, ,

Coaching

Coaching

We are constantly looking to our clients to help us determine what additional learning classes we should create. We get a lot of very good suggestions.

Recently, I was asked to create selling skills classes for service management and supervision, foremen and customer contact personnel. We are creating those classes now.

Another suggestion from our clients was regarding the management courses we offer. We have taught management and supervision now for over twenty years in the classroom, with webinars and most recently our internet-based classes. However, it was tied to the functions within the department. It was never “pure” management functions. That program is now under development.

Another learning area that was requested of us was coaching and mentoring. We were first approached with the need to help a specific individual with their management skills with their team. Communications skills were specifically requested, as well as leadership and trust. That was matched with another request to assist in the development of a new manager in a new job function.

It is always necessary to make changes in our programs based on what is needed in the “learning arena.” As our industry changes, I adapt as well.

Coaching is the subject I would like to explore more with you this week. Personal success is a common and constant pursuit for talented people, for curious people, for self-motivated individuals. Satisfaction comes form being able to tackle and overcome difficulties in our lives. As John Wooden said we he defined SUCCESS. “Success is the Peace of Mind, which is a direct result of self-satisfaction in knowing that you made the effort to become the best you are capable of becoming.”

I have been telling the story in classrooms and in talks for a long time now about the individual who at sixteen years of age, let’s call him James, is told that they have POTENTIAL. That is a wonderful thing. It holds such promise and hope. Now I would like you to imagine that James is now sixty-six years of age and is still told he has a lot of potential. Shouldn’t the next question be “what have you been doing the past fifty years?”

Coaching is vey personal. It is working with individuals and helping them to reach their potential. A good definition of coaching is that the purpose of coaching is “unleashing or unlocking the potential of another human being.” Perhaps that sounds too overpowering to you. But that is what you do if you are coaching another person. You are helping them become better at what they do.

Gallup surveys everything and coaching is one of the subjects on which they have conducted surveys. Their surveys say that 30% of the people want coaching to help them with “life, purpose, vision, creativity and integrity.” That is a real mouthful, isn’t it?

At the end of the blog last week I stated that “I think we all can do much more in our lives and in our careers.” Sometimes that challenge overwhelms us. Don’t let that happen to you. Take up the challenge. Find a coach: someone you trust, someone you respect and someone who will be honest with you. Then get started. As the US Army commercial says “be all that you can be.”

The Time is NOW.

, , ,

e-Learning

e-Learning

Twenty years ago, in 1999, John Chambers, then CEO of CISCO Systems said, “Education over the internet is going to make email usage look like a rounding error.” The renowned Clairmont Professor and business guru thought that “Knowledge has to be improved, challenged, and increased constantly, or it vanishes.”

As those of you who read this blog know we are serious proponents of providing tools for employees whereby they can reach their potential. Learning to me is a lifelong pursuit. You really only start to learn once you leave the structured education system that we have in place. Too many people, however, act as if that is the end of their education.

We are extremely pleased to be in the final stages of certification by the IACET, the International Association of Continuous Education and Training. They have a very rigorous certification process that we have completed and are in the final review process. You will hear more on this in the near future when we get all of the documentation completed.

This is the final step in our platform for training in the Heavy Equipment, Light Industrial, Material Handling, Trailer, and Ground Water Industries with which we are associated. We will be the only certified company in these Industries in the world.

We ran a brief review of our offerings within the past month and it is quite substantial. We currently have around 90 people taking classes on line every day. We have enrolled over 600 people in the past two years. It is starting to take hold.

What we offer is an employee development structure for each job function in the Parts and Service world. We assist dealers and distributors and some manufacturers now in creating a learning path for specific jobs. A career path if you will. We are in the final stages of announcing our “badge” program.

The Physical Universities and Vocational Schools are the only ones who can provide a “parchment” that says University Degree. The internet-based learning world is “not allowed” to offer degrees. We offer and provide badges. In our programs the badges cover; Operations, leadership, Sales, and Finance. Each class earns a badge and after accumulating Badges taking classes there are four levels of achievement; Platinum, Gold, Silver and Bronze. Each student can share their learning results from us with their prospective employers which provides, we believe, a much more complete picture of the knowledge of each individual who has followed our programs.

A study done in 1000 by WR Hambrecht + Co called “Exploring a New Frontier” provided the following list of factors driving e-Learning:

• Rapid obsolescence of knowledge and training
• Internet access if standard at home and at work
• The need for just in time training.
• Technological advances enable interactive and media rich content.
• Efficient means to train a global or national work force
• Increasing bandwidth allowing more streamed content
• Increases in skills gap and demographic changes
• Growing selection of e-learning products and services
• Demand for flexibility for lifelong learning
• New standards to facilitate compatibility, usability of e-learning product
• Wide variety of topics addressing business objectives
• HR, Management, Customer Service and Compliance Topics
• Simple access point and integrated data
• AICC and SCORM standards for inter-operability

I believe that e-Learning is now starting to hit its stride. All of the above points are even more pronounced today.

