Equipment Dealer Technical School Advisory Board Support Plan

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Equipment Dealer Technical School Advisory Board Support Plan

 

Our new guest writer, Ron Wilson has had the honor to work 41 years in the dealer equipment network in roles that included various parts and service management positions. He has spent time in the marketing department creating a data analytics team to utilize various data sources to improve existing and identify new revenue channels. Implemented pricing models that established market-based pricing models in the product support areas.  He has expanded a training department’s capabilities to support technical and people skills development that included applying the Kirkpatrick training model and implementing virtual training relating to the technical and people skills development during the pandemic. Introduced dealer classes that qualified for college credit at the community college level and transferred toward a four-year degree program at the local university. His first blog post for Learning Without Scars is a valuable contribution to our Lifelong Learning series: “Equipment Dealer Technical School Advisory Board Support Plan.”

Equipment dealers, other donors, and the various technical schools spend a considerable amount of time, effort, and finances to support the ongoing efforts of education and training relating to our industry.  Unfortunately, often the contributions are not properly aligned with providing the best educational environment for the students, and our future employees. 

The following information is to provide a guide that will review, identify, and provide focus of the resources that are being provided to the various technical schools.  This is only a guide, and does not include all the answers, but does provide directions that will improve the education and knowledge of our industry’s future employees.

Table of Contents for the Technical School Advisory Board Support Plan

  • Purpose and Roles of the Technical School Advisory Board
  • Structure of the Technical School Advisory Board
  • Planning and Conducting Technical School Advisory Board Meetings/Events
  • Assessing the Support to the Technical Schools
  • Levels of Involvement with Various Technical Schools
  • Industry Involvement in Technical Training
  • Consolidating various programs to meet the needs of training the students.
  • Agreement Regarding Donation of Equipment for Training Purposes

Purpose and Roles of Dealer’s Technical School Advisory Board.

Purpose Statement:

The purpose of this guide is to help in the development and management of the relationships with the various schools based on their Career and Technical Education (CTE) programs that are related to the skill sets needed within equipment dealerships. The focus of the support provides a common approach for industry and education to work together to close the gap in skill sets and the number of vacancies in the technician job roles within the dealership.

Advisory Board Roles:

The dealer’s Technical Training Manager is responsible for maintaining a current list of the CTE schools, points of contact, and ongoing relationship with each school based on an individual plan for each school.

Advisory Board Members:

Recommendations of who should serve on the Advisory Board:

  • The equipment dealer’s Training Manager
  • The equipment dealer’s Recruitment Manager
  • General Service Managers including various areas such as Machinery, Rental, Engine/Truck & Trailer, and Fleet Service operations.
  • General Service Managers may appoint someone to represent a specific geographical area within the dealer’s territory.
  • Advisory board members are assigned to support the overall needs of dealership.

Relationship with Each School:

The relationship with each school may vary based on the:

  • Capabilities (facility, faculty, and location) of the school to meet the local needs for of the dealership.
  • Desire of the school to support the dealer’s technician development requirements and participation in the educating of students in the related industry.
  • Location of the school

Scheduled Meetings:

  • Annual Educational Summit held at the equipment dealer’s Training Department to share accomplishments, skills needed, and support needed for the schools
  • Invite instructors, Program Deans, Student Advisors, and others that have the responsibility for the success of students within the school’s Career and Technical Educational programs.
  • Actively participate in the individual school’s Advisory Board meetings, written communication is sent to the dealership’s Corporate & Technical Training Manager

Structure of the Dealership’s Technical School Advisory Board.

Role of the equipment dealer’s members of the Technical School Advisory Board:

To define the dealer’s specific training needs and assist in the communication and development of training material that will link the specific schools to the skill level requirements of the equipment dealer’s service operations. The intent is to close the gap on the material being taught in the technical schools’ basic skills, as compared to the needs within the dealership’s shops.

Dealer members will at least include:

  • Corporate and Technical Training Manager
  • General Service Mangers (Machinery, Rental, Engine, Truck & Trailer, fleet service areas)
  • Recruitment/Human Resource representative

Technical School members will at least include:

  • Instructors from the technical schools
  • Dean of instructions from each school
  • Career Advisors from each school

The technical school’s participation will be critical to assist in the types of support needed for each school. The support provided can range from serving on the school’s advisory board, providing technical material that can be adapted to the school’s curriculum to meet the needs and obtaining classroom aids the schools can utilize within their programs.

Planning, Conducting, and Participating in Technical Schools Advisory Group Meetings/Events.

Planning, conducting, and participating in the technical schools’ advisory meetings/events will fall into three categories:

  • The dealer’s Technical Schools Advisory Meetings/Events: An event organized by the dealership to support/participate/build a one-on-one relationship with a specific school.  The dealership will identify specific needs that require a close relationship with a specific school, or group of schools.
  • Technical School Advisory Meeting/Events: Most of the technical schools are required to conduct industry advisory meetings. These meetings include a variety of topics ranging from budgets/finances, classroom material, review of student needs, and participation opportunities for the dealership to support the school that may result in connecting with potential future employees.
  • Industry wide involvement may include working with various schools, dealership customers, OEMs, and competitors.  The combined efforts may include events where the dealership will work with customers and possibly competitors to discuss, develop, and conduct events that supports the overall needs of developing and promoting the careers of technicians within the industry.

Assessing the Support to the Technical Schools

Limited Resources- We all have limited resources (time, talents, and dollars), therefore it is critical to focus on areas of positive impact with high results. In an effort to match the needs of the school and the support the dealership can provide a list of criteria, as a guide in defining the type and level of support to be provided to the technical schools.

