with community partners and community organizations that work with women, people of color, veterans transitioning out of the military, people making mid-career changes or life changes like single mothers coming back into the workforce and talking to them about opportunities in field service.

Because the reality is that most of them have no exposure to it. They don't know it's an opportunity. Even if they did, they wouldn't know how to get into it. That becomes daunting. Then we're partnering with trade schools and with our local unions and talking about, "Okay, now let's create a pathway to get them the training." And then we can provide the employment on the back end and make sure that there are now living wage jobs for people with great career opportunities, that we are helping to increase that labor pool, which addresses that supply and demand balance. We manage cost escalations better as a result of that. That is not a panacea, it's not an overnight solution. It's going to be a long-term project.

But I'll tell you that between in the last two years in 2020 and 2022, we tripled the number of new hires into our field service organization and tripled the representation by women and people of color. And it was just because of thinking about that problem a little bit differently and all of a sudden we're solving two or three at the same time. So flipping that mindset and think, "Okay, I'm not going to get hung up in the problem and my frustration with it." Taking a step back, changing your energy a little bit and thinking about, "Okay, what are all these problems? How can I start to leverage this?" Now you may still have an immediate problem, you need to figure how to solve that a little bit differently, but that long-term perspective, thinking holistically, thinking constructively changes [inaudible 00:18:36].

Sarah Nicastro: Yeah. That's what I was kind of thinking as you were walking through that. It made me want to clarify for listeners, when we talk about perception, it isn't about rose colored glasses. It isn't about ignoring the complexity or the difficulty that is in each of these different areas very real. It's more about pushing past that. I think that's what I'm thinking about is maybe the difference is people getting stuck there, getting stuck in the problem to not get past it mentally to see the potential. I was reflecting as you were speaking on, you mentioned that you view yourself as a creative person. And I wonder if that's also psychologically another distinguishing factor. Because people who are creative and want to have an outlet for that creativity are the people who may be more inclined to see the problem but then want to push through to, "Okay, this, this and this are fact. Let's remove the emotion. Now let's brainstorm what this means in terms of potential." And obviously we've already talked about the fact that in most cases, that means change.

So it's just interesting. I mean I'm probably getting too deep for some people, but it's interesting to me to dig into... I think a lot of people would say, "I like to solve problems," but that doesn't necessarily mean a lot of people are default to that more excited approach to it versus frustration. Then as you dig into a specific topic area, I think it would be foolish to say, "It's all about perception. You just need to see opportunities." That's not what you're saying. You're saying, "Yes, these are real challenges." And we can acknowledge that, but if you just get stuck in the difficulty, you can't push past that to see the opportunity. So it's perception. It's also kind of perseverance. Don't get mired down in the hard because that will prohibit you from being able to go on and make these changes.

Adam Gloss: Yeah. We could do a whole separate conversation and a whole separate podcast about leadership, but I think that's a real aspect of leadership, right? That as a leader, you need to balance confidence and vulnerability. I can talk to my people about something being hard and challenging and acknowledge the reality of it, but I still have to be incredibly positive about the outcome we're working towards. Even when there's failures along the way, which there are. We never have an idea that works exactly the way that we thought it would by the time we get to the end. It's an iterative process back and forth. Sometimes it's one step forward and two steps back and sometimes it's two forward and one back. But getting yourself and your people through that to me is kind of the whole point of leadership. It is okay, as the leader, I need to be the one that carries the vision. I don't need to create the vision solely by myself.

That's the other thing that you mentioned. I do think of myself as a creative person that does give me energy, it does help. And then maybe people listening to this or watching this who don't think of themselves that way, but have other characteristics that make them very powerful leaders and who are leading service organizations. Great. Lean into your strengths. If your strength is around team building or it's around communication or it's around consensus building, leverage that. If you are a very strong organization, there are people in your organization who are creative and frankly the best ideas are almost never mine. They're a combination of lots of people's ideas and a lot of them come from the people closest to the work. So if you're not spending your time with the people doing the work, listening to the people doing the work, making sure that they feel heard and that they know that their voice is incorporated into what you're doing, it won't work either, right? So there's lots of things to unpack here and I'm spitting a lot out at once. I'm sorry.

Sarah Nicastro: No, it makes sense. When I was talking about creativity, I didn't mean that you own that, like you are the creative one. It's more that as a creative, you are energized by the process of pushing everyone to sort of the, "Okay, so here's the problem. Great. Let's set that aside. Let's problem solve." So it isn't about it being your ideas, it's just about finding the energy in that process to be able to motivate people to want to do that part. Yeah.