We are hitting our stride as well:

 We have created our platform – the learning management system
 We have developed the products – over 112 different programs
 We are in the final stage of accreditation – IACET
 We are finalizing the recognition programs with our badges

Now it is time to sell the program and get more people learning on a daily basis.

We highlighted a quote from Peter Drucker at the outset of this blog “knowledge has to be constantly improving or else it vanishes.”

Where are you in your learning?

 Are you reading books and taking classes constantly?
 Or is your knowledge becoming dated and no longer current?

I think we all can do much more in our lives and in our careers. In fact, with the rapid rate of change in the world around us I believe it is absolutely critical for us to continue to learn. What do you think?

The Time is NOW.

, ,

People

People

Nothing is possible in the parts and service business without people. We closed our last post with the fact that we have standards of operations that address the people subject. These are “traditional” standards which are based on traditional operational methods and systems and processes.

But our operations need to be tuned up. Let’s start with productivity. Do you think that with your current structures and personnel levels you will be able to handle the business that will come with increased sales and market share we discussed last time? I submit to you that it will never be achieved if all you do is continue to do what you have always done.

The Industry started in the late 1970s and early 1980s to look at sales per employee as the holy grail of headcount. However, most companies looked at those standards and said to the operational people that they needed to operate at higher and higher sales per employee levels. That the higher the number the better it was.

WRONG.

The truth is that if you do not have enough people to do the job properly the people will decide what is important that needs to get done. What that is to them is satisfying the customer that the yare dealing with at the moment. If there is no time for anything else – such as calling back on backorders or calling out to customers who have not been seen or contacted for some time, or anything else to protect or grow your market share – so be it.

That is exactly what we have today with most parts businesses worldwide.

Is it any wonder that the authorized equipment dealer has a parts market share is in a range of 20% to 40%? Quite frankly they don’t deserve even that much.

Let’s go back to the fundamentals of the numbers of people to employ. Let’s look at financial standards based on the compensation packages offered to employees. This compensation package covers all payroll expenses, sales, wages, commissions, as well as all benefits such as medical, vacation, paid time off, etc.

The following are standards that are normally what I see in best practice dealers.

 Parts < 7%
 Service < 15%

If you are higher than the above measures then you need to focus on innovation. Improve methods, processes, systems and everything you can to achieve the personnel numbers above. The only way you can achieve radical improvements in operational performance is if you get all of your employees involved in the process. If you are lower then you are unable to satisfy the customer needs and need to hire more people. It is that simple.

The Time is NOW.

,

Innovation and the Challenge

Innovation and the Challenge

Last week we talked about the challenge in the acquisition and retention of the talented people that you would need over the coming years. We also addressed the challenge of the new partnerships required between businesses and the education system.  Through this partnership, we can fill the learning to employment chasm.

Now I would like to turn to where we have more direct control: Innovation.

This year we are seeing rapid and healthy capital spending by business across the country. This is the precursor to improvements in productivity in the workforce which will lead to higher wages.  These are all good things.

However, what are YOU doing to innovate your way to higher productivity?

Let’s quickly review some high-performance benchmarks for parts and service.

Parts & Service Sales > 40% of Total Dealer Sales.

No matter what you think, you can achieve this level of sales IF you achieve higher market share numbers. BUT that will not be easy. It will not be achieved if all you do is continue to do what you have always done.  You would do well to remember the definition of insanity here, as I reference it so often: continuing to do what you have always done, while expecting a different result.

Some key steps to achieving higher market share:

 Obtain complete accurate machine ownership lists.
 Segment your marketplace.
 Establish a market coverage strategy.
 Assign customers to external and internal sales teams; in the filed and on the telephone.
 Train your market coverage personnel in territory management.
 Establish specific objectives for purchases for each of your assigned customers.

THEN YOU NEED TO MAKE IT HAPPEN.

Operations need to be tuned up as well. Let’s start with productivity. Do you think that with your current structures and personnel levels you will be able to handle the business that will come with the above action steps? No matter what you think you can achieve this level of sales It will never be achieved if all you do is continue to do what you have always done.

We need to attack the structures. So, let’s go back to our fundamental question:

WHAT DOES IT LOOK LIKE WHEN IT IS RIGHT?

To start with all parts and service sales prices are at retail customer price for the following benchmarks. No, you don’t need to change how you price things, although that would be the right thing to do, you can simply do the arithmetic.

To operate at high levels of productivity requires the following benchmarks be achiever. Personnel Costs as a percentage of Sales Revenue.

Parts < 7%
Service < 15%

The above two measures will lead to sales per employee numbers. If you are higher than the above measures then you need to focus on innovation. Improve methods, processes, systems and everything you can to achieve the personnel numbers above. The only way you can achieve radical improvements in operational performance is if you get all of your employees involved in the process.

Remember: Understanding, Acceptance and then Commitment.

More on that next time.

The Time is NOW.