The criteria will focus on:

  • Linkage to dealer’s technicians’ needs by location- for example supporting the store in area of the territory may be a little different than supporting a school in a different part of the dealer’s territory.
  • Skill level requirements- The type of skills may place focus in support of some schools.  For example, an immediate need for welders will be a higher priority for schools that have a welding program.
  • Short term/long term requirements- School relationships should be long term focused.  It takes time to:
    •  Build relationships- understanding our industry needs and the school requirements.
    • Develop curriculum the schools can apply within the classrooms that relate to our industry.
    • Obtain resources that meet the needs of the curriculum and to conduct the classes.
  • Current capabilities of the school- It is important to review the individual school capabilities and determine how the dealership can assist the schools. The most common support that can be provided to a school are: 
    • Content material-Providing content for the classes provides an opportunity to teach the material that is important to the dealership.  Some OEM’s allow the use of training material for schools.  Instead of providing all of the material at once.  A distribution plan per school should be utilized to assist with the introduction, teaching, and application of the material.
    • Training aids- can range from small parts to large components that can be utilized in lab exercises in support of hands-on experiences.
    • Instructor support- The dealer’s instructors may lead classes to the school instructors in specific topics (General Engine, Hydraulics for example) to prepare the school instructors to apply the material being provided within the school’s classes.
    • Estimated financial support- There may be some opportunities for financial support to assist schools in accomplishing initiatives that will align with dealers’ longer term needs.  The recommendation is to avoid the one-off donations for shop supplies (oil, filters, antifreeze) due to these being budgeted school expense items.  The focus should be on longer-term needs.

An assessment form should be developed to assist in the review of each school. The assessment is only a guide to decisions being made to determine the level of support to a school.

Levels of Involvement With Various Technical Schools

Involvement with the various technical schools may occur through various avenues:

  • Dealer/OEM Technician Degree Program- Participate in promoting the program to various individuals that have an impact in raising the awareness and interest in careers as technicians, and within our industry.  This will include working with various levels within the school programs, administrators, local community activities, and other associations that can have a positive impact in attracting talent to the dealer’s/OEM programs for technician development.
  • Advisory Board support to the individual schools- Assign Dealer employees to serve on the individual school’s advisory boards.  The assigned employee will most likely be a dealership instructor that can recognize training needs, and opportunities to assist the specific school.  The employee will have levels of “authority” to assist the school based on the needs assessed.  It is important the instructor/dealership employee be seen as active/engaged and can assist in making decisions on behalf of the dealership in support of the school.  Each meeting will be recorded in some type of form that identifies the date of the meeting, what was covered and includes a description of a need (if determined).
  • Dealer/OEM Training Material- The various dealers/OEMs have training curricula covering various systems ranging from basics to more, advanced service repairs, and diagnostics.  The course design instructs three primary areas: Foundational Knowledge, Skills Practice and Skills Assessment.  Each module should contain a Facilitator Guide, Student Guide, Activity Workbook, PowerPoint Presentations, including knowledge and practical assessments.  
  • Technical classes conducted by a dealer training instructor- Providing an opportunity for technical school instructors to continue learning about the OEMs’ product line, components and systems will increase the quality of students coming out of the program.  The class offering can best be provided to a group of schools’ technical instructors going through the class together.  These classes provide networking between the instructors and the dealer’s instructors as well.  As part of the class, the Dealer/OEM material will be provided that will allow the instructor to take the material back to their local campus and apply within their program.

Equipment Dealer’s Industry Involvement in Technical Training

There are several opportunities for dealerships to participate in the development of industry wide skilled technicians by working with the various technical schools.  The following are some examples of being involved at an industry level, which may still be combined with a technical school at some level.

Local Trade Associations

  • Associated General Contractors of America is an example of a local trade association that continually seeks opportunities to train technicians within the contractor association’s membership.
  • Dealers/OEM’s develop technician training classes that will meet the various State Technician Apprentice programs. This can be a fee-based program that provides classroom, lab exercises in a shop environment, and machines to support the successful completion of the program. 

National Trade Associations-

  • Associated Equipment Distributors (AED) is an international trade association representing companies involved in the distribution, rental and support of equipment used in construction, mining, forestry, power generation, agriculture and industrial applications. There are various programs available through AED that can support local high schools, community colleges, and technical schools in a common educational foundational approach related to teaching and training future technicians.  The programs can include:
    • Classroom material
    • Support through the AED Foundation
    • Technician assessments
    • Assessment tools to evaluate educational facilities.

SkillsUSA– 

Is a partnership. students, teacher. and industries working together to ensure America has a skilled workforce. SkillsUSA empowers its members to become world-class workers, leaders and responsible American citizens. SkillsUSA improves the quality of America’s skilled work force through a structured program of citizenship, leadership, employability, technical and professional skills training. The program enhances the lives and careers of students, instructors and industry representatives as they strive to be champions at work.

SkillsUSA serves more than 300,000 students and instructors annually. The organization has 13,000 school chapters in 54 state and territorial associations. More than 14,500 instructors and administrators are professional members of SkillsUSA.

For information about the national level, visit skillsusa.org

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The New Style of Leadership is a Developmental Process

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The New Style of Leadership is a Developmental Process

After a brief hiatus, guest writer and coach Floyd Jerkins is back with a new blog for our Coaches Corner: The New Style of Leadership is a Developmental Process.

What’s the most important asset in your business? If your reply is about the facility or the brand of products you sell, hang on for a second. The reality is your people represent business’s greatest asset.

Leaders have much better success motivating their employees’ creativity and challenging work when they take the employees’ perspective and invite them to generate their own self-endorsed work goals.

