Incident Commander

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Incident Commander

Our new guest writer David Jensen is the owner/owner/principal consultant of Johnny Creek Consulting LLC located in New Mexico, USA.   Experience includes, 20 years a consultant of Personalysis Corporation; an executive consulting firm. A senior level consultant having attained a Vice President title with the company. He has worked with multiple Fortune 100 companies in various consulting capacities and on a wide range of projects. In his role as a consultant, Jensen works with all levels of teams and individuals, including CEOs of several major organizations. He shares this experience with readers tonight in his first blog for Learning Without Scars: Incident Commander.
Prior to joining Personalysis Corporation, He worked for the US Forest Service and then joined the US Department of Labor where he was a bureau chief responsible for organizational analysis. He next served as a consultant to Martin-Marietta and then moved to Sara Lee Corporation where he was the Director of Employee Relations for the company for over 10 years.
David has taught at both Idaho State University and Boise State University. 
Jensen is a graduate of Idaho State University where he holds both an undergraduate and master’s degree in psychology. His emphasis of study was organizational psychology with his master’s thesis being Proxemic, The Importance of Personal Space.
David has been a featured speaker at national conventions and seminars. His ideas on leadership, teamwork and organizational effectiveness have been well received by diverse audiences.

“ASSUMING Incident Commander (IC)”
Observations from Rural New Mexico

The dispatcher states your assigned call number and asks if you will be “assuming IC.” If the answer is yes; you are thrust into the role of the leader. You now move from the role of a volunteer firefighter to Incident Commander (IC). The moment will challenge what you think you know about leadership. It is now without question, trial by fire. There is no room for half-hearted commitment. So how does a fulltime cowboy step off their horse and step into the driver seat of the command truck. What do they need to know? How is that knowledge different from a president who is responsible for multi-national private enterprise? As it turns out, not so different. Leading a successful business requires the same basic knowledge and skill that a well trained and experienced Incident Commander brings to the fire line. 

Fire training requires that an Incident Commander master five fundamental leadership activities: 

  • Command 
  • Operations
  • Planning
  • Logistics 
  • Finance. 

1.  Command

When you accept the position of President of the company or Incident Commander, you are accountable for the enterprise outcomes. That does not mean that all decision making is retained at the President or Incident Commander level. A notable exception is safety. Safe practices must be always priority number one of any leader. An Incident Commander trained to delegate appropriate authority and decision making to all levels of the fire line down to the individual volunteer firefighter. A hallmark of any successful enterprise is that the individual in command insures employees are engaged and their efforts are recognized. Incident Commanders trained seek opportunities to enhance self-esteem through praise and to empathize with volunteers doing what is often a thankless job. 

2.  Operations 

The key to successful fire line operations is clear effective in-person and radio communication with the line bosses. The communications provide realistic and measurable goals for the operation and define how it is to be executed. Line bosses feedback progress against the objectives until you achieve fire containment. Successful operations within any organization are based on a system of metrics and management feedback. It is the President or Incident Commander responsibility to ensure that this operational feedback loop exists. It is the responsibility of all participants to contribute to the feedback. Every volunteer firefighter understands that it is their responsibility to question communications when they are unclear or unsafe. 

3.  Planning 

An Incident Commander train to develop incident action plans and to conduct an after-action review that can lead to improved outcomes. On an active fire line, the objectives will be influenced by a number of factors such as weather, terrain and type of vegetation which are beyond control of the IC. It is President or Incident Commanders responsibility to insure that tactical and strategic plans developed and revised in response to changing external conditions. Learning from experience and not repeating a costly error is key to any successful enterprise. 

4.  Logistics 

On a fire line the availability of resources on the ground and in the air will determine how the effort will accomplish the operational goals and objectives. It is the President or Incident Commander knowledge of available resources and how they might best deploy that will contribute to the success of the action plans that drives operational success. Fire containment will not move at pace without linking logistics, planning and operations together. In business, it is the President commitment that ensures that shop floor knowledge connects logistics, planning and operations. 

5.  Finance

The leader of an enterprise must be accountable to a stakeholder. The stakeholder may be an owner, a shareholder, or a taxpayer. Whatever form, an assessment of cost and risk is essential. On a fire line all assets are not equal. Decisions must made based on what is at risk. Structure protection is far greater value than grassland. In a business, the President must direct capital towards what offers the best return on investment. Leading a complicated and successful business is an ongoing incident without the fire and the heat! If you are on fire line of a major incident or in the hot seat of a major multi-national private enterprise, to have mastered the five fundamental leadership activities can put you on path to success.

David Jensen MS
Johnny Creek Consulting LLC (Principle)
HR/ Executive Coach
Part-Time cattle rancher
Full time volunteer firefighter

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You Only Have One Flashlight

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You Only Have One Flashlight

Guest writer Sonya Law shares the importance of honing your focus and discovering your purpose. You only have one flashlight, and you need to be particular about where you shine that light!

What you FOCUS on grows.

When we focus on PURPOSEFUL work that we feel connected to it’s POWERFUL.

“Find clarity on what is your passion, focus on what gives you joy, it will bring you closer to your purpose, then align your life and work with it…” Sonya Law

Driven employees take ownership!