Adam Gloss: But if you work to your strengths, you'll find that energy in something else, right? Change is still going to happen and you have to kind of live with the idea that, okay, progress requires change to happen. And there are going to be people who get frustrated by that or upset by that. There are people who become resistant to it, but your job as a leader is to manage them through that to come out the other side with an outcome worth the pain of that change.

Sarah Nicastro: Yep. So if we look at just maybe one or two other examples, I think people understand the complexity or the difficulty, but let's just talk about the opportunity part, right? Okay. So let's talk about the market shift. So really talking about the evolution of services from more of a transaction to more of delivering outcomes. So it's a big evolution and it has different layers of complexity, but how do you view the opportunity in that?

Adam Gloss: It is one of the things that we are working most hard on at this point that we are doing in small incremental steps because it is such a massive undertaking and because there's so many components to it. There's market conditioning we need to do and shifting conversations with customers and how they talk and procure and understand. There's changes we need to do with our people in the field about how they deliver. There's technology changes that are required, contracting changes, billing changes there. There's nothing that we're not having to touch as part of this. And it is incredibly daunting. If you put the whole thing in, map it all out, you look at it, you could just throw your hands up and go, "Forget it. My customers are still willing to buy this way. We're just going to keep doing it until we don't have to."

But to me, it is incredibly exciting because of that idea of solving problems that I got back to earlier. If I'm really going to help a customer, I need to understand their problems. That's just selling all in one. But you take that a step further, if I'm really going to help them solve that problem, I can't look at old metrics or KPIs or ways of procuring and say, "Okay, this is how we're going to do it." I need to align my solution to that problem and I need my KPIs or my measurements to align to theirs. Because they're thinking about... I can go as high as you want, but let's talk about something really high level that actually we do get to impact. We can talk about carbon impact. There are hundreds or thousands of companies making carbon pledges at this point and environmental pledges that are very lofty. "We're going to be carbon free by 2030 or 2040 or 2050." And as an insider in the industry, I'll tell you that none of them have any idea about how they're going to do it. Just no idea.

That's where companies like ours come in. We can actually help guide them to solutions for this. But if I just went and approached them and said, "Okay, here's your time and material rates. Here's your markups, here's your cost for servicing this kind of equipment." That conversation does not move them towards reducing carbon impact. But instead of I say, "Okay, let's talk about how we would provide our services in a way that aligns with reducing energy consumption and carbon." Whether that's tail pipe the emissions or smokestack emissions or utility emissions or whatever it is, we can actually develop a plan to do that. That to me is really exciting. That's about solving a problem at the very, very highest level.

The challenges along the way are immense. So we're unpacking this one little thing at a time and we're celebrating small victories along the way and we have a roadmap that we're working that we can look at say, "Okay, here's generally where we're going and there's technologies we're testing that work great we're excited about and others that we think are going to that don't." There's customers who get excited about the idea and then they're up against pressures internally in their own organizations around cost, especially right now. "Well, we were going to do this, but can we put this off for another year?" I mean, you have all these things and you have to take the long view and you have to celebrate the small victories along the way and I think keep your people focused on that ultimate outcome and why it is worth doing. That why becomes the driver for everybody. I don't know if I gave you the answer you were looking for.

Sarah Nicastro: Yeah. No, for sure. Let's do one more only because I know it's a very important one right now, and you brought it up, which is the economy. Again, this is something that everyone realizes is in a very challenging spot, but what is your take on how you, again, work through the emotions to the problem itself to get to brainstorming around, "Okay, so this is the reality," but how do we shift that into what's the potential?

Adam Gloss: Yeah, so I think I have the benefit like you of having been in this industry for a few economic cycles now. It's not my first downturn, it's not my first rodeo. The solution for me every time has been the same approach. Not the same solution, but the same approach. And it really is about connection. So the marching orders that we give our account managers and our sales team is go get close to our clients. Talk to them about the view from where they live. You need to see their side of this. And then work to solve. Because the reality is that people cannot stop maintaining building infrastructure. Bad things happen when you do that.

But that doesn't mean there isn't a reality that they have to reduce costs. They may be under a mandate from their governance boards or their executives, "Okay, it's 10% cost reduction and that's what your budget is." I can't go to that customer and say, "Well, that's nice, but you can't stop servicing your chillers and boilers and your ventilation systems and your air filtration systems and your plumbing." If you stop servicing your water systems and your sewer systems, that becomes a real problem. You can't just tell them no. But we talk about, "What can we do?" And I think it's that same thing we talked about, that mindset or the attitude of understand what the problem is, detach yourself, it's not personal.

