Get a Demo

Fishing Report: First Annual OBX Customer Retreat and Fishing Tournament

Last week, ServiceTrade held its first annual Outer Banks (OBX) customer retreat and fishing tournament. Eleven representatives from across our customer base converged on Manteo, NC for a full day of business discussion on best practices for applying modern technology in a service contractor business along with a full day of offshore fishing.

Shawn Mims, our product manager, led the boat that won the fishing tournament with over 400 pounds of mahi mahi along with a 400 plus pound blue marlin release! Congratulations to Shawn and his team. The happy crew members, some dead fish, and a fat blue marlin can be reviewed in the photos below:

The biggest catch of the trip, however, was the insights into what makes ServiceTrade so valuable to these customers. Customers universally are seeking a modern, SaaS (software as a service) platform, with smartphone and tablet technician interfaces. Their goal is to eliminate the hassles, mistakes, and delays associated with manual paper processes. ServiceTrade meets these expectations, but they were surprised to be able to implement so quickly and with such an amazing support experience.

ServiceTrade is focused on helping customers adopt SaaS and mobile for technician management and customer service without uprooting all of their current systems for accounting, payroll, payments, and inventory management. Customers do not have to “bet the business” and undergo some crazy risky implementation that changes everything. And because ServiceTrade integrates seamlessly with almost any accounting system under the sun, the implementation gives all the benefits of going mobile without any of the hassles and risks most customers have come to expect with IT systems.

As one customer put it:

If I want to upgrade the customer service manager, I don’t start by firing the accounting manager. That’s just stupid. Each function works with the other, but they are separate fields of expertise and capability. Replacing the entire management staff is a “bet the business” proposition that no business would undertake. We feel the same way about the [all-in-one] management systems.

Mark your calendars for next year at the end of May if you want to get out to OBX with ServiceTrade. Mark your calendar for next week if you are ready to transform you manual, paper-based customer service and technician management capability with something that is modern, SaaS, and optimized for smartphones and tablets.

The Tesla Lesson: 4 Takeaways for Service Contractors

I am a big believer in market signals. I think Tesla is one of those signals. As a breakthrough company with a skyrocketing stock value, Tesla is clearly doing many, many things correctly and making very few mistakes. I believe there are some lessons in the Tesla experience that service contractors should be learning.

Service Contractors can learn a lot from Tesla.As context for everyone that lives under a rock, Tesla is a manufacturer, distributor, and customer service company for electric vehicles. Specifically, these are are not your Aunt Minnie’s electric hybrid Prius, or Civic. These are high performing vehicles that have a style about them that does not signal “compromise.”

For those that do not watch the stock market, Tesla is a high flyer. For every $1 in car sales, Tesla (NASDAQ: TSLA) gets almost $10 in shareholder value in return. Contrast that with Ford (NYSE: F), a fine company with very good management, which gets approximately $.40 (yes, forty cents) in shareholder value for every $1 in car sales. The market believes Tesla is onto something special and that it will dramatically outpace all others in this segment – otherwise the share price would make no sense.

Here are the lessons that I believe service contractors can take from Tesla:

The market values products that dramatically lower fuel consumption.

The market is signaling that fuel prices are going to continue to spiral upward. If fuel was going to be $2/gallon or even $3/gallon in the future, Tesla would not even exist. As a service contractor, you better have a strategy to use less fuel per revenue dollar in the future or you will find yourself in a dramatic squeeze. What are you doing to pack more revenue into every mile driven by your techs? Raising fuel surcharges is not the answer. Something along the lines of “plan a better route and offer more value at each stop” is the right strategy. Increase your service revenue density per mile is a lesson from Tesla.

The market values products that require minimal maintenance.

Tesla’s vehicles require far less maintenance than conventional cars. Some of the maintenance is delivered over the air in the form of new firmware for the drive system. All customers want to buy a product that is maintenance free. How will you drive revenue growth for products that require ever decreasing levels of maintenance? Expand your service area? See above on revenue per mile – difficult to do with ever rising fuel prices? Expand your expertise offered to your existing customer base? Yes. Expanding your service density per customer location is another lesson from Tesla.