We know that feeling when we can’t wait to get out of bed and get working, we are energized by our work-day not the other way around. Commonly though most employees are out of step with what they enjoy.  

We have all been asked to do things in our job that we don’t agree with but because of our position and responsibility we carry out the task.  In Human Resources this is very common particularly in restructuring and redundancy situations.  Tasks that leave us questioning why we do the work we do? Creates a feeling of emotional dissonance and we feel burnt out, broken and overwhelmed instead.

This isn’t always the case, when we carry out these tasks with humility, care and professionalism we create trust, respect and genuine connection with employees.

Why is this important? Because as leaders we spend a lot of time and money directing, delegating and managing the performance of others and what we need is driven employees to take ownership.

This is a journey of focusing on work that gives us joy and aligning ourselves with it! 

Happy employees are fulfilled employees!

When we align our life with work that we enjoy we experience fulfillment. Our purpose is a cross section of work that we are good at and that we enjoy.  As an activity we can reflect on our career to gain clarity on what work we enjoy.  

This inquiry asks 3 questions:

  1. What do you want for self, family and the world (greater good)?
  2. What is the problem you are trying to solve in society?
  3. What do you CARE about?

Over the last 30 years I have talked with thousands of people about their career and they talk a lot about not feeling connected to their work and wanting something that makes them feel fulfilled and part of something bigger than themselves.

Because as we know from Maslow’s Hierarchy of needs, once we have satisfied our desire for food, shelter and love, we want to experience self-actualization, to live our best lives and work is a big part of our life!
Leader as Coach – what is their role!

As leaders, we lean into the role of leader as coach and engage with our people in new ways.

When, we are given the privilege of a position in leadership it is a great responsibility, our IMPACT has a ripple effect.  

As leaders we need to:

  1. BE clear on our PURPOSE
  2. ENABLE others to find theirs
  3. CONNECT people with work that is engaging and empowering.

What are the attributes of a leader as coach?

  1. Lean in, listen and learn – BE curious
  2. Understand – BE empathetic
  3. Connect and build relationships with their people – BE RELATIONAL.

Purpose is number one in the TALENT game!

Best Practice in Employee Value Proposition (EVP) in human resources and staffing is connecting people with their purpose.  Organizations who focus on the following will retain and attract and develop top talent.

  •  Purpose – to engage employees in work that is purposeful that they enjoy.
  • Autonomy – trust employees to decide when, where and how work gets done.
  • Cultural alignment – provide a sense of belonging, they feel they have found their tribe.
  • Psychological safety – understand people want to maintain emotional well-being and positive mental health.
  • Connection and Community – want time with family, partners, pet’s and be connected to the community in which they live. 

Purpose focuses us on what we are good at and what we enjoy! 

Purpose is a cross section of both what we are good at and what we enjoy.  So how do we know when we are connected with our purpose at work?

  1. Our values are ALIGNED
  2. Our work makes a DIFFERENCE
  3. It doesn’t feel like work, more like FLOW or PLAY
  4. We SHOW up as ourselves
  5. We have increased ENERGY and vibrancy
  6. We deliver VALUE to our stakeholders, employees and customers
  7. We DO life, it does not DO us!

“We only have one flashlight and when we focus on PUPOSEFUL work that we feel connected to its POWERFUL”.

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AgilitiONE

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AgilitiONE

Alex Weaver’s career in the industry spans several decades. His initial job in the industry was with an independent used equipment – used parts company, White Tractor Parts in Blue Springs, MO. After several years of ground floor, learning the business, including how to chain a tractor to a trailer, he went to work as Assistant Used Equipment Manager for The Whayne Supply Company, Caterpillar dealer for Kentucky, in Louisville, KY.  Later, promoted to Eastern Region Sales Manager. In 1979 he went to work for Crane and Tractor of Dallas, another independent used equipment, used parts dealer. 

In 1988 He relocated to Charlotte, NC to work for the Caterpillar Dealer, Carolina Tractor.  Initially holding the position of Product Support Sales Manager, later serving as General Parts Manager and VP of Heavy Equipment Sales. In 2002 Alex began work with Caterpillar, Inc, and relocated to Peoria, IL. Here he served as Sales Manager for the Eastern Region of Caterpillar’s Redistribution Company, CRSI, Inc, moving to the Reman Group, and later to the Caterpillar Used Equipment Sales, Inc before retiring in 2014. 

With over 40 years of experience in the industry. As a retirement project, Alex and a partner created the concept for agilitiONE, including manually researching every company listed in our search engine/database. The great influencer working with all these companies, in various positions and segments, were the customers. The customers shared what they did, how they did it and how as a supplier you could help them do it. A great education in market wants and needs.

Imagine all Your Information Needs at Your Fingertips

Have you ever wondered why?  Why there is no single source that lists all suppliers to the construction equipment industry?  There will be soon.  A fast, easy to use industry- specific search engine, or directory.  Search for providers of new / used / and rental equipment.  Search for providers of parts and attachments.  Plus, service – providers, such as insurance, heavy hauling, software, business services, marketing, and consulting.  Filter searches by brand, New, Used, condition, distribution source by brand, and zip code location.  Search all industry parts providers in North America. Would you believe there are over 13,000 such suppliers / providers in our database?

agilitiONE was created by a team of construction equipment businessmen.  Their background in the industry includes senior level management / leadership roles at both manufacturer and dealer organizations.  Through extensive work in the field with construction equipment customers, they’ve gained a strong appreciation for the contractors’ challenges and needs.  It is with this background that agilitiONE addresses those needs.