The new style of leadership is a developmental process. When you replace giving directives and commands with working patiently and diligently to see the situation from the other person’s point of view, you have better success motivating others. Gathering input and suggestions to pull all that information together to offer some constructive goals and strategies creates sustainable changes. Although these approaches to motivating and engaging others are somewhat difficult, they are well worth the effort.

Leaders use certain behaviors to engage and motivate employees. They know they cannot control employee motivation.

Optimizing internal human resources is one of the quickest methods to add profit to the bottom line. To scale and leverage a business requires a strategy that makes sense. Learning how to maximize effective working relationships tends to improve with training and a company-wide developmental program.

Creating intentional strategies to maximize the return on your investment in your people just makes good common sense and is a good business decision. We get into business to make money. When you follow my dynamic living articles, you know having fun and enjoying life can be accomplished while you own or work in a thriving business. To think you work 100 hours a week but don’t have time to enjoy life is not a fulfilling lifestyle.

 Leaders who recognize there is more potential to develop people than there are technical improvements or cost-cutting measures outperform those who don’t. 

Numerous studies reveal every year that, without a doubt, the top 1 or 2 reasons talented people leave their place of employment are because of the culture and the way their supervisor treats them.

A leader always knows their own strengths and weaknesses. They want to maximize employees’ strengths and ensure their weaknesses do not weaken their strengths. They are self-learners and seek to learn new attitudes and skills to maximize their effectiveness. The goal is to be the leader that followers like to follow.

Don’t think you can apply a one-size solution to improve your leadership capacity in your business. Improving one’s leadership abilities requires more than the five-step approach that many suggest. Each person is different, so their strengths and weaknesses are different. The learning path they need is unique to them.

Reading my articles, you know then that being effective and efficient can easily make more money in less time. A business with culture and leadership issues doesn’t mean the company isn’t profitable. It’s just not as profitable or satisfying to operate as it could be. It could be subject to chronic issues that could cause a business to fail quickly. Measuring the cost of turnover can lead to a loss of sleep at night. The numbers are staggering to realize, but there is an even more significant issue with many relatively easy solutions when leaders use the appropriate leadership style.

People issues cost your business about 25% of its efficiency. 

Your business improves when your people improve, and leaders and management lead that process to affect the culture positively. An employee who needs consistent attention and coaching can easily cost you more time than they’re worth. You want to see them growing into a role vs. being shoved because they don’t have the right skills or attitude. Moving people into different positions to find what they are best suited is easily an intentional strategy to improve overall performance. You just have to do this for the right reasons.

Middle management people are often overlooked and don’t get the respect they deserve. Their ability to get the job done is a duplicatable trait, and many I know enjoy coaching others. They typically have wonderful insight into what works and what doesn’t. When one quits or dies, you know first-hand how painful and costly they can be to replace.  

Unleashing the creativity of your management staff unlocks the controls to your business’s growth. There is more power to solve business problems and grow the opportunities when you unleash this natural creative energy you already have at your fingertips.

Motivation is a complex process to explain and equally difficult to realize fully. Science tells us that motives are internal experiences that can be categorized into needs, cognitions, and emotions that are influenced by a business’s culture.

These internal and external forces highlight how we can intervene to increase motivation. Depending on the motivational situation we are dealing with, we can design interventions that target physiological or psychological needs and make adjustments to the environment to create the opportunity for increased motivation.

“Among all the prospects that man can have, the most comforting is, on the basis of his present moral condition, to look forward to something permanent and to further progress toward a still better prospect.” Immanuel Kant

Finding what is easy to do is rarely what is effective. You often have to go back to the drawing board to do the challenging work of designing effective interventions and motivational support.

Unleash Creativity in Your Most Valuable Asset — Your People

Creating a learning and teaching environment creates a progressive culture that employees like. Key leaders with specific knowledge of performing a particular task or set of functions can quickly become teachers. Documenting these processes is a wonderful best practice to implement while creating a clearer pathway to scaling the business.

Many times, a one-on-one is needed to foster an individual’s talents. Based on the assessment of a group of leaders, they may require classroom-style training so they all hear the same organizational message, and you can measure the anticipated outcomes.

Those you’ve identified as up-and-coming leaders may need more clearly defined learning pathways and resources. Other individuals may require a personalized approach utilizing inside or outside resources.

Various classroom, online learning, and one-to-one resources are available and cost-effective today; yes, even executive coaching services are available. My service fits nicely into this kind of developmental and implementation work.

Remember, in most businesses, there is more potential to develop people than technical improvements or cost-cutting measures. Create that learning pathway so your young and mature leaders can be far more effective at influencing and optimizing your most important asset. You are better together.

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What Impacts Dealer Absorption Rate?

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What Impacts Dealer Absorption Rate?

Our new guest writer, Walter McDonald, is President of The McDonald Group, Inc. Over the past 4 decades has developed and presented over 2,600 machinery dealer management workshops. He recently completed publication of his 10-volume Master’s Program in Dealer Management. “What Impacts Dealer Absorption Rate?” is his first blog post for Learning Without Scars.

The absolute number representing “Absorption Rate” is interesting but not a call to action. It only indicates your current position relative to the target score of 100%, a very desirable financial goal for your machinery dealership. Many dealer managers look at their current score and say “WOW!” with little insight into how to make any improvements.

 

This Absorption Rate formula is something that you can use when you review Absorption Rate and discuss it with your management team.  I recommend your team review the components of Absorption Rate weekly. To support your discussions, produce a weekly flash report of your sales and gross profit by parts, service, and rentals plus departmental and overall dealer operating expenses. 