The market values predictive maintenance with a single point of accountability.

Tesla monitors the health of the cars and initiates service with the customer based upon the exact situation of their vehicle – not some vague timeline. Tesla shows up with a loaner and takes the customer vehicle to the shop based upon setting an appointment with the customer interactively using the Tesla interface in the car. Equipment will be increasingly connected to the Internet (see Internet of Things) and monitored for service requirements by the manufacturer. How will you be the source of knowledge and data for the customer when the customer is connected directly to the manufacturer via the Internet? Collect an extraordinary record of the customer’s service needs via mobile devices, aggregate data to discover opportunities for better outcomes, and use the Internet to connect to your customer is another lesson from Tesla.

The market values a direct connection with the manufacturer.

Tesla sells direct, with the customer doing most of their education and interaction via the Internet. Manufacturers will increasingly connect with customers via highly interactive, multi-media and multi-modal experiences regarding their product and its advantages. What will you do to be a part of that conversation and express to the customer all the things the manufacturer does not know and cannot know because you are the one with the experience on the ground? The answer is not “well I guess the technician will show ‘em some stuff while he is there, before he leaves behind a handwritten, tobacco- and coffee-stained invoice with a bunch of cryptic codes from my accounting system” Wrong answer. You better be thinking about how you express your expertise to your customers online, interactively, with “rich media” and “big data,” because I can promise you that the manufacturers that you currently represent are going to do it. Embrace technology that connects you directly to your customer with rich media and a data-driven approach to service management is another lesson from Tesla.

Fortunately, none of these lessons have to be scary lessons. Yes, manufacturers have big capital to do big things, but they move slowly and spelling “customer service” would be a challenge even if they read this blog post. And big capital is not a requirement for fantastic systems in a world with ubiquitous mobile platforms (smartphones and tablets) and cloud computing.

With just a little bit of cash flow, you can make investments in capability that will cement your relationship with your customer in a world where they value everything I described above that Tesla is delivering. You can increase service density per mile, increase service density per location, collect an extraordinary record to drive expert service, and connect to each customer in a manner that educates them regarding the value you provide. Or you can wait for the manufacturers and other third parties to insert themselves between you and the customer so that every time the phone rings it is a dispatch to “their” customer. You decide.

4 Ways Service Contractors Can Grow Sales Without Selling

Services businesses are “the gift that keeps on giving” in the revenue department…if managed effectively. Unfortunately, many are not very well managed and somehow lose their connection and relevance with customers. The success of Angie’s List and other similar customer advocate intermediaries is a direct result of service vendors inability to remain relevant and build long term value through their customer base. For the vendor that is paying attention and wants to avoid the fate of having every job delivered by a customer service web engine that siphons off valuable margin, here are some tips for growing that do not require massive investments in sales and marketing.

Never Miss a Service Call

Service Contracting Software - DispatchingWhen a customer calls, whether a new prospect or an existing customer, how effective is your company at responding? An effective response is directly proportional to the immediate visibility the customer service rep has to supply and demand.

Supply visibility is knowing the current status of all of the field technicians that might be able to respond. I crack up when I see PC-based dispatch boards that represent “what was supposed to happen” at the beginning of the day but immediately become irrelevant when the day begins. If your dispatch board is not updated by every action the technician takes in the field (or does not take), it is irrelevant by 8:05 AM for making customer service decisions. Putting the customer on hold, or heaven forbid, calling them back when you know what is possible, is the kiss of death. Review the board and make the decision NOW about which tech will make it happen and when. If the decision has to wait until you finish a game of “phone call rodeo”, the customer will not be amused, and you will lose the call.

