Six Characteristics of Highly Effective Service Organizations

Six Characteristics of Highly Effective Service Organizations

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Six Characteristics of Highly Effective Service Organizations

To be fully successful with services you must keep the customers you have and create opportunities to expand relationship value.

This means that you must deliver positive customer experiences and meet increasing customer demand and satisfy higher customer expectations – cost effectively.

Here are the six characteristics of highly effective service organizations.

1. Service Strategy Delivers Outcomes

A well-defined plan helps you to be successful with services.

Strategy defines what an organization wants to accomplish and how it will prioritize initiatives and allocate resources to achieve outcomes. Service organizations need a strategy to set goals, define priorities and establish plans.

Highly effective organizations define how teams including Services, Development, Sales, and Product Management cooperate and coordinate efforts across the company to cost effectively meet customer needs and attain business outcomes.

2. Service Offers Drive Growth

A well-defined portfolio of service programs is essential to retain and expand customer relationships.

Service programs establish customer expectations and define how companies monetize service delivery.

Service portfolios need to meet evolving customer needs from onboarding through adoption, support, success, and modernization stages of product ownership.

The right service portfolio design will engage customers, accelerate time-to-value, and increase the likelihood of renewal and expansion.

Highly effective organizations monetize support and success services by offering catalogs of high-value services that customers want and Sales can sell.

3. Service Team Design Promotes Collaboration

Organize the right people in the right roles to do the right things cooperatively.

Every team within an organization is accountable for contributing to customer outcomes. Organizations need to have the right people with the right skills and responsibilities incented to do the right things.

When teams cooperate and work towards common objectives, they are efficient and effective in delivering what is promised to customers.

Highly effective organizations break down organizational silos and maximize cross-functional cooperation to achieve shared objectives and deliver better customer experience at every touchpoint.

4. Processes are Streamlined and Cross-Functional

Define activities and actions to achieve desired service outcomes efficiently.

Process defines what organizations do and how they do it. Service processes need to encompass delivery of services, engagement, and renewal of customer relationships, and strengthen service delivery capabilities.

Highly effective organizations increase service efficiency when key activities are well-defined and best practices embraced.

5. Technology Drives Efficiency and Innovation

Innovate, automate, and scale service delivery cost effectively.

Technology enhances service capabilities and enables new ways to engage customers. The right use of service technology will scale delivery capacity, improve customer experiences, and deliver better business outcomes at lower costs.

Highly effective organizations leverage technology to streamline and automate core service functions and find new and better ways to serve customers.

6. Access to Data Leads to Meaningful Insights

Insights drive process improvement, efficiency gains, and better customer experiences.

Highly effective service organizations have the means to measure the contribution of service initiatives to specific corporate goals and objectives. They use insights to predict and prevent issues and escalations and identify opportunities to mitigate churn and expand relationship value.

Apply theses 6 characteristics of effective service organizations to maximize service success.

  1. Define your service strategy.
  2. Offer a robust portfolio of services.
  3. Organize teams to maximize cooperation and collaboration.
  4. Embrace best practices.
  5. Modernize technology.
  6. Develop and apply insights

Would you like to discuss how well you have embraced these Six Characteristics of Highly Effective Service Organizations?  Would you like examples of effective service strategies and metrics? Contact ServiceXRG. Use the chat button at bottom right, send an e-mail, or click on my calendar to schedule a specific time.​

Accelerate Customer Success.

Download the ServiceXRG Playbook:  Customer Success Management and discover:

  • How to establish customer needs and plan for successful outcomes.
  • What it takes to help customers adopt and apply your products.
  • Key success indicators and the means to monitor progress.
Download the ServiceXRG whitepaper, "Ensuring a Successful Journey to Customer Success"

SURVEY SAYS: Top Service Challenges For 2022

SURVEY SAYS: Top Service Challenges For 2022

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SURVEY SAYS: Top Service Challenges For 2022

Each year we begin by asking you about your top service challenges. Here are the results for 2022.

Top Challenges for 2022

It’s no surprise that staffing is a top-of-mind issue for many service leaders.  Establishing the right metrics to measure service performance and impact is also a top-of-mind issue.  Rounding out the top three challenges is reducing customer churn

Overcome your challenges to be successful with services!

