Guest Bloggers Archives - Page 18 of 41

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!

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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Guest Bloggers, Steve Johnson

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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Guest Bloggers, Isaac Rollor

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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Bill Pyles, Guest Bloggers

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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Caroline Slee-Poulos, Guest Bloggers

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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Guest Bloggers, Joanne Costin

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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Guest Bloggers, Tom Montgomery

Does Your Dealership Measure Customer Retention?

Our new guest writer, Tom Montgomery, asks a critical question in his inaugural blog post for Learning Without Scars: Does Your Dealership Measure Customer Retention?

If you had to define Tom Montgomery in a nutshell, you would say he is a powerful strategist. Tom is a business savvy professional with in-depth experience. He is consistently able to deliver excellent results in high growth, competitive markets. Tom is a strongly analytical person with a no-quit attitude. He is a dedicated team builder and creates an environment of support and encouragement for his team members. Tom is an articulate communicator who is skilled at building relationships. He has served as a mentor to many and teaches customer loyalty skills while driving sustained revenue growth. Tom comes to us with a skill for transforming low-performing teams into high-caliber workforces. He has had a more than 40-year career in the heavy equipment industry.

During the time that I was working for one of the leading Komatsu dealerships in North America I discovered a method on how to improve profitability by understanding how often our customers bought goods and services from us. This was one of the simplest and easiest methods to create new opportunities for the dealership however very few dealerships take the time or effort to find out how. This method was a review of how successful we were in keeping our customer base loyal to the dealership.

It was all about Customer Retention!

Measuring customer retention may be one of the most important steps you can take to protect your dealership. It gives you a firm grasp on the “percentage” of your customer base who buys from you year-after-year. Learning how to measure and understand retention will allow you to take steps to improve the sales and profitability of your business. When I discovered how to track this important measurement, I was able to work magic in terms of sales and profits.

What Is a Reasonable Target for Customer Retention?

Remember, we are trying to find what percentage of your customer base who buy from your dealership on a repeat basis (historically comparing one year to the next year).

It is best to use a five-year history if you are able to do so. A reasonable goal would be keeping 80% of your customers in Parts and Service departments and 95% in the Sales department.

First Let’s Look at the Benefits to Your Dealership.

You don’t need to be a math wizard or a specialist in database management to accomplish this.

You will see how DO-ABLE this is as you read further. When I have studied dealer’s customer retention, I have found that most dealers lose at least 50% of their customer base in a five-year period. In order to survive you must find a way to replace that income or perish. One way to replace that income is to find new customers to replace those who have left your business.

However, adding new customers to your customer base is the most challenging and expensive way to survive.

There is a better way!

It is much more valuable and less costly to find ways to sell to existing customers rather than to add new customers as the sole method of making your business grow. Consider this; you have probably spent a considerable amount of time, energy and money building a relationship of “trust” with you current customers. You must “leverage” this relationship of trust to benefit both your customers and your business. It has been estimated that it costs 5 to 14 times the amount to add a new customer as it does to sell to an existing customer. Most dealers DO NOT have the resources to sustain that type of activity.

What Are the Reasons Customers Leave a Dealership?

This information comes from my study of dozens of dealerships:

5% of customers leave a business because they have moved out of the area.
5% leave because of changing their buying habits.
10% leave because they prefer the competition.
12% leave because they did not like the services your dealership provided.
68% of customers leave because they believed they were treated with indifference or have felt unappreciated.

Here are a few important questions to consider.

After a customer purchase from your business how soon should you contact them with a telephone call, post-card, email, letter to say, “Thank You?” Do you have a standard practice in your business to “follow-up” on a recent purchase? Retaining a customer is nothing more than finding ways to meet and exceed the customer’s expectations. And… It is much easier to do that than to continuously find new customers.

What Is the Financial Impact for Your Dealership?

By figuring out the percentage of customers that buy from you, year-after-year, you will be able to specifically measure the “financial” impact to your dealership. Here is a remarkable fact:

For every 5% improvement in retention, you can expect a 25% to 80% improvement (or more) in the profitability of your business. Since a majority of dealers never measure customer retention you will be creating a significant advantage over your competition. It is like having a roadmap to improved profitability. Once you know where you stand you will be able to make significant changes to improve it.

