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May 18, 2022 | 30 Mins Read

Reinventing Recruitment and Retention for Today’s Labor Market

May 18, 2022 | 30 Mins Read

Reinventing Recruitment and Retention for Today’s Labor Market

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Sarah welcomes Arran Stewart, the Co-Founder and CVO of blockchain-powered recruitment platform Job.com, who has been featured in in Forbes, Inc., Reuters, Wired, Fortune, and Nasdaq, among others, to share his insights on hiring, recruitment, and job market trends.

Sarah Nicastro: Welcome to The Future of Field Service podcast. I'm your host, Sarah Nicastro. Today we're going to talk about reinventing the recruitment and retention models for today's labor market. This is not our first podcast on this topic and it's something that we'll be talking about a lot this year as it is one of the biggest challenges that the folks that I speak with are up against. So I'm excited to welcome to the podcast today Arran Stewart, who is the co-founder and chief visionary officer of blockchain-powered recruitment platform, job.com. Arran's insights have been featured in the likes of Forbes, Inc, Wired, Fortune and many others. So Arran, very grateful to have you here with us today for a chat.

Arran Stewart: Thank you so much, Sarah. It's a pleasure to be on your podcast.

Sarah Nicastro: All right. Great. Okay, so before we get into the meat of it all, tell our listeners a bit more about yourself.

Arran Stewart: Well, so I'm originally from the UK, from London, and I live here in the United States in Austin, Texas. I've been in the what I describe as the recruitment technology or rec tech space for sort of the last 15 years. I have a very deep passion about utilizing technology to remove friction from hiring and has had sort of dedicated my career to looking at how do we make things better for the labor force, for employees? Specifically, my side is always about finding the best talent and putting them in great companies, but that often spills into some of the topics that we're going to talk about today where it's like what do companies need to do in order to attract and retain that talent? And how do we provide that consultancy to them that it's way more than a job description, it's way more than just the offer of a job these days.

Arran Stewart: Talent is scarce. Good talent is even more scarce and it requires a lot more thought process, but our mission at job.com and what we tell everyone is that we're here to help as many people feed their families and pay their bills as possible. And I live by that and stick by that. So that's me just in a nutshell. I'm married, five beautiful children and very blessed with that too.

Sarah Nicastro: Now, how did you and your family enjoy the move from London to Austin?

Arran Stewart: Yeah, that's a fabulous question. So kudos to my wife because when we moved, we had a young family and actually at the time my wife fell pregnant shortly after moving to the United States. As you can imagine, culture change, mild culture shock left a lot of family support behind that sat around my wife. My life didn't change very much because I was so busy working, traveling, kind of growing the business that is job.com. We have 15 offices across the US. So she really was the trooper and kind of made it happen. So kudos to her. But it was challenging, but it certainly was worth it. And I'm delighted to report we're very happy here.

Sarah Nicastro: Good.

Arran Stewart: Which is good.

Sarah Nicastro: Yeah, that's a big, big change.

Arran Stewart: Oh yeah.

Sarah Nicastro: And of course a lot has happened in the last few years on top of it all. All right. So we're going to go through some specific questions that I have, Arran, but before we do that, can you just sort of give a synopsis of your view on what the current state of affairs is related to the labor market, what's happening with the great resignation and kind of just sort of a state of things if you will.

Arran Stewart: Yeah. So I've been quite active on this topic and also have written several articles on it because there's this big title of great resignation, or I think the pandemic provided an opportunity of great reflection for a lot of the labor force. And I think that time of reflection and challenge has meant that many of the talent pool that would normally be more accessible or were more accessible pre-COVID are now more difficult to find for a number of reasons. I think people are more conscious of potentially their financial worth, their compensation worth. I think they're more conscious of health and their loved one's health. And there's still a level of uncertainty there. As we know, a lot of financial assistance was inputted into the economy to help people during that time, which is great, but at the same time removes the level of urgency like they would normally be.

Arran Stewart: And also there was a realignment of talent as well. So especially in the sectors where you might be front-facing, like you might be out in the field, you might be in front of customers, or you might be in front of whether that's B2C customers or B2B customers, and that opportunity was taken away for some time because of the pandemic. You are skilled labor and in that time, you may have retaken your transferable skills into other markets, which has caused these pockets of shortages of talent across various markets and hiring requirements. And I think culminating all those things together has really impacted things.

Arran Stewart: We also have seen that... And this is statistics, right? And I actually think this is a great shame, but where we saw families have to kind of huddle in together, we've seen 2.1 million women potentially not come back into the labor force because they learned to live on a single income family and they went and looked after the children and now have decided that they wish to stay looking after children. These are statistics and facts, which we need more women in the labor force. And these are just all factors that add together that now have created this hiring environment we're seeing now.

Sarah Nicastro: Yeah. Now you mentioned that it was a time of reflection for a lot of folks. So I've heard the great resignation referred to as the great awakening. Do you think that is a good kind of descriptor of where some people's heads are at?

Arran Stewart: Yes, I do. And I also think that... And this isn't necessarily by any fault of any employers, but there was a huge knee jerk reaction that happened during the pandemic if we all remember like Q2 and Q3 of 2020, which was just barbaric in some respects, but companies weren't particularly loyal necessarily to all of their employees, especially those ones that may have been in positions that would suddenly not be in demand right now. And in order to protect the company, they may have shed large volumes of those loyal labor force. So that's given those markets at least 18 months to sit there and kind of reflect on their worth, how they've been treated, actually, how they're viewed upon by their employers because they were so disposable at a time of difficulty, and now I think in some respects, there's an element of backlash that may have come from that too in a positive and a negative way.

Arran Stewart: The positive way being people have had a chance to really think about their career prospects and what they want to do with their lives. And maybe they've realigned. Great because you want people to be happy, but at the same time, other people may just feel a little bit sour about the whole process and be like, well, I'm not just going to come running back to you because you were so quick to maybe ditch me. And I've certainly heard those sort of micro cases talking to job seekers and candidates in the job market as for job.com, we do focus groups and we've heard that time and time again.

Sarah Nicastro: Yeah. So going back to... So you mentioned you do focus groups and I just have to assume based on the nature of the platform, you have a good amount of data. So when we look at the job seeking/recruiting end of things, what is it that you see today's candidates prioritizing in the job searches they're doing, at this point, their interviewing of the potential employers?

Arran Stewart: Yeah. So just for transparency, and I'm not sure necessarily always how relevant this is to every sector and field, but the biggest one is the opportunity for hybrid work conditions, et cetera, et cetera. That is always the biggest one or remote working. That's saying that's only applicable to some industries and some jobs. Outside of that, compensation is a big topic because there's so much press in the market and so much pressure from the hiring side. Job seekers aren't stupid. And so they're like, "I know you really want me. How much are you going to pay?" And rightly so. And there's been a lot of, I guess, reflection alignment on that because there is still concerns around healthcare and maybe the impact of what this sort of virus can have. I think it's starting to dwindle a little bit now, but it's certainly was a lot more a few months ago.

Arran Stewart: People want to know that they have a benefits package, a good benefits package. If I'm putting myself out there at risk potential role that might be front-facing, I want to know that if I fall sick that my bills are covered and that these medical bills are covered for my time. So the benefits side of things, and then there's just other competitive... I'll talk about it because it's worth talking about that everyone's now also jumping on this four-day working week concept as well. Like, hey, maybe I could work only four days a week and earn same amount of money if I'm just as productive. All of these areas and components. People are looking at a sort of like potential sort of attraction. The things that make them want to be attracted to a particular role outside of maybe a company, their culture, where the business is going, the leadership behind that company, which can also play massive factors into whether or not a business is interesting. And then just looking at normal the traditional stuff like what do other employees say about that particular company or like Glassdoor or stuff like that.

Arran Stewart: So that's sort of like a very holistic overview of some of the things I think that people are looking at as like their top strategies for maybe choosing a company or what they're going to do, who they're going to go work for.

Sarah Nicastro: Okay. Now, if you look at the employer side of that equation, generally speaking, we have to generally speak because we're not digging into like a specific industry or that sort of thing, but how well do you feel companies have evolved or stepped up to the plate to adjust to these new and different expectations and/or what is the work that remains to be done?

Arran Stewart: Yeah. Great question. So I think there's a lot of talk about it. So an awful lot of talk like there always is. And I would pay kudos to some of like larger businesses, leading brands that are always expected to kind of lead from the front, especially in the competitive landscape for hiring, but I do think that when I look at just from our side as a business, maybe more small to medium size businesses, they're not necessarily always equipped to cope with such a drastic change in a sense of the costs, the realignment, the culture change, the strategy change, and also maybe they're not quite as in tune with the macroeconomic factors that are impacting them so much. Sometimes that can be the case. 

Arran Stewart: So I think some companies are absolutely killing it and they're doing a great job and they're seeing that reflected in how they're getting good talent and retaining it, and then I'd say the tail end, the sort of 80% to 85% are still very much wanting in their strategy and are still yet to really, really now embrace those strategies for a competitive hiring strategy.

Sarah Nicastro: So for those companies that are doing a lot of talk but haven't yet taken a lot of concrete action for one reason or another, what's your best piece of advice on how to attract more talent?

Arran Stewart: Yeah. So I think that wherever they best can, whether they've got internal hired managers, HR, or if it's a smaller business and it's kind of owner manager hire kind of scenario, or if they're using third party agencies, part of your recruitment process should consist of try. You give feedback to candidates, but try and get feedback from candidates on maybe why they didn't accept the job because a lot of the time, you might get a great candidate to a point of like first interview, second interview, or they drop off and ghosting from candidates is a huge problem right now because they've got so much options in front of them, but where you can build a relationship and you can learn from your market that you're trying to hire, ask them what was it that made us not as appealing?

Arran Stewart: And try and use that from the bottom down to feedback to maybe more senior ranking members of the company to realign the strategy around benefits, packages, attraction methods, work conditions, work style, all these different components that might then readjust, realign the dials in your hiring and recruitment strategy that will make it work for you.

Arran Stewart: I think that's probably the best way. Listen to the candidate. That's the best. The source of truth is right in front of you. You can read as many articles as you like, you can look at as many bits of information as you like. Go talk to the source. They'll tell you. And if you see a trend, then you know that's what needs to change.

Sarah Nicastro: Yeah. I think that's really good advice. I think it's interesting like... So I wanted to go back to your point about one of the biggest desires being flexibility, right? And hybrid work, et cetera. And obvious, for a lot of the roles that our audience would be thinking about or struggling most with, and I'm mainly talking about frontline field technicians and service workforce. That's difficult to do in the sense that a lot of these companies are providing service all the time, right? And so they can't have people just working from home. They can't have people that decide where they want to work and when, et cetera. And so acknowledging that that's a reality. I also just want to say that for those companies, it doesn't give you a free pass to not at least spend some time getting a bit creative-

Arran Stewart: Absolutely.

Sarah Nicastro: About what the historical model is and are there any ways to evolve that that would meet some of those demands? Right? So you mentioned the four-day work week, and again, we're talking about in our audience, it's a variety of geographies, a variety of industries, a variety of sizes. So there's no way to say to whom that might be a fit, but maybe there are instances where if you did rotating schedules, a four-day work week is completely plausible, right? And that might be something important enough to some of these candidates that it makes a really big difference in the recruiting process.

Sarah Nicastro: So I think one of the calls to action I think for our audience is to think outside of the box a bit more and don't just stay so stuck in what worked five or 10 years ago as your norm that you're unwilling to reflect on what is possible, right? So I think that's important.

Sarah Nicastro: And the other thing is a lot of the... We're going to talk about company culture a bit later, but a lot of the organizations that I'm talking with because I do different focus groups as well, we've been talking a lot about how in both recruiting and probably even more importantly, retention, it's important to have a more human feel to all of this. And I think that's really a big effect of the pandemic, right? And so how you said, not only have employees recognized their worth or their value, but they want to be treated differently. And so there's programs that you can do to help with that, but you can't overlook the personal, one-on-one, human to human interactions. I think that's a big factor in how someone interviewing would feel about your company or how someone in role feels about their value as an employee. So, yeah. All right. So go ahead. [crosstalk 00:18:16].

Arran Stewart: No, I agree with you. I completely agree. And I love your statement about looking at the past five to 10 years ago and thinking that you can continue to operate like that. The labor market has moved. It has shifted, okay? The pandemic has had such a major impact across many different verticals and industries, but the labor market has moved and unless you move with it, you're going to... A company is only ever as good as the people it employs. Fact. And if you don't move, then you might find your business is not as competitive as it was five or 10 years ago for sure.

Sarah Nicastro: Yeah, it's a really important thing to get a handle on. And to your point, I feel for the 80% to 85% of companies that you said they know it's a problem, they're talking a lot about it, but they're just not making a lot of change and yes, it's challenging, but it's incredibly important, right? And so, again, on that line of thinking, I think you're better off trying some different things and seeing what works than just falling out in the discussion mode, right?

Arran Stewart: Yeah, that's it. So we've had these conversations with clients, right? So the feedback is, well, I'm not entirely sure what to do and I'm not sure what exactly will work. And I'm like, but we are confident what you're currently doing right now isn't working. Okay? So you can't really be any, any worse off. Like you are not getting a talent you need, you've got huge supply chain shortages. You've got to think about how you change what you're doing in order to continue to get the labor that you need. Otherwise, if you don't, you'll be kind of, I don't mean to be nasty, but you're going to be out of business. And that's a fact. So yeah, no, again, I agree with you.

Sarah Nicastro: Yeah. Okay. So let's talk a little bit about retention. Okay? So that's kind of the other side of this coin, right? So I would surmise that a lot of things that are important to new hires are also important to existing talent. However, there are kind of some different layers of complexity here. Like you mentioned the compensation conversation and people interviewing knowing that these organizations need talent and the competitive advantage that gives them. But then you have companies who are bringing in new talent at a rate that far exceeds what they're paying their existing talent, which creates a whole nother challenge of how do you handle that? Right? So that being said, when you look at retention, could you give any insight on what some of the biggest factors you see are that are impacting employee turnover?

Arran Stewart: Yeah. So it does depend a lot as well on seniority and salary level as well. Like you will see in more of the hourly work labor that if they're offered even a very small marginal difference on an hourly basis at another company, that they will just go. Okay? They'll just shift because they're trying to maximize, and understandably, they're trying to maximize their time. Companies need to have very, very clear strategies behind reviews, reward, providing recognition for success and achievement, not just like, well, that's your job. Get on with it. People look for recognition and they look for it frequently. I think the days of like, well, we'll do an annual review. It's like, they'll be gone well before.

Sarah Nicastro: Right.

Arran Stewart: Okay? Like, well, no people don't put up with rubbish for a year now. Okay? They don't. You need a quarterly review. You need to go in so that they immediately set these micro goals of, hey, great to have you. Fantastic. Great to have you in the business and you kind of start climbing them up this ladder. So you try and offer them the best opportunity, the best package, the best flexibility that you can in the beginning based on that level, based on them as a human, but you should constantly be able to add to that, add more, okay, small pay increase, slightly better benefits, and you can have some more flexibility in your work style, or you might be able to choose some other benefits or pay for a gym membership, you name it, right? All the things under the sun that can be done to make someone feel valued.

Arran Stewart: And then I think the one that is personally I believe is the biggest and I try it myself as one of the owners of job.com is culture. Culture keeps people. It does, right? Even if they're not getting paid as much as maybe they would at another company, but if they're at a place that they just love working at, they love the values it stands for, they love the way they're made to feel at their job, maybe they have that feeling where they're not constantly on a life S edge, but you know what, it's family first at this company and just little things that make you feel like, God, I really believe in the values of this business.

Arran Stewart: I maybe could earn a little bit more somewhere else, but I'd be miserable. And I think culture is a huge retainer. If you've got leadership in the company leading from the front, I think it really helps create a culture of loyalty, determination, et cetera. So I think of all of that list, I would probably choose culture as actually one of the biggest things outside of maybe compensation and benefits. So that's for sure.

Sarah Nicastro: Okay. So I want to come back to culture because I think there's a couple things to talk about there, but going back to a couple of the points you made. So I think one that's really important, particularly for our audience is these companies that I talk to everyday, they have field technicians in their existing workforce that have been there for 20 or 30 years, and they are the generation, the personality type, whatever it is that they just show up, they do their work, they work hard, they go home and they do it again and again and again. That is not the norm anymore. Okay?

Arran Stewart: No, it's not.

Sarah Nicastro: And so the expectation though of these companies that that's even remotely feasible, it has to get wiped out because to your point, I think one of the biggest focus areas for our audience needs to be the development of these career paths, right?

Sarah Nicastro: Because otherwise, you are constantly playing catch up with yourself because you might get to the point where you learn what works recruiting wise and you can offer a high enough wage or whatever it is to get people in the door, but if today's talent doesn't know where they can go, they'll go elsewhere, right?

Arran Stewart: Oh yeah.

Sarah Nicastro: And so I've seen companies that have done some really cool things even with visualization of that career path. Like literally helping talent visualize where they can go and what it takes to get to this point and this point. You know what I mean? And different choices or whatever that looks like for the business. Like the more you can start communicating that upfront, the better off you are keeping this pool that you're hopefully learning how to create. So I think that's really, really important.

Sarah Nicastro: The other thing is most of the roles we're talking about, they aren't roles that have historically been very recognized and rewarded, and that has to change as well. Everyone wants to feel that they're playing a part in something, right? And so if you are taking your top salespeople on this trip every year and then you treat your frontline service people like they can come and go, then that's what they'll do, right?

Arran Stewart: Yeah. Of course. Yeah.

Sarah Nicastro: So I think that's really important as well. Now, company culture, I feel like this is... I agree with you that it's very important. I also feel like it's very hard to bolt down what makes it good? Okay? Because-

Arran Stewart: Well, it's subjective, isn't it? It's a subjective thing for people.

Sarah Nicastro: And it's another area where companies know it's important. So they say that all the right things regardless of whether or not it's real.

Arran Stewart: They'll do it.

Sarah Nicastro: Right?

Arran Stewart: Yeah, yeah.

Sarah Nicastro: And so that's a challenge. Okay. Because you're going to be hard pressed to find a company that says company culture, we don't give a shit. They know they have to care. So how would you say, like what are some of the specifics that you think make for a strong company culture?

Arran Stewart: Well, so culture can help define the sort of talent that you're looking for, right? So it actually acts as a filter. So in some respects, people come there like, "Yeah, nice company. It's just not really me. This isn't who I am." So that actually does help as a filter, but I think what I'm seeing, and I don't know like... I think one of the best examples, I don't know if you ever see him on LinkedIn. And sometimes I agree with him, sometimes I definitely don't agree with him, but that's Dan Price. Do you ever see him on LinkedIn? He's very pro like how he drastically reduced his salaries of the CEO of his business to then provide a minimum salary level of $70,000 in the company. And out of that, he found that statistically, more people had children, had families, et cetera, et cetera, and then they provided like this better maternity and paternity leave, et cetera, et cetera.

Arran Stewart: He's built this kind of culture of almost a cooperative culture within his business even though it's not a cooperative business. It's a traditional one. I think that that can provide... It is very difficult because trying to get everybody to swim in the same lane on viewpoints, et cetera, can be very difficult, but I think you can pick almost holistic culture points that I think we'd all adhere to like people matter. You just said something there about taking the salespeople on these trips every year and then the frontline people, they're just like they're just the frontline people. It's like you've got to treat people the same the whole way through the chain of the business, all levels, from the most junior to the most senior because otherwise, oh, it doesn't matter. They're not as important.

Arran Stewart: Well, they're the foundation to the company. You know that, right? So if they fall away, it doesn't matter how senior you are. You haven't got the talent underneath you to do it so to speak in hierarchical senses. So yeah, I actually think that it's a great question, right? I actually struggle a little bit to answer that with any major conviction with like a that's a rock solid answer. This is the answer to your question. It's still a little bit woolly, which is kind of reflective of culture. It's very woolly.

Sarah Nicastro: Yeah.

Arran Stewart: It is.

Sarah Nicastro: Do you want to know why I think that is though? I think it's because it's so incredibly dependent upon leadership.

Arran Stewart: Yes.

Sarah Nicastro: Like I think in so many ways, the leader or the top leaders of a company really define the culture, not what HR will say on paper or whatever, but like what it actually feels like. On the flip side though, I think that going back to a point you made about reviews, I agree with you that people don't like ambiguity, okay? People actually thrive on information and knowing what's expected of them to achieve and being able to deliver that, right?

Sarah Nicastro: But I do also think that the idea of 360s and the idea of the employees being able to provide feedback to management is so, so important because I think one problem can be the top level leadership. It can just kill a culture. You can have put out some good PR saying whatever you want to say, but that will make it not a reality.

Sarah Nicastro: The other thing I've seen happen though is where you have senior leaders who have really good intentions and then middle management that kills it because they're between the leaders that want to have this impact and want that frontline worker to feel important and empowered, but if those middle managers aren't bought into that, aren't capable of that, aren't committed to that, it doesn't translate, right? And so that's where I think that... We did a podcast last year with a gentleman from BD, Eduardo Bonefont, and he talked about how they have implemented employee NPS within the company and a lot of the efforts they do around just really listening to their employees and making sure their employees understand that they care what they have to say. But the reality is in doing that, you have to be willing to get rid of leaders that aren't sitting with the type of culture you want to have.

Sarah Nicastro: And so, I don't know, it is a really tough thing to bolt down, but I agree it's also one of the most important, which just makes it very, very complex to tackle. I feel like culture just has more to do with the people than the policy. Do you know what I mean? Like you can check boxes or say what you want to say, but at the end of the day, I feel like it's your leaders from the top to the rest of the way down that are really either expressing that or not and making it somewhere people want to be or not. So, yeah.

Arran Stewart: No, no, no, again I think everything you're saying is correct. And culture should be from the leadership, right? People buy into leadership. It's part of our culture as human beings. We always look to... Hence why we have government sense why we have public figures and we have people that are famous because we look to them as for inspiration. We look to them because we value the way that they live their lives, the way they operate, the way they conduct themselves, the way they communicate, which also could be like a massive impact.

Arran Stewart: Yes, I know firsthand that middle management can pose a problem when it comes to cascading culture down all the way through the hierarchy because let's say not necessarily they don't always believe in it, but maybe that's just not their culture because you do. You hire people... I mean, it's so difficult to like, I know there's all these assessments and psychometric assessments, et cetera, et cetera, but when you hire people, every human is pretty much a one-off. You find people similar to you, but most of the time we're all completely unique one way or the other. And that means that makes it kind of difficult to find a completely uniformed team of people who will all adhere to a certain culture, live the culture, breathe the culture, install it throughout everyone within the business.

Arran Stewart: Also, one other thing that happens is external life factors. So I've seen this firsthand as well with other people in the past, like companies that have been a part of certain boards of if one of the personal life circumstances changes for one of the leadership and you have to like... Someone falls sick, someone has an issue at home, someone's going through a divorce, someone's going through something, it actually cascades through the business and can destroy the culture of a company. And that's unavoidable. It's unavoidable to kind of predict that there'll be no external tragedies or any issues that go on in this human's life. So there'll maintain a perfect culture forever more. It's as fragile as the human itself. So yeah, it's other things to sort of take into account.

Sarah Nicastro: Yeah. Yeah. It's all very, very interesting. All right. So that being said, what would you say your number one piece of retention advice is?

Arran Stewart: I truly believe that you should do regular reviews and always look to recognition and reward. You should build a recognition and reward culture. Celebrate small wins and define what those small wins are and make it publicly known that that human being achieved that throughout the company so they feel like they have been recognized. We all crave a level of status no matter what it is. A status amongst our peers, recognition amongst our peers. And when that is recognized by leadership and now I'm kind of ordained as a human being that has some value within this organization, look here, this is what they've said about me, I think that's so powerful to self-actualization and making me want to be part... I love this company. They make me feel great when I'm at my job because it's like how many clients did you manage to visit this week? Oh, we have targets, but I've got one-off target. Outstanding effort. Brilliant effort this week.

Arran Stewart: And I know companies try and do it with things like employee of the week, employee of the month. I think you can be a lot more creative than that. And I also think that rewarding people can be very simple in a sense like, hey, did you know that you're being taken out for lunch today by the boss? And you're like, "What? I'm just a such and such job title." "Boss is taking you out specifically for lunch today because you've reached your sick month marker, your nine month marker, your 18th month marker." You're like, "Oh my God, that's outstanding." And they'd love to hear about what your views are at the frontline so you can learn more about what they need to do to improve. That makes people feel great. It does.

Sarah Nicastro: Yeah. And it doesn't have to happen all the time.

Arran Stewart: No.

Sarah Nicastro: Like one of those interactions goes a long way.

Arran Stewart: You are bought in. You're like, "I've been heard. I've been heard." Because sometimes it's like you are not doing my job, you don't know really what it's like. You're staying some ivory tower somewhere. So that's the feeling sometimes, right? And understandably so. And it doesn't have to like these sorts of things, I'm pretty certain that leaders of companies eat lunch every day. Why not use your lunch to eat with one of your lower in the hierarchy, employees, reward them and learn more about what your business is doing from the top up? It will make them feel empowered and special. And that costs you nothing because you can have lunch anyway. So that's just, I think, the sort of things that you can do to kind of really install that.

Sarah Nicastro: Yeah. I think that's a good point. The other thing that came up in a conversation I was having the other day, you mentioned earlier on that the pandemic really had a lot of people reflecting. And so some people decided that for whatever reason, they wanted to do something different and to take a different path. And one of the things that came up in a focus group I was doing on some of these topics was some frustration around that, but also just I guess a need to just accept that some people are going to want to go in a different direction.

Sarah Nicastro: And so there was two points that came out of that. I think one is as the companies within our audience evolve and transform, there are more and more new and different roles that are needing to be filled. So how can you maybe allow people for change within your own organization? And that goes back to sort of that career path type thing. The more you can kind of structure and communicate what the different opportunities are, perhaps you could keep some of those folks if you instead of being resistant to them leaving the position they've been in, welcome them to try something different within the company.

Sarah Nicastro: But the other point that came up was if there really is someone that wants to move on, don't feel the need to keep that quiet or have a negative overtone. Celebrate them and keep that door open because perhaps they'll want to come back or refer someone else in or whatever. So don't be bitter about it. Be supportive. And that goes to your point of people are important and treat them like a human, not like a resource that you're upset that is leaving. So I thought those were two interesting points as well.

Arran Stewart: Yeah, for sure. You should always try to have everyone leave well from your company because that's when the most damage happens because one, if they don't leave well, they most certainly have friends and colleagues in that company who they will then instinctively kind of in some circumstances almost poison because they're just like, "Oh, I can't... This is the problems. This is why this place has gone to the dogs. It's so good." And that can have a real negative connotation.