Let us help you get a handle on your priorities and most pressing challenges. We identify inhibitors and gaps to your success and introduce ways to overcome barriers.

We can help –  Let’s talk

 

You can also find many useful articles and reports about the challenges you face in our Blog – check it out.

Exclusive Research Report:

Support Transformation: The Guide to Essential Practices and Metrics

Download the ServiceXRG Support Transformation 2021 research report

Six Critical Service Practices for Business Success

Six Critical Service Practices for Business Success

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Six Critical Service Practices for Business Success

Corporate financial performance depends on Services to nurture, retain, and grow customer relationship value. Companies are taking steps to modernize services and shift them to proactive, success-focused growth engines

Being successful with Services is a company-wide strategic imperative.

Corporate financial performance depends on Services to nurture, retain, and grow customer relationship value. Companies are taking steps to modernize services and shift them to proactive, success-focused growth engines

It makes good business sense – consider the following:

  • For many technology companies over 60% of revenue comes from existing customers.
  • More than half of new revenue is (or soon will be) recurring from subscriptions.

Six Critical Service Success Practices

1. Have a Plan

Establish a service plan to enable and lead a customer-centric corporate strategy. Learn more.

2. Offer Value

Create high-value services that will drive customer outcomes. Learn more.

3. Create the Right Team

Build a Services team with the right people, in the right roles, doing the right things. Learn More.

4. Deliver Efficiently

Implement self-help and automation so you can focus on the most strategic customer issues. Learn More.

5. Measure the Right Things

Modernize Service metrics to clearly correlate service performance to tangible outcomes. Learn more.

6. Improve Performance

Harness customer insights to improve performance across the entire company.

The future for Services is bright and will continue to take center stage as companies recognize and respond to the necessity to create customer-first strategies built around effective engagement and retention activities.

Fresh, authoritative, actionable insights for Support leaders

Exclusive Research Report:

Support Transformation: The Guide to Essential Practices and Metrics

Download the ServiceXRG Support Transformation 2021 research report

Is it worth competing for Service Industry Awards?

Is it worth competing for Service Industry Awards?

Is it worth competing for Service Industry Awards?

Service industry awards hold the promise of providing tangible business benefit including recognition, awareness and a healthy self-assessment from the application process. But, are service industry awards worth the effort?

The Pros

Service industry awards hold the promise of providing tangible business benefit including recognition, awareness and a healthy self-assessment from the application process.  Consider the following pros.

  • Award Winning – Being able to claim award winning service can enhance your marketing message, especially if your top competitors cannot make the same claim.
  • Clarify External Messaging – The process of completing an application often requires a review of current capabilities, accomplishments, innovations and strengths. Once the application is complete you have developed and revised the key points you need to communicate externally.
  • Self-Assessment –The application process often provides a healthy self-assessment of current performance and practices. An honest self-assessment will reveal both strengths and weaknesses.

The Cons

As with most things there is a downside to participating in industry awards.  The risk of losing the time invested to participate, and the potential for a disappointing return from the effort.  Consider the Cons when considering participation in awards programs.

  • Diluted Claims – The phrase “Award-wining” has become diluted by the claim of so many companies that they have won awards. Not all awards are created equal, nor are they all earned under the same conditions and timeframe. The often-used phrase “award winning” can appear with little explanation or substantiation.
  • Customer Impact – If you win an award will your customers and prospects even notice. The effectiveness of an award is directly related to the brand equity of the award or body presenting the award. Before participating in an awards program ask your customers and your sales team if it matters.
  • Winner or Loser – If you don’t win are you a loser? Some recognition programs publish both winners and the losers. If you do not have a high degree of confidence of winning are you willing to be classified as a runner up to your top competitor, or even worse labeled as a loser?
  • Time and Effort – Any award worth winning is going to require time and effort to develop a complete and compelling application. Be prepared to do it right.
  • Repeat Performance – Once you win, you are under pressure to continue to win.