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Christopher Kiely, Guest Bloggers

The Year That Was

Guest writer Christopher Kiely takes on the important task of the review of 2022 with his blog post: “The Year That Was.”

I was asked to write a “year in review” type reflection piece for the end of the year. As you can tell it is now past the end of 2022 and no such piece was produced. Instead, I pondered and wondered and debated and did all the usual writer’s block prolonging techniques that I have perfected over the years. If there was a market for such knowledge, I could write a book!

The problem is, I take this lesson to heart, elucidated by many but perhaps most succinctly by Buddha:

“Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment.”

2022 was a challenging year for me and many of my friends and acquaintances, and unfortunately for many people I know 2023 is continuing to provide challenges even in its nascent state. Sitting around pondering the past and predicting the future are intrinsically intwined human behaviours and this time of year when our calendar flip urges us to reflect and consider past and future there is no shortage of such behaviour. There is also no shortage of depression and anxiety surrounding this time of year.

As Lao Tzu pointed out:

“If you are depressed you are living in the past. If you are anxious you are living in the future. If you are at peace you are living in the present.”

That is some of our oldest written human wisdom right there, often repeated throughout millennia. Yet we persist in our mind-wanderings into fictional futures and misrepresented pasts, ignoring the reality of the present for the dream images of the past or the imaginative dilemmas of invented futures. We have become consumed with such things in our culture. Tearing down symbols of our past while making plans and predictions about our future based on ill-conceived computational models. We spend remarkably little time in the present. Perhaps if we did, we would solve our more “present problems” such as homelessness and poverty rather than trying to right past injustices (a fool’s errand) or get to Mars in an EV spaceship (a fool’s goal).

Time is a glittering light for most of us. A shiny beacon we can hardly take our eyes off or shift our mind from. It is all around us, on our phones, on our wrists, on our walls, glowing from billboards and signalled at quarter hours by bells and cuckoos. Yet we don’t even really know what it is. We can explain it chronologically, “time is the continued sequence of existence… blahblahblah”. But where does it go when we sleep, when we no longer perceive it and its best-friend space? It becomes an illusion.

As my best-friend I never met Alan Watts points out:

“We are living in a culture entirely hypnotized by the illusion of time, in which the so-called present moment is felt as nothing but an infinitesimal hairline between a causative past and an absorbingly important future. We have no present. Our consciousness is almost completely preoccupied with memory and expectation. We do not realize that there never was, is, nor will be any other experience than present experience. We are therefore out of touch with reality.”

“Out of touch with reality” is how more and more of us are beginning to see the world we live in. At least those of us that have broken away from the institutional propaganda we have been conditioned to accept as our past, present and future. These are the people I write for. Those of us that have deeply felt the absurdity of it all. This is not something you can explain or convince someone of, much like faith, proselytizing to the nonbelievers is typically futile and it requires the same “knowing as a feeling” as opposed to rational thinking, in a world where rational thought is governed by that which you perceive as part and parcel of the absurdity.

So, I don’t spend too much time recalling the past or gazing toward an uncertain future, a terrible person to ask to write a “year in review” piece. But not the worst person to provide some trite rehashed “New Year’s Wisdom” you can discard with your new gym membership in a few months? Perhaps. We’re going to give ’er a go regardless.

Living purely in the moment is a nice notion, suitable for monks and bong-smoking couch dwellers. One can disappear into such existence if one chooses a devoutly ascetic life. Most of us are not conditioned to such a lifestyle however and, illusion or not, must actively participate in time. Appointments are made, meetings scheduled, future KPIs, goals and objectives are set. We are flooded with past data, asked to recall and recollect, urged to review past earnings and performance. It is easy to lose that “infinitesimal hairline” of reality when one actively participates in the absurdity. But actively participate we should and often must!

Where then do we find the time for the present, for the moment, for the now? Remember in school when you were told not to daydream? They lied to you.

As our good friend Albert Camus counters:

“Imagination offers people consolation for what they cannot be and humor for what they actually are.”

