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July 21, 2021 | 38 Mins Read

Removing Barriers to Digital Transformation ROI

July 21, 2021 | 38 Mins Read

Removing Barriers to Digital Transformation ROI

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Join Sarah as she talks with Philip Carter of IDC, Fredrik Tukk of Maersk Drilling, and Marne Martin of IFS about why research shows that only 25% of companies achieve ROI from digital transformation and what can be done to increase likelihood of measurable success.

Sarah Nicastro: Hello everyone. Thank you for joining us for today's event. We are here today to talk about digital transformation and what it takes to achieve ROI on your digital transformation initiatives in today's landscape. We know that digital transformation is a key enabler of creating better customer experiences and moving toward delivering outcomes. But a lot of companies fall prey to some traditional practices and behaviors that can inhibit the level of success that most folks are looking for. So we're going to dive in today to some of the things that you might want to work on doing, to achieve the ultimate success, and maybe some of the things you want to avoid doing to achieve the ultimate success. My name is Sarah Nicastro. I run industry versus resource future of Field Service, and I will be your moderator for today's event. I am joined today by a wonderful panel, and I'm going to ask them now to briefly introduce themselves. Fredrik, I'm going to start with you.

Fredrik Tukk: Thanks Sarah, for the introduction. My name is Fredrik Tukk, I'm head of Innovation Scouting for, Maersk Drilling, which is a Danish headquartered, offshore drilling operator. And my role is I'm building the ecosystem with the outer world, focusing mostly on startups to bring in, to help us solve the products we are running.

Sarah Nicastro: Excellent. Well thank you for being here, Fredrik. Phil, would you mind introducing yourself?

Phillip Carter: Sure. Thanks Sarah. And thanks a lot for having me. Hi everyone, my name is Phillip Carter. I'm the Chief Analyst for IDC in Europe, and I also run our global C-suite tech agenda program, quite a long title that apologies, based in Munich and, yeah, looking forward to another learning adventure with this group on digital transformation and action.

Sarah Nicastro: Excellent. Thank you, Phil and Marne.

Marne Martin: So, I'm Marne Martin, the President of the Service Management, Global Business Unit, and it really is a pleasure to be with a great IFS customer, as well as IDC who we work with on how we continue to achieve the digital outcomes that are so in demand today. It's really a pleasure to be part of this panel, Sarah, and thanks for hosting.

Sarah Nicastro: Thanks Marne. Okay. So we have, three different perspectives on a very important topic, which is going to make for a very fruitful conversation. So Phil, to start us off, I'm hoping you can share a little bit of context from the research that shows, how the pandemic has impacted digital transformation efforts and, and what you're sort of seeing right now in this space.

Phillip Carter: Sure. Yeah. So I think what happened in 2020 was an inflection point for IT spend and digital transformation efforts more specifically because it was the first time ever we saw a lack of correlation between GDP trends and IT spend. Normally, so if you go back to the financial crisis, significant drop in GDP, IT spend follow that very closely. Look at 2020, the biggest drop in GDP since World War II, and IT spend held up remarkably well, and that was driven primarily by investments in digital transformation. So we expect that to continue into 2021. Actually our research shows that we will hit $1.5 trillion investments in digital transformation globally, growing at about 15%. So we are literally hurtling towards our digital destiny.

Phillip Carter: We're moving towards a digital first mindset, not just at a business level, but also at a personal level, societal level. I think we can feel that we can see that. But the problem is that our pre pandemic research showcases that only 26% of organizations are really delivering an ROI from all of those investments. So that's the digital ROI gap as we call it. And we need to close that, in order to drive the next phase as we move to reignite business, across the board.

Sarah Nicastro: Mm-hmm (affirmative). That makes sense. I know that as I conducted interviews with business leaders throughout last year, there were kind of two ends of the spectrum. There were folks that had already invested heavily in digital transformation and we're feeling very thankful that they had done so. And then there were folks that realized how much they were lagging behind and how critical it was that they get up to speed. So the efforts have increased, but we have that 25%, ROI metrics. So why is that gap so big?

Phillip Carter: Yeah. So, that's a good question. And I think what you described there in terms of that K shape, we call it the K shape recovery in a sense at an organizational level, because there are some organizations on the up slope of the K, that are leveraging the investments in digital technologies to drive competitive advantage into the market. And then the ones who are fighting for survival based on the fact that they were slow to adopt some of these key technologies. And so the reason for this major digital ROI gap, we also asked, we've kind of went into the research on this and ask the follow on questions. Like what's the problem here? And the primary reason is the inability to scale due to organizational silos. So that's the key thing, the key piece of feedback, these barriers across traditional organizational structures which are linked to the legacy technology architectures of the past.

Phillip Carter: But second on the list, which is also interesting, and I know Fredrik, can talk to this, is that the feedback is that IT and security leaders slow us down, so that there is a sense that business and IT need to come together in a more cohesive fashion in order to drive that scale, we call it the digital dream team. So moving from the C-suite to the future, which is the digital dream team where every business function becomes a technology function. But, they need to raise the tech IQ across all of those business functions, but IT needs to be at the table as well. Technology needs to be part of that discussion and helping to drive the outcomes that are required to pose that ROI gap.

Sarah Nicastro: Okay. All right. So Fredrik, can you tell us a little bit your perspective on how, what Phil's describing aligns with what you've experienced?

Fredrik Tukk: Yeah. Thanks Sarah. And thanks Phil, for the analysis for sharing that, that's really interesting stuff. Yeah. And as Phil also alluded to, things are happening much faster these days, and technology is taking more and more a central role in many ways, but what you used to have is that IT department was building the foundation for the company and say, you can execute then you can get the data from us. But these days, many times you find new technologies or new vendors that comes to you with a different technology perspective where you can execute. And the lifetime also own this, and especially around the COVID times, it hasn't been focused on the ROI. It's been focused on actually delivering a value to the customer that might not be measurable. One example I have from our industry, when you couldn't travel now.

Fredrik Tukk: So not as you used to in the, during COVID, when we need to have a technician or a maintenance person out to the rig, you fly them out by the helicopter and do the maintenance. But now in COVID, it wasn't so easy. So you have to find a way of actually utilizing new technology and actually do remote maintenance, for instance, where you utilize the people on board, but you have the experts on shore. And that's something that has been more focused on, you don't have a direct ROI on that. That's not a business decision, it's a necessity to keep the rig going. So you need to find the solution, where then technology played a major part that, that solution wouldn't come from IT, in the first instance, you need to find someone who can deliver that to you today, and just make sure that it works because you have a maintenance problem or a challenge on the rig.

Fredrik Tukk: And that's why you need to find other ways of working with these solutions than the traditional way, as Phil alludes to. And also then the first and foremost, it's not your ROI, because that's more a strategic business decision. I'm saying, "We do this so we can have an ROI on it that we see that this is good for the future of the transformation of the business, but here is more specifically focused on solving an issue here now that you might only have for six months or 12 months, but you need to solve it."

Sarah Nicastro: Okay. That makes sense. So, Marne Fredrik is speaking to sort of the internal look at what this means and what's needed in terms of evolving to look at things a bit differently, but I'm wondering if you can speak to, how a technology provider like IFS, what is the responsibility there, or what is the assistance that IFS can provide in helping close this ROI gap?

Marne Martin: So let me talk to pick up a couple of things from Phil and Fredrik, and then answer your question as part of that. So first I would say that Fredrik raises a critical point that often is not communicated or well understood, what technology investments support, the continued evolution of the business, i.e., the growth of a healthy business profitability, et cetera. The strategy that they might already be executing on, but they do need additional technology to continue supporting that growth. So effectively the ROI is already in a way buried into that growth strategy of a business. And then you also will have what I call inflection point investments, that will genuinely give ROI on their own. And often those either enable an increase in revenue or greater profitability, or something like that that has a very tangible ROI.

Marne Martin: So I do want to layer in that clarification, because we often find gaps that we can help bridge as a vendor, looking at say, upside cases, what are continued execution of strategy cases, and then what are really say a ROI cases. And we do that through business value engineering, and then how we plot the project and the outcomes that maps to kind of which of those buckets is primary in a business. Ultimately we want all of our customers here at IFS to grow and grow faster ideally than their peers. When you think about the digital dream team, one I love that concept. And I like to talk a lot about sport analogies. And since two thirds of the panel is in Europe, I'll give an example about Premier League. So often the business feels they are the offense, and we need them to be the offense, but there's either a perception. And sometimes the reality that IT is playing defense and slows down the offense.

Marne Martin: So we need to be thinking about how we get a full team to be working together. And you have the coach for the leader that will really bring them into the Premier League. And that's where I think often when we're looking to scoping out and moving also from the handover of the signaling to the implementation, to the longer customer success phase, we often don't have that coach or a leader that can bring, say the offensive and the defensive elements together to work as a team and specifically a Premier League team. So that's where we have activities and actions that we can continue to drive and be better at, as part of IFS as a vendor. But we're also looking to how we can enable the leaders and the coaches in an organization like Fredrik is in his organization to be more effective. And to the extent that there isn't that type of leader in the digital dream team, that we call that out and work with our customers to address that.

Sarah Nicastro: Okay. That makes sense. Fredrik, can you talk a little bit about, from your perspective, how would you articulate what it is about a traditional or legacy IT mindset that just does not work for today's digital transformation efforts?

Fredrik Tukk: Sure. Yeah. And really good points by Marne there. I fully agree with your analysis there, it's really interesting. The things we see, I see happening both here and in other companies, when it comes to this digital transformation is that there is for some natural reasons as well, lack of flexibility and adaptability to take on new technologies and test them out on the side more or less to the legacy system. And I have examples where we have come up with startups we're working with, that comes with a technology that might be set in a different cloud setting, for instance, a different cloud solution. And then we say, "We need to have that." They say, "They need to be hosted in whatever AWS or whatever."

Fredrik Tukk: And then if I come to my IT department, they say, "No, we are Microsoft, no discussion." And that just shows the flexibility, because if you could do that to be more flexible, and I understand why they also can't just say yes to everything, because it's a gigantic task of evaluating this and from a risk perspective, and everything else, since you need to have some structure as well, but with increased speed in change, in digital and the need for being out in the market, go to market needs to be fast. They need to be able to be flexible in that sense. We have an example where we now developed a solution with an external startup, where our, IT department's struggling for years to find a solution for building a performance driven tool. And the startup comes in and do it in two months, when we eventually get to go ahead for it.

Fredrik Tukk: It doesn't say that the old is the best solution, but it does say one example being, where you need to be taken into that flexibility and see who else can actually come in and do it in a non-traditional way. And by that solving your problem and go to market much faster.

Marne Martin: Sorry to jump in Sarah, but I think as we, it's like the emerging technology often the digital dream team, or a lot of these companies don't have say incubation or early adopter phase programs, or if they do, they get stuck in POC. So, how are they able to embrace new technology, whether it's from an existing vendor or a startup, and then really commercialize that, understanding the different phases of technology maturation, adoption, et cetera, is it always as crystallized and taking that sort of approach in companies? And I think that's what handicaps them to a different degree that they're not thinking about say technology, say development, almost like how you develop talent, that you're putting it to work, you're continuing to test it. You're continuing to evolve and challenge it. And eventually going back to my Premier League example, you have your Premier League star.

Phillip Carter: And I think also just building on that. I talk quite a lot about this notion of four wheel drive innovation, which is taking the speed and mindset from the digital innovation initiatives around the edge, into the core as well. And that's basically saying, "Okay, we need to evolve quickly so that there can't be two speeds of technology investment or technology adoption, or business direction." It needs to be one speed. And that speed is a lot faster than it currently is. but that involves people like Fredrik who sits, digital innovation initiatives, pushing those, the agenda on the frontiers to come also to bring that mindset into the core, well across all of the different business units. And that's part of the digital dream team stepping up to this new level around digital investments and outcomes associated with that.

Sarah Nicastro: That's a good point. So I think I have a related question Fredrik, to follow-up on the point you made. Okay? So bear with me. So Marne gave the analogy of offense and defense, right? And so my question when you talk about, having that startup come in and put this solution in place in two months, that you had been struggling to do internally, how do you do that in a way that doesn't further that offense defense divide, right? And kind of exacerbate the problem of that divisiveness within the organization?

Fredrik Tukk: Yeah. That's a really good question. The way we have done it is that you need to, you need to work together, you need to make sure that both parties move, because there's no like one answer is the right one. It's not that you only do startups, so you only do core, but you have to cooperate, both need to move away from where they are. So in the beginning where we actually took in the startup to improve the existing solution that the internal team had built, to emphasize that, but in that process, they also came to realize that actually the startup had a better solution that we then went with. So that that's one way of doing it, to work together. And the other thing that is, building on Phil's point here is that, it's also things that companies like us or any old company with a legacy, not only in IT, but the legacy in general and during the digital transformation, is we don't use to that.

Fredrik Tukk: Now we're starting to build software, basically in our company, we're launching or building that. And we don't have a tradition, IT doesn't have a traditional company. We need to find new ways of how do you do that? What's the competencies we need? Do we want to build them? And the classical discussion we can have that as a separate discussion. You want to build them in house then, or do we want to buy them? And all these discussions, that's something which all companies I think are struggling with in order to see, how do we want to do this? And that's, of course, again, something you need to do together in cooperation, we need to bring in the startups to challenge the existing IT, to some extent, and they need to come back to us and challenge us and say, you can't do that because it's a lot of other legacy systems and we need to have a control, and it's also risked with security and everything else.

Fredrik Tukk: But I think it's also a sort of a middle ground. And it's a transition period as well, where you go from being, saying that IT used to service the traditional business, while now we are getting into more, having a software side to it, at least, where we develop software and that's requires new skills.

Sarah Nicastro: Mm-hmm (affirmative). Okay. So there's an issue of pace. I'm sorry, Phil. I didn't mean to cut you off.

Phillip Carter: I would add to that, because I think it's a great point that, Fredrik made, but I will also say that what we see here as a way of driving that alignment across the teams is a focus on metrics that everyone signs up to. So if you're coming back to that remote maintenance example, that use case that Fredrik highlighted at the beginning, if you've got a metric around meantime to resolution for that use case, and IT, and the business, and digital or oh, working towards that, suddenly there's a different level of alignment. And you bring that speed from the innovation areas, into the core, as part of the fact that you guys are all going to be measured on that outcome. And therefore the behavior is in line with what is expected at the end of the day.

Sarah Nicastro: Mm-hmm (affirmative). Okay. So, we are talking about fostering more collaboration. Okay? We're talking about, Marne the point you made about, you need a strong cultural leader, i.e., coach, right? That's going to help the team see that we're not offense and defense we're one team, right? And then, Phil, to your point, if you can align around metrics or measurements that everyone agrees upon that are driving toward a consistent goal, those are all things that can help alleviate the issue of these silos, which is, as you said, Phil, one of the biggest contributors to the ROI gap, open to the floor, so any of you can jump in. What else? So what else are the important considerations or pieces of advice for folks listening, in terms of breaking down these silos, creating this collaborative culture and aligning more toward a common objective?

Marne Martin: I'll jump in with incentives and compensation, and then I'd love to hear Fredrik's thoughts from being in a company and obviously, Phil's from the research. So often we see and this ties into, I'd say, bridging the divide between speed and outcomes is that, we need the key businesses focused on the outcomes that matter most in their transformation projects to make sure that they deliver against them, that you don't have scope creep or other opinions that take you away from why you did the project in the first place. But we also find that sometimes with business and IT incentives, how they're compensated and what project success means to them isn't aligned. For example, if IT is compensated on speed of implementation, they might say, "Hey, let's just copy what we have. That's what we know best. And therefore we can be the fastest at that."

Marne Martin: When really the business won't get what they wanted out of the technology investment to meet their goals without taking that into account, the change management and additional training, et cetera. So I'd be really curious to hear more. And in general I see this across every single customer we support, in these initiatives I'd be really curious to hear, Fredrik's view on how best that can be tackled pragmatically, and then also Phil's related to the research and his recommendations.

Fredrik Tukk: That's a very, very interesting point, Marne. Again, so, yeah, my first take on your question, Sarah is also, I think that most of the products we have now that are, you could call this digitalization projects. They are actually initiated by us in innovation, not by IT. And the reason is also, I think because of the culture we've fostered and built up in innovation where it's a dare to try, it's fine to fail, you can fail. But if you do fast, instead of doing this, I don't say that everybody does waterfall, but it's like bigger products most of the time. I mean, and the face implementation is a big product and our thing.

Fredrik Tukk: And of course, that's one thing. But on the other end, these digital products we run we need to try out faster and dare to try, and they can fail, and that's fine. But also, like you say, Marne the whole incentivizing of how you run these projects and why you should do it and everything is super interesting. And, I guess, Phil, have some good comments on this research from other companies as well.

Phillip Carter: Yeah. I mean, it's top of mind, around kind of time to value. So that's the balance between speed and outcome, just thinking about the time to value story. And I think there are a few things that we see changing. Number one, regardless of the technology project, they are getting shorter. So even if you think about a large scale ERP project of the past, that took five years, that's no longer acceptable. It has to be months, weeks, at least in terms of some level of time to value from the project. Secondly, the idea that a business case is created once and then thrown out the window once the project starts is also not acceptable. So you have to have a dynamic business value realization approach for the week long or two weeks, or three week, the sprints that are put in place in that much more agile fashion of rolling out a project, regardless if it's going to take a year or two to finally end, but you have the checkpoints every week or month to say, "Okay, how are we relating to the metrics coming back to this, or metrics and the incentives and behavior?"

Phillip Carter: So I said with that, to, Marne's point, on an ongoing basis. So it becomes a much more dynamic. It becomes, an element that the elements of that dream team are engaged with and are measured on, and therefore are, they're bought in upfront and then they actually contribute to making a success. The last thing I would say is that, you look at the software vendor relationship with buyers overtime. And historically, there has been a mismatch in terms of expectations. And now we see that there's a big change in, Fredrik's point around, the rethink around bill by partner, acquire, that's happening, it's really happening.

Phillip Carter: And if a software provider isn't able to deliver that time to value in the shorter timeframe that I described, the buyers of technology will find a different way to do it and to deliver it, to, Fredrik's point earlier two months to deliver that time to value, because the business has to get that outcome in a much shorter timeframe. So those would be the three things that I would highlight associated with that story around value realization.

Marne Martin: That's actually a great, those are great points. And it made me think of something else. So, I talked about, sometimes we don't have coaches or leaders to the degree needed to really drive a transformation, but I'll also say that sometimes projects aren't a bit scope for what they are. Some companies really are going through a learning journey, even though they're contracting for something, they don't know, say what value or what actually they want delivered yet. Okay? Other companies have really well understood their innovation plans, their business models, where they want to go, et cetera. And then we're really, that brings almost like a template if you will, for execution. And then it really is about optimizing time to value. So I think it is super important.

Marne Martin: And we're trying to do a better job working with our customers, with the idea of this return to value understanding, are we implementing off of kind of a well understood strategy template, they know what they want to do? Or is this really more of a learning journey that we need to assume that, we need to move as quickly as possible through the design phase, knowing what we know, but then we're going to have multiple cycles potentially of rework UAT, et cetera, or we'll have different phases of adoption, et cetera. So, we need to be able collectively all of us to drive for more clarity on not only say the digital maturity of a company for the point that everyone has made, but also is this a learning journey project, or is this really more of a template implementation, business value realization?

Sarah Nicastro: Yeah, I think that's a really good point, Marne. And it makes me think earlier on in the conversation, as we're talking about the silos within the company being one of the biggest barriers to ROI, in the content that I work on, those silos are also one of the biggest barriers to servitization or advanced services, or realizing the opportunity of more strategic service. Right? And so you kind of have two parallel journies happening where, to your point, depending on where the company is at in sort of the business journey, what's the business model? How are we innovating? What have we been and who are we trying to be?

Sarah Nicastro: And how well-defined that is and how much alignment exists on those objectives, and how much the silos have already been eliminated in that effort will have a huge impact on what that digital transformation journey looks like. Right? Because it is really, the huge enabler of all of that progress, right? So that's a really good point of kind of the, intersection points along those settings.

Marne Martin: For sure. I'll make one other point, which I know Phil has research on, and perhaps you won't ask Fredrik to comment, but, and I'll explain why in a moment. It's interesting, and there was a really fascinating piece of research that I read in the last few weeks about how digitally competent most CEOs are. Right? If you think about how most CEOs are promoted and get to the C-suite, it's a lot of the business acumen, the relationships with customer, shareholders, et cetera. And the majority of their career, they won't be in the digitally active cycles like we are now, whether, just kind of how Moore's law is to say bleeding into everything that we do in technology, including how organizations need to adapt or, this post-COVID era. So, I read this statistic that only about 25% of CEOs feel that they understand how to drive themselves digital realization.

