Why Service Firms Need To Embrace The 'Electronic Strike Zone'

Originally published on Forbes.com. The electronic strike zone is coming, whether we like it or not. Computers and technology are simply better than human beings at certain things, and calling balls and strikes is one of them.

The same is true of service firms. Technology is stalking the very heartbeat of a value proposition that is as nostalgic as an umpire calling balls and strikes, a tradition that goes back more than a century.

Lawyers, accountants, financial advisors and IT consultants have skills and training, much like umpires, that make them technically proficient. They are specialists with “special knowledge” that they leverage to advise clients and produce certain outcomes.

But with the rise of artificial intelligence, faster computer systems and distributed networking and data, these technical skills are being called into question. The cat is out of the bag for service firms: Everyone now knows that computer systems are just as good, if not better than, human beings at making certain judgment calls:

• Should you buy this stock or that one?
• Should you settle out of court or opt for protracted litigation?
• Should you fight the IRS or acquiesce?
• Should you build this type of network or that one?

Predictive analytics and big data now make these important decisions easier, faster and simpler. But there are some things computer systems and big data cannot do:

• They cannot listen to you and empathize.
• They cannot build a long-term relationship of trust that is based on being known.
• They cannot call you on your birthday and ask how your child in college is doing.

Only human beings can do this. But the problem is that many service firms are resisting technology rather than embracing it. They are afraid that their technical skills and special knowledge are the core of their value to clients and that technology is eroding this value.

That is a huge mistake. The most successful service firms of the future will use technology and data for what it does best and leverage human skills for what only humans can do. You should know that in the near future, your clients will demand this.

The Fans Will Eventually Demand The Electronic Strike Zone

Armando Galarraga, a pitcher for the Detroit Tigers, was throwing a perfect game on June 2, 2010. He would have been only the 21st pitcher in major league history to have done so. It takes 27 outs to achieve a perfect game and he had retired 26 batters. But then the unthinkable happened.

A close play at first base was called incorrectly by an umpire. The perfect game was over. The problem is that the play at first base was shown over and over again, both in the ballpark and on television. The evidence was clear: The batter was out. Galarraga had been robbed of his perfect game and baseball would never be the same.

To correct for “human error,” MLB now uses technology effectively. An umpire team in New York is called upon to review plays, based on video evidence, to confirm or overturn calls made by umpires on the field. Technology supports humans to achieve the best possible outcome.

Replay Review, as it’s called, has greatly reduced human error. But there is a new area, prone to human error, where baseball is undergoing serious scrutiny: the strike zone. Just like Galarraga’s perfect game, fans can see umpires getting the calls wrong time after time.

Most TV coverage of MLB games now includes a gray box that shows the strike zone of the batter. When the ball is pitched, a dot appears on screen that shows whether or not it was a strike. The problem is that the technology and humans -- the umpires -- often do not agree.

Calling balls and strikes is considered an art form. Each umpire is allowed latitude in deciding the strike zone. But fan appreciation for the art of the strike zone quickly diminishes when something big is on the line, like a perfect game, pennant chase or even a win.

I believe that baseball fans will eventually demand the electronic strike zone. All it will take is one big ugly blown call, like the Armando Galarraga call, and the game will change -- permanently.

?How This Relates To Service Firms

Every day, professional service people make calls for their clients. The impact of these judgment calls cannot be overstated. If you make the wrong call as an attorney, your client could lose in court and lose money and reputation. If you make the wrong call as a financial advisor, your client could lose the wealth they depended on to support them for the rest of their life.

If you make the wrong call as an accountant, your client could lose money and peace of mind from being harassed by tax agencies. If you make the wrong call as an IT consultant, the systems your client depends on to run their business could fail at a big moment, which could cost them millions.

This is why more and more smart service buyers are beginning to scrutinize how service providers make decisions and what they base their advice upon. The era of special knowledge alone is quickly coming to a close. Smart service buyers want the science as much as the art. So, I have some questions for you: How are you leveraging advancements in technology, big data and predictive analytics to help you achieve the best possible outcomes for your clients? Are you embracing the future of how service providers will use all of this technology or are you resisting it because you believe it will replace your value? How are you using resources today -- time, money, focus -- to prepare for what is inevitably coming?

You can wait for the future to overtake you and impose its will upon you, or you can anticipate it and reap the first-mover advantage. Which do you choose?