 

The formula below illustrates inputs to Absorption Rate from Service, Parts, and Rentals.                                     

Absorption Rate Formula

Gross Profit from Parts, Service Labor and Rentals   

 Absorption Rate     = Parts, Service Labor and Rentals
                                        Fixed Operating Expenses

Fixed Operating Expenses are those dealer expenses that do not change or vary with sales volume.  Sales Commissions are variable and are not included in Absorption Rate calculation.  There are other possible variable expenses, but for purposes of simplicity, we only use the big one, sales commissions, in this formula.

In your management review, ask what we can do to improve our position in each area.

Above line (numerator) items that can be controlled to improve Absorption Rate score include:

  • More maintenance contracts and inspections drive Labor Sales and Gross Profit up.
  • Improved service labor productivity drives Labor Sales and Gross Profit up.
  • Expanding technician apprentice program drives cost down, Labor Gross Profit up.
  • More maintenance contracts and inspections drive Parts Sales and Parts Gross Profit up.
  • Weekly or bi-monthly e-mail promotions drive Parts and Service Sales and Rentals Gross Profit up.
  • Parts Customer Price Discounts drive Parts Gross Profit down.
  • Better Parts purchasing practices drive parts Cost of Sales down and Parts Gross Profit up.
  • More discounts earned drive parts Cost of Sales down and Parts Gross Profit up.
  • Regular Stocking orders and vendor freight programs drive Cost of Sales down and Parts Gross Profit up.
  • Higher dollar and unit utilization drive Rental Sales and Rental Gross Profit up.
  • Improved inter-location unit availability information drives Rental Sales and Rental Gross Profit up.
  • Better turn-around time from rental return to rental ready drives Rental Sales and Rental Gross Profit up
  • Better control of maintenance costs drives Rental costs down and Rental Gross Profit up.

Below the line (denominator) items include expenses generated by each department.

  • Reduced service department Fixed Operating Expenses improve Absorption Rate.
  • Reduced parts department Fixed Operating Expenses improve Absorption Rate.
  • Reduced rental department Fixed Operating Expenses improve Absorption Rate.
  • Reduced machinery sales department Fixed Operating Expenses improve Absorption Rate.
  • Reduced administrative Fixed Operating Expenses improve Absorption Rate.

If you and your management team review the components of Absorption Rate weekly and have your ultimate destination of 100% in focus, progress will be much easier.  

I would welcome your comments:  walt@mcdonaldgroupinc.com

 

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The Lazy Management Problem

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The Lazy Management Problem

Guest writer Alex Kraft takes his cue for timing from Tom Brady’s retirement (again) in his blog post, “The Lazy Management Problem.”

I’ve wanted to write something on this topic for a while and Tom Brady’s retirement presented the perfect opportunity. I’m not surprised at many sports stats, but this graphic highlighting Brady’s excellence in his 40s compared to his 20s blew me away. More TD passes from the age of 40–46 than in his 20s? Ridiculous.

First Career – 21,564 Passing Yards – 147 Passing TD’s – Three Super Bowl Wins

Second Career – 40,018 Passing Yards – 309 Passing TD’s – Two Super Bowl Wins

Third Career – 27,632 Passing Yards – 193 Passing TD’s – Two Super Bowl Wins

Where am I going with this? We all see the same articles every day covering a labor shortage and others questioning the work ethic of the younger generation. There is some truth to both premises, but no one ever talks about the employer’s role. From my perspective, companies bear some responsibility for this problem by not having any structure to develop their employees. 

There is a lazy management problem. 

Everyone wants a Tom Brady in his 30s and 40s, they don’t want the 6th round pick Tom Brady that needs a ton of coaching and development. Those early Patriot teams relied on a strong defense and a conservative offensive game plan. Brady made some key plays at opportune times, but he was largely a ‘game manager’ early in his career. The Patriots developed Brady and gave him more responsibility as he improved. The offense evolved into a more aggressive pass-happy scheme that relied on Brady throwing 40+ passes per game, which was the exact opposite of those early Brady led Patriot teams.

I have seen the lazy management problem in heavy equipment my entire career. Every sales manager wants to “manage” the A+ sales rep who kills it every year. Conversely, they want to fire the low performer immediately. I’m not suggesting that every low performer can become an A+ contributor, but how many managers do you see devoting considerable time and effort into helping those low performers improve? It almost never happens. Everyone wants to go on sales calls with the A+ sales rep to their biggest accounts. Rarely do they collaborate with the young struggling rep as they try and build their territory. The younger inexperienced employees become a nuisance to the managerial layer. We get easily frustrated by the basic mistakes they make, by the “stupid” questions they ask, and how they just don’t seem to get it.

The same climate exists with younger technicians. How many companies have a formal plan to develop inexperienced technicians? Sending technicians to a product training school every 6 months doesn’t count. There doesn’t seem to be much thought put into what jobs these younger techs should focus on. Instead, managers are in reactionary mode dispatching an available technician to the next repair job without any real understanding of their capability. If that technician screws up the job, he or she isn’t any good. It is sink or swim. Companies are expecting everyone to hit grand slams right out the gate. We are setting people up to fail and blaming them when things go wrong.

The excuses are all the same. Managers will complain about how they are a lean company and don’t have the resources available to provide ongoing training. Blah Blah Blah. Why are the excuses always pointing to what other people need to provide? What then is the role of a manager? What are managers paid to do? Their collective laziness is making the job an unnecessary layer. This reality is devastating for organizations. It creates employee burnout, frustration, and leads to more turnover. I have seen this firsthand. I remember jotting down names of former coworkers in different positions over the years. The numbers were staggering. With some self-reflection, I realized that it was unlikely that we hired incorrectly those 50+ times, maybe the problem was our company not supporting/developing those 50+ people?