Arran Stewart: The other part to it as well is that they tell other people and they also might leave reviews on platforms like new Glassdoors. Yeah, they had five amazing years. The last few years went to... Sorry, last few months weren't too good. I've left and now I'm going to make it seem like I never liked working there in the first place. And it's like, well, why were you there so long then? So that definitely should always try and have people leave well. That's for sure. Yeah.

Sarah Nicastro: Now, Arran, what do you think the next 12 to 18 months hold? What do you think people should be preparing for?

Arran Stewart: Well, that's a great question. I think that... Well, it is very subjective, very much someone's opinion, but I think we have some level of economic correction potentially coming. Everyone's talking about this. We also have a lot of uncertainty as well because I feel like we went out of the oven into the frying pan from pandemic to now worries about Russia and what they're doing to Ukraine, but also that kind of unrest between East versus West, which I think actually also really impacts people's thought processes, consumer confidence, which then relates down to confidence in work, confidence in consuming, confidence in spending money.

Arran Stewart: So I think the challenges are here to stay. I think they're here to stay for a good couple more years until we kind of get through a few of these issues until we can start to see more of a heyday toward tiring again, maybe a realignment of salaries expectations and the norm. And then suddenly it feels like we're all back to normal again. And yeah, I'm not having too much time, so much hassle hiring people again. It seems to have of kind of balanced itself out, but I still think the next 12 to 18 months are going to be a challenge for sure. A significant challenge. Yeah.

Sarah Nicastro: Yeah. Any other comments or closing thoughts for folks?

Arran Stewart: No, I think, one, it's been a fantastic podcast. So thank you for having me on. I think we've covered some really, really important topics here. And then honestly, yeah, I feel like I've kind of covered everything that we've sort of talked about that I could give with a level of confident knowledge about. So now I appreciate you and appreciate the time and the questions.

Sarah Nicastro: Yeah. Now is there information people should have on how to use job.com?

Arran Stewart: Yeah, sure. So the immediate reaction when you hear the URL is you think we're a job board. We're actually a staffing agency, a recruitment agency. We do the full end-to-end hiring process, but we describe ourselves as a data-driven digital staffing agency. Everything's used through tech process automation. What does that mean to you if you are hiring? It means we can get you talent quicker because we remove a lot of the low value tasks that recruiters have to do. And lots of our clients, they really take the benefit of all the things that we offer in a technology stack that augments humans, not displaces them.

Arran Stewart: We believe in people, but we believe people can be better with technology if they're paired together very well and they provide a better hiring experience for the people you're looking for because one of the most... From the moment someone applies for your job, they're also judging you as a company. And if they suddenly feel like they've been in some ridiculously long, poor communicated hiring cycle that's taken a long time, they kind of enter in bad and they kind of enter in already a little bit burnt on the journey. So you need to be very thoughtful about how is your hiring process? And who you use your hiring process reflects on your business and your brand. And we always try and tell our clients that, and that's maybe one of the risk. That's why you might want to use job.com.

Sarah Nicastro: Yeah. That's a very good point. Okay. Well, Arran, thank you so much for being here.

Arran Stewart: Thank you.

Sarah Nicastro: I enjoyed our conversation and I'm happy to have you.

Arran Stewart: Thank you so much. Real pleasure.

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

May 11, 2022 | 10 Mins Read

Live Tour London Highlights

May 11, 2022 | 10 Mins Read

Live Tour London Highlights

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Sarah reports in from her travels with a synopsis of the topics discussed at the second Future of Field Service Live Tour stop in Paris on May 5th.

Sarah Nicastro: Welcome to the Future of Field Service Podcast. I'm your host, Sarah Nicastro. I was thinking before I got on to record this that I often dive right into these episodes without thinking about the fact that while some of you join on an ongoing basis, we do have new folks that join us each time. So let me just take a quick pause and kind of explain what I'm going to talk about today.

Sarah Nicastro: So this episode is going to be a bit of a recap of the Future of Field Service Live Tour London, which was yesterday. Well, I'm recording this Friday, this will air next week, so it was last week for you all. And so just to explain that a bit, so Future of Field Service, this podcast that you're listening to, the platform that you're engaged with has been a content resource, a thought leadership resource for the service community. I would say service, not just field service. We talk about a lot more than field service, for the last three plus years. So we write at least one original article every week and produce one podcast episode each week that air on Wednesdays.

Sarah Nicastro: So this year for the very first time we've been able to take what has been a content platform with Future Field Service, and turn it into really the basis for community. By taking the show on the road, if you will, and visiting five cities across the globe. So we had our first event in Paris a few weeks ago. London just happened on May 5th, and then we have three more events coming up. We're visiting Frankfurt May 19th, Stockholm May 24th and then Austin, Texas on June 14th.

Sarah Nicastro: It's been really, really fulfilling for me to see the way that this platform enables people to come together, and connect and to feel a sense of camaraderie and to share insights, and perspectives, learn something new. It's been very, very fulfilling for me to be able to see that happen. It's something that I had a vision for when Future Field Services first began, but with COVID and all sorts of different things, it just hasn't been realistic to happen until now. So I'm very happy to see it coming to life, and if you're listening to this and you haven't taken a look at the live tour agendas and schedules, please do so at the website futureoffieldserviceref.ifs.com, and join us if you can. They've been great.

Sarah Nicastro: So a few weeks ago, I did a recap of the Paris event and today I'm going to do a short recap of what we covered in London yesterday. Each city has speakers unique to that area. So the content at every single location will be different and just as we do at Future of Field Service, as our norm, it is centered around what the service leaders in that area want to discuss. What's important to them? What are they learning? What are they working towards? What are their wins? What are their challenges? So yesterday we had a great day in London. We were at the Arboretum, which was a very cool venue near Charing Cross, I believe. So we had a great lineup. So I'm just going to walk you through a couple of key themes or takeaways, and hopefully we'll have an opportunity to do more of a deep dive on some of the content as we go along.

Sarah Nicastro: So the first session yesterday was with Tim Baines, who is the head of the Advanced Services Group at Aston Business School. Tim is someone who I met for the first time in person in London, but have talked to many times and appreciate his passion for the topic of servitization, as well as the wonderful insights that he collects and shares with the world. So Tim talked about servitization, and how servitization is something that is not only applicable to those in manufacturing. But how it is really a mindset, a journey of organizations that are looking to provide an outcome versus a product or a service. So ultimately shifting our thinking around what value we can provide on an ongoing, and often as a service basis that our customers will be willing to pay for. He also talked about the four phases that organizations go through as they are on the servitization journey. So the Advanced Services Group works with a lot of companies that are in this process, and they take a lot of those learnings and findings and sort of create tools and resources that organizations can use. Not necessarily to use as a blueprint, because I don't think such a thing exists, but to sort of get a sense of what to expect and what organizations typically go through. So that was great.

Sarah Nicastro: And then immediately following Tim's session, we actually welcomed James Galloway of Baxi Heating in the UK, as well as Iain McKechnie, who is also from the Advanced Services group. So Baxi is one of the organizations that the advanced services group has worked with directly on their servitization journey. And Baxi is in the process of introducing heat as a service here in the UK. And we had an interesting conversation about where they're at on that journey. I believe James said that he would place them in sort of between the second and third phases that Tim covered of what that journey often looks like. And so they are in the thick of it, if you will, and definitely learning a lot, experiencing a lot, testing, trialing and engaging with their customers. So we talked a lot about some of the shifting and thinking that's necessary. Some of the change management that's necessary, and really just the way that it changes the entire value proposition for the customer, which requires a lot of adjustment within the organization in thinking and process, et cetera.

Sarah Nicastro: So it was really interesting. One of the reasons that Baxi is on this journey is because a lot of the regulatory changes that are happening here related to becoming more carbon friendly and sustainable, will make Baxi's traditional business at some point impossible. So they need to shift how they're providing heat away from gas over time. And so that is part of the catalyst for their evolution. And Iain spoke a bit about how sustainability is impacting a lot of companies interest in servitizing, and some of the ways that servitization creates more sustainability sort of naturally, if you will. Some of the things about it that lend themselves well to becoming more sustainable, both from a customer perspective and the organization that is providing the service. So that was really interesting.

Sarah Nicastro: We then welcomed Mike Gosling from Cubic Transportation who spoke about their journey to outcomes based service. So Cubic Transportation provides manufactures, services, and provides all of the equipment that you would use to buy tickets and get on and off of public transport here in London, as well as other cities across the world. So Transport for London is Cubic's a customer here in London who I guess most notably owns and runs all of the Tube, so all of the public transport here.

Sarah Nicastro: And what happened with Cubic is interesting. So in the first few conversations, we were talking about some of the drivers of the journey to outcomes. And for Cubic, that driver was essentially Transport for London coming to them and demanding that Cubic shift its model from break/fix to guaranteeing uptime. Luckily Cubic had already been on a digital transformation journey that made that demand possible. And so Mike spoke about sort of what that shift required. What's interesting is that I would say generally it's two major things. One of those is that they rely heavily on automation. He's said before that there's really no way to scale up manpower to be able to deliver outcomes. So they are relying on IFS planning and scheduling optimization, which is an AI based dynamic scheduling tool, that they have had great success with in automating a lot of the outcomes process to make it possible.

Sarah Nicastro: And they've actually grown since moving to outcomes without having to hire additional technicians. What's interesting is that while technology has been a really big part of it, the other big part is on the human side and the change management side. And Mike spoke a lot about the things that they've done, that he's done, and that they have a business have done to overcome legacy thinking, and to really get everyone on board with what it takes to be successful in the journey.

Sarah Nicastro: We also had Neil Taplin who is with Genius Sports, join us. He had to join us remotely, he wasn't able to be with us in person. But he did talk quite a bit about... So Neil has previously been in field service and operations in companies like Virgin Media and Arteva. And about a year ago, he transitioned into Genius Sports, which is a bit of a different industry than he has typically been in and a different flavor of field service. So he talked a lot about the work that Genius Sports does documenting and providing data to organizations on all types of different sporting events, all across the world. And what that looks like in terms of capacity planning and scheduling and all sorts of things. So he talked about some of the parallels in what it takes to achieve field service excellence, both in a traditional environment, as well as in more of a unique situation like the sports world. Certainly again, the tech human balance was a theme and the power of data and all of the opportunities that exist around using data both internally, externally as a value proposition.

Sarah Nicastro: We then ended the day with two panels. The first was with Robin Butler of Waterlogic, and Karl Lowe from Edwards Vacuum. And that was a discussion around really setting a strong foundation for service transformation. They both have experience in multiple organizations, leading transformation journeys in service, and they themselves have some different and unique perspectives on what that looks like in different businesses. So I asked them at the end what their biggest takeaway would be, what their biggest piece of advice would be. Robin shared a story about how, at one of his previous organizations, he took a very hands off approach to the technology selection. He felt that he could rely on IT to handle that part. And so he really delegated that and later regretted it. So it doesn't mean that you need to micromanage that, but certainly that partnership between the business and IT is very important. And Karl who at one point early in his career was a technician himself, talked about the importance of always remembering, to think of and listen to the frontline technician perspective, which is super important.

Sarah Nicastro: The last panel we had was with Newland McKelvey of Fujitsu and Nicolas Teyssot of Fives Cryomec. And during that conversation, we talked about the skills gap, which is a huge conversation. And so we talked about the need to not focus on hiring on experience, how that's virtually impossible to do. How you need to look for more creative ways to hire, how you need to take the responsibility to train people up. Nicolas spoke about their focus on hiring based on soft skills, and providing some of the more mechanical and technical skills. If they find the people, they feel like are a good fit from a soft skills perspective. We talked a lot about different ways, both for them, and then with participants in the audience of how people are focused on increasing diversity in their field force. We talked about the importance of defining career paths and giving new hires a vision from the very beginning of joining the organization on where they can go with the company.

Sarah Nicastro: We talked about how important it is for talent today to feel that they're joining an organization that has a purpose, where they're contributing something bigger than just the job itself. And I think Newland made the point of, we want to be able to give people a career, not just a job. So really shifting our thinking around what we want from our field technicians, what the role looks like, how we find those folks, what traits are most important, and focusing also a lot more on the employee experience. So that once they are a part of the organization, we can continue to have them be there. We also talked a bit about the role technology plays in automating certain menial or manual tasks, things like augmented reality and how that can help get people up to speed and increase time to value of new hires. We talked about how remote service can take some of the burden off of the skills gap by eliminating unnecessary onsite visits, so a whole lot on that topic.

Sarah Nicastro: We closed the day with some cocktails and networking. We got a lot of good feedback on how happy people were to be in person, to be having these conversations and to have the opportunity to get together. So it was a great day and I'm super thankful to all of the speakers that joined and made it possible as well as the team that has been helping organize these events, which has just gone seamlessly. Which takes so much stress off of my shoulders, so big thank you to them as well. And like I said earlier, we would love to see you at one of the three events that are left. So Frankfurt May 19th, Stockholm May 24th, Austin, Texas on June 14th. Take a look at the website, if you would like some more information as always, that is futureoffieldserviceref.ifs.com. You can also find us on LinkedIn and 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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May 4, 2022 | 18 Mins Read

Reimagining Industry Growth Amidst Supply Chain Uncertainty

May 4, 2022 | 18 Mins Read

Reimagining Industry Growth Amidst Supply Chain Uncertainty

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Sarah welcomes Dan Varroney, President and CEO of strategic consulting firm Potomac Core and a sought-after expert on economic performance with appearances on CNBC, Fox, Dow Jones, MarketWatch, Bloomberg, Forbes, and the BBC. He’s recently authored new book Reimagining Industry Growth: Strategic Partnerships in an Era of Uncertainty and talks with Sarah about the need to evolve how we think about and approach partnerships in business to meet modern needs.

Sarah Nicastro: Welcome to The Future of Field Service podcast. I'm your host, Sarah Nicastro. Today we're going to have a conversation about reimagining industry growth amidst supply chain uncertainty. I'm excited to welcome to the podcast today Dan Varroney, who is the president and CEO of a strategic consulting firm called Potomac Core and an expert on economic performance. Dan has been on CNBC, Fox, Dow Jones, Bloomberg, Forbes, and many others. He has recently authored a new book titled Reimagining Industry Growth - Strategic Partnership Strategies in an Era of Uncertainty. Dan, welcome to The Future of Field Service podcast.

Dan Varroney: Well, Sarah, thank you very much. It's a pleasure and an honor to be here with you today.

Sarah Nicastro: Thank you. All right. Before we get into the discussion at hand, tell our listeners a little bit more about yourself and your journey.

Dan Varroney: Sure, absolutely. Well, I've had a remarkable career starting out in the trade association universe for almost three decades and 23 years of that career was with the national association of manufacturers. It was an absolute joy to work with small-medium and large companies on issues that help shape a favorable economic environment for all those companies and all those manufacturers. I left about oh, 16 or 17 years ago, and in my final role, I was a senior manager on the senior management team. I ran the grassroots advocacy. The membership component and I helped the then CEO recruit a senior-level executives to the board of directors. Following that, I served as the first-time president and CEO of an association known as association for corporate growth. Following that, I went to work for Newt Gingrich, where I ran his American solutions, policy, and advocacy organization, also very fascinating work. 10 years ago, actually, in May, I decided to finally give into my entrepreneurial approach and to say, I'm going to open up a company.

Dan Varroney: What I wanted to do was to open a company that was going to be a strategic value. That would have a value imperative that represented the marketplace. After the great recession, I saw a number of significant changes happen. There were fewer people in the C-Suite decisions about whether or not to engage in outside activity would be based on the direct and immediate return to the bottom line. Is it helping us save money? Is it helping us make money? Is it shaping more favorable business environment and created a strong research component? That research component helped industry trade associations first realize and recognize the industries awake at night challenges. The long-term business outcomes that they wanted to achieve and understand how aligned or how connected they were with those challenges. From that, be able to build a strategic industry plan that leveraged the trade association as a strategic business unit. A strategic business unit that over the long-term could make the industry more durable and better position for growth in the marketplace.

Sarah Nicastro: Great. All right. One of the things I wanted to talk about is in the book, you talk about the fact that volatility isn't a new concept, but the immediacy of our awareness of it is. Let's talk a little bit about that and why it's so relevant.

Dan Varroney: That is an absolutely perfect way to start this conversation. When I started my association career in the 80s that like many of us, it was a talk radio or it was the newspaper. Cable news was just coming into being. Now there's Twitter and all of the other social media platforms. The minute something happens in one part of the world, we know about it immediately, and it has impact immediately. What that's done is it's created what I call an Era of Chronic Uncertainty. We never know when the next shoe is going to drop, but we're confident the next shoe is going to drop. For example, if you and I were to say, did either of us envision five years ago that there would be a military conflict in Ukraine, a global pandemic, runaway inflation, and on and on it goes. The answer here is we wouldn't have imagined it. Here's one thing we did know that when the global pandemic hit, we knew about it immediately. We know about everything immediately, and what that's done, Sarah, is that it's changed the way every business executive thinks.

Dan Varroney: We're all wired differently now, and we're wired differently because we know that when change happens, we know about it more quickly, and we have to respond far more quickly.

Sarah Nicastro: Do you perceive that awareness as a good thing or a bad thing?

Dan Varroney: I'm going to answer it this way. It is what it is. It is what it is. I think what it's done is, it has forced an evolution of leadership and communication skills. Good communication skills, soft communication skills are more important than ever. We have to be able to connect and communicate with one another. We have to be able to leverage those soft communication skills to build alliances and partnerships that will help us get through whatever challenges comes next. We're in a new era, and that era is a call to action for leaders who have soft skills. Who have strategic skills that can see five feet in front of them and 50,000 feet around the corner?

Sarah Nicastro: All right. Another thing that you talk about in the book is that those who do best are those who view change as an opportunity. That's something that I would say is a persistent theme in this podcast and the content we create. What I want to ask you is, do you have a sense of what shapes that perspective? What is key to the mindset that change is an opportunity, not something to be in opposition to?

Dan Varroney: Also, a great question. What's interesting, during the pandemic, I'd say the first six to 12 months, I had a number of conversations with executives who said, I'm looking forward to things going back to the way they were. That struck me as disconnected because this is the definition of a Black Swan event. This was intended to change. The way we look and the way we think and act and react about everything. Nothing would ever revert to what it was. I mean, look at it right now. I mean, look at how things have changed. There are 4 million quits in the job market in the month of February. There are over 11 million job openings. Some of the things that are driving that is it's forced people to reevaluate their lives. Some people said the way we're going to respond to what's happening in the world to chronic uncertainty is we're going to shift the way we see the world.

Dan Varroney: Others are embracing the opportunity and saying, this is the time to really put our foot on the accelerator and go all the way to the floor and say, we are really going to leverage this opportunity and that change. What I learned as I was writing the book is that those industries that saw it as an opportunity that built upon their partnerships seemed to fare better, and they had history of doing that. When I looked back so recent examples, I have the ability, as many do, to trace back to things like 9/11 or to the great recession. How to what extent did people say this was a horrible situation, but we rallied and saw this as an opportunity. Those who do, thrive. Those who don't. Don't do very well at all.

Sarah Nicastro: Yeah. It's a really interesting question. I mean, you can look at it by which industries embraced the opportunity best. You can look at it. Which companies, which individual leaders, but it's certainly inevitable. Resistance is futile. All right. The book is just discussing the need for and value of partnerships. One of the things you say that I really like is communities fair, better than individuals. Talk a little bit about what you mean by the community approach in this sense and why it's helpful particular early at the point we are today?

Dan Varroney: Because we're in an Era of Chronic Uncertainty, you can never have enough partnerships. Those partnerships give you a sense of perspective. They extend your reach. They give you a level of durability you wouldn't have had otherwise. What you find interesting, and I'm going to talk about the book in just a moment, but to give you a sense of it. What you might find interesting is that at the start of the pandemic, I started a brand new CEO group called the strategic guidance lab. These are 55 trade association CEOs from every possible industry, and we utilized this platform, meaning Zoom and other social platforms to stay connected to one another or telephone or whatever it was, but we found a way to stay connected. We built a community that said that we would rely upon each other. We would trust each other, and we would utilize it to learn from one another and share knowledge. It worked out exceedingly well.

Dan Varroney: Actually, it worked out, especially well for me because, at the start of the pandemic, I began to write my book, and I was able to leverage the community that I helped create to do that. What I found interesting in the five industries that I wrote about in my book. By the way, I looked at a number of different industries is first and foremost, these were industry leaders that said, we understand the value of company-to-company, strategic partnerships and now what we want to do is try a different iteration of that between an industry and a trade association. They did that because they learned from their own experiences in company-to-company partnerships that you can far leverage each other's strength and minimize and mitigate your own weaknesses. You can get to markets in places you're not currently in. You can leverage strength, talent, technology, and resources that you don't have. An example that would be in a strategic partnership. Again, I'll get to the case studies.

Dan Varroney: An example of what I mean is, look at Starbucks and Barnes & Noble. Starbucks is an experienced company. It's not a coffee company. It's based on building communities. Its motto is outside in, focused on the marketplace and creating a third place between work and home. Barnes & Noble is a book store. It's a bricks-and-mortar bookstore. What this partnership did is, it created an opportunity to bring the Starbucks experience into the Barnes & Noble bookstore. When we walk into the bookstore, it's the smell of fresh coffee brewing. It's baked goods, and it is a third place, but between work and home, it's very comforting. We can meet friends or family or neighbors there and have coffee, or we can go and get a book and sit and read a book or a newspaper or a magazine. What that's done is it's created a boon for Starbucks. They're able to sell even more coffee and further extend their brand.

Dan Varroney: Barnes & Noble has been able to extend its brand into Starbucks, and some more books attract more people into the bookstores. It ended up being a win-win. What I'll add to that point is this, that Barnes & Noble is one of the few remaining brick-and-mortar bookstores, so that's an example of a strategic partnership. When you look at an industry today and the challenges that they face not just domestically but globally, how can they build a strategic partnership with the trade association and position it as a strategic business unit?

Dan Varroney: What I detected in each of these case studies, I interviewed five or six business executives from these industries. Did a good bit of research on these industries is that they needed a strategic partnership to help shape the external environment on pre-competitive challenges and utilize that. Leverage it as an opportunity to also promote the industry, position the industry in respective marketplaces and make industries more durable for the long term. All five are powerful examples, but the deeper I get into it so for example, the recreational boating industry, because of its massive ecosystem so these communities are ecosystems. They're every, every, every entity in its value chain. It had a partnership through the National Marine Manufacturers with the recreational boating and fishing foundation.

Dan Varroney: At the shutdown, the industry literally went to their strategic partner, the National Marine Manufacturers Association, and said, "Hey, we need your help. We're all stuck inside. We can't go anywhere or do anything, but we know now from the Centers for Disease Control that we can go outside. We can enjoy the outdoors." The National Marine Manufacturers Association and the recreational boating and fishing foundation did a targeted digital promotion campaign. Interestingly enough, what the result was is that there were double-digit year-over-year sales growth because people just flock to the outside. They bought boats, and they engaged in outdoor recreation and boating. What was fascinating is, and I'll go back to an earlier data point. Leaders in the industry said they never expected to see that sales or top-line revenue growth after the end of the great recession. Because of this strategic partnership, they far exceeded that.

Sarah Nicastro: Yeah.

Dan Varroney: That's absolutely critical. Absolutely critical. Similar thing in the frozen food industry. Back in the day, it was French fries, burgers, and pizza. Now you can get Thai food, Mexican food, Chinese, you name it, frozen Italian food. What their strategic partner organization did, the American Frozen Food Institute is they partnered with another industry organization called the Food Marketing Institute. They generated data and research and it's called the Power of Frozen campaign. They literally identify among consumers through consumer companies called IRI to identify what types of frozen foods that consumers are looking to buy. They share that data with the retail stores. That was especially meaningful at the start of the pandemic because everybody had to stay home. As we all know, we all had to work, so if you're a single parent, a working couple, you needed to provide three meals a day at home, and frozen food was a healthy, healthy, tasteful, alternative double-digit sales as a result of that effort.

Dan Varroney: Strategic partnerships absolutely matter. Trade associations are evolving into strategic business units for the industry. They do have the ability to shape the external environment on environmental issues, tax issues, trade issues, and they're making a difference.

Sarah Nicastro: Can you share another example or two of the case studies that you reference in the book?

Dan Varroney: Sure, absolutely happy to do that. Who doesn't like baked goods? Who doesn't like baked goods?

Sarah Nicastro: Not me. I mean, meaning I do like them. I try not to eat too many of them, but I definitely like them.

Dan Varroney: Understand. Chapter four is the chapter on the baking industry. As we think about the baking industry, the baking industry has always had a number of challenges. I want to share their challenges and their strategic partnership from the opportunity of the pandemic. At shutdown, the Centers for Disease Control and the Food and Drug Administration said, lockdown, everybody, go home and stay there. This is a dangerous disease. Except they forgot something. They forgot that we still needed to eat. The American Bakers Association through its own ecosystem comprised of organizations of the Food and Beverage Industry Alliance. This is absolutely fascinating, by the way. This is an ecosystem that starts from the farm and goes all the way to the fork. Leaders of the Food and Beverage Industry Alliance convened on a Zoom platform, and they said so they forgot we still need to eat.

Dan Varroney: They leveraged all of their contacts. They got the CDC and the FDA connected on media platforms similar to this, and they said, so we still need to eat. We'd like to work with you to develop worker safety protocols all the way and up to the logistic of delivering the food into the retail stores. They were successful, and as a result, we were all able to eat during those months of quarantine and shutdown. It's a very, very powerful story but a strong reminder of the importance of strategic partnerships and why they're important in an Era of Chronic Uncertainty.

Dan Varroney: Just another example from that. There's a new CEO of a multi-billion dollar company who had just gone on the board of the American Bakers Association and not a believer, so it shut down. He called up the CEO of the American Bakers Association, whose name is Rob Mackey, and said, "Hey," at nine o'clock at night and said, "The state of Michigan is going to shut down my company tomorrow, and I need your help." What would happen was the American Bakers Association and the food and beverage industry Alliance was able to get the industry designated as critical infrastructure. That was part of what needed to be done to keep the industry open and keep the American people eating. They got them to complete the paperwork, and they were able to stay open in Michigan. Same thing happened in the State of Ohio, and low and behold. They were able to stay open in the State of Ohio.

Sarah Nicastro: When we think about the power of these partnerships, as it relates specifically to supply chain uncertainty, how can it help safeguard organizations in that way?