Marne Martin: And it made me wonder that we should look at perhaps the correlations, of the 25, approximately percent of companies that are getting ROI from the digital investments. Does that match to say the more digitally aware experienced CEOs? Yes or no? How do we not only need to think about business and IT at the implementation level, but also of how we're working with the C-suite and boards. So, I'd love to hear your thoughts Phil, on this. And again, I have no idea if there's actually a statistical correlation or not, but I just thought it was really fascinating research.

Phillip Carter: Well, yeah, absolutely. In line with a lot of what we're seeing on it. So based on our C-suite survey, we asked the question, so who's most likely to be the next CEO in your organization. And first of all, it was COO, second was external hire and then third was CTO. So that's the first time that we've seen the technology leader on the leader board effectively on the career development path. And it reflects a new reality where to your point, you need that different understanding around digital and technology capabilities, in order to deliver the new value. So if you look at, there's really interesting dynamic happening at the moment where there's a correlation that we're looking at between digital maturity and actual valuation. So market valuation, because we've got an index that tracks digital maturity by company.

Phillip Carter: And we look at the stock price overtime and you can see a clear correlation. So what does that mean? Well, for the CEO, it means if I'm chasing value, then I need to chase tech, which means I need to ensure that I've got the right level of skills in the organization. And if I'm the CEO, then I need to also ramp up my capabilities in that respect. I need to appoint the right technology leader. And there's a huge amount of change in the technology leadership happening in the market at the moment, because of that. And I might have to acquire some tech companies, which as you see that ramping up, we've had two inquiries in the last week of healthcare device manufacturers asking about software acquisitions. So, just I think you will see, so it's and the CFO linked to that, is going to have to become a lot more savvy around valuation of tech as they make those investments around what's the price to pay for the tech.

Phillip Carter: And you, again, build by partner. So that's a fascinating part of the outcome of this acceleration to our digital destiny that I highlighted earlier. But I don't know, Fredrik it would be great to get your perspective on this, because I know the CEO of, Maersk Drilling is kind of big behind the digital transformation of the broader organization, but any thoughts on how you see that evolving?

Fredrik Tukk: Yeah, it's an interesting observation, Phil and yes, our CEO three years ago when we brought this up, that we wanted to drive digitalization much more and try it out. He was behind that, and has been supportive of it all the time. So he's actually... And, I guess it's also because he sees his own limits within this space at the same time he sees that it's a good thing that we as an organization learn this and try out stuff. So he was very supportive of that, but it's like I say, it's not only in [inaudible 00:34:23], I've spoken to a lot of other C-level people. And one guy in another company he said to me, that when we were discussing, he said, "I used to not believe in this, with a lot of digitalization. And I said to people, you can't make money by getting clicks. I was wrong." He said.

Fredrik Tukk: And that's the whole new economy basically. So he said that they changed their minds. So the more example, if they see, and the more transformation that is happening around, more and more companies now also C-levels saying that we, we used to make money off of our core business. And now we see startups come up or other companies moving much faster and we need to do something about it. And so they are awakening to some extent. So that's interesting to see.

Phillip Carter: What's starting, because I've done a bunch of CEO interviews recently and what I'm starting to hear is that the untapped potential around tech as being open to them. So they seeing this, one of them is a train operator and they managed to get access or transfer ownership of a new trained in the midst of a lockdown completely remotely, similar to the remote example that Fredrik mentioned earlier. And now they're not going to go back to an onsite delivery of that asset, it's going to be complete... Because they realize it's cheaper, it's more efficient and the customer experiences data. So that's just a portal into the potential that's in front of them. And I think as a result of that, the next question is, "Okay, how do we make sure that this is scalable and outcome is driven across the organization?" But I hear a lot of what Fredrik described in terms of, I used to think this way now I realize that it needs to be done differently and it's going to be a big part of the business model moving forward.

Sarah Nicastro: Yeah. It almost seems, in terms of the CEO role that it's really overcoming any sort of legacy thinking or culture, it's more of an awareness and a willingness to put the right team in place than it is necessarily having to have, the skills themselves. Right? And, and I think that's reflected when you start looking at the organizations that are making the most progress and then, look at what the mindset of that leadership is. Fredrik, I wanted to come back to the point about, looking into the future of digitalization, your thoughts on some of the work you're doing on building out that ecosystem and the importance of co-innovation with customers. Can you talk a little bit about that?

Fredrik Tukk: Sure. Yeah, because we come to realize yes, as Phil said before as well, that you need to take these decisions on, do want to build it or buy it or co-created, or have a strategy on that? And the best way we found out is that if you... We need to start with the customer needs. And it's so easy to forget that, but you say to the bigger organization, they think that you have a lot of knowledge, you build something, that then the customer doesn't really want to need, or at least don't want to pay for. So you need to involve them early on, which we do now in all the products we're on, basically stores based on a customer need.

Fredrik Tukk: But then again, if we need to have the flexibility and the agility, to build these things, we don't... If you're going to scale up that internally or taking an external supplier, that you have a traditional working relationship with, it mostly takes too much time and as Phil before, the lifetime expectancy of solutions, now the digital ones are shorter and things go faster. It's easier to copy as well from your competitors. So that's why we are looking and taking more and more startups to actually deliver this to us. Because if you find the right startup and that's, of course the challenging is, is to find the right data flows, to find the right startups and evaluate them, to make sure that they can deliver this.

Fredrik Tukk: But if you find them, because I can guarantee you, they are out there, whatever your problem is, as startup, you can do this today. There's many, and they are also developing so fast. They also die very fast. So you have to be aware of that. You need to be quick and you need to help them to grow. But if you do that, then you have a much more flexible, structure. And as Phil said, as well, the example I gave before, where we now built a solution with two months, I never met that startup physically. I found them online, we negotiated online, they delivered a demo online, they deliver the product online.

Fredrik Tukk: We have been talking to them, I have teams all the time. So we never met them, you don't have to. Before it was like, you need to see them in the eyes and say, "Hey, yeah, and we need to have a beauty parade with X number of companies as procurement would ask you for." And these days, when we find someone that is like, we can do this maybe for 80% of the solution, we co-create the rest together, because that's the fastest way forward we see, so.

Marne Martin: For sure, I think, related to the innovation cycle and how we build an innovation here at IFS, that is something that continues to accelerate. And of course, we're doing it both for point solutions, as well as a broader platform. The start a point is interesting, having done startups in my career, early on in my career, I still love how we can partner with these startups, right? And even IFS as a vendor, there are times that we also will work with them on how we can enable, say a go to market structure, how we can think about embedding them into our applications to accelerate what we're doing and even acquiring them.

Marne Martin: So, what's great is that you see vendors like, IFS that are really looking to how they can be more flexible, faster and more progressive in terms of bringing innovation of the various type that's needed by customers, to satisfy their end customers. But also, one of the parts of, that I enjoy at my job, is getting to know these startups and the ones that are, validated as being in our key verticals and impactful for our customers, thinking about how we can either partner on a go to market or continue to make some interesting acquisitions.

Fredrik Tukk: Yeah, and that's a good point, Marne where everybody's like you say, trying to be more agile, more flexible to you also as supplier can see that, you have the opportunity to bring in knowledge on some cutting edge technologies, to improve your product. But it's interesting, because there was one of our biggest products that came to be a couple of months ago and said, "We have this huge challenge, and we think it's going to take two years to build it, but we heard that you are connected to startups, can you find someone that can do this?" And I had this, and I presented them with three startups. They interviewed two of them and came back to me and said, "That's amazing. These guys can do this in three months. And they are exactly what we're looking. We didn't know they existed."

Fredrik Tukk: And that's also an eye-opener for my companies to see that there are other ways of doing this, than the traditional way. And that's also where you need to be. It doesn't say that startup is the only answer or the answer all the time. It's just that, that alternative that many corporates hasn't considered that before. And now you see that with the increasing pace and everything, you need to look into it at least to see if that's an option.

Marne Martin: To be pragmatic. Again, a lot of companies won't necessarily be as progressive as Fredrik's, and there'll be concerned about the risk of the startup, them running out money before they can deliver et cetera. So, it's always a balancing act, but it's absolutely is true that there's such a vibrancy of new technology and innovation that's present today. So, for example, if there are startups that can get validated with an enterprise customer, but maybe stall out at 1, 2, 3, 4, 5,000,000 and in revenue, which is often the case, at that point, they often have an inflection point, do they say start the private equity journey and how that is?

Marne Martin: Do they align with the strategic, et cetera? And I think, here at IFS again, we are working to be more and more nimble, and we bring a lot of very impactful technology to market as part of ERP, FSM, EAM, et cetera. But also, sometimes I laugh at Fredrik who'd be, almost our corp dev department, letting us know which startups he thinks are most cool for us to go look at, to talk to.

Phillip Carter: I think it's a new business model for Maersk Drilling to be the startup to connect that.

Marne Martin: Exactly the issue in point.

Sarah Nicastro: There you go.

Marne Martin: But you really don't know it. Having run startups myself. I mean, there is such a big step for a startup to move from alpha to beta, to really true enterprise GA. That is not to be underestimated by anybody. But to the extent you can get a startup at exactly the right inflection point, and do that at a value that is accretive, per Phil's point, that is really interesting. And of course, something that we also do at IFS.

Sarah Nicastro: Okay. Good. All right. So I'm going to ask you all one, sort of closing question of my own, and then we're going to try and have a couple of minutes for a few audience questions. So just in terms of summarizing our conversation so far today, if each of you had to give sort of one key piece of advice for listeners on how to prepare for the future of digitalization, what would that be? So I don't know who wants to start. Phil?

Phillip Carter: I can go-

Marne Martin: Can I go first and then Fredrik-

Phillip Carter: ... Yeah. You go on.

Marne Martin: ... and Phil wrap it up, with their insights. So, we've talked a lot about technology and what have you. And technology is what powers our daily lives, our businesses, our future. But the one piece of advice I have to all of you is don't forget the people aspect of it and specifically you need the right type of leadership to be successful, whether it's a digital transformation, new business models, your company continuing to perform. So you need to make sure that you are analyzing, assessing, recruiting, developing, making sure they stay happy, the leaders in your organization, the people that are going to make this happen. Because technology doesn't get implemented on its own, business value doesn't get realized on its own and if you don't have the right leaders in your organization, then you will be, not able to leverage technology projects, opportunities that you otherwise have.

Sarah Nicastro: Good. Phil, do you want to go next?

Phillip Carter: Okay. Yeah, I will let Fredrik close it off with his wise words. No, so why recommendation is get the order right. And what I mean by that is start with the business. So what is the use case? And then the measurement associated with that. So then you measure and you drive the performance of the back of that, and then comes a technology. So use case, metric technology, and then build up, the use case journey. So that becomes the new digital roadmap to prepare for the future where horizon three, the longer term mission is clear and the whole digital dream team is on board and agreed on that ultimate mission, and then execute along that roadmap. So get the order right.

Sarah Nicastro: Good. And Fredrik.

Fredrik Tukk: Yeah. I'm trying and find some value based on all these fantastic advice, as you know, from Marne and Phillip, mine, and it's a personal reflection basically, but I came to realize this, in the last couple of years, got to try, don't sit and plan for too long. Don't sit and think, oh, we should find someone else, we should do this. We should plan more, give it a go, give it a try. The worst thing can happen is you fail. But if you do it small and fast, no big harm done. And the other thing then to do that is to start small. And then when you notice it's actually functioning, then you can scale it, but don't plan for this massive product that's going to take four years, it's like dare to try.

Sarah Nicastro: Very good advice.

Marne Martin: I love that. I mean, the soft skills of courage and curiosity I think are under analyzed as necessary components to successful digital transformation. I think that's a fabulous point Fredrik.

Fredrik Tukk: Thanks.

Marne Martin: Yes.

Sarah Nicastro: Absolutely. Okay. All right. Let's get to a couple of audience questions real quick before we close. So the first is you mentioned the digital dream team, but for a company where projects have traditionally been led by business or IT, how do we determine who the coach is? So who leads the digital dream team?

Marne Martin: So I think coach the change. Phil will have some other insights on kind of the personas or the roles perhaps that have been most successful. But I think you need to look for the people that can work through the conflict. Make sure, keep the team on track, being able to motivate and drive the courage and the curiosity to actually get it done. So there are certainly, and I'd love to hear Phil and Fredrik who kind of the archetypes or the personas that also most frequently rise to the top, but, I encourage people. Don't just think of it from a functional perspective. Think about it as who has the enablers to it done and that that person might come from finance, or might come from sales, or might come from operations, IT, you don't know necessarily where that person comes from. It might also be a C-suite sponsor.

Marne Martin: And then, you can figure out once you have the person that has the right leadership and soft skills to run the change, how you compliment that. I love the point that Fredrik made that, you don't necessarily need a CEO, that's a CTO, but you need someone that sets the agenda and make sure that the project, the talents are all staffed appropriately.

Phillip Carter: Yeah. I mean, I would say building on that, that it's much less about the title, but more about the personality. And so I think it's the classic T-shaped person, someone who's strong in key detail areas where it linked to the project at hand. So they need to understand at least the domain associated with the use case, but then have those emotional intelligence so to speak, in terms of courage, in terms of curiosity, in terms of engagement, bringing people along, dealing with the friction, picking up the ball, running with it. So I think that that's more of the personality type that should lead. But then there's the question of, it shouldn't be business or IT driven. Now my view on that is, if it's more of a specific area, which is driven by a specific business function, then the business needs to lead more clearly.

Phillip Carter: If it's more kind of a platform based approach, which cuts across multiple functions, then IT probably needs to play more of a role or maybe not IT, but that the technology leader, that digital leader that should be able to cut across those areas. And I think that the new type of IT leadership are able to orchestrate, and so budget stakeholders, architectures across that platform. And if they're not able to then new people step into that frame, and those are the new leaders, right? So the new digital leaders that we see emerging, that would be my take, I don't know if Fredrik, if you've got a perspective on that.

Fredrik Tukk: No, I fully agree, Phil because like you said, if on one hand, the business are closer to the customer and the market, so they might have some insights, but they might not have the understanding of how to drive, or to tell what the solutions should be, then it's better that you keep actually the IT department who are more in the forefront of the technical development to lead it, so I fully agree with your analysis there.

Sarah Nicastro: Okay. All right. Let's get to one more question, real quick before we close, which is our last digital initiative, did not go well. And how do we bounce back from that, from a cultural perspective?

Marne Martin: Fredrik, I think you have the lead off answer on that one.

Fredrik Tukk: It's an interesting question of course, you know what I mean? There have been probably marketing needs as a big thing, and the big change, and if it's a failure, then no one has the belief in the technology. If it's a specific technology they were doing or that product, and then how do you get people convinced? And again, back to my point, I think then you need to start small and maybe you should launch a couple of other initiatives, that you can get some pilots or something that shows that this is actually working. And then you take the biggest steps and launch it at the biggest scale, because then people will build back the belief in it, and see that it is actually working. But if you do it in a different way, maybe... And then of course you can make an analysis on that specific products and why did it fail?

Fredrik Tukk: Was it resistance? Was it lack of knowledge or the resource? Or whatever it might be, you find the reason for it. But then again, I'm a fun believer in saying that you can show and prove that it's working in a small scale, then it's easy to scale it. So that's my point. I'll take on that. And Phil's probably have some good points as well.

Phillip Carter: Yeah. I think what we've heard is this notion of moving to a ritual descent type of model, where you are willing and everyone accepts the idea that you should take feedback. If something doesn't go according to plan, then you have an open discussion and people provide their feedback. You're not allowed to defend yourself. You basically hear the feedback and that there's no blame off the back of that, and you move forward quickly. So that, that's a culture that, I mean, you've got to develop that culture overtime. If you're used to have a blame culture, then it's difficult, that's the objective, if you can get to that, then it's amazing what can be done because it's a sense of honesty, but at constructive feedback, as part of the conversation.

Marne Martin: 100% agree with that, I think, organizations that are very, very political and kind of what I call zero sum type organizations that someone, there's winners and losers, that's really hard to implement the type of culture that Fredrik is talked to, dare to dream, dare to fail, dare to innovate. So, the advice that I have is absolutely, even though people don't like doing postmortems and sometimes it's hard, do one that's very honest and think about how you remove the impediments of the past failure, and then make sure that you're doing projects for the right reasons. I can't comment too much on the reason for the failure without understanding more, but it might be that had the wrong expectations or the wrong team, or what have you. So, digesting it so that you don't repeat, say the reasons for the failure again is really important.

Marne Martin: But you also have to have a culture that does allow people to move forward and take some chances. Because even the best performing people in the world, and I'll go back to my sports analogy to wrap up, every time they have a strike and goal, they don't make a goal, every time, LeBron James in the U.S takes a shot he doesn't necessarily make a point, right? Even the people in the hall of fame in baseball, didn't bat 100%. So you have to figure out what your tolerance level is for failure and mount that into the cultural expectations of the business. Obviously you want to minimize that, if you think about statistical normal distribution, you want most of your projects to be successful. You might have some small tail positive ones that far exceed the expectations, but you're also going to have some failures, i.e., your small tail negative outcomes. And in that you have to recognize and move forward on.

Sarah Nicastro: That makes sense. Very good insights. So Fredrik, Phil and Marne, thank you so much for joining me today. I really appreciate you all being here and sharing your wisdom. So, thank you for that. And everyone that joined, thank you as well. Be sure to visit IDC and IFS, to find some of their content. You could also check out Future of Field Service, and hear some stories from the industry. Thank you for being here and hope everyone has a great day.

July 14, 2021 | 17 Mins Read

Modernizing Technician Utilization for Today’s Field Service Objectives

July 14, 2021 | 17 Mins Read

Modernizing Technician Utilization for Today’s Field Service Objectives

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Ian Pattinson, former VP technical operations at Rogers Communications, talks with Sarah about how the perception and responsibilities of a field technician have changed, the need to prioritize use of your most skill resources, and how compensation can make – or break – performance.

Sarah Nicastro: Welcome to the Future of Field Service podcast. I'm your host, Sarah Nicastro. Today, we're going to be talking about an important topic, which is modernizing technician utilization. We all know that today's field service objectives are far different than they were five years ago, even in some instances a year or two ago. What are the ways that we can modernize how we're leveraging our field technician resources? I'm excited to welcome to the podcast today, Ian Pattinson, who's the former vice president of technical operations at Rogers Communications. Ian, welcome to the podcast.


Ian Pattinson: Good morning, Sarah. And thank you very much for having me.

Sarah Nicastro: Thanks for being here. Before we get into the meat of the conversation, tell our listeners a little bit about yourself.

Ian Pattinson: Oh, great. Good morning. Well, I've loved working in the telecom industry for the last 25 years. I started out in technology development, network operations and technical support, and then grew into a VP roles and product development, new business general management, and most recently completed field technical operations with the very large Canadian cable and wireless operator that you just mentioned. I'm really an executive that thrives on driving change transformation with a very hands-on delivery of achieving the plan and its results.

Sarah Nicastro: Okay, great. Well, we're excited to have you here sharing some of your experience. We're going to talk about how to maximize utilization, but before we do that, let's talk about some of the ways that the perception of, the use of, the responsibilities of field technicians have changed in recent times.

Ian Pattinson: Yeah. Yes. It has been a massive change, and I really look at it both in two ways, that it's changed both internally within companies and externally in the industry. Firstly, internally, from a service provider perspective, it's really changed from being what was a necessary installation obligation that we had on a hundred percent of orders being done by generalist technicians. Now in a world where we've got advanced self-installation by customers themselves, and then incredibly complex homes because the customer's homes are coming increasingly more technically complicated as we begin to 15 plus devices and beyond in homes. The technician has really become that key strategic asset for the service provider who is the trusted technical advisor that is welcomed into a home by customers and really becomes the face of the brand. It's also one of the biggest operational costs.

Ian Pattinson: It's a massive opportunity to drive compounding material improvements across the P&L. Then looking at stonewalling at the greater marketplace, there are several iconic consumer brands out there that have already delivered on new spectacular service experiences. Combined with pervasive social media and these increasingly more complex homes, customers’ expectations have really increased, and their tolerances for problems have really decreased. That has really increased the technical needs and skills required by technicians. I think if we even look more recently and you touched on it there, the pandemic has really created a massive public visibility to the frontline technicians who have taken on great personal risk to actually keep delivering on the essential home services that we all now rely upon. They are very much front and center part of a service provider brands.

