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  In this issue:

February 2006

 
   

Globalization in the Air
by Phil Verghis
President, The Verghis Group, Inc.

If you’ve been reading the mainstream press, you know that globalization isn’t far from anyone’s lips these days.

Outsourcing discussions are becoming part of the US presidential debates, Tom Friedman's The World is Flat rode the best-seller lists, BusinessWeek and other prominent magazines have done cover stories on it. It’s hard to escape this topic, and judging from the number of queries I receive from clients and prospects, it looks like it has started to hit close to home.

As you can see from this newsletter's Events section, I’m also being asked to speak more on this topic, both in the US and around the world.

Globalization in the AirGoing Global 
Take, for example, a recent call I received from a VP who handled Support Services for North America at a large conglomerate. Over the last 24 months, she had taken over a dysfunctional group, motivated it and brought in significantly more high-margin services revenue than she was expected to. Her reward? A big promotion. She now has global responsibilities — an awesome task, considering that her company has customers in over 70 countries.

While she had faced difficult challenges in turning around the North American Support Services team, she quickly found out handling global support is a far more difficult task.

Based on her visits to all support locations over the past two months, she unearthed 22 different tracking systems, from CRM systems to Excel to pencil and paper. There were no common processes or escalations. There was no common knowledge base. (Forget about it being modeled after KCS -- that would be too much to hope for.)

Reporting Woes
Even after her (newly created) role as VP of Global Support Services was announced,
she found that there were different assumptions about reporting, too. Some support leaders thought they reported directly to her, others felt that they were only dotted line to her (typically co-reporting to the regional sales executive).

Still others, meanwhile, adopted a "public acceptance/private defiance" attitude – as in "Let’s see what happens. Until then we’re going to do what we’ve always done, since we have never gotten what we needed from headquarters."

But that's not all. Some support to key customers was handled not by the company directly, but by resellers (particularly in Asia Pacific and Latin America).

Each reseller had their own documentation, and their own ways to set expectations with customers. Few had any kind of feedback loop which would allow them to share information with her company.

Add to all this some dramatic cultural differences, and the 24x7 support her customers demanded, and you could see why she was nervous. (Note: It's fairly common to see this kind of support with conglomerates, where companies are essentially asked to operate independently. This type of non-integrated support model is also seen in cases where there have been multiple acquisitions.)

Challenges and Rewards
Now consider the cultural issues, extensive travel, and family/life balance issues this job will entail. Why would she want to take it on? Why would anyone?

First, from a company perspective, they are counting on her to make it happen. Services revenue is an increasingly high proportion of just about every high-technology company’s revenue mix. In fact, according to Jeff Tarter of the Association of Support Professionals, a typical B2B software company now generates more revenue and more bottom-line profit from services than from any other source, including product and license sales.

From a customer’s point of view, support is a spaghetti mess of different service experiences, certainly one that they could not rely on to support their global business needs.

On a personal level, no doubt it would be challenging, but also incredibly rewarding. An opportunity like this can make a big difference to her career, and position her for even greater responsibilities.

She is in the process of joining my mentorship program, where I will be a coach and independent sounding board for her as she sets strategy and goals for herself and her global organization.

Note: If my mentorship program is of interest to you, give me a call and we can discuss it further. Due to the complex and intense nature of these engagements, I only accept a few clients at a time in this program.


    Going Global with Support– Part I (new article)

To read Phil's article in Support World, click hereYou stare at the phone as you listen to the voice mail message. At the same time an e-mail marked URGENT arrives. Both are from the same person – the Regional Sales Manager in Australia. With bluntness typical of a salesperson, both contain the same pressing question:

"When are we going to put support on-site in Asia Pacific? We anticipate huge growth in the region, and the only thing holding us back is your lack of on-the-ground support."

You decide it is time to do something, but what? Sure, it's tempting to simply leap into action and come back with an impromptu proposal. But expanding customer support into a new region—with different cultures, values and attitudes—is a big step. It’s crucial to step back and examine your company's strategic objectives before you begin. In other words, figure out the what and why before you tackle the how.