Demand visibility is quickly reviewing the customer history and having an educated opinion on what might be causing the problem. Providing some instant advice based upon your location record as to how they might reduce the severity until your technician arrives will gain you hours of cushion to get to the location. For example, knowing that the water cutoff is in the broom closet 12 steps from the front door. If you have to traipse back to a filing room, or if your technician reports are limited to scans of terse, hard to read, hand-written reports relating the history, you have little opportunity to establish credibility with the customer and move toward a solution in the first 2 minutes of the interaction. If it is a long run for the nearest technician, you are losing valuable points with the customer that may result in a lost customer when the next service opportunity arrives.

Maximize Maintenance Revenue

If the month of May has 285 maintenance services due, how many do you deliver? If your answer is less than 95%, your organization is not best in class, and you are missing revenue. Maximizing maintenance revenue requires 2 key capabilities: visibility to the undelivered work and customer scheduling efficiency.

Service Contracting Software - SchedulingWhen you have visibility to what is committed but undelivered, you can drive your technicians to respond. When you do not know what is happening hour to hour and day to day, and you are waiting on a folder to come back to the office to understand the productivity of a week of work, you have no hope of maximizing maintenance revenue; you do not know who is productive and who is goofing off. You need to know the productivity of every technician every hour of every day. The money is out there just waiting to land in your pocket, but you need constant visibility to take it all.

Committing the customer to the work is also a requirement to maximize maintenance revenue. Ideally, committing the customer to the work does not involve 5 phone calls to each customer. Having visibility to the customer preferences for service (never Tuesday, always early, etc.) as well as a notification system that allows you to easily connect with the customer lowers the expense and aggravation of committing the customer to the schedule. This customer engagement model for scheduling is a challenging technical problem, and I expect some very interesting innovations to emerge in this area.

Deliver More with Less

Growing without selling also means having capacity to deliver without expensive and slow ramp up of new resources (techs, trucks, admins). When you can squeeze more out of the current resources and just say “yes” to the calls that are already arriving, that is the ideal situation. Additionally, the ability to seamlessly “source” work to trusted partners when you have absolutely exhausted your ability to fulfill it with your crew is critical.

Squeezing more out of the current resources means that you have the visibility to where a well-applied squeeze will be effective. Squeezing your most productive tech as hard as you squeeze the loafer because you cannot see the results is a recipe for some pretty low outcomes – the best guy leaves and the loafer stays. It also means that your office crew is not covered up with mindless additional administrative work when new opportunities arise. How effective is your process in the office at scaling to meet new demand? Is it a miserable paper chase with stacks of folders representing different status migrating from desk to desk? Or is it a well oiled machine with instantaneous status alerts online that hardly notices an additional 15% uptick in orders?

Delivering more with less also means that you can have the ability to subcontract work to trusted providers with a click of the mouse. If your subcontracting process is not a simple redirect of work in your management application, with your subcontractors using the same technology platform and processes that you use to hold your techs accountable, then you have the wrong application and it is time to call ServiceTrade.

Fix Everything

The best sales lead in the world goes something like this:

“Yesterday while I was at your location, my technician noticed a problem with Equipment A. He documented it with photos that I have attached to the quote that you can review online. We can fix it this week, and all you need to do is click ‘Approve’ in the upper right corner of the online quote.”

Service Contracting Software - Quoting

As long as you are incurring the expense to go to a customer’s location, whether for a maintenance call or a service call, or even a sales call, you might as well maximize your opportunity by noting everything that you could do for the customer. When I say “note,” I do not mean some chicken scratch on a piece of coffee- and tobacco-stained paper that rides around in the truck for another week. What I mean is an organized record of digital artifacts, including photos, audio memos, and perhaps even video, that is easy to redirect back to the customer online to demonstrate your organization’s thoughtful stewardship of their equipment. Online quotes with photos are more than three times as likely to be approved by the customer than flat paper quotes delivered via mail or email attachments.

If you are ready to grow, but you are not ready to suffer the ramp-up of expensive sales resources, consider how these tips might generate the growth you want. Connecting with customers in the digital age is an amazing new opportunity for service companies. The ones that figure it out will grow with an absolute minimum of marketing and sales expense.