Sarah Nicastro: Yeah. What's interesting to me, and on this podcast, we have folks from a variety of different industries. Even as you look outside of telecommunications, that key concept that you brought up, which is technicians being leveraged more strategically, that might look or feel a little bit different industry to industry, or whether you're servicing consumers versus businesses, et cetera. The reality is, in almost every situation, every industry, every organization that we're talking with that is a key objective, is to evolve that relationship from one that is transactional, obligatory, as you said to one that is strategic and value added, and more relationship-based and really a way to differentiate the brand. I think that's a really exciting change, but it's one that requires a lot of evolution in terms of evolving what that field technician role looks like. I want to talk next just about what has that happened first? Which, in my opinion, is this recognition of the potential that that role can hold beyond that transactional historical duty.

Sarah Nicastro: What do you think is the difference between organizations that adopt this mindset or this belief that they can leverage technicians strategically versus organizations that don't necessarily see that potential?

Ian Pattinson: Yeah. I think that's a great question. It's a big change and it's an enormous opportunity for companies. In my experience is that the change starts with the text being seen truly as that new strategic asset opportunity and formerly becoming part of the corporate strategy so that it spreads company-wide to get that buy-in and becomes embraced as that key opportunity, because it needs full cross functional collaboration, everywhere from finance to marketing and, and beyond. It's not just about the operations groups going in and doing something new that might be marketed. It is a true cross functional collaboration, because it's really about evolving the entire service model from recruiting, training, compensation, career development, rewards, process redesign, and then the critical dispatch systems that are actually the lungs, particularly a service providers business. It's also really critical to transparently involve the frontline workforce themselves to help collaborate on the new strategy and achieve that real buy-in where they really believe in it and live it. When this all comes together, it's really amazing to see the sea change that gets delivered for customers, employees and the company.

Sarah Nicastro: Right. But the coming together part is not so simple. I have a couple of questions on that. The first is just, you mentioned the buy-in of the frontline workers themselves. In your experience, I'm just curious, if you had to maybe tie a percent to how many are excited about that opportunity versus hesitant or resistant to doing something different than that more historical model?

Ian Pattinson: Well, it certainly starts up, starts out and it's a multi-stage process. This is not a one-time thrown speech to the front line that they've all heard multiple times and it's lip service. It has to be a change management program that is organized advance with those cross-functional teams, because again, it involves changes to compensation and rewards and process redesign, et cetera. Like any large change management activity, you've got to go through those different phases. In the initial stages, there are going to be a third, a third, then a third. There's going to be a third of the group that are really pumped and really get it and, are really bought in right at the very beginning. Then there's going to be a group that's kind of in the middle, and then there's a group that has seen it before, done before, it isn't going to work. So, the change management strategies that have to really address each of those different constituents, because you've got to have everybody on onboard.

Sarah Nicastro: Okay. The other question I wanted to ask is, we talked about the importance of this being a cross functional effort and there needing to be alignment company-wide on the evolving use of service and the technicians themselves. What's your advice on what it takes to achieve that alignment?

Ian Pattinson: Well, again, I think it's back to that formal change management program. My experience has been that we've got some incredibly great suggestions and techniques that have come from some of the cross functional teams. If I go back several years to when I was in the product organization, I didn't even know what the name of our dispatch system was. Now, that's a really critical component of it, and we really got some great, great suggestions and techniques that came from the different cross functional groups. Confidence breeds confidence. If it's just coming from the operations team, it's not as real as when it is becomes part of the vocabulary of the entire organization in terms of what the opportunity is, and then it becomes electric and contagious, and you receive tremendous buy in.

Sarah Nicastro: Okay. All right. So the next thing I want to talk about is, we're talking about maximizing the use of our field technician resources to really evolve our service model to one that is more strategic and more focused on customer experience, customer relationships, being seen, as you said, as a trusted advisor. To do that, there's an element of re-skilling or up-skilling, and getting your technicians to the point where they're confident enough to handle those interactions, but there can also be an element of eliminating some of the work from their plates that isn't that value add work. I want to talk a little bit about that idea of how do we prepare our technicians for this new role, and then what's the opportunity to leverage contract workers or to offload some of the duties from them that are not that value add strategic work that we want them to focus on?

Ian Pattinson: Yeah, I think you're right. As those customer homes become more technically complex, so does their work and their tools, the skills required and the training that's needed. Not every technician can be a top level expert on all skills and all points in time, and then in the future, with technology changing so quickly. I think if you just look at the wifi, for example, how much wifi has changed in the last three years with WiFi 6, 6E, pods, dynamic channel selection, bands tearing, et cetera. It's a complex world. With generalist texts and generalist orders, this creates a growing risk that the order may not get implemented with the [PFO Spalding 00:15:17], and the reality is that there is a stratification of complexity of orders, and this is a big opportunity, both at the more complex at the orders as well as at the lower end.

Ian Pattinson: By breaking down the install and repair process into several technical skills and levels, joined with all the disposition and telemetry data that is widely available now, this enables the matching of the skills of the technician to the specific attributes and needs of the customer. This dramatically increases the probability of getting it right the first time, first time right being really, really critical, and eliminating a lot of the breakage and the inevitable downstream costs that create a much better customer experience. I think if we continue the example of wifi and using your example there with contractors, there's a big difference. If we look at two different kinds of homes, there's a really big difference between the installation and troubleshooting and training needs that are required for a fairly low value order that is just basic wifi in a small home versus a high value order that has near a gigabit Wi-Fi speed needs and intermittent interference issues from a large home.

Ian Pattinson: With dynamic skills-based dispatching, the highest skilled technicians are dynamically dispatched to these complex overs, and the lower skill resources are a lower task and time order, and can be assigned. Those technicians are also creating a career development opportunity for those lower skilled technicians. Lastly, with the dynamics skills dispatching, simple orders don't end up getting overpaid if you've got just a single task for types of orders, and then the complex orders don't end up being underpaid where quality gets risked because not enough time has been allocated.

Sarah Nicastro: Okay. Ian, over the coming years, how do you see the use of contract workers evolving? Do you see it growing? Do you see it staying the same? What do you think the role leveraging that type of workforce plays in this quest to become more strategic?

Ian Pattinson: Yeah, contractors are a big asset, and I think there is a bit of a false word out there that contractors just do the low-end work. My experience has been that some of the best quality work is done by contractors, but the contract partners really enable the ability to post in terms of capacity and can be an opportunity for other types of low value work as well, based on dynamic dispatching.

Sarah Nicastro: Okay. All right. Okay. Let's talk next about compensation, you've brought up compensation a couple of different times, and the need to consider what your compensation model and strategy is as you work to evolve the role of the field technician to become more customer centric. What's your advice around this topic?

Ian Pattinson: Oh, yes. This is absolutely critical. This is probably one of the penultimate examples of where that strong cross-functional collaboration is required to evolve the compensation model and career development, frankly, from what has been a traditionally a tenure based model to a skills and quality based performance model, truly cross-functional. Quality levels need to be determined and continually monitored based on a variety of a bunch of different data points, like day of the install success rates, task codes usage, post-install device telemetry performance in terms of how well the home was actually operating after the installation was done, along with correlations with the post-install technical support call dispositions and customer satisfaction surveys. My experience has been that after only a short time, the data clearly demonstrates the correlation between specific quality problems, and skill and compliance gaps.

Ian Pattinson: Automatically tagging under threshold performers for management triage and attention of retraining is really, really important. It's beyond just the compensation and career development and rewards, delivering this new model also requires investing in a new training curriculum, data analytics reporting is fundamental, and that moreover allocating the right amount of task time to do the work properly, and then empowering individual technician discretion when additional time is required, because now they're actually being measured and performing based on quality. When that quality gets delivered, it just pays back in spades. It takes senior management conviction to drive that change management program that we were talking earlier on to create what can be slightly more complex order stratification, and increasing and decreasing task codes, but the total cost of ownership improvements do come from what are reduced downstream, repeat calls, repeat visits, more satisfied customers with higher retention, higher tenure, and frankly, more satisfied the technicians that do a better job.

Sarah Nicastro: Okay. I want to come back to that, but I have one question before we talk about the impact on employee and customer satisfaction, which is, you mentioned a lot of metrics, and so when you start measuring on quality, there's a lot of ways that you can look at that quality and a lot of those metrics that give you insights, as you mentioned, on where are the gaps. What do we need to address? How do we improve this overall? What that makes me curious about though, Ian, is from an employee perspective, how are those, or are those metrics, do they need to be simplified in a way where maybe the company is looking at 15 different criteria to glean the insights they need to determine who needs training or where do we need to intervene? Or what are the common themes, if any, that we see?

Sarah Nicastro: But I assume you don't want the technicians having to follow 15 metrics of their own performance to gauge their level of success. Is there an internal versus employee facing way that you would order those things, so that for the technician experience, it's a little bit more streamlined and they're able to easily see how they're tracking? What would that look like?

Ian Pattinson: Sure. I think it starts with that the scorecard has to be transparent, and it has to be easily explainable, otherwise it's not credible and you won't get that buy-in. I mentioned a couple of the different dimensions that are fairly well understood by the front line, and you would give them full visibility to that. And then the more complex, deep analytics that is going to cause the model to keep evolving, is really the more private side of the ongoing analytics. But credibility of that is absolutely critical. It impacts people's compensation, and so it's got to be credible, it's got to be transparent and explainable and easily understood.

Sarah Nicastro: Okay. You mentioned that this takes a lot of hard work, but when it's done well, there's a positive impact both on employee and customer satisfaction. The customer satisfaction part seems pretty straightforward to me. You're evolving the model to focus more on quality and really focus more on the customer experience, so I can see how that would have a positive impact on them. I'm curious, though, if you can speak a little bit to that, and then also, how and why does this impact employee satisfaction so much?

Ian Pattinson: Certainly. Totally agree. It's fairly straight forward on the customer side that more satisfied customers are going to call less, tenure is going to be higher, et cetera, and that flows through the entire P&L. On the employee side, I don't think it's well known in the industry that most techs really do care about the work they do and they want to get it right for customers. I think this is starting to become more visible. If you think about it as a tech, and I've been there, it's quite demoralizing when you don't have the skills or the tools to be able to fix the problem. Nothing worse than being embarrassed in front of the customer that you can't fix the problem, or you've got to have someone else come back to do the work. Again, conversely, when you do have the skills and the tools to fix that complex for the customer, you become the hero with the customer. To me, it's a bit of a simple philosophy that happy customers stay longer and drive less trailing costs, and having employees stay longer and do better work.

Sarah Nicastro: Yeah, it's really the ultimate story of teamwork, because they want to do well, but perhaps in certain situations, they're just not set up process-wise or system-wise to have that opportunity to always be doing well. If you recreate the process and you put systems in place that essentially do this element of matching the right skills with the right roles, then they have almost a bullet-proof chance at success when they arrive. That makes sense. They feel more fulfilled because they're showing up, they're getting work done, they're making people happy, and then they're moving on to the next thing, instead of being at jobs that they're not equipped for, or what have you. Yeah. It's a win-win. We've talked quite a bit on Future of Field Service about the correlation between employee engagement and customer satisfaction, and I think there can tend to be... I don't want to say an overemphasis on the customer side because it's critical, but sometimes companies overlook the real importance of, how does all of this impact our employees? How do our employees feel? What do our employees need?

Sarah Nicastro: Because if we can get that right, our chances of success getting the customer side right are infinitely higher. That makes sense. All right. Ian, the last thing I want to talk about is the role of modern technology in all of this. There's a lot of internal alignment, which we talked about. First, you have to have the right mindset that this evolution is possible and it's a fit for your company. Then you need to get everyone on the same page, including the front line and cross-functionally, and look at how do our processes need to change? How does our compensation model need to change? Et cetera. But the other big element of this is leveraging modern technology. Talk to us a little bit about how important that is in this ultimate mission.

Ian Pattinson: Certainly. I think earlier used the term that the dispatch systems are truly the lungs of the service provider organization. Yes, the billing system may be the heart, but dispatch systems are the lungs. It really is a massive enabler of a lot of the customer, employee and financial opportunities that we've been talking about here today. My experience has been, moving to a standard based product that was cloud-based really resolved kind of three key issues with an old on-prem system. The first is that the old platform just couldn't deliver on the new strategy. It had been so highly customized, was no longer standard product, and hence was incredibly slow, expensive, and risky to change. It's just a horrible, dangerous combination there. Secondly, that the infrastructure on prem became quickly outdated, had slow latency performance from more and unpredictable usage, needing expensive hardware, uplifts, and then, of course, corresponding software dependencies from the new hardware changes, again, driving millions of dollars of costs and moreover orders to implement. Change quickly is absolutely critical. Come to the last key area was around stability and availability problems.

Ian Pattinson: I know the on-prem systems typically around 98% availability, when you do the math on that, that's seven days of downtime per year where no appointments can be made, technicians stuck in customer's homes and thousands of frontline staff waiting for systems to come up and extremely frustrating for customers. Again, my direct experience of moving to a cloud-based standard product resolved those three key areas. System availability went to over 99.9%. That's less than 10 minutes per month, which is just huge. We'll talk about building credibility with frontline technicians, systems stability is one of the top three for them. Number two, incredible system latency performance, because the cloud-based platforms can dynamically adjust to sudden increases in demand. But I think, most importantly, that the standard ultra-low customized product really enabled the ongoing rapid delivery of new features and capability that keep the platform current with constant new product development improvements and security updates.

Sarah Nicastro: Yeah. It's interesting when you talk about the use of technology here, it can't do all of the hard work for you, but without it, all of the hard work is for not. If you did all of that hard work, all of that alignment, all of that change management, and then you still had outdated, unreliable technology in place, it's all for nothing. It is, like you said, the ultimate enabler of having success with making the most of your technician resources and your service objective. Good. Ian, before we close, do you have any other comments or words of wisdom that you want to share with our listeners?

Ian Pattinson: Well, I don't know if it's wisdom, but let's face it. I think you've pointed out there, dispatch systems haven't historically been sexy to work on and frequently seen as non-strategic cost centers. They don't really get changed that often. Frankly, I mentioned earlier on most people don't know the name of the platform. Even when I was in the product team, I didn't know the name of that platform, but moving to that standard product cloud platform is just so enabling of improving the entire service model. It is, again, just amazing to watch the results both financial, customer and employee, like we've talked about, that get delivered when the company embraces and collaborates around the new platform. Frankly, it's something, having done it, I'm really proud of what our team delivered.

Sarah Nicastro: Good. For those listening that are using really outdated technology, now is the time to do some research and find something that will take you into the modern era. Good. Well, Ian, thank you so much for being here and sharing your experiences and insights. I really appreciate it.

Ian Pattinson: You're quite welcome.

Sarah Nicastro: You can find more by visiting us@futureoffieldservice.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 about IFS technology at ifs.com. As always, thank you for listening.

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July 7, 2021 | 25 Mins Read

How to Change to Win

July 7, 2021 | 25 Mins Read

How to Change to Win

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Sarah welcomes Rias Attar, accomplished business strategist, transformation expert, operational excellence leader, project and change management professional and author of the new book Change to Win, to discuss how strategy, delivery mechanism, and culture all play a part in embracing change to respond successfully to market pressures.

Welcome to the Future of Field Service podcast. I'm your host, Sarah Nicastro. Today, we are going to be talking about how to change to win. Many of you are on some path of change. You're transforming your businesses. You're transforming your departments. You're transforming the service that you provide to customers. We know that change is very important but can be challenging. So today, on the podcast, I'm excited to welcome Rias Attar. He is an accomplished business strategist, transformation expert, operational excellence leader, and project and change management professional who is also the author of the new book Change to Win. Rias, welcome to the Future of Field Service podcast.

Rias Attar: Thank you, Sarah. Thank you for having me here.

Sarah Nicastro: Thanks for being here. So before we dig into the conversation about change and how to change to win, tell our listeners a bit about yourself.

Rias Attar: Well, I have been in the project management, transformation business optimization field for the past 25 years or so. I started in finance, and then I moved into project management and turnaround and transformation, being inspired by a couple of CEOs who I've seen doing magic at their organizations, turning around their businesses and moving them from deficient to profitable. I worked for different companies like General Electric, DHL Express, Caesars Entertainment. I also have done some work for companies like Dannon, the yogurt company, Maple Leaf Foods in Canada, some other smaller organizations as well.

Sarah Nicastro: Mm-hmm (affirmative). Interesting. Yeah, I like that you referred to it as magic because it certainly does seem that way sometimes. I wrote an article not too long ago talking about how much of this is art and how much of it is science, right? It's really a little bit of both, but there might be some magic sprinkled in there too, for sure. Good.

Sarah Nicastro: As I said, I've been in this space for about 14-ish years and there's so much change that's happened. And while it is really exciting in a lot of ways, I realize that it is also incredibly taxing and challenging for the people that are required to spearhead that change. So one of the things that happens, I think, is that people and/or companies or both can get stuck in the, "Nope, we've always done it this way. We can keep doing it this way," mentality. As the pace of change, I think, in the overall environment speeds, those people with that mentality sort of fall further and further behind. What do you see in that regard? How many of those people or organizations do you think there are compared to those that are willing to embrace change? And what is it, do you think, that keeps people stuck in that mindset?

Rias Attar: Excellent question, Sarah. We are part of a constant change. The problem though is I think over the past maybe 20 years or so, that change has accelerated significantly. And I have to say probably over the past maybe year now with COVID, things have even accelerated at a much faster pace. The issue that I see most of the time is as human beings and even businesses, we start small, we start aggressive. We want to conquer the world. We want to learn things. We want to do something good. So we reach a point where we actually are successful and doing very well. And then we start building walls around us and build that comfort zone.

Rias Attar: So as we think that we are now great and we know everything and we are doing very well, we start to get very kind of complacent a little bit, may be the term, and maybe a little bit of resistant to change, because we now have this comfort zone. We feel happy and easy and safe and familiar. The newer companies that are now coming with cutting-edge technology and they're nimble, they're coming now with their own phase of, call it, conquering the new world. So that's where they start to get into the customer mindset a lot easier, and maybe adapt quicker while we are kind of somehow stuck in that comfort zone.

Rias Attar: So I feel that organizations that feel that change is a threat may suffer versus the ones who actually see the change as an opportunity generally succeed. They try to get out of that comfort zone to learn new tricks. They expose themselves a little bit into that danger zone and then to that learning zone. And then they start realizing their new growth zone. Once they get into that limit, they look back, and they will say, "Why did I not start earlier? I wish I started earlier. Oh my God, I don't believe I was locked in that comfort zone. Now I see a whole new horizon." This is kind of what you just mentioned, because this is what I refer to in my book, Change to Win. I ask the leaders, "Do you know what the business death sentence is?" It's actually a sentence that business leaders and owners often repeat, which is, "We have always done it this way." That sentence becomes their own death sentence, their business death sentence.

Sarah Nicastro: That's really good perspective. I think you could almost say that there's even a less obvious death sentence of today's businesses, which is, "It's working well." Right?

Rias Attar: Yeah.

Sarah Nicastro: To the point you just mentioned, if you look at this almost as a continuum, I mean, there's these people that are, "No, we're in our comfort zone. We've always done it this way. We're going to continue to do it this way," either out of fear or pride or ego or complacency, whatever those things are. And then there's people who don't perceive themselves as averse to change but have achieved that level of success you referred to where they say, "No, I mean, we did innovate and we're doing great, so we can stop it here and just bask in our success."

Sarah Nicastro: It reminds me of a conversation I had with a gentleman named Sae (Kwon) who at the time was with Cisco. We talked about weighing the decision of disruption, right? So when do you decide to disrupt things? But talking about the fact that in the world we live in today, as prevalent and fast as innovation occurs, if you wait until you recognize the need to change to change, you're at best keeping pace, right? So for you to really be ahead of the curve, you need to be doing it when you are successful. Does that make sense?

Rias Attar: Yeah. I mean, you see the thing is there are maybe two phases here. The first phase is realizing that you actually have to change and realize that fact because, again, you're faced with market conditions or you are faced with customer demands, with newer technologies, with competition, with a higher input cost, with new mergers and acquisitions in your industry that are posing stress, maybe with crisis and catastrophic events like COVID-19 and else. So you realize that there is a need for change. So this is the first hurdle, you realizing that, "Okay, well, I have to change." Right? That's the one thing. Because many people do not actually that shift. To your point, they will just get stuck with that, "This has worked in the past. Maybe we just need to continue." Well, maybe. Maybe you can still maybe are able to succeed at the limited success factor here, but how about maybe if we can multifold, maybe if we can increase that success? How about maybe you don't yet realized the opportunities you have? And maybe that success that you currently enjoy has a limitation maybe a couple of years, three, four years. If you do not do something about it today, you would be way behind in a couple of years or so.