*  *  * 

Those are the first few paragraphs of a cover story I wrote for the latest edition of SupportWorld, the HDI magazine, which goes out to 10,000 subscribers. HDI members can read the entire article here.

Part II of the article will be in the March/April 2006 edition.


 

Webcast: Cultural Dynamics of IT Service Management

Last month MRO Software invited me to speak at a company-sponsored webcast, on the topic, The Cultural Dynamics of IT Service Management.

Judging by the feedback, it was a great success. It yielded excellent follow-up questions and comments from people across multiple continents.

MRO SoftwareIt was also my first webcast, and I'd like to extend my thanks to the folks at MRO Software for making it such a pleasant and rewarding experience.


   

Community Involvement and Events

Judge for ASP
I’ll be a judge again for
the 2006 Association of Support Professionals competition for the Ten Best Support Web sites.

SSPA Committees
I'm honored to have been invited to join two SSPA committees. I call one the "Show Me the Money" committee, which will attempt to answer this key question:

Can we come up with a key financial performance indicator for technology firms that conveys the total economic impact of service, support and maintenance?

The second SSPA committee I’ll participate in is one I call "What Happened to the Goose that Lays Golden Eggs?" This committee will attempt to answer the key question:

With today's increasing pressure on profit margins, what are the four most likely (achievable?) short-range (1-3 years) and mid-range (3-5 years) scenarios for the maintenance, service and support business?

You can read more about them here.


   

Book News

The Ultimate Customer Support Executive: Unleash the Power of the Customer continues to sell well, and is available from a variety of online book sellers.

But don’t forget, you can take advantage of a special discount only for newsletter readers and workshop attendees by clicking here.

   

Upcoming Events

I'll be attending these upcoming events and I hope to see you there.

February 2006

March 2006

  • Nashville, TN
    HDI 2006
    Talk: The Moose That Roared: Unleash the Power of the Customer
    Panel leader: Global Support Unplugged
    Featuring VPs from Deutsche Bank, IBM, Oracle and Research in Motion
     
  • San Diego, CA
    SSPA 2006
    No workshops currently scheduled, but you can sign up for the pre-conference SSPA session here. If you'd like a workshop in your company/region/country, let me know and we can work on making it happen.

April 2006

  • London, UK
    HDI Europe
    Talk: The Future of Support – 10 Years Out

Other events are listed here.


 

What Do You Want to Hear About? 

Your ideas, insights and feedback are important to me. I want to hear from you! What topics or books would you like to see discussed? Who would you like to see interviewed? Your comments, questions, ideas, suggestions, feedback and contributions are welcome. Send them to the editor here

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Previous issues:
December 2005
November 2005
September 2005
August 2005
 

   


About Phil Verghis

A preeminent expert on global service delivery, Phil was vice president of Infrastructure & Support at Akamai Technologies and a member of the Senior Executive Operations Group. Among other responsibilities, he launched Akamai's award- winning Customer Care Department and ran the world's largest IP network: 15,000 servers in 66 countries handling billions of hits per day. More about Phil.

About The Verghis Group
We unleash the power of your customer (SM). The Verghis Group brings years of expertise with innovative solutions that enable companies like yours to conceptualize and implement world-class customer support strategies that delight your customers and enhance your bottom line. Our strategies encompass your people, processes and technology. For the right clients, we can add significant value by taking a comprehensive look at issues from your customer's point of view.

We are vendor-neutral. Our mentorship and facilitation based model emphasizes the speedy transfer of knowledge to your internal teams.

For more information or a no-obligation initial consultation, contact:

  Phil Verghis  Box 123, 1770 Massachusetts Ave. 
  The Verghis Group Cambridge, MA 02140-2808 USA
  info@verghisgroup.com Toll-f'ree: (800) 494 9142 
  www.verghisgroup.com Phone: +1 (617) 395 6613
  Fax: +1 (617) 395 6643

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©2006 The Verghis Group. All rights reserved.