It Pays to Know: How Service Contractors Get Paid For Expertise, Not Just Labor

The best service contracting business model is based upon customers paying a premium for expertise instead of simply paying a markup on parts and labor.  When true expertise is offered, the customer perceives that in the long term they will have better outcomes for less money – no callbacks, fewer breakdowns, less energy consumption, higher equipment output.  With expertise in play, the customer trusts the advice of the provider, the provider takes care of the equipment, and both parties are happy with the long term value from the relationship.

Knowing is Half The BattleWithout expertise, the payment is simply a markup on parts and labor plus the lingering suspicion that perhaps something was not done right.  Without expertise, it is always a forced march to the lowest rate on labor or the first truck in the driveway.  The customer becomes like the general contractor – a supposed expert, often with dubious management practices, and a sharp focus on the fees.  Without expertise, you are simply getting paid to show up and execute the tasks according to the will of the task master.

But how can a service contractor transition from the labor markup model to the premium pricing model?  What is required to get paid for what you know instead of payment for where you go? There are 2 steps in this transition – 1) know what you know, and 2) show what you know.

Know What You Know

You cannot get paid a premium for expertise until you know what you know.  Most service contractors do a lousy job sharing expertise throughout their organization.  Part of the problem is due to antiquated systems – PC based applications with short text fields, no photo reporting, no audio memos, and with access restricted to those sitting in the office.  Most of the knowledge is with the techs in the field and is based upon the unique situation that exists at the customer premises.  However, the only means techs have to report what they know is a paper form upon which they scribble notes for the office to decode and enter into a system that no one in the field can access.  If it sounds ridiculous it is because it is ridiculous.

Knowing what you know means that it must be easy to collect what you know and also to distribute what you know.  Humans learn visually (pictures and video) and from stories.  Whenever I want to learn a new song on the guitar or if I want to fix or upgrade something on my boat or my F250, I turn to YouTube.  First, no one would bother to write most of that stuff down because it is too tedious.  Second, it is hard to learn without the visual cues of video and the context that is often delivered with story vignettes by the “teachers.”

Turn the techs into teachers – for the office and for the customer and for other techs – by turning them loose with photo and audio (and video once the data plans support it).  You will be amazed at how much more effective everyone becomes at matching the customers needs with the right resources when you have better tools for knowing what you know.  ServiceTrade builds photos and audio into the mobile applications so that the techs become the teachers.  We enable them to share with others in a manner that is easy to use so that everyone benefits.

Show What You Know

The next step in getting paid for what you know is to be able to show what you know.  How do you share your knowledge with the customer?  Is it limited to when you show up on a service call?  When they are stressed out because their equipment is broken?  Or do they have a 24×7 digital love affair with your work?  Oftentimes the techs on-site visit schedule is a darned inconvenient time for the customer.  They have work to do also, and sitting around jawboning with the tech about how this breakdown could have been prevented or about the unique approach he took to fix it is not high on their list at the moment.  However, after dinner or over the weekend when they are paying bills, they might indeed take the time to review in detail the situation that led to an equipment breakdown.

If those details are scribbled on a triplicate form with coffee and tobacco juice stains on it, chances are they are not going to dwell on the matter.  Nor will they have a high opinion of the service contractor no matter how capable the technician might have been.  However, give them a webpage to browse with useful links to insightful details of their situation, and you might discover an interested customer that appreciates learning.  The best gift we can give another human being is to teach them something that they want to learn.  How effective is your customer service approach at teaching customers about their equipment and how you take care of it?

With the low cost of smartphones, tablets, data plans, and software as a service applications like ServiceTrade, there is no excuse for not moving toward a better service contracting business model.  “Getting paid for what you know instead of where you go” will be more profitable and more enjoyable for everyone.