And if we focus on the long term, I'd rather keep that customer and have that customer know that we worked with them through their problem. And when we come out the other side of this, they see us as a partner and now we can talk about reinvestment and what do we need to do? And in some cases, there are solutions that come from this that are very different and very creative. We can talk about changing the service model. We can talk about moving to an as a service model and then thinking about how control or ownership of infrastructure may change. This can be taken very, very far, but in the simplest conversation sometimes it's just, "Hey, help me cut 10% for my budget for the year." At the end of the day, can we do that? Yeah, we can probably figure out how to do that.

Sarah Nicastro: Yeah. I was just thinking there's also an element of acceptance that I think maybe it's some of these different areas of change, there's fear associated with the problem that we have to push past and realizing that. So in this situation, I think the closeness with customers is important, but what you're also saying is there's certain realities to some of these big challenges that we just have to accept. Because the harder you try and fight the reality, the more time, energy, resource, money you waste on efforts that are really futile. So whether that means, in this example, you have to look at the long view and realize that if we accept the reality, we work with the client to reduce their investment over a period of time, but maintain the relationship. Then when things shift, we have the relationship to evolve. Or whether that's we accept the reality and then we work to create new-

Adam Gloss: A different solution.

Sarah Nicastro: Or different offerings to offset what may be going on in that arena. There could be multiple solutions. But if you stay in, "No, we're not doing that," you have to... It's really being focused on your own outcomes versus the customer's outcomes. You kind of get stuck in protecting, and that sometimes means ignoring or avoiding the reality, which prevents you from really getting to the brainstorming part.

Adam Gloss: The brainstorming part is critical, and you are absolutely right. Sometimes you actually come up with new offerings. If you think about that outcome-based solutions, we are piloting some of that now with clients where part of what their goal is cost reduction. Now, I don't need to think about... I'm getting a little in the weeds here. It may be that what they need to think about is an operating cost reduction, but there's also capital costs. When you start thinking about those two together, you can re-engineer or reimagine solutions in a very different way that you couldn't.

Sarah Nicastro: A mutually beneficial way.

Adam Gloss: Correct.

Sarah Nicastro: Right. I mean that's the thing about outcomes as a service. I mean, when it's done well, it benefits both parties. It just goes back to the whole topic of this discussion. It requires a significant amount of change. A company cannot shift to that model without really digging in and making some foundational changes. I always say when you talk about outcomes based service urbanization, that is not a service transformation, it's a business transformation. So you cannot do it within service as a function. It's a whole foundational shift in how a business operates and that's why it's complex. But there's also a ton of potential for those that are willing to take that on.

Adam Gloss: Let me give you one more example of this. It's very, very specific, but I think it's very illustrative. So we have that issue. Customers are coming to us, it's very real. "Hey, I need to cut 10%, 15% from my operating budget." We can have those conversations about capital and outcomes and things like that, but none of our customers are ready to have that conversation, none of our customers wants to have that conversation, none of our customers have the power to have that conversation. Part of what we did and are doing is going to our vendors and going, "Okay, what solutions are there? Here's where some of our cost centers are? Let's put the emotion aside. Let's analyze what our actual costs are, what our cost centers are providing this service."

One of our biggest ones is changing filters and air handling equipment. Same thing you do in a filter in your house. You got to change the air filter. Buildings need that, but you're not doing a filter. We have semi trucks filled with filters. There's a lot of them. The material and labor cost is incredibly high. And that filter is typically in there for three months. It's taken out and it goes in a landfill. For a large building, it could be tens of thousands of dollars every single time we do a filter change. We went to our filter vendor and said, "How do we solve this?" They came to us with an extended life filter that we can use for six to 12 months, depending on conditions. We go to our customers, "Okay, if you really want to reduce costs, here's a way to do it. We can eliminate an entire filter change. We can save you." Or we can eliminate two filter changes. We can do 25-30%. Not 10, not 15, we're saying 25 or 30."

Now people are listening and thinking, "Oh wait a minute, but you just cut your revenue dramatically." Well what you're forgetting is I have a labor crisis. If I can take that labor and apply it to better use now and service more customers and grow my market share because I'm not doing the lowest common denominator work that I was doing, it solves a big problem for me or helps solve a big problem for me. It's a win-win, right? But we're doing this every day, right? And it's not that those extended life filters are not available to other companies. We don't make them. We didn't design them. We don't have a patent on them. Any mechanical contractor can go and buy them. They just didn't think to ask the question. They just didn't rethink how they're approaching the problem.

And at the end of the day, the customer's still getting the same result that they were getting and they're saving 25% and they look like a hero to their boss and we have a much tighter relationship with that client because we are the ones that thought creatively about how approach that problem. Oh, and by the way, I just cut my labor need on that account by 25% and I can go sell another account and I can actually grow our business. When Covid hit, we grew our business 25% that year. Not for this solution, but because we thought about other things to do, just to your point.

