WILO’s Senior Vice President Group Service Peter Glauner, has worked within service business for the past 24 years. And he knows that it’s all about internal commitment. Everyone has to be on board – starting with the board itself.
At the 10th Aftermarket Business Platform in Wiesbaden in October, Peter Glauner will speak about internal commitment. And it is no fluke at all, that this is the subject that he is addressing, at the Copperberg anniversary event:
– I guess this is the major topic, for service in general. Because in my opinion, I would say that if you do not have the internal commitment, you can directly stop the development of service in your company.
Like most things in a company, internal commitment is about team effort. All the way from the chairman of the board, to the service staff on site.
If only a part of the company is involved, failure is definitely on the cards.
“If you do not have the internal commitment,
you can directly stop
the development of service in your company.”
Many companies are indeed aware of the connection between internal commitment and service success. But implementing the right strategy, can be a hurdle anyway.
– The point is, that in general for the majority of companies in the past ten or twelwe years, service became a major topic. This was the case, due to more and more comparable products, more and more players in the market and also more and more comparable prices. The customer used that situation to put the manufacturers into a price war. To safeguard the result, and to give the customer an extra benefit with the product, service became more and more of an option.
However, companies have reacted differently to this challenge.
– The most important thing is this. Just to commit on the TOP Level of the organisation by saying: ”Now, we should develop service”, is not enough. With a general commitment like that, you have no chance of succeeding. According to Glauner, the winning strategy for service, must start with the board of the company itself coming on board.
– This has to be driven by the board. Then you need someone driving it independently. You need an independent person/departement, responsible for service, driving the wish of the board into the organisation.
“Winning strategy for service, must start with
the board of the company itself coming on board.”
In some companies, the sales managers do not get involved enough, because there is not enough weight behind the call to action.
– In the second level, you need to work out a plan, to develop service. First, you need a reliable Service network. After that, you have to create a Service strategy, which is embeded in the Group Strategy. This strategy then has to be driven by the board, into the organisation. Otherwise, if it comes only from the Group function, to the regional sales Directors for example, it will never work. Because they are not dedicated, due to their individual targets, to drive it.
Another important part of successful service implementation, according to Peter Glauner, is the identification of clear targets.
“First, you need a reliable Service network.
After that, you have to create a Service strategy,
which is embeded in the Group Strategy.”
– As soon as the strategy, created by the service function, given via the board into the organisation, you need to define targets. Those targets have to be strongly supported by the board. Because, what needs to be clear, is that the targets & results for service within service development is not part of the responsibility of the Group function. We, as a Group function, will drive the strategy implementation and support with coaching, development tools and with whatever we can, to develop our world wide service organisation.
– The responsibility for the business result of service, is within the regional sales directors responsibility. And in our experience, that has to be really driven and clearly defined with targets and with MBO (Management by Objective) settings, from the board to the first level.
Then you have the chance, to get in progress with the successful implementation of a service business. If you have not that commitment from all stakeholders of the process, and they drive together with you as the responsible person for Service development that strategy, into the different regions in the world, then you can directly forget it!
WILO is a world leading manufacturer & solution provider of pumps & systems in all kinds of water transportation. Wilo is today involved in the markets of 65 countries, with more than 7000 employees worldwide.
But for Peter Glauner, his journey at the company began as responsible for service in Germany, 14 years ago. Now, a lot thanks to internal commitment, the companys service organisation and proftitability levels are impressive, worldwide.
When Glauner took over the responsibility for Group Service, the company only had real hard knowledge and figures of its service performance. A direct strategy was implemented in order to encourage internal commitment, in all subsidiaries.
– We developed a service business development model, which starts with an audit. And from there, we developed the local subsidiaries. Based on a development model in three categories. Basic, advanced and professional Service level. If a subsidiary reaches the professional level, they get a WILO professional Service level certification.
WILO now has in all of their ”TOP Countries” professional service organisations.
– These areas covered by our professional service level represents 96 % of our worldwide turnover, says Peter Glauner.
There are no short cuts to service success.
And as Peter Glauner, Senior Vice President, Group Service at WILO intends to point out at Copperberg’s 10th Aftermarket Business Platform in Wiesbaden on October 19-21: the one road that definitely has to be travelled, is spelled ”internal commitment”.