The agilitiONE website is the first true, industry-wide, product – wide, online platform / marketplace built solely for contractors to easily locate and purchase all job-related requirements.  At attractive prices.  All using a single IOS or Android app.   Machines, rentals, parts, and services.  Users of agilitiONE will find many new sources and viable options for all of their many needs.

agilitiONE is an online platform / marketplace where contractors and equipment owners will find multiple, new sources for the products, parts, and services they routinely buy, rent, and utilize.  At the same time, industry suppliers can expand their sales reach by attracting an ever-growing larger clientele.  And, manufacturers can further promote their brands, support their distribution, and collectively increase sales.  agilitiONE is unique; there’s nothing like it in the industry!

Why is an industry specific search engine important?  What is the benefit?  Easy.  You get your specific result faster and easier.  Have you noticed that with the existing search engines, your answer may be down in a search results page or pages down?  For instance, search for a turbocharger for a Volvo MTC85C skid steer loader.  If you search by zip code, or within 100 miles of your zip code, you may get results for turbochargers for Volvo automobiles or Volvo Trucks.  The search is interesting because Volvo is out of the skid steer business.  The MTC85C was built for Volvo by JCB.  The engine is Perkins, now owned by Caterpillar.  But all you want is an exchange, rebuilt turbo.  In agilitiONE a search for “turbocharger” returned 23 providers.  Only 23 results, not thousands of non-search related results, that don’t apply to your search.  A search on Google, also using “turbocharger”, turned up 64,000,000 results.  Because our search engine is industry specific, our database only contains providers for construction equipment or related rebuilders.

How do you find all of the providers of Safety Equipment, that focus on the Construction Industry?  A search of agilitiONE returned 109 providers that can be filtered by zip code.

Again, Google returned millions of providers.  Our goal is “fast and easy” access to information.

In today’s work world, small contractors are accepting work further from their home base.  Home base is comfortable.  Providers are known.  But contractors are also bidding more work further from home base.  If there is a minor breakdown, how do you find the nearest hydraulic repair shop?  Or if a contractor needs to rent a small excavator to finish a job.  What provider is close to the work?

We know and understand the challenges of daily operations.  agilitiONE will provide quick and easy information search related solutions for all contractors.

About Industry Services:  Categories – Aerial Information/Data – Asset Appraisal – Asset Inspection – Associations/Trade/Industry – Auction – Builders/Commercial – Business Services – Certification Agencies – Construction – Consultancies’ – Contractor – Engineering – Financial Services – Financing – Freight/Trucking/Delivery – Governmental Agency – Individual Consultants – Insurance – Land Survey – Logistics – Manufacturers’ Representative Firm – Marketing – Oil Analysis – Opinion Survey – Project Management – Publishers/Publications – Safety – Software – Training/Education – Warranty – Drone Services – 3-D Printing

Our search engine is currently under construction. But it is coming soon.  A lot of information in one portal. We hope you are curious. Will keep you posted on Start Up date.  Questions?  Email traction@agiliiti1.com.

Alex Weaver

Co-Founder / AgilitiONE

Alex Weaver’s career in the industry spans several decades.  Experience with Used Equipment / Used Parts Dealers, 2 – Caterpillar Dealers and Caterpillar.

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Adaptability

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Adaptability

Guest writer Alex Kraft tackles the importance of adaptability for all of us in our businesses, and our lives.

In order to Succeed you have to be Adaptable.

What do Nick Saban, Domino’s Pizza, and Ritchie Brothers Auctioneers have in common?  Adaptability.

Every equipment dealer everywhere has uttered the words, ‘because that’s the way we’ve always done it’. I’ve heard it a million times and I may have said it once or twice.  Adaptability is becoming a larger separator between the dominant players in an industry and the middle/lower tier companies.  I’ve always been impressed by market leaders that continually work to improve and adapt to changing market conditions even when they don’t have much incentive to.

As a huge sports fan, I’ve always enjoyed the parallels between sports and business.  Nick Saban is undoubtedly the most successful college football coach ever, having won seven national championships.  For those who don’t follow college football closely, they may view him as a hard ass, but to me his success stems from a willingness to adapt.  Saban’s early teams were the conservative type, focusing on suffocating defense and a run-first offensive approach that limited mistakes.  No one could argue with the approach as SEC titles and national titles piled up.  If there ever was a person who could rest on his laurels and point to the “this is the way we’ve always done it”, it was Nick Saban.  But what makes Coach Saban a legend is that he’s never satisfied and he’s constantly seeking improvement.  Even with his extraordinary success, he looked at the teams that beat Alabama and noticed similarities with their offensive schemes.  The rules had changed in the early 2010’s to lean more towards the offense, specifically the spread passing scheme.  Instead of being stubborn, Saban leaned into the new age offensive schemes and Alabama has become the most dangerous passing program in the country over the past 4-5 years (averaging almost 48 points per game!) with 11 1st round picks on offense since 2019.  Football fans have all seen the examples of the legendary coach in his last few years struggling to adjust to rule changes, differences in athletes from prior decades, and the overall style of the sport.  It creates this sad state where we all think to ourselves ‘the game has passed him by’.  I don’t ever see anyone suggesting that about Nick Saban because of his incredible ability to be open minded and adaptable.