Imagination allows us to escape Lao Tzu’s “anxiety” and “depression” of time. It places us in the creative now and, contrary again to what we have been taught, creativity requires no great technique beyond the ability to daydream. The institutional ideas and standards for creativity are housed in systems and techniques (music, photography, oil painting, sculpture, etc.…) that one must train and develop. To connect to the present moment, many people and organizations preach the need for meditation or “mindfulness” never confessing the difficulty or even discord some may find in the practice, especially initially. But the pay off for creativity needs no marble statue or voluminous published works, one can be the crafter of epic works in their mind, the benefit of the imagination, of the exercising of creativity is the same, regardless of tactile outcomes. And connecting to the present moment does not require the quiet undisturbed still-mindedness of a Zen master.

The mind can be allowed to wander, to question and create on its own, the need to silence it is overstated. Discovering the mind is just like your lungs, and one can actively think as they actively breath or leave both the breathing and thinking to natural impulses we don’t directly control, or understand, is the real secret to “mindfulness”. By understanding your thinking is not you and letting it flow rather than trying to cling to thoughts, one can develop a contemplative imaginative creativity that has no technique beyond the manifestations of one’s own mind and use that to manifest profound change in their lives. Getting lost in imagination, creating in your mind the things you want to see, hear, do, be; whether they are works that have associated technique or not, (this is your imagination after all and no systems or techniques are required), is a powerful place to be. In that place, a place all of us knew the directions to when we were young, lies the current moment, and as close as we get to “reality”. Love and peace are only found in this moment, there is no past or future love and peace that is real, only the love and peace of the “now” is felt. This is why they condition imagination out of us and attempt to place it behind a wall of institutionally approved techniques.

This year I hope you are all able to shift your focus and avoid the depression of misremembered pasts and anxiety of speculative futures to find that “infinitesimal hairline” and spend some time there each day, whether in mindfulness or imagination. The more time you spend there, and one of the reasons you were encouraged not to, the more likely you are to find that other “knowing as a feeling” that lingers around in the inner quiet creative moments of the here and now, what Charles Bukowski knew and felt when writing The Laughing Heart, and what I will share as my “rehashed wisdom” and wish for you in this New Year:

The Laughing Heart

your life is your life

don’t let it be clubbed into dank submission.

be on the watch.

there are ways out.

there is a light somewhere.

it may not be much light but

it beats the darkness.

be on the watch.

the gods will offer you chances.

know them.

take them.

you can’t beat death but

you can beat death in life, sometimes.

and the more often you learn to do it,

the more light there will be.

your life is your life.

know it while you have it.

you are marvelous

the gods wait to delight

in you.

Charles Bukowski – The Laughing Heart

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Guest Bloggers, Steve Johnson

Encouraging Lifelong Learning in Your Company

Guest writer Steve Johnson contributes to this week’s installment on Lifelong Learning with his blog post, “Encouraging Lifelong Learning in Your Company.”

In my last article, I said to readers, “As a final note, make continuous learning intentional and give it high priority. Continuous learning is your responsibility, not the responsibility of your company, your supervisor or anyone else. To be able to effectively manage your career, you need to plan your future, that is, identify your goals and chart your path for reaching those goals. An important part of that path is going to be continuous learning. Plan your educational future now. In doing that, we encourage you to explore educational opportunities at Learning Without Scars for high quality industry- and position-specific education.”

Given the above, the smart company will still encourage and enable lifelong learning, as it’s in their best interests as well. Another quote from my last article, “At some point in the future, you could find out that management no longer feels you are relevant to attaining the company’s goals. You could find out that the job market feels the same about your resume.” One can say essentially the same thing about a company. At some point in the future, you could find out that your customers and suppliers no longer feel you are relevant to their futures. Investments in employee lifelong learning are investments in your company’s relevance, efficiency and productivity. They are crucial in meeting your customers’ needs, leading to higher customer satisfaction and retention. They are also crucial to employee satisfaction and retention. Your investment in employees is a clear demonstration of how you value them.

Enabling lifelong learning in your company should be a part of your employee development program. If you don’t have such a program, you should invest in one. As has been said before, “What about the costs?” The usual and correct answer to that is what are the costs of not investing in employee development? Don’t know where to start? Here are some ideas.