Sarah Nicastro: Right. Yeah. No, that makes sense. Okay. I want to go back to one of the points we touched on, which is as a leader, the role you play in setting the tone around this is huge. And you are someone who has a probably better than average amount of enthusiasm around the potential that exists, how to be creative about overcoming problems to seize that potential, et cetera. But you have to balance that enthusiasm with empathy, for one, and that recognition that, as you said, sometimes people become a bit tired of change. I think the way I put this to you when we talked to prepare for this is I think it's really exciting that you love what you do so much. I can see how some people that don't feel so positive about change may find it annoying. You know what I mean?

So as a leader, you're playing to different people's emotions and strengths, so you're kind of figuring out the best ways to leverage your enthusiasm to motivate others. How do you strike that balance between sharing your enthusiasm with the people on your teams that feel similarly or are motivated by it versus switching to empathy a bit more with some of the people that are not as excited about change or a bit tired because it's just been a lot at once? How do you navigate that?

Adam Gloss: Carefully. It's a great question. I remind myself of a few things. The first is that I am in the role I am in because of who I am and how I am built, but not everybody and maybe very few people are like me. And I'm not saying that as an ego. I'm saying that just because if everyone was, everybody would be a leader. I told you earlier, thank God there's people that want to do the same job for 20 or 30 years. I'm not one of them. I know that they're not like me and I'm not like them. So recognizing that difference I think is the first thing. And recognizing that full strength Adam can be a little bit much sometimes. When I need to dial that back for people. And being audience appropriate. So there's a way I communicate with my leadership team. There's a way that we communicate down to managers. There's a way we communicate down to frontline. And the messaging, it will change.

The other thing is culture of this company. McKinstry, there's an African proverb that, "If you want to go fast, go alone. If you want to go far, go together." We didn't make it up. But it is spoken about regularly here and it is cultural here. Now for me, I can sometimes be frustrated that change doesn't happen fast enough or things were more challenging than I think that they should have been, or I didn't quite get the outcome or result that I wanted. And I have to again remind myself it's not about me. It's about us. It's about getting there together and it's about the outcome. So those two things I try and remind myself while keeping myself in check.

The next thing gets back to what I talked about earlier, and that's listening. It is incumbent on me to be connected to my frontline, not distanced from it. And to be out in the field with my people, to be walking around the office with my people, to be having really engaged conversations and checking mood and checking attitude and asking how people are doing and really listening and measuring my own pace against some of that sometimes. So that empathy that you talked about, that's kind of how I exercise that.

I think the last thing for me is vulnerability. And I mentioned that earlier, but it's really important to me to own my mistakes. And I think it's important for my people to see me do that. I promise them actually that I'll do that  it's one of the few things I promise people. I will screw up, but when I do, I'll own it. I'll work to make it right. That develops a level of trust that I think is critical in this process.

Sarah Nicastro: It also shows them you will screw up and when you do, I will support you.

Adam Gloss: Oh, yes. It's mutual.

Sarah Nicastro: It normalizes that. Right. Like you said, you're not going to make the progress you want to make without failing. But there's a difference between a leader saying that and how people feel and a leader showing that by putting themself out there and going out on a limb and publicizing their own missteps in a way that makes people believe, okay, it really is for us to try things and not get it right the first time, and we know that because he's doing the same thing.

Adam Gloss: Yeah. And I think the last thing is celebrating with them success. And I'm actually really bad at this, by the way. I accomplish something and I'm immediately thinking about the next thing.

Sarah Nicastro: There's so much of what you're saying that I am laughing at because it reminds me so much of myself. And you said, "Sometimes change doesn't happen fast enough for me." And I'm like, "Uh-huh." And then that's the other one. I am really, really bad at it.

Adam Gloss: I know that's a weakness. I have people around me and people on my team who are better at it, and I rely heavily on them. You guys put the celebration together. Remind me that we need to pause and celebrate. "Adam, cool your jets for a couple days." Let us celebrate this and take a breath. Again, it's listening. It's listening to my leaders, my managers, my frontline people, but then also realize I can't be good at everything. I'm just not. Nobody is. So surrounding myself with people who compliment me is also really important.

Sarah Nicastro: For sure. Yeah. I think too, I mean a lot of what you're saying reminds me of you talking about closeness in relation to customers and also the long game view. You're working to have the same closeness you want your team to have with customers with them, because ultimately they are also internal customers. And I think you recognize kind of the investment you need to make in people for them to get good at this process of seeing potential and solving problems over time, which sometimes means applying more patience than you might want to, or understanding that they need to better understand the why or whatever that looks like. It's meeting them where they are instead of expecting them all to get on the Adam level. Yeah. That's really good.

