Delegation vs. Abdication

I was recently listening to Perry Marshall, and he was talking about something that really hit me.  He starting talking about delegating your workload.  And delegating sounds like a great idea in theory, but being a small business guy, I don’t have a lot of people I can delegate things too.  But when Perry started explaining that delegation can be contractors, part time people, or even just a virtual assistant that works for you an hour/day, it started to hit me that delegation is good.  That’s when he went into a better explanation of what delegation means.

A lot of people look at delegation as “here, do this for me and let me know when it’s done”.  Literally, just throw it over the wall and forget it.  This is abdication, and this is absolutely what you DO NOT want to do.  As soon as throw something over the wall, it either doesn’t get done, slips through the cracks, and can potentially cost you a lot of time and money to fix.

Now, Delegation is best described as a four step process:

1. Request – this is where you ask someone to do something for you.  Pretty straightforward.  What do you want done, how do you want it done, when do you need it by, etc.  All the details you need to do a clean hand off.

2. Negotiation – this is where the other person tells you what they can do.  This might be a later date, or less functionality.  For example, I can build you the project plan by next Friday, not Monday when you originally asked for it.  Then you have to decide if you can wait that long, or if there is an alternative (perhaps have it partially completed by Monday, or find someone else to do it).

3.  Perform the task.  This is where the other person takes the agreed upon specifications from step 2, and does the work.

4.  Accept the task.  This is by far the most important step.  this is where you need to review what was done, and determine if meets your needs, if the other people lived up to expectations, or did they delivery something half complete.  If it isn’t done right, it’s now your responsibility to get it finished, or return it back to the party that did the work, and reject it.

Now, the whole idea behind this is that you one way or another, you are still responsible for anything you delegate, and it’s still your job to verify it was done to your standards.  If you accept it, then it’s on you for anything done incorrectly.

So remember, delegation is not just handing it off and hoping for the best.  It’s still a process, and you still need to validate it was done correctly.

thanks for reading,

Service Notification ROI – Service Contracts

You know, it’s interesting.  I’ve done SM for so long, but I never really went through the exercise of why?  or what’s in it for me?  It wasn’t until a recent demo I gave pitching the power of SAP SM, that it really hit home for me just what you can get from using SAP SM.  Well, today’s post is no different.  Today I’m going to talk about using Service Notifications to drive your service contract business.  Now you might be thinking you already know about connecting your service notifications to your service contracts.  And you’d be right, that is a great piece, but the real power comes from analyzing your notifications to determine what products are worthwhile to offer a service contract program.

Now, the initial thought might be to offer a service contract for everything you sell.  While this isn’t necessarily a bad thing, you might be incurring a lot of additional cost by using this catch all approach.  In a future post, I’ll talk more about the ROI of using service contracts.  Today, I’m going to focus on what you should offer a contract for.  How can a service notification tell you what products to offer “extended warranty”?

First, you start by looking at the volume of notifications by material number by product age.  This is going to give you a really solid first pass of a product worthwhile of extended warranty.  The idea behind this approach is to look a product, and find out when the majority of issues occur?  Much like the post a did recently when I talked about setting proper warranty dates, the same applies for service contracts.  You NEED to know when the majority of your issues begin to happen.  Is it 3 months of use?  6 months of use?  10 years of use?  Now, based on your “base” warranty, you can look at the volume of issues that occur in each time frame.  If the volume is high enough that things “can” go wrong, but low enough that you won’t be gambling the farm, this tells you the window you can offer the service plan for.

Maybe an example is in order here…  you have a material, and over the past year, you see the following.

