Original article by Jim Hare
Do you know what the true purpose of your field service organisation (FSO) is? What are you trying to achieve on a daily basis? What are your goals?
Here’s one way to look at the development of your FSO.
Peter Drucker is a renowned management consultant. In 1973, he famously said that the “only purpose” of any business is to create a customer. A different way to look at things.
Re his 1973 statement; It’s part of what business people who have studied Drucker call “The Five Questions,” which are visually represented here:
In a recent article on Harvard Business Review called “The Internet Is Finally Forcing Management To Care About People,” the author (business journalist Steve Denning) makes this point about profits, share prices and revenue:
The foundation is Peter Drucker’s insight of 1973: The only valid purpose of a firm is to create a customer. It’s through providing value to customers that firms justify their existence. Profits and share price increases are the result, not the goal of a firm’s activities.
Read that last sentence. “Profits and share price increases are the result, not the goal of a firm’s activities.”
This is important to remember as you manage your FSO on a week-to-week basis. If you work within a service industry, your ultimate “product” to a client is the service you are able to offer them. It needs to be quick, efficient and hopefully (in their minds) cost-effective as well. If you run a HVAC business, there’s a good chance your customers don’t know how to fix HVAC units. As a result, they’re not judging you on the process you used. They’re judging you based on how they felt about the service and all relating aspects of that service.
The objective, usually, is to create (and retain) customers. That could be done through providing strong customer service. The strong service is the action. The objective is creating customers. The result? Money. Profits. Revenue.
Those are the results – they are not the goals or objectives.
This may sound like semantics, but it’s important to understand. Many leaders of FSOs think the goal of their field service operation is to make money. That’s actually the result of the real goal, which is to create customers through providing great service.
This is all part of a complicated quilt around how to turn your FSO into a profit centre.
We have put together an eBook on just that, titled 10 ways to make your field service organisation a profit centre. We run through different options from sales/marketing help to productivity/collaboration tools and provide you with ideas in each case for how to evolve your operation into a profitable one. You can download it now.