5 Tips for Spotting "Good Software"

As ServiceTrade grows, I am reflecting on the responses we get from customers on their purchasing criteria for service management software.  As it turns out, buying software is not much different than buying anything else you might consider in your life – which is the way it should be.  Here are some tips for spotting good software:

If your field service management software looks like this, run!Pretty
Turns out that good software is usually attractive and easy on the eyes.  If the interface reminds you of the early days of Windows 3.1, you probably don’t want to sign up as a customer.  If it looks like something that you would see on an iPad in your living room, it might be good software. If it looks ugly and clunky, it probably is ugly and clunky.

Cloudy
There are few companies in the world that should be running their own servers and administering software infrastructure, and most likely you are not one of them.  If you see “free download” or “server requirements” or “installation manual” anywhere in the advertisements or documentation, it is probably not the solution for you.

Tiny
Not every element of every application will be mobile and portable, but many of all should be. Business does not stop and start at the threshold of your office building.  The more functionality that is able to fit into your pocket, the better.

Inexpensive
If it does not feel like a good deal, it probably isn’t.  I cannot think of a single software product we use at ServiceTrade that does not feel comfortable on the income statement.  If it hurts the wallet, it is probably because the vendor does not serve a broad market (or has no ambition to do so), and therefore you must pay the price.  Question closely the business model and ambition of the vendor.  You want vendors that serve large markets efficiently so you do not get trapped by high cost and low functionality.

Reference-able
Ask for lots of references, call all of them, and ask lots of questions.  If the references are not people and companies that you admire, if they do not gush about the partnership or functionality, if they seem uncomfortable talking about the details of their experience, caveat emptor. Keep looking for something better.

I absolutely believe that all of these elements for qualifying a software purchase (which coincidentally are easy to determine with a moderate amount of inspection) are better than the often touted “Return on Investment.”  ROI can only truly be calculated via the rearview mirror as you ponder the actual results.  At that point, the wreckage you see behind you may have cost you a huge amount of money with no positive ROI in sight as you shift your focus to the windshield and the road ahead.

If Communism Failed, Why do Software Vendors Continue to Embrace It?

With the winter games taking place in the former Soviet Union this month, it got me thinking about “Software Communism” – the practice of central planning by a single vendor that prevents the users from ever leaving. At the AHR Expo in NYC, I met with more than one prospect that was irate because he was being held hostage by their current software vendor, while there were others that had bought into the vendor’s utopian pitch of “a job for every worker and a chicken in every pot.”

Software CommunismThe basic premise of communism was that a central committee planning for the needs of the state’s constituents would be far more effective in meeting those needs than the free flowing chaos of free markets and democracy. When it did not work out for anyone but the central planners who enriched themselves via corruption and graft, the state erected large fences to prevent the citizens from leaving. Longing for the innovations produced by free market commerce was a crime, and fleeing to a better situation was punishable by death.

I think of these failed communism experiments when I see software vendors promoting the premise that only through a single software package can you achieve effective business outcomes, or when I see a failing vendor erecting “high fences” (i.e. holding customer data hostage) to prevent mass exodus. Fortunately, the failure of state communism plus the success of free markets tells us how Software Communism will ultimately end – software that enables innovations by interoperating easily across multiple vendors will win, and Software Communism will be a part of history that is conveniently omitted from the timeline during the software olympics opening ceremonies (should such a thing as software olympics ever come into existence).

At ServiceTrade, we use Salesforce.com, Marketo, Google Apps, and Echosign, among others. Each sends or receives data from the other seamlessly thanks to Application Programming Interfaces (APIs). We get to enjoy the terrific innovations and features that each offers without feeling burdened by high walls siloing off the data each application holds. The idea that any one vendor will deliver every innovation you need to run your business is silliness anyway; no company is big enough or smart enough to do everything and do it well.

Even the biggest symbols of Software Communism (i.e. Oracle, IBM, SAP) are slowly being dismantled by free market innovations and yielding to the requirements for free flowing innovation. Now, companies like Salesforce, Google, and ServiceTrade are showing the way for customers to have the innovations they want no matter where they originate.

