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Many manufacturers are struggling to grow their services business and accelerate their journey along the products-services-continuum, making their performance fall behind the competition. Momentum is the missing link that differentiates the ‘leaders’ from the ‘laggards’, as opposed to good business strategies, business cases, or commitment from the board-room.
In today’s rapidly changing world, the ability to continuously adapt and drive change is crucial for sustainable performance- for today, tomorrow, and the rest of the future. Industry leaders who can develop their service business at a fast pace can reap the rewards of higher growth rates, and a stronger business brand.
The ‘Power-by-the-Hour’ approach by Rolls Royce is a good example to look at. The company owns the engines underneath the wings of airlines, and therefore guarantees that the engines will always be available for going airborne- whatever the flight schedule may be- and all without any disruption.
The Missing Link
It is common for business leaders to see their team behaving defensively. This may include pointing fingers at each other, pushing new practices and solutions away, lacking interest in collaborating with other teams, failing to take ownership of their responsibilities and disapproving of stretched aspirations. This results in ‘resistance to change’. Essentially, there is a lack of momentum towards adaptation and change.
‘Plan and Control’- management practices of the 20th century, is the root cause of this. These commonly used practices push people towards a short-term focus on maintaining a status quo, and meeting individual targets every week, month, and quarter. The typical idea of ‘failing not being an option’ creates an unsafe and uncomfortable environment, which creates resistance- as described above.
Imagine if everyone in your company was passionate; and excelled at driving and adapting to change, as well as keeping up with the developing world and industry. Employees from every department would seize ownership of aligned initiatives and amongst them take action to accelerate the servitization process, and outperform competitors. Not only this, but they would also learn from setbacks, and adjust priorities and strategies to help them succeed. As a business leader, your role is not ‘pushing’, or overseeing every single initiative or intervention. Rather than doing this and becoming more frustrated, remember that change energizes people.
To achieve the above, it is important to fine-tune our management practices and create a safe, constructive, and progressive environment; in which people are triggered by passion, power, and above all- the confidence to adapt and drive change. The 4 winning habits of long-lasting achievers in servcie provide a way to cope with the problem.
Learn from the leading manufacturers who are successful in adapting their business and benefit from instilling a higher pace, in their servitization journey. Download our research report about Momentum in manufacturing industry.