Okay, so one more question, which is, in your 17 years of leadership within field service, what would you say is your biggest lesson learned?

Adam Gloss: It's to shut up and listen and really listen. Actively engaged listening. Again, I can't be an expert in everything. The people who are the most expert, the people who are closest to my customers, the people who are most expert in the work are on my front line. And if I'm not out with them, if I'm not rolling up my sleeves with them, if I'm not listening to what they tell me and taking that as expert opinion, I do that at my own peril. Early in my career, i let my own ego and love of my own ideas get in my way and they failed flamingly and spectacularly because I didn't do this. And once I learned this, things were much easier.

That doesn't mean that I'm not going to have people who are naysayers or people who can be Eeyores that you have to deal with. I think we talk about how we manage through that concept constructively. We talk about the why, if we educate, if we inform, if we give people an opportunity to feel that they would really listened to and they had input, then we all go together. And we might not agree along the way. There's going to be bumps in the road, but we all do get there together. So listening is the number one thing.

And if I had to have a caveat or a second thing, it really is about alignment, that people in our organization understand not just where we're going, but why we are going there and why it matters and why it's important and that they're invested in it. Everyone here cares deeply about what it is we are doing. And if they didn't, we couldn't be successful. The people who don't care deeply about it and who aren't invested, frankly, they don't last. They leave. They want to do something else, which is fine. But yeah, listening is number one.

Sarah Nicastro: Well, I give you kudos for, I guess, growing enough on your own to recognize... What did you refer to them as? Flaming failures.

Adam Gloss: Flaming, spectacular failures.

Sarah Nicastro: Because to be honest, I mean the reality is there are a whole lot of people in leadership positions today that have let their ego get in the way all along and never taken the time to reflect or change their path. So good for you for owning it.

Adam Gloss: I'm not saying it's still not a challenge.

Sarah Nicastro: And growing and evolving. Yeah. But the awareness is the most important thing in terms of owning it, right?

Adam Gloss: A work in progress.

Sarah Nicastro: Yes, always. All right, Adam, well thank you so much for coming on and sharing today. I really appreciate it.

Adam Gloss: Yeah. If I can just close with a thank you to you. I think what you are doing to share industry voices and ideas is really appreciated, it can be frustrating to look at the challenges we face every day, but it's comforting to know that everybody's facing the same ones and that together we can find solutions for them. I think you're building a community and a platform that helps to do that and helps shape the perception that problems are actually opportunities if we look at them right. And I'm excited about being a part of this with you and glad you're doing it.

Sarah Nicastro: Well, thank you so much. I really appreciate that. Like I said, when I started all those years ago, I didn't see myself building a career in field service. But here we are and I love the community and like you, I think I get so excited about the potential, but it's potential that is hard to see when you're in the day-to-day struggle. And if we can help inspire each other and brainstorm together, it makes everybody's journey a bit easier. I'm honored to do the work and thank you for the feedback. I appreciate it.

Adam Gloss: You're very welcome. Thank you.

Sarah Nicastro: You can find more by visiting us at futureoffieldserviceref.ifs.com. You can also find us on LinkedIn as well as Twitter. The Future of Field Service podcast is published in partnership with IFS. You can learn more at ifs.com. As always, thank you for listening.

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January 11, 2023 | 13 Mins Read

5 Service Predictions for 2023

January 11, 2023 | 13 Mins Read

5 Service Predictions for 2023

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Sarah shares her thoughts on what she expects we’ll see unfold in service in 2023.

Sarah Nicastro: Welcome to the Future of Field Service Podcast. I'm your host, Sarah Nicastro. For those of you that tune in regularly, you may wonder why I'm doing yet another solo podcast. And I promise there are interviews coming soon, but I'm asked every year to share my predictions for the year around what will happen in the service space. I don't love the term predictions because I think it puts a lot of pressure on anticipating a future that none of us can really do, but in 2022, I did have the opportunity once again to travel and have a lot of different discussions with service leaders across industries and different geographies. And so, I'm happy to share my perspective on some of the things I think we will see an increased focus on this year based on what was going on last year, what's going on in our world, et cetera. 

Prediction #1: So, in today's episode, I'm going to share those thoughts with you and you can do with them what you may. So the first prediction, for lack of a better term, is that I think we will see companies selectively increase cost reduction measures. So this prediction is interesting in the sense of when I started in this space, it was early 2008, and the way service and particularly field service was viewed within an organization was very, very different from how it is viewed today. Almost every conversation I had in my early days in this space was around cost cutting. Everything was really, really focused on squeezing every last ounce of productivity and efficiency, reducing cost in any way possible. And that was because at that point, service was primarily viewed as a cost center within the business. And that perception shifted. I think it's entirely shifted. And today, we recognize service not only as a profit center in most cases, but as a really important strategic area of growth and differentiation. 