Domino’s Pizza was near bankruptcy in 2008 as its share price dropped below $3 per share (today it’s >$400 per share!) and they were losing franchise locations.  This led to a few changes including the launch of some new products and a completely new pizza recipe.  Next, they launched a campaign with a promise to deliver pizzas in “30 minutes or less”.  When the competition just copied the program, Domino’s was searching for an edge.  The true catalyst that changed the entire company’s future was their ability to adjust to the smartphone revolution and embrace digital ordering. In 2011, then-CEO Patrick Doyle challenged the internal team to create tools to allow customers to order a pizza while waiting at a stoplight.  The average stoplight takes 17 seconds to turn green and Domino’s has 34 million different possible pizza combinations.  Impossible?  Quite the opposite.  Anyone who’s ordered a Domino’s pizza in the past 5 years can attest to the ease at the entire process from order to receipt.  It isn’t just about launching an ‘app’.  Domino’s was at the forefront of the “pizza tracker”, along with experimenting with autonomous delivery vehicles and electric bike deliveries in certain markets.  The Domino’s AnyWare program allows customers to order directly from consumer 3rd party ‘apps’, such as Slack, Google Home, Amazon Alexa, a text message, a Smart TV, or even a tweet!  Today, over 60% of their orders come from digital channels.  With such an intense focus on customer experience, Domino’s launched an ‘Innovation Garage’ to continually test and implement new ideas.  This culture has changed the entire perception of the company, to where they are more often characterized as a tech company than their standing as the world’s largest pizza company.

Ritchie Brothers Auctioneers is a great construction industry example of adaptability.  I just attended the big February sale in Orlando as I have every year since 2008.  The RB Auction has become a destination, a networking event for so many in the industry over the years.  One would think that a pandemic such as Covid-19, which brought ‘social distancing’ and outright travel restrictions would absolutely crush a company that holds in-person auctions, right?  Wrong.  Long before Covid-19 struck, Ritchie Brothers Auctioneers laid the foundation for online bidding at their in-person auctions. Ritchie introduced online bidding back in 2003, but it was their IronPlanet acquisition in 2017 that cemented their leadership position in selling equipment online.  I was surprised to learn that prior to Covid, Ritchie’s online sales exceeded their in-person sales.  Having been in this industry since 2004, I can’t imagine how much resistance RB must have had internally when the idea of selling used equipment online was posed.  Especially for a company that started in 1958 auctioning furniture at a rented hall.  It seems like a stroke of genius today with our current conditions, but those seeds were planted long before it was popular.

The 3 examples above are success stories.  Unfortunately, there are plenty of examples of the opposite, of rigid companies like Blockbuster movie rentals.  At its peak in the late 1990’s, Blockbuster had over 9,000 video-rental stores, employed over 84,000 people, and had 65 million customers.  The story is well known now that Netflix basically begged Blockbuster to buy their fledgling operation in early 2000 for only $50 million.  Blockbuster turned them down and today Netflix is worth $195 Billion, and Blockbuster is out of business.  This is the ironic part to me:  if I’m chasing a competitor, I’d want them to keep everything the same. Please don’t change.  Yet that seems to be the trap that most in the equipment industry have fallen into.  If you’re 3rd/4th/5th in market position and you’re not pursuing new ways to do business, what do you think happens next?  No one just falls into a better market position by staying the same.  Learn to adapt or you may just be holding a position for someone else to come and grab on their way up.

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Embracing Automation

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Embracing Automation

Tonight, guest writer Jennifer Albright shares with readers the ways in which our “new normal” can bring about some positive change with embracing automation.

Embracing Automation in a Post-Pandemic Dealer World: Creating a Smoother Tech Implementation Experience.

As much as I think we are all tired of hearing phrases like “unprecedented times”, “pivot”, and worst of all, the dreaded “new normal”, the past 2 years have put a spotlight on how critical technology and adaptability are in the dealer world. Equipment dealers are as much about relationships as they are about selling and servicing equipment, so the idea of introducing a lot of technology may at first seem counterintuitive. But regardless of whether it’s the result of folks working from home during the pandemic or customers becoming more tech-savvy in general, we’ve reached the point where it isn’t as much of a choice as it is an inevitability. When done right, software streamlines back-end processes which can free up capital and reduce or refocus headcount, reduce opportunities for fraud, and can improve the customer experience making it easier to do business with you, thereby strengthening your relationships with your customers. A real win-win.

In my experience, dealers have often avoided implementing new technology…it’s time consuming, it’s disruptive, it can be expensive, and for many, change can be scary. However, the cost of not embracing technology at this point is exponentially more than the cost of the software itself. Yes, of course it’s time consuming and disruptive even under the best of circumstances, but there are many steps that can be taken in order to make it a better experience for all involved.

The Problem is a simple question…. Where to begin?