So as you think about your next software purchase, don’t be sold by the theoretical allure of Software Communism. It did not work for state planning and it does not work for software planning either. Look for the best features and value and then ask “How easy is it to integrate your application with others?” The correct answer is “It is not hard because we offer a rich set of APIs for you or your integrator to do what works for your business.” If the answer comes back “The only way to get great software features is through central planning by a single vendor,” then you should run the other way…towards software freedom.

Talk is Cheap, and a Picture is Worth 1600 Words

I get lots of comments from prospective customers about “going paperless” using tablets and smartphones.  In many cases, however, they are talking about simply making the technicians in the field type character information into digital forms that otherwise would have been paper.  Maybe if you are going to go “paperless” you should reconsider how you form your data as well.

Much of the data that technicians “report” from the field is unstructured – it is not a serial number, or a weight, or a model, or a date, or a length, or a dollar amount.  A computer system is not going to operate on it in the future – a human is going to review and react to it.  It is often a detailed description of a situation that affects the customer – or will affect them if left unattended.  Or it is a description of a difficulty they encountered that threw a wrench into the schedule for that day.

Picture of ServiceTrade application capturing HVAC system informationRather than have them enter that information on a “form,” consider how much cheaper (and richer, ironically) it would be to have them shoot photos and record audio describing the situation.  Anyone who needs to act on that information can now respond to the photo and audio (and maybe video), instead of reading off a report.

Why is this important?  Because talk is cheap.  Literally.  How fast can you type on a tablet or a smartphone?  If you are really good, that number is probably 25 words per minute (wpm).  On a good keyboard, I can type at 80 wpm, but I slow to about 25 on a smartphone and about 35 on a tablet.  But we can all comfortably speak at 120 – 150 wpm.  And the old saying that a picture is worth a thousand words should be considered in this context as well.  So, why would you want your technicians to be typing stuff when they could be speaking and snapping to give you more and better information faster?

I did some calculations as well on photos, and an 8 megapixel photo is worth about 1600 words just from a comparative data perspective.  And while processing audio is equal to exactly the speed of the speaker (i.e. how quickly or slowly they speak), processing photos is fast and enriching.  People enjoy the color that photos add to the customer service experience.  Photos do not lie, and the customer appreciates the veracity that a photo of their equipment and your good work conveys.

If you are “going paperless,” consider what that means for productivity, and also consider how you might change your expectations for the data you use to run your business.  Asking people to “type” things that they could say or show is going to add administrative expense that could be used for new revenue opportunities when your technicians are struggling to enter information instead of hustling to the next customer call.

New Year’s Resolution – No More PC Apps!

Software as a Service (SaaS) is the only architecture for business applications that small and medium-sized companies should consider purchasing in 2014.  Period.  In my mind this battle had already been fought and won by SaaS, but I continue to come across good companies with thoughtful management teams that are still considering buying new, core business applications that run on a PC server in their office.  These applications are not only more expensive, but they also trap your business in an unacceptable slow innovation cycle.

Why are these applications more expensive?  For the same reason that a puppy is expensive.  It’s not the cost of the puppy – you can probably have one for free from the animal shelter or the local rescue association.  But you have to walk it, and train it, and feed it, and clean up the poop, and take it to the vet, and pay the fine when it bites the neighbor, and on and on.  With a PC app, you have to buy hardware, back it up, install updates, maintain the operating system, install security and virus software, manage network permissions, and a whole bunch of stuff I did not mention because I have done my best to forget all this stuff from the “bad old days.”  Maybe you want a puppy because you think all of that care and feeding is fun.  If so, buy a PC app.  If you have better things to do and better investments for your money and time, stay away.

Even if you think having a puppy is fun, you cannot afford the lack of innovation inherent in these applications.  Think about your last PC app and recall how often you upgraded it to get new functionality.  Almost never, right?  (Exactly never is probably the honest answer).  SaaS vendors deliver new functionality to all of their customers monthly, if not weekly (at ServiceTrade we release new features weekly).  New and fun features just “show up” in the application – ready to use.  No work required by the customer other than to explore, learn, and enjoy.