Dan Varroney: I think all of your questions have been spot on, but you nailed that one, and I want to share why. There's this notion that the cracks in the supply chain just happened, and what I've learned through some research and getting ready to do additional research and write a white paper. Here's what I'm learning as I go through this. There were cracks in the supply chain before the pandemic. Here's what I really learned is that we were in a just-in-time manufacturing mode when we really need to be in a just-in-case mode. They were no fail safes. There are no alternatives. No fail-safes and no alternatives. Then the other thing is that when I look at how solutions are being developed, they're being developed on a company by company basis, and with a challenge of this magnitude, it needs to be industry-based solutions.

Dan Varroney: The entire higher supply chain must and should come to the table. I'm defining this part of the conversation as a serious call to action. They must come to the table through their industry trade association and focus on the pre-competitive solutions that will address the cracks in the supply chain that can develop. Fail-safe alternatives that can make sure that five or 10 years from now, we're not back in the same place. I swim in a swimming pool, a couple of miles from my office, and one of the pools, the heater broke, and they need panel circuits to fix it, circuit boards. Because of the supply chain issues, it could be weeks. When you think about that in this day and age, it sounds ridiculous because it is, because it is. When we talk about reassuring or near reassuring, there is enormous leverage by bringing the supply chains together. It can be created through the trade association. The trade association can be the leader in the convener.

Dan Varroney: It can be the neutral integrator to bring all parties together and focus on pre-competitive solutions. Whether they be legislative, whether they be regulatory, whether they be executive action-focused, whether they be state-focused, community-focused, whatever they are, but the time is now to get this going. I absolutely respect and appreciate the administration coming up with additional funding to support poor expansion and so on. What we're looking for is collaboration that leads to innovation, and the innovation can be achieved by bringing these communities together, bring these communities together. A very visible manifestation of that are the mRNA vaccines. Look at the collaboration, the private-public partnership that came together, and look at what was achieved as a result of that. We are looking for massive collaboration through a neutral convener, and that would be an industry trade association where all elements of the supply chain come together and say, what innovation can we develop and what pre-competitive solutions do we need to develop and implement.

Sarah Nicastro: Explain what you mean by pre-competitive solutions.

Dan Varroney: Sure. We live in a country that has laws, and these laws are absolutely important and they're all about remaining competitive and no one can take advantage of anyone else, and they're about antitrust. At trade associations, they're attorneys in every room at every meeting. They read antitrust statement that says we can't discuss pricing. We can't discuss competition, and nobody talks about their customers or anything in those conversations. Pre-competitive is as follows. Think of things around environmental regulations, things around workforce or workplace regulations. An example of a pre-competitive issue would be, so we know there's a trucker challenge. There's an hours of service regulation that limits the number of hours that a truck driver can drive their vehicle. Doing things like waving that is a pre-competitive solution. Coming up with ways to mitigate environmental challenges or temporarily postpone regulations as we build bigger solutions would be pre-competitive solutions. Tax incentives to encourage additional investment in innovation, pre-competitive solution.

Sarah Nicastro: Okay.

Dan Varroney: Tax incentives to allow expensing and write-off of purchases of new equipment for those industries that want to onshore is a pre-competitive solution.

Sarah Nicastro: All right. We're talking about the value of these strategic partnerships, but there has to be some that don't go as planned. What are the characteristics that a company should be considering if it wants to look at strategically partnering to achieve some of the benefits that you've talked about?

Dan Varroney: In the book, I write about the characteristics and traits of successful strategic partnerships. Clearly, we don't break any new ground, but you want to enter into a partnership where you share the same values. There's a level of business acumen on both sides. You both understand what you need to do. You know that you need to act in an informed way and not at the drop of a hat that you're collaborative. In addition to that, you're setting up terms and conditions that you've got governance that says this is the way we're going to conduct the strategic partnership. These are the metrics and key performance indicators that we're going to utilize to understand how effective we are or we aren't.

Dan Varroney: Partnerships do and will fail when people don't come to terms on the front end. How are we going to work together? How are we going to communicate? How are we going to judge our effectiveness and our success? Your chances of being successful are far greater if you define those terms upfront and you understand that you really see things in a similar way, not exactly the same way. Because you want to bring skillsets to the table that you don't have, and they have and vice versa, but defining the terms and conditions of what it's going to be and how it's going to work.

Sarah Nicastro: That makes sense. All right. Dan, thinking about what we've talked about so far and the call to action, as you said, that you want to lead people with. What other thoughts or advice would you want to share?

Dan Varroney: I understand, I absolutely understand, and I'm very sympathetic to the fear and all the challenges, but this is the best possible time to see this is an opportunity to transform and evolve and take full advantage of what's next. Customers in every industry, users and end-users, and the end-users or the end-user are seeing the world very differently. Coming together through these strategic partnerships to understand what that is and to help the end-user and the end-user end user be successful will help position every industry to be more durable and more successful over the long term. We need to be thinking about when the next shoe is going to drop and being ready for it. These strategic partnerships will help achieve that, but now is the time to transform. Now is the time to grab the baton of the future and go for it.

Sarah Nicastro: Good. Let listeners know where they can find the book.

Dan Varroney: Absolutely. You can find it at potomacore.com. There are links to it. You can order it on amazon.com. It's Reimagining Industry Growth. You can also find it at Barnes & Noble online and in the store. You can find it at Books-A-Million, and it's available immediately.

Sarah Nicastro: All right. Good. Everyone check out the book, and Dan, thank you so much for coming on and sharing. It was great talking with you. I appreciate your insights.

Dan Varroney: Likewise, this was a great conversation. Thank you for the opportunity.

Sarah Nicastro: Absolutely. You can find more by visiting us at futureoffieldserviceref.ifs.com. You can also find us on LinkedIn as well as Twitter @TheFutureOfFS. 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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April 29, 2022 | 26 Mins Read

What is the Business Potential of Transformation?

April 29, 2022 | 26 Mins Read

What is the Business Potential of Transformation?

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You may remember Joe Pine from podcast #19. He’s the co-author of The Experience Economy, Infinite Possibility, and Authenticity and author of Mass Customization as well as co-founder of Strategic Horizons LLP. On today’s episode, Sarah welcomes Joe back to discuss a column he co-wrote recently for HBR titled The “New You” Business which dives into the business opportunity of transformation.

Sarah Nicastro: Welcome to the Future of Field Service Podcast. I'm your host, Sarah Nicastro. Today we're going to be talking a bit about the business of transformation. I'm really excited for this conversation and excited to welcome back to the podcast, Joe Pine, who is the author of the book, The Experience Economy, and co-founder of Strategic Horizons. Joe, welcome back to the Future of Field Service Podcast.

Joe Pine: Thanks, Sarah. It's a pleasure to be here again.

Sarah Nicastro: Yeah, I'm excited to have you back. So you were on... A while back, I forgot to look at what number the episode was, but I'll make sure I put it in the show notes (Episode 19). But you were on to discuss your book, The Experience Economy, and this is something that we reference often as to countless others, talking about the evolution from commodities, to good, to services, ultimately to experiences. And great book, great conversation we had on the podcast the first time, certainly worth a listen. I don't think that we're saying in today's conversation that the experiences in any way irrelevant, rather looking at what's the next evolution of that continual.

Sarah Nicastro: And so you recently, co-authored an article for Harvard Business Review, discussing the fifth pillar of this continuum, which is around transformation. And I'm really excited to talk about this today, Joe, because we talk a lot on this podcast about transformation, as it relates to our audience, transforming their business to better serve their customers. Today we're talking about, as I stated earlier, the business of transformation. So moving beyond offering experiences to helping your customers transform. So can you just kind of kick us off by giving a bit of context and summary around, how did this fifth pillar come to be and what opportunity does it present to folks that would be listening?

Joe Pine: Yeah. Transformations have always been part of the formula, part of the progression of economic diet, from the original discovery of it back in the early 1990s. I knew that there was something beyond experiences, by asking the question, what's next? Always thinking about what's next. And what I realized is that if you design a set of experiences that are so appropriate for particular person or company that you're working with, exactly the right set of experiences, then you can't help but turn to what we often call a life transforming experience.

Joe Pine: There was an experience that changes us in some way. And I realized that was a fifth and final economic offering beyond commodities, goods, services, and experiences. We're using experiences as a raw material to guide people to change, to help them achieve their aspirations, in other words. And we all know we're all products of our experiences. We only ever change through the experiences that we have, and that applies to individuals as well as to corporate customers that you're working with and thinking about how do you... The core is, how do you help them achieve their aspirations? What do they aspire to become and how do you help them achieve that? That's your transformations.

Sarah Nicastro: So let's talk through a couple of examples, just to make sure this is clear for folks that are listening. So we're not talking about quality or convenience, or even the experience we're talking about helping customers realize the benefit and how that helps them transform. So I'm wondering, I know in the Harvard Business Review article, which everyone should go and read and we can make sure to link to that too. You walk through some different examples and there's examples of how this plays out in a consumer oriented business, as well as a business to business situation. Can you just give a couple of examples to help illustrate this for folks that are listening?

Joe Pine: Sure. Well, the key example we start with in the Harvard Business Review article, or which is called the "New You" business, is profiled by Sanford. And it's sort of funny, right after it came out, Sanford sells the company. So it's no longer profiled by Sanford, it's just Profile. But what Profile does is they focus on weight loss, right?

Sarah Nicastro: Mm-hmm (affirmative).

Joe Pine: So that's a personal transformation that many of us want to have at some point of our lives. Many of us want to have our entire adult lives, it seems like. And they recognize that you really have to have a commitment to be able to make this happen. That's one of the key things with the transformation, is the customer has to be committed. Otherwise, you're never going to make something like that happen. It's too hard.

Joe Pine: And obviously, people can always buy self-help books. They can buy diet books and they can do other things and try and make it happen themselves. But it's just very difficult and so many of us need help in that regard. So Profile's great system that, yes, it's based off of meal plans like WW, the former Weight Watchers and other companies have, they will sell you these meal plans, but the secret sauce is in the commitment to the program and the health coaching that they do as a result of it. So you go into one of their places, of course, and with the pandemic, you now have virtual consultations, but you go into one of their places, have this virtual consultation. And the first thing they do is, they do is what I call diagnosis. They want to know what are your aspirations? How much weight do you want to lose? What are the obstacles you run into being able to do and so forth?

Joe Pine: And then they explain the plan to them. And the commitment is that you have to have a once a week session with your health coach. And that once a week session is where you really go through any of those obstacles. You get the coaching requires, well, I fell down in this area. Okay, well, this is how we can help you and so forth. And at the end of it, they don't let you off this commitment or off of this coaching session, without a commitment, not to losing weight, not to a particular amount, but to the next session.

Joe Pine: So just keeping you going that session at a time. And that staying through it is what really gives the program, staying power. And they've got research that the commitment and combined with the health coaching allows people to use their system to lose more weight than with others. So it's a great example. And it's thinking more generically, you all of healthcare is about transformation, whether it's going for sick to well. Anyone that's a coach, whether it's a golf coach or a tennis coach, or a life coach, or an executive coach, or whatever it is, is in the transformation business as well. And you have coaching that applies to B2B as well in business and to employees within businesses. For example, BetterUp is a coaching platform that works with companies, particularly when they're in some sort of digital transformation, when they're going through the transformations that you're talking about internally to better serve their customers.

Joe Pine: And they provide coaching to their executives, to their managers and professionals and so forth. They have a system that allows you to input things that you're looking for, what your particular issues are. And then it has an algorithm that's able to find, well, here's three coaches that we think are best suited for you, but you of course get the final determination of which coach you want to have. And then you go through those coaching sessions. And again, like with Profile, they do a lot of teaching of these coaches. They're not just people that they find on fiber or somewhere, they help give them what they need to be able to handle the situation. And interestingly, BetterUp is now going to the individual market to not sell to corporate down below. Now anybody can go to them and be able to get an executive coach that's customized to their needs.

Sarah Nicastro: Yeah. It's really interesting. I'm thinking about an example of a conversation we've had on this podcast. So there's a gentleman named Sasha Ilyukhin, who works at Tetra Pak. And he was a guest on the podcast going back ways as well. But Tetra Pak, obviously their core business is packaging, equipment packaging, materials, and that sort of stuff. But they saw the opportunity because of the success they had in transforming their own manufacturing operations to help their customers do the same. Right?

Joe Pine: Yeah.

Sarah Nicastro: And so it's something where they are able to offer that same transformation. So sort of a step by step process, collaborating with customers to help their customers see the same success they've had in optimizing their manufacturing facilities. And one of the things that I think we can talk a bit about is, in that model, they accept risk.

Sarah Nicastro: It's something where, if we help you achieve this outcome, then that's how we make money. And if we don't, we don't. And so it leads me to one of the important points here, which is that embracing transformation as a business model means that you have to be willing to accept risk, and you have to be willing to put your customers success at the forefront of your mind, your actions, et cetera. So this is a big shift for companies though. So can you talk a little bit about why that can be challenging for people to sort of wrap their heads around?

Joe Pine: Well, I mean, it really is challenging, particularly if you're putting your income at risk, right?

Sarah Nicastro: Mm-hmm (affirmative).

Joe Pine: If the amount of money you get is at risk based on the success of your customers, then that can be very difficult people to wrap their minds around you, particularly what you recognize. You can't guarantee that success. If I'm selling a good like packaging or I'm selling a service like installing machines or whatever. I can say everything's under my control. I can guarantee this is going to be a debt, therefore you pay me for what I'm going to do. But when it comes to a transformation, there are no guarantees, right?

Sarah Nicastro: Mm-hmm (affirmative).

Joe Pine: A lot of people who go to Profile by Sanford and want to lose weight, they still don't lose the weight or lose the amount that they want. A lot of companies that go in and help their clients change what they're doing. And you think about management consulting in general is another B2B transformation business, that not all their customers are going to be successful. Not everybody can handle it.

Joe Pine: So it is a very different state of being almost, when you think about this, that you've got to have that attitude that's says, we're going to do everything we can to be able to do this. But one of the things it says is that you got to pick your customers carefully, right?

Sarah Nicastro: Mm-hmm (affirmative).

Joe Pine: I remember with Stanford, I did this diagnosis phase. They start with a diagnosis. Well, there's a phase zero you need to think about too. You'll use another medical term, which is triage. Triage, is like you're in a battlefield or a huge car accident, or a series of accidents and so forth. Doctors have to determine who can be saved and who can't be saved. And they focus the resources. Those that can because otherwise they're trying to help the ones that in the end will not be saved. There's going to take away resources and more people will die.

Joe Pine: Well, and the same thing sort of thing about the dire consequences of death in there is you need a triage of your customers, is that you need to be able to ascertain, is this client ready for this? Is this client able to achieve the aspiration of what... If we do everything we do, are they going to get that success that they're looking for? And therefore we get the payout and if not, then you can't do it on a risk basis. Right?

Sarah Nicastro: Right.

Joe Pine: You got to make that... You may still say, okay, I'll still work with you, but I'm going to do this, or I'm going to get you to the point where you to do it, and then we'll do it. But in some cases you can't do that because even though the customer's willing to give you money, you really don't think they're ready for it.

Sarah Nicastro: Right. Yeah. That makes sense. So the other element here is that this type of evolution relies a lot on the ability to build relationships and to develop trust. So talk a little bit about the importance of that here and how, again, that's far different from the world of commodities products, more transactional type of relationships.

Joe Pine: Right. And going from transactional to transformational really does require a high degree of trust. Because you figure out what transformations, you're actually mucking around inside of people. Right?

Sarah Nicastro: Mm-hmm (affirmative).

Joe Pine: And it aims talking about a fiduciary responsibility that you have to do to the benefit of the customer. There's a more responsibility here too, that you do things that are to the benefit of that customer, that we've all heard. I don't know, heard stories, but we've seen movies for example, where psychologists actually are evil and they do things to their patients to get them to do stuff, because they're in that transformation business, they're inside their heads. The same way whether you're working with companies or with consumer. You're in inside their head, so to speak. And you've got to have gain that level of trust because they're not going to go out there. They're not going to change based on just what you say, unless they trust you and do it.

Joe Pine: I know that myself from like, I do golf coaching, I take coaching from professionals to try and get better. And there's where you start, you just don't have that trust. You just don't think that they're doing it the way that's going to help you. And then there's nothing you can do. It's not going to work. You got to gain that trust. That's one of the first things that when you get in with the customer that you need to work on, is show that your trustworthy, show that you have their best interests in heart, as opposed to just wanting to make money from them.

Sarah Nicastro: Yeah. You know, the other thing I'm thinking about, Joe, is, we've talked quite a bit on here about sort of the progression to delivering outcomes. And so it's not dissimilar, I think this is taking it a step further in ensuring the impact of those outcomes. Right. But I think one of the things that happens within our audience is there's sort of a limiting view around what we mean when we say outcomes. And so I had a gentleman on from Phillips he's no longer at Phillips. He is with a different organization, but Chris La Fratta, and the title of that episode was, is your view of outcome based service, limiting your success. Because I think, tying that add into this and what you say in this article is, thinking about it, a couple steps further in terms of not just how you deliver the outcomes, but how you work with a customer to enable those outcomes to change their business, their situation, their needs, et cetera. So it's a really interesting conversation.

Sarah Nicastro: Now, in the article, you talk about three steps to defining transformation. Can you just quickly touch on those?

Joe Pine: Sure. And the first is that you need to ascertain the jobs to be done. My jobs to be done theory's been around now for quite a while. I mean, it's origins are in the 1960s in fact, but it's understanding what are your customers hiring you to do. Is that when they buy a drill, is a classic example, what they really want is a hole, or hiring the drill to do the hole, like hiring a contractor to do the hole as well. You can hire your kid and pay them to drill the hole or whatever it might be. So what are the jobs you want to be done? And one of the things that I work with Dave Norton at Stone Mantel has come up with a great formulation and really meet on the bones around the fact that there are four distinct jobs to be done, functional, social, emotional, and aspirational.

Joe Pine: And often we just want the functional things done. If you think about going to a hospital, for example, the functional jobs you want done are, having a bed to be in the hospital, getting to the right places at the right time for the surgery that you're doing, even the surgery itself you can think of is very a functional thing of go going through that. But then you have all this emotions wrapped up in being in the hospital with your loved ones there, with whatever you go under generals to anesthesia, there's a chance of you dying. And if you don't administer to the emotional needs, then the job's not done and their social aspects as well of how do you handle the loved ones when they're in the waiting room, when they're [inaudible 00:18:00], how do you greet them?

Joe Pine: You think about the fact that during COVID where so many people were in the hospital and they couldn't even see their family, they couldn't visit them. I mean, it actually increased the number of deaths because you didn't have that social, emotional connection to them.

Joe Pine: And finally, aspirational is what is the real outcome as you say, which is exactly the right word. What is the outcome that they want done? And the surgery itself is only part of it because they're not whole until they heal again, until for example, you have hip surgery, you got her hip replacement. Well, you've got to... The thing is, new hip is not the outcome. The outcome is being able to walk or to play golf or to whatever it might be. And again, the job's not done until you hit that aspirational outcome of what they're trying to do.

Sarah Nicastro: Yeah. I think about the aspirational one a lot as it relates to our audience, because I think one example that came to mind as you were talking through that is, around data and the ability. Some of our companies in our audience have to leverage data that they might be gathering on their customer's operations for their own use in a way that provides those customers insights that can really help them. But I think that where sometimes we limit ourselves is how far we take that vision. Customers aren't necessarily going to benefit from a company just dumping them a bunch of data and saying, hey, here you go.

Sarah Nicastro: I mean, if you can take that a step further and then think through, how do you make that data useful? How do you make it actionable? Is there coaching you can do to help them use the data? Is there education you can provide on what the data means, and maybe what other customer customers of yours in that ecosystem are doing with the data, then you start to get into helping them with their aspirational objectives in a way that can be unique differentiation. So it's interesting. Okay. So after change, the job to be done... Go ahead.

Joe Pine: Well, right. And then you're getting into the second step, in fact, which is define success along the way. So rarely can you go, like from here to boom, one life transforming experience, right?

Sarah Nicastro: Right.

Joe Pine: So that it will happen. Those are always serendipity, but it takes a series of steps along way. And what are those milestones that you have to go to. You talked about, well, you got to get educated, you got to be able to use the data. You got to be able to apply the data. How do you go through those and define success along the way is a key thing.

Joe Pine: And then you've got to identify the barriers that they have to overcome in order to be able to achieve that success. And often your past experience with other clients will enable you to recognize what those barriers might be. But every person, every company is idiosyncratic is in individual. And you've got to be on the look out for those and identify what those might be for that individual company.

Sarah Nicastro: Yeah. That makes sense. Okay. So that's how we can define what the transformation looks like. And then you go into talking about the steps to designing, offering to aid or create that transformation. So what does that look like?

Joe Pine: Yeah. So first of all, to recognize with the transformation, what you have to do is you have to integrate together of a number of different elements into one cohesive offering, into one solution basically. And it's really is a solution business. Recognize transformation are built on top of experiences. We only ever change our experiences, experiences are built on top of services, the activities that people do. Services are built on top of goods, the physical, tangible things, and goods are made out of commodities at the bottom level. So all of these happen and today, if you're not in the transformation business and the customers isn't buying that full transformation from you, then guess what, they're responsible for integrating all those solutions. Again, going back to dieting, I'm responsible for buying the dieting book, buying the meal plans, keeping track of my calories, doing all of those things, and guess what? I'm not all that good at that. And my chances of success go down.

Joe Pine: So how do you integrate those together? And it doesn't mean you have to some apply all of those elements so that you often can partner with other companies and be able to pick and choose and get them to bring together these elements, where they excel at things. So you've got to complete and total solution. You got to recognize one of the things that you don't have. And then when it comes to partnering, the second element here is also to partner with your customers, right?

Sarah Nicastro: Mm-hmm (affirmative).

Joe Pine: That it is a partnership that you've got to get them involved. Again, you've got to get that commitment. We have the old saying that you can lead a horse to water, but you can't make them drink, right?

Sarah Nicastro: Yeah.

Joe Pine: If the horse doesn't want to drink, it's not going to happen. So you got to partner with your customers and maintain that commitment all along, and understand that there's times in any partnership where they in the lead and there's times when you are in the lead, and that dance that you go through is very important. Another key element-

Sarah Nicastro: Sorry, Joe. Real quick. I was just going to say on partnerships, I know one of the learnings that a few people have shared here as they kind of progressed through the journey to advancing their service businesses, and so as you look at services to experiences to transformation, it typically means partnering with a different stakeholder within your customer base. So the person that you sell services to is not the same person you're going to sell transformation to. And so that's part of the journey for these folks is understanding what that stakeholder landscape looks like within their customer base and developing relationship with the people that ultimately are going to want to not only invest in, but to your point, be equally committed to the transformation.

Joe Pine: Right. If you think about a normal customer hierarchy, you may be selling services at this level, but if you want to sell transformation, that's going to be at a higher level. Right?

Sarah Nicastro: Yeah.

Joe Pine: Absolutely. The third thing is to provide customized support. You can't do this on a standardized basis. You can't have one offering one solution that fits everybody. No solution fits all. You've got to be able to customize it. It gets back to my initial work on mass customization back on their 1990s is where all of this flows from is efficiently serving customers uniquely. As an example, one of my favorite companies in that regard is Progressive Insurance, that they have tens of thousands of different policies. It's why you could name your price and they will design a policy that fits your price. But then where they really shine is when you have an accident and they come to your rescue and they, they, they make you whole. That's their business.

Joe Pine: The former late CEO of Progressive, Peter Lewis, said a number of years ago that we're not in the business of all to insurance. We're in the business of reducing the human trauma and economic costs of automobile accidents in effective and profitable ways. That's a transformational view. And it's all based on that customizing. And earlier you used a word about, you said the word insurer, that something happens. And I've got a little insurance model that applies to, I think in general to all service companies is insure, if you look at the definition, it means something bad happens, we pay you money. That's the service level.

Joe Pine: Yeah. Okay. Something bad happens, we pay you money. We got to do that. Offshore, is what Progressive really focuses on, is when something bad happens, we make you feel better, right?

Sarah Nicastro: Mm-hmm (affirmative).

Joe Pine: That's handling the functional job and pay you money, emotional and social jobs of ushering you, making you feel better. But that aspirational job of bringing you back to whole is ensure. How do we ensure you get the outcome you want? And that applies in any business that wants to think and be in the transformation business. And then it relates to the next point about supporting the full range of jobs to be done. Don't just focus on aspirational, recognize that you have all these others, and don't just focus on functional. Those are sort of the two end points that if you're not in the transformation business, you tend to only function on functional.

Joe Pine: If you're in transformation, sometimes you focus on an aspirational without taking all those into account. And the final thing is incredibly important. And it gets back to what you were talking about earlier, Sarah, about risk, putting risk at it, and that's charging for outcomes. And what people hire you for transformation, they want an outcome. And it doesn't matter the goods and the services you provide, doesn't matter the experience they have, unless they get the outcome they desire. But you need to make as a company, your income dependent on your customer's outcome, you to charge for demonstrated outcomes that customers achieve. And that's the one thing when we first said that back in 1999. We were sort of thought crazy regarding that. And now you see it happening more and more all over the place, where companies are able to actually charge that outcome. So they put a risk at it because they know that's what it's really all about, bottom line.

Sarah Nicastro: Yeah. Agree. Are there any other examples, Joe, that you would point to, as those who are embracing this next pillar of the evolution and doing it well?

Joe Pine: Well, one set of companies I've done a lot of work with over the last 20 years is in health care, particularly with hospitals. And one of the core reasons is that research shows that the better the patient experience, the better the outcome. And so there's a lot of companies are focused on that. And I've worked with them through a consultant company in particular itself called Starizon Studio, that did actually charge for demonstrated outcomes. So I'll use them as a mini example in here, is that when I worked with Starizon, we gave what we call the 25% transformation guarantee. That 25% of our fees were completely at the client's discretion. They could pay all of it, or they could pay none of it, based on whether Starizon did what we said would do. They got out of it, the outcome that they said they wanted. Some consulting service will say, well, let's give us a percent of market cap or give us a percent of cost reduction.

Joe Pine: We just made it totally at their discretion. And in all the years who was in business and we had two clients that ever did not pay at all. And so we worked to make them whole, we did additional work to make that happen. But one of the companies that we work with is Heartland Healthcare in St. Joseph, Missouri. And so there's a small hospital system centered around St. Joseph's. And what we came up with them is, what is your purpose? What is your raise on debt? Why do you exist? And they decide that what they're all about is live life well, right?

