When considering disruption in the service industry, we often think of large-scale changes, such as moving to predictive models or treating services as profit centers. These macro-level shifts are essential for transformation, yet what sets leading organizations apart from lagging ones is their focus on micro-level changes as well.
In a survey by Service Council, 42% of service leaders indicated that innovation was their top focus for 2024, followed by tech adoption and portfolio expansion. While technology fuels innovation, organizations like TOMRA and ACCO prove that additional strategies—such as data quality, frontline experience, and change management—also drive meaningful disruption.
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Quality Data Enhances Both Employee and Customer Experiences
High-quality data is foundational to innovation and KPI measurement. TOMRA, a multinational in recycling and sorting, emphasizes data quality before assessing KPIs. Dan Basile, TOMRA’s VP of Field Service, states, “The outputs are only as good as your inputs.” He also notes that quality data enables TOMRA to evaluate metrics like first-time fix rates and customer service experiences effectively.
Michael Potts, Senior VP at ACCO, shares that sentiment. He also notes, “Feedback from the teams is essential to understanding data quality,” and ensures data accuracy. Accurate data ultimately improves service logistics and customer experience.
TOMRA also leverages data to improve technician experiences and career development. Basile explains, “We track response time and repair times, which inform our quarterly incentive programs and career pathing.” This data-driven approach allows for measurable incentives, succession planning, and clear paths for technician advancement.
Challenging Processes and Engaging Frontline Workers
An MIT Sloan Management Review study revealed that while 80% of companies claim to foster new ideas, only 16% successfully scale them. This challenge intensifies in well-established organizations.
For ACCO, a 90-year-old mechanical contractor with $2 billion in revenue, innovation means questioning established processes. Potts emphasizes the need for a customer-focused and employee-friendly culture, stating, “Using technology to drive change can challenge our frontline. It’s the employee experience that ultimately drives successful change.”
Research from Service Council shows that innovation depends on frontline engagement. Removing frontline teams from tech decisions can hurt both the frontline experience and the overall service business. Best-in-class organizations integrate frontline feedback to drive innovation and improve processes.
Enhancing Frontline Experiences with Technology
Service leaders are prioritizing both innovation and technology expansion. But to optimize outcomes, how can organizations balance these priorities while enhancing the frontline experience?
Christine LaVoi, Senior Client Services Partner at IFS, suggests rethinking how information is delivered to technicians. “People won’t look through a manual anymore. AI tools that simplify data usage let technicians focus more on customer experience,” LaVoi explains.
Basile at TOMRA includes frontline workers in tech implementation by having technicians contribute to training development. This “ground-up” approach ensures that technology adoption reflects frontline insights and increases buy-in among teams. By involving top technicians early, TOMRA identifies areas for improvement before full-scale adoption.
Collaborative Change Management
Technology adoption on the frontline requires strong change management. Potts (ACCO) attributes their success to a culture of empowerment, where employees feel comfortable sharing their opinions and suggestions. “Culture drives change. If those affected by change feel empowered, change management becomes a powerful tool,” he notes.
Both Potts and Basile stress the importance of cross-departmental collaboration, especially with IT teams. Potts meets regularly with IT to ensure alignment with ACCO’s business objectives, emphasizing that misalignment can derail progress. Basile shares the same approach, noting that close collaboration with IT leads to systems that better support service operations.
LaVoi at IFS agrees. “Transformation is a journey, not a destination,” she says. She highlights that working with your SMEs, business owners and IT to identify quick wins can help drive overall engagement for your transformation project.”
Disruption with Focus
For TOMRA and ACCO, driving innovation means staying focused on customer needs without losing sight of core goals. Potts underscores the need for deliberate, customer-centered actions. “Customer needs evolve quickly, but chasing every new trend can be distracting. We must focus on customer needs in a way that advances transformative experiences without veering off course.”
Key Takeaways for Disruption and Innovation in Service
- Data Quality and Team Feedback: Improving data quality through frontline feedback enables precise KPIs and supports technician incentives and career paths.
- Challenge and Engage: Encourage a culture where frontline teams can contribute to process improvement and innovation.
- Technology for Customer-Centric Service: Offer tools that reduce data complexity and prioritize customer focus.
- Involve Technicians in Rollouts: Collect insights from top technicians before organization-wide technology implementations.
- Align with IT for Success: Ensure IT and service teams are aligned to meet organizational goals effectively.
- Stay Focused on Goals: Adapt to changing customer needs but avoid distractions that don’t support core objectives.
By concentrating on these areas, TOMRA and ACCO demonstrate how disruption, guided by strategy and frontline engagement, can drive transformative innovation in the service industry.
Best in class organizations like TOMRA and ACCO use IFS technology to drive innovation and create meaningful disruption. To learn more about IFS’ AI capabilities, visit ifs.com/ai/overview.