First, define what you’re trying to accomplish. You can opt to start small and automate a stand-alone process, or you can go all out and introduce or replace an ERP system. Regardless, you’re going to want to choose the right tech and the right partner for the job which starts with a formal RFP process. Use your selection criteria to create an RFP that can be sent to all participating suppliers, and create a scorecard by which your selection team will use to rate the responses.

The next step is one that is often overlooked, but is absolutely critical. Map your current processes and define where you want to be through the use of the new technology. By skipping this step, many dealers wind up simply forcing bad processes into the new system which is a recipe for failure. This exercise provides the GPS coordinates for where you are and where you want to be.

Involve your key stakeholders – don’t let system selection happen in a vacuum, seek input from the folks who are actually doing the tasks in question to shape your selection criteria. Far too often I see dealers excited by a slick sales pitch or demo and make decisions without comparing apples to apples, involving the right people or asking the right questions, which can of course cause issues when it comes to actually living with the new tech that they’ve bought. Technology shouldn’t be an impulse buy, but rather a business decision that has been reached through a thorough and structured approach. The preparation takes longer but it is well worth the time spent.

Once you’ve gathered the right people and created your RFP and decision criteria, reach out to the suppliers you wish to include in the bid process with your RFP documentation. Establish a single point of contact internally so that all suppliers are receiving the same information. Allow each supplier the same access to your team in the form of a demo and Q&A, and review their product using the scorecard that you’ve created. Taking this type of structured approach allows you to come to a decision based on facts and data as opposed to emotion.

Pro tip – be sure to also review the suppliers’ contracts prior to making a final decision. This way you don’t award the business to someone only to find that their terms and conditions won’t work for you.

Once you’ve decided on a tool and signed all of the paperwork, the hard work begins – or the fun, depending on how you look at it. Having an internal project manager is critical, as this person will herd all of the cats, ensure that everything is handled on time, and keep the project within budget. I’m often asked why the dealer needs a project manager when the software provider assigns one to the implementation. The thing is, those folks typically know their product but they can’t know your business like you do. This is where the input from your stakeholders is especially important, as they’ll be able to ask the right questions to ensure that the software is configured to meet your needs as a dealership.

Another critical aspect of the project that can’t be ignored is testing. Test every common scenario that your folks would face when using the software that you can think of. Don’t assume that everything will work the first time – the purpose of testing software is to try to break it. The more you can do to ensure that everything works prior to go-live, the less frustration your people will feel when trying to adapt to using it.

Last, but certainly not least, overcommunicate. Communicate early and often. Talk with your people about the purpose of the new tech and listen to their concerns. Reinforce what efficiencies they’ll gain, learn what frustrations they might feel, and listen. Given the long tenure of so many dealer employees, change can be challenging. While everyone can’t always have a say, most people just want to be heard. When people feel heard, they tend to be more accepting of change even if it isn’t what they wanted. Train, and provide ongoing training opportunities to ensure that folks are using the new technology correctly – and that new employees are learning to use it correctly versus falling victim to the telephone game.

New technology can open up a whole new world of efficiency and opportunity for dealers. There are so many tools created specifically for our industry, it’s pretty exciting to see how many companies are dedicated to our success. While it may not be a quick process, taking the time to define your needs and processes, assemble the right team, assign the right resources, test, and communicate will make your next implementation a smoother one.

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Customers Value Their Time

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Customers Value Their Time

Guest writer Alex Kraft talks about the importance of time, and how much your customers value theirs, as he continues to explore the ways in which technology has shifted our sales.

“No one will buy a $250,000 machine online”!  “But this is a relationship business!”  I’ve heard those 2 comments repeatedly.  First, Ritchie Brothers and Bidadoo have sold Billions (with a ‘B’) of equipment online, as-is where is. The crowd that clings to those two statements are missing the greater point:  the shift towards online transactions is due to customers placing more value on their time than ever before.  Why fly to an auction site when I can bid or buy the machine online without any interruption on my daily routine?  I was reminded of this the other day when I was speaking with a construction contractor who owns his company.  His insight is incredibly relevant since he started his career as an equipment salesperson and therefore knows both sides of the supplier/consumer dynamic personally. When we were discussing the growing influence of technology in the equipment industry, he mentioned to me: 

“As a salesperson I was trained to call on customers in person every day. Now that I’m on the other side, I’m always squeezed for time.  We’re trying to grow our business.  I’m out trying to land jobs for our people.  I don’t have time to meet sales reps for a beer or go to dinner. It’s nothing personal… If I’m not in the office or on one of our jobsites, I want to be with my family.”.

This is a common refrain.  It can be difficult to look at something through another person’s eyes, especially when it impacts you.  But think about your customers and how many different vendors are trying to build that same relationship.  For example, there are OEM dealers, independent dealers, rental houses, and service providers (auction companies, tire vendors, freight companies) all competing for that customer’s attention.  My contractor friend told me that he is called on by 30+ different vendors in a normal month.  This was incredibly eye opening for me, because I just assumed that it was just our dealership and our two biggest competitors that were calling on my friend.  

There are positive and negative aspects of technology and its effects on our culture.  I am amazed to see how many people will order a Starbucks coffee online to avoid the possibility of a five-minute wait.  One could argue technology has made us impatient and has created some real first world problems.  But there’s clearly a disconnect between construction customers and their vendors with how they want to interact.  Customers are working on jobsites coordinating and managing large teams against tight timelines and budgets.  Yet, equipment dealers encourage and push their sales teams to continue showing up unannounced on jobsites or offices with no real agenda other than ‘do you need anything?’  How is this productive and still part of the daily routine in 2022?  

