Developing a Servitization-Focused Workforce

Article 8 of 14

Servitization is not only a change in business model but also a shift in the skills, roles, and mindsets required to deliver value. For small and medium-sized enterprises (SMEs) embarking on this journey, building a workforce that’s equipped to provide customer-centered services is essential. This article discusses the critical skills, training initiatives, and strategies for creating a team that can effectively support product-service systems (PSS) and deliver exceptional service, setting the stage for long-term success.

1. Identifying Key Skills for Servitization Success

In a servitized model, employees need skills beyond technical expertise. They must also be proficient in areas like customer relationship management, data analytics, and service optimization. Below are some of the key skill areas necessary to build a high-performing servitization workforce:

• Customer Engagement Skills: For service-focused operations, technicians and support staff must be adept at customer communication. This involves understanding customer needs, responding empathetically, and providing clear, effective updates. Strong customer engagement skills foster trust and can turn service encounters into loyalty-building opportunities.
• Technical Proficiency with Service Orientation: While technical skills remain important, they must be complemented by a service mindset. For instance, technicians should not only perform maintenance tasks but also understand how their work impacts overall customer satisfaction and operational uptime.
• Data Analysis and Digital Literacy: With the increasing role of technology in servitization, employees benefit from being able to interpret data from IoT sensors, CRM systems, and service management software. Basic data literacy allows them to identify patterns, anticipate service needs, and contribute to decision-making processes.
• Problem-Solving and Adaptability: Servitization is dynamic, requiring employees who can think on their feet and adapt to changing customer needs or unexpected technical issues. Problem-solving skills ensure that customer concerns are addressed quickly, while adaptability enables the team to adjust processes as service models evolve.

2. Implementing Effective Training Programs

A well-structured training program is essential to bridge skill gaps and prepare employees for the demands of servitization. For SMEs, building a training program that balances technical skills with customer-focused competencies is key.

• Technical Training for Service-Specific Tasks: Beyond general technical skills, employees need specialized training related to the specific products and services offered under PSS. For instance, training might focus on the nuances of remote monitoring systems or the operation of predictive maintenance software.
• Customer-Centric Communication Workshops: Customer communication workshops can help service staff develop soft skills, such as empathy, listening, and clarity. Workshops that use role-playing scenarios can prepare technicians to handle a range of customer situations, from maintenance check-ins to urgent repairs, fostering a service mindset across the team.
• Data and Technology Literacy Programs: Data analysis and digital literacy training ensures that employees can make use of the technology supporting servitization. Training on data interpretation, IoT monitoring, and CRM platforms allows them to better understand performance metrics, which ultimately leads to improved service quality.
• Continuous Learning Initiatives: Encourage employees to continuously update their skills by offering access to online courses, industry webinars, and in-house knowledge-sharing sessions. Servitization is evolving, and staying current on best practices ensures your team can adapt to new developments and emerging customer needs.

3. Redefining Roles for a Service-Oriented Workforce

Servitization often requires creating new roles and adjusting existing ones to meet the demands of a service-oriented business model. SMEs may need to establish positions focused specifically on customer support, technical service, and data management.

• Customer Success Managers: In a servitized business, the customer success manager (CSM) is a key role that focuses on long-term customer relationships. CSMs work closely with customers to understand their evolving needs, ensure high service standards, and identify opportunities for additional services. They act as the primary contact point for customers, helping align service delivery with customer goals.
• Field Service Technicians with Customer Responsibilities: Field technicians play an essential role, as they directly interact with customers. In addition to technical repair and maintenance tasks, they should be equipped to answer customer questions, provide usage tips, and collect feedback. This dual role enhances customer trust and engagement.
• Data Analysts and Service Planners: Data analysts help the organization understand product usage patterns, service needs, and customer behaviors, translating insights into actionable improvements. Service planners, on the other hand, coordinate the delivery of services based on these insights, optimizing schedules, resource allocation, and service efficiency.

4. Fostering a Service-First Culture

Building a workforce for servitization goes beyond skill-building; it requires cultivating a service-first culture where every team member is committed to creating value for customers. Here’s how SMEs can foster this mindset:

• Embed Customer Satisfaction as a Core Value: Emphasize customer satisfaction in daily operations, company communications, and performance assessments. Recognize and reward employees who go above and beyond to deliver exceptional service, reinforcing the importance of putting customer needs first.
• Encourage Cross-Functional Collaboration: Servitization is a cross-functional effort, involving input from sales, customer support, and service delivery. Encourage collaboration by organizing cross-functional teams for service projects, allowing employees to gain a broader understanding of how their roles contribute to the overall customer experience.
• Hold Regular Service Review Meetings: Organize service review meetings where employees can discuss recent service experiences, share lessons learned, and suggest improvements. This practice not only reinforces continuous improvement but also strengthens the team’s commitment to quality service.

5. Tracking Workforce Performance and Progress

To ensure that the workforce development initiatives are yielding the desired results, SMEs should track performance metrics that reflect employee engagement, skill development, and service effectiveness.

• Measure Service Delivery Efficiency: Track metrics such as average response time, service completion rate, and issue resolution time. These metrics indicate how effectively employees are meeting customer needs and provide insight into areas for process improvements.
• Monitor Customer Satisfaction Scores: Customer satisfaction, measured through feedback surveys, Net Promoter Scores (NPS), or service ratings, provides direct insight into how well employees are delivering on service expectations. High customer satisfaction scores are often a result of skilled, engaged employees.
• Evaluate Training Impact: After implementing training programs, measure outcomes such as knowledge retention, skill application, and employee confidence in service tasks. Regular assessments help identify additional training needs and ensure that the team is progressing in line with servitization goals.
• Set Career Development Goals: Encourage employees to set individual development goals aligned with their roles in servitization. Regular check-ins with managers can ensure they are on track, while recognizing progress fosters a positive work environment.

In Summary: Building a Skilled and Service-Driven Team

A successful servitization strategy hinges on a well-prepared workforce that can meet the demands of customer-focused, service-oriented operations. By investing in targeted skill development, defining roles suited to servitization, and fostering a culture of continuous learning and collaboration, SMEs can build a team that delivers exceptional service and creates long-term value.

In the next article, we’ll explore how to create and structure customer contracts and service agreements that align with servitization models, helping SMEs establish clear expectations and accountability in service delivery.