Rias Attar: That's the first hurdle, realizing that you actually need to get out of that comfort zone and get into that change. The issue that we find most of the time is that companies and individuals, sometimes, when they realize that they need to change, okay, they say, "Okay, got it. We decided to change." They leave that comfort zone, they get exposed a little bit into that danger zone. They hit the break, and they go back to their comfort zone, all right, because they see so many issues. I mean, we can talk a lot about this. They may have legacy systems. They may have issues with their culture and internal culture, maybe there's industry, whatever it is. So they pull back without really continuing that momentum. And that's kind of another aspect of, okay, you started change, and somehow you either face some limitations and decide to pull back, or you're stuck in that endless gray phase, which is always not reaching your future state. You're always lingering in that interim state, which is what we sometimes we get stuck into, right? So there's really those two phases, I really feel, happening.

Sarah Nicastro: Yeah, okay, that makes sense. If we look at the differing opinions or emotions around change, so you have people that view it as a threat, and then you have people that view it as an opportunity. Let's use the term people and businesses interchangeably in this context, right? So what do you think is the key to shifting the mindset to perceiving change more as an opportunity than a threat?

Rias Attar: I mean, these days, if we don't change, really, I don't know how long we will be able to survive. I mean, the thing is with everything that's happening to us, I mean... Again, I hate to always refer to COVID-19, but because this is where we are at this point of time. But when you're faced with something like this, the companies who are nimble or that are nimble and able to adapt quickly, those are the ones that are actually increasing their market reach. They are increasing their market segments. They're hitting record-breaking profits because those are the ones who actually were able to adapt quickly and leverage the new environment to their advantage. So if you do not really change, there's so many companies that just filed for bankruptcy because they couldn't adapt to that change. I'm just giving you an example.

Rias Attar: So it's really a necessity, but at the same time, I always go back to the vision of the senior leadership team or the owner of that organization. Are they there for the long term? Are they there for years and decades and generations or are there for months, or maybe just a couple of years? I guess it depends on their priorities. So that vision and mission really set the tone. If their mission and vision is long-term, then yes, they need to figure out how they can leverage those threats and turn them into opportunities. I always also refer to this as reversing the risk from negative risk to positive risk and capitalize on those and potentially either introduce a new product line, a new service, a new way of thinking, a new culture, a new innovation, or something like that.

Sarah Nicastro: Mm-hmm (affirmative). Talk to me a little bit more about that concept of negative risk versus positive risk. And maybe just contextualize that a little bit more for the listeners and talk about why one is really good for the business and the other is not, right? Talk about that a little bit more.

Rias Attar: Yeah, I mean, definitely. Look, when you are in any market environment, there are just so many, again factors, new interest to the markets. Globalization is another one, right? Now we're borderless with the internet and with connectivity. I mean, companies in China and India and somewhere, they're competing for the same products and services that the companies that are in here in the United States because they can provide maybe similar services. Maybe not the product, like physical product, but maybe a service per se. So how can you compete when you're seeing all those companies who are providing the same or similar service or product at a fraction of a cost? How can you? You see this as a risk, and then you come back and it's like, "Okay, well, I'm going to lose my business if I don't do anything about it. So how can I leverage that as an opportunity?"

Rias Attar: Many times when we are the only company in the field, we don't really need to innovate. We don't really need to think outside of the box. We don't need to bring new products or services. We're just happy because we're the only ones. But the interesting element is when we are faced with threats. The companies that generally succeed will take those as an input. And they start to generate even more products or complementary services or something similar to that, that would make them superior in that marketplace and even a better profit margin and a better customer segment and so and so forth. When I refer to the negative risk, turning that into a positive risk, that is particularly something that those market leaders... And again, you don't need to be a market leader sometimes. Maybe you don't have the capital or the money to be a market leader. You can probably be a strong follower. Maybe you can see a leader in the market who is doing something, and then you learn from their mistakes, and then you go there and capitalize on that, and you become also successful in your industry.

Rias Attar: But the point here is we should never stop. We should always seek improvement. And that's how we call it continuous improvement. You should always seek opportunities to improve, whether in innovation, whether in technology, whether in reprocessing, maybe in different people, like training and bringing your people skillset to another level, whatever. It is people, process, technology, and data. We'll talk about data also in a second, yeah.

Sarah Nicastro: Mm-hmm (affirmative). Okay. All right, so I like that point of negative risk versus positive risk. All right, so let's talk a little bit, Rias, about the insight you provide in the book. So we're talking about how businesses can succeed in transforming operations to meet evolving market demand, so how can they change to win? So you talk about some different elements that you know people need to address with some balance. So let's walk through these a bit. We have strategy, delivery mechanism, and culture, and change management. Talk a little bit about each of those. Obviously, you can't give the contents of the book away in a 30-minute podcast, but give us some food for thought.

Rias Attar: Yeah. So remember, we just talked about realizing the need for change and bringing that mindset that I need, or as a business, I need to do something safer, better, faster, maybe cheaper, right? So let's say you recognize that need... And again, there's a whole section in the book about resistance to change and what that means as so on and so forth. But let's say you realize that, "Yes, I need to change." Many companies they realize that need, they hire consultants. They put neat presentations. They assign fat budget for that transformation. They tell their employees that they need to change. And then few months later, nothing happens or it happens very, very slowly.

Rias Attar: What I noticed was there is the three, I call it, the three-legged stools in my book, which, as you just mentioned, the strategy, the delivery, and culture. I would actually like to explain this in an example. Where are you located at Sarah now?

Sarah Nicastro: I'm in Pennsylvania.

Rias Attar: Okay. So you're in Pennsylvania, and you decided to go to New York City. You have a powerful vehicle, a good engine, a powerful vehicle, and you hit the road but you don't have a Northern star. You don't have a navigation system. You don't have a map. You don't have a strategy. You don't have a vision of where you're going. You may end up in Miami, not in New York City. Because, again, you don't have that Northern star that guides you. You have a powerful engine. You're doing work. You're burning tires, you're burning fuel. You're wasting time, but you end up in a whole different place. And that may not be ideal. That place may be actually not optimal for you, or it could present some danger as well to your business.

Rias Attar: The first thing I talk about is let's have a set strategy. Let's make sure that our strategy is good and it's aligned, and we have a good one solid roadmap for the future. Now suppose that you have that roadmap, but you don't have a good vehicle, and that vehicle stalls every few miles or so. Run out of gas, there's something wrong with tires or whatever, or mechanics. You may never reach your destiny. Even if you know exactly where you're going, and you have perfect roadmap, you may never reach that destination, and you may actually reach that destination, but it would probably be too late. That boat may have sailed. So you may need to have that balance between, "Okay, I have the right strategy. Now I have that good delivery mechanism."

Rias Attar: In business, you cannot do things alone. You need to have people around you. You need to have people smarter than you and better than you to help you deliver your objectives. So you need to have, or you should have, the good culture and build so that people will not jump ship along that journey, and then you will be alone and probably never make it to the finish line. So that's why you always need to have that equilibrium, or maybe balance, between strategy efforts, delivery effort, and cultural efforts. Sometimes you put way too much money and effort on strategy, but we don't do a good job on, "How can we put a good project management methodology? How can we put a good operational excellence methodology? How can we make sure that we actually deliver those objectives?" And sometimes we do, but we don't really do change management very well so we don't really help our people adapt to change quickly or properly for us to reach that end state.

Sarah Nicastro: Mm-hmm (affirmative). Okay. So that makes perfect sense, but I want to challenge you a bit on the change management topic because this is a topic that comes up all the time in our conversations. It is probably the go-to answer when I ask, "Well, what went wrong?" That being said, while it is widely recognized as an area of importance, it continues to be under-prioritized, under-invested in, and under-executed. Do you have any tactical advice for this whole concept of creating a culture of change and managing change well?

Rias Attar: Yeah, I mean, there are many concepts for change management. The one I normally use is called ADKAR, which goes for awareness, desire, knowledge, ability, and then reinforcement. When we are introducing any change from current state to any future state, the first thing we do is we want to bring awareness to people, to have that awareness element. And we announce it. We announce this initiative that we want to change, right? You want to hear people saying, "Yes, now I know what you're doing."

Rias Attar: Next one is desire. You want to move from just awareness to the people desire to be in that journey. And you want to hear people saying, "I decided to help." Right?

Sarah Nicastro: Mm-hmm (affirmative).

Rias Attar: And then when you reach that point, the next phase is knowledge. You want to provide them with training, with coaching, with support to help them cope with that change. So then you will hear something from them like, "Now I know how to do it." Now, the most important element is that there's a huge difference between knowledge and ability, which is the next phase. Now, Sarah, you and I may be, let's say, the last people on earth. I may have some issues with my heart. And I will say, "Sarah, in order for you to save me, I'm going to give you 17 books on how to do an open heart surgery for me. Will you be able to operate on me after reading 17 books?" Probably not.

Sarah Nicastro: Right.

Rias Attar: You may need years of practice. I would actually be scared to have you operating on me-

Sarah Nicastro: You should be.

Rias Attar: ... because that ability, that difference between knowledge... You acquired the knowledge, you already read 17 books. But there's a huge difference between knowledge and ability. That's why we say change management is important because you have to go through all those phases. And then of course, data is reinforcement. Reinforce that message. Reinforce that change. Many organizations realize that change management need maybe at the 11th hour. And then they were like, "Oh, wait a second, we need to work with our people. And we need to bring that adaptability. We need them to gain that change adoption." But probably they're too late. So why investing in people is so important? Because there are the ones, most of the time, that are using the system. They are the ones who are facing customers every single day.

Rias Attar: Investing in people increases competitive advantage. It ensures happier customers. It actually solidify the business growth. It increases the efficiency in work and actually attracts more quality talents. I mean, good people attract good people. So that's why investing in people and investing in change management will pay its dividends because you will be able to reach your destination faster and better and more efficient.

Sarah Nicastro: Mm-hmm (affirmative). Okay, all right. Another question I want to ask you related to change management, so you brought up COVID a couple of times, and one of the things that I've noticed is when COVID first began unfolding, I wrote a few articles about how situationally, it was actually increasing open-mindedness and making people more receptive to the idea that we need to change because it was this huge force that came through. For companies that needed to quickly adapt, it just was something that they changed. And then I think there was a number of people that were like, "We can do it."

Sarah Nicastro: As time went on, though, another conversation that started to surface is the idea of how weary people are at this point, right? So now that we're 15, 16 months into this whole thing different industries, obviously different regions, the journey has looked different for different folks, but just the idea that a lot of frontline employees are weary. COVID has taken its toll on them as it has on us all. So the question is, with that in mind, how do you continue the necessary journey of change while being conscious of maybe some of the emotional exhaustion or mental burnout of the people that you ultimately need to get on board?

Rias Attar: That's actually a good question as well. I mean, it's definitely something that businesses are seeing. People may have lost some loved ones as well, and that may have also added some pressure, and to your point, they are tired. Many people have went through furloughs, and now they feel the need to go back and think about job security and so on and so forth. I mean, it's always nice to keep close to your people and hear what they're saying and what's bothering them, what ideas they may have as well. Because remember, the brightest ideas come from the frontline. They're the ones who actually see customers every day. They're the ones who actually use the systems and tools every single day, so not the executives. We sit in our offices.

Rias Attar: Sometimes we have that visions, but if we do not listen to the feedback. And that's the power of data. I think collecting data, collecting feedback from people would help us understand where to navigate, whether it is some sort of like, "Should we train them on new tools, like the science aspect, or is it more about like comforting and more about maybe just maybe train them and coach them on the art, which is like how to deal with new different situations. Maybe it's just more about providing them with other ways to do their business and how they can do it efficiently. I think the message here is, again, remember, it's continuous improvement.

Rias Attar: Many organizations now post COVID, and again, remember, those are the many, many successful organizations who were able to bring new tools and techniques and made them so efficient, they're looking back, and it's like, "Why we didn't do this before COVID? I wonder why we haven't done this now." So now they're thinking about this now post COVID era, it's like, "You know what? We should probably continue doing this. Many organizations, for example, are now utilizing Zoom and other video conferencing tools and maybe not leasing expensive space anymore because they feel, I mean, it's unnecessary.

Rias Attar: So going back to your original question about the people and how weary they are after COVID, I think it's important to retrospect a little bit and look at the positive side and think about... And now we're towards the end of that, hopefully, that cycle, and now we're posing for a new growth hopefully, and what that looked like, what will be the next phase? Let's think about that. Let's think forward. But realize that if soliciting feedback and listening to your customers, your employees would hopefully help you significantly position your business for success.

Sarah Nicastro: Mm-hmm (affirmative). It makes sense. It's just a point I wanted to bring up, because to your point, you can't overlook the people, part of this, right? So depending on the industry, the company, the region, the role, what have you, I think it's important to take that temperature check and just be cognizant of the fact that we as humans have gone through a lot. And so maybe there's an element of this next wave of change where you need to put some effort into re-energizing or giving people some reassurance or whatever that looks like for your team. Okay. Rias, I wanted to ask, I'm curious your thoughts on the role of technology when it comes to changing to win.

Rias Attar: Yes. It's no secret that technology, especially over the past 20-plus years, it's improved significantly. Everything from a technology perspective really starts with data. I always like to bring that topic because before maybe the internet era, data was so precious. We used to lock those data in our offices. And now, since we are plugged in, probably there's not so much data that we can hide or we don't have access to. But the problem now there has been an explosion of data. And so what do we do with all this data? So this is where you start, from a technology perspective, you probably need to collect the data, whether it's in regards to your current technology that you're using, your competitor's technology, or your customer's needs, what they want.

Rias Attar: It always starts with data. What exactly I need to do based on current benchmarking, where I am compared to my customers, where I am compared to... sorry, compared to competition, compared to trends, compared to customers' expectations, and so on and so forth. So after collecting this data, you start to transform this and work on changing from just simple data to information. What does this data tells me? So moving from data to information, and then that information tells me, "Okay, you may need to move from servers to cloud." So maybe you need to move from, I don't know, green screens to what we call green screens, which is like the old Microsoft AS400 system to the new maybe Windows or latest systems. That gives us a knowledge. Now, the information becomes a knowledge. Now we know what to do with it.

Rias Attar: Now, the art is using that knowledge and create a wisdom. So what exactly we want to do with it? So now we collected the data, we formed some information. We now acquire the knowledge. Now we have to do something about it. When we talk about technology, the newer organizations, Sarah, usually are quite nimble. They kind of have the latest and greatest tools and techniques. They don't have that technical debt. We call it technical debt, just the old codes and systems, and solutions. So they are able to move quickly and swiftly between different demands or market changes and so on and so forth versus the fairly older organizations who have huge systems in place. They're finding it very hard to change that technology that they have to adapt to the newer customer demands and customer needs.

Rias Attar: Sometimes they may have to reap and replace this whole technology, which that journey takes years of preparation. It's not that easy. Everything is connected, most of the time, in that kind of spaghetti-like diagrams. The one thing that I think COVID taught us was the roadmap that used to take us 10 years or five years, now we have to do it in months. There's a lot of urgency. There's a lot of now we're doing this at a much-accelerated pace. Because we probably do not have time. If we do not do this now, new competitors will potentially eat our market share and will drive us out of business. So technology becomes not only a need, it becomes a necessity. And now you don't have to always have the cutting-edge technology because you may not really be able to afford it. Or it may be very expensive for you. So you have to balance. Do you need to have the Toyota or you need to have the Ferrari? That's where, I guess, the business, it depends on the industry, but sometimes you just need a vehicle to move you from point A to point B. Sometimes you may actually need that higher cutting-edge technology. Technology becomes not only a need, it becomes a necessity and opportunity for success in the new era.

Sarah Nicastro: Yeah. I like the point you made about a lot of the newer, more innovative by nature companies have less of a technological legacy to overcome, right? So they're starting fresher in that regard, which makes it easier to iterate and continue to modernize versus someone who's trying to do this wholesale upgrade to current times and then go from there. Okay. All right.

Sarah Nicastro: We're almost out of time. I just want to talk about one last point, which is we were talking at the beginning about the, "We've always done it this way," mentality and breaking out of that, right? We talked a lot about the recognition that it's time to change. But the reality for 2021 and beyond is that it is never not time to change, right? This isn't a situation where you break out of that mindset once, you chart the path, you walk the path, and then you are done with it, and that's that. This is really a more ongoing situation at this point. So talk about that and what you advise in terms of having that continuous improvement mindset and looking at this less as a project and more a state of mind, I guess.

Rias Attar: Yeah, an excellent point. I highly recommend that the strategy also becomes a little bit fluid. It depends on what's going on. Sometimes you may set a five-year strategy, which is good, but sometimes things happen, and you may need to adjust mid-course a little bit and adjust your roadmap based on things that happen. I mean, there's this agile kind of mindset, which is like, "Okay, let's go through an iterative delivery. Let's not keep stuck in this. Okay, we set that strategy for five years." Now, this is good. I'm not saying this is not good, but sometimes things happen. And when things happen, you may want to adjust mid-course a little bit in order to hit that bullseye. My recommendation is to always stay close to customers, understand your market needs, understand what the customers are saying, what they are demanding, who are the new players in the market. You may probably not know unless you start learning from customers. You may need to reevaluate your own processes and your own technologies and your own way your people are dealing with customers based on feedback that you're getting from customers.

Rias Attar: Now, again, sometimes you may get an overwhelming feedback. You just need to filter exactly what actually makes sense to your business. You may sometimes need to draw that some sort of customer journey for your customers, starting from the need, or want, or awareness all the way through like research and concentration purchase, maybe returns, maybe disposal, and then maybe advocate or promote of your service and product. The point here that I'm trying to say is try to stay close to your customers, listen to them very well. Try to stay close to your employees, and also listen to them very well. Have a good strategy that you set in mind. And the same time, make sure that you always, maybe every year or so, try to revisit that strategy and see if it actually makes sense.

Rias Attar: And then as you go along, make sure that you have that delivery mechanism. You want to make sure that you are advancing towards that strategy, whether that strategy is organic or inorganic, what exactly you're trying to achieve, and then how you're going to achieve that. And then, as I mentioned, that continuous improvement mindset is based on continuous feedback that you get throughout your journey from your customers, from your employees. Make sure that you are actually hitting that mark. If we continue to realize that we always need to think strategically and think about how we can get out of that comfort zone to that growth zone, and during that path, we realize the feedback, or we re-evaluate the feedback and we change mid-course, and then we actually capitalize on certain things, I think, generally speaking, you will be able... or those businesses will be able to be positioned for success and realize sustainable competitive advantage. It's not only periodic competitive advantage but sustainable competitive advantage.

Sarah Nicastro: It makes sense. Rias, let folks know where they can learn more about you and where they can find the book, Change to Win.

Rias Attar: Yeah, so they can always go to riasattar.com, R-I-A-S-A-T-T-A-R.com, or they can find the book on Amazon, Barnes & Noble, on Target, like anywhere. They can just Google Change to Win, Rias Attar, and they will find it anywhere there. They can also reach out to me on LinkedIn or through my website, www.sayaplus.com, S-A-Y-A-P-L-U-S.com as well. They are more than welcome to ask any questions.

Sarah Nicastro: Excellent. Well, I appreciate you being here very much. Thank you for sharing some tidbits. And everyone, be sure to say hello to Rias on LinkedIn, and also to check out the book. In the meantime, you can find more content by visiting us at futureoffieldservice.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 about IFS by visiting ifs.com. As always, thank you for listening!

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Sarah talks with Scott Lowes, Construction Supervisor at FortisBC, about his love for technology, his excitement in seeing it permeate field service, and his advice as a change champion for how to make technology palatable, how to foster adoption versus just compliance, and the joy of the “aha” moment when it takes hold.

Sarah Nicastro: Welcome to The Future of Field Service Podcast. I'm your host, Sarah Nicastro. Today we are going to be getting some real world advice from a change champion. I'm excited to welcome to the podcast today, Scott Lowes, who is a construction supervisor at FortisBC. Scott, welcome to the podcast.

Scott Lowes: Hey Sarah. Thanks for having me.

