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People & Organizations

Globalization

Globalization is a hot topic for service organizations today. This is a complex topic requiring volumes to fully address. However I would like to put forth a couple of strategic frameworks to consider as you consider, or re-consider, your worldwide service operations.

Globalize, globalization, being global, global services etc. are all over utilized terms that we hear every day. I like the definition used by Herman E. Daly, a renowned economist. He argues that sometimes the terms internationalization and globalization are used interchangeably but that "Globalization" means erasure of national boundaries for economic purposes. I also agree with the premise put forward by columnist, Thomas Friedman who says that with instant communications, better transportation and cultural integration, the world is becoming flatter.

In services, we tend to say “We are Global…” when we mean that we are only international. Paradoxically when we adopt a product for another region of the world we say that we are “localizing” the product. In the worst case scenario the term “globalization” is used as a euphemism for outsourcing or off-shoring the work force. If you hear your CEO say that they are going to “globalize” operations, make sure that your resume is up to date!

It is time that you start to re-think what globalization means to your company and how to take advantage of a flatter world. Many international service organizations use the “follow the Sun” methodology to provide support resources 24 / 7. The essence here is to have resources available to support customers during prime local business hours and to provide at least emergency support for customers in the off hours elsewhere in the world. A U.S. based customer calling for service after 5 pm in the Pacific Time zone might well be connected to a response center in Asia and so forth. This is an improvement over the days when you might have had to staff 24 /7 in each individual region or country, but is by no means optimal.

The Risky Business of Using Techs To Sell

A sizable number of technology companies use their technical support or field service engineers and technicians to sell a variety of services and solutions to their existing customers. The logic usually follows this rationale: On a daily basis, our technicians – or techs – see or talk to our customers who trust them. Therefore, they’re in a good position to do some selling. As those who have tried using their technical staff to sell can attest, this logic doesn’t hold up.

How Microsoft Sells Services Through Global Partners

When Microsoft merged companies including Great Plains, Solomon and Navision under the Microsoft Business Solutions (MBS) umbrella, service management had to reexamine business models, assimilate conflicting product support policies, integrate different systems and present customers with a unified global services offering. Here’s a recap of a presentation Jana Reinke gave early in October 2004. It wasn’t easy. Reinke recalls how each company had a different way of dealing with just about every aspect of service and support. Here are some of the tough decisions Reinke faced: Services Offerings

The Anatomy of a Service Turnaround

Two years ago, Neil Baron sat in a business review meeting at Brooks Software following a string of 11 acquisitions. When the focus shifted to maintenance, one product manager stood up and said, “For my product, our target is $10 million for the year. It’s now mid-year, we’re at $3 million year-to-date.” Incensed with what he heard, the then vice president of global sales asked for a piece of paper. He wrote: “Declining software maintenance revenue” on it, gave it to Neil and asked him to fix the problem in two weeks!

Does a Technical or Product Marketing Background Make a Good Service Marketer?

Six months prior, Frank Akamura’s company, IT Utility Corp. (ITU), began offering its services to the airline industry. ITU now has a handful of clients. Frank learns from ITU’s vice president of sales that the time is right to dedicate a small sales team to focus on growing the business in the air transport segment. “Who on your marketing team can be assigned to support this new sales team?” asks the top sales person. “We’re short-handed right now. My only marketer is on maternity leave. The only other person is really a marketing communications person who puts together the literature we use to support our traditional service sales people,” replies Frank.

The Fascinating Services Sales Compensation Mosaic

Recently, I asked our readers to tell us, in general terms, how their organizations handle services sales compensation. The early responses I received so far vary dramatically. If someone has thought of it, some company out there has adopted it. To be sure, best practices are clearly emerging. It’s the bad ones that make you wonder. The two-part question I posed to readers asked them to identify the group that takes the lead within their organization for maintenance contract sales. Then I asked about that group’s compensation mix. This is part of my research in preparation for writing a new book on the subject in collaboration with a few battle-tested colleagues.

The Road to Service Success Where Products Rule

Telecommunication manufacturers are still wrestling with the transition from a product to a solutions business. Companies like Motorola, who celebrates the 75th anniversary of its founding and the 20th anniversary of the introduction of the first cellular phone, basked in the sun of seemingly endless product revenues and margins for so long. With product revenues slowing down, the long-overdue transition is starting to take place.

Capturing Lost Revenue Efficiently

Ask someone who outsources people-intensive services and they are likely to tell you their experience is overall satisfactory on all accounts except one: outsource providers are slow or unable to adjust to the peaks and valleys of demand. Adding or removing people has not been a simple matter.

What Can You Cut When Your Budget is Slashed? Tom Schlick's Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Case Studies or Relevant Links Kevin is a leader who faces a challenge. But the last thing he wants to do now is whine about his predicament. He has credibility because of his past performance. Yet, if he sits back and allows Barry to make a decision, Barry will do just that. He should begin by meeting with his team to discuss alternative options and develop a strategy that includes not only cost reduction but also revenue enhancement – ways to better serve customers while still cutting costs.

What Can You Cut When Your Budget is Slashed? Dennis Gershowitz' Perspective

This perspective addresses a challenge presented in a ServicesRevenue business case listed under Case Studies or Relevant Links This is a scenario that we frequently see in our current economic environment. Tough times demand managerial flexibility. One test of the strength of a company’s management team is their ability to react to change quickly.
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