Sarah Nicastro: Mm-hmm (affirmative).

Joe Pine: That became the organizing principle, the theme, the purpose of the organization, that they want their patients to live life well, and not just their patients, they want the community that they reside in. They want everybody to live life well, so they got to get more involved in the community. They want their employees to live life well, so they have the wherewithal to help their patients and community live life well and so forth. And so completely change it. They recognize that they're no longer in the healthcare business. They said, we're in the life care business. They change the name from Heartland to Mosaic. So instead of Heartland Healthcare to Mosaic Life Care. They completely redesigned their patient offices to be able to be warm, welcoming places that fit in with live life well. They added coaching and other things that they do, and they really began to think transformationally about how do we transform our patients, community, our employees, so that they live life well.

Sarah Nicastro: Mm-hmm (affirmative). Very cool. And so one of the final points I want to make sure we touch on is, just about every company that I have on the podcast, they're looking for ways to differentiate what they do from what any of the competitions do. And one of the strengths of the transformations business is that it provides value that is very, very hard for others to imitate.

Joe Pine: Yes.

Sarah Nicastro: So how increasingly important do you see this becoming over the next couple of years and why?

Joe Pine: Well, I think it'll be a longer timeframe before it becomes generally accepted to be transformations, but as you exactly say is that, business competition is a social differentiation. If you're not differentiated, then you'll become commoditized. Right?

Sarah Nicastro: Mm-hmm (affirmative).

Joe Pine: And for my entire career of helping companies, my Bogeyman is always commoditization. You'll become, you don't do this, you should be commoditized. And that's the case here as well, even... I've said that long about, goods and services are becoming mere commodities. So you have to stage experiences. Well, if you're in a business where customers are really looking for outcomes and here that applies to all B2B companies, even if you're selling physical goods to other companies, no company, once you're good, because they like the goods. There are a means to an end. You need to sell the end rather than the means.

Joe Pine: And that's the reason why you need to... One of the techniques we talk about in the articles is the old TQM technique of asked five whys, applies not just to, when something goes wrong, applies to, what does your customer want? We want to buy this. Why? Well, because of it, why? Until you get down to the core reason. How can you help them achieve that core reason that aspiration? And that's what will give you differentiation. That's what we allow you to escape the commoditization trap. And so whether it's one year, three year, five or 10 years, as you find yourself being commoditized, particularly as a B2B company, particularly as one in field service in other sort of service industries, is to recognize the opportunity that lays there in transformation so that you will be differentiated. And if you're smart, you will take advantage of the next one to three years before your competitors. You'll commoditize them because of your focus on being in the transformation business.

Sarah Nicastro: Yeah. I think that's a really good point. And another thing I would say, especially to your comment, you think it'll be sort of a longer transition, this also can... It doesn't have to be a complete 180 on how a business sells itself. It can be a diversification strategy. You mentioned earlier on that, if you're going to go into the transformation business, you need to be selective about who your clients are. So for a company who is well established, who has seen good success, selling services, even selling experiences, it doesn't mean you have to go all in on pushing transformation to all of your customer base. But looking at the opportunity of those clients who you feel would be a really good fit would have interest, would be committed.

Sarah Nicastro: It can give you an opportunity in the short term to really test this out and learn more about how it could work and just get some good experience with it, so that you can get ahead of the game. So I think oftentimes we think in absolute. And it doesn't have to be, okay today we're a service business or an experienced business, tomorrow we're transitioning to a transformation business. It can be, hey, let's start doubling in this. Let's start picking some select customers to work with and shape this out and learn from et cetera. So really cool stuff, Joe. I mean, I think it's a great article. Like I said, I'll make sure it's linked. I'll make sure the earlier podcast is linked as well. Any final thoughts that you would want to share with our listeners?

Joe Pine: Well, I love what you just said, Sarah, about, you can start small, you can start with certain clients and do that. But eventually, the key thing is to recognize what business you're really in. I think, first of all, you can shift from services to experiences for all of your clients. Even if you are delivering day to day services, well, the key with the experiences is how you go about doing what you do. That turns you any mundane interaction into engaging encounter. And then transformations, thinking about why your customers want those. And so that movement from what we do, to how we do it to why our customer wants and focusing on them and recognize that it really is becoming customer-centric in order to be able to affect this as an important thing in recognizing how you can benefit from transformations.

Sarah Nicastro: Yeah. I like that. So if services are the what an experience is the how, then transformation is the why. And I think that can really help organizations sort of map what this looks like for their customer base, and start thinking about it in terms of, 1, 3, 5, 10 year strategy. Really, really good. All right, Joe, where can folks find you if they want to look at the book or... Like I said, I'll put the links to the Harvard Business Review article.

Joe Pine: Yup. And I'll mention that we actually... Originally came out the book in 1999, we released it for the third time in 2020. You can find that easily on Amazon, Barnes and Noble, anywhere. You can find me on LinkedIn, if you want. And on Twitter, @joepine. And then our website is, strategichorizons.com, Strategic Horizons with an s.com, and there's information on me, our books, our certification classes, our onstage frontline training program and everything else.

Sarah Nicastro: Excellent. All right. Awesome, Joe. Well, thanks for coming back. I appreciate you being here.

Joe Pine: Thank you, Sarah. I appreciate the opportunity.

Sarah Nicastro: You can find more by visiting us at futureoffieldserviceref.ifs.com. You can also find us on LinkedIn, as well as Twitter @TheFutureOfFS. 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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April 20, 2022 | 25 Mins Read

Overcoming the Barriers to Service Growth

April 20, 2022 | 25 Mins Read

Overcoming the Barriers to Service Growth

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Hilbrand Rustema, Founder and Managing Director of Noventum and Marne Martin, President of the Service Management Business Unit at IFS join Sarah to discuss recent research conducted on service growth trajectories and what today’s biggest hurdles to overcome are in achieving service potential.

To access the research referenced in this episode, visit here

Sarah Nicastro: Welcome to the Future of Field Service podcast. I'm your host, Sarah Nicastro. Today we're going to be having a discussion about overcoming the barriers to service growth. I'm excited to have with me today Hilbrand Rustema who is the founder and managing director of Noventum and Marne Martin, who is the president of the service management business unit at IFS. Hilbrand and Marne, thank you for being here with me today.

Marne Martin: Our pleasure Sarah.

Sarah Nicastro: All right, good, okay. Today we're going to be having a conversation that is building off of some research that Noventum and IFS recently co-created. We're going to talk a little bit about the research, but then we're going to dig into a discussion around, what the biggest challenges and hurdles are that companies are facing as we talk about this service transformation and evolution. Hilbrand, can you start us off by just giving an overview of what are the drivers that we're seeing in service transformation and growth. What is the why behind, why companies are looking to evolve how they're doing business today?

Hilbrand Rustema: Yeah, sure Sarah. First of all, I would say in industrialized high income countries, the manufacturing sectors they have already for quite a while, they've been under pressure. Price pressure on their products, whatever they make usually there's a lot of competition. They have already for a while, they started differentiating themselves with services. They used to be main product related services but now the competition on services is increasing and I think the fact that you now get more data from your equipment, you can develop a lot of insights, knowledge about how your end users are using your equipment and you can create all kinds of services that address the more, what we call customer business challenges. Things like process optimization, business optimization, as of changing elements in the business model to the benefit of your end customer business transformation services, helping them to really improve a whole function or a process and things like creating what we call this digital ecosystem, optimizing the value chain.

Hilbrand Rustema: These are all new possibilities that have come about and obviously, competition is not sitting still. There's a lot of these manufacturers that are digitalizing, they're wondering what to do with it and some of them are quite successful with this. Yeah, why are lots of manufacturers getting into this game? It's very simple. If they don't do it, somebody else will do it for them and that will put them behind in this, yeah. I think that's the main reason.

Sarah Nicastro: Underneath that though, I mean, yeah, if they don't do it someone else will but, the it is being driven by more sophisticated customer desires and demands, right? I mean, that's essentially, we're looking at almost a reality where not only have products become commoditized but I mean, now you hear people that they don't even want to talk about service. They just want to talk about the outcome, right? What can you do for me? What headache can you alleviate? What part of my problems can you take off my plate? The whole conversation has changed so the customer desires are at the root of this but, there's companies that are pacing far faster in meeting those needs and so everyone's in this race to make sure they're keeping up. Hilbrand, where would you say based on the research you've done and the work that you do with different organizations, where would you say most companies are on the journey?

Hilbrand Rustema: Well, we define some major steps in this research. We say, most companies, manufacturers, they start being reactive then they go into preventive services, have preventive maintenance contracts. A lot of the companies in the research, it's approximately 60%, they are into becoming predictive so using data to improve the type of services and not only predictive maintenance, but also helping customers to look at predicting volumes for example. And then they're going now towards proactive. Proactive services meaning, you are trying to anticipate what your end customers really need and there you look at the customer business needs.

Hilbrand Rustema: Now, the majority of the companies, the manufacturing companies, they have some level of digitalization and they're far into these predictive services and the real payoff is when they go to that proactive model. And there you go into these outcome-based services as you say or as a service business models, manage services, process outsourcing and this value chain optimization, the digital ecosystems let's say. That's where it's going and I would say, the majority is still in that predictive phase. It's really hard to successfully transform towards that proactive model. There are many reasons for that.

Sarah Nicastro: Yeah. And we're going to talk about this. Okay, all right. Marne, we talked about customer demand and how that's at the root if you will of a lot of this change but none of this would be possible without technology and digitalization. Talk a little bit about the role that digitalization plays in this journey to service transformation and service growth.

Marne Martin: That's an excellent question and I'll pick up some points related to manufacturing specifically in a moment but, digitalization is what enables asset and customer-centric businesses to thrive. We know that with our economies generally growing, with the supply chain issues, the increased customer demand, it's no longer an option to have a digital through line and be able to digitalize your processes one for scale, for resiliency, et cetera. Even if you look at verticals like telco utilities where the customer demand from retail customers or business customers is what's driving the revenue model, but then service is what keeps the infrastructure and the assets up, even there, there's a lot of investments in service related processes and say next generation technology to facilitate the uptime and the outcomes of what they're selling, right? Whether that's national resources, electricity, renewables, telco services, voice data, what have you. With manufacturing, it's equally as necessary that they digitalize their entire footprint, back office, front office, supply chain, customer experience, et cetera but you have the added complication that service becomes a business for them.

Marne Martin: And one, we know that for them to be most successful at scaling and growing that business, they need to have the data collection, they need to have the digital transformation sufficient to have integrated processes. Again, back office, front office, your field service workers and including the asset or equipment intelligence that they have. That is what I would call table stakes in this day and age. A lot of businesses, either regionally or globally, aren't at say a resilient and modern place related to their IT ecosystem and framework. Certainly, that is step one, that we partner with customers that, how they assess the problems that they have, how we find the solutions and the benefits too.

Marne Martin: Related to the point that Hilbrand made about how you transition a business to say, digitize business outcomes once you've made that investment in say your technology enablers, that's where it's really thinking about, what are the type of customer facing and operational folks that know how to migrate from a conventional or maybe even a somewhat more predictive business model because they have the data to start analyzing, becoming more predictive, to really thinking about their business being a digitalized, digitized business outcome model. And there they need people that know how to think that way, how to talk to customers that way. But it not only puts pressure on say backend ERP, also the field service management, the intelligence that you're getting from the asset, but it's also driving changes in how we think about even CPQ technology, right? How are we facilitating that crossover of say, getting the value from the asset, being able to be serviced in enhanced ways but also driving the customer experience in every interaction there is and driving the outcomes because you have enough data to become more outcome-centric and you can work that way.

Marne Martin: It's really a super fascinating time but, per Hilbrand's point, it's impossible to move even to predictive or from predictive to a true digital business model in a digital company if you haven't made the technology investments that you need to make. And then it's a question of, how you're changing say your revenue models and the people that you need to move that way. And that's often what we see a lot of customers when they review say a technology project, if they're forward thinking, they're thinking, okay, to get where we think we need to go, this is the technology we need. But they also have to think about, say the culture they need to change, the different types of people they need to recruit to help move them there into that new service model and that digital experience if you will that they are monetizing. I'll pause there because that's as much important related to what you do with the technology as the awareness of where the technology or the digitalized gaps are.

Sarah Nicastro: Yeah, for sure. I mean, depending on the industry and the company, I mean, but particularly when you talk to service leaders within manufacturing organizations like, it's a real identity change for the business for if they really want to get to the end of this continuum, right?. I mean, if they really want to seize the full opportunity, you're really talking about fundamentally changing the identity of the business and that, I mean, it's really, really layered and complex and I think it depends so, so much for those folks on what is the mindset of the top level leadership because I've seen stories of manufacturing organizations where the CEO of the company totally gets it and I mean, is excited about the evolution and to see the progress those companies can make versus an organization and I always feel bad for these folks where you have an SVP of service who is literally just running into a brick wall because the CEO is just stuck in the, "No, we manufacture products," mentality and it's really tough so, you're right. I mean, there's-

Marne Martin: I think your growth... You're 100% right about that, certainly. And if you think about change management and how you coach problem solving skills, I think that is super important. I know you had a podcast that focused on that, how you look at things in fresh ways and solve problems. I think the other aspect that doesn't often get addressed but Hilbrand and I have talked about it is that, when you build a more scalable model i.e, you have technology that enables you to scale and sell these new type of digital offerings, the pace of growth can sometimes be too rapid i.e, the new business model becomes more successful. We've talked a lot about POCs that never get rolled out, but the reverse is also true that, if you do have the right type of engaged say digital transformation dream team or whatever you call it, and then suddenly you create a new, highly scalable commercial model, that can put stress on the business as well because if you think about a lot of manufacturers, think about growth and what's possible still from a model built from supply chain or manufacturing dynamics.

Marne Martin: I have enough supplies to manufacture this stuff, my factory has this throughput.... Okay? And that's still permeating how they think about it. I have enough technicians therefore I can only do this many jobs, then that's my revenue model for my service business. But when you enable a different type of business that suddenly those say fundamentals aren't what are the most meaning for your growth, instead, you're thinking about, look, what do customers want from me? How can I price that? How can I deliver that? And that's what then drags along everything else. That is a hugely different way of thinking in these businesses. And most of the people that have gotten to a director, VP or C level in these businesses, didn't come up with that thinking in that scalable business. That was enabled by technology in the ways it can be today.

Marne Martin: And then you also see that a lot of IT professionals that obviously a CIO knows the value of buying technology and filling functional gaps, but thinking about how they themselves can evolve to be more scalable and nimble when the business has evolved alongside is another discussion that internally, thinking about how you form these digital dream teams and is really relevant because otherwise, it seems like companies make two steps forward, one step back, et cetera. And like Hilbrand said, it's really hard for them to continue say, moving up market into outcomes and experiences and embedding all of this into their day-to-day processes. If they aren't able to move in lockstep with all the various stakeholders and partners of important.

Sarah Nicastro: Yeah, okay. The research itself takes a look at this growth journey and what the drivers are, where companies are at, how that's impacting their business, those sorts of things. And so, we'll make sure that we link to that report in the show notes so everyone can go take a look at that but, we don't want to be redundant in the conversation today so we'll let you look at that. What we're going to dig into a little bit more is some of these layers of complexity that I think aren't super obvious when you look at this continuum on paper, right? You look at it and you think, okay, great. At predictive, here's what we need to do next, perfect. We'll just set a plan and we'll get there, right? And it's not quite that easy. We'll dig into a few and these are in no particular order. The first one, Hilbrand, Marne just spoke about the critical role of technology in all of this. I mean, you can't progress through this journey without investing in the technology you need to support it.

Sarah Nicastro: But one of the things that can happen is that, companies know that and so they start to make very rash decisions and they start to make big expenditures without really first understanding the value the customers want which is ultimately what they need to be working toward delivering. Talk a little bit about what happens there and what the advice is, how to be pragmatic in balancing those two things.

Hilbrand Rustema: Yeah. Of course, lots of these companies they are investing heavily in digitalization. Very often when we get involved, it is often out of a bit of frustration from that senior level management because, they've done all these investments and they don't see that return. Very common is that, they haven't really taken the time beforehand to really understand what problem are they solving with the solution that's called digitalization, yeah? Developing an understanding of what your customers really need and then particularly putting your service hat on, not just your product hat, yeah? Because if you are also then just open enough to go away from only that product-centric thinking and to really start thinking as how many features functions, and that is very traditional in manufacturing companies. And to really look at, what are the so-called pains and gains of these end customers and what are also some innovative business models that you can think of to addressing those, whatever the customer challenges are.

Hilbrand Rustema: And obviously while you do that, you have to look at your own capabilities. If it's something that you do not have within your own capabilities or you cannot quickly acquire as a manufacturing companies, it's very difficult to go and address as you either have to do acquisitions or start huge buildup of talent. You start with what is close to your own capabilities and that's how you evolve. It is more an evolution than a revolution. But we typically see, they haven't really thought that through. They may have thought that through but not created a complete vision of that future state. Let's say having said to each other, "Well, how do we want the business to look like in three to five years, considering that we now have a deep understanding of what our customers really need."

Hilbrand Rustema: And you cannot go and ask customers what they want because, these services that you may come up with, they don't exist yet so they don't know what to ask for. You have to look at, what customers need, think about what are the capabilities that you can bring forward or that you can develop to address it. And that usually results in entirely new business models. You have to think about not only the tangible value that you provide, the lots of engineering cultures, they always love to talk about KPIs and anything that's measurable but also to think about, what is the intangible value, yeah. Think of yourself as being an insurance company more than that you are a product company delivering tangible stuff, yeah? And to move away from the cost-based thinking, go more into value-based thinking, how do we add value to that customer and have the different definition of quality. At quality, it's no longer the product specification but it is, what's the customer experience? What did they anticipate when they thought about your company, your brand? And what's the real experience?

Hilbrand Rustema: Or, what do you want it to be? And talent, you would have to start thinking about not just the technical talent and excellence let's say that you can provide but it's more the, customer handling skills or the consultative skills that you need to figure out what your customers really need. And so, it's those sort of steps and then I usually say, you need three things to move things forward. You need to have that pretty clear vision including a definition of your service portfolio of the future, you need to have a good business case. You need to have an addressable market, it needs to look good, be profitable and you need to have a plan. And if any of these three things are missing, it's very difficult to move forward because the biggest, the most difficult challenge you're going to have is in the organizational transformation.

Sarah Nicastro: Right.

Hilbrand Rustema: Yeah, it's no longer the digital part let's say. That's-

Sarah Nicastro: And I think if you look at the organizational side or the digital side, it seems to me that the biggest challenge is really universal in both which is fragmentation. When you get into silos in either the vision, the strategy, the execution of a plan or on the technology investment side and not making sure that, you could have 10 different tools in place that all on their own serve a really important purpose but then you break the customer experience 10 times, then the end result is frustration, right? And so that's important but, you touched on a number of things I want to go back to and I was... I mean, you're really-

Marne Martin: Can I add two things in that-

Sarah Nicastro: Mental gymnastics! I'm trying to keep track of all of them in my head. Marne's going to test me further. Okay..

Marne Martin: We're going to do a follow up. We'll have to do a follow up. I think you hit on something there that's really important and it ties in with what Hilbrand said. If you think about now with the disconnected, you'll have customer experience that they try and layer in say within a department or within a use case, right? Moving to predictive means that often you have enough data and you have enough data scientists and/or people that know how to do machine learning, that you can move to a predictive experience. Bringing customer experience more into your processes, your integration, your interactions, thinking about how you have data, data scientists, machine learning expertise to bring to a predictive experience, that's still a stretch for a lot of companies but the level of change to do that is still closer to where most manufacturers and businesses are. That's why when you tie back, those of you watching to the research, we're going to publish from Hilbrand, you see more companies moving from what in that research is the first peer group to the second peer group because it's an easier evolution for them.

Marne Martin: Assuming that they do care about customer experience and they are able to hold their data enough that they can drive a predictive experience. If you start thinking about how everything becomes an embodiment of customer experience and outcomes and a digital business model, that's where you see the most challenge to having people that are more entrepreneurial. And for the most successful manufacturers in the world, we're talking about the huge global brands that we all admire, they haven't had to be entrepreneurial for a really long time and if they just bring in a chief DX officer or a head entrepreneurial officer, that's not going to be enough because of all the relationships that have accumulated and been built in these organizations over time.

Marne Martin: This is where the technology side certainly isn't a small thing to fix, but that is an easier thing to align and fix than the actual organizational change and making some of these companies more entrepreneurial so that they have the ability to do business plans, execute against them with the pivots and the flexibility needed whether it's, they found out some things are less profitable, some things are more profitable, some things grow faster when they actually start to sell them, et cetera. That really takes entrepreneurship skills and that's often an under talked about aspect in addition to everything else.

Sarah Nicastro: Yeah, no, that's a good point. Okay, a couple things I thought of that I want to go back to. One is, we had a podcast last year and it was titled, is your view of outcomes-based service limiting your success. It was with a gentleman named Chris La Fratta who was at the time at Phillips. I know he's no longer there, he's in a different role but, it was a really good conversation. And Hilbrand, it made me think of what you said about, you can't rely on your customers to tell you the vision because you're trying to create things that don't exist yet, right? And so it was a really good conversation talking specifically about he and how Phillips dug into really expanding the outcomes of their customers and hospitals that they could meet, right? It was a really interesting conversation.

Sarah Nicastro: And I think you're right. I do think I will always be an advocate of the voice of the customer and so I think that, while you can't expect them to answer the question of, what outcomes-based services would you like us to provide, right? I mean, I think you do need to be really close to having conversations about what are your biggest pain points, what are your biggest challenges? Because the answer to those questions is a really important part of sorting out, what could we do with our skills and expertise to help alleviate some of these challenges. And then of course, come up with ideas beyond that.

Sarah Nicastro: But the point I wanted to go back to is, one of the challenges I think companies face in doing that is that the relationships they have within their customers, that they are selling more transactional services to are far different than the relationships they need to develop to understand those challenges and then ultimately be able to sell advanced services, outcomes-based services to. How does an organization go about building different relationships within the customer base and really getting the level of insight and trust they need to be able to not only reimagine their value proposition, but then sell it successfully.

Hilbrand Rustema: Yeah, it's a very good question because it's actually one of the most often asked question I deal with. How do you make your outcome-based services or any advanced services? How do you make it really scalable, particularly, how should that commercial organization or customer facing organization look like? And you mentioned Phillips. I had the pleasure of being involved there in the transformation towards becoming organized around customers and markets rather than being organized around the functional silos. Silos is an implied word, but the different functions, the different product lines and the functions. At the very top of the organization, there needs to be a realization that, hey, the sales cycle first of all, doesn't stop when you have sold your product and even the product related services with it if you do that at the same time, that's great. It's just the start of a relationship.

Hilbrand Rustema: The whole life cycle, the customer life cycle extends beyond that and you have to start looking at, how do you make your customers successful, whatever they're trying to do, yeah? And therefore, you need to segment your customers. What are the different types? What are their objectives? What are they trying to do? And come with a service portfolio that addresses let's say, the bigger part of the needs. Don't try to do 100% because if you try to be all things to all people, that never works. You create a manageable portfolio that is standardized, completely standardized, but not in a rigid way. You have a couple of core propositions and then you have options that are in itself standardized as well. You create what we call standardized personalization. You create unique propositions for customers that you already know you offer the outcomes. You don't always start talking about what you need, because you should already have a pretty good idea if you have a certain type of customer in front of you so the salesperson should know.

Hilbrand Rustema: But then, how are you going to manage that success or set up your customer's success organization rather than just your sales organization? And that goes all the way through to whatever you see as the end of life of that customer. And that is obviously for many organizations, that there is no end to that at least that they wouldn't want that, yeah.

Marne Martin: Adding on to that, Hilbrand I'm curious your thoughts, because we've discussed this over time that, as manufacturers start selling digital business outcomes and become more of a value-added services, it not only changes the profiles of the people they have like we talked about and definitely the people in the field or the frontline workers change a lot, but they almost become in a way a technology seller like we are, right? Selling the problem solution benefit we know is how customers view high value buying cycles in technology and it's the same. If you think about manufacturers that are talking to their customers, they want their customers to feel that they're getting a high value selling cycle or a purchase and it needs to be tied to problem-solution benefit. There's also aspects when we sell technology, we're selling replacement and emerging technology.

Marne Martin: And it's the same with these service companies, these manufacturers. If they're selling some things they sold before, but they're also selling some new things. And how they mobilize the type of stakeholders and buying cycles is something that they're often not used to when it's just a conventional service contract. There's skills that they can actually take from technology vendors like IFS, et cetera on how they think about mobilizing selling the customer success, business value realization as well, not just getting to the sale but the post-sale experience, which is all that Hilbrand was referring to. And that's where I think that sometimes they don't look for others say complimentary partnerships or industries where they think about selling and customer success that are relevant. It's a little bit like science that you have some of the greatest innovations and things when you have the intersection of sciences. And in a way, what we're now seeing is the intersection of conventional manufacturers with what are becoming digital businesses. And that's where it'll be really interesting to see not only how that drives service strategies, the implementation of technology, but really, how they change the art of selling.

Hilbrand Rustema: Absolutely. And maybe to add to that, the talents, they change so much that it's no longer can be found in one person. It's not that one salesperson or that one account manager. It is now becoming a multifunctional customer success team. And that team may change over the life or the relationship that you have with that customer depending on the skills and knowledge that you need. And I would say that is a very big challenge first of all, for manufacturing companies to think that way, to envision such type of organization. And indeed you can borrow a couple of pages from let's say the high tech IT industry where through the SaaS models, this is already common good let's say. This is something that is well known.

Hilbrand Rustema: One thing I have to add in the manufacturing business is that, it's a bit more complex also because you are still having to manage the physical supply chains and dealing with the spare parts. I mean, all of that stuff doesn't go away, it's just basics. And now you have the digital, the consulting skills, whatever you need, all comes on top of that. For some organization, it's mind-boggling complex to do this especially in a relatively short time.

Marne Martin: Sure. And we're seeing that there's certain high-level trends, circular economies, sustainability, et cetera, that are also driving say evolution when you look at, how people are positioning offerings, what customers value and frankly, managing supply chains. But as an example, going back to, you talked to me about technology investments, reverse logistics was often something that was never looked at in the past but, when you think about the complexity of managing spare part inventories, supply chain and this and that, obviously you have the forward aspects of supply chain and supply chain planning but, businesses are now finally starting to put enough attention and investment into reverse logistics. How embodying this digital business model also comes with a different approach around the fundamentals like Hilbrand talked about, not just, how are they designing from a PLM perspective what they're manufacturing but how they're thinking about refurbishment, re-manufacturing, can they pull rare earth metals out of the old equipment that's retired or can they reuse spare parts?