You are going to use the next core application you purchase for your business for 10 years.  If you do not want to be operating in 2024 just like you do in 2014, stay away from PC server apps.  These applications are already 10 years behind the times, so in reality you are making a business plan to operate in 2024 using technology that was relevant in 2004.  If that doesn’t scare you away from buying a PC app, I can’t imagine what else I could say to change your mind.  Enjoy the puppy.

Customers Speak Louder than Marketers

We can market our message about the effectiveness of ServiceTrade all we want, but there is no substitute for a customer doing it for you.  Thanks to Karim Nice and BlueHat Mechanical for this review of ServiceTrade capability.  Here is the key message:

By using software wisely, we can work together with our customers to set up a preventive maintenance plan that reduces their costs, and allows better visibility into the service we provide.

Keep the hits coming.  We will do our best to enable them.

The Labor Market is Speaking – Are You Listening?

In early 2001, I had just been appointed to be the Vice President of North America sales for Red Hat.  Many of my early meetings with prospective customers were geared toward understanding what was going to drive buying behavior for large scale adoption of Linux technology.  One meeting in particular sticks in my mind today as I ponder potential buying behavior for my prospective customers at ServiceTrade.

That meeting more than twelve years ago was with a technology executive at Merrill Lynch.  When I asked him why the investment bank was considering Linux technology, and by proxy a relationship with Red Hat, he replied “The firm has determined that we will not be able to hire the best technology workers in the future if we are not using the technology that they want to use.  We believe the best technology employees will want to use Linux.”

bluehat mechanical tech finds problem

Today, as I travel about and meet with various service contractors that support over $500 billion in annual maintenance and repair commerce in the US, I hear many complaints about how hard it is to recruit and retain skilled workers.  I also see lots of really archaic business infrastructure. Interestingly, I do not hear as many complaints about hiring from companies with more progressive infrastructure.  Maybe there is a correlation.  Maybe the problem is not a skilled labor shortage. Maybe the skilled labor has no tolerance for poor working conditions.

In the case of Merrill Lynch back in 2001, they made an investment in a new type of infrastructure in order to be able to recruit the best technology managers and developers.  For service contractors, investments in infrastructure might lead to the same attractiveness for service technicians.  It is easy to see how a comfortable new truck might be attractive, just like a nice office location for a Merrill Lynch technology developer.  But the new truck does not necessarily make the technician productive just as a new building with new furniture does not make a technology developer more productive.  Productivity, and corresponding job satisfaction, comes from delivering the most value to the customer with the least amount of company dysfunction.

Manual reporting, missing parts, poorly planned routes and jobs, lost paperwork, broken down vehicles, broken tools, call backs, disorganized dispatch, and “where you at” calls during the job all represent dysfunctional BS.  Some amount of it will be tolerated as inevitable.  Too much of it will send employees searching for a better opportunity – an opportunity where the ratio of dysfunction to productive work is lower.

It is self serving, but I believe the technology infrastructure service techs use in the future is going to be equally, if not more, important than the hand tools, trucks, and other equipment.  The technology that connects the service tech to the office and the customer in a way that eliminates dysfunction and maximizes productive labor hours (and the corresponding paycheck) will be a key element of recruiting and retention.  Technology that makes the service tech look knowledgeable, modern, and effective in the eyes of the customer will reinforce job satisfaction as well. Technology that looks and feels like the basic elements of their everyday life – iPhone, Android, Internet, iPad – will be expected as a tool of the trade at work.

Whether ServiceTrade or something else efficient, effective, and modern, an investment in technology as a means to recruit and retain skilled labor talent will probably yield a pretty good return.  The alternative is to be satisfied with the business results and customer service that can be achieved with service techs that tolerate productivity sapping dysfunction.  Listen to the market for labor.  It is telling you what to do.