Commit to lifelong learning as essential to your company’s ongoing success. For example, one company I worked for started by committing to a minimum of 80 hours each year of continuous education for each employee. Select a qualified employee and assign management of and accountability for the plan. Determine where you are now as a company and where you want to be in a year; and in 2 years or 3 years. The company plan must include specific actions, completion times and results expected. Establish a budget for continuous learning and the systems to support the plan. A company lifelong learning plan will require a system to archive records of educational achievements, support company award programs, facilitate human resource planning and develop individual future educational plans.
Employee participation is required for their own success, as well as the company’s success. For each employee, define specific learning activities, due dates, results expected. Incorporate short-term and longer-term measurable learning goals into the performance review process. Involve employees in the development of their learning plan; find out where they are and where they see themselves in the future. Make the connection as to how their learning plan relates to their own personal goals. Show employees where there is alignment with their learning plan and both their personal and company success. It is important for the learning plan to be formally agreed upon initially by both the employee and the supervisor or company’s training representative.
Link learning outcomes to job qualifications and promotion opportunities; answer the employees’ question, “How can I get there?” Employees need to have a stake in their company as to their possibilities for personal and professional growth. Job design needs to show learning and knowledge requirements in terms of the steps involved in available career paths. This includes various types of organizational knowledge: company policies, financial, supervisory, managerial, human resources, federal and state laws and more. It can also include such things as technical knowledge, computer skills, accounting and financial skills, telephone skills, sales, customer service, group dynamics, and project management.
In reference to the above items, immediate supervisors have a substantial stake in employee learning and development. Their success depends on their employees’ performance. Schedule regular supervisor-employee discussions for review of the individual learning plans in a non-threatening environment. Congratulate employees on their successes and deal with unacceptable results in an encouraging way. Discuss what employees see as obstacles to company expectations and how they can be overcome. Still, employees need to know what the company expectations are and that those expectations need to be met.
Incorporate different types of learning styles into employee education based on what is most effective for each individual. People learn in different ways such as visual/spatial, auditory/aural, or kinesthetic/physical. As much as possible, tailor learning experiences to the individuals being taught. For example, I’m no car mechanic, but for such subjects, I can learn and then demonstrate my competencies much better in a “hands-on” learning environment. For public speaking, I needed a fair number of live experiences to be comfortable and effective. For me, negotiation skills required both book learning and role playing.
It can be highly frustrating for employees who are sent for education in areas where they are already competent. Where you can, offer opportunities for “testing out” or demonstrating such skills and knowledge. You may also, however, run into situations where someone thinks much more highly of their competencies than is reality. “Testing out” can reveal the true situation to that employee. For some things where answers are “absolute” or factual, a written test may be most applicable. For other situations that are more situational or “gray,” discussions of performance in real business situations with a company supervisor or mentor may be more suitable.
Companies need to be able to recommend vetted and approved learning resources for employees to help “show them how to get there,” as mentioned in item 3 above. The company also needs to help connect employees with these resources based on their needs. Develop a library of books and periodicals that reflect best practices in various disciplines like accounting, finance, management, business law and others. The library can include manuals for common business software used. Materials that can support development of skills in project management, team building and the so-called soft skills should not be ignored. Include company hosted opportunities for group sharing and learning. For example, a company may want to bring in an outside provider where all employees participate in team building education.
Develop and vet a list of outside learning resources that employees can request from company management. These include technical courses, computer software, management training and many other areas where further education can benefit the company. With management approval, this can include tuition reimbursement for programs that provide skills and knowledge relevant to current or future job qualifications. Many companies also reimburse tuition for courses related to attainment of a certificate or college degree. If your worried on your ROI for such education, full reimbursement can be tied to an employee commitment to stay with the employer for a stated period of time.

Rule number one for such lifelong learning programs is that you have to get started at some point. I encourage you to start by doing something now. At least formulate a basic plan. Give your plan the time needed to achieve expected results. Your plan will evolve as you determine what things work best in your company and the benefits become more and more apparent. We encourage you to explore educational opportunities at Learning Without Scars for high quality industry- and position-specific education for inclusion in your lifelong learning plans.