My intent is not to place blame solely on employers. I wanted to point out that the discussion around labor mostly seems to blame workers for not choosing a certain path or for a lack of work ethic. There is a joint responsibility between employees and companies. Not everyone works as hard and is devoted like Tom Brady. His desire, work ethic, and selflessness are huge parts of his unparalleled success. But the Patriots organization deserves a lot of recognition for helping him grow into the player he became. Maybe instead of hoping that more people decide to become technicians or younger people work harder, we ask ourselves ‘how do we help our existing employees become the best version of themselves?’ Control what you can control. I bet anyone reading this can think of a few managers they have worked with over time who would’ve said, ‘this kid Tom Brady sucks…he’s a 6th round pick for a reason!”

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ChatGTP and AI Foundation Will Change Everything!

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ChatGTP and AI Foundation Will Change Everything!

Guest writer John Anderson is tackling a topic that is the bane of school teachers everywhere: the advent of AI. In “ChatGTP and AI Foundation Will Change Everything,” John addresses the ways in which these technologies will change your business, your operations, and your future. He wants every reader to know this is no joke.

The Plot

Imagine you’re a heavy equipment dealer, running a dealership for one of the big brands like John Deere, Caterpillar, or Komatsu. You’ve got a lot on your plate – managing inventory, handling sales, handling customer service issues, and keeping the books in order. And then, you hear about something called ChatGPT.

At first, you might be wondering – what is ChatGPT? And more importantly, how is it going to affect my dealership? Well, let me break it down for you in simple terms.

First things first, let us talk about AI, or Artificial Intelligence. Essentially, AI is when a computer is able to do things that normally require human intelligence, like understanding natural language, recognizing images, or making decisions. And ChatGPT is a specific type of AI called a “language model.” Essentially, it’s a computer program that can understand and generate text, kind of like a super-smart autocomplete feature on your phone.

So, how could this be used in a heavy equipment dealership? Let me give you a few examples.

First, let us talk about sales. Imagine you’ve got a customer who’s interested in buying a new excavator. They have a lot of questions – what’s fuel efficiency? What kind of attachments does it come with? How does it compare to other models? Instead of having to answer all these questions yourself, you could have ChatGPT do it for you. It could understand the customers’ questions and provide them with accurate and detailed answers, leaving you free to handle other tasks.

Next, let’s talk about customer service. Imagine you’ve got a customer who’s having a problem with their excavator. They’re not sure what’s wrong with it, but they need it fixed as soon as possible. Instead of having to troubleshoot the problem yourself, you could have ChatGPT do it for you. It could understand the customer’s description of the problem, and provide them with a list of workable solutions, leaving you free to handle other tasks.

Lastly, let us talk about administrative tasks. Imagine you’ve got a customer who’s looking for a specific part for their excavator. Instead of having to search through the inventory yourself, you could have ChatGPT do it for you. It could understand the customer’s request and provide them with a list of parts that match their request, leaving you free to handle other tasks.

So, as you can see, ChatGPT has the potential to free up a lot of your time and resources, allowing you to focus on more important tasks. But how could this change the dealership in the future?

Well, for starters, it could make your dealership more efficient and productive. With ChatGPT handling all the routine tasks, you and your employees could focus on the more important things, like developing new business and building relationships with customers.

It could also make your dealership more accessible to customers. With ChatGPT, customers could get the information they need 24/7, without having to wait for a human to be available. This could be especially useful for customers in other time zones, or for customers who need information outside of regular business hours.

It could also make your dealership more cost-effective. With ChatGPT handling all the routine tasks, you wouldn’t have to hire as many employees to handle them, which could save you a lot of money in the long run.

Now, I know what you’re thinking – “But what about my employees? Are they going to lose their jobs?” And the answer is – probably not. While ChatGPT can manage a lot of routine tasks, it’s not going to replace human employees altogether. Instead, it is more likely that ChatGPT will change the responsibilities of your employees. Instead of handling routine tasks, they could focus on more important tasks, like developing new business and building relationships with customers. This could even lead to an increase in job satisfaction for your employees, as they’ll have the opportunity to do more meaningful work.

And, let’s be real here – ChatGPT is not going to be able to handle everything. It’s not going to be able to shake hands with customers, make a killer cup of coffee, or tell a dad joke to lighten the mood. It’s important to remember that while ChatGPT can handle a lot of routine tasks, it’s not a replacement for human interaction and relationship building.

So, in conclusion, ChatGPT is a type of AI that can understand and generate text. It has the potential to make your heavy equipment dealership more efficient, more accessible, and more cost-effective. But, it’s important to remember that it’s not going to replace human employees altogether. Instead, it’s going to change the responsibilities of your employees and open up new opportunities for them to focus on more important tasks. And let’s be real, who doesn’t want to focus on more important tasks?

So, embrace the power of ChatGPT, and watch as it takes your dealership to new heights. Just don’t let it start making dad jokes, okay? That is our job.

The Plot Twist

This blog post was written in one pass, entirely by ChatGPT, with simple instructions. It produced the examples, the ideas, the explanation and even the humor in under 30 seconds. The entire process from the instruction to the last word took under 1 minute.