Sarah Nicastro: Thanks for being here. Before we dive in to our content for the day, tell our listeners a bit about yourself and your role at FortisBC.

Scott Lowes: Yeah. High level, I'm somebody that is always on the move but I'm always doing something, whether it's tinkering on stuff around my house, figuring out a way to brew better coffee, all that stuff. I'm always doing something in my personal life and then at work, I've been with FortisBC for about 14 years now, just over that. And throughout that time, I've had every job that we've gotten the field really. I've been through our construction department, putting in gas mains and services, then moving into our field customer service department, dealing with our customers forward, facing that way and then also working down at our liquefied natural gas plant. Pretty technical job there. And then most recently I have now made a change into our project management office as a construction supervisor. That's me in a nutshell.

Sarah Nicastro: And in case anyone isn't familiar with Fortis, give the overview of the organization.

Scott Lowes: Yeah. FortisBC is a natural gas and electrical utility in the province of British Columbia in Canada. We supply natural gas and electricity and I've been on the natural gas side of the industry. We operate and maintain our below ground gas utility and we provide all of the service for that. And so dealing with our customers that have gas meters on their houses and all that pertains to that. So there's a whole lot in there.

Sarah Nicastro: Okay. So you love a good project at home and at work. You like to stay busy.

Scott Lowes: Yeah.

Sarah Nicastro: I'm assuming you like to be just learning new things. It's what it sounds like.

Scott Lowes: Yeah. If I'm not learning a better way to do something in my personal life, it's like learning something new at work, right? A lot of people do Netflix and chill, I do like research and chill. It's usually like, my wife is watching Netflix, I'm watching or I'm like researching how to build concrete forms or do some something random around the house.

Sarah Nicastro: I'm laughing because this is very much parallel my home life. My husband spends a ton of time watching the most random things on YouTube, I'm like, what are you watching? "I'm watching how you..." Okay. Who cares? But he loves it.

Scott Lowes: There are those people that care. It makes it really good at parties and gatherings because when people are like, "I'm in like an aerospace..." I'm like, well, I've done carbon fiber repairing and they kind of give you this like, "what? Who are you?" But yeah.

Sarah Nicastro: And it's all come in handy. I mean, there's a lot of home projects and things like that that he's tackled that are far out of his comfort level that he literally just YouTubed and followed along and learned how to do it himself so it works.

Scott Lowes: Yeah. It's handy that way. But my disclaimer is don't do any gas work unless you're a ticketed gas fitter.

Sarah Nicastro: That's really good advice.

Scott Lowes: No. But yeah.

Sarah Nicastro: We did draw the line at gas. Actually, last summer we put in a pool in our backyard and he did all of the electrical himself. Which he was pretty comfortable with but we had someone come in and run the gas line and all of that stuff.

Scott Lowes: That's a good call.

Sarah Nicastro: We have to draw the line somewhere, right?

Scott Lowes: Yeah.

Sarah Nicastro: Okay. Scott and I were introduced by a part of the IFS team which is Clevest and we were introduced to related to FortisBC's use of remote service technology. That's how we got in touch with one another. But as I was talking to Scott, I realized there was a lot more about our conversation that stood out and I felt like if we were to do a podcast talking only about the remote service topic might be leaving some good content on the table. Before we talk a bit about how you've leveraged remote service at FortisBC, I want to talk about some of those other things. The first thing that stood out to me Scott is your passion for technology, which was very clear. Tell us a little bit about why you love tech and why you're so passionate about it to use in Field Service.

Scott Lowes: Yeah. Passion with technology started once... Okay. If we go way back, it's probably I think when my parents had I think it was our first computers, either at 286 or 386. The power switch was like the size of my head type thing. It's just like a giant toggle, the lights dim when you turn the thing on but then it powers up and it's all text-based DOS right? That was my first introduction to computers. Fast forward a few years, I'm learning a lot more about computers but I'm breaking them all the time. It was like a non-stop, revolving door of having like my dad's tech support guy in the house fixing the computers because Scott broke the computer again. And now I'm the tech support guy for my parents for their computers so it's come full circle but it was probably a painful for that period.

Scott Lowes: But yeah. In terms of technology, I've been around it for a while, I've seen it, used it, always trying to be early adopter, right? Like, okay. Something new is showing up. I want to have the newest, latest, greatest. Or if I can't have the newest iPhone I'll leverage the older iPhone to extend that lifespan right?

Sarah Nicastro: Mhhmm

Scott Lowes: Everything from back in the day when jail breaking iPhones was a thing so you could get all the little tweaks and stuff. I nerd out on that stuff and so that's where the technology for me, my passion for it I guess came. And then I guess in terms of where I think the use with Field Service stuff, it's probably one of the one... If you think of technology, everybody's using technology except the guys that are swinging the wrenches. The field techs aren't using technology to the same extent that the rest of the globe is.

Scott Lowes: If you think of like okay. We've got such high horsepower in terms of technology and stuff that's out there, why not utilize it in a field that isn't really utilizing it yet? Or to its fullest potential right? Because there's lots of cases where it could just make their job or, and make my old job a lot easier and just... Yeah. It's pretty neat to see what's out there in the marketplace right now and where we're going. I'm excited for that part too.

Sarah Nicastro: You are the epitome of the young guy in Field Service that loves technology right? When we talk to different service leaders on the podcast, one of the topics that comes up is the challenge of managing a multi-generational workforce right? And so there's folks like you on one end of the spectrum that are, technology's awesome. I love it. I want to use all the newest, latest, greatest things and then as you well know based on some of your team members, there's people that want nothing to do with that right?

Scott Lowes: Yeah.

Sarah Nicastro: It is challenging for organizations to strike the right balance and I think that when we spoke initially, one of the things that I thought would be interesting to share on this episode is, you very much are a change champion within FortisBC for greater adoption of technology in the field and you have a lot of firsthand experience introducing these things to some of the people that are a little bit more resistant or less excited about the tools right? One of the things you said to me that I'm hoping you can talk a little bit about is, when you introduce a new tool to one of the people that's less passionate about technology or really against the idea of it, I guess on a continuum, you mentioned you love when you can see an aha moment, where it just clicks and that resistance fades away a little bit. What do you think it is that prompts that aha moment?

Scott Lowes: I think it's the magic really. Because I've grown up with technology, I don't want to say the magic is lost but I'm expecting a groundbreaking thing and it's not like this huge thing. But the aha moment for me that I've seen, we just did finished up a pilot using some VR headsets for training and so a guy, I think he said to like retire in November right? He's on the complete opposite end of the spectrum as myself. We've got a great working relationship and I was like hey. I want you to try this out and put on this VR headset. And I'm able to walk him through all the controls because he doesn't know how to use the hand controls and all that stuff.

Scott Lowes: And he's like, "I just want to see it." He puts the thing on and his mind is blown. He's like freaking out. And so for him, he's like, "wow. This is crazy." And then next thing you know, he takes it off and he's going around the office, "hey. Go see Scott and you got to go try this thing. It's really cool." And so his little aha moment was the barrier was broken because he didn't have to learn how to use the controls of a VR headset or try to navigate into the software, he just got to get plunked into this virtual world and he's looking around and his mind is blown. Those aha moments I think it would come in all of our different texts, when there is no barriers to entry right?

Scott Lowes: When it's not like, I got to figure out how to use Windows 10 just to use a software, if we can remove that, that's when I think the most success has happened and yeah. It's that interface. Having that smooth interface so once somebody can use it, it's not cumbersome I guess. And that's like I've seen have happened where it's just... they can use the software and it works. That's probably one of the bigger things.

Sarah Nicastro: Yeah. That makes sense. I mean, user interface is obviously super important but what you just said also made me think of, and I've talked to companies that have done this as part of their change management strategy. Prior to actual rollout of a new solution, having more of a low pressure, even making it fun, introductory phase to the technology, where it's that ability to casually familiarize yourself with it and looking for different ways to maybe make that bad idea even fun for people that aren't as excited about that new thing. But having a period prior to roll out where you're going to be driving toward a very specific outcome but more of like a familiarization period where that barrier to entry is low because there isn't an expectation of immediate outcome. Does that make sense?

Scott Lowes: Yeah. And I think you hit the nail on the head there, where it's like having it fun is key because for me, I can get over if it's not fun or not because I've been around it for so long and I know the leverage that's there, I can get on board with a little bit of pain to get there. But to get the mass of really who we're wanting to push this technology towards, is the mass workforce and to get it there, it's got to be fun. It's got to be engaging and it's got to be a way that these individuals are going to say, hey. Man. I really want to use that. That's a really cool piece of software. That's a really cool piece of technology. I'm like, that makes my job easy or that's a really cool whatever it is, but if it's not fun, why would anybody like to use that boring thing over what they've been doing for the last decade or two decades or four decades. If it's not fun and engaging, they're never going to use the technology or the tool or whatever it is right?

Sarah Nicastro: One of the other words that you used in our initial conversation that I really liked is that, really for change to be successful, the technology that's being introduced needs to be palatable. What would your advice for listeners be on, how do you make the introduction of a new technology palatable?

Scott Lowes: That? Man. That is the magic question. And that is like the key. And I think the way it becomes palatable is having somebody that is not only passionate but willing to educate and willing to go through the tech support aspect. I remember I broke my arm so I couldn't work in the field and they said, "hey. You're good with technology, can you go sit on the tech support desk?" And said yeah. Sure. And we're rolling out a new software. This is probably 10 years ago now. And one of the guy comes on the phone and he starts griping. He's like, "computers are the damnation of the world. I don't have a computer at home so why do I need to use one at work? I just want to throw this thing off the bridge." And that just really stuck out to me.

Scott Lowes: And I was like okay. Everybody's feeling that at some point that it's not going to work. Having somebody that is aware of that as well, isn't just somebody that's going to say hey. This is a new technology we're using, you got to use it or you're done. That's not an option when you're rolling out technology especially when you've got an already effective workforce and you want to see them become more effective, the way you do it is, you've got to really have somebody that is passionate about the technology that's willing to be that change champion then says hey. You know what? I'm going to go through the hard stuff. I'm going to figure this out. But then also, they're going to see or foresee those roadblocks and those speed bumps that are going to come along and help the people through that and say hey. This is what we can do or just being available as somebody to just go through that so they're not stuck struggling, right?

Scott Lowes: Because the way that you can take any technology rollout and make it just fall flat on its face is you come up with this great idea and you say, hey. We're going to release this technology to the guys or to the girls or to whoever and you're just going to release this technology and then there's no support. And there's nobody that is... Another term I've used is the tech expert, right? Because you got to have somebody that knows just that much more than everyone else that they're always getting the call, they can say hey. Scott. How do I do this? How do I do that? You've got to have that person that you've identified that says okay. I'm going to learn this technology and all the nuances and I'm not going to learn it from a book, I'm going to learn it by using it and finding out the problems and the success with it and then they become really your technical expert on that software or technology.

Scott Lowes: When they understand it and they love it then they can make it palatable just through, "how would you teach your grandma how to use this." In some aspects right? You don't care about the gigabytes that this thing has or all that stuff. You just want to know how to turn the thing on, how to work it, how to make it work for you and make your life easier not make it more complicated. Having that change champion or somebody, your technical expert identified with anything, with software or tech or hardware to then make it palatable for those individuals to actually use right?

Sarah Nicastro: Yeah. I think that's a good point. I also think going back to what you said previous to that, no company is going to deploy a new technology just because it's cool or fun right? There's obviously a objective that's being worked towards and value that that needs to be achieved but the idea of leading a little bit with fun and trying to think about how to make it fun, to at least get people engaged enough to hear what that value to them might look like right? And to warm them up to talking about, here's how this fits, here's how this ultimately can help you be more effective at your job so that they warm up to even entertaining that discussion right? In the early phases, I think the idea of considering okay. How can we take some of the pressure off? How can we make this process fun? How can we get people engaged? And then get into to the heavier outcomes of the project makes sense as well.

Scott Lowes: I definitely agree. And so with that, we just wrapped up our pilot for this VR software and we were using it for training. Right? Or that was the intent. But how I pitched it, I said. Okay. The people I want to actually have use this technology, they're not the people that are going to look at the, does it meet our requirements for the training and all the nuance. I'm like, I want the people that are going to try it on this VR headset and they're going to get so excited and so jazzed on this that now all of a sudden they don't care if it meets the requirements, that's for later on in the project but they're like wow. This is exciting. I tried it. Scott showed it to me, I'm blown away. I want to see that thing go.

Scott Lowes: And then now all of a sudden, you have people that have bought in throughout the organization that can help push it through those roadblocks and those speed bumps that you're going to get when you say, well, it doesn't have XYZ or it doesn't meet our requirements here or there. That early stage of having it fun and exciting and just something new and cool to try, you've got to get to that first before it can go through the nitty because sometimes that nitty gritty takes a week, sometimes it might take three years to get through whatever it is in your deployment. To have somebody or a group of people that are passionate to push you through that phase to get you to the deployment, yeah. I think that's key for sure.

Sarah Nicastro: It just made me think of a point when you were saying that, taking a step back and thinking about where you want to put the pressure of the project right? Ultimately like I said, whenever a new technology as it's being introduced it's being introduced to drive a certain outcome right? And there's a business case, and there's a desired state that you're changing from and to but at the end of the day that frontline worker who you need to ultimately accept and adopt that technology, the overarching outcome of that entire project is not their responsibility, their responsibility is to leverage the new tool and to do that, it needs to be useful to them, it needs to have a good user interface et cetera. But maybe it's not a good idea to put even implied pressure of the entire project on their shoulders. Do you know what I mean?

Sarah Nicastro: I'm just thinking about a conversation I had recently with a leader within an organization that has taken a really big hit in business since COVID. And he was talking about the fact that their frontline workforce is so disheartened because the company is struggling but his point was the company's struggles aren't that worker's responsibility, they're still doing a really good job, they're hitting all of their milestones and their performance is above average and above expectation and so how do we as an organization separate the overall situation and outcome from individual performance right? I'm just thinking, when you think about managing change related to technology adoption within an organization, looking at the project outcome versus the individual contribution and making sure that you're either rewarding or coaching individuals based on their individual adoption and use and engagement versus maybe some of the complexity of the overall project. Just a thought.

Scott Lowes: Yeah. No. It does. And I think that where it gets tricky is, sometimes we come up with this project or we have this idea and we just want to see it implemented but we forget about the people that have to use it. And so when the software that we rolled out at Fortis was used, I was still in the tech role and I was the guy that had to use it. And I wanted to see it rolled out in a way that... It wasn't like, you've got to use this no ifs, ands or buts. It was like, here's the tool in your toolbox that is valuable and I'm going to show you how cool it is and how valuable it is. And the people that were willing to use it, they got to see the benefit from it.

Scott Lowes: And it's that snowball effect, right?

Sarah Nicastro: Mm-hmm (affirmative).

Scott Lowes: Because you got to think if you've been doing your job for 20, 30 and 35 years and some young kid comes in and says hey. We want you to use this software, you're going to get clocked right? It's that figuring out, okay. We got to get the snowball moving down the hill and once it's going, it's picking up steam but we also got to be careful that anybody that is at the bottom of the mountain, that we're not going to just mow them over either right? We got to get them on board rather than just say, this technology is coming whether you like it or not, get on board or get out right? You can't say, get off the bus, because if everybody hops off the bus because they don't want to use the software guess what? You got no workforce right?

Sarah Nicastro: Right.

Scott Lowes: It's that really tricky balance of saying okay. How do we get people to come on the bus? And maybe you don't get on the first bus, maybe you're on the second or the third. And when I think about how technology would be best deployed to a workforce like Fortis is for instance, is it's not all at once because you've got to get these people onboard that are then going to get the others on board right? And it's like with the iPhone, you get a bunch of people that started with the iPhone 3G or, and then it's like, wow. Look at this cool thing. And they show their so somebody is like, okay. Well, you can play a fun game. But now everybody's got a smartphone in their pocket because the momentum is there.

Scott Lowes: The same thing is when we're starting especially in Field Service where historically we've never used technology to the level that we can use it now. To just say hey. You got to use this or you're done, it's not fair because everybody also has that for whatever reason a differing length of time they're going to take to get used to utilizing a new software or be willing to. There's multiple buses, don't just think it's one bus and everybody's got to get on because if you think about it that way, you'll be on the bus and you'll be thinking everything's all great and then you'll look behind you and you'll realize that nobody else is on the bus with you right?

Sarah Nicastro: And I always say the goal needs to be commitment not compliance right? You're not going to get the outcome you want if you're just driving compliance, it needs to be actually them seeing the value and being more bought into its purpose and its use.

Scott Lowes: Yeah.

Sarah Nicastro: Okay. Scott, talk to me a little bit about how FortisBC has leveraged remote service to navigate the pandemic.

Scott Lowes: Yeah. This is where I guess all this came about. Early days pandemic, just so everybody understands, our job as technicians at Fortis basically, we've got to change out our gas meters at customers' houses, which then means we'd have to shut off the gas then we have to enter the customer's house and return on all the equipment that would have been shut down. But pandemic hits, nobody wants anyone in their house for obvious reasons. Now, we're still trying to maintain this work because it's regulatory requirement and all this sort of thing. We had guys that were... They would get the customer to open windows, they're hollering through doors, trying to walk customers through how to relight a hot water tank. Even heard stories where guys were just okay. Do you have FaceTime?

Scott Lowes: Yeah. I got FaceTime. And so they just FaceTime and they do exactly what this software that we've started using, they started using that. What it was, essentially the software we're using, it allows us to have a video and audio feed much like FaceTime but we can pause the video, we can draw little circles on it or point to stuff and turn on and off the customer's flashlight. All this kind of neat stuff. I always called at FaceTime on steroids anytime I was training on the software. And so we rolled this out early days pandemic and said okay. Let's get this thing going and we're still rolling it out as we're getting more and more guys using the software. Again, it's that like, that you can't just have everybody on the bus in the first kick of the cat.

Scott Lowes: And yeah. We rolled this out and we're still going through that as we progress and we're still dealing with pandemic fears, obviously ongoing. I don't foresee this tool as I've always called it, this tool in our toolbox ever going away, I think through further iterations, there may be a different particular softwares that we use or we leverage but I think the premise is just... The thing that was probably the most exciting about it was the fact that I go up to a customer's house and say hey. I've got this cool software that allows me to just send you a text message, you click the link and then we get an audio video feed and I could walk you through relighting their fireplace or their hot water tank and they said, "really?" And I said, yeah. It's easy. And when you pitch it that way and the customers do it and then at the end of the call I'm like, how was that?

Scott Lowes: And they're like, "that was actually really easy. I really enjoyed that. That was pleasant." Obviously there were the ones where the customers were more frustrated because the technology wasn't working but again, that's just getting through those roadblocks and those speed bumps but the coolest thing for me was the fact that our technicians could use it and our customers were able to use it. And it just not just that customer service level just up another, right? Because now those customers that say, "I don't want anybody in my house but I'm willing to have you walk me through it." That for me, it was a big aha moment in that regard, that wow. Our customers can do it and our techs can do it. Is it going to work every time? No. And that's okay. But it works. And yeah. It was a pretty exciting as the software has been rolling out and we're going through it.

Sarah Nicastro: So it was put in place initially because people didn't want folks in their home due to COVID, as that continues to normalize and becomes less of a concern over time, how do you expect it will be leveraged?

Scott Lowes: Yeah. That's where I get into dreamer mode a little bit but I think it's definitely still a tool in the technician's toolbox but I think as the technology gets more refined, as stuff like that happens and whether it's for us changing our gas meters or any of anyone else in field service, I definitely think it's this really... We're right at this tipping point of saying, wow. All of a sudden, we don't have to send a technician every time because when a customer calls in and I know this isn't gas related world, customer calls in and says, my hot water tanks not working, well now, before I even roll out to that job site, I can flash up this video assist software and I can say okay. Well, it actually looks like...

Scott Lowes: Do you mind if I just walk you through trying to relight the pilot light, walk the customer through relating in the pilot light and guess what? You spent 15 minutes on a phone with some technical expert to walk the customer through that without having to roll a truck, without having to dispatch a technician onto those sites, when you think about that, it's like okay. How do you scale that up in every tech?

Scott Lowes: And I foresee a future where you've got a technical expert, whether it's some central organization, they've got a technical expert in multiple fields that now all of a sudden a customer call them, they've got a concern about electrical or a gas or whatever it may be, they can now call the technician, that technician can walk them through a very preliminary high level troubleshooting, get a good picture of the trouble shooting that needs to happen.