I’m not suggesting that customers don’t want salespeople to exist.  The difference is customers want dealer salespeople when they want/need them.  This is the definition of the ‘on-demand’ economy. It’s possible to build relationships with people while relying more on digital experiences to communicate.  If dealers embraced these tools, their sales teams could be more prepared to serve their customers.  Every interaction could provide value thereby strengthening the relationship instead of wasting each other’s time.  Smart business is about listening to customers, and those that ignore this reality will probably create openings for their competitors that didn’t exist before.

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The New Plague: Vacant Jobs

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The New Plague: Vacant Jobs

In tonight’s blog post, guest writer Edward Gordon shares the new plague taking hold in our economy: vacant jobs.

“Hiring Now” signs are sprouting across the United States. Businesses can’t fill the tidal wave of empty positions. Many are not new jobs but replacements for the unprecedented number of 79 million baby boomers retiring by 2030. The largest number reach age 65 in 2022. This will be a terrible year for recruiters.

As COVID-19 restrictions have eased, job openings have soared. Since October 2021, the number of vacant jobs reported in the U.S. Bureau of Labor Statistic’s monthly JOLTS report has remained at about 11 million. The latest report shows that jobs openings are high in many key industry sectors including:

  1. Construction                                                   380,000
  2. Manufacturing                                                855,000
  3. Transportation, Warehousing & Utilities        479,000
  4. Professional & Business Services                   2,065,000
  5. Education & Health Services                          2,129,000
  6. Retail Trade                                                     1,046,000
  7. Accommodation & Food Services                  1,497,000
  8. State & Local Government                             567, 000

However, many businesses for proprietary reasons or because of repeated failure to find qualified candidates, do not report their job openings. As a result, we estimate the current number of vacant jobs at between 12 to 13 million vacant positions.

People are reentering the workforce, but many lack essential educational qualifications or specific job skills.  Too many Americans graduate from high school or even college without “learning how to learn” or failing to attain the math or literacy levels needed for employment in today’s in-demand career areas. Meanwhile technological advances across all industry sectors demand continuous education and training updates.

After assessing the current job situation, a Wall Street Journal analyst predicts, “If employment keeps growing like it has, by this summer the jobs market will either be extraordinarily tight, or excruciatingly so.” (March 5-6, 2022)

There is some evidence that American businesses have finally begun to increase their investments in worker training and education. But to produce more educated and skilled workers, systemic change is needed. If regional efforts do not grow appreciatively over the remaining decade, job vacancies will rise substantially. Our current analysis predicts that by 2030 there will be over 95 million empty positions globally with up to 30 million U.S. vacant jobs. The resulting economic and social upheaval will have dire consequences overseas and across America.

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Loyal Staff: Does Corporate Training Really Work Well for Uplifting Employees’ Skills and Boosting Loyalty?

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Loyal Staff: Does Corporate Training Really Work Well for Uplifting Employees’ Skills and Boosting Loyalty?

We are pleased to introduce another new guest writer here at Learning Without Scars. Natallia Dmitrenko is a content specialist at Grinfer with a focus on content management and blog promotion. She gained experience studying at the University of Nebraska taking graduate-level classes and working for a number of companies based in the US and in Minsk, Belarus. Tonight, she writes about loyal staff, and asks the question that many of our clients have asked: does corporate training really work well for uplifting employees’ skills and boosting loyalty?

What is one of the most expensive mistakes managerial staff makes? The answer is: unsuccessful hires. Indeed, statistics indicate that a wrong hire can cost three to five times the compensation of the candidate.  On the other hand, according to Go2HR (one of the most trusted sources on HR): “40% of employees who receive poor job training leave their positions within the first year.” Lack of loyalty among employees?

So, how to stave people off from leaving in the first year of hire? No wonder why HRs spend a big chunk of time figuring out best ways of improving training programs for staff. In fact, an engaging corporate L&D training program can become an effective solution for boosting retention and reaching business goals.

Today, L&D online training programs have become a dynamic and almost inseparable part of any business venture. In 2022, almost 50% of L&D professionals confirmed that those employees who were engaged in corporate training were highly engaged in overall corporate processes as well. Hence, being aware of all the popular/efficient trends in the world of L&D is essential for the effective management of staff. Well, especially in the current COVID-19 realities.

Indeed, there are two types of L&D training that exist today: on-the-job training and online training. If the question arises what kind of training to give, this depends upon a multiple of factors: overall productivity and work experience of employees, particular types of hurdles faced at work, the recent work performance, etc. However, the rising tension caused by the never-ending COVID-19 epidemic is forcing companies to pay more attention to L&D training offered via the Internet. Many have already admitted that it really works!

