Imagine your company is delivering crucial equipment to a client that could make or break your company.
Would you ever dream of sending it without your delivery driver having a clear destination? Of course not. So why would you permit your service manager to operate without knowing where your company is going to be in five years?
It’s alarming that most service managers don’t have a business plan for their department, especially with service often being the foundation of a company’s success. Without a plan, it’s nearly impossible to achieve the level of excellence and stability needed to thrive. Don’t let your service department fall behind—take time to develop a solid business plan for it and let your service manager guide its implementation.
Have a Hiring Plan
It’s well established that it takes significantly longer to fully train a technician compared to employees in other departments. On average, technicians need about three years to become fully proficient, with the cost of training around $60,000. Contrary to what you may believe, this isn’t an exaggeration.
Therefore, it’s essential for your service manager to consider long-term goals when hiring technicians. These individuals will be vital to the company’s success three years down the road, so the service manager must have a clear vision of the company’s future.
Without knowing what the product mix or revenue streams will look like, it’s impossible for your service manager to make informed hiring decisions. Ensure your service manager has the necessary information and resources to make smart choices for the future of your company.
Creating a Comprehensive Plan
A service department’s business plan should include a detailed income statement that outlines expected sources of income and identifies new revenue streams. By providing specific details, the service manager can accurately plan for the workload and training required to service these income streams and effectively manage resources.
This plan needs to identify the changes to the geographic footprint of the business and anticipated changes to placement density. It should also consider the projected trends in print and copy volume and the impact on revenue. Your service manager must understand where the department is today and how internal and external changes will affect the demands on it.
A New Way of Thinking
I strongly encourage the inclusion of all department managers in the business planning process, as every member brings valuable insights and expertise to the table. Involving them can ensure that all perspectives are considered and that the plan is comprehensive and effective. Don’t underestimate the power of collaboration—involve your entire team, they need to work together to create the optimum plan and then implement it effectively.
As the business planning process progresses, each manager can assess the impact of proposed changes on the resources needed to achieve their department’s objectives. This will ensure that all departments have the needed support and resources to operate efficiently and effectively. By working together as a team they will better understand how the changes impact other departments as well.
Analyze Not Once, but Twice
Before you begin building your business plan, it’s important to conduct two different forms of analysis to make sure you’re on the right track.
The first is PEST, which stands for political, economic, social and technological factors. Analyzing these elements can provide valuable insights into the external environment in which your business operates.
While a dealer needs to focus on the technological changes the future will bring, the other three areas also play a decisive role in your company’s future. All your managers need to think about how social changes will impact their departments and affect your customers.
For example, consider the impact working from home has had on business for the last few years and how it’s changing your employees’ and customers’ expectations.
Also look at other social, political and economic factors likely to affect your business in the next five years, including inflation, recession, etc. If you don’t think and plan for these, your business could suffer.
After a PEST analysis, you can better identify the products and services that will meet the needs of your customers. This can help you map out your product mix and revenue streams, positioning your business for success. Don’t underestimate the value of a thorough PEST analysis—use it to shape and inform your business plan.
SWOT, the second type of analysis, is used to assess a company’s internal strengths and weaknesses as well as external opportunities and threats. It’s a way to evaluate the strategic position of a business and identify potential challenges and areas for improvement.
By considering the four namesake elements—strengths, weaknesses, opportunities and threats—a business can develop strategies to capitalize on its strengths, mitigate its weaknesses, take advantage of opportunities and address threats.
A SWOT analysis can also provide valuable insights into a company’s competitive position. Part of performing it includes asking and listening to your customers and employees about what they see changing in their work and how that will impact their technology needs.
Ask your employees what would make them more effective in doing their job and what would help them take better care of their customers. Finding the answers to these questions will make your business plan better.
Identify Needed Changes
By leveraging the insights gained through PEST and SWOT and analyses, you can create a strategic plan to better serve the needs of your clients. This information can be used to identify opportunities for improvement, develop strategies to address challenges and position your business for success in the future. Don’t let your weaknesses or external threats hold you back; use the insights from these analyses to map out a path forward and stay ahead of the competition. Including all the departments in your organization will help you drive company-wide improvement.
Begin with the End in Mind
Conduct new SWOT and PEST analyses each year to create a detailed vision of your company’s future and map out the steps needed to achieve your goals. This approach, outlined in Steven Covey’s “7 Habits of Highly Effective People,” helps you clearly define your destination and create interim goals for each year leading up to it.
By breaking down the current year into quarters, months and weeks, every manager can understand their role in driving the company towards the five-year plan. You’ll also want to identify key performance indicators that let you monitor your progress and see if adjustments to the plan are needed. The earlier you catch deviations, either positive or negative, the easier it is to make small adjustments to your plan.
Don’t let your company wander aimlessly—use these analysis tools to set a clear course and achieve your long-term objectives.