So I want to make that distinction because when I say selectively, what I mean is not that we will look to cut cost regardless of the impact or what it might affect. I think that at this point we know that service is critically important to the business, and we'll see organizations be a lot more careful about how and where they look to reduce costs. That being said, obviously, we're facing economic pressures and we do need to look at how we can be as efficient as possible and really work smarter. 

And the good news is, I think that technologically there are a lot of opportunities for organizations to use existing technologies they have in place better and/or invest in new technologies that have a relatively low acquisition cost to be able to really make some cost reduction impact within the organization. So if you think about a couple of examples, one of the biggest is around better utilization of the workforce and making sure that you have technology in place that truly optimizes planning and scheduling of your workers so that they are not wasting time on traveling out of the way, which not only increases your labor costs, but also increases your fuel costs and make sure that they're not running into situations where you're having repeat visits, those sorts of things. 

So that whole area of maximizing the utilization of your workforce, increasing first time fix rates, eliminating unnecessary travel, those are areas that I would say some companies have truly, truly optimized, but a lot have not. And so that's a very easy starting point to reduce some cost for the organization without really affecting the value that customers will receive or the experience of the employees, et cetera. 

The same can be said in industries that are leveraging a lot of assets. The same argument for utilization can be said from those assets as well. So the same way you could look at how well are we leveraging our workforce? What is their utilization rate? Where is the unnecessary downtime or travel time? How often are we doing repeat visits? You can look at how to write size asset utilization as well. So that's another area to explore. When you think about workforce utilization and asset management, you also want to think about parts planning and management because you can have a system in place for truly optimizing the planning and scheduling of your workforce. But if you know the inventory they will need to do the work they need to do is not considered as well, that can be all for naught. And then a couple other really big areas I think are around looking at how do we increase self-service, and what that looks like in each particular business and what the customer's threshold is for participating in self-service. 

That term really can have a lot of different definitions depending on the extent to which it applies in your business. So that could be looking at reducing call volume, it can be self-scheduling, it can be validating appointments. There's a lot of things outside of true self-service in terms of resolution, excuse me, that you can consider. Another area though, is around the use of remote assistance and remote service. Now, this can have an impact from the perspective of workforce utilization in the sense of being used within a company, from employee to employee, and giving your workforce access to expertise if they get stuck, if they need assistance to again, eliminate that repeat visit, increase first time fix rate. It can also allow you to bring on new talent and get them to a point of revenue recognition faster if they are supported in a "hands-on" way by an expert remotely. 

But there is of course, an opportunity to use that technology with customers and either find some resolution remotely or make sure that you have a very detailed view of what is needed when onsite work is scheduled so that again, your technicians are showing up, knowing what they're going to run into, fully prepared for that first time resolution. So I think there's a lot of ways that technology can be leveraged to reduce cost within service delivery. 

And finally, I think knowledge management is another big area to look at. So again, you can get the technician where he or she needs to be with the inventory they need, but do they have access to the insights that can really empower them to do whatever it is they come across on that job? So I think those are just a handful of areas that give some insight into what I mean when I say that I'm referring to selective cost reduction. 

So not things that are going to detract from the customer experience and ideally not things that are going to detract from the employee experience as well, right? Because we've recognized how critically important it is to focus on the employee experience to achieve our customer satisfaction objectives. So we really want to look for ways that we can promote working smarter and reducing the unnecessary aspects that are incredibly time consuming that likely field technicians don't enjoy doing anyway, that ideally if resolved, not only don't detract from, but improve the customer experience. So that is my first prediction for what we will see in 2023. 

Prediction #2: Tied to that, the second prediction is sort of zeroing in on one of the things I mentioned there, which is, I do believe we will see wider adoption and acceptance of remote service. I think there's far too much value to come from leveraging remote service or its use not to grow and expand. I know that there are challenges for sure. Change management is one that gets brought up a lot, adoption. I think really one of the conversations that companies struggle with the most when we talk about remote service in the sense of actually changing service delivery. By that I mean not use technician-to-technician to simply help one another, but really implementing a remote first service approach and using that as your first wave of resolution with customers. 

I think really one of the biggest barriers is that companies who are still providing transactional service, are struggling with how to present remote service to their customers because those relationships are still based on those transactions rather than the conversation being value focused and value centered. So when we think about the overall transition away from transactional service to more outcomes based service, advanced services, that's the point where remote service makes a lot more sense because your customers are choosing to work with you based on the value you are providing to their organization, not based on the amount of time that you are spending on site. 