The instruction was Compose a blog post of around 2000 words. The purpose is to explain what ChatGPT is in simple terms to readers and how it will affect the heavy equipment dealer in the future. Assume the reader has no idea what ChatGTP is and has technical education. Include a brief explanation of AI and what ChatGTP is. Then move on to how it would be used in a heavy equipment dealership like John Deere, Caterpillar or Komatsu dealer. Give several different examples ranging from sales, customer service to administrative tasks. Next present some ideas on how it could be used to change the dealership in the future. Lastly explain what impact this will have on the dealership in terms of process change and employee responsibilities.

This is the game changer, the apocalyptic change to the way business will be conducted and it’s already here. If you don’t embrace and adapt to this technology you will not be here, it is really that simple.

 

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Change Management – Not Just Another Business Cliche

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Change Management – Not Just Another Business Cliche

Guest Writer Steve Johnson, one of our educational specialists here at Learning Without Scars, writes today’s post about Change Management, and why it is not just another business cliche.

Entering the year 2023, I have been in a reflective mood. In my years in business, I have walked the critical path, pushed the envelopes, been right-sized, undergone knowledge transfers, sat directly on the cutting edge, jumped out of the box, been taken offline, launched trial balloons, delivered deliverables, lost traction, gone viral, drilled down to the granular level, hunted the BHAG, arrived “just in time,” and sometimes painfully, have had my paradigm shifted on multiple occasions.  There’s always a new book and the following wave of new buzzwords. A person doesn’t have to have been in the business world too long before business jargon starts going from meaningful to meaningless.   

The thriving art of business clichés may evolve into business comedy, however, that does not mean that some of the underlying ideas aren’t important.  For example, consider the topic of “change management.”  A cliché in itself, it has a number of accompanying sub-clichés: company agility, resistance management, the only constant is change, alternative futures, continuous improvement, etc.  There is humor in business clichés, yet successful companies understand that there are serious business implications inherent in many of them, particularly when they cannot navigate change. 

The list of big companies that could not successfully navigate change is long: Washington Mutual, Blockbuster, American Motors, Lord & Taylor, Prime Computer, Bethlehem Steel, PanAm, TWA, Digital Equipment Corporation, Montgomery Ward, Sears, Sports Authority and Faberge to name a few. Over the last few years in the industries that Learning Without Scars works with, OEM profit margins have decreased, the profitability of service departments have become critical to business success, transforming new technologies are becoming dominant, and industry restructuring and consolidation continues in the pursuit of economies of scale and assortment. Businesses are affected by e-commerce, growing rental markets, more small equipment market competition, alternative energy costs, EPA legislation, Tier 4+, and the list goes on. 

Do you have a company plan to address change in the industries you participate in and products you sell?  What about the marketplaces you serve? Do your business structures and processes facilitate optimal performance, customer satisfaction and profitability? Are your employees well-trained and up to the task? Are you able to recognize and capitalize on change, and even perhaps gain market share? At this time in 2023, we may or may not go into a recession, but certainly the time will come when we emerge into the growth stage of the business cycle?  Now is the time to develop solid product/market plans, focus on employee excellence and strategically position your company for the next “industry wave.” 

As you pursue employee excellence in your company, we encourage you to explore educational opportunities at Learning Without Scars for high quality industry- and position-specific education.

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It’s not okay to choose a career in heavy equipment

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It’s not okay to choose a career in heavy equipment

Guest writer Isaac Rollor certainly gets our attention this week with his blog post, “It’s not okay to choose a career in heavy equipment.”

Recently out of curiosity I used Indeed.com and searched “Heavy Equipment Mechanic.” For location I specified “USA.” Immediately there were 30,000 opportunities that populated my screen. Pretty amazing. Many of these job postings were urgently hiring. I saw many job openings for technicians at heavy equipment dealers. I recognized these dealer brands and knew that they were great employers who valued their people. This is truly an exciting time to start a career in this industry, there are many open positions providing great pay, great benefits and great opportunities to see things like mine sites, and construction sites that most college age employees would really enjoy. I would have no problem encouraging my children to start a career in heavy equipment and have the same experiences that I have had in this industry. It’s a rewarding career and it’s especially fun when you develop a connection with the machines though repairing or operating equipment. 

As I sat in my own little bubble thinking about how great this career choice would be for a college aged employee, I realized that I may be seeing things differently than most. When I see a job posting for a mechanic at a dealership, I have fond memories of repairing and operating machines. I remember feeling accomplished when a broken piece of equipment was brought back to life and placed back in production. These experiences make it “okay” for me to promote this career as a valid option for anyone. I suddenly realized that for most college aged workers it is “not okay” to choose this career path. Its “not okay” to work outside, its “not okay” to work in a dangerous mine etc.  It is “okay” to pursue 100 other, indoor, office based job titles. Why? Because there is a great deal of social evidence that this is a viable career choice. Parents, relatives, and friends all work downtown in an office, they share stories about their work. They make it “okay” to work in an office.

As a technical college graduate, I remember attending an OEM event where I had the opportunity to operate the machines and speak with other professionals who worked in the industry. I was hooked because not only did I make a connection with the product by operating it I also saw social proof that many other people had made this career choice. At that moment it was “okay” for me to choose this career path over all other alternatives. I walked away from that recruiting event with a group photo, several personal cell phone numbers of professionals I could call with questions and a memory that would forever anchor me to the brand. The event was successful and I became an employee along with several others who attended that day. 

If you observe carefully, you will see that certain industries are making it “okay” for college age workers to choose their industry as a primary career path.

How will you make it “okay” for great talent to join your team?

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Is Your Entry-Level Tech Training Plan Firing on All Cylinders?

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Is Your Entry-Level Tech Training Plan Firing on All Cylinders?

Guest writer Bill Pyles writes this week on the topic of on-boarding and making sure your techs are ready for what they are asked to do in, “Is Your Entry-Level Tech Training Plan Firing on All Cylinders?”