Marne Martin: All these sort of things aren't new things but they're now starting to get more attention. And frankly, they're more needed alongside what are becoming digital business models. That's why I said before that, there's always the traditional areas that we're trying to improve, make more profitable, more streamlined, better customer experience but then there's also, the emerging technology, the emerging business models and how businesses reconcile this in the way that has the least amount of friction is the most rapidly scalable. These are the businesses that we'll be betting on in the future, right? If you think about the next 100 or 50 years or whatever, the businesses that one, stay in business and two, rise to the top either as public or private companies will be the ones that figure this out and the ones that don't, will be the ones that lag behind.

Sarah Nicastro: Yeah, okay. We're going to run out of time but to close us out, why don't you both share, it could be a challenge you feel like we didn't get to that you want to discuss, it can be your best piece of advice to those listening related to this journey. Hilbrand, do you want to go first?

Hilbrand Rustema: Yeah, it's a big question. I would start with what I said at the very beginning, whenever a company considers A, what we call a service transformation, make sure that you really understand what your customers need, start with that. Think of this as a very big transformational change. Think about, how your culture, your supporting organizational structure, your skills, what needs to change there, have a good understanding of it. Manage it as let's say, a transformation. It's not just a project let's say. The third thing is, you figure out your business model before you do the big investments. Meaning, have a good value proposition, knowing how to sell it and figuring out how to deliver it in a scalable way because that's the only way you're going to make some money. Then in terms of implementation, yeah, start small, pilot, do this until the moment that your customers that you're piloting with, that they tell you, now you got it right. And then you start scaling it up, yeah? I think these are probably my most important tips let's say.

Sarah Nicastro: All right, sounds good. And Marne?

Marne Martin: Hilbrand's tips are absolutely accurate. I would just say that, with understanding the benefit and what you're trying to achieve obviously is number one because, we've seen businesses spend many millions of dollars, tens, maybe even $100 million dollars and not get the benefits or the transformation that they were looking from either a change management initiative with or without technology investment. So definitely having that crystal focus on, what you want your business to look like on the other side and what you want your relationship to be with either the customers you have or the customers you want to have related to your Tam has to be that north star, that guiding light, et cetera. I would also add that I feel sometimes I already made the point about entrepreneurship but I feel sometimes that businesses need to be a little bit more courageous. I'm not arguing against anything that Hilbrand said but, I also see businesses that are so risk adverse that they one, don't know how to properly assess whether a POC is scalable or was successful or not and then two, sometimes they don't take the opportunity fast enough, right?

Marne Martin: And a lot of that is, say you're a complex global manufacturer in 100 countries. Okay, so you had a successful pilot in maybe your smallest market, your biggest market, something in between but how do you then capitalize on the opportunity to go faster and be more courageous while meeting the business challenges you have day-to-day? That can be a whole discussion and obviously there's a lot of business consulting and management consulting and a lot of stuff that goes into that but, I would just add again, thinking about what the business and customer relationship you want to have on the other side and then making sure that you have enough courage and entrepreneurship in a business if you really do want to change business on the other side because if you just want to incrementally enhance your existing business, that's certainly possible and certainly there's ROI in that too. But if you really want a different business or an evolved business on the other side, that takes a certain amount of entrepreneurship and courage.

Sarah Nicastro: Yeah, that's a really good point. It makes me think, I'm just referencing related content. If people want to go check it out, we did a podcast with a gentleman named Dan McClure last year and it was really digging into how people often mistake incremental improvement for innovation. People convince themselves that they want to innovate but then they default to incremental improvement because it's what's comfortable, it's what's safe and it digs into that conversation which is a really good one. Okay. Well, thank you both for being here. Like I said, I'll make sure that we link the full report in the show notes so that everyone can go check that out but appreciate you coming and spending some time with me.

Marne Martin: It was great, Sarah, and thank you Hilbrand as well. I really appreciate. It was fun to do this with you.

Hilbrand Rustema: You're welcome, thank you.

Marne Martin: Bye Sarah.

Sarah Nicastro: Bye-bye. We'll link the full report. You can also find more by visiting us at futureoffieldserviceref.ifs.com. We're also on LinkedIn as well as Twitter @thefutureofFF. 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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April 13, 2022 | 7 Mins Read

Live Tour Paris Highlights

April 13, 2022 | 7 Mins Read

Live Tour Paris Highlights

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Sarah reports in from her travels with the three key topics discussed at the first Future of Field Service Live Tour stop in Paris.

Sarah Nicastro: Welcome to the Future of Field Service Podcast. I'm your host, Sarah Nicastro. I'm excited to be reporting to you that the Paris event just finished. We wrapped our first stop of the global live tour in Paris. The event went really, really well. And it was very exciting to see Future of Field Service come to life in the in-person forum. So I wanted to share some of the key takeaways with you all, and thought I would do a solo podcast this week to share some of the big topics of discussion. So I had four great speakers join; Jean, Roel, Jean-Claude, and Laurent. So thanks to you all for being a part of the event. I'm happy to have you there with me. And we had a great audience as well. There was a lot of discussion, and there were some key part that came out that I want to recap with you all.

Sarah Nicastro: We did record some of the content, and we are planning to make some of that available in its entirety in a bit. But in the meantime, just to share some of the content from the day, I thought I would just do a little recap. So I'm going to go through three key points that I think are very relevant that came up. The first is the talent gap, which I'm sure is no surprise to anyone because we talk about that a lot. And we all know it's a very big challenge. What was interesting about the conversation at the event is that the talent gap came up, not so much in what I would say is the typical sense, which is talking about how we modernize our recruiting, and hiring, and retention processes to make them more effective for today's landscape, but rather how we do need to do that..

Sarah Nicastro: But the conversation we had at the event was around how we marry that with different strategies and tools to offset what we need to do from the labor perspective. So part of that discussion was around making sure that we have connected assets, and we're leveraging data and insights, as well as automation to ease the burden on the frontline workforce. There was a huge conversation around remote service. And I did write an article about that specifically. That should be on the site that ran on Monday. And the conversation around remote service had a lot to do with the fact that that can really be one of the key ways that we navigate the issues that exist with talent by making sure that we are being smart about how we diagnose, resolve remotely when we can, but are more prepared for what we find when we go on site.

Sarah Nicastro: So, essentially making sure that we are maximizing the utilization of the resources we do have by not wasting their time. So that was an important point. The other thing that came up related to this topic from a strategy perspective is will we need to look differently at how we segment or categorize types of frontline workforce. So traditionally, you have a field technician and they're sort of a one size fits all type of person. And that's really the way the job's been built. As things change, what we talked about is do you segment that in a way where you have the technical worker who does the actual mechanical work? Do you have someone who is more responsible for the data and the insights? Someone who then is responsible for more of the relationship and the trusted advisor status?

Sarah Nicastro: So in the future, will there be more of a need to revisit how we look at those roles and break them out into different aspects? So that was the first, I think, really big topic of discussion. The second was around the fact that we need to realize, and I guess, evangelize that service transformation needs to be viewed as business transformation. So, in situations where it isn't, and we had some folks that shared openly about their challenges, those organizations are really seeing incremental improvement versus true innovation. Because the recognition of the opportunity that service presents just isn't there. And so, it really holds those organizations back from making the progress that they need to make.

Sarah Nicastro: So this has to do with a few things. I think the first is really leadership. It's an opportunity that needs to be recognized at the top for it to get the support that it needs. And we had a really big conversation that was very interesting around, how do we sell this? And a conversation about the historical way that a lot of companies do business, which is based heavily on short term results. And how do we, obviously, not ignore that, but allow space to innovate and look at more of a longer term payback. And so, I don't know that there was an easy answer that came out of this, but some folks did share things that they've done in terms of piloting innovation in a small area of the business to prove it's worth. And then look at scaling and expanding that.

Sarah Nicastro: Different strategies for looking at metrics that do emphasize, if not the opportunities that exist, the challenges that exist in service that help leadership understand the need to make a change, things like that. But I think that really we need to be, as an industry, looking at how do we explain, summarize, and sell the service proposition as a business proposition, not a service proposition. Because I think that's something that companies are getting hung up on. So that was the second big area of conversation. And the third was around people. And so, obviously, we talked a lot about technology. And we all know that technology is a very critical tool, certainly in the digital age. In the age of data and information, you really cannot do business today without making sure that you have a strong technological foundation. But everyone, I think, agrees that people need to come first in everything that we do.

Sarah Nicastro: And so, that is both customers as people, and our customers leading the change and the innovation that we're driving. And there was a good amount of discussion around that. Are we doing these things because we think they're what's needed, or we see others doing them? Or are we doing these things because they are going to help our customers solve business problems? So customer intimacy, and then the idea of change management and certainly employee engagement. That was a huge part of conversation related to the talent issue. Do our employees feel valued? Do they feel recognized? Does our frontline workforce feel as important to our organization as other titles? And so, that perspective, understanding what it is that today's talent wants, and are we changing the way we need to be able to give that?

Sarah Nicastro: We talked about career paths and opportunities for growth within the business, and a lot of those things. And then we had a conversation around the interaction between customers and the frontline workforce. And if the future of service, as we move towards civilization and outcomes, depends on companies achieving that trusted advisor status, then are we treating those employees like the valuable knowledge workers that they are? Are we making them feel valued and empowered to build and nurture those relationships? And giving them the upscaling they need to do that. And revisiting the roles to see if it makes sense to segment technicians who are capable and are interested in doing those things versus those who are not.

Sarah Nicastro: So all in all, people are still at the heart of what has very much become a technology business. And I think that's something that no one in the room will forget anytime soon. It was a big part of the discussion. So those are three of the main things that came out. You can stay tuned. I'll certainly be doing more coverage on the content from the event. And as I said, we did record the sessions and we do plan to, hopefully, share some of the content with you in its whole form. What we did was interview-based sessions, so a lot like live podcasts so they would be a perfect fit to share on this platform. So stay tuned for those.

Sarah Nicastro: In the meantime, this was the first of five cities on our tour. We have London coming up on May 5th, Frankfurt on May 19th, Stockholm, May 24th, and Austin, Texas on June 14th. So I would love for you to join us. The feedback on the event was very positive, which made me incredibly happy. And I am looking forward to great events in the upcoming cities. So if you haven't taken a look yet, you can find the agenda for each location and all of the information on registration by visiting the website and just looking under Live Tour. So thank you for listening, and stay tuned for more. And we hope to see you at an upcoming city soon. Visit the website at www.futureoffieldserviceref.ifs.com. You can also find us on LinkedIn, as well as Twitter @TheFutureOfFS. 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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April 6, 2022 | 23 Mins Read

TSIA on The State of Field Service in 2022

April 6, 2022 | 23 Mins Read

TSIA on The State of Field Service in 2022

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Sarah welcomes Vele Galovski, Vice President, Support and Field Services at TSIA for a conversation around the findings of his latest State of Field Service benchmark research.

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 state of field service in 2022. I'm excited to welcome to the podcast today, Vele Galovski, who is the Vice President of Support and Field Services at TSIA. Vele, welcome to the Future of Field Service Podcast.

Vele Galovski: All right, thanks, Sarah. Appreciate it.

Sarah Nicastro: Yeah, thanks for being here. So, before we get into our conversation today, tell our listeners a little bit about yourself, your background, your role at TSIA, that sort of thing.

Vele Galovski: Okay, great. I've been at TSIA, the Technology Services Industry Association for just about the last nine years. Which, crazy to think about that someone would keep me employed for that duration time. But what we do at TSIA is we help our members accelerate their revenue performance to help them scale, and help them with their profitability. And we do that through education, assessment of their performance with our benchmarking, we understand what drives those good performance metrics. So we get very prescriptive with our best practices. And then we also develop frameworks to help align organizations, and we're going to talk about that today. There's a lot of alignment necessary when you go through a transformation. So that's kind of what I do here.

Vele Galovski: My background, before I came here, I had 20 plus years of executive experience in companies large and small. I worked in companies as big as Bank of America and Xerox Business Services, and as small as some mid-stage startups selling cloud solutions to oil and gas industry. Just going up and down the oil patch. So, I've been on both ends of the company corporate spectrum, and I think the one thing that's in common with all of those positions is I've really helped to drive transformation. How do you change your business? What do you have to do differently? And we'll talk about it, it all starts with the customer. If the customer ain't happy, ain't nobody happy, right.

Sarah Nicastro: Mm-hmm (affirmative).

Vele Galovski: Align your company along those lines.

Sarah Nicastro: Great. Now, I'm sure a lot of our listeners are familiar with TSIA already, but if any aren't, who are the members?

Vele Galovski: It's a Who's Who in the industry. We got our start over 15 years ago in Enterprise IT. So, you can look at that and the cloud companies, we've got companies like Oracle, like Cisco, like Hewlett-Packard Inc, and Hewlett-Packard Enterprise as members. As well as some big cloud companies like Amazon, Salesforce, and so on. Now, probably about six, seven years ago, helped stand up the industrial equipment and healthcare technology verticals here at TSIA, because what we started to see was everything that was happening in tech, is now happening to industrial equipment companies.

Vele Galovski: This digital transformation is just rolling right through and disrupting every industry it hits. So, in those areas, we do have a bunch of instrumentation companies, like PerkinElmer, like Emerson, like Rockwell, and now TSIA has over 30% of our members from the industrial equipment and equipment manufacturing space. So everybody's full gear, in terms of "Boy, what does this mean for us and what do we have to do?"

Sarah Nicastro: Yeah, okay. Good, all right. So you recently released your State of Field Service 2022 Report, which is a lot of what we're going to talk about today, pulling some of the snippets from that. Before we really get into those specifics though, if you listen to what we're going to talk about today, if you look at the report, there's a lot of change at play right now. And so, I think there is... You and I have talked about the view that complacency is just not an option. So give your thoughts on why that is, and then we'll dig into some of those specifics.

Vele Galovski: Yeah, great question. I think everybody always believes that their business model is going to withstand forever, and just keep on moving ahead and make a good product. And that will change everything, that will rule the day. But, when everybody talks about digital transformation, the one topic that's always missed, I think in this discussion of digital transformation, is what we call democratization of the marketplace. So I'll use the auto industry in an example, I think we can all relate to it. Car companies, what do they like to do? Make, sell, and ship. Let's get cars, let's put new premium features in, and the dealers go out, and what do they want to do? They want to sell extended warranties, financing, rust protection here in the Northeast.

Vele Galovski: And when you look at it, what do customers want? Customers want to use that product to get from point A to point B. And so they end up buying a product, that when you really think about it, sits idle for 22 out of 24 hours a day. So, is that the best use of my capital? Is that the best way to do this? So now, out of nowhere, or out of a completely different place, come these ride sharing apps. Things that are focused on the customer need to get them quickly, easily, safely from point A to point B. And guess what, they don't care about building or selling cars. They don't have huge factories to keep in motion and supply chains and all that other stuff.

Vele Galovski: So what ends up happening is, an entirely new set of competitors comes into a marketplace. And if you just sit idle and wait, you're going to be surprised. And you're not looking in your rear view mirror, your side view mirror, you're not looking at all this. And the example's kind of abound, you've got Amazon doing prescription delivery. You've got Google getting involved in manufacturing execution systems. Once again, they don't care about making the pills. They don't care about making whatever in the assembly line, but they all care about, "How do I use data to inform better performance and to do stuff, that doesn't require all that CapEx, and the transfer of the asset."

Vele Galovski: So, I'd like to coin this idea of complacency in terms of a race. When everybody's a tech company today, will these other new entrants learn your industry faster than traditional OEMs learn technology and data? Who's going to win that race, and if you're complacent, you don't stand a chance. Right?

Sarah Nicastro: Yeah, that makes sense. And so these customer needs, and the way that they're being met in a lot of consumer ways, a lot of the things we have access to day in and day out, is one area that's sort of driving the shift in business model transformation. The other is digital, so digital is the enabler of transforming these traditional business models.

Sarah Nicastro: That being said, digital transformation is one of those things that is tough, because there's different definitions, there's all sorts of layers to it that really make it something easy to understand on paper, far harder to execute in real life. What are some of the things that you think make digital transformation harder in reality than it seems on paper?

Vele Galovski: Yeah, it's one of those things, every time I hear something like that, it makes me think of a Will Rogers quote, "It ain't what you don't know that hurts you, it's what you know that ain't so." And I think there's a lot of people out there that talk about digital transformation and think it's something that it's not really. But to your question, the idea of what makes it harder for specifically manufacturers, and it's hard for everybody, but for manufacturers, think about it, the technology is on site. So when a customer buys the asset, and they operate it on their facility, as a manufacturer, I don't know how it's being used. And didn't have feedback, and knowing what we have to do different is important. So not knowing how it's being used is challenging, and that's different as opposed to some cloud consumer type application that was built in the cloud.

Vele Galovski: The second related piece of that is that the technology's not connected. So the capability exists, we've been talking about smart connected products, sensors can really replicate the physical properties of that product. But only a third of the install base is actually connected, where you're getting meaningful telemetry coming back out of that. And so, that's another inhibiting factor that makes it a little bit more difficult.

Vele Galovski: And then the third thing that we see is that the technology was sold by the channel. And everybody uses the channel, which is a great thing to expand distribution, but who bought it? Where's it installed? Are they using it? Who's using it? Is it still there? And all those questions need to be answered, and without the telemetry, without the connectivity, it makes it really difficult.

Vele Galovski: And then I think, the last thing is focus. Many people, and this is where the Will Roger's quote comes in, they think that digital transformation is all about automating processes. And then everybody gets really disappointed that, "Man, what happened? I thought this was going to change my world. What's the deal here?" And so we felt like we had to redefine digital transformation. We needed a new definition out there, which we've introduced over the last few months.

Sarah Nicastro: Okay, so tell us about that, and what you refer to as the digital transformation north star.

Vele Galovski: Yeah, it was a couple of our conferences ago, we do a number of different sessions, and I had a coffee session with Frederic Godemel, the EVP of Power Systems at Schneider Electric. And during that session, I sprung the digital information north star on him, "Frederic, with this new data that you're able to collect today, with this new data I can X, and no longer have to do Y." And so one of the things that he really liked about this, and that we hopped on was from his perspective, they can now remotely monitor distribution systems, and collect that data. And as a result of that, they can provide reactive optimized performance and reliability recommendations, and they no longer have to put somebody on site to operate, and shut down, and lock out live electrical equipment, and do that to begin to assess the system.

Vele Galovski: So, by using this definition, instead of just making it easier to see what's in the panel box, what he's able to do now is eliminate the task completely, and to monitor it remotely. And to keep it safe, and to provide good recommendations. So this idea of a north star focused on eliminating completely, as opposed to just automating, I think is really what people have to begin to look at and say, "This is what digital transformation is not about. Not just speeding things up and showing me what's in the panel box faster."

Sarah Nicastro: Mm-hmm (affirmative) Yeah. So we say the term work smarter, not harder. This is working smarter, not faster, right? So using digital not just to move faster, but to look at what work can be eliminated, and how you can accomplish tasks differently.

Vele Galovski: Yeah, and I think that the other aspect is, when we do digital transformation in this manner, we're talking about eliminating tasks. We're not talking about eliminating people. What we want to do, is we want to use this to automate the mundane, why use people to do things that are so easily eliminated and provided, and let's use people to do things that only people can do. Build relationships, assess situations, provide some additional value add. If all we ever do is focus on the idea of, "Automate something, make it faster." We really haven't fixed the system, and I think you'll continue to be disappointed. So that's why we came up with that north star, that's what you got to look at.

Sarah Nicastro: Okay. And you break digital transformation into two waves, so tell us what those are and why you segment it that way.

Vele Galovski: Yeah, wave one is the old definition, and the old definition is very product focused. And I think it's an important stepping stone in the whole program. So when you think of wave one digital transformation, let's make it smart, let's capture the right things off of that piece of equipment. Let's make it so that we can collect the data, let's see if we can become predictive of what's going to happen, and can we prevent it? Can we take proactive steps? All of that is really important, but that's not the beginning and the end, it's very much the foundation that you're building off of. So we call that wave one. Important, lot of work, lot of investment, but it's only wave one.

Vele Galovski: Wave two, which is going to be the big deal, is how do we take that wave one capability, and turn it into a focus on improving the customer's business outcome? And so you got to move further and further away from your product, which is really hard for a lot of equipment manufacturers because that's all we ever focused on is the product. And now we're saying, "No, go beyond the product. How do you interact in the customer's workflow? How do you participate in the ecosystem? What skills, what knowledge do you have that can influence the ecosystem, and start to help them get more value out of your product and your company."

Vele Galovski: And get paid for it, we're not philanthropic organizations. We're nice people, but we don't do it because we're nice, we're doing it because we think it's the best way to make money.

Sarah Nicastro: Right, okay. That makes sense. Now, you have a book coming out around what you call digital hesitation. So I'm sure you don't want to give it all away because we want people to get the book, but give us an idea of what you mean by digital hesitation, and what purpose this book is going to serve.

Vele Galovski: Okay, well it comes out-

Sarah Nicastro: And apologies to everyone for my sniffles. I told Vele at the beginning I have a bit of a cold, so sorry if I'm sniffly on this episode.

Vele Galovski: No, not a problem. I'm glad we're able to continue on. So, the digital hesitation, it's really a play on digital transformation. It'll become really obvious on the cover, where we cross out the transformation piece and put the hesitation over it. Because everybody talks about digital transformation, they say they're doing it, but few are committing to it. They hesitate. So, the simplest view of digital hesitation is really a half-hearted attempt at transformation. So that's kind of what we're positing out there. And if you really think about it, if we were to tell you that 40% of company revenue was being wasted by not fully committing, would you do it differently? Would you fully commit?

Vele Galovski: And if you think about it, we've got all these organizations very well established, and because of our half-hearted attempts... We create customer success organizations to help customers use the product. We need support organizations, which 36% of every case that comes in to support is, "How to use the product that we just bought." We have field service organizations that have to go on site to figure out what's wrong with the product before we can fix it, just to get to level.

Vele Galovski: And if you were to look at it and say, "Man, I'm spending 40% of every dollar that I earn propping this stuff up," would you hesitate? Or would you say, "Man, maybe I got to look at this a little bit differently." And that's what the book is about, the book is calling these items out, and then going into every single part of that digital customer experience to look at what can we do differently. How do we change from go to market, to onboarding, value realization, all the way through to renewal and expansion. So it really looks across the whole thing.

Sarah Nicastro: Now, would you say that digital hesitation... What you see happening is more companies committing to wave one and not wave two, or hesitating altogether?

Vele Galovski: I think everybody dips their toes in to wave one. Everybody does it, but the lack of vision going forward hamstrings a lot of these companies. I don't know, tell me a company that doesn't have some type of sensor on their product, right? There used to be a lot of dumb pieces of equipment out there, dumb meaning it stands by itself and it does its thing. Everybody's got sensors, even a car. I use that example again, a car has more lines of code than a Dreamliner now. Everything's loaded up, so everybody's kind of engaging in it, but they do hesitate. They stop short because it's like, "Well, how big does this thing get. What do we do with it?" And that's what we want to do, is just expand the definition and the thinking to go where the customer is ultimately going to pull you.

Sarah Nicastro: Yeah. Now, I know this is a loaded question, but if you look at what will it take to eliminate that hesitation, and to help companies see the wave two vision, and make more progress in converting digital transformation efforts into business model change and revenue growth... Because I think one issue I see though, is that people confuse the two. People think that just through digital transformation, they are changing their business model.

Sarah Nicastro: And the reality is it gives you the ability to do it, but it doesn't do it for you. And that's where I think people get stuck, because, like you said, they're, "Well wait, we connected all of this stuff. We have this data, why didn't it change the world?" And then it's like, "Oh, there's this whole other set of change that has to occur." So, what is it that's going to get more organizations to see the potential of going all-in on wave two?

Vele Galovski: I think, fundamentally its leaders have to lead, and you have to look at it. And it's hard, because if I've spent my entire career making it up to the C-Suite because I'm the best CapEx product seller, product development engineering manager out there, now all of a sudden I get here and you're telling me the rules have changed? Wait a minute here, I only got three years to go, I got five years to go. Whatever, I'm going to ride this one out.

Vele Galovski: So first of all, it does take leadership because this is a company-wide thing. I think another piece is you got to commit. You can go back to the Iliad, burn the boats. You can go back to Sun Tzu, knock down the bridge, force your folks to change and to make that happen. And so that's another way. And then I think, unfortunately, some places are just going to fail. You're going to have some big failures out there that may encourage other people to move.

Vele Galovski: So, some of those are things that have to happen. And what we try to do in the upcoming book, Digital Hesitation, is really to talk about some of these factors, and really just articulate it that says, "You got to lead, you got to burn the bridges and the boats." And don't be on the heap of history, "Congratulations, you got there, but are you going to be the one who drove him under, or are you going to be the one that saved the place?"

Sarah Nicastro: Right. I think the point you made saying, "This is a company-wide thing," that's a very important point, because what I see with the people I interview is unfortunately, there's a lot of organizations that are approaching this in a very siloed manner. It's the service function that is trying to drive this change, and it just doesn't work. It doesn't work, unless you're talking about acknowledgement of the overall identity of the business, the value proposition that the company's customers want, and a cohesive look at what it takes to get there.

Sarah Nicastro: And so I think that that's definitely one of the biggest challenges that I see play out time and time again, is there's pockets of really innovative thinking, and change-ready folks, but they're fighting against legacy that maybe doesn't see it at the top. And that has the change too.

Vele Galovski: Just a quick comment on that, I see one of my unofficial charters, at TSIA, is to help these field and support organizations be meaningful contributors at the corporate table. And to give them the data, and the confidence, and the backing to say, "This is what we're doing, and this is what you're asking me to do. And these are the things that have to come into play." So, without that, a lot of people rightfully struggle. We've talked about it, we've seen it in the past, this idea of people have talked about shift left for a dozen years. And so the reason I got on this particular unstated mission was a guy comes to me and says, "Okay, I've been tasked to eliminate 40% of my dispatches in the next year and a half."

Vele Galovski: Because the CFO did a spreadsheet exercise and says, "Wow, dispatching on site with a spare part is really expensive. I want to do that remotely." And I'm like, "Oh, okay, great." Well to shift left, I go, "What percent of your install base is actually connected, and giving you telemetry so that you can resolve it remotely?" 2%. I'm like, "Dude, you better update your resume, because you're not going to make that goal."