3 months – 100
6 months – 120
9 months – 125
1 year – 133
18 months – 220
2 years – 250
30 months – 400
3 years – 650

now this is a blog, so I’m not gonna graph it, but you can quickly see the exponential type curve of these numbers.  the idea is to offer your warranty for 6 months or a year.  Now the volume is reasonable up to the 18 month mark.  once you hit 30 months, the volume starts to spike.  This suggests to me that you should offer an extended warranty for an extra year.  Your customers will see it as a value since things do happen more often after the first year, but you won’t be replacing EVERY unit.  win win in my book…

This actually went longer than expected, so I’ll pick this up again tomorrow…

thanks for reading,

Service Notification ROI – Maintenance Plans

Continuing the discussion on the Service Notification ROI, today I wanted to talk about the maintenance plans.  At first glance, the maintenance plan is more of a feature than a benefit.  Now in marketing 101, I’ve had it beaten into my head, benefits not features…  Well, the concept of the maintenance plan actually fits both concepts…  at least if you look at it the right way.  The maintenance plan becomes a huge time saver if your business does any sort of repetitive service.  Let’s go with an example everyone can relate to, oil changes…

In the auto service industry, everyone is familiar with the idea that you should change your oil every 3000 miles or 3 months.  Well, using a maintenance plan, you could have a notification generated every 6 weeks.  The notification would be for someone to send an email or a coupon to remind the person they have an oil change coming up soon.  Now the amount of automation you build into this is up to you.  But I’d be willing to bet that if you look at your industry there is at least some repetitive tasks that you could schedule.

Now, creating a notification or service order doesn’t really take that long, neither does sending an email.  What does take time is monitoring a list, running a report, or checking a database to see who is who should be contacted, or who should be receiving a notification of upcoming service.  If you set a plan one time, then you get to “set it and forget it”.  This has multiple benefits, you get the obvious benefit of not having to babysit your marketing.  But far more important, you move into the automated marketing world of keeping yourself in your customer’s minds.  You get the chance to remind them of the value of “regular oil changes”, you get to offer them a discount if you choose, and you build a stronger relationship with your existing customers.  The stronger the relationship, the more likely your customers will talk about you to their friends…  giving you that perfect opportunity to get new customers and take care of them just as well as your existing customers.

Pretty solid ROI in my mind.

thanks for reading,

How do you stop being the “go-to” person?

Well, if you anything like me, you often find yourself in the position of being the go-to guy/gal.  While this is initially flattering, you feel pretty good, everyone comes to you with the hard questions… you are in demand, you have job security…  all good things right???  Well, you quickly find this to become a tedious nightmare.  Why?  because everyone around you stops thinking, because they have you to do it.

I actually started venting to my wife, and she brought up some pretty valid, but annoying points.  It’s up to me to walk people through everything I do, teach them my thought process, and then write the whole thing down.  Now, if you know me at all, you know this sounds like absolute hell to me.  In my mind, this is the process, I could spend all that time training, and they probably won’t get it, so I’ll end up having to do it anyway, so….  I might as well just do it.  OR  I can do it much faster myself than training someone else, so I might as well do it.

I’m hoping you see the flaw in this logic.  Because if something ever happens again, I’m stuck doing that same tedious work.  So every time this same issues comes back, it thrown back on my plate.  Now, that doesn’t make it any easier to hand it off, and go through the training effort.  But, there is another secondary win that I often forget about.  When you teach someone else how to do it, they can often empower themselves to take the “next step” of doing something similar, using the same thought pattern.

So this post is mostly a reminder to myself of a few things.  1.  My wife is almost always right… (shhh don’t tell her), and 2.  it is worth it to train someone else so I can move onto more important tasks.  As Perry says, do that $1000/hr task, instead of the $10/hr…

Thanks for reading,

Service Notification ROI – Improve your Products

Continuing on in the series of how you can use Service notifications to improve your bottom line.  One of the best ways I can think of is making your products better.  Everyone who uses quality notifications knows the value of this, but for some reason, service notifications are often overlooked for this purposes.

The whole key to this is collecting enough data to categorize each notification.  The best way, in my opinion is using the many different catalogs to classify what is going on.  Just as a recap, depending on what fields you have available, you can have as many as 5 different catalogs available within a single notification.  You can even use the same catalog multiple times for things like causes.  Why do you care?