So I really think that's one of the biggest barriers is where within that service evolution, an organization can realistically implement and adopt remote service as a service delivery approach. So I hope that makes sense. I do think that that evolution is continuing. We know that customers today are less interested in cool products and helpful services and more interested in the overall value that it brings to them and the outcomes that it allows them to achieve. 

And so as we evolve further with that reality in mind, I think we will find greater opportunity to put remote service in place. It simply solves a lot of challenges for service organizations in the sense of not only improving efficiency and productivity and reducing unnecessary trips and wasted time, but offering customers faster resolution and giving companies far more options for how to navigate talent gaps and challenges. Allowing them to really better utilize internal expertise globally rather than flying people around. It's impact on the environment is significant when we can look at transitioning even a portion of service that is currently done on site to remote service. I think it also fits very well with how the role of the field technician is going to evolve. So that is my second prediction. 

Prediction #3: Prediction number three is that the talent focus will shift from new talent to nurturing talent. Now, this is not to say that companies are going to stop thinking about how to recruit new technicians. That's not the case. I think though we've almost too narrowly focused on that new talent acquisition in the past couple of years and have maybe overlooked a bit the importance of really understanding and nurturing relationships with our existing talent and looking for ways for them to grow within our organizations to focus on retention, et cetera. So I think that we certainly need to continue to look for ways to not only find, but really farm that new talent. 

And we've talked a whole lot about that in the past couple of years. We've shared stories of how organizations are really getting creative about different partnerships to educate people about the opportunities that are available in service, new ways and different places to find groups of people that maybe don't have experience but are very well positioned to succeed in field service roles. So we've done a lot of talking about the new talent, and I think this year we will do a bit more exploring of how we nurture talent. So including new talent that we bring on, what happens once we have found, attracted and hired them? What is their experience like? What is our company culture like? How well are we equipping our leadership to give those employees a positive experience? Do we understand what they need and want from an employer? And are we able to provide that? 

Do they have a sense of purpose? Do we offer career pathing? Are we properly training and enabling them? Do they feel recognized and valued for their contributions? There's a lot of layers to that conversation, but I have seen over the course of my travels this year, a lot more thoughts popping up from service leaders about the importance of prioritizing our people and putting more effort into making sure that our employee experience is one that will help us to deliver the customer experience we're looking to deliver. So that's prediction number three. 

And I think just going back to the point I made at the end of remote service, if you look at how that ties in with the talent conversation, I think when we talk about moving to a more outcomes-based service delivery model and we incorporate more remote service, I think we're going to need to see an evolution of that frontline role. There will still be technical work that needs to be done. However, I think we're also going to see more of a customer success type role that will either be incorporated into what that frontline worker does or work alongside the more technical skillset. 

I think there's going to be a lot of considerations for how best to segment and tackle that work. And that may be something that ends up helping organizations navigate some of the changes in the talent pool if they can find skills that fit different bits rather than looking for an all-in-one approach. So that's on talent.  

Prediction #4: And okay, not lastly. Prediction number four is that I think we will see more service centered sustainability strategies take shape. So sustainability again is a topic that I see coming up more and more at industry events. There's more conversation about not only the regulatory pressures, but customer expectations and investment decisions, all of those types of things. 

Service is really a unique function of the business in terms of how it intersects with an organization, sustainability initiatives, because a lot of the things we talked about in the beginning related to reducing costs also have an impact on the environment. So if we can look at ways to minimize travel, whether that's through better utilization or whether that's through a remote first service approach that has an impact on the environment in a very positive way. There's also a whole conversation to be had around how the move towards servitization and offering things as a service ties very well with sustainability and really can honestly change the game in terms of how companies providing assets design and manufacture, service those assets in a way that provides the customer with the outcome they need, but does so in a sense that makes prioritizing environmental impact a lot easier to do. 

So I think we will see a lot more discussion about sustainability in 2023. I don't know that we'll get incredibly far or to the other side of the conversation. When I was at Field Service Connect in Austin in November, I led a round table on sustainability. And at least in the United States, there's some very practical questions that need to be sorted through and answered before significant strides will be able to be made. So if you take electric vehicles, for instance, yes, there's interest, but is the inventory available of electric vehicles that are of the requirements that a field service organization would need? 

And even if so, do they support the mileage that different service organizations technicians drive on a day-to-day basis? Are there enough charging stations available for use? Et cetera. So there's questions like that I think maybe won't be completely solved in 2023, but I think we'll make some progress. I think we'll have a lot more of those conversations. And it's going to be very interesting to see not only how the regulatory implications evolve, but also how customer demands shape organization strategies and how some of that infrastructure comes along in a way that making these changes a lot more practical. 