New “work from home” practices prove that if companies engage employees into online training programs, they won’t bet on the wrong horse. Some of the main positive impacts of taking classes on e-learning platforms are:

  • E-learning boosts cooperation by enhancing such soft skills as leadership and communication. As employees work and interact in these training sessions, which helps to build stronger interpersonal soft skills, reliance, and support which ultimately leads to better cooperation.
  • The main advantage of e-learning is in its ability to convert staff into a skilled workforce while providing instant access to learning resources. And then the upskilled workforce can turn complex scenes to opportunities in more effective client-centric ways.
  • Effective online programs open more opportunities to employees to apply new skills in response to potential job challenges.
  • Less supervision required if the employees are trained well. If employees’ liability is amplified resulting from the effective online training program, more man hours can be put to good use. Plus, staff will be more worked up to take on challenging tasks at hand in the future.
  • An effective corporate training program delivered online instills values of learning, evokes creativity in staff, improves decision making skills, breaks the ice and contributes to interacting more openly. Hence, an increased self-esteem motivates employees to work better and develop a stronger sense of loyalty to a place of employment. And that’s just like having a healthy fruit in the diet – the bigger employees’ loyalty, the more companies benefit from the positive corporate culture.

Of course, corporate training programs vary depending on the company. For example, a company that lays concrete for warehouses odds are will probably need a different training program compared to a tech software company.  Still, engaging workers in online training builds a progressive company’s image, foster loyalty, and boost retention rates. Plus, a good online training program also makes any company look more progressive therefore, more attractive to new recruits.

Obviously, staff upskilling through e-learning helps employees understand their jobs and company’s policies better. Proper training contributes to higher retention rates, greater job satisfaction and, as a result, increases loyalty of staff. People feel like they work in an inclusive atmosphere where everyone feels like they can contribute. And this is a part of the retention secret sauce.

Job satisfaction is a necessary ingredient for efficient and enthusiastic job behavior of staff. And that’s the case when a proper corporate training really adds to that dish and brings the whole meal together.

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Maximizing Profits Through Spend Management

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Maximizing Profits Through Spend Management

Tonight, we are pleased to introduce our readers to our new guest writer, Jennifer Albright. In her first post, Jennifer educates readers on maximizing profits through spend management. But first, allow us to introduce Jennifer Albright in her own words:

My start in Procurement began unexpectedly with a temporary position, evolving into a career spanning over 20 years and becoming a true passion. I’ve worked in industries ranging from manufacturing to high tech to heavy equipment including 11 years with a large heavy equipment dealer, all of which have reinforced the fact that best practices are truly universal and the biggest strength of any organization is its people.

I enjoy bringing value through the details – working with systems, analyzing data, reviewing contracts – but my true passion is people, building relationships and figuring out what motivates people in order to bring about positive organizational change and millions in cost savings.

Education

  • Certified Professional in Supply Management – Institute for Supply Management
  • Certified Purchasing Manager – Institute for Supply Management
  • Six Sigma Green Belt
  • EdM – Education – Boston University
  • B.A. – Psychology – Rutgers University

Many dealers have yet to embrace spend management as the strategic opportunity that it is; it’s only natural put the focus on sales since that’s the obvious profit generator. The thing is, there are two ways for any business to increase profits – sell more and spend less. I’m not knocking our sales friends, but the savings a dealer can experience through effective spend management can make all the difference in the world during an economic downturn, global pandemic, the off-season, or any time when sales are more of a challenge – and when times are good it can make profits even higher.

If we look at dealers through a spend lens, they typically fall into one of the 4 stages outlined below:

We’ve been fortunate to work with a number of dealers in Stages 4+, and many who are in Stages 2 and 3 who are typically surprised by the magnitude of opportunity within their dealerships. We often hear things like, “I care about selling iron, not what we spend on copy paper” – but it’s so much more significant than paper.

Okay, so how significant?

The Center for Advanced Procurement Strategy (CAPS) is a nonprofit research center at Arizona State University, dedicated to supply management research. They have done extensive research on savings opportunities to be gained through a “mature procurement organization” – meaning, a company who embraces best practices in procurement and spend management.

They were able to quantify addressable spend – meaning, the spend you have control over – as a percentage of gross sales. They went on to define the percentage of savings a company should be able to save through the use of best practices. My colleagues and I have taken their numbers for Industrial Manufacturing and refined them further to find more specifically how the CAPS findings apply to the heavy equipment distribution sector. Don’t hesitate to reach out if you’d like to learn more about this research, I’m happy to share as many nerdy details as you’re interested in hearing.

Bottom line – dealers who embrace spend management as a strategic business function can aim to save 1% of gross sales annually. The average dealer size in North America is approximately $75M – which means a potential savings opportunity of $750K. By focusing solely on sales, the average dealer is letting up to $750K slip through their fingers each year. And the bigger the dealer, the larger the opportunity.

At this point, if you’re in Stage 2 or 3 I hope you’re wondering where to start.

First stop – look at your spend. Who are you buying from? How does your category spend shake out – meaning, do you have 42 office supply vendors when 1 or 2 would do the job? The same goes for tools, furniture, shop supplies, tires, and nearly everything else you buy. Supplier consolidation means higher volume with your chosen suppliers, which leads to larger discounts and other perks with the suppliers you choose to work with, which leads to stronger relationships with those supplier partners. Then, when the next Big Thing happens (hopefully not a pandemic!) you’ll have key partners in place to support you.