Scott Lowes: And then now when you dispatch a technician, you're making one visit rather than two or three. There's no parts that need to be grabbed, the technician going in knows that he's going to be working on this model of appliance or whatever it is and it really reduces not only a carbon footprint again, with driving back and forth to customer's houses and here and there and everywhere but also it's just quick, it's easy. The customers get immediate answers to their questions and I think that if we think of just how do we do customer service better, everybody wants to be able to be connected with somebody right now. Look at what COVID has done now. Now you can meet with your-

Sarah Nicastro: Instant gratification.

Scott Lowes: Yeah. It's instant gratification. But at the same time too it's like, if the technology is there, why aren't we using it? It's no different than if you need to go see your doctor now, you can set up a video chat with your doctor and yeah. Sure. He might not be able to diagnose everything but it's like hey. I've got this or that. He can get you through... or he or she can get you through whatever it is. When I think of the future of where this field service and tech in that regard, man, it's massive and I think we're right on that tipping point of where we're going to go in. And COVID as much as it's been really tricky and really hard, I think it's allowed those technologies that we're just waiting in the wings that there was one person using or a couple of people using have now really been elevated to another level where people are like, wow. Okay. This is actually really cool. We can use this.

Sarah Nicastro: You said that you see the future of field service as less field and more tech. Are there any other major I guess, technology trends or aspects of what you think this will all look like in say five years’ time?

Scott Lowes: It's hard to say, right? Technology, it's so bleeding edge but as we tried this pilot for the VR, you've got VR software then you got mixed reality and augmented reality, all these sorts of things, as these just become so easy for the technology that we're using to actually execute. I think really the sky's the limit. It's going to be exciting but the flip side with that is we got to remember that we have a huge working force that may not love technology or may not want to use it.

Scott Lowes: It's being aware of that in any future deployment to say okay. These are the people that if we can sell it and if we can make it fun and if we can engage these people, they become the change champions and they become the ones that now all of a sudden are utilizing it even more than they would have in the past. I think that's probably the biggest key, is just being in control of the change. Because that's the biggest thing where you're going to see the biggest hurdles is, with anything, rolling out change is hard but if you can do it well and efficiently and get the right people on board then yeah. You're jamming.

Sarah Nicastro: Awesome. All right Scott. Well, thank you so much for coming on today and sharing your experience and insights with us. I really appreciate it.

Scott Lowes: Thank you so much for having me.

Sarah Nicastro: Welcome. You can find more by visiting us at https://futureoffieldservice.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 about IFS technology by visiting https://www.ifs.com. As always, thank you for listening.

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May 26, 2021 | 26 Mins Read

Destigmatizing, Normalizing and Prioritizing Mental Health in the Workplace

May 26, 2021 | 26 Mins Read

Destigmatizing, Normalizing and Prioritizing Mental Health in the Workplace

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Sarah welcomes Johnny Crowder, suicide/abuse survivor, TEDx speaker, touring musician, mental health and sobriety advocate, and the Founder & CEO of Cope Notes, a text-based mental health platform that provides daily support to users in nearly 100 countries across the globe, to discuss the criticality of prioritizing mental health in the workplace.

Sarah Nicastro: Welcome to the Future of Field Service podcast. I'm your host, Sarah Nicastro. Today, we are going to be talking about the need to de-stigmatize, normalize and prioritize mental health in the workplace. Hopefully you are aware that this month, May, is mental health awareness month. Those of you that listen to the podcast regularly or read our content, know that this is a very important topic to me. And I am thrilled to have here with me today, Johnny Crowder. Johnny is a TEDx speaker, touring musician, mental health and sobriety advocate, as well as the founder and CEO of Cope Notes, which is a text-based mental health platform that provides daily support to users in nearly a hundred countries. Johnny, welcome to the Future of Field Service podcast.

Johnny Crowder: Thank you for having me. I'm pumped up.

Sarah Nicastro: Thank you for being here. So I found Johnny on LinkedIn and I am a big fan of his content and messages. I'm also a big fan in general, about how mental health is something that you see discussed more and more on LinkedIn, right? I think that's kind of a bit of what we're going to talk about today is this is not needed to be a conversation that you reserve for Facebook or Instagram or whatever your personal social media platform is of choice, it is a conversation that is important for us to be discussing in professional forums as well. So Johnny, tell us a little bit about yourself and your background and your journey and how you got to the point of becoming a mental health advocate and public speaker.

Johnny Crowder: Yeah. So the short version, I'll tell you the short version. The long version, I have a TEDx talk. So if you want to go listen to that, that's like an 18 minute breakdown of how the heck I got here.

Sarah Nicastro: Okay.

Johnny Crowder: But the short version, I'm going to leave out a lot of details here, but essentially I grew up in an abusive home and I learned all the wrong things about myself at a very young age, started developing symptoms of mental illness much, much younger than most people. So I'm talking like toddler years, elementary school, middle school. So I never really had like a normal day, that like childhood day where you go play soccer and you eat a freezer pop or whatever. I had a lot of trauma and a lot of illness at a really young age. And it kept me from performing daily tasks for a long time.

Johnny Crowder: So like any child would I resisted treatment for like 10 whole years. I just wouldn't touch it. And then I started mandatory treatment in high school because of some behavior issues. And then I wound up taking psychology courses to prove my doctors wrong. It turns out they were right. And then I took more psychology courses, eventually got a degree from the University of Central Florida in psychology. And then I switched. The big shift was thinking that I wanted to become a clinician to realizing the power of peer support and just using what I had been through to employ empathy. So now instead of being a doctor, I just work with doctors and then I provide that peer perspective from someone who's actually been through it firsthand. And then those doctors can provide the book learn inside.

Sarah Nicastro: Yes. Okay, good. So when did you do your first, I guess, public speaking thing related to this topic? How old were you, what was kind of the... how did that come to be? Was it your TED talk, or I'm assuming you've been speaking before that?

Johnny Crowder: No. I can't imagine the TED talk being like my first time talking about it. Well, I think, so it started, it's a really unglamorous start. I found out about NAMI, the National Alliance on Mental Illness, when I was in college and I was like performing, I was teaching and performing improv and I was in a band and we were touring and stuff. So I was a little bit familiar with stage, but definitely not talking about my own personal mental health on stage. And I met NAMI greater Orlando when I was in school, and they were like, "Yeah, we have people come up and speak at events and schools just about what they've been through," and I was like, "Oh, well, I'm still really sick. So like, can I participate while I'm still having a lot of issues?" And they were like, "Definitely, come get involved and volunteer."

Johnny Crowder: So I actually just got a LinkedIn notification that my 10 year anniversary with NAMI was this month. So literally 10 years ago. You got to picture me. I'm 18, still have pimples. I'm still trying to figure out the chest hair situation, whether or not I'm going to grow any. And I just started getting on stage at these really small, local volunteer type events and just trying to awkwardly share what I had been through. And over time it became... it started feeling more and more natural to the point now where if someone asks me about my mental health in a professional setting, I'm not like, bah, but they're seriously when I would apply to jobs, I would try to do everything within my power to prevent my employer from learning that I was taking anti-psychotic medication or seeing a therapist and so on, so the stigma was real.

Sarah Nicastro: Yeah. And I think, going back to what I mentioned in the introduction with some of the content you see come up on LinkedIn and some of the conversations we've had even on this podcast, that dialogue is changing and I'm very grateful for that, but there's a long way to go. There's a long way to go. And there's a couple points in what you just said that I think are important. One is, normalizing this topic is everyone's responsibility, right? And it's not just if you struggle with it and it's not just if you don't, right? It's sort of understanding that collectively is how we make more progress in making this a more normal part of dialogue and a more normal part of our professional lives.

Sarah Nicastro: The other thing is, I like what you said about sharing even though you were still struggling. Right? I mean, I know when you and I connected last, I told you there's a woman, Glennon Doyle, for anyone that is not familiar with her, she has been a writer and a public speaker and an activist in different ways. She wrote a book in 2013 called Carry on Warrior that really, really changed my life. I read it on an airplane rides in California. And I remember I just had tears streaming down my face, but it was talking about her experiences with anxiety and depression. And it was really the first time in my life I felt that it was okay that I wasn't okay. Do you know what I mean? And it was, 2013 doesn't sound so long ago to me, but really it was before there was as much open dialogue about this in, whether it's blogs or podcasts or just on social media. It was huge.

Sarah Nicastro: She actually just launched a podcast and the first episode was last week. And one of the listeners asked something about her coping mechanisms for anxiety. And she said, "Well, the first thing is I had to admit I'm never getting better. It is who I am and it's not going to go away. So once I could stop waiting for it to disappear, I could breathe again, because I wasn't trying to fundamentally change who I am as a person. And then I could actually look at, okay, how can I cope with this? Not how can I wish it away?" And I thought that was super powerful. But anyway, all of that to say, you never know when sharing your own experience or being open to listening to someone else's struggles is going to really, really change things for someone. And so it's important for us to all acknowledge the role we can play in this topic. Does that make sense? That was a lot of me babbling. I'm sorry.

Johnny Crowder: No, I specifically remember clarifying with NAMI before I... I have really bad memory loss from medication like long-term, but this is one thing that I specifically remember. I was quadruple checking with one of the organizers before I first started sharing it, like in a peer support setting. I'm like, "Are you sure it's okay? Because I'm still pretty in the thick of everything and trying to figure stuff out." And they were saying, "That's actually great because you're not so far out of it that you're saying, 'Oh yeah, dude, read this book and take this vitamin and you'll be fine. And I'm fine. Look at me now.'" That doesn't help as much as someone explaining to you what they're going through and you're going, "Holy crap. Yeah, exactly. It is really complicated. I wish it was that easy, but it's not," like that is the essence of peer support.

Sarah Nicastro: Right. So in terms of peer support, not only do you public speak and advocate yourself, but you've also created Cope Notes. So tell the people listening a little bit about what Cope Notes is and why it exists.

Johnny Crowder: Yeah. So Cope Notes uses daily text messages to improve mental and emotional health. And the whole reason we're doing that is because a lot of people don't have time for like an hour appointment or they don't know what their schedule is going to be like, so it's hard to plan for traditional mental health services. Or they have privacy concerns. I know that that's something that I was pretty concerned with when I was first starting to use some online digital mental health supports. And then it's also for people who struggle with consistency like me. So I'm the kind of person who, with all the best intentions, I either over commit or under commit and the under committing is a result of over-committing. So I'll be like, okay, I'm going to run seven miles every day for the whole year. And it's like, dude, that's such a bad plan.

Sarah Nicastro: Right.

Johnny Crowder: Like you're going to burn out, you're going to... It's not going to work long-term. So I wanted to create something that could sustain the consistency necessary to improve mental health long term. So Cope Notes, one thing I want to clarify is Cope Notes isn't like a magical, it'll make you better overnight. This is something that, we're investing in you a year from now. Just like if you brush your teeth every day, it's not going to magically get rid of cavities, but over time it will prevent you from getting cavities. And Cope Notes is kind of the same thing, like low effort. There's a low threshold, low barrier to entry and it's pretty passive. So these texts come to you. It's not like you have to remember to use the tool, and over time, it literally trains your brain to think in healthier patterns.

Sarah Nicastro: Cool. Very cool. Okay. We've both shared a little bit about ourselves. And let's talk though, let's start talking about why it's so important to de-stigmatize mental health issues in the workplace. So as you know, most of the people listening to this podcast are in the business world and responsible for teams and responsible for employees, and we probably have people from different ends of the spectrum, people that are like, "Yeah, let's normalize mental health," and then people that are like, "What? I don't want to talk about that or think about that or address that." So let's talk about why it's important to commit to de-stigmatizing this topic.

Johnny Crowder: Well, I'm thinking if you're a leader right now, you're listening and you are a manager, you have a team, picture yourself like a coach for a second. So you're the coach of a soccer team. Because I mentioned soccer earlier. How important is it for you as a coach to create an atmosphere, an environment for your team to let you know if they're hurt? Like imagine if you were the type of coach... and this is what's happening in the corporate world, by the way, we have coaches proverbially who are saying, if you break your ankle, I don't want to hear about it. Your team doesn't want to hear about it. Don't show weakness, get back out there on the field and crush the opponent no matter what. And what you're doing is guaranteeing that you will lose the game. And you're guaranteeing that you will lose a star player. Because he only thing that will make a broken ankle worse is continuing to play on the broken ankle.

Johnny Crowder: And a lot of people who are in a corporate environment, they'll start experiencing like crippling OCD to where it's interfering with their, it's not only interfering with their work, but also with their work-life balance. And then that's affecting their sleep and it's affecting their eating, and then that's affecting their performance. And we have leaders who are saying that's personal stuff. No, it's not. No, it's not. If it's affecting work performance, it is not a purely personal matter. Anyone... And you know what I've seen, there's a little more talk about this lately, which I think is important, divorce. When someone is going through a divorce, have you ever met someone who was going through a divorce and it didn't affect their work performance?

Sarah Nicastro: Right. No.

Johnny Crowder: So you can't... It's important to establish work-life balance. But also leaders are in a position where, I mean, if they actually care about their company, they actually care about the progress of what they're building and they care about their team, you don't even have to have a heart for the people. Even if you're like this cold calculated spreadsheet person, you don't give a crap about how people feel, you should still care about de-stigmatizing mental health. Because imagine if you were in a boat that had a hole and you couldn't find it, and the boat was going down and you couldn't find it because none of the people on the boat would want to tell you where the hole was because they were afraid to get in trouble or get judged. Your boat's going to sink, period.

Sarah Nicastro: Right. So that's it, that's a good point. I mean, hopefully you care because you care about people.

Johnny Crowder: Yeah, definitely

Sarah Nicastro: But for anyone that's listening that doesn't... No. But I mean, it is a good point that this is, you can care, and let's say that's the warm, fuzzy side of it, right? Like I really care about my team or my employees, but there's also an element of needing to realize the impact on performance and looking at it strategically in the sense of it isn't just about being a warm, fuzzy, I care about my people thing, it is also an element of the same way that you... A lot of companies have programs that help employees with their physical health because they want people to be healthy and they want people to show up and feel good and be able to do their work. It's the same idea with the mental health, right? It's maybe not as visible in some ways as physical ailments, but it's certainly just as important.

Sarah Nicastro: And I would say, with everything that's gone on in the past year, pro and con. Pro is, I think even companies that before weren't acknowledging the criticality of this topic have realized that they need to. Con is, people are a bit more stressed, burned out and struggling than they ever have been, right? So I said this earlier, we all have a responsibility in this, but let me hear from your perspective. Why is it everyone's job to normalize and prioritize mental health within a business?

Johnny Crowder: Well, you can either be an example or a non-example. And I know that for myself, if I ever had a non-example, I would cling to that. So I'm trying to think when I was in college, if I knew nine people, this is hypothetical, if I knew nine other students who were engaging with mental health services, and I knew nine teachers who are opening up about mental health, but I knew one student and one teacher that didn't want to talk about it, that's it. "Oh, that's not for me. And I'm actually good." I would identify with that person every single time, because people are naturally looking for an excuse not to work on themselves. They're always sure. Yesterday I had a sunburn. I still have one. I don't know if you can see it. It's mostly on my shoulders.

Sarah Nicastro: You don't even look red.

Johnny Crowder: But it was a real sunburn and I wanted ice cream because I was so hot. And I had ice cream, and it was great. And I can virtually guarantee you that if I wasn't sunburned, I would have found another reason to have ice cream, because I wanted it. It works the same way with something, I'll relate this to physical health as well, exercise. I can find a reason not to exercise. I've been working out forever and I can find a reason to be like, oh, you know what? Well, today is Monday. And maybe I should start working on organizing my closet because I've been meaning to do that for a while. I will avoid working out when I'm tired. And if I have a friend who says, "Oh yeah, I skip the gym a lot." I say, "Oh, I identify with that person."

Johnny Crowder: So each time you turn down the opportunity to share about yourself, or you turn down the opportunity to engage in a mental health conversation, you are providing a, it's not even a safe haven, it's a danger Haven. I don't even know if that's a thing, but you're giving someone who might need genuine help and support an opportunity to not engage by setting the wrong example. So no one is exempt from this. Like kids, trust me, if you have an eight year old who's talking to you about feeling anxious, that'll change a parent. So forget status roles or forget ages or demographics. Everyone has an opportunity to lead by example. And by choosing to not lead by example, you are accidentally still leading by example, you're just leading by the wrong one.

Sarah Nicastro: Right. Right. Yes. And it's, I think a recognition that you don't know when or how you're going to help someone in a significant way, but guaranteed, if you're avoiding, consciously avoiding the opportunity to do that, then you're not going to help someone, right? It is important for everyone to understand the role they play in normalizing these conversations and making this a priority within organizations. And I think that those negative examples hopefully are becoming few fewer and further between, and also standing out more. Right? That's kind of the flip side of this is as this conversation does normalize, those perceptions of this as a taboo topic or whatever are becoming less and less mainstream, that's... Yeah. So what would be your best advice for listeners on to create a company culture that's mental health friendly and/or what are some of the biggest mistakes you see companies make as they're making an effort to do that?

Johnny Crowder: So I'll start with mistakes. What I see really commonly is something like, "Oh, it's mental health awareness month. And for mental health awareness month, we're going to send an e-blast out to everybody. And then maybe if you reply to a poll, you can get entered for a chance to win a water bottle." And that's it. And then at the end of May, all the executives are patting themselves on the back like, "Yeah, we're so good. We're such good people." Or they'll do like, as for mental health awareness month, we donated $500 to a local mental health charity, and then pat, pat, pat on my back and then we'll do a press release about it. And then everybody's happy. I see a lot of that. And I also see it. I don't even have to tell listeners why that's not enough. So I'm not going to use time talking about that.

Johnny Crowder: But I will say that what I do see commonly as kind of like too much, too soon. So people going like, "Oh, now we're going to have yoga every morning. And then before the beginning of every meeting we're going to have this namaste moment where everyone goes around the table and talks about how they feel." And then productivity is lowered and people are like, "Am I really supposed to be honest in this setting?" So I see a lot of that, like too much, too soon where they're not really thinking about culture, they're more thinking about policy. And the best policy in the world won't save you from a bad culture.

Johnny Crowder: When I'm looking at something like a company culture around mental health, I think small incremental steps and including it in existing policy rather than drafting a whole new policy. I remember I was in the Carolinas and I was with my buddies kids. He has five kids. Five.

Sarah Nicastro: Can't imagine.

Johnny Crowder: And they were making lunch for the kids and they just, they don't like spinach. It's like something in the house where they're like, "Ooh, spinach is gross." So what she did was she put slices of spinach in a grilled cheese sandwich. Not slices of spinach, you know what I'm talking about, leaves.

Sarah Nicastro: Yeah, yeah.

Johnny Crowder: In a grilled cheese sandwich. And then she had them take bites with their eyes closed to see which slice of grilled cheese they liked better, one with spinach one without. And they realized they couldn't tell the difference with their eyes closed. And I was blown away. I was like, this is such an innovative approach to getting these kids eat spinach. And she's like, "Well, yeah, if I just pour out a big bowl of spinach no one's going to eat any. You have to work it into things that they're familiar with that they like." And I think the same is true for mental health.

Johnny Crowder: Don't just dump it all into a bowl and push it out to all your employees. You have to... it's lots of casual mentions. So using a term like anxious or anxiety or depressed or depression, even just those two very basic things or asking people like how they are feeling, or if you're too scared of stuff like that, and you're a leader, you can literally start with asking people like for a minute at the top of a meeting, what they did over the weekend and then encouraging people to follow up with each other to ask, "Oh, you said you rode BMX this weekend. How did you even get into that?" And fostering those interpersonal conversations. Because if all your work conversations are about work, I can guarantee that people will never be fully honest in the work place.

Sarah Nicastro: Yeah. That's a really good point. I think we had a gentleman from QIAGEN on the podcast a few months ago, and we talked specifically about how they've increased their focus on employee mental health, really seeing the opportunity or need that COVID presented, and making it a focus for their field service operations, and a lot... Go ahead, go ahead.

Johnny Crowder: I just wanted to mention, I just had a great idea. I mean, it's not even an idea, but it's, a lot of leaders that I speak to say, "Well, my people don't really know me like that" or, "I don't really want to be the one that initiates something like that." This is when you need a scapegoat.

Sarah Nicastro: Okay.

Johnny Crowder: So this is like, I am a professional scapegoat.

Sarah Nicastro: Yeah.