Because you can do reporting against these values to find trends in your products.  If you notice that 20 notifications come in a week for the same product, all stating that the product was damaged in transit, well, that should be a pretty big flag to review your packaging and your carrier to review what the hell is going on.  Maybe you got a bad batch of packaging materials, maybe you recently made a “cost saving” change to a different vendor…  regardless, you have an obvious set of data that you should be reviewing.

You may also simply find a pattern in your customers “mis-using” your products.  This might give your marketing/legal group something to include your literature stating in certain terms, product not to be used in the rain, or product should not be used for longer than 3 hours without shut down.  Doesn’t matter, but the data is there if you can collect.  This should be reason enough to train your call center to collect this every time.

Now, there is another way to capture information that is very valuable, and often more flexible.  You can use classification, along with multiple value characteristics allowing you to select as many options as apply.  This has the potential to give your organization ALL the data they could use.  SAP provides standard reporting using CL30N.  But if you’d like even more data, check out our out of the box service management dashboard.

Thanks for reading,

Service Notification ROI – Measure Productivity

Well, continuing in our theme of showing you what you can do with Service Notification data, today is a great metric that most businesses care about, but maybe don’t realize all the different aspects available when it comes to measuring productivity.  Let me tell you what I mean by that.

Now of course, there is a obvious call center metric of calls taken, calls waiting, etc…  But in the service management world, you can also be looking at more of the post call analytic’s.  For example, how many of the calls are closed during the initial call.  You could be tracking this using the standard status.  The initial status of the notification is closed, it means that your call center agent was able to close the call on the phone, no additional follow up was needed.  The only thing better than this is if the customer didn’t have to call in the first place 🙂

One of the other productivity metrics you can track is the number of notifications created by each SAP user.  You can be tracking how long each notification is kept open, simply by tracking the date/time stamp of the system status within the notification.  You can even keep track of who is filling in their notifications properly.  For example, if you use the catalogs, you can keep track of who is filling in this information.  This could lead you to additional training opportunities, especially if you employ temporary employees in your call center.  Losing this information could be costing you money, but I’ll talk about some of those opportunities soon 🙂

Anyway, the point of all of this is allowing you to see who your best call center employees are, and if you use temporary employees, they could be the people you entice to stay on full time, or the other end of the spectrum can be let go to bring in better people.

Thanks for reading,

Service Notification ROI – Accurate Warranty Dates

Well, I’ve realized that all too often, I talk about the nitty gritty, the details.  What i don’t really talk often enough about is “Why?”.  So I thought I’d start a series to talk about the service Notifications ROI, or return on investment.  All too often, I hear business’ complain about the number of transactions within the service management module.  While, I agree, for small businesses, there can be a lot of transactions, but what is often overlooked, or perhaps unused, is the beneficial data in all of those transactions.  This first series will focus on the information you can use to get real return on investment.

This first piece, to me is one of the most valuable, and most overlooked benefits of the service notification.  That is the ability to offer the most cost effective warranty to your customer that you can.  Now, all too often, everyone is concerned with if the product is under warranty.  But in your customer’s mind, the best products have the longest warranties.  Well, what if you could offer your customers an additional 3 months of warranty, without it costing you any more?

Well, if you pay attention to your service notifications, you can determine by product, how many issues do you encounter within 3 months?  6 months? 1 year?  Let’s say you offer a 3 month warranty on a particular product.  If you analyze your data, and find that 90% of your issues occur after 4 months, you could suddenly extend your warranty to 4 months, and you won’t experience any more service notifications.  This now gives your customers an additional month of “piece of mind”.  Perhaps, this gives you the edge against your competition that only offers a 3 month warranty.

Best of all, you’ve just gave your customers a nice little bonus and it costs you nothing but updating your literature =)  I’ll be throwing out more little pieces of ROI in future posts.

thanks for reading,

Are you Thinking or are you Working?

