1 KONE People Flow Day Report

People Flow Day 2015 S E R V I C E E X P E R I E N C E R E P O R T

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managers and building users – and how this knowledge will help us understand customer needs even better. In fact, all KONE professionals who interacted with people, collected insights and documented experiences, in a very real sense became true KONE Ambassadors. As Ambassadors, KONE professionals got the chance to interact with our customers in a positive, proactive and professional manner – in real life, face-to-face situations. On a strategic level, 2015 People Flow Day directly supports development in three of our key focus areas: developing a service culture, putting the customer in the center, and capturing the digital opportunity. Our ambition is to deliver performace, peace of mind and convenience – every time.

Our findings are now being shared via this report and through other channels in order to develop our offering and processes towards a better service experience. I would like to thank all those who contributed to the global success of KONE People Flow Day 2015!

Best regards,

Pekka Kemppainen Executive Vice President, Service Business

Service is our business

Editorial Foreword

2015 marks the sixth time we’ve celebrated KONE People Flow Day. This unique event, which has turned into a valued tradition, was designed to bring us closer to our customers and equipment users in very relevant and insightful ways.

This year, about 1000 KONE employees and almost 30 countries listened to customers, building personnel and users while others directly observed what people flow means in practice. We involved even more people this year, as our teams of service technicians were an integral part of the day. As KONE moves from being strictly a

tech-company to a more service-oriented one, our service technicians play an essential role in bringing the theme ‘service experience’ to life.

Along with our greater emphasis on service experience is an increased awareness of the different expectations customers may have, depending both on their business, and also

their culture. Some customers place a higher value on human interactions with KONE representatives, whereas others value a “silent service” premised on smooth operations with little interaction. Also related to India, we were especially proud of that country’s high level of participation in this year’s People Flow Day.

This year’s People Flow Day we together deepened our understanding of how maintenance works on site and how we are currently communicating with facility

Our technicians play

an essential role in

bringing this year's

theme– Service

Experience – to life.

People Flow Day participants ready for action in Texas, USA.

TABLE OF CONTENTS 3 Foreword

4 Insightful service provider

6 Communication is key

8 Delivering great service

12 The future of KONE service

14 Key insights

People Flow Day 2015

fast facts:

Organized on October 28TH

Close to 1, 000 KONE employees

participated in 29 countries

About 120 interviewed customers

and visited sites

Close to 400 interviewed building

personnel and end-users, 7 different

building segments

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Insightful service provider

Thousands of different KONE customers, equipment users and our own professionals were surveyed during the People Flow Day 2015. They let us know clearly what they valued.

The synergy of service and technology On a most basic level, our customers and building personnel expect two things: smoothly running technology, and great service. In other words, well functioning machinery is crucial to their satisfaction, but it is seldom enough. They need this technical expertise to be balanced with an accessible and trusted relationship with their KONE representatives

– one that begins by their concerns being listened. Approximately 70% of customers state that KONE listens to them and their needs, and that their KONE representative provides what amounts to a proactive consultancy service. Our 2015 survey results map both our accomplishments to date – and the work that still needs to be done in taking the lead in our customer relationships.

The basics are not enough The stakeholders we surveyed expressed an assumption that minimum requirements be consistently fulfilled.

In fact, while they increasingly expect much more than this, a basic level of service is taken for granted as a part of every KONE delivery. These basic expectations include safety, fast response times, punctuality, minimized disruption and a reasonable value for money. Additionally, a good attitude on the part of KONE professionals that is focused on listening to and respecting their needs and keeping customer informed.

The KONE advantage: accent on service People Flow Day 2015 was a great opportunity for KONE people all around the world to strengthen our understanding of what our customers value – and what is important to them with regard to their building operations. What we repeatedly learned is that service which goes beyond the basic, in ways that deepen the stakeholders' trust in their relationship with us, is both the key to their satisfaction – and our future success.

Facility managers and building operatives expect our immediate attention – plus a quick response, a proactive attitude, instant availability of spare parts, and no recurring issues or problems. As their service provider, they want to see KONE take the lead, across all communication channels and at every point in the service process.

KONE professionals sharing

insights in Texas, USA.

70% of customers state that

KONE listens to them and their needs

Meet the Ambassadors

The goal of our global KONE

Ambassador program is to

ensure that all our staff develop

the skillset and attitude to

consistently communicate and

interact with our customers

in a positive, proactive and

professional manner. The KONE

Ambassador program drives

KONE service culture.