Johnny Crowder: Because, if you're a leader and you say something and it falls flat or lands wrong and you're in your head about it, things can go sideways. But if you, "Hey, we're going to have a speaker come in or we're going to have someone come, like a third party," then you offload that like nervous responsibility.

Sarah Nicastro: Responsibility, yeah.

Johnny Crowder: And then you get to refer to someone who's not you. So it doesn't seem like, "Steve is deciding that this is the way it is." You say, "The speaker the other day mentioned..." and then you have like stuff to pull from.

Sarah Nicastro: Yeah.

Johnny Crowder: So a lot of people are afraid of being like the bad guy or the mental health guy, the person to start the conversation. It's like the spooky taboo region of conversation for some reason. And I always tell people that's exactly when you need a third party to come in and start it so that you can work off the momentum of that conversation rather than you being like, "I don't know what to say or don't know what to do." Let somebody else start the engine.

Sarah Nicastro: Yes, yes. That's a good point. And I think, probably a necessity for some personality types or comfort levels, but I also think, don't be a chicken and don't try and shirk your own responsibility for contributing. Now, that could be following on a speaker or it could just be taking the initiative flat out. But I think that what you said is it's really a matter of baby steps into the already existing processes, right? And that can feel uncomfortable at first, but the stakes are low. I mean, you ask how everyone's feeling in a meeting and you might get a couple of weird looks, but if you do it often enough, then people will start to engage.

Sarah Nicastro: I also think that leaders have to understand that it's a two-way street. So it can't just be you asking, how do you feel, how do you feel, how do you feel, if you're never willing to kind of engage on that personal level in an authentic way, whatever that looks like for you, but you have to be willing to share some of your own feelings, thoughts, struggles, as well, so that you model the fact that that level of engagement is not just accepted within the organization, but encouraged.

Johnny Crowder: Yeah. I'm thinking of one particular board that I serve on where there's a doctor that leads the board and she will kind of, at the top of the meeting, everyone will like share for about a minute or so just very brief, very quick talking about stuff. And she did this thing especially early on when the board was new. I've been with them for a couple of years now, but early on, I was like, I don't know basically anyone here, so I don't know what I'm supposed to share and when I'm not supposed to share.

Johnny Crowder: And she did this thing where she was explaining, like we go around and share and she's like, "I'll go first. I had a paper due last Thursday and it was due for publication and someone messed up a submission number somewhere and it's been pushed off. And I thought about it the entire weekend. That happened on Thursday. Today's Monday. And I feel like I couldn't get my brain to think about other things because I was so anxious about the thing on Thursday and whether or not they'll let us submit late. So honestly I'm a little wiped out, but I'm looking forward to getting energy back from this meeting." And I was just like, holy crap, this is the leader of the whole thing. And then as people started sharing, I mean, you don't have to tell people to share something similar, they will do it naturally because they saw that there was no consequence.

Sarah Nicastro: Right. Yes. But you have to humanize yourself, right?

Johnny Crowder: Mm-hmm (affirmative).

Sarah Nicastro: So let's talk then about why sometimes I think people don't do that, which is this sort of misconception that leaders have to kind of have that stiff upper lip, that I needed to be in a position where I command respect and I shouldn't let any cracks in the foundation show or signs of weakness or what have you. So what would you say to that misconception and why that is sort of an incorrect or outdated view of what leadership should look like?

Johnny Crowder: I think outdated is the right word, because that used to be a thing. Think back in the previous century and people were going through a lot of stuff, they needed a fearless leader, strong. And they're like, "Oh, we have to cut a thousand jobs this week," and the leader is like, "I will make it happen." That was kind of, I guess it worked for a long time, but now it's you see something like that and you just think, did they even hear? That's bad news. The thing that I think maybe a few decades ago what people feared most in a work setting was like a spineless leader or a leader that couldn't take action or a leader that couldn't command authority. Now people's fear is like a careless, cold, callous leader. They don't want to follow a robot. Why do you think there's like authenticity and vulnerability trainings and all this stuff for leaders? It's because people want to work for somebody who they know is a real person.

Sarah Nicastro: Right.

Johnny Crowder: And that's why I think, in the modern era, like before technology, I think strength was important. But now with everyone being able to access, basically they can look you up and find out all this stuff about you, they don't want to see that, they don't want to see your resume in a work setting or what you've accomplished. They want to see, oh dang, okay, he has a three-year-old and his three-year-old threw up on him. And that's, I've been through that, too.

Sarah Nicastro: Yeah. Who you are underneath.

Johnny Crowder: And all of a sudden you're like, "Man, you know what? I remember when my kid was three and I... Yeah, I want to give a little extra juice this week because I remember going through that" or, "Man, my kid is going to be three next year and I want to learn from this guy." So there's all of these opportunities to shift the way that you portray yourself in a work setting in order to provide more value. And in fact, most people think they're compromising authority and you're not. You're not. The people who have the most authority, if you think about virtually anything, the people who have the most authority are the people you like the most.

Sarah Nicastro: Right.

Johnny Crowder: For example, in my mind, if I've met you and I know you, you have more authority than the mayor of my city. Because I've never met the mayor of my city. So that, don't compromise, don't think that you have to compromise authority for showing your personality, because think about the people with the most authority in your life, they're most likely your friends and family.

Sarah Nicastro: Right. I was just going to say, I think the goal of authority in many cases is influence, right? And so I think that's going back to what we talked about earlier. Like hopefully you care about this topic because you just care. Right? But there is also an element of normalizing mental health discussions, not only because you care about your people, but because you don't need that hole in the boat, as you said. Same thing goes here. I wouldn't suggest trying to become more vulnerable as a leader just to exercise influence over people. Okay? It needs to be authentic. But when you can authentically connect with people in a human way, you do increase your influence over them. Do you know what I mean? There is also a correlation in terms of the positive impact on people, but also the positive impact on outcome. Right? So, that's a good point as well.

Sarah Nicastro: Okay. I know we're going to run out of time. I want to ask two other quick questions, Johnny. The first is, if you see an employee is struggling or if you know an employee, hopefully at some point it feels comfortable coming to you and saying that they are struggling, what is the best ways for a company or a leader to offer support?

Johnny Crowder: So, number one, don't be empty handed. Like don't say, "Well, no one's ever asked us for stuff so we don't need stuff." Wrong. Now is the time to have a few go-to resources. And I would say, make sure those resources are tiered. Don't give them three of the same type of thing. Like we have a red one, a blue one and a yellow one. Be like, what is your scale of need right now? Are you like a one to three? Are you a four to six? Are you a seven to 10? And then have at least one option in each of those categories? So I would say if you... Most people say, I want a suite of products to hand people, just make sure that they're covering different bases.

Sarah Nicastro: Right.

Johnny Crowder: And then I'll say, if you're identifying someone who might be struggling, the best thing you can do, best thing you can do is take them out to lunch. Best thing you can do. And no pretense, no anything like that, and just like spend time with them. Because I can almost guarantee, like food makes people let their guard down. If you take them out, you don't have to be like, "So how's your mental health lately?"

Sarah Nicastro: Right.

Johnny Crowder: Just be like, "Hey, just wanted to take you out. And I had a gift card to Chili's, so I thought it would be nice for you to get out of the office for a little while," and just talk. But I would say in either scenario, make clear that if they share something, make it clear like, "Hey, you're not going to get in trouble for what you just said to me. So don't leave this office and wonder if you made a mistake or anything. You got to know, we're not going to be... I'm not going to like go to all these higher ups and be like, oh, listen, this is what this guy is going through." Just remind them as they leave like, what you just did was really important, now I'm clued in. I can help and we can see, we can actually work together to solve this rather than you trying to figure it out on your own. So you just made the best decision you could make, like reinforce that

Sarah Nicastro: Right. Positive reinforcement of articulating that need. Right? Yeah. That's a good point. Okay. Last question. Tell listeners what resources, offhand, do you recommend for folks that want to either expand their own knowledge on mental health or look at different resources for their organizations. What are your suggestions there?

Johnny Crowder: So I'm going to be biased and recommend Cope Notes and also my TED talk. But outside of that, I would recommend NAMI, the National Alliance on Mental Illness. I can guarantee there's an affiliate close to you and they'll have a pretty good finger on the pulse of what resources are available in your area. And also TED talks in general. They have a way of taking these really complicated like subjects and then distilling them down into like 15, 10, 20 minutes. And that helps. Even if you, from now on, you send one TED talk a month, or you watch it with your employees over lunch, or you send it out via email or whatever, you have it on your internal employee board and you have the TED talk of the month and it's related to mental health, people will watch that and it will make a difference, because education is key.

Johnny Crowder: If you make health education easy and communal in that, "Hey everyone, homework for over the weekend, you watch this TED talk, it will take 15 minutes. And then on Monday morning at the first 10 minutes of our all hands meeting, we're going to just talk about some insights that we gleaned from the TED talk." That's the stuff that changes culture.

Sarah Nicastro: Yeah. Very good points. All right, Johnny. Well, thank you so much for coming on and sharing. I really appreciate you being here.

Johnny Crowder: Absolutely. Thanks for having me.

Sarah Nicastro: You can learn more by visiting us at futureoffieldservice.com. If you within your organization are taking strides to de-stigmatize and normalize mental health, I would love to talk with you about that and have you on the podcast as well. The Future of Field Service podcast is published in partnership with IFS. You can learn more about IFS at ifs.com. As always, thank you for listening.

May 19, 2021 | 31 Mins Read

Foxtel Masters The Contract Workforce Model

May 19, 2021 | 31 Mins Read

Foxtel Masters The Contract Workforce Model

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Nunzio Bagnato, Director of Home Service & Advance Servicing At Foxtel, describes how the company has motivated its contract workers to be highly engaged, effective, and empowered to deliver the Foxtel brand experience.

Sarah Nicastro: Welcome to the Future of Field Service Podcast. I'm your host, Sarah Nicastro. Today we're going to be discussing a topic that comes up, conversation after conversation with opposing views and a lot of questions. I think we're going to answer some of those here today, so we're going to be talking about how Foxtel has mastered the contract workforce model.

Sarah Nicastro: I'm excited to be joined today by Nunzio Bagnato who is the Director of Home Service and Advanced Servicing for Foxtel. Nunzio, welcome to the Future of Field Service Podcast.

Nunzio Bagnato: Thank you.

Sarah Nicastro: Thank you for being here.

Nunzio Bagnato: How are you?

Sarah Nicastro: Good, good. Doing great. All right, so before we get into the contract workforce discussion, start by just telling our listeners a bit about yourself and your role and your background and anything you want to share related to Foxtel.

Nunzio Bagnato: Yeah, thank you. Look, as you said, I look after the home service part of our business as well as the advanced servicing. Advanced servicing is more to do with our case, technical case management and secondary activities that require some additional case management. But around 50% of my role, even 60% of my role is the home service, field service part of the business, and I oversee the field service part of that business as well as the contract relationship, all the field activities that involve installation, servicing the customer, upgrading the customer.

Nunzio Bagnato: I've been at Foxtel for 23 years, I've got 30 years experience in field service, originally started as a field technician at one of our first pay TV companies when I was about 20, and have been in the industry ever since and made my way up the ladder, and have now enjoy running a successful home service team here at Foxtel.

Sarah Nicastro: Awesome. Okay, so 23 years, that's a heck of a tenure, and you have that first hand perspective of what the front line job is all about. So I think that's really cool as well. I want to start by saying the audience of this podcast is a global audience and so we talked about the fact, Nunzio, when you and I connected previously, that the contract model is a more common model in Australia, and so I think that factors in to this discussion in the sense of maybe giving you a little bit more of a comfort level around it, but I think the practices that you have put in place at Foxtel for really mastering and optimizing this model, or something that is easily transferable or good food for thought for any company in any region looking to better leverage the value of a contingent workforce.

Sarah Nicastro: That being said, there does seem to be some debate around, is our contract workers the way to go, are they not the way to go? Are they the way to go, or are they not the way to go? In Australia, it's more common. You had mention that when you talk with colleagues in the US, the number one issue seems to be concern over control. Why do you think is?

Nunzio Bagnato: Look, I understand that concern. For many, many years we had some of those challenges. We had a traditional contractor model. Very transactional, very volume based model and the field technician was probably single minded focusing on what they can get from the role. It was the way we shifted that model, moved up to a more service based model, less transactional. And transformed what the technician should do and what the contractor's responsibility is in that contract.

Nunzio Bagnato: And it wasn't until we actually shifted to the new model and changed the way we operate and the way we engage with our vendors or our contractors, that's when we started to see the results of what we see today. We needed to change the culture. Traditionally a contractor model is transactional, it's a master/servant sort of arrangement, and you're going to get those type of results, you're going to get that behavior, you're going to get that culture.

Nunzio Bagnato: So, how do get a contracted workforce to feel and behave like your own field workforce without crossing any of those legal lines and having a strategic partnership where you have your contracting workforce or your contractors in the same building, side-by-side, part of your team, an extension of my structure and then have the field workforce change the way they interact with the customer, the way they actually present themselves. Shifting that model, introducing a score card model. And I know that every organization has score cards, but we didn't want to introduce a score card that was just something that we look at and tick and flick, it really had to be a way of working. It was the Foxtel way, if you like.

Nunzio Bagnato: And it was the program of work that we married with the score card and the rankings, and I'll talk a bit more about the score card. We did away with all those penalties in a traditional contracted model. In the past technicians will be penalized for not hitting KPIs or milestones. We did away with that. Our view was that we're dealing with adults. We want to have adult conversations with our vendors, our technicians or our contracting leadership team and have meaningful collaborative conversations.

Nunzio Bagnato: If they're an extension of my team, then we're having the same operating with them. We have those weekly meetings, we have those strategic meetings that actually drives us to meet our strategic goals. So, they are the key areas that we changed. To colocation, the extension of our team, the score card and the culture, and by the way, it wasn't like we just flicked it overnight. It was a journey, especially the culture phase. Shifting an entire workforce from a traditional contractor model to the model that we have today, we still have challenges today, but by large, we have been able to shift the workforce.

Sarah Nicastro: Okay, we're going to dig into all of that a little bit more, but I think one of the key messages that I want to get across to listeners here is that not only would you say that the cost efficiency of the model outweigh some of those concerns, but it doesn't necessarily have to be a trade-off. There are steps you can take and measures you can put in place to circumvent and alleviate a lot of the concerns that I think prohibit people from taking a deeper look at this model. Would you agree with that?

Nunzio Bagnato: Yeah. I don't disagree, no. You're right.

Sarah Nicastro: Okay, so let's talk then about some of those steps that Foxtel has taken to really shift things from that transactional more penalty based environment to one that's more collaborative, and when you said that we've gotten away from penalties and we've shifted, I know what you've shifted to, so I have a little bit of a sneak peek, but it made me think of parenting. They say that when you can give positive reinforcement, it's much more effective than punishment, punishment, punishment. So that seems to be a theme here as well.

Nunzio Bagnato: Well, it's an interesting point you make there. That exact point was pretty much when it came to the score card and how we actually managed the score card and the conversation we have with our field technicians. We wanted to focus on the positives. Every conversation had to be around the positives. What are we doing really, really well? And how? First of all, how did you get there? Not by luck. Not by sheer luck. You got there because you did something, you followed a particular sequence or you followed the process, or whatever it may be.

Nunzio Bagnato: Understanding how you got there, so we can continue to do that or improve on that is critical, so positively reinforcement and then what else can we do to improve? What are some of the other areas we can improve on? That is definitely how we approach our conversations. And that is at all levels. What I do when talking to my direct reports, when they're talking to the vendor or leadership team, we're talking to the field leadership team, when we're talking to the tech leadership team, it's the same, same conversation.

Sarah Nicastro: Yes. And I think that another aspect here is, if you're looking more for positive reinforcement, then how do you incentivize or reward these workers in a way that promotes those positive behaviors rather than simply penalizing them for a negative outcome. We're going to dig into that. Before we do, you mentioned that the score card was one pillar of this overall journey. Walk us back through the different areas of this, and then we'll dig into the score card specifically.

Nunzio Bagnato: We really needed to shift the way that the technician focused on the day. And prior to the score card or prior to our command center model being rolled out, our technicians focused on the traditional metrics like the completion rates, the misdeployment, blah, blah, blah. Really important, really important, but it was definitely drove a volume base behavior. Bang, bang, bang, bang, just get through the day as quick as I can, get the volumes through, because the more I do, the more I get paid.

Nunzio Bagnato: But that obviously impacted the way we actually serviced our customers, it impacted quality, it impacted safety, it impacted a number different areas of our business that we felt that needed to be addressed. And we lost the reason, we lost focus on why we're here. We needed to realize, we needed to take a step back and really make sure that everyone in our business understands why we're here. We're here to provide a service to a customer. In my case, we're providing entertainment to a customer.

Nunzio Bagnato: There was no focus on the customer when we're out there, so let's focus on the customer. We introduced the score card collectively with the leadership team, we introduced the score card that focused on four quadrants. And the first quadrant was all about the customer. It's about customer surveys and arrival on time. That's it. That's all I want to know about. If we go out there and we get a really good survey and great verbatims to go with that, and we've met their expectations by arriving on time, we've done what we had to do in that particular quadrant.

Nunzio Bagnato: And then we have our cycle quadrant, which is your traditional metrics, which is your completion rates and that type of stuff. The other quadrant is finance, and we wanted to focus on the finance component of what the technician does, because we do have a free issue model in our business. There are things that we need to keep an eye on and the contractors are a sub-contractor, their own business. So they need to understand how they impact the financial component of the score card. Nothing major, just something small, just for them to keep an eye on, but it's really important for us to keep track of our free issue and inventory.

Nunzio Bagnato: And then the last quadrant is quality and safety, of quality mainly. I'll talk about safety a second. Safety doesn't sit in the score card for us, safety is the qualifier, the gateway. If you fail any safety audits, then you are disqualified from your score card for the month. It's irrelevant how good you are in your score card, you fail safety, then you fail the whole lot. So safety is a gateway into the score card.

Nunzio Bagnato: And in the quality quadrant we have revisit, so the amount of times a job needs to be returned within 30 days. And what's important for us is having the set top box connected to the internet and the work involved in doing that. There isn't a lot of KPIs and it was by design. We don't want to have too many, but we've identified the key areas of our business that we want the technician to focus on. And each quadrant has a 25 point rating. So you can get a maximum of 25 and there are some thresholds.

Nunzio Bagnato: That score card is important to the field technician, because we lend idea from Uber and have a ranking, and the ranking, which is our bronze, our silver, gold and platinum, determines the priority of routing. So when it comes to routing, if you're a platinum technician, and you're been a platinum technician for that month, then for the next month you're going to enjoy priority routing, so you'll be the first technician to be routed. So all the platinum technicians get routed, all the gold guys next, all the silver guys and if there's anything left, the bronze guys will get the rest.

Nunzio Bagnato: That's really important for our business. Especially important for a contractor, a sub-contractor if you like, because this is their business. They have to ensure that they've got continuous work coming in so they can actually run their business. And for us, we're driving a culture. We're shifting the way the technician manages the customer. They sit down with the customer, they have that interaction with the customer, they service the customer, they really deliver what we want them to deliver and then they're doing everything else on the job they need to do. Making sure they complete the job, making sure they do this, they do that, from a quality point of view.

Nunzio Bagnato: When we first started this journey, it was five years ago, and we launched the score card model, 70 odd percent of our field workforce were bronze technicians. And we're really proud that right now, 70 odd percent of our field workforce is predominantly platinum and a little bit of gold. And that's taken a lot of work from our leadership team as well as the contractor leadership team. It is a lot of side-by-side compensations to get that team, the field team to operate where they need to be today.

Nunzio Bagnato: The score card really is identifying those KPIs that you want to focus on as a group, and introducing that KPI that's going to shift the way you operate, the way you service the customer and not put in any type of KPI, I mean, you can have a laundry list of KPIs, you can really get carried away, but we chose the eight. And we chose the eight for a reason, because we wanted to shift the way we operated, shift the way we serviced our customers, and we felt these KPIs did that.

Sarah Nicastro: There's couple things that I think are really interesting. The first is this recognition that I think a lot of the hesitancy around the contractor model, when you look at why do people feel they need to maintain that control. At least in my conversations it's primarily to protect the customer experience. Yet, when you're running a volume based business, you're working against that objective to some degree, just by incentivizing volume, volume, volume.