Next, look at your processes – you’d be surprised by the cost of waste. As dealers grow and especially as they add new locations, it becomes easy for processes to splinter and to find that you have many ways of doing the same task and that most are likely not as efficient as they could be. Anything from how you process parts orders to how you pay your suppliers, the layout of your facility, closing work orders or processing warranty claims – if you haven’t stepped back and given your processes an objective look, now is the time.

Embrace technology – while this industry is built on relationships and handshakes, many of our customers are becoming more tech savvy. If the pandemic has taught us anything it’s that dealers need to follow suit if they haven’t already. There are so many incredible systems & tools designed specifically for the equipment industry that can save time, streamline processes, and ultimately save money – which means increased profits, and in many cases makes it easier for your customers to do business with you. If you haven’t gotten out there and looked lately, take a moment to see what’s available.

Last but most certainly not least, hire a procurement manager. It may sound excessive for a small dealer, but keep that 1% savings opportunity in mind. This person may initially need to wear multiple hats but an experienced professional will more than pay for themselves a lot faster than you might think.

It’s an exciting time to be part of the equipment industry. By embracing these types of opportunities to improve profitability, dealers can ensure that they will be able to weather whatever storms may come next.

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What Is the Role of the Sales Rep in the Digital Dealership?

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What is the role of the sales rep in the Digital Dealership?

In tonight’s blog, guest writer Mets Kramer defines and explains what exactly is the role of the sales rep in the Digital Dealership.

At this year’s AED Summit, I ended up in the same conversation several times.  It took one of two forms.  First, the question was raised, what is the role of the sales rep at dealerships in the future? The second, even more blunt, do sales reps still have a use?  If they do have a use, what is it?

Let’s start off by saying, absolutely, sales reps are still important and will likely remain important.

Yet, the fact that these questions are being asked suggests the role of the sales rep must change.  When I spoke to dealers, reps and even some customers, over the course of the event, it became clear that customers are changing.   Modern customers, typically next generation owners or their buyers, have no use for the coffee-bringing and unprepared rep that comes for a chat and to ask “do you need anything”.    Customers now have access to all the information they need about the equipment they are interested in.  From numerous websites, social media and videos a contractor can research to their heart’s content.  They find specifications, performance review, instructional videos and opinions.  They use this information to make their purchase decision, often without the need or involvement of a sales rep.  In a 2014 survey by the Acquity Group, only 12% of all respondents wanted to see a sales rep.  The rest wanted to do their research and get various forms of on demand support.  Imagine how much that has changed in 8 years and with Covid’s acceleration to digital.

When I was responsible for parts and service in Canada years ago, I loved getting invited by sales reps to meet their customers. When we arrived, conversation was always lively, with customers expressing their problems and concerns and we were able to discuss solutions.  Sometimes these meetings took several hours but there was always value.   I started to realize that customers were busy, knew their business and valued their time.  When the conversation was valuable customers were happy to receive us, if not, they had work to get back to.  It’s this question of value, the value we bring when we visit the customer that is changing the role of the sales rep.  Providing value gives us access to the customer’s time and allows us to build a relationship.

Years ago, sales reps were the ones with product training and access to specifications and brochures.  Their value derived from having access to information that customers didn’t have available.  As the internet has taken over a huge part of that role, the value of brochure bearing sales reps has dwindled.  The new opportunity is the role of Trusted Advisor.   This role can focus on different aspects of the customer’s business, but typically it’s based on providing customers with a more in-depth understanding of their equipment and fleet in the context of their business.   For the sales rep it’s a golden opportunity to develop a richer relationship with customers, by bringing more value to their customers, but with a new perspective.

For dealers and manufacturers this transition comes with several challenges.   The first is recognizing the change is happening and unavoidable.  Second it will require restructuring and retraining salespeople and finally dealers will have to become more knowledgeable about their customer’s business and put information in place to allow salespeople to bring new valuable insights to their customers.

This first challenge might be the hardest, it’s one caused by a generational and expectation gap between senior leaders at dealership and the age and expectations of the buyers and decision makers at their customers.   If dealers continue to believe their customers think and act the way they used to, they will make the mistake of continuing old sales models.  They risk continuing to provide sales teams with only modest product training and nothing of further value and they risk having customers who see no value in the sales rep or the dealership.

Once dealers and manufacturers wake up to the new reality of their customer’s expectations, the second challenge begins.  It starts with redefining the role of salespeople, it means recognizing the new and changing channels of communication customers prefer and identifying the areas of knowledge reps need to be trained in.  To some degree this will require sales teams with different backgrounds and skillsets.  They will have to be able to understand construction, contracting and fleet finance.  Dealers will have to invest in more training than in the past.

Finally, after recognizing the change, dealers, with the support of manufacturers, will need to create tools and information that exceeds the capabilities of their customers. These tools will need to be accessible to salespeople in real time, as customers are more informed and want to transact faster.  The information will have to give the sales rep and the customer new insights into fleet management, finance, and project or production costs.   Armed with this information the rep will continue to be a valuable resource for their customers.  They will continue to be welcome.

Once implemented, this new role for dealers and reps will provide even deeper relationships, not only based on friendship and personality, but on knowledge and understanding.  For those dealers that make this change soon it will be a source of competitive advantage and differentiation.  What’s clear is customers are making or have already made the change.  Their expectations are different, how they prefer to engage has changed more than dealers think.

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