Personnel BY TITLE

%18 Security guard

12 Receptionist

4 Janitor/cleaner

37 Building/facility manager

29 Other, (i.e. maintenance supervisors,

sales people, lift attendants)

Building personnel interviews

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Communication is key

At the very core of our survey findings is that clear communication is the foundation for every successful service experience.

One standard – many channels As this year’s survey shows, service communication happens both on-site and off-site, pre-service and post-service, and through a mix of channels responsive to each customer’s needs. What’s key is that all communication must be handled in a focused and respectful way with regard to all activities. For example, providing information in advance is valued by facility and building managers, as they can adjust their work and building traffic accordingly to minimize disruptions to end-users. Similarly, proper appearance and polite behavior of KONE service representatives is also both expected, and highly valued.

Of course, every customer is different, and some prefer less interaction – a worry free or “invisible” service – as long as everything runs smoothly. In fact, at 30% of our surveyed sites KONE maintenance activities have gone happily unnoticed by the building’s users. But what many facility and building managers tell us is that they wish to get on-site info on preventive maintenance activities, and also info about such things as what service has been carried out, and how often scheduled visits will happen. And if problems arise, they want proper and timely responses to their complaints, and easy access to top management when needed.

Post-service reports are also often highly valued. They should provide detailed information on what was done, when it was done and the root cause – the “why” of the service. A range of communication channels should always be offered – from face to face meetings to phone calls, e-mails and other digital channels, again depending on the customer’s preferences.

Clear, personalized and comprehensive Yet what our customers have in common is their wish to be listened to – and have their specific service needs fully met. We completely agree: at KONE, great service starts with truly listening to each of our customers and stakeholders. The second step is that we follow through at all contact points – and via all relevant channels – with communication that is clear, personalized and comprehensive. This is an area that KONE is already making significant efforts to improve.

Show & tell KONE service people are not just highly trained technicians; they also play a key consultative role. In other words, they are trusted professionals who can tell ‘how’ and ‘why’ a service is being performed – not merely ‘what’ is being done. In fact, our survey results clearly show that what makes a customer happy, it’s often not just of technical performance, but because they have been clearly informed throughout the service process.

Further, facility managers wish to be informed – even educated – about all planned, ongoing and completed activities – on time, regularly and proactively. In fact, we were happy to learn that over 60% stated that KONE keeps them and their building users well informed of service activities. Of course, great communication only has value if we then deliver what we’ve promised. The bottom line is that building and managing the trust that our customers, facility managers and end-users have in KONE is essential. Communication is trusted fully only when the commitments we promise are fulfilled.

KONE professionals getting valuable

information from building users in Finland (above) and in India (below).

Interaction matters

Providing on-site info, and more interaction generally, was valued by most KONE customers around the world, even taking into account differences between various business cultures. Nearly 83 % of the respondents reported KONE on-site information to be sufficient.

83GLOBALLY

%

KONE Care™ Online

Kone Care™ Online is a new

service that provides instant

data about the past, present

and future maintenance of

your equipment.

Past: provides data about

the availability, performance

and repair costs of your

equipment, as well as how

well KONE has responded to

service requests.

Present: provides data

about callouts and other

maintenance services.

Future: provides data about

longer-term equipment

performance and costs.

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delivery, regular preventative maintenance operations and our attention to safety. For example, a security guard in the United Arab Emirates mentioned that "KONE takes care to always display sufficient information about the work in progress in lifts and escalators" Likewise, ”after work hours” and night time availability are highly appreciated.

Our service technicians build customer relationships According to People Flow Day results most of KONE service techicians say they currently have good, long-term and trustworthy relationships with the customers they work with – and very few significant communication gaps. They report that the keys to a positive customer relationship include giving a fast response, listening to customers and continuously improving, along with being consistently transparent with regard to all service actions they initiate. Some technicians reported that they had been faced with customer dissatisfaction due to delays in spare parts delivery turned into postponed resolution of issues.

Towards better service delivery

Delivering great service

As a company KONE is committed to ever higher standards of

service delivery. But how are we actually doing? And how might

we further improve our performance? These are key questions

when it comes to becoming a more service-centric company

known throughout the world for our service excellence.

80 %ALWAYS

AVAILABLE

Spare parts – there when our customers need them

80% of the most common spare parts are always with our service technicians, and most of other parts can be delivered within 1–2 days.