Vele Galovski: And that's sad because, I think a lot of field and support people really put their heart into it, and want to do the right thing. But it's a matter of, "Hey, if we're not connected, and we're not doing this the right way, this is not all on my shoulders." And that's why it's important to get the whole picture out there.

Sarah Nicastro: Yeah. Now that being said, what is the role of field service in all of this?

Vele Galovski: I've put it out there that says, sooner or later the industry is going to figure out that I need service revenue. Sooner or later. So, who are the people who know the customer better than anybody else in the company? Field service. They go on site, they've seen good implementations, they've seen bad implementations. They know who uses the product well, who doesn't, and what really works. So what I tell field service organizations, I said, "Get ready, because you know, this is going to happen."

Vele Galovski: There's going to be this balancing act of utilization versus the service levels, and what are you going to do when you're on site? Are you going to get in, get out, get to the next job? Or are you going to fix the problem, but then start adding value when you're in there? These are capabilities that need to get implemented right away. Make it okay for people to do that adoption and expansion when on site, give them the skill sets that are not only technical, but are looking at the process, because we want to influence the business outcome. Give them some of those skills, teach them what it means to uncover leads, to build relationships.

Vele Galovski: All those things have to happen, expanding beyond that core charter of fix stuff. And when you start to build those capabilities into that charter, people are going to say, "Oh my God, this is what we have to do. Who can help me?" And they're going to look around and the only person that's going to know what's happened is that field service person. That manager or that leader, and they're going to say, "I'm the pedal to put to the floor, I got that."

Sarah Nicastro: Yeah. Now, can you give folks sort of a high level overview of your Field Service Maturity Model?

Vele Galovski: Yeah, sure. One of the recognitions that we all have in field service, we don't have infinite resources. We can't focus on everything all the time, so what we do at TSIA, we help them focus their scarce resources with our benchmarking process. And that benchmarking process is looking at not only your performance, we put that on the Y axis, and we say, "How are you objectively performing against the industry?" And then and we also along the X axis, look at what's your adherence to industry best practices? Just like any good consulting organization, you got to have a two-by-two.

Vele Galovski: So as an example, if I have high performance and I'm in the upper-left hand quadrant, but low adoption of best practices, this means I'm getting good results, but it's probably going to be pretty hard to scale. And maybe we're getting it just out of pure effort coming out of those engineers, and it's going to be hard to do that. So our recommendations is we look at the performance that you want to maintain, and we start to show, "Hey, these are the industry best practices that will maintain that performance, and help you improve at scale." So, that's a theoretical discussion. As an example, in that upper left-hand quadrant, those are the people that have great customer satisfaction. People are doing a wonderful job, in spite of poor product performance, in spite of not knowing what's happening until you get out there. So those companies in that upper left-hand quadrant, don't regular have formal input into the product team on serviceability.

Vele Galovski: Those percentages are so much lower. So they're doing well, but they're not getting any help. The companies that move over into that upper right-hand quadrant, meaning they're adopting certain practices and still maintaining those results and can scale, those are the companies that, as an example, have formal input to the product team on serviceability. What were the causes of all these break fixed incidents? How can we do reliability? What should we be monitoring? Here are things that work well, if we can incorporate these data streams into our product, we can do X, Y, and Z. So that's what we look at when we do that type of assessment, and say, "Okay, good performance. You can scale doing these things because you're not doing them today."

Sarah Nicastro: Right. Which really is representative of service being better incorporated into the overall business strategy, business decision making, business operations. And so it's similarly representative of the need to ensure you're not having that function operating in a silo, right? So that's interesting. So-

Vele Galovski: I got a bunch of these little things, Sarah, as you know. But I talked about being a contributing member on the corporate table. And someone told me this a long time ago, and I never forgot it. And they said, "You have to be at the corporate table. Field service has to be at the corporate table because, if you're not at the table, you're on the menu."

Vele Galovski: I think you can fit it in with exactly what you just said, that if you're not given this feedback, if you're not part of this whole enterprise approach, guess who's going to get blamed for poor uptime? Guess who's going to get blamed for bad satisfaction? Guess who's going to get blamed for that? You're on the menu, and it doesn't work that way. We all have to work on this together, and that's a great example of what I mean by being a contributing member at the corporate table.

Sarah Nicastro: Yeah, that makes sense. Now, over the next 12 to 18 months, what are some of the of biggest... I don't know, I don't really love predictions. But what are some of the most interesting things you think we're going to see in field service over the next 12 or 18 months?

Vele Galovski: I think that what you're going to see, and I use like Enterprise IT to be a predictor of future because they've been dealing with this for about six to eight years. And now a lot of the manufacturers and everybody else are starting to deal with this today. And so what's going to start to happen, I believe, are time and material engagements are going to hit the road. It's too hard to do cost plus, it's too hard to scope out how many people you need, it's too hard to predict what's going to happen with the revenue, and so on. So I see time and materials, which have essentially disappeared from enterprise tech, also going away from industrial equipment, healthcare, even though a lot of people use it today.

Vele Galovski: That's going to shift from time and material contracts to annual recurring revenue contracts, things like here's a support and maintenance contract where I'm going to guarantee resolution time. Not response time, but resolution time, that's another trend that's going to start to change. And then customers, we see hints at this today, they're going to start putting clawbacks into contracts. It's like, "Wait a minute, you promised me this, and if you don't hit that level, we're going to start the clawback."

Vele Galovski: We're just going to put more pressure on the enterprise to get to connected, to get really good at what they're doing. So over the next 18 months I see less time and material. Oh, by the way, who wants to play in that space, anyways? Because anybody with a tool pouch plays in that space, and it's hard to maintain the margins people want. So I see time and material going away, I see more annual recurring revenue type contracts coming in. I see focus on resolution time, instead of response time, i.e. closer to business outcomes. And, I think that there's going to be more and more penalty clauses and clawbacks for lack of performance there. So if you think of that, it's a lot of pressure, right?

Sarah Nicastro: Yeah, yes it is. And that's what makes our jobs interesting. So, that's-

Vele Galovski: And I thank you for bringing it up to everybody. 

Sarah Nicastro: Yeah, it is a lot of pressure, but like we said at the beginning it's not really optional anymore. All right, so, last thing is I want to have you tell folks you have a live event happening in May. So tell our listeners where it is, when it is, how they can find more information so that they can check that out.

Vele Galovski: Everything you want to know is at TSIA.com. You can look at the conference tab there, everything is there. It's going to be in Orlando, May 16th through the 18th. It's going to be an in-person and hybrid event, we did our first in-person event in October in over two years, and we did that in Las Vegas. That was also hybrid, so we felt that this is a good model. COVID's changed everything, so we've adapted. And we're going to be doing that as well here in May. I referenced Frederic Godemel from Schneider Electric, he's on the main stage for us this year. Talking about that digital transformation, and what they need to do, or what they have done within a traditional equipment manufacturer. Well over a hundred years old, what have they done to transform?

Vele Galovski: So, that's going to be a great talk. And then we're going to have what we call pathways, seven pathways that you can register for and attend things on, like digital customer experience. How do you accelerate annual recurring revenue? How do you navigate the transformation? So, it's a great event, we're expecting over 1,000 people in-person at Marriott World Center in Orlando. So we're excited about the event. I'm excited because it's on the East Coast, and I'm excited because I love Disney world.

Sarah Nicastro: Yeah, there you go. That sounds good. So everyone that isn't already engaged with TSIA's content, you can find all of that, like Vele said at TSIA.com. You can check out the State of Field Services Report, you can find blogs that Vele and his team write, different research that you can take a look through, and information about the event in Orlando in May. So, that's excellent. Well Vele thank you for coming, and spending some time with me today. I appreciate it.

Vele Galovski: Yeah, thanks for having me, Sarah. And I hope you feel better, I couldn't tell.

Sarah Nicastro: Well, good. It's nothing major, I wanted people to know that if they heard a lot of sniffles, it was just my little cold, so all as well. All right, so thank you again. I appreciate you being here with me.

Vele Galovski: Thanks, Sarah. Take care.

Sarah Nicastro: You can find more by visiting us at futureoffieldserviceref.ifs.com. You can also find us on LinkedIn, as well as Twitter @TheFutureOfFS. 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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March 30, 2022 | 22 Mins Read

Leadership Through the Lens of a Two-Star General

March 30, 2022 | 22 Mins Read

Leadership Through the Lens of a Two-Star General

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Sarah welcomes General Brent Baker, a retired two-star general with US Air Force who recently published a book on leadership with a collection of personal experiences over his 37-year USAF career who also currently leads PTC’s Federal, Aerospace and Defense business unit.

Sarah Nicastro: Welcome to the Future of Field Service podcast. I'm your host, Sarah Nicastro. Today, we're going to be taking a look at leadership through the lens of a Two-Star General. I'm excited to welcome to the podcast today, General Brent Baker, who is a retired Two-Star General with the U.S Air Force. He recently published a book on leadership with a collection of personal experiences over his 37 year United States Air Force career. And he also currently leads PTC’s Federal Aerospace and Defense business unit. General Baker, welcome to the Future of Field Service podcast.

Brent Baker: Thank you, Sarah. It's really my pleasure to be here. It's exciting.

Sarah Nicastro: Yes, I'm excited to have you. Okay. So I got approval on this beforehand and I'm going to switch to calling you Brent. So I just want to throw that out there for the listeners that I okayed that.

Brent Baker: Perfect.

Sarah Nicastro: So, Brent, tell us a little bit more about your journey and how that led itself to this new book.

Brent Baker: Sure. Well, I really come from a military family. My father served, I had uncles who served, so I always kind of thought I would end up joining the military and serving my country and I did. So right after high school, I joined United States Air Force. I spent six years as an enlisted member. Then I went to officer training school and became an officer and spent 31 years really doing all things logistics for the Air Force. And I was very blessed and fortunate.

Brent Baker: I was promoted along the way and actually made the rank of Major General. So when you're an enlisted member and become an officer that term is called a mustang, and it's fairly rare to have a mustang officer. And then for those that to make general officer, I think it's even rarer. I don't know that exact percentage, but it's a very small percentage. So I was just really blessed to have an amazing Air Force career. I was a seven-time and commander of different organizations from small units to very large units. I spent a lot of time throughout the country, overseas. Moved 27 times in 37 years. So we did a lot of moving, but it was really a wonderful Air Force career. And then I just transitioned into the private sector as you mentioned, working for PTC, doing really all kinds of the latest technology and software.

Sarah Nicastro: Okay. So I guess before we even get into the questions that I had planned, how long ago was that transition into the public sector?

Brent Baker: So I've been, I transitioned out of the Air Force little, it's almost seven years. It'll be seven years this summer.

Sarah Nicastro: Okay. So how would you describe the biggest differences in leadership between the military and the public sector?

Brent Baker: Well, that's actually a wonderful question because before you leave the service, I don't think it's just the Air Force, you hear this in different services. You kind of hear all these horror stories. "Oh, it's dog eat dog in the private sector." And the only thing that matters is making the almighty dollar. But I will tell you, that has not been my experience. I've actually worked, I just did some consulting for a company that I worked with PTC, and it's been in a good way, very surprising how ethical these companies are and how much teamwork matters. And so my transition has actually been fairly easy because I feel like the companies that I've worked for, they're very similar to the Air Force when you talk about being honest, and doing what's right, and the importance of teamwork. So it's been about six years or so, but it really doesn't feel that much different to me to be quite honest.

Sarah Nicastro: You know, it's so funny how of course we all have our preconceived notions. Anyone that says they don't is lying. And it's, that wasn't the answer I was expecting. And the reason is because, now don't get me wrong, of course I would expect that things like integrity and honesty would be a part of the military experience. But to be quite honest, when you said that the impression in the military is that the private sector is more dog eat dog, I would think the opposite. Like I would think that the military experience is very harsh and hard and that's probably because of the perception that's created around a lot of it, but I think that's really interesting. That just wasn't the answer I was expecting.

Sarah Nicastro: So I think we'll talk about that a little bit more as we go, because we're going to talk a little bit about some of the experiences you had with leaders in the military and some of the experiences you had as a leader. And then we can also talk about what that's looked like since you've been on the outside. So when you think about your journey and you think of examples of leaders who had a very positive impact on you, what was it about their leadership styles, or traits, or tactics that left such a lasting impression?

Brent Baker: Well, I think one key characteristic is, I was really always drawn to those folks that I feel like lead by example. They don't just say a bunch of words, "Hey, here's some expectations" and they go do the opposite. I think I was really kind of drawn the leaders that would give you that speech, if you will, here's what we're going to do that then did it themselves. I've had a variety of leaders, commanders, and bosses throughout my years. And they're all very, they're all different, really is night and day. But I think that's one really, attribute, I would say is like this leading by example. A great example is, or another great attribute I look for, I think was kind of drawn to, is those folks that really took care of their people. A lot of leaders that say, "Oh yeah I care about my people. I want to take care of them." And then they don't necessarily do that.

Brent Baker: The leaders that I really tried to emulate, if you will, is the ones that really worked hard to take care of their people. I was very fortunate. I had some amazing bosses throughout my career that really helped me to get to where I ended up. That would've never happened without them, like putting me in for special awards or, recognize me with a decoration, or things like that. And that just showed me that's what I needed to do for my people. And so those are just really a couple examples of things I just noticed. Really in great leaders. And that's either in the Air Force or in the private sector side.

Sarah Nicastro: And I think what you're describing and even going back to the first question I asked just about your journey, you said a couple of times how fortunate you've been. And I think it's really important when someone can reflect on what they've achieved and recognize that it isn't a solitary effort. Okay. So the reality is, there are a lot of people that work hard, that for a variety of reasons, don't achieve certain goals, or objectives, or statuses, or what have you. And I think it's important to acknowledge that. I also think it's indicative of the type of character that makes for a strong leader, because there's this recognition that you can't do it alone. Right? And so when you talk about the attribute of the leaders you most admired, took care of their people, I think it's because really good leaders recognize that they really aren't that great on their own.

Sarah Nicastro: They are as strong as the sum of their parts, right? And so the more they recognize, and value, and nurture their teams, the better they become. It's the ones who are kind of self-centered and power hungry, who you feel bad when you work for them because you hear them talk about an accomplishment and they never mention the 20 people that helped them achieve that accomplishment. I mean, those are the opposite of what you're referring to. And I'm not exactly sure what adjectives you would use to describe those differences, but I do absolutely agree with you that one of the strongest leadership traits of today is this idea of taking the focus off of you and sharing that with the people that are on your team. So.

Brent Baker: Sarah, I agree a hundred percent. A matter of fact, one of the key, I would say one of the lines that kind of flows throughout my book is this idea of servant leadership. Some folks think you're the leader, you're on top. Everybody's serving you. And really the view is really kind of the opposite. Yes, you are the leader, but you're responsible for all these people. And part of your success is making sure they're successful. And so it's kind of taking that old mentality of, I'm in charge, I'm the leader, I'm due everything. Kind of switching that around and say, you're very fortunate, you're very blessed to be the leader. How are you taking care of the mission? How are you taking care of the people? It's just a different mindset. And that's one of the themes that I've tried to weave throughout my book. And the other one is, I think we're all leaders. I tell folks all the time, everybody has a leadership role. You may not consider yourself a leader, but you're leading someone whether it's a church, or a sports program, or your family. And so I tried to really kind of weave that theme in there as well. It's like, everyone's a leader and it's very important that you understand that.

Sarah Nicastro: Mm-hmm (affirmative) You know, going back to the servant leadership thing, I think that's a really good point, but I would say, here's a comment. I want to see if you agree with this. I think servant leadership is important. I think there are a growing percentage of leaders who kind of embrace that mentality because they genuinely want to have a positive impact on people's lives. Okay. But let's take altruism out of the equation. Okay. And let's just look at it in terms of profit and loss, hitting goals, achieving objectives. There's also a reality that anything but servant leadership, anything, but building up teams is a recipe for failure today. And I think that's the nature of the digital age. I mean, the fact that business is not today what it was 20 or 30 years ago. The pace of change is so fast. The amount of data and volume of decision making and the diversity and skill sets that a company needs to be successful.

Sarah Nicastro: The idea of being like the one at the top, it's an impossible goal to have anymore. Which is why the leaders that are most successful are the ones who can curate the best team of talent and then empower that talent to do what it is they're good at. And I think the acknowledgement of that is kind of looking at the role servant leadership can play in helping your organization be successful. That's not to say, don't do it for the right reason. Do you know what I mean? Or do it because it's the right thing to do. But I'm just saying that, this old mentality of dog eat dog and do whatever it takes, at all costs, drive hard, treat people like lines on a spreadsheet type of thing, right. It just is not conducive to thriving in today's ecosystem. So I think there's something to be said too about acknowledging the fact that this idea of servant leadership is really a tool to help you grow your bottom line at the end of the day.

Brent Baker: No, I agree. I think you're talking a little bit about situational leadership as well. I think you really understand those folks that you read. There are times when you have to be very directive. Like if you're in a major crisis, I mean obviously, you have to be very directive in nature, but for the most part, I think you're exactly right. Folks have changed throughout time. Technology has changed. People do a lot more today than they've ever had to do. And I think a successful leader is one that's really understands that and is really a good team builder, that's able to be really good and effective teams. I think you'll get a lot more out of your team if you will, when you operate and lead that way.

Sarah Nicastro: Yeah. Okay. So I asked you about the traits of the leaders that stand out in your mind. When you think about your own leadership, what characteristics or moments are you most proud of?

Brent Baker: Well, some of the moments I'm really proud of is, I talk a little bit about leading by example. I would say that's probably my strategy for leadership. I didn't really ask anyone to do anything that I hadn't done or wasn't doing at the time. Examples, Air Force implemented a new physical training program, if you will. And I was one of the first people to go out, really embrace it, and lead teams, and make sure that people weren't struggling, were able to pass the new PT test. So I've always tried to do that in everything I've done. The other thing I've really worked hard on is communication. And that's another key part I've got in my book about the importance of communication, because I think it's one of the toughest things we do. I mean, we've all played that telephone game where you start a conversation at one end of the room and by the other end, the message has completely changed.

Brent Baker: And I really worked hard on to communicate my message and the proper message. And sometimes I had very large organizations and so I had to be very creative how I did that. And then the other one I would just say is kind of the power of being positive. Which I really learned from my wife. She's a very positive person and I wasn't always positive in my life. And I started kind of, again, looking at her leadership style and I quickly realize that it's really, very powerful, this powerful of being positive. And so I started using that in my leadership style as well. So those are some of the things I'm really proud of. That I was able to be the leader and I think most people really enjoyed working with me. And so those are maybe two or three of the really big ones.

Sarah Nicastro: Okay. Now you said you feel like everyone needs to recognize that they're a leader in some way. Okay. However, that doesn't necessarily mean everyone's a good leader. Right?

Brent Baker: Right.

Sarah Nicastro: So if you think about good leaders, like really good, great leaders, do you feel like those leaders are born or made?

Brent Baker: I've really thought a lot about that. And I even addressed that in my book and I really think it's a combination. I do believe there are some people that are just born with natural leadership traits that may, or conducive to leadership. But having said that, even if you don't have those inherit or born skills, I personally believe you can still be a great leader. And so, to me, it's a combination of both these, kind of what you're born with and then also being a great student of leadership. And that's another reason I really felt compelled to take the time to write this book because one thing I tried to do throughout my life and career, is really look for those good and bad leadership examples and to really learn from those. And then I also did a lot of reading. If I could find a leadership book, I would read it.

Brent Baker: And I really tried to make myself a student of leadership throughout my life and my career. And I would also say, even if you're born with those traits that make you a great leader, as we've already discussed, leadership is very situational. Times change. Technology changes. And so to me, if you're going to continue to hone your skill, you got to constantly be a student of that skill, whatever that is. In this case, we're talking leadership. That's why I think it's so important to constantly read and to be a lifelong student of leadership.

Sarah Nicastro: Yeah. I think that's a really good point. And I would say, the part that people are born with probably is more related to personality. Right. Because I mean, you're not necessarily born with any skills. I mean, you learn those. Right. And from experience. Right. But I think there are people that have certain personality characteristics that maybe make them either, A, more inclined to lead well, and then B, more magnetic where people are drawn to them. Right. And so, but what's interesting, we had an author on the podcast a few months ago, Jack Wiley. And he gave me a statistic from his research. I want to say it was around 70%. I might be off by a percentage point, but it's 70% of leaders have not had any formal training. And so it's interesting because there was a book written in, I think it was 1969, The Peter Principle, I don't know if you're familiar with it.

Brent Baker: Yes.

Sarah Nicastro: But essentially, the Peter principle is for those that aren't this idea that leaders are advanced and promoted to their level of incompetence. Meaning, you do such a good job in a role that you get promoted until at some point you're promoted into a role you're not competent to do. Right. And so I think this point that you're making about being a student of leadership is so very, very important because I think it is a bit different then kind of the older thinking of, "Okay, well, I've achieved this level and now I've earned it or I'm worthy of it, and now I just maintain it." Right. I don't think that that's the way to do it. And I think this idea of being aware that people change, times change, technology change, as you said, and making sure that you're investing in yourself as a leader is super, super important.

Brent Baker: It's a wonderful point. And I'm familiar with the Peter principle. I've heard it throughout my career. And I was always one of those folks where I never wanted to be an example of the Peter principle, if you will. And so to me, that student to leadership is kind of how I summarized that. I've got another part in the book where I talk about learn, grow, move. Because I think another way to make sure that doesn't happen or help prevent it is like once you become skilled in an area and you've really learned it, it's time to move. Some people are really comfortable in a job and they do it for years. But then when you do get promoted, you have to have a new skill set. So I see that as a student of leadership is, once you've kind of learned or mastered an area as best you can, you can't always control that, but the idea is, as soon as you can go do something new, that's the way to do it.

Brent Baker: And just a quick example. So, when I become the Vice Commander of Air Force Materiel Command, that was probably my largest command, if you will. Thousands of people, hundreds of millions, actually, I think billions of dollars. And I found myself pleasantly surprised that I was actually well prepared for that. I think it's because I had been a commander, I'd moved so many times, I'd done several different bases that was inside that command. And so my point is, I think being a student of leadership, that's the mentality that you have to have, that you've always learned, grow, moved. You got to learn more, you got to understand how people think and operate today. And that'll help hopefully make you avoid the Peter principle where you're always ready to lead.

Sarah Nicastro: Mm-hmm (affirmative) Yeah. So we talked about leading by example. We talked about treating people well. We talked about communication. Is there anything else that comes to mind when you think about leadership traits that are timeless?

Brent Baker: I think, and again, I want to just emphasize, that's really what I try to do in the book is really write something I think are timeless. I even put a small thing in there about email management. I'm not sure that's timeless. We'll probably have email forever, I guess. But the point is, I really tried to write this where these leadership examples and tips that I provide, I think are timeless and I really wanted to make them reflective and not prescriptive. And what I mean by that is, I want people to be able say like, "Well, what is my leadership style? How do I communicate? Am I positive person? Am I negative?" But just some simple things in here about the importance of being a mentor. I don't think that will change. I mean, people are always looking to those they work with and work for. How can they learn from it?

Brent Baker: I think being a mentor is really important. And one point I make in this book is, try to mentor those with a vision. They kind of know what they want to do in life. I was very big on that. Again, I think we talked about taking care of your folks. I don't think that changes. Throughout the years, I think that's going to be a very important principle. Expectations. One chapter I have in there is about setting expectations upfront. Again, I don't think that'll change. I think that's very important. So people understand who you are.

Brent Baker: One thing I always did when I took over unit, I would set expectations upfront. I would tell them about my leadership style because I wanted them to understand really who I was upfront. One thing I would say that I think has changed as a result of technology and I don't think it really should, but as a leader, I think you have to make tough decisions. And I think that's one maybe skill set as in leadership we've lost today. Because it's easy with technology just to push, just keep pushing the idea of the decision up to the next level because it's so easy today with advancement of technology. But to me, a leader has to make the tough calls, has to make the tough decisions. I think that's part of being a leader.

Sarah Nicastro: Mm-hmm (affirmative) Okay. Now, if you think about where you started and some of the leadership experiences you had early on, and then what all of this looks like today, are there characteristics or behaviors or tactics that are, I guess newer, or maybe weren't necessary at one point that had become more so today. Like is there anything different then the traits you consider timeless, that you think are important for folks to be thinking about today?

Brent Baker: Well, I think one that's, maybe a couple comes in my mind. One, is the power of technology. We've kind of discussed that, that's kind of been woven throughout our discussion, but technology and I work with technology today, I'm just constantly surprised at how fast technology is changing. With the invention, like the internet of things, augmented reality, virtual reality, remote service. I mean, we're so connected with phones, and iPads, and computers. To me, you can never get away from this technology. So I think that's one that as leaders, we really figure out. We have to figure out how to use it, to embrace it, and to make it work for us in a positive manner. A great example, for years the Air Force kind of tried to stay away from things like Facebook, and Twitter, and things like that.

Brent Baker: And looking back, that was probably a wrong decision because to me, that's what folks use today. So we need to figure out how to embrace it. So my point is, I think we got to figure out how to really embrace technology. And the other thing too, I think we have to look at the folks that we lead. How, what they respond to. My early generation, somebody they just told us "Hey, go out and do something." We just did it. They told us to do it. But you know, the young folks don't operate like that today. They want to understand why they're doing it, how it fits the mission, how it impacts the environment. I mean, I think they're bigger thinkers. And to me, you have to really be able to understand that if you want an effective leader.

Sarah Nicastro: Yeah, yeah. I mean, there's more power in understanding it than there is ignoring it or hoping it'll change. Do you know what I mean? Like its, avoidance is not necessarily a good strategy. Okay. So you talked about being a student of leadership and continuing to learn and to grow. And I think that's super important, but I think that requires two parts in my mind. One is inspiration. Right. So, and the other is information. But I think with one, or if you only focus on one or the other, you're lacking something. Right. Because I think to your point, this idea of being positive. Right. And that can look different for different people. It's not about being fake or being a cheerleader, but it's about recognizing the fact that people look up to you and what tone are you setting type of thing.

Sarah Nicastro: I think particularly if you look at, I'm sure some hard circumstances you faced in the Air Force and you look at the fact that we've been in the midst of a pandemic for the last couple of years, there are times where that's not easy to do. And so that's where I think inspiration comes in. And then information in the sense of really learning those new skills, or methodologies, philosophies, the things that are going to help keep you up to speed. So how have you tackled this? What sources of inspiration or information have you found most helpful over the course of your career?