I recently read an email from my new marketing guru, Perry Marshall, and he put out a very simple question.  This question really made me stop and think.  The question was are you thinking or are you working?  Initially, it seemed like a pretty simple answer, I’m problem solving, I’m answering questions, I’m typing a blog…  of course I’m thinking…  Right???  But he then went on to explain that thinking…  real thinking, isn’t the day to day minutia that I get bogged down on.  Just because I’m using my brain, doesn’t mean I’m thinking…

Thinking is when you’re really coming up great ideas.  it could be next big application, or a way to find really qualified prospects that I never figured out before.  So, this is the real magic of the business.  Now, don’t get me wrong, the day to day thinking is required, but the more time you can spend doing the important thinking, the better your business can succeed.

Perry’s example was the great ideas he comes up with when he’s not thinking about working.  Vacation, taking a bike ride, etc…  Now what hit me is the power of this.  And it really is true.  All of my best ideas have hit me when I’m not thinking about work.  i’ve had some great ideas sitting on the airplane, or reading a book on the beach.  The problem is that I don’t spend much time away from work.  So, the blinding truth that struck me is that I don’t spend enough time away from work.  Thus, I’m spending all my brain power doing the $10/hr work, instead of the $1000/hr work that i need to be doing.

So, with all of this, are you thinking or are you working???

I’d love to hear your thoughts,
thanks for reading,

Time Management – Focus on your Skills

I’ve lately had a few weekends, where I’ve played solo dad with 2 kids for 3 to 4 days a stretch.  Now, this has actually reminded me of a valuable lesson.  If you want to do your best, stick with what you’re best at.  Don’t see the connection?  well, stay with me.  I used to have an infinite amount of patience.  I could deal with any person, hang out for too long in any situation, even awkward social situations, just because I saw the “potential” benefit.  When I was younger, that usually revolved around women 🙂  After a full weekend with the kids on my own, I’ve discovered, those patience have disappeared.

Now, how does this tie into business?  Very simply, taking care of the kids is not what I’m best at.  My wife on the other hand, does an incredible job.  She understand how to keep the kids occupied… me on the other hand, I’m trying, but it’s always a struggle.  when I finally get the kids to sleep, I’m exhausted.  This is no different than business situation.  When you’re doing what you’re good at, it energizes you, rather than drains you.  While you can’t stop doing everything that drains you (at least not right away), the more time you can spend doing what you’re good at, the better off your business will be.  Perry Marshall calls this doing $1000/hr work, rather than $10/hr work.  when you focus on doing what you do best, you get closer to that $1000/hr.  Anything else, is better to let someone else do, if you can…

While this obviously won’t work in homelife, you can utilize this in your professional life.  So take it from me…  stick to what you’re best as much as you can.

Thanks for reading,

Time Management – The Art of Unsubscribing

I recently got a great trip from my marketing guru, and that is to “ruthlessly unsubscribe” from every email you don’t read.  You know, this is great advise.  If you’re like me, you pay way too close attention to your inbox.  Whenever I see an email come in, I compulsively have to check and see what it is.  Now, rationally, I look at this and say I shouldn’t do it…  but I can’t seem to help myself.  This makes the advise even more valuable.  Who really cares about the latest Home Depot advertisement, or what HP laptop is coming to store.  The problem is that an email is an email.  Even if I look at it for 3 seconds, then press the delete, I still burned 3 seconds, plus the time I lost taking my attention off of important tasks.

Now, even unsubscribing takes times, but happily it’s a one time event.  The idea is to get rid of every email you don’t read anyway.  This could be the coupons from Gap, or the latest blog from someone you read 6 months ago.  If you don’t read it, don’t get it.  Save yourself the effort of deleting it.  I started doing this 3 days ago, and it’s amazing how many junk emails I get that I’ve just tuned out.  So, it’s still taking some of my time, but now it’s a one time thing, rather than deleting the emails on a daily basis.  There are still some that I’ve kept…  mostly because I’m not sure if it’s worth it.  But the idea of is, if I don’t see the email, it won’t burn my time.  I consider you take this advise.  Remember, in this hectic life, every little bit helps.

Thanks for reading,

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