I’ve written blogs in the past addressing and promoting the value of entry-level technicians and mechanics; this blog adds to the prior discussions regarding entry-level techs. Entry level is usually younger men and women just starting their career in heavy equipment (or utility equipment) or older individuals starting over with a new career. Yes, the world is populated with thousands of experienced heavy equipment mechanics; but how are good mechanics and technicians developed? When does a young man or woman evolve into the “top gun” when it comes to equipment maintenance and repair? It happens from careful planning and attention to detail.

After retiring from the dealer world after nearly 50 years, I joined Mechanics and Techs LLC, a recruiting company for dealers, private contractors, and others. I’ve noticed a new position popping up at dealers, Talent Acquisition, or a similar title. Hopefully, these new positions will not only find new talent but also recognize there is much, much more in hiring and retaining talent. Successful companies will see the benefits quickly!

A few things must happen to take an entry-level tech from “desire” to “success”. The first basic item required is an individual who has a mechanical aptitude and the desire to continuously learn. There are several good mechanical aptitude tests available on the web. Another good place to start is a technical school, either public or private. Many out there are more than capable of teaching basic technician skills. Many offer a certificate program while others offer a two-year associate’s program. Some technical schools partner with a dealership to have the student physically work at the dealership during his/her education. This last option is great in having the ability to see the student in a real dealer shop environment with real-time input/advice from dealer supervisory personnel. The quality of the technical school training is equally as important as the student’s grades and attendance. Unfortunately, a student with poor attendance and poor grades will never be your next top gun tech. Never.

Finally, graduation day has come, and your dealership has made a commitment in taking on entry-level technicians. I feel it’s important to note, entry-level tech does not mean you’ve hired a technician whom you can pay minimum wage for the next few years. The first two items a dealer needs are a developmental pay plan (earn while you learn) and a career-building training plan, entry-level to Top Gun. Be sure part of the hiring process is a copy of your training and wage scale. Spend quality time with the new tech in explaining the “earn while you learn” approach. Remember, training never ends. I enjoy telling anyone on the product support team as soon as you think you’ve learned or experienced it all, something changes, and your back in training! Also, be sure to have the new tech uniforms ordered and hanging in the locker room. New uniforms can be a great sense of pride for the new tech and immediately identify him or her as a valued member of your team! Preferably, provide your company uniforms to the new tech while they are still in school. Very professional looking for all.

Bring your new techs in during the slow season (if you have one). Give them a fair chance to get acclimated to the shop environment and the other techs. Unfortunately, I’ve seen new techs thrown into the shop mix only to make mistakes and fail. Then the supervisor, who did little to help coach or mentor the new tech is screaming for his/her termination, NOW. All the technical training has now been wasted and the new tech has a termination to add to his resume as well as a broken ego. Bring the new tech on board when it’s slow. You’ll be able to properly onboard the new hire, have a coach/mentor work with him/her, and provide the environment that will contribute to their success.

Most of the OEMs I’ve worked with in the past have excellent training material available to the dealer and tech regarding their products. The training plans I feel had the most value was those that started with the basics (fundamentals of service), broken bolt extraction, general electrical, root cause failure analysis, etc. There is much to be learned before diving into the rebuilding of an engine or transmission. Unfortunately, the basics are too often overlooked, and we attempt to make an entry-level tech into a qualified field tech in too short of time. Needless to say, this results in incorrect repairs, frustrated customers, and a terminated tech. A structured training plan, with occasional updating for new products, will be your new tech’s roadmap for success. Allow your tech to participate in other training modules, such as oil sampling, systems training such as the undercarriage, ground engaging tools, cooling packages, and others.

Here is my opinion of a good training path. First, I strongly suggest using the OEM’s training path, including sending new and experienced techs for instructor-led training. Round this training out with the basics of electrical, hydraulics, drivetrain, and engines. Like any good educational program, the basics are the foundation, the building blocks of understanding the material being learned. I know this very well, firsthand. While in grade school, I did not catch on to the then, “new math” but always passed the current math subject and went to the next math training level. Without a basic understanding of the material, I had nothing to build upon (no solid foundation) and had to depend on others to help me catch up. That brings me to a third item needed, good mentors/coaches.

Designate a couple of top-notch mentors/coaches in your shop. Introduce your new entry-level tech to the shop coach/mentor (this could be your shop supervisor or leadman). A good mentor/coach not only needs to have outstanding knowledge of the equipment, but he must also have the mechanical aptitude to explain the repair. Think of this as being like your lead man or shop supervisor explaining a repair option to a customer. Most customers have some working knowledge of their equipment, some have very little working knowledge of how the equipment functions, but your challenge is to explain what failed (failure analysis) and what needs to be repaired/rebuilt (training path). A well-trained tech should know this as well.

Be sure to add your new entry-level tech to your incentive program and start measuring their performance. He or she is now part of your team, and every effort must be made to make the new tech feel like a contributing member of the team. If your incentive plan is based on performance (many are) be sure to choose the work orders carefully for the new tech. Assigning basic work orders, such as steam cleaning, moving the machine into a bay, removing and installing buckets for rental units, etc. can build the confidence of a new tech who is “learning the ropes”. The opposite of this example is putting the new tech on the job to pull the flux capacitor from the first machine to hit the market.  Why not, after all, it’s a warranty and you can invoice the manufacturer. And the manufacturer will pay a fair amount of labor, but not the 56 hours the new tech put into the work order.

Create your road map for new and experienced tech success with a solid wage and training plan. It will pay dividends!

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When Does Learning Stop?