Cornerstones of service delivery Regarding consistency, we have also learned that some customers have similar expectations, whether based in Shanghai or New York City – and this is especially true with companies operating in various locations who can easily compare our service quality in each location. Of course, consistency doesn’t necessarily mean identical service. Personalized service that is genuinely responsive to their needs is valued by many. Thus, things like response time, service communication and working environment should be adapted to meet each facility managers’ or building personnel’s expectations, priorities and budget.

We were happy to learn that many facility managers who participated People Flow Day gave KONE technicians´ credit for fast response time. Personalization in service communications comes into play with regard to which channels we use for service communication. For example, some building personnel prefer to use the mobile tools to communicate with KONE service people.

Regarding working environment, attention to detail is important. Tidiness after service as well as personnel appearance don’t go unnoticed and at times are used as a measure to assess service quality. Understandably so, since the image of the supplier affects the image of the client. In 84% of sites KONE participants noticed that working spaces were cleaned up before they would leave the premises. Our current numbers also show we are doing fairly well when it comes to reliability and speed, with most common spare parts on hand 80% of the time. Facility managers seem fairly pleased with our quick equipment

My KONE service representative always tells me the actual status and asks me if I need anything from him.

Retail Facility Manager, Great Britain

Finnish People Flow Day participants compare notes in the field.

Maintenance Supervisor, Canada

Customers want to have a consistent KONE experience. To see the same service and experience as provided by KONE in other countries. Whatever is applied in Canada is applied in Egypt.

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Theme 5

Facility managers voice their opinions The majority of survey interviewees were facility managers – a very significant group as they are responsible for the smooth and uninterrupted operations of their building. Because of their role, reliability and maximum availability of the equipment were most often mentioned as being fundamental aspects of what they considered great service.

Facility managers have an understandably low tolerance for downtime, and value a fast response coupled with scheduled preventive maintenance to limit breakdowns and the resultant loss of service. Similarly, they value a high level of skill and competence on the part of our technicians, seeing this a guarantee of effective service execution, which ultimately results in great service from their perspective.

Members of this group often emphasized that when service work causes unavoidable equipment downtime it should be kept as short as possible. It follows then that availability of spare parts is considered of high importance to them in order to limit the duration of any breakdown. Facility managers also emphasize that maintenance work should be done on time and according to the schedule. Maintaining the agreed schedule often is dependent on having the right spare parts on hand. And our service professionals are aware of this. For example, a KONE technician in the Philippines commented that "our customers want the parts being replaced to be immediately available".

“KONE stands out by taking the time to hear the voices of customers like us.”

KONE maintenance technician

working on an escalator.

As a customer, I would like to receive prior info about timings of maintenance, details about the work done and assurance about reliability of equipment after the work is completed.

Retail Facility Manager, India

Medical Facility Manager, India

Keys to a positive customer relationship

Respond quickly

Listen carefully

Communicate clearly

Provide high quality work

Minimize disruptions

Continuously improve

Be consistently transparent

Ensure availability of spare parts

Be reliable and available

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Theme 5

The future of KONE service

Our goal for KONE’s future is clear, rational and achievable: “To be the preferred maintenance partner for our customers, worldwide.” And we will achieve this by – at every opportunity – building the trust with building owners, facility managers, building users and customers worldwide. This trust comes from our commitment to developing ourselves as service professionals, including embracing a truly consultative role, not just a technical one. It also comes from being ever more consistent, while being more responsive to each customer’s specific needs.

Anticipating the future To succeed in the future, it’s important to anticipate it. KONE is committed to responding effectively to megatrends such as demographic shifts, digitalization and urbanization, through (to name just a few) solutions that rely more on real time data analytics, mobility tools and KONE Care™ Mobile App. These factors and a higher demand for maintenance will put pressure on providing skilled personnel.

But of course, getting the basics right will continue to be important as well. As one United Arab Emirates customer commented when asked about his definition of great service: "Two things: spare parts that are quickly available, and immediate responses on all issues."In the shorter term, new ideas by our customers that can enhance our responsiveness include banners & posters of do’s and don’ts, voice synthesizer interfaces, maintenance downtimes listed clearly in building info boards and regular meetings with customers to strengthen communication.

Staying focused on both rapidly emerging and long-term needs and trends – both large and small – will become an ever greater, more integrated part of the people flow business.

The KONE difference starts with responsivenessWhile anticipating and responding to the future is crucial, we also aim to even more strongly emphasize our strong customer focus and commitment – so much so that our service offer is widely seen to be consistently superior by our current and potential customers.