Prediction #5: And the last prediction is one that I've already alluded to, which is the march toward outcomes will continue. The journey from delivering transactional service to delivering outcomes is a really significant change. It's really an identity shift for most businesses. It impacts far more than just service. We often think of that topic as service transformation, but really it's a business transformation. And so yes, we've been talking about outcomes-based service, servitization, advanced services for quite a while, and we will continue to do so. There are companies who are truly leading the charge that have really made that change and are not only embracing, but succeeding at delivering outcomes, but there are a lot more companies that are working hard to get to that point. And so it's a conversation that will continue, a progression that companies will work through to sort out what the idea of delivering outcomes looks like for their customer base, for their company, what those layers of change are that need to take place for them to be able to work through the continuum to reach that goal. 

So I think what's very clear is that today's customers expect a whole lot more than just product and services. And I think that's a reality that is pretty widely understood. And we see organizations at varying degrees of the continuum toward really incrementally improving the transactional service that they provide and working toward that world of really delivering outcomes to their customers. So we'll continue to see progress there, and I think that is a really exciting opportunity for organizations, but certainly one that isn't recognized without a lot of hard work. So we're here to support you on that journey on all of these journeys, and we are happy to be able to do that. 

So if you have other thoughts on things that you expect to see more of this year or topics that you would like to see content on, please know that you can always reach out to me. I am happy to listen, to take feedback, ideas, and I'm here to really give insight and resources that our community needs. So if you have thoughts on that, please get in touch. Otherwise, you can find more by visiting us at futureoffieldserviceref.ifs.com. You can also find us on LinkedIn as well as Twitter. The Future of Field Service Podcast is published in partnership with IFS. You can learn more at ifs.com. As always, thank you for listening. 

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January 4, 2023 | 3 Mins Read

2023 Sneak Peek

January 4, 2023 | 3 Mins Read

2023 Sneak Peek

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Sarah starts the New Year by sharing an early look at some exciting news from Future of Field Service.

Happy New Year! 

2022 was an exciting year for Future of Field Service, and 2023 promises to be as well. I am going to share with you today a few sneak peeks of what we’ve been up to and what fun, new things you’ll see from us in the near term.

But first, in case you missed any of our end of year coverage there are some things that are worth revisiting – 

  • Top 10 of the Podcast (podcast 193 on December 14th)
  • YIR – key points:

Not only did 2022 bring our first-ever global Live Tour, but When we weren’t traveling, we kept the content flowing with more than 50 articles and 51 new podcasts. Here are some really cool stats according to Spotify’s “Wrapped” review for the Future of Field Service podcast:

  • 1,503 minutes of new content
  • 40% more listeners and 28% more followers in 2022
  • Listeners across 37 countries with the top five being the United States, Sweden, the Philippines, Germany, and Spain
  • Among the top 15% most followed podcasts
  • Among the top 15% most shared podcasts globally

This month is the fourth anniversary of the Future of Field Service platform – and it makes me really happy to reflect on how we’ve grown. I remember curating the content for the site launch, and we began with just ten pieces! We’ve since added the podcast, in person events, and so much more. 

As a result, one of the exciting things we have coming is a new website – one that better fits the increased volume of content we have and will allow our users to more easily peruse all that’s there. This is a project that has taken more work than I realized it would and the efforts of an entire team. I appreciate all of the hard work that’s gone into the new site and look forward to your feedback when it launches. 

Another project in the works is what we’re calling the Future of Field Service INSIDER – a newsletter-plus, if you will. The INSIDER will be bi-weekly and will not only ensure subscribers stay up to speed on the content we’re publishing, but will also provide access to exclusive content and community connections. You’ll be able to subscribe to the INSIDER very soon, so stay tuned for more! 

And finally, we’ve already been hard at work on the 2023 Future of Field Service Live Tour! Yes, we’re at it again this year. We received very positive feedback on the 2022 tour and for this year we are working hard to outdo ourselves. We have some plans for how to evolve the content approach that we think our community will really like and we are also visiting not only some new cities but a new CONTINENT! I’m so excited to meet even more of you in person this year and to see again how this community can bring people together across the globe to build collective knowledge that will truly transform service. The 2023 Tour schedule will be announced soon with registration to follow – so keep your eyes peeled and make it a point to join us! You won’t regret it. 

As we begin a fresh year, I want to thank you all for being a part of the Future of Field Service community – I appreciate you. Let’s head into 2023 with intention, renewed energy, and the knowing that we can all help one another along the way. 

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