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When Does Learning Stop?

Tonight, our Curriculum Designer, Caroline Slee-Poulos asks the question many of you may be asking: When Does Learning Stop?

I’m not trying to be obnoxious when I say this: learning stops once you are dead.

As long as we are alive, we are learning and progressing. Even if the process of learning is not what you might think of as “overt” – i.e. in a classroom, from books, in front of a teacher – you are still learning as you go.

That learning can be lighthearted, or formal. If you think you are not learning, I would ask you if you have ever helped a child or grandchild work on a level of a video game. If you have, I can guarantee you that you were learning in that moment!

Humor aside, there is a vast wealth of research about the benefits of lifelong learning. Outside of the obvious professional benefits, learning is good for your health.

The Harvard Business Review has reported on this. As an English teacher I, of course, love the fact that they note that reading lowers blood pressure. They also cite neurologists who observe that learning (cognitive activity) can delay symptoms of Alzheimer’s Disease. Learning does not change the disease, nor cure it, but a delay in symptoms offers a better quality of life to those with the diagnosis.

For many of us, we think of the formal education we have received in our earlier years as the model of learning. As you can see from my video game example above, learning goes beyond that classroom.

Picking up a new instrument, or spending time to learn new music are both ways of learning. Picking up a new hobby or craft are ways of learning. Developing a new habit – whether that may be a daily writing practice or reading practice – is another form of learning. Turning off the map program on your cellular phone and exploring an area with a map (or nothing but your sense of direction!) is still another way of learning.

What I am trying to demonstrate here is that our classes, which have moved away from the traditional in-person classroom, are part of a larger picture for your life. Yes, by continuing your education you are increasing your marketability and expertise in your field.

You are also improving your health and quality of life.

Isn’t it time for you to experience all of these benefits?

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Three Reasons to Invest in Your Website

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Three Reasons to Invest in Your Website

Learning Without Scars is proud to introduce our new contributer, Joanne Costin. Joanne Costin is an award-winning business journalist, content writer and content marketing strategist with more than 30 years of experience in the construction industry. She is a frequent contributor to the ConExpo-Con/Agg 365 newsletter as well as Inside Unmanned Systems magazine and president of Content for Biz, a content marketing agency. Her inaugural blog post, “Three Reasons to Invest in Your Website,” is a must read for all businesses.

Everyone by now understands the power of the internet and your website.

Your website provides 24/7 customer service

You know, more than anyone, that customers often need answers during hours when your business is closed. While you, your sales and service staff are home with their families, it’s your website that is delivering customer service. 

Starting with the basics, update your locations and hours on your website as well as your google listings as needed, including special holiday hours. In addition, be sure multiple points of contact are provided.

As an industry journalist I visit hundreds of websites each week. It amazes me to see how many websites fail to list the most basic information, like phone numbers. Instead, they often rely on a contact form that in many cases goes to a spam folder, or someone who chooses not to respond. 

It’s been my experience that, perhaps, one in 10 companies ever replies to contact form inquiries. Even worse, what message does it send to customers when they are not provided the means to leave a message because the voice mailbox is full? 

This has happened more times than you can imagine. Are you sure it’s not happening to your customers?

As labor remains in short supply, a website focused on customer service can remove some of the burden on your staff while expediting the resolution of customer problems. Younger customers, for example, tend to prefer contact via chat or text. 

A live chat solution might provide answers to questions quickly while directing customers to the right person. Live chat platforms are necessary in this digital age. In fact, 61% of B2B organizations are currently using live chat, so don’t overlook this important component.

Self-service options on your website provide another way to help customers with simple tasks like online ordering, billing or service inquiries. Also, do you provide a frequently asked questions (FAQ’s) area that could provide quick answers to customer questions? What about offering frequent blog posts to answer common questions, like those about preventative equipment maintenance.

In 2023, how customers view your customer service may largely be determined by your website.  Salespeople are getting less time with customers, your website is getting more Gartner research has identified how B2B buyers’ increasingly rely on digital channels throughout the purchase process (these might include supplier websites, third-party websites and social media). B2B buyers spend just 17% of their total purchase journey with sales reps. In addition, with the average deal involving multiple suppliers, a sales rep is afforded about 5% of a typical customer’s total purchase time.

In a 2021 study from McKinsey & Company, sponsored by AED, researchers found that despite anticipating a substantial increase in fully digital sales, only 14% of respondents listed digital sales among their biggest opportunities in the future of selling.

Your website is your most important sales tool. Be sure your site is easy-to-navigate on all devices, providing the information that buyers need to simplify their purchasing decisions. 

According to research from G2, 92% of B2B buyers are more likely to make a purchase after reading a trusted review. Consider that buyers constantly seek third-party endorsements. Product and service reviews and customer stories give life to your products and brands and enhance credibility.

Website copy should focus on customer outcomes and solving customer problems, rather than focusing on the dealership itself.  

Your website can help you find new customers

A website optimized for search engines can help your dealership find new customers for products within your local area or outside it.  Many equipment buyers start their journey with an online search. Keyword research can help you identify the search terms buyers are using, and with the help of blogs, videos and other content optimized for those keywords, your dealership can see an increase of visitors from across the web or across town. Ranking in organic search results can yield long-lasting benefits. 

How much is your website worth?

Your very first website was probably no more than an electronic brochure. Today, your website has an opportunity to be as valuable as any physical location of your business. Websites can boost online sales. They find and engage customers. They help resolve customer issues and get customer questions answered faster and more efficiently.

It’s time to capitalize on your website with investments in both content and functionality with the goal of improving the digital experience of your customers and boosting your company’s sales and profits. 

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