Brent Baker: Well, I think my inspiration really comes from a lot of different areas. And what I mean by that is, I always try to look for really good leadership and emulate that. So that's been the inspiration for me. And I mentioned it earlier, I think you can find that in all walks of life, all different genres. I think you can look for that. And that's one thing that's really inspired me, and I've tried to do the same thing. I've tried to encourage people to really look around for those amazing leaders, amazing leadership models, how did those folks inspire you. Or sometimes we learn more, I hate to say this, but from the negative examples, maybe there was somebody that did not inspire you, or made you feel bad about yourself, or maybe they were a toxic leader, things like that.

Brent Baker: I think you can learn a lot from that. And that can inspire you not to be like that. And the other thing, I've always encouraged folks to learn as much as they can. Read a variety of books. History. Read leadership books. Read whatever interests you, but really try to, even if you're not going to school, really try to expand your knowledge-base. Because, and there's one point I'm make in the book, as you become a really, a very senior leader, you have less time to be inspired, to read, to do all those things. You got to do that to me, as you're up and coming. And I use a diagram of an hourglass, because once you kind of go through the hourglass, that time you had to learn, and grow, and be inspired, now you're the senior leader. You don't have that time. I think there are folks that wait, maybe very late in life to try to learn some of this and it's really too late.

Sarah Nicastro: Okay. So any other words of wisdom for people related to leadership?

Brent Baker: Well, we talked a little bit about my book. I hope folks will pick it up. And I really want to tell you my motivation for writing the book was, I've been a student of leadership throughout my life and careers, I mentioned earlier. And I wanted to get my thoughts down on paper and I hope people will pick it up and read it. I've got 50 leadership tips in there. I've got 25 different chapters. I think it's very easy to read. I try to use a lot of good examples, a few bad examples woven in to give... And again, I wrote to be reflective. Not necessarily prescriptive. But I would say if you're a student of leadership, even if it's not my book, just continue to reach out, to find things like that, to continue to reach, continue to grow. Don't be afraid to take chances. I think being a good leader, once in a while, you have to take some chances. It's not cut and perfectly dry. Sometimes you have to take chances. And I think to be a good leader, you have to do that as well.

Sarah Nicastro: Yeah. Good. All right. So the book is called, Orders from the General. And where can folks find the book?

Brent Baker: Well, you can find it several places. So it's actually on my website, which is, hbrentbakersr.com. You can find it at the publisher, which is X Libras, X-L-I-B-R-I-S.com. And you can also find it on Amazon and Barnes and Noble. And so, yeah again, I'd love for people to go out. And I want you to know my motivation is not to make money. My real motivation is, I hope people pick it up, and inspired by it, pass it along to somebody else. Keep it in their leadership library, refer to it now and then, and that would just really make me thrilled. Because that again, that was my motivation for producing it.

Sarah Nicastro: All right. Okay. General Baker. Well, I appreciate that. Everyone go check out the book. Thank you very much for coming and talking with me today.

Brent Baker: My pleasure, Sarah. Thanks so much. Wonderful interview. Thank you.

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

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March 23, 2022 | 30 Mins Read

The Fine Art of Problem Solving

March 23, 2022 | 30 Mins Read

The Fine Art of Problem Solving

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Sarah welcomes Amy Herman, a New York Times Best-Selling attorney, former Frick Collection Head of Education and art historian. The FBI, NYPD, Navy Seals, and Fortune 500 companies, among others, have hired her to help them solve problems. She has a TED talk titled “A Lesson in Looking,” and published a new book in December of 2021 titled, “Fixed: How to Perfect the Fine Art of Problem Solving,” and she shares an interesting perspective on a fresh way to approach problem solving.

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 fine art of problem solving. We all have our fair share of challenges that we are up against. And we talk a lot on future of field service about how leaders need to work on harnessing their own creativity and look for different ways to achieve the innovation they need to in an industry that is changing so rapidly.

Sarah Nicastro: So I'm thrilled to welcome to the podcast today Amy Herman, who is a New York times best selling former Frick collection, head of education and art historian. She has worked with the FBI, the NYPD, Navy Seals, and a number of Fortune 500 companies, among others, who have hired her to help them solve their problems. She has a Ted talk titled a lesson in looking and published a new book in December of 2021, titled, Fixed: How to Perfect the Fine Art of Problem Solving. I think this is going to be a really fun conversation. I'm very excited. Amy, thank you for being here with me today.

Amy Herman: Thanks for having me, Sarah. I'm really excited to be on the show.

Sarah Nicastro: I have to admit, Amy and I spent a good portion of our time chatting before we even started recording because we just hit it off right away. So that was fun. All right. So I'm really intrigued about our chat today, but before we get into the meat of it, tell our listeners a little bit more about yourself, your journey, whatever you would like to share.

Amy Herman: Sure. So I am what I call a recovering attorney. I'm a recovering attorney because once you're a lawyer and you leave, you're always an attorney and I'm also an art historian. And I like to think that I combined the practical aspects of each of those disciplines, legal analysis and visual analysis when I created my company over 20 years ago.

Amy Herman: Basically what I do. My company's called the art of perception and I train leaders around the world to enhance their observation, perception, and communication skills by learning to analyze works of art. And I know the two don't sound connected. I know the connection could be tenuous at best, but it really seems to be working. And it's taken me a long time to figure out why, but with my new book coming out, I'm not only trying to help people enhance their observation and perception skills, but now I want to help them solve problems with the same method, because I think everything is broken right now. And while I'm a half glass full person, that is what I do. I use works of art as the vehicle to get people to rethink their problems and the skills they use at work and at home.

Sarah Nicastro: And the two really go well together. Right? I mean, the idea of evolving your perception and looking at things differently is sort of step one of being able to solve problems, right? Because oftentimes you need to change your perspective a bit to be able to come up with solutions. So I would think they go really well together.

Amy Herman: They do. They do. Two things come to mind as we were discussing beforehand offline. I think the best things really do happen at the exit ramp of your comfort zone. And while we are hesitant to go there ourselves, when someone else says, okay, come with me, I'm going to take you to the exit ramp of your comfort zone. You're going to see things you didn't see before. And then you go back, it's kind of empowering too. And I'm using art as a set of data. I'm using it as a new way to think about problems.

Amy Herman: And I have to confess, as you can imagine, I've spent a lot of time in museums, but I don't like to get hung up in labels and years and artists, blah, blah, blah. I did all that when I got a degree in art history. That's all fine. But I saw a wall label recently that really struck a chord and resonated and has been undergirding everything I've been doing ever since then. And what it said on the wall text is how we look at things is fundamental to what we see. How we look at things is fundamental to what we see. So I'm trying to help people change the way they look at things. And in the words of Wayne Dire, he says, when you change the way you look at things, the things you look at change.

Sarah Nicastro: Okay. I love it. All right. So as I was researching you, there's a number of terms that come up that I want to sort of clarify for our listeners before we kind of talk about what the method is and sort of what people should be thinking about. So the method is an alternative for problem solving that can be considered different from what we refer to as default thinking. So can you explain what you mean by default thinking?

Amy Herman: Yes. Default thinking it's actually really a reserve of comfort for us. Been there done that. You know, I've seen this problem before. This is how I can solve it. And default thinking is what we rely on. You know, example. I say this as a mother. Okay, kid throws up eight o'clock in the morning. You know what to do. You clean it up, see if he feels okay, you know check the symptoms and you know, he is not going to go to school, so you put all these things in place.

Amy Herman: At work, somebody on your team, a key person on your team, quits unexpectedly. Okay, I've had this happen before. Let me think about what to do. How could I put the pieces in place. So we can do it personally and professionally. Default thinking is been there, done that. I'm seasoned.

Amy Herman: What I want to do is change the default thinking and say, maybe there's a better way to do this. Yes. This worked for me in the past, but maybe there's a better, more effective and more sustainable way to do this that I haven't thought of before. So I want to give people a template just to move a little bit away from that default thinking, not abandon it completely. We know what works for us.

Amy Herman: Let me try something different this time to see if it works. And you know what, sometimes it doesn't, and it's an epic fail, but sometimes you fail forward. It doesn't work out, but you say, you know what, I tried it because I learned something. And sometimes you go back to your default thinking, but I want to give people another avenue because of all the problems we're facing right now, some of them are just intractable. Some of them are just such new dilemmas that I want to give people a new way to think.

Sarah Nicastro: Now that's what I was thinking when you were describing some of those examples that-

Amy Herman: You like the vomit one.

Sarah Nicastro: So no, I get it. Yeah. Would you say that there are problems for which default thinking works, but then problems for which we need to learn how to move past that default thinking?

Amy Herman: Okay. I'll give you an example. I was just writing up a proposal yesterday. So it's fresh of mind. There's an artist named Georgio Morandi, and he's an Italian artist and he never left Bologna. Or maybe he left once. He worked in Bologna and he worked in a studio and he painted the same subjects his entire life. Cups, vases, plates, bowls. And he rearranged them myriad times, painting after painting after painting. And some people rolled their eyes and said F Morandi. So boring cups and vases. But other people think he's brilliant. It's quietly subversive.

Amy Herman: He looked at spatial. He looked at appearance. He looked at light. He looked at shadow. He looked at weight and he thought about all the moving pieces and all the different ways that he could arrange these pieces. And that's what our lives are. Let's face it. We live our lives. We get up in the morning. We go to sleep at night and we have a certain set of tasks, but let's shift it. Let's move them around. Let's do things A, to make it more interesting. And B, hopefully to do things better.

Amy Herman: I'm not asking people to turn their lives upside down. Let's all drop everything and run to a museum. But let's look at art as a way of thinking about things differently. We all have to from point A to point B every day, but let's think about what's on that journey. What's at point C, what's at point D, and what are other things we can look at to enhance our lives, but also to be more engaged and get more out of it.

Amy Herman: That's how I'm using art as sort of that analogy like Morandi's paintings. I can show 20 of them. No two are the same. They're different colors. They're different lights. There are different times of day and it gets you to think, oh, maybe I don't have to do the same thing all the time. That's what I mean about default thinking and using the pieces that work, but thinking about what doesn't work and to deviate from that just a little bit.

Sarah Nicastro: Yeah. And I would say, just thinking about how this relates to our audience, right? Sometimes it's the minutia that is really where the problems get stuck, right? So you mentioned the fact that some people could look at his paintings and say, oh, you know, they're all-

Amy Herman: Same old, same old.

Sarah Nicastro: Olds. But you're saying like, there's a lot of movement in the details. And to me, that's, very similar to how problem solving would work for our audience, because yes, we're in a period of massive innovation and market pressures and demands, et cetera.

Amy Herman: Yep.

Sarah Nicastro: And so sure. Sometimes you're going to paint a whole new painting, right. With a whole new set of inspiration. But a lot of times it's looking for those details and looking at it that way. So-

Amy Herman: Absolutely. But there's something I want to throw in there when it comes to problem solving. This is one of the biggest takeaways of my book, fixed about problem solving. And I say this to people like you, and to me. We're all juggling a lot. Right. We have demanding careers. We have really interesting careers. We've got families, we've got a balance. Don't let perfection be the enemy of good.

Amy Herman: Sometimes good is just good enough. Sometimes you have to solve a problem and you need to put all the pieces in place because you got to get out the door or you can't let everything fall apart. So I don't think we need to strive for perfection every day. I don't. And you know what? That's hard. One because you think you have to be perfect. Think you have to fix everything you don't. So one of my biggest takeaways is don't let perfection be the enemy of the good. We don't have to be perfect all the time.

Sarah Nicastro: Yeah. That's a good point. All right. So we talked about default thinking. Tell us about your approach and how it provides a more innovative way to problem solve, how it gets people out of that default mode.

Amy Herman: Well, I'll give you the example of having two people stand in front of a painting. Let's just say I work with police officers. So I have two cops standing in front of a painting and I say, okay, take 15 seconds. Take a look at this painting. And 15 seconds is a long time when you're just looking. And then I say, okay, each of you tell me and tell the group here, what do you see? And it's not threatening because you're just telling people what you see. You're not telling me who Van Gogh is. You're not telling me what period this is. What do you see in the painting? And what is remarkable is that the two people will come up with vastly different narratives of what they're looking at. And it's almost self-evident to them that if this is happening in a museum in front of two paintings, what's happening at the crime scene?

Amy Herman: What's happening in the operating room? What's happening in the boardroom? And that it gives us an insight into problem solving that not only do we come up with different solutions, we have different ways of seeing the problem. So let's start at the bottom line, articulate what we see the problem is before we think of what the solution is and art gives us a vehicle that's not threatening. I'm going to use the F word. It's really fun. It's actually fun to look at art together and talk about what we see and gives us this model to say, whoa, whoa, whoa. Before we all dive in to solve the problem, can we just go around the table and each articulate what we see the problem as really being.

Sarah Nicastro: I love this. So I have a podcast I recorded not too long ago with a gentleman who leads the digital buildings business at Schneider electric. And we were talking about what he feels are the kind of traits of modern leadership. So how over his career he's worked to evolve his thoughts, beliefs, approaches to, continue to improve. And one of the points that he brought up is the idea of there isn't enough root cause analysis.

Sarah Nicastro: And it's making me think of what you're saying, which is people jump to solution before ensuring that everyone is solving the same problem, right. Or that the same perception of the problem. And so his point is, he didn't obviously give it in an art context, but his point is without proper root cause analysis, you have people racing off to solve their own versions of what they saw in that painting. And then, without consensus that they're working towards a common objective, so.

Amy Herman: Yes, and you know what there, and that method, that idea happens a lot. That execution happens a lot, but you know, where you run into trouble and why this methodology hopefully can be useful is sometimes in the process of solving a problem, you run into a roadblock that was unforeseen. You run into a roadblock and you say, oh, I didn't think of that. Now what? I just went so fast. So two concepts come to mind.

Amy Herman: One, I learned from a colleague of mine in the FBI and he taught me the concept of festine lente. And it means to make haste slowly. And I know that sounds sort of like an oxymoron to make haste slowly. What does it mean? It means we all have to get to the finish line. We all have to complete the project. We all have to meet the deadline, but we need to do it mindfully and purposefully and in synchronicity with others to make sure we get it done the right the first time because nobody has time to start all over again.

Amy Herman: And another example that I want to give you that I think is just so interesting about dealing with problems along the way. So in the wilds of Colorado, this past October, I don't know if you saw in the news, they had film footage of a wild elk running around with a tire around its neck. And once you got over the absurdity of seeing this elk with a tire around its neck, it was actually really sad. What happened was the elk had coming contact with human pollution. When it was young, before it had antlers, it put its head through the tire and then the antlers grew and they couldn't get the tire off. So to make a long story short, the green wardens decided to taze the elk. It took them a while. It's a wild elk. They couldn't taze it.

Amy Herman: They finally got the elk out. And when they went to shave the tire off, they couldn't, it had a steel band in it and they couldn't get the tire off. Times a ticking. You know, when you taze an elk. I don't know how many Elks you've tased-

Sarah Nicastro: No, not a lot.

Amy Herman: But you don't know to keep it down. So what do they do? They can't shave the tire off. So you know what they did, they said, okay, here's a new problem. They shaved the antlers off, took the tire off the elk's neck. It woke up and it ran away. Now what's the takeaway for us that are not tazing, wild elk. The overarching problem here is wildlife and pollution. Are we going to solve that problem? No. Sometimes you need to solve the problem at hand and not worry about the big problem or the undergirding problem.

Amy Herman: Get the tire off your neck is what I tell my clients. Get the tire off. And sometimes yes. Is it a bandaid? Sure it is. But when you really don't have the resources to solve the big problem that caused this, the chances of another elk getting its head through a tire. Sure. It could happen. This particular elk and solve the problem and be able to handle unforeseen circumstances. Yeah. It's an interesting analogy. I know, but visually compelling when you see the footage of this elk running around Colorado.

Sarah Nicastro: Yeah. So tell us a little bit more, Amy, about ... I'm just curious, like when you work with organizations, we said FBI, NYPD, all the Fortune 500 companies, et cetera. What is the process like? So, what are you ... give us a glimpse into the work you do with them and what you're sort of asking them to do and how you're incorporating art into that process?

Amy Herman: Well, the first step that I take with any new client, it's always the same. A mentor of mine once said we have two ears and one mouth for a reason. Use them proportionally. And so I listen to what my client's concerns are. There's a reason they've come to me. You know, they didn't just say, oh, let's call that Amy Herman. Let's see what she's up to. No, they're coming to me for a reason. Something's broken. They need team building. Morale is really low. I mean, given where we are in the pandemic, it could be a thousand reasons that they're calling me. So I listen to what their issues are, what their concerns are, and what they hope to get out of a session like this. And then I turn around and I say, okay, this is what I can offer you.

Amy Herman: So when I bring the clients in, we've had to do this virtually because of our current circumstances. But normally I go to the client and we look at works of art together. And I explain to them how we're going to use art as data. This is not an art history class. Okay. You're not in for, oh, let's look at some Monet's together. It's not about that. It's looking at artist data, bringing them to the exit ramp of their comfort zone, making it highly participatory, highly engaging. There is never note taking in my sessions. Never. Because if you're busy taking notes, you're not participating.

Amy Herman: Then I put everyone on the spot. I make them do exercises with each other. They have to close their eyes. They have to describe works of art. They have to visualize. They have to articulate. And my training work breaks down into four A's. Every new client, every new product, every new vendor, any new situation, you practice four A'. one, you assess your situation, put parameters around it.

Amy Herman: Two, you analyze it. You say, what do I have? What do I retain? What do I get rid of? How do I prioritize my information? Then you articulate it. You tell your team. You send a memo, you send a text, you form a plan and then you act. You make a decision. So I show them how to assess, analyze, articulate, and act in the sparest of terms, because everyone's so busy. Nobody needs anything more. And how that can break things down into digestible pieces, whether it's communicating your strategic vision for the company or whether you're trying to solve a really big problem. So with this artist data, we work together in interactive exercises. We work together. We open our eyes and the time moves really quickly. And my goal is that every single person that participates in my program or reads my books, leaves thinking differently about one aspect of their work.

Sarah Nicastro: Okay. So when you gave the example of the two police officers looking at a painting. We talked about the perception, right? So their perception, what they saw is different. And so the perception of a problem can be different. There's a couple other things I just want you to kind of define for our listeners. The second is visual intelligence. So what does that mean? And how does it relate to problem solving?

Amy Herman: Well, visual intelligence, spoiler alert is the title of my first book. And it's two things. Number one, visual intelligence is seeing what matters. We are barraged with information. We're on a 24 hour news cycle. We get. We have Instagram, we have social media, we have texts, we have emails. We have the old fashioned phones. Some people still call you and email. And our brains can't process all that.

Amy Herman: So visual intelligence is breaking down that information, distilling down to what you need. And that sounds like some kind of platitude. It's not. There are certain things I know that I can't look at social media before a certain time in the morning. I don't need that information, but for certain of my clients, that's how they communicate. So I know what I need to look at in a very focused way. The other definition I use for visual intelligence is seeing what other people don't.

Amy Herman: What does that mean? Seeing what other people don't. How do we look at our existing resources in a way that other people don't see them? And more importantly, how can we use them to solve problems? And the art example that I give you is a work of art by a woman named Rachel Whiteread. She made these beautiful, it's a hundred sculptures of beautiful wax and resin in a room. And when the sun shines in them, they're beautiful. You know what the sculptures are based on? The underside of a hundred different chairs. Who thinks about the underside of a chair? Nobody, but it's a negative space. And she thought, what a cool negative space. And she made a sculpture based on the bottoms of a hundred chairs. Do you need to know that? No. But she saw something that nobody else did. That's what visual intelligence is. It's seeing what other people don't and distilling all the information that we have to what you think you really need.

Sarah Nicastro: Now what about situational awareness.

Amy Herman: Situational awareness. It breaks down into two forms. There's short term situational awareness and there's long term situational awareness. Short term is knowing where you are at any particular moment. Right now, how did I get here? How did I get out? This is what we teach our children. How did you get here? What's the safest way to exit? What is the threat? What are you going to do right now being aware of your surroundings. Because as we know, when people put their earbuds in the rest of the world goes away. That really isn't the best thing to do in any situation. Long term situational awareness is a problem that you're aware of, but you haven't wrapped your head around it. You don't have a solution. You are aware of, but it doesn't have a solution. And it's sort of, it's looming. You say, okay, I know we have this problem.

Amy Herman: Like in the intelligence world, we know terrorism hasn't gone away just because there haven't been any terrorist incidents in the last two years, knock on wood. It hasn't gone away. So we still have to combat the issues that might not be at the forefront. So situational awareness is the here and the now, where am I? How did I get here? How did I get out? What can I do while I'm here? And long term is sort of a long range awareness of the issues and they're on your radar, but you may not be dealing with them all the time.

Sarah Nicastro: Okay. Now those concepts, so perception, visual intelligence, situational awareness ... are these skills that anyone can hone or are there certain people who are more inclined or more effective at these things?

Amy Herman: Well, from an entrepreneurial perspective, I'm going to tell you that if the skills couldn't be honed, I'd be out of business. If everybody had to be born with this, I wouldn't have my company and I wouldn't be doing what I'm doing. I will say, that being said, there are some people that are better at this than others. There are some people that are aware, that are more aware than others. There's some people that can articulate their circumstances better than others.

Amy Herman: But I believe that we can leverage our own neuroplasticity to get our brain to think differently. And as one of my intelligence colleagues once said, and I steal this phrase from him all the time, because I think it's fabulous. He says neurons that fire together, wire together. And when I show you works of art and we look at works of art together, you are engaging your brain in a way that other stimuli don't do to your brain. So when you're using those neurons to fire, my hope is that when you encounter a problem, you'll be able to call upon them to wire to help you solve problem.

Sarah Nicastro: Okay. All right. So our audience is business leaders, varying levels across varying industries that are all looking to solve problems related to innovation, digital transformation, differentiation of their offerings, company service and company growth, leadership. How does this formula apply to this type of persona?

Amy Herman: Well, let's start. Every one of those professions that you just named thrives on change. They're all working in a dynamic environment. None of those people can afford to be left behind. So I'm going to give you a quote from Henry James, which is probably the overarching takeaway from my whole methodology is try to be the person on whom nothing is lost.

Amy Herman: So what I'm doing is I'm using art as the data to reengage all of your senses, to sharpen your perception, to rethink innovation, to look at your existing resources differently, with the hope that you'll be able to solve problems, not just today's problems, but the problems down the road, because all those people in changing markets and leadership and startups, they are all poised. They're like elite, military squads. They know they're going to encounter trouble. They know they're going to encounter hostility and they're going to encounter change.

Amy Herman: So I want to give people a different template that they can fall back on. That's where we get back to that default thinking, that they can fall back on and say, you know what? There's a better way to solve this problem. And I'm using art as the data. And when I say that quote, try to be the person on whom nothing is lost. I want to realign your engagement. Think about not just what you see, but what did you hear? What your impressions and most importantly, how do you communicate all that to your stakeholders, your clients, and your colleagues.

Sarah Nicastro: Okay. So let's say there's a listener hearing this talk and thinking, huh?

Amy Herman: Yeah.

Sarah Nicastro: Because I can visualize a few of those, just thinking about some of the types of folks that might hear this and just think.

Amy Herman: Sure.

Sarah Nicastro: So what's your reply to that reaction?

Amy Herman: My reply to that and believe it or not, I thrive on skepticism. I love when I have a skeptic saying, are you kidding me? You know, this is a room of MBAs. This is a room of CEOs. You're going to tell me that this art historian is going to talk to us. And instead of thinking about art substantively, I'm not telling you to drop everything and go to a museum. I'm telling you that, how you're doing your work. And however, you're solving your problems to keep in mind that yeah, things might be hiding in plain sight. Yes. There may be a more effective way to do this. And yes, I have the resources to be better at this. And so by simply reading my book and rethinking your work and your world. Nothing I'm doing Sarah, as you see is rocket science. You know, I'm not asking people to turn their worlds upside down.

Amy Herman: I'm saying, take your model as you know, it. Let's shift to the left, shift to the right. Let's clean the lenses that we're looking at. Let's change our shoes. Let's look at other perspectives. And I can almost guarantee when you step out of yourself, because one of my favorite lines with my son and with my clients is it's not all about you. It never is. It may be your business and your company and your team, but decisions are never all about you. Step out of that. Look at it differently. Use your visual intelligence. And I can almost guarantee you'll come away with a different perspective. That's all I'm asking for. Different perspectives and you choose how to apply it. It's not radical as it might sound.

Sarah Nicastro: Yeah. I also think, my thought is the people that are the biggest skeptics are the ones that are the most stuck in their own comfort zones. Right?

Amy Herman: You bet.

Sarah Nicastro: Otherwise you're not so resistant to the idea of trying something different, right? So they probably need it the most.

Amy Herman: Agreed. I'm going to use the corporate term. I'm going to talk about the growth mindset versus the fixed mindset and the people that are going to shut their eyes and ears to this and say, I do not need some crazy lady telling me to look at Picasso to help with my job. The growth mindset says, you know what, I'm good at what I do. I'm talented. That's why I'm in this position, but I need to keep growing. I need to sharpen my edge and I need to be innovative.

Amy Herman: The fixed mindset says, you know what? They hired me because I am excellent at what I do. I don't need anything else. And it's usually the people with the fixed mindsets that are resistant to my training and resistant to my methodology. And I'm sorry to say, they get left behind and they're cutting off their noses to spite their faces because in the end, all I want this work to be is empowering to the individual, giving them additional tools to do what they do and do it even better.

Sarah Nicastro: Yeah. That makes sense. All right. So if someone is open to this method, how do they know it's working? Like how do you know when you've achieved success with a client that you're working with?

Amy Herman: The simplest and easiest way that I know the methodology works is my clients come back over and over and over again to train not only their new cohorts, but to refresh the sense of inquiry and vision of their more seasoned team members. So I work in hospitals year after year after year trading, the new doctors, the new nurses. I've been working with the FBI since 2004, and the whole reason I wrote my first book is because I got this feedback from participants in my program saying, got to tell you how I use this. You know, I was in this situation in Afghanistan and I missed this or a nurse will say, I never thought of looking at this from so and so's perspective.

Amy Herman: And I thought this is just too good. I need to, I've always known that art's powerful because I'm an art historian, but I'm just channeling that power of art and giving it to people who wouldn't necessarily look at art for a living. And when they come back to me, not only telling me that it resonated, but with practical application, the greatest for me that the methodology seems to be working.

Sarah Nicastro: Yeah. Yeah. All right. So obviously one choice.

Amy Herman: That's a word that's not allowed in my program. Sarah. We're never allowed to say obviously.

Sarah Nicastro: Obviously, okay.