Sarah Nicastro: The incorporation of those customer focused metrics was an important step in helping your contract workforce understand, "Okay wait, we've realized the volume is not the only thing that's important here, and we need to prioritize the customer experience a bit more." I also think though there's something to be said about the simplicity of what you're choosing to track and how. So to your point, if you had a quadrant with eight KPIs in each square, it just becomes convoluted, it's harder for people to understand, they might not be as engaged in paying attention to what their rank is, and really simplifying that.

Sarah Nicastro: Now, one of the things we talked about though, is that those KPIs, you like to focus on two per quadrant, so the quadrants are identified, you like to set two KPIs for a quadrant to keep things simple, but those KPIs can change based on what the business' biggest priorities are. Can you talk a little bit about that?

Nunzio Bagnato: Absolutely, and it's really important to know that this score card is, all the KPIs that make up the score card, is fluid. There are some KPIs that will not be removed. I mean, customer satisfaction is one of them, that is always, that's cemented in, and that's important that we understand that, that is a number one focus.

Nunzio Bagnato: But from the moment we raised or launched the score card to where we are now, we've replaced these KPIs. In the early days when we launched the model, that's the command center model, and we introduced a new field service scheduling system, we needed the technicians to change the way they interacted with us and how they use the system, and I required them to follow a couple of different steps, click button here, click button there. And we just couldn't get the field workforce to do that. So we included it in the score card. Button compliance was critical to our success. Especially when you're working a workforce scheduling system that we share that depends on the technician clicking on-site and clicking off-site, so we can get accurate timings, get the data we need to be able to run an efficient business.

Nunzio Bagnato: So we had button compliance. We also had time on the job. We identified early on that technicians were doing seven minute service calls. And in a contract in the old world, that make sense, because you're pumping through a lot of volume, but in our world now, it's like, seven minutes, how do you actually knock on the customer's door, rate the customer, diagnose the problem, fix the problem, explain the problem and then take the customer through the ending of the interaction in seven minutes? It's not possible.

Nunzio Bagnato: So job timing were as important and trying to change, not asking the technician stop doing jobs quickly, it's about can you explain to me how this seven minutes service call happened? Can you please explain to me how we can actually increase the time? Have you gone through each of the steps on the scope of work? And it's just educating the technician on what we expect from them, and what our customers expect from them and what you should be doing in each of your jobs.

Nunzio Bagnato: And we're not suggesting for a moment that every technician spend an hour, an hour and a half on every job, you're going to have different technicians spending different times, but ruling out those little job times or those smaller job times, because you know we're not offering the customer the level service we need, was important. So we introduced things that we needed to focus on, that we knew that needed to shift. Either shifted from a performance point of view or shift from a behavior slash culture point of view. And we continue to look at what kind of areas of our business do we need to now reintroduce.

Nunzio Bagnato: Now, we don't do it as often as monthly, in actual fact, we went early days we did six months, now we've extended it out every year. So every year when we enter into our new financial year, we will review our score card and we will have a look at what we're going to include this year, what is our focus, so what is our strategic focus this year, and how does the field actually contribute to that. Do we need to change our score card, or do we need to change the target, and do that.

Nunzio Bagnato: And by the way, we don't just decide in this office and then roll it out, we have the conversation with our service provider or our contracting company, then we pressure test it with our field leaders and then we pressure test it with a focus group of technicians and we get feedback. And when they're comfortable, we're all on the same page and we got the right feedback and we're going to achieve what we need to achieve, then we'll formally roll it out as a change. In our model, we don't just do things for the sake of doing it, or we don't just change things and expect the rest of the business to fall in line. They're the ones that actually going to be delivering this, so we need to understand, is it something we're going to be able to successfully achieve?

Nunzio Bagnato: The score card is not only for the technicians. The score card is aggregated all the way up to me. So the score card the technicians look at, and we'll talk about the other score cards in a second, that is how everyone's measured. It's not only for the field techs, the score card model is aggregated all the way up to me, so everyone's got skin in the game here. I don't have a different set of KPIs, we all got the same KPIs, we work off the one score card.

Sarah Nicastro: Okay, tell us about the other score cards.

Nunzio Bagnato: We've got a command center and planning team that's co-located as I said to you earlier, and they have their own score cards. So the command center have their own score card and the planning team have their score card. There are shared measures or shared KPIs, things like customer satisfaction, completion rates, they are shared. They are things that we believe that everyone in this group has the ability to influence, and there's a couple of other KPIs that are shared. And then there are KPIs that are specific to their role.

Nunzio Bagnato: The difference with that score card is, they're employees of the contracting company, so they're not sub-contractors, so they're on salary. Their score card is linked to their bonus. For example this year, the target is gold. If they achieve a gold average throughout the year, they get a 100% of their bonus. If they don't then they get a percentage of their bonus, and it's really, again, same sort of operating rhythm, a weekly side-by-side conversation. Going through the score card, focusing on the positives, identifying the opportunities, having a look at other peers and bringing in those peer-to-peer conversations, the coaching, the mentoring to help that individual be successful.

Nunzio Bagnato: But the way it operates here, is that we have, an example be the Victorian Command Center Optimizer, we'd sit down with the Victorian Planner, we'd sit down with the Victorian Field Leadership Team in their weekly meeting and they would share their KPIs and work through their plan of attack for the week. Now, there is a focus, and then they go away and hopefully that plan they put in place is going to yield them the results they planned and then happy days. We keep moving and get better and better with it. So they work really closely together.

Nunzio Bagnato: And you've got a combination of contractor versus Foxtel employee in those conversations as well.

Sarah Nicastro: Yeah, that's one of the things you said earlier about even when you're making changes to the field score card, you're asking for feedback, and I think that's another good point, is just because you choose to leverage a contractor model, does it mean that you can't value and treat those employees as a part of the business. I think there's sometimes this perception that its internal or external and it sounds like you guys are doing a good job of making sure that you're listening to that feedback, incorporating that feedback and prioritizing those employees' voice in a similar sense of W2 employees.

Nunzio Bagnato: Well, we value the technicians, we value... My view is they have a voice. They have a very strong voice. They're the only face-to-face contact we have.

Sarah Nicastro: Right.

Nunzio Bagnato: When you look at our business, every interaction the customer has, is going to be over the phone or via chat or online. The field technician is the only face-to-face they have. So they are prime to tell us exactly how we can improve the customer experience, they are in a perfect position to tell us how to improve our business, because they are doing what they need to do to get the jobs done at the standard that we expect from them. They've got a voice in our business. Our field and myself, my field leadership team, my leadership team, have always been front and center in toolbox meetings or any type of technician gathering. They're out and about. We don't just sit in an office and cut ourselves off from the world, because I think having those face-to-face relationships, not only are you getting the feedback from them, you're helping them understand our strategy, the reasons why we make decisions.

Nunzio Bagnato: We are helping them with our message. We're actually developing a really strong relationship at every level. We're not hierarchical at all. I mean, I've had conversations with multiple technicians. I have technicians call me, text me, and I'm okay with that, because that is a window, that is a portal into their world that I need. So how do I improve my business if I don't have the relationship with the guys and girls that are doing the hard yards every single day?

Nunzio Bagnato: And I was a technical as well, so I've got a soft spot for them as well.

Sarah Nicastro: Right, right. Now, we talked about the tiers of technicians and the prioritization of routes. So the platinum technicians get the best routes. Are there other incentives tied to their achieved tier or is that the primary, I guess, incentive for them to work toward platinum, gold, etc?

Nunzio Bagnato: Well, as soon as you're a platinum technician, you've been given the opportunity to actually take on additional work or other types of work, for example, our VIPs and escalated customers are only serviced by platinum technicians. When we make a promise to our VIPs and we're sending out a technician, we're sending the best of the best, because they have a proven record. They're excellent customer experienced, they're excellent in every other KPI on the score card, but they've got a history of being a platinum technician.

Nunzio Bagnato: And any other type of additional event sort of work or any type of additional work that we need highly skilled technicians, they've been the first guys we go to. So there's a benefit of being a platinum technician outside of just the usual work. We just recently introduced the platinum plus, and that is because we identified that there is a group of platinum technicians who have been platinum for a very long time and they go the extra mile, but it's not captured in the score card. Like, they've always getting five out of five in their surveys and then another platinum technician is getting four point nine or four point eight, but they're always achieving, so they are high achievers. And we felt there's an opportunity for us to introduce platinum plus for those high achieving technicians. Allow those platinum guys to go the next level, to provide the next level of service. Really drive that customer interaction, really drive the way they service the customers and the way they operate, and recognize those guys that are continually hitting platinum. So we introduced platinum plus.

Nunzio Bagnato: From a routing perspective, it doesn't change, but we've got other benefits. Benefits like tickets to premiers, tickets to the football, any of that type of additional benefit, we're happy to provide to those platinum plus guys. And we've already got, we introduced this, what, in June? Sorry July, and we've already got close to 10% of our workforce sitting at platinum plus.

Sarah Nicastro: That’s great.

Nunzio Bagnato: Yes.

Sarah Nicastro: So talk a little bit more about the impact this journey, the score card has had on I guess A, service delivery and B, the contractor engagement.

Nunzio Bagnato: Well, from a service delivery perspective, I mean, we have achieved and we're enjoying probably the best patch of our journey ever. Our KPIs, our performance, the way we operate from an efficiency point of view, the level of service we offer our internal customers here at Foxtel and external customers, is probably the best that it's ever been. So when I just sweep through the KPIs in our business, we're not just improved, we've blind them out of water in a lot of cases, but for me, what's really important about that is sustaining that type of level of performance and keep the team striving for more.

Nunzio Bagnato: Our completion rates for example in the early days when we first launched this, now five years ago, we were kissing 87% completion rate, which means 38% of our customers were being not missed, but jobs waiting to get done. We're enjoying now an average of 94, 95%. It's not unusual for us to hit 95%. In actual fact, when we don't hit 95%, we scratch it and say, "What went wrong?". But that's where we are right now. Customer satisfaction, we never used to measure that, we introduced that as part of the command center launch, but in the early days that was sitting at three out of five. We are now averaging four point nine and four point nine five. And the verbatims we're getting from our customers is nothing but complementary about the level of service we provide our customers, the time we do, turning up on time, spending the time going through each of the scoping out of the job, providing the level of service that they expect from an organization like ours. And that's what we want to see. But there are other opportunities for us to improve on that.

Nunzio Bagnato: We're enjoying a patch right now that we've never experienced at Foxtel and we're not done. We believe we can do a lot more, a lot more. This is an ever changing environment, especially pay TV, field services is becoming tougher and tougher every single day. There are pressures that every field service organization around the world is dealing with. And we believe there is another iteration of what we've got here. We call it the command center model, but we believe there's another iteration that we want to tap into that is organic to where we need to go to.

Nunzio Bagnato: But from a partnership point of way, I think we've identified that the level of engagement we have with our field team, as well our contracting team, it's the best it's ever been. And that's because we moved away from that master servant model, allowed them to be in the driver seat. Sit beside me, let's work through this together, my KPI is your KPI, that type of stuff. But what's more important is that they drive the program of work. They focus on, they provide the areas of focus. They're the ones that are actually driving the change on our behalf, and we're giving them that control in allowing our vendors or our contracting company to set the agenda, so they're highly engaged.

Nunzio Bagnato: And that's because they're running this like their own business.

Sarah Nicastro: Now, when you decided to make this shift, the whole journey, part of that was a plaids word customer-centricity, and you talked about the fact that the technicians are the face of Foxtel, they're the ones that are interfacing directly with the customers, and so part of this was moving from that transaction and volume based approach to having them present and interact in a way that was in line with Foxtel's brand and persona and quality levels.

Sarah Nicastro: How did the score card method help in achieving that outcome?

Nunzio Bagnato: Well, we had to take a step back and we had to look at the Foxtel technician. What does a Foxtel technician look like? What is the future of the... What's the Foxtel technician of the future look like? And at that point in time the Foxtel technician looked like a standard trainee. I mean, if you had a plumber stand beside one of our Foxtel technicians, you wouldn't know the difference. They looked the same, they spoke the same and they serviced the customers the same way.

Nunzio Bagnato: And I'm not suggesting that plumbers don't service customers, but I was trying to illustrate here is that the Foxtel technician felt and look like a trainee. And when you look at what we were delivering, we're delivering entertainment. That's what we do, and we're providing a customer a form of entertainment. And does a Foxtel technician need to be in a trading uniform. Our old technician used to be in high V's vest with, we call them silicone snot marks all over his uniform, scruffy looking dot dude, turn up to the customer's house, grunt his wife through the job and get the hell out of there as quickly as he possibly can.

Nunzio Bagnato: That wasn't in line with the product we were providing. It wasn't in line with our brand. So we had a look at what does a Foxtel technician, what should it look like? And it needed to be somebody who was groomed, well groomed. Who presented himself really, really well in a standard Foxtel uniform who had really good soft skills. So we changed the way we recruited our technicians. We had technicians that were highly skilled when it came to installing Foxtel and servicing Foxtel, but when it came to the soft skills, there was an area of opportunity. So either we had to train up those guys in their soft skills, or when we were recruiting new technicians, they were really good with the soft skills stuff, really good with the customer experience, really good with the interaction stuff.

Nunzio Bagnato: And we can train them on the technical stuff. We've got a really good training program to get them right up to the standards we need to provide them that highly technical ability, but that soft skill stuff, that interaction, that was critical to us. So we made sure that our recruitment strategy shifted and we focused on those type of men and women. And that, together with the score card and the way we actually discussed the score card, a program of work with the score card, shifted the type of technician we had out there.

Sarah Nicastro: Mm-hmm (affirmative).

Nunzio Bagnato: They are 100% focused on providing a service to a customer and they know that they need to turn up with their ID, with their uniform, well-groomed and interacting to follow the scope from A all the way through to Z, because that is what we expect from a Foxtel technician. That is what's getting sure that they provide the level of service the customer expects from us. That is what helps them achieve a good score card. And if that all goes into plan, then they are almost guaranteed work.

Sarah Nicastro: It makes sense.

Sarah Nicastro: Yeah. So the other thing that you've mentioned that was key to all of this is the command center. The score card method and the command center work together to give the technicians the ability to focus more on that service experience. Talk about the command center's role in allowing the technicians to focus as much as possible on that customer interaction.

Nunzio Bagnato: When we designed the command center, we designed the field component to empower the technician to have full control over it, his or her day. We wanted the technician to be able to do everything from their device, control their day. But we also said is that we want you to focus on the job that you have in front of you. The old technician would be doing the routing, the jeopardy management, the rescheduling, the whole lot. Your role, let's define your role, your role is to go into a customer's house and service them and do what you need to do, do whatever is on the work order, but when you're at that house, you are 100% focused on that customer. You're not worrying about your next job or your route or whatever, tomorrow's route or whatever, 100% focused. But I'm giving you full control over that job.

Nunzio Bagnato: If a technician's day goes to plan, the command center will never interact with the technician. And we have technicians that go through days where they're not interacting with the command center. The command center only gets involved when the job or the route goes off path. And they only manage by exception. They're there to provide them support, but they're also there to take away all those admin type of tasks. If the day doesn't go to plan, the command center will identify that before the technician knows that your day is going off track. A job or some jobs in the afternoon present themselves at risk. The command center will reach out, the technician validate that, that's the case, because sometimes it's not exactly, the technician may be finishing off a job and as soon as he finishes that job off, the day corrects itself. We just want to reach out and make sure, the technician confirms that he's still on the job and may be out there for a while, and the command center will manage those jobs that are at risk, utilize or reroute them to another technician in the area to make that point of window.

Nunzio Bagnato: In most cases we will do that or bring another technician to the area to meet that time stop. In worst case scenarios that we're not able to meet that time slot and the command center will manage the customer.

Nunzio Bagnato: But there also is a where's my tech solution out there when the customer can self-service as well, so they can actually have a look the way the technician is and work out exactly when he or she is estimated to arrive and obviously job out their day to ensure that they, they do not have any inconvenience any way. So the command center really is there to provide them that support and level service and manage by exception. Again, if the day goes to plan, the technician would not speak to the command center. But there are scenarios where they have it.

Nunzio Bagnato: You've also got a planning team which is part of the command center and they are all part of the planning component leading into the day and they are highly important to the technician's score card, arriving on time, it's all about the planning, completing your job, it's all about the planning. Planning team have weekly discussions with the field leadership team about improving the quality of routes, improving the capacity, utilization rates and all that type of stuff.

Sarah Nicastro: Yeah, I think what's interesting to me is, you've recognized the need to enable your technicians to focus more on the customers, you've incentivized them to do that through the score card, but you've enabled them to do that by eliminating a lot of that administrative parts of the job so that they have the capacity to focus more on that interaction instead of those other manual or time consuming tasks.

Nunzio Bagnato: Yeah.

Sarah Nicastro: Yeah. Okay, all right, last question is, if someone's listening who is thinking through how to begin to leverage or how to better leverage contract workers, can you first summarize the value. What is the reason that this model can work and work well for organizations?

Nunzio Bagnato: I think a contractor model and the reason why a lot of organizations go to a contractor model is because it's not a fixed model from a cost perspective, and the attractive component of that is it becomes variable. And it depends on what kind of contractor arrangement you have, but most contractor models are variable and that's the attractive component of it. But with that comes a lot of pain if you don't manage it right. If you don't have the right relationship, if you don't have the right partner and you don't treat them like a partner.

Nunzio Bagnato: If you treat them like a contractor, you're going to get contractor results, guaranteed. So we've been able to take a trade-like sort of service and make it feel like a Foxtel service. But it's not unique to us, I mean, we can take this model anywhere, because it's not specific to Foxtel. What we've introduced, what we've built is transferable to any type of industry or any type of work I should say.

Nunzio Bagnato: If you treat your vendors like a contractor, you're going to get contractor results. It's about having a really strong strategical partner that can work with you and work side-by-side. And you're going to have to be okay with being challenged. In actual fact, we get frustrated, because we know we don't get challenged enough. We want to be challenged. I don't have all the answers, but the contracting company that we've engaged to do this type of work, that's what they specialize in, that's what they do really, really well. So they need to bring that to the game. They need to bring that to the table and you need to allow them to do that. And it's okay if they challenge you.

Sarah Nicastro: What's your best advice for someone to get started with incorporating a model like this, a score card model? How can you begin that transition from, all right, we're looking at this like a contractor thing, it's a volume based thing. We realize we need more. What's the best advice to begin that journey?

Nunzio Bagnato: For me it's don't try to do too much too soon. Understand exactly what is your desired end state. What is your desired outcome from that field workforce, and just keep it simple. Just really start off simple and then try to remove any of that complication. Allow your field, your leaders to understand exactly what you're trying to achieve and then build on that. Just start off slow and build on that.

Nunzio Bagnato: Focus on what you want to do and be very clear with that message, and everybody involved, from you down, needs to be singing from the same hymn sheet, they need to be with the same messaging. And it's okay to mess up, it's okay to mess up. In actual fact, as long as you don't break something, it's okay to mess up. Go ahead, mess it up, because it will only get better by messing up. Got to give them the freedom, you've got to make sure that they feel safe in the environment to do what they need to do, but they're not going to be losing their job over it.

Nunzio Bagnato: You can't penalize somebody for having good intent. I'll never remove a technician from the platform if his or her intent was to service the hell out of a customer and they've gone outside of the process. Processes are guidelines. I'm taking them as a guideline. As long as you've done what you needed to do to get the customer online, happy, enjoying Foxtel, it may not be the standard process, but I'm okay with that. That's what we're in the business to do.

Sarah Nicastro: Yeah, that's another good point, is that empowerment, because empowering the technicians to deliver the customer experience in a good way, even if that isn't picture perfect or whatever, it shows that you trust them and value them which goes back to that engagement and that buy in of what the mission is. But I like the point of keeping it simple. Again, the way that you've se the KPIs so that it's a consumable amount of things to focus on at once and if you can prioritize, here is what's most critical, then incorporate that, start there, and as you start to see progress and improve, then swap out some of those KPIs to get to that next wave.

Sarah Nicastro: You're not set in stone, you just need to figure out where to start and get started.

Nunzio Bagnato: But then I need the KPIs and score card, it's the processes or the way you've structured the team. I mean, start off small. Start off in a controlled environment and then keep adjusting. Don't stand still, keep adjusting and then you'll find your sweet spot. Once you found that sweet spot, bang, you're off and running.

Sarah Nicastro: Good. All right, Nunzio, well thank you so much for joining and sharing, I really appreciate it.

Nunzio Bagnato: Pleasure. Thank you for the conversation.

Sarah Nicastro: Absolutely. You can learn more by visiting us at www.futureoffieldservice.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 by visiting www.ifs.com. As always, thank you for listening.