Recommendations

Awards programs can offer sales and marketing benefit as well as an opportunity for self-assessment.  Consider the pros and cons outlined above to determine if it is worth your time and effort to participate.  When it comes to awards more is not necessarily better.  It is best to choose the awards that will provide the most benefit.  Consider the following recommendations:

  • Choose Wisely – Identify awards programs that are likely to carry weight with your customers.
  • Do Your Homework – Understand the judging criteria and the way that results will be published – win or lose.
  • Be Ready to Win – Be reasonably sure you have a chance to win. Do not enter an awards program just to see what will happen. Understand who the other likely participants will be and determine if you are ready to beat them.
  • Do it Right – Be prepared to invest the time and effort to submit a high-quality application.

Ready to Compete?

Are you thinking about competing for a service industry award?  Are you looking for the right program or category?

Give me a call, I can help.  I have written many winning award applications and judged numerous awards programs.

Tom Sweeny

CEO | ServiceXRG

Success Marketing and Portfolio Management best practices will help you position and sell the value of your Service portfolio

Download Success Marketing and Portfolio Management and discover:

  • The essential sales and marketing practices to position and sell Support and Customer Success offers.
  • Strategies for effective Sales enablement.
  • How to develop a compelling service value proposition.
Download the ServiceXRG whitepaper, "Ensuring a Successful Journey to Customer Success"

How To Successfully Change Your Service Organization and Culture

How To Successfully Change Your Service Organization and Culture

How To Successfully Change Your Service Organization and Culture

Change is inevitable in Services but often difficult, especially when it challenges current operational and organizational norms. When you can recognize the conditions that require change and can address the potential inhibitors you can prepare for a smooth transition to a new operating and organizational model.

Is it Time For a Change?

Is your Service team ready to meet the challenges of 2022 and beyond? Can you respond to current demands, support new products on the road map, and are your prepared to fully embrace an as-a-Service model?

Change is inevitable in Services but often difficult.

Change is especially difficult when it challenges current operational and organizational norms. When you can recognize the conditions that require change you can prepare for a smooth transition to a new operating and organizational model.

Consider the following indicators that signify change is necessary:

  • Customer Demand – Customers express explicit need for better coordination between service entities and enhanced responsiveness to product needs.
  • New Leadership / Vision – Service or corporate executives edict.
  • New Revenue – Pursuit of new revenue opportunities from new service sales (Up-sell/Cross-sell).
  • Customer Retention – Effort to stem customer deflection due to product and or service deficiencies.
  • Competition – Competitors (partners and/or product competitors) offer differentiation with coordinated service offers.
  • Product Transformation – Changes to product demand new types of customer engagement and/or programs.

Overcome Inhibitors to Change

There are always reasons not to change, but in most cases change is necessary.

Consider the following inhibitors to change and develop a response to address each:

Incentives

The specific goals of teams and individuals do not foster cooperation. Individual and team goals and incentives may need to change to drive new behaviors.

Executive / Corporate Philosophy

Attitudes such as “Technology first”, “we never did it that way before…”, “let the channel do it…” inhibit organic Service transformation. Change the culture with fact-based evidence to justify the reasons for transformation.

Lack of Vision

Lack of visibility into opportunities or risks of not making changes diminishes executive support. Make the case for why change is necessary. Quantify the net benefits to change.

Parochial

Views that protecting organizational “turf” is more important than corporate growth. Convert detractors of change into champions by convincing individuals that the change will result in a net personal benefit.

Rapid Growth

No perceived need to change during growth. It is hard to make the case for change when all performance indicators are positive. While change during high growth periods may not be necessary or possible, be prepared for when growth slows.

Too Busy

When there is a justifiable reason to change, then everyone can make the time to do what is right. Make the case that the benefits of change are worth everyone’s time.

Risk Averse

Change for the sake of change is never a good idea. All changes should be well thought-out and understood. A good plan should outline the risks in addition to the rewards.

Visualize, strategize, and optimize for service success and recurring revenue.

Download Transformation of the Service Organization, and discover:

  • An analysis of what’s working — and what isn’t — in current service organization structures.
  • The characteristics of mature, efficient, and effective service organizations.
  • The catalysts for organizational change — and how to overcome the inhibitors that get in the way.

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