Amy Herman: Because things are so complex.

Sarah Nicastro: Right? So, listeners could have obviously no, I did it again.

Amy Herman: See we do it all the time.

Sarah Nicastro: So now I'm going to trip myself up.

Amy Herman: Of course you are. It's okay.

Sarah Nicastro: Listeners, they can read your book.

Amy Herman: Yes.

Sarah Nicastro: They could check out artful perceptions and learn more about how you work with organizations. But for those just curious about the idea, how could they get started kind of dipping their toe into this concept? You know, what are some ways for them to maybe test it out a little bit?

Amy Herman: Sure. So yes, you said they could definitely read my books. Artful perception is my website, which tells you about methodology. But if you really just want to try it out on yourself, two things you could do. If you're brave enough to go into a museum, I want you to walk into a gallery and just look around the museum. Don't read any labels and pick one work of art that speaks to you that you want to take home with you, walk up to it and just spend five minutes with it and figure out what is it about this painting that makes me want to take it home. Just spend five minutes with a work of art because you're going to engage your brain in a way that you wouldn't normally. And don't spend too much time in the museum. And only after that, read the label and see if your observations are in sync with what the label says. That's number one.

Amy Herman: Number two, if you're too busy, you don't have time, who can get to a museum. I take it for granted. I live in New York City. On your way to work tomorrow, I want you to go out of your way, either on your way to work or on your way home, go out of your way to notice one thing you didn't notice the day before. Actually look around, out the car window in the parking lot. In the walk in the supermarket, go out of your way and then come home and write it down.

Amy Herman: And I want you to do that every day for seven days. Just write it down. Again, it's engaging your brain in looking for something and making the connection between not only looking but communicating if just to yourself so you can help bridge the gap between what we see and what we say, because it's not enough to see. I work with CEOs. They're brilliant. People say, oh, she's a visionary. I have news. If you can't communicate your vision and your strategy, you're not so brilliant. So it's the idea of looking and communicating. That's what people can do in the interim. If they don't want to get the book right now, or they don't want to go to the website, think about engaging what they see on a daily basis.

Sarah Nicastro: Okay. That sounds good. Okay. You talk about recognizing relationships and red herrings. Can you tell me what that means?

Amy Herman: Sure. The idea of relationships and red herrings. We take certain things for granted. We know this person, but red herrings are things that we think we see, but we don't really know. And if something catches your eye, there's a reason it catches your eye. You need to be able to go with something. And also you have to make sure that the things that you're depending on really there is veracity there. You know, this comes back to, I talk about biases. A lot, people know all about it, bias, cognitive bias, blah, blah, blah. There's so many biases. The one that I think is most dangerous is the anchor bias. Most people don't talk about the anchor bias. It's the human tendency to believe the first thing we see or hear is true. And you know what? Think about the news we get all the time.

Amy Herman: You hear it. It must be true. Well, that's what a red herring can be. You can hear it. You say, oh, it's absolutely true. I'm running with it. Ooh, resist the urge. And if there's a question or your gut tells you to look elsewhere, listen to your gut. Look at your relationships, determine on what basis. Are they sound? Can I rely on them? And the things that you're not so sure, be sure to question them because there are red herrings that are out there and be aware of the anchor bias.

Sarah Nicastro: Okay. Can you recap for me why the use of the word obviously is prohibited?

Amy Herman: Absolutely. And I didn't mean to catch you in a moment, snagged you. At the beginning of all my sessions, I lay out three rules. Number one, don't write anything down. Number two, engage in the conversation because the more you put in, the more you're going to take out. And the third rule, which is the hardest to follow is that for the time that I'm together with my clients, I ask them to refrain from two words, obviously, and clearly.

Amy Herman: And the reason is, we live in work in a complex world. Nothing is obvious and even less is clear. So you say, well obviously we have a case of X. What if I don't know why it's obvious. Am I going to stop you and say, Sarah, can you please explain to me why that's obvious? So instead of assuming a certain level of knowledge and sort of introducing a potentially antagonistic situation, say it appears to me to be a case of X because of Y and Z instead of saying, well, obviously it's X. And you think of how, not only does that deescalate a situation, but you think about in companies where there are hierarchies or in the operating room.

Amy Herman: Well, the doctor says, well, obviously it's this. What if the intern sees something else? And because of the hierarchy, isn't going to say, well, Dr. Jones, why can't it be this? So if the doctor were wise and thinking about pedagogy and say, well, it appears to me to be this tumor because of all the evidence of X, Y, and Z around it. Better way to observe. It's a better way to communicate. It's more inclusive and it deescalates without having to say I'm deescalating. So just so you know that when my sessions are in person, if anyone says obviously, or clearly I make the whole room applaud. So they're reminded, oh, maybe I shouldn't do that. And I want you to know you're not alone. When I tell people that they broke the rule they use obviously again and again, and again. It calls attention to a word that we're using, and we're not really sure what the implications are. That's all.

Sarah Nicastro: Yeah. I love that. No, I'm glad you caught me and called me out. And now it's something that I'll pay attention to. See, this is what the self improvement is all about. Learning different things and applying them and working through that. All right, Amy, any other advice to close us out on problem solving? Any other comments you would want to share with our listeners?

Amy Herman: Well, first of all, thank you very much for having me. I really appreciate it, but I'm going at the risk of repeating myself because I think they're points worth driving home. The two biggest takeaways from my talk with you and for people in the business world. I work with executives. I work with heads of companies all the time is really try to be that person on whom nothing is lost. Really try to reengage all of your senses internally, externally with all your stakeholders and on a more practical level, don't let perfection be the enemy of good. When you have to solve problems, solve your problems, get the tire off your neck and do what you have to do to solve your problems.

Sarah Nicastro: I love it.

Amy Herman: I would leave them with.

Sarah Nicastro: Thank you so much. I'm thrilled to have had you. Really enjoyed the conversation. So the book two books, Visual Intelligence, and Fixed: How to Perfect the Fine Art of Problem Solving. I assume people can find anywhere they buy their books and the website is artfulperception.com. If you want to take a look at a little bit more of what Amy does. So, be sure to check those things out. Amy, thank you so much for being here. I really appreciate it.

Amy Herman: Sarah, thank you. It was really a pleasure talking with you. Thanks so much.

Sarah Nicastro: Yes. You can learn more by visiting us at futureoffieldserviceref.ifs.com. You can also find us on LinkedIn as well as Twitter @thefutureofs. The future of field service podcast is published in partnership with ifs. You can learn more at ifs.com. As always, thank for listening. 

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March 16, 2022 | 21 Mins Read

Upskilling the Communication of a Technical Workforce

March 16, 2022 | 21 Mins Read

Upskilling the Communication of a Technical Workforce

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Sarah welcomes Neil Thompson, creator of Teach the Geek and host of the Teach the Geek podcast, to discuss his personal journey as a product development engineer that found he needed to improve his communication skills when he was put into a position where presenting and public speaking was necessary. As a result, he’s created the Teach the Geek program to help others in similar position and weighs in on how companies can best upskill and reskill an engineering-centric workforce to have more soft skills.

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 need to upskill and reskill the frontline workforce with some soft skills and communication skills, and talk a little bit about is that possible? How is that possible? To what degree is that possible? Et cetera. I'm excited to welcome with me here today Neil Thompson, who is the creator of Teach the Geek. Neil, welcome to the Future of Field Service podcast.

Neil Thompson: Thank you for having me.

Sarah Nicastro: Yeah, thanks for being here. So, before we dig into the topic at hand, tell our listeners a bit about yourself, your journey, and your program Teach the Geek.

Neil Thompson: It all stemmed from my initial struggles, having to give presentations in front of senior management at the second company I worked at. The first company I worked at I was a research associate. I only worked in the lab, I did experiments, wrote protocols, wrote reports, and went home, came back, did the same thing the next day. And I didn't have a problem with that. I did that for about two years. It was the second job that I took as a product development engineer where public speaking, or just communicating with people, came into play. At least for the first few months I didn't have to do any of that. It was very similar to my first job, but then it came a time where I was made a project lead. So I wasn't product development engineer anymore, I was the project lead.

Neil Thompson: So why the project lead? Well, the company was too cheap to hire project managers, so they pushed that responsibility onto product development engineers, one of which was having to give presentations on project status in front of senior management on a monthly basis. So we're talking the CEO, CTO, CMO, fill the blank O. All these people were in the audience listening to me give presentations. And those first few presentations were absolutely horrendous. I didn't know it was possible to sweat that profusely from one's body. Sweat's not supposed to come out of your fingernails, but there it was. And I know a lot of the other engineers that had to get presentations who also were made project leads. Their presentations weren't all that much better than mine. I think the issue that many of us have is having all this technical expertise, but not putting it in such a way that non-technical people can understand. With the exception of the CTO, basically everybody else in the senior management team weren't technical.

Neil Thompson: So a lot of the times what would happen is I would have to answer questions after the presentation that I thought I'd answered during the presentation, but because I didn't put it in such a way that these people could understand now I'm sweating even more. I was sweating enough during the presentation and now even after the presentation I'm sweating even more than that. And basically was a waste of time for myself, waste of time for the audience. It was just a waste of time in general. So I eventually realized that this is something I really should get better at. And I did just because of all the reps I had to do. I had to do this every month. And I basically took everything that I learned in becoming more effective at communicating with these people and I turned it into an online course and I called it Teach the Geek to Speak. And it's geared towards people like myself, people that have technical jobs and have to give presentations in front of others, and just how to go about doing it more effectively.

Sarah Nicastro: Yeah. So, when you started being in a position where you had to give these presentations, would you say it was more nerves or more not feeling like you related the people you were speaking to, or that they didn't relate to you? Or was it more actual skill of here are some of the things that make for an effective presentation, or just a combination of all of that?

Neil Thompson: Oh, it was all the above, Sarah. It was not preparing. So a lot of the times I would just get up there and talk, or in some instances it would be me preparing slides and just putting a whole bunch of stuff on them and reading them when I got up in front of people. And it's very difficult to engage people when you're reading, because you're not really looking at them. And then as I mentioned, ultimately, what would happen is I get these questions afterwards, so to then nerves even came in there. So it was just an amalgam of a bunch of problems that I had and the other engineers had given these presentations, and it just wasn't effective. And at some point, in case you want keep being a sweaty mess, you're going to do something about it.

Sarah Nicastro: Mm-hmm (affirmative). Yeah. So the program you created, Teach the Geek... I mean, first of all, I think it's really cool that you saw the opportunity to not just... You recognized, "Okay, I need to get better at this. If I'm going to have to keep doing it, I need to get better at it." But you also recognize the opportunity to help others that were in similar positions that had the same struggles. So, I think that's really cool. I also think it's kind of outgoing, right? I mean, it forces you even further out of the comfort zone, because now you're not only doing the presentations and improving your own skills, but you are communicating with enough others that you're helping them improve their skills. So, I think that's really, really neat. Tell us a little bit about what the program is like. So, it's intended to help people who are going to be tasked with public speaking, correct?

Neil Thompson: That's right.

Sarah Nicastro: Okay. And it's an online course. Just kind of give us an overview of what's the length and who is it... It's geared toward folks like yourself. So people in highly technical positions that want to improve their skills speaking to a group of non-technical people.

Neil Thompson: Correct.

Sarah Nicastro: Okay. So how long is the program?

Neil Thompson: The program if you were to listen to everything from start to finish is about 90 minutes. And I made it that length on purpose. I didn't want it to be too long because I wanted people to actually finish it. From a bit of research that I did on courses one of the issues that there are with courses is the finish rate isn't very high, especially if there's a lot of modules to go through people. Initially it start off, "Oh, we're excited about doing it," but then somewhere in the middle they're going to lose interest and then never finish it. Well, if it's just 90 minutes, I mean, that's really difficult to lose interest.

Neil Thompson: I mean, you probably watch movies that are longer. So I made it that short on purpose. But then at the end of it there are exercises that I suggest people do to actually improve their public speaking skills. And you can listen to all or do all the courses you want, listen to all the podcasts, watch all the YouTube videos you want, but if you don't actually get out there and implement whatever you learn from these various resources you'll never get better. So I have exercises at the end of it to really implement what I talk about in the course.

Sarah Nicastro: Yeah. Yeah, that's what I was going to say. It's part knowledge and information, and then it's part, like you said, you improved yourself just by a forced practice, right? And so there's an element... But I think to me it seems like another part of the value of this program for people is just the recognition that if they feel uncomfortable or nervous or this isn't familiar to them, they're not alone in that, right? There's also, I think, some comradery of, "Okay, I'm not the first person to feel this way, I won't be the last person to feel this way, and if Neil and these other people have improved I can improve too or learn these different skills." So I think that's really cool. So, Neil, I explained a little bit before we started recording this that... So, your experience is different than that of our audience, but not so much so that there aren't some correlations.

Sarah Nicastro: And what I mean by that is... So you were an engineer and you had to start giving these presentations. What I explained to you before we started recording is that within our audience a lot of companies are in a situation where they have field engineers. So they have field engineers that go out and do either installation or repair work on sometimes very highly technical equipment. And historically, their job has been very much just go to the customer sites, fix the problem and leave, right? And for a variety of reasons what those companies are asking from their field engineers is evolving a bit because the nature of service is evolving such that rather than just completing the technical work we're now also looking to those field engineers to play a very important role in building relationships with those customers, and maybe sharing knowledge and insights with them in addition to fixing the actual equipment that they're to fix.

Sarah Nicastro: And so, this gives companies the task of really upskilling and reskilling those technicians to be more competent at building and maintaining and nurturing those relationships. And so, while it is a different than your personal experience it's not so different, right? And so I wanted to ask you some questions related to this topic. You call your program Teach the Geek, so my first question is, do you feel like all geeks or all highly technical engineer type people can be upskilled in these areas related to communication and soft skills or no?

Neil Thompson: Oh, I would never say that anyone cannot learn a skill. If they're interested in learning the skill you can learn pretty much anything, and especially if you see the benefit of learning that skill. It's really difficult to be forced to learn something. So if you're a field engineer and you want to continue you to just do your job, fix whatever instrument there is, and then go about your day and rinse and repeat, then yes, those people would be difficult to upskill, but if you are someone who sees the benefit of becoming more effective with just communicating with others, then you'll do it.

Neil Thompson: And not only that, but if you're a field engineer who wants the promotion and pay raises that you think you deserve, well, becoming better at communicating with others is a must. Oftentimes, those are the people who get those promotions and pay raises. It's not necessarily the most technically gifted people in the group or the ones who are the best at their job, technically it's those who do a good job of communicating their worth to the company. And so if you see it that way, then it'd be very easy to then convince you that this is something to get better at.

Sarah Nicastro: Mm-hmm (affirmative). Now, if you reflect back on your personal experience, now you were kind of thrown into this situation where you had to do these presentations and you kind of recognized your own need to polish those skills or improve those skills. If companies are looking at this in a more strategic or proactive way like, "Okay, we recognize this role is evolving and we need to take more steps to upskill and reskill our field engineers with some of these soft skills and communication skills," what would you suggest they keep in mind as they kind of take on that initiative?

Neil Thompson: Well, there certainly may be some resistance to some. I mean, as I mentioned, there's some that just want to continue to do what they've been doing. And change can be really difficult for some people, but there're going to be people that embrace it. And so, those who do, well, they'll be more willing to go along with whatever strategy that the company has in improving these skills with these people. And for those who are more resistant perhaps if they see the benefits that the ones who did embrace it now have perhaps that's enough to convince them that this is a path to go down as well.

Sarah Nicastro: Mm-hmm (affirmative). Mm-hmm (affirmative). Are there certain approaches or tools, or types of teachings that you would recommend specifically for an audience that's highly technical?

Neil Thompson: Proof. You got to prove that this stuff kind of works. So, just even convincing engineers and scientists types to do anything they want to see some sort of evidence that this is something to even bother doing. So, having case studies of what people have been able to do when they've gone through, for instance, this course and how it's been able to help them is really helpful in convincing them that this is something that could work for them as well. And one of those case studies that I tend to use happens be one of my former coworkers. He was a product development engineer just like I was. And as part of our job, in addition to having to give these presentations in front of management, we'd often have to go to conferences and present either posters or even orally.

Neil Thompson: And so in the event that we were presenting posters, he would often shy away from a talking to the of people who'd come to our poster, and oftentimes that'd have to be the one to do most of the talking. But because he went through the course, he's become a lot more comfortable engaging with others to the point where he doesn't even work as a product development engineer anymore, he works as a product manager. And that's moving from product development to marketing. So if you're working in market, you're definitely going to have a more customer-facing position. So he had to have been way more comfortable dealing with others to have even taken such a position. So, obviously, something must have worked. I'd like to think that my course has something to do with that.

Sarah Nicastro: Yeah. Yeah, that's really cool. So, when you work with people, do you find any commonality in sort of how technical people evolve through this process? Is every path different? Or are there are any kind of common stages or phases of what it looks like to move from being kind of uncomfortable to getting more familiar and kind of mastering the art a bit?

Neil Thompson: Well, I think for a lot of technical people there's a lot of technical jargon that they're comfortable with and they use amongst each other. But one thing that they have to understand is that the audience, especially if you're talking to a non-technical audience, they may not understand that technical jargon, so it'd be in your best interest to explain it or perhaps even use other words that are more commonly used. Because what would happen a lot of the times is people may not even ask what those words mean. They just won't listen at all. And so you want to avoid that scenario altogether. So, it's in your best interest if you're a technical person that uses a lot of technical jargon just generally in your daily life doing your work that keep the expertise of the people you're speaking to in mind when you're preparing your presentations.

Sarah Nicastro: Yeah. One thing I'm thinking about, Neil, as we're talking through this for the organizations that would be in our audience is it might be best to consider either leveraging an external resource or co-creating a program with someone on your technical team who is more accepting of the change, right? Because what I was just thinking as you were talking about kind of the jargon and that sort of thing is there's probably a lot of aspects to this where it's the creation of the program or the execution of the upskilling and reskilling is done by someone who isn't an engineer or isn't the technical person. They could miss a lot because some of the things that maybe come natural to them wouldn't come natural to others, or some of the kind of foundational elements like that, realizing not to use too many acronyms or too much technical speak.

Sarah Nicastro: And so, kind of the training of when you're talking about this with the customer here's kind of the level you want to present at, those sorts of things. You kind of need the firsthand or could benefit from the firsthand input of someone on your team who is highly technical to help with shaping what upskilling and reskilling could look like so that you don't miss important aspects, and so that maybe some of the technical people who are a little bit more resistant to change respect the program more because it's been created or co-created by someone like them. Does that make sense?

Neil Thompson: Well, it makes perfect sense. That's the main reason Teach the Geek is geared towards people like myself, because of that credibility I would think that someone like myself would bring as opposed to someone else that has a communications course who is in that field. I mean, there's a lot of communication courses out there, but are they geared towards people in the technical field? And if they are, were they created by people that come from that field? I don't know of any besides my own. So I think that's been really helpful in me just differentiating myself.

Sarah Nicastro: Yeah. Yeah, for sure. And I think that that's just something to keep in mind is... You mentioned change is hard, right? And so when you're asking employees, especially longstanding employees, to really evolve the way that they've done their job for a long period of time, number one, like you said, it's tough if it's just force, force, force, right? The more you can create buy-in the better, but number two, think about how you're creating this in a way that shows you respect the technical talent, not that you're just trying to change it, right? Because you're not trying to remove technical expertise, you're just trying to augment it with some of the soft skills or communication skills that haven't been a focus up to that point. It's a really good point. Okay, so shifting gears just a bit, Neil, I know one of the other things that you're passionate about is creating more awareness around STEM careers, and particularly for black children. So, tell us a little bit about your passion in this area. And I know that you've written a children's book, so tell us about that as well.

Neil Thompson: Sure. The book is called Ask Uncle Neil: why is my hair curly? It's about my nephew asking me why his hair is the way it is, and I use science to answer the question. And the motivation for me writing the book is to encourage more black children to consider careers in STEM, science, technology, engineering, and math. And I'm really keen on the messaging of my motivation. My goal isn't to convince more black children to go into STEM, it's to have them see it as an option, because ultimately it's your life.

Neil Thompson: You're going to go into whatever you want to go into, but I just want them to know that there's this other thing out there called STEM that is for them if they want it to be for them. STEM's for anybody who has the interest in it and is willing to do the work. It's not for any particular group of people. And that's what I really want to get across from the children's book. And eventually, it will be a series. That's the plan. This is the first of the series. So the series will always be my nephew asking me a question and I use science to answer it.

Sarah Nicastro: I love that. We've done quite a bit of content on this podcast specifically around creating more awareness of STEM and the skilled trades, right? We need to do a better job of emphasizing to young people the wide variety of career paths that exist. And I think to your point it isn't about advocating anyone go down a particular path at all, it's just about making sure that we're doing a better job of showing all of the options that are exist to all of the people that they exist for, and to make sure that girls aren't just presented with the options of becoming a princess, right? But there's all of these other options, and that we're doing a better job of representation when comes to, what do these careers look like? And all of those sorts of things. So I really, really like that, and I definitely want to check out the book.

Sarah Nicastro: So besides the book you have so far, and the rest that we'll be a part of that series, what are some of the other ways that you think we can all have a positive impact on making STEM, I guess, more prominent and more attainable for those who have an interest in it?

Neil Thompson: Well, it starts with talking about it. I mean, this seems to be coming full circle. If you're an engineer or a scientist who is adept at communicating with others, then you should be more comfortable communicating what you do with others as well. And this doesn't even have to do within the company, this could be outside the company talking to students about what you do. And that's really helpful. People can't do what they don't know is out there. So if you're talking about what you do as your job, then they might think, "That sounds interesting. I want to look more into that." But in the event that they never hear from you or someone like you, well, then they never hear about that particular position, that particular job. And then it becomes way more difficult for them to ever go into it unless they do some research and it's come across it happenstance.

Sarah Nicastro: Yeah. I have two sons, Neil, five and six, and one of their favorite shows right now is Ada Twist, Scientist. And I love that for them. I love that they are interested in that show. I love how educational it is, but I also love how it just shows these career paths and different just things that we haven't done a good enough job showing and influence really early on, so that kids grow up with just more awareness that there are these careers and these different options. So you also host a podcast. So tell us a little bit about that.

Neil Thompson: Sure. It's called Teach the Geek Podcast. And I interview typically people in the STEM fields, a lot of scientists and engineers, about their journeys in public speaking. But then I also talk to them about their career journeys. And that's even been more interesting, especially for the ones who perhaps started at one place and then ended up somewhere completely different. One that stands out is a woman who got a degree in civil engineering, never worked as a civil engineer though. She then went to law school and became a lawyer and did that for a few years, but then she left that and became a stay at home mom for about a decade, and now she works as a personal stylist. Not the typical career path, but it's so interesting to hear those types of stories of people not necessarily starting... Well, starting at one place and ending up somewhere completely different and not feeling like they had to stay on a particular path, but then just they were willing to follow whatever interest they had. And those types of people are always interesting for me to talk to.

Sarah Nicastro: Yeah, I love that. And I think that's the great thing about the program you've created with Teach the Geek, is people shouldn't need to feel stuck. I mean, there's so many options to learn and to grow. And if there are things about your professional life that you want to change, or if you want to completely pivot, it's good to know that's possible. And you have the power to make improvements, you have the power to expand your skillsets. And for people that want to, those stories of how people completely switch it up are really cool as well. Okay, so Teach the Geek Podcast, I want to ask you two questions, and I'm going to pause here to make sure I separate them because I am notorious for asking multiple questions at once and it always throws people off. So first question is, what words of wisdom or advice would you offer someone in your former position? So someone in an engineering role that wants to improve some of their communication skills.

Neil Thompson: Look for opportunities to do it, and don't shy away from the ability to actually get out there and do it. I think I mentioned earlier, you can read all the books and listen to all the podcasts, do all the courses you want, but you won't get better at it unless you do it. And don't be that disgruntled engineer or scientist sitting in their cubicle because someone else in the company got the promotion, the pay raise that you thought you deserved. If they were the one that was out there improving their communication skills, talking to decision makers, and they eventually got that position, and you didn't do any of that, well, you have no reason to be upset.

Sarah Nicastro: Yeah, that's good advice. And what advice would your words of wisdom would you want to leave with some of the people that listen to this podcast, which are those ultimately responsible for figuring out how to upscale and reskill those field engineers and help them become better at some of this customer communication?

Neil Thompson: Well, I think to convince people of anything you have to show them what's in it for them. And so if those engineers are told by the management, "Well, you know how people get jobs here, right? It's from networking, it's from communicating with people, decision makers, people in authority." If you're not willing to do any of that kind of stuff, well, then you're likely going to be that engineer or scientist sitting in their cubicle upset. And then that pushes it back on that field engineer or whoever the technical person is to think, "Well, I don't want to be that disgruntled person sitting in the cubicle. So if this is going to be something to help me so that I'm not that person, well, then bring it on."

Sarah Nicastro: Yeah. The other thing I'm thinking about, Neil, going back to the point we made about change and all of that, this situation's going to look different for every organization, but one thing to consider might be the role of positive reinforcement versus negative reinforcement. So, if you have the opportunity going into this to make it something where rather than penalizing people for not doing this effort, you can incentivize them to do it, then maybe you have more of those case study examples of "Hey, Chris just completed this and as a result he got a raise, or he has some sort of perk, and Chris can speak to his experience in a positive way." Right?

Sarah Nicastro: Again, it's about I think respecting the fact that we're all human and we have the capacity to change and to grow and expand our skills, but that the people pushing that agenda need to do so respectfully, and need to keep in mind how they're communicating the benefit to the employee that they're asking this of. That makes sense. Okay. All right, Neil, tell our listeners where they can learn more about Teach the Geek. So we have the program, let people know about that as well as the podcast.

Neil Thompson: Sure. So the program you can go to teachthegeek.com. And if you want to check out the podcast... Well, you can either check out the YouTube channel or the podcast and you can get to either of them at youtube.teachthegeek.com. And then if you're interested in learning more about the book, you can go to askuncleneilbooks.com.

Sarah Nicastro: Okay. Excellent. All right, Neil, well, they thank you so, so much for coming on and sharing today. I really appreciate it. I think your story is a really inspiring one. And I think it's great that you've created this program and you are taking your own experience and using it as something to help others. And I'm going to check out the book for sure, and I appreciate you being here.

Neil Thompson: Thank you for having me.

Sarah Nicastro: Yeah. You can learn more by visiting us at futureoffieldserviceref.ifs.com. You can also find us on LinkedIn as well as Twitter @TheFutureOfFS. 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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