Clearly superior service is achieved through such practices as fast responsiveness to queries, prompt fixing of problems, consistently high-quality technical support with skilled technicians and excellent communication during all stages and through all channels. In short, our goal is to develop a truly unique service culture – one that always has the customer squarely at its centre. Part of our strategy for achieving this is to 'capture the digital opportunity’. By this we mean using analytics and also our mobile & digital tools more effectively, to both improve our customers' experience and help KONE professionals increase their productivity.

People Flow Day results mentioned KONE’s safety training opportunities, focus on eco-efficiency and ad- hoc janitor-service for critical equipment as signicant differentiation factors. For some facility managers and building users effective communication, responsiveness, technical support also stood out. Across our entire global organization KONE is committed to learning from this year’s People Flow Day results and taking them into account as a key aspect of our service development.

As survey results convincingly show, the future of service cannot be about just meeting minimum requirements. While it’s imperative that our technology remain cutting edge and highly innovative, service culture will play at least as large a role in determining our future.

People Flow Day atmosphere

in Texas, USA.

Teppo Voutilainen,

Head of New Services and Solutions, Finland

"Digitalization is changing

the face of where we live and

how we work. The way people

interact with their cities,

buildings and surroundings is

changing. New technologies

mean smarter service,

increased convenience and a

personalized user experience.

For KONE this means

developing a culture where

we co-create new products

and services together with our

customers and partners.”

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Theme 5

Key insights

Insightful service providerCustomers require two things: smoothly running technology, and great service. Technical expertise must be balanced with an accessible and trusted relationship with KONE representatives – and thus listening to the customer is key. Facility managers and building operatives expect our immediate attention – plus a quick response, a proactive attitude, instant availability of spare parts, and no recurring issues or problems. They want to see KONE proactively take the lead, across all communication channels and at every point in the service process.

Communication is keyService starts with truly listening to our customers – and the next step is that we follow through at all contact points with communication that is clear, personalized and comprehensive. Facility managers wish to be informed – even educated – about all planned, ongoing and completed activities, on time, regularly and proactively – via channels that align with each customer’s preferences. In fact, over 60% stated that KONE keeps them and their building users well informed of service activities.

Delivering great serviceTwo keys to service excellence are consistency and personalization. Customers often have similar expectations, yet consistency of approach doesn’t necessarily mean identical service. For example, some customers prefer to use the popular mobile tools to communicate with KONE service people. Tidiness after service as well as personnel appearance are at times used to assess service quality – and so is the strength of the service technicians’ customer relationship more generally. Ultimately, reliability and maximum availability of the equipment were most often mentioned as being fundamental aspects of great service.

The future of KONE serviceThe future of people flow cannot be about just meeting basic requirements – and service will play as large a role as technology in determining our future success. Our goal is to be the preferred maintenance partner for our customers, worldwide, and we will achieve this by continuing to building trust with customers worldwide. This trust is based on our commitment to continuous training for every KONE employee, including training them to embrace a truly consultative role, not just a technical one. It also comes from being ever more consistent, while being more responsive to each customer’s specific needs.

People Flow Day participants follow maintenance service in action in Turkey.

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About KONE

KONE is one of the global leaders in the

elevator and escalator industry. KONE’s

objective is to offer the best People Flow®

experience by developing and delivering

solutions that enable people to move smoothly,

safely, comfortably and without waiting

in buildings in an increasingly urbanizing

environment. KONE provides industry-leading

elevators, escalators, automatic building doors

and integrated solutions to enhance the people

flow in and between buildings. KONE’s services

cover the entire lifetime of a building, from

the design phase to maintenance, repairs and

modernization solutions. In 2015, KONE had

annual net sales of EUR 8.6 billion, and at the

end of the year close to 50,000 employees.

KONE class B shares are listed on the Nasdaq

Helsinki Ltd. in Finland.

This publication is for general informational purposes only and we reserve the right at any time to alter the product design and specifications. No statement this publication contains shall be construedas a warranty or condition, express or implied, as to any product, its fitness for any particular purpose, merchantability, quality or representation of the terms of any purchase agreement. Minordifferences between printed and actual colors may exist. KONE MonoSpace®, KONE EcoDisc®, KONE Care® and People Flow® are registered trademarks of KONE Corporation. Copyright © 2015KONE Corporation. 8129

www.kone.com