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The Digital Dealership – Digital Data Triggers

The Digital Dealership – Digital Data Triggers

In tonight’s blog post, guest writer Mets Kramer brings us to the bright side of technology in the Digital Dealership – Digital Data Triggers.

One of the best things about computers is they do the boring tasks of wading through data.  It’s a concept that is generally well understood, yet too many dealers are not applying this capability.

For all the years I spent running departments at dealers, I was never a fan of reports.   Reports, to me, are long lists of printed out or on-screen data that I need to read through to determine if there are any actionable situations.  It’s time consuming, especially if done on a regular basis.  I’ve always preferred getting the reporting system to do the work for me.

I LOVE indicators, indicators are the action items you get from a long boring report.   Indicators are the result of analyzing the report data and determining what we should do.  A great example is a customer account balance statement, where we look for people over their credit limit or with aged invoices.   Rather than read the whole list, we often just print the over limit customers and hand them to a credit manager or sales rep to call the customer.

In the same way, the Digital Dealership uses its data, computers and an analyst to create actions from data.  These action items are pushed out through various methods to improve the business or support the customer.

There are 2 main types of actionable data.  First there are activity or event triggered actions and the second are analysis or derived actions.

Activity or event-based triggers are implemented often to follow up on past events.  Great examples are notification to the sales rep 30 days after a customer purchased a machine to schedule an initial service or follow up on performance. Similar triggers are post rental follow up, to find out how the customer’s rental experience was.    The Service department can do a similar follow up after a customer receives their maintenance inspection check list with quoted items found during the service.   If the customer declines them initially, the Digital Dealer follows up to make sure they got done, frequently gaining that work.

The second type of trigger is derived from data or rather the analysis of historic data.  These are often more complex and look for changes in the historic norm to determine if something has changed, which would require action.   This is something we all do in the parts business, for example.  As sales of a part drop off, we analyze the data and, if the part is used on an old model, we determine the need to stock less of them.

Triggers based on data trend analysis often let us get ahead of a problem.   Think of a customer who normally purchases every 6 weeks but has shown no activity in the past 8.   The Sales Rep should be able to connect with that customer and find out why.   What about a customer who was spending $100K per year on service labor, but in the past 6 months it’s been $25K?  In these cases, it’s likely important to understand what’s happening.

Triggers, from analyzing data history or events and put in front of the right person, lead to action.  These action triggers can be as simple as an email notification, or, preferably these triggers are listed as exceptions on a digital platform such as your CRM.  In a CRM the indicator can easily lead to a page listing the customer’s contact information or even instantly connect the call.  Once the call is done an activity is created capturing the story from the customer, and possibly generating a new sales lead.

One of my favorite indicators in Vizybility is “Customer that need follow up”.  Set a contact frequency for an existing or target customer, and the CRM reminds you to call on that interval.  These are great to avoid missing sales for a low volume customer.

In all of these scenario’s computers do what they do best, track and analyze data.   Analysts learn from the data and, in conjunction with a manager, create triggers when certain scenarios are seen.  These actionable decisions, or triggers, are fed to people in the operations through CRM or other systems to support customers, avoid problem.

Next time you’re reading through a long report list and deciding what to do, think about how you could create automatic triggers in your Digital Dealership.

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It’s Lonely, and I’m My Worst Enemy!

It’s Lonely, and I’m My Worst Enemy!

In tonight’s blog, guest writer Bruce Baker shares with us about the destructive mindsets that can lead many small businesses to fail. We hope you find a valuable resource in “It’s Lonely, and I’m My Worst Enemy.”

We only start living when we stop defending ourselves.

There is never a day I don’t hear someone expressing the dire consequences they face if or when they fail.  In a previous article, I explored the unhealthy mode many of us business owners and leaders are in – the mode that almost anything these days is a catastrophe if it is not solved within a few minutes or, G-d forbid by the end of the day!

This destructive mindset is why most small businesses fail, not because of the lack of tools and resources but due to being trapped by their self-destructive thoughts. Never has there been a time I have either helped a business owner scale up, start up or fix up their business because of the tools and solutions I worked with them on. It was first because of a reshaping of their mindset that brought them sustainable success.

Although the above is just one of many destructive behaviours, what amplifies them is attempting to resolve their challenges in isolation. If an individual has a challenge to solve, the intellectual part of the solution is simple for the most part. Still, the emotional component is where complexity rears its ugly head.  We all can identify where we were trying to solve a problem, only to be paralyzed by decision fatigue or simply indecision. Some of the regular comments I hear from business owners are:

  • I know what needs to be done but have to think about it a bit more.
  • I know it’s the right thing to do, but I am worried about….
  • I need to look at a few more options before I make my decision.
  • Oh well, another day, just a different pile….

The last statement is of particular importance because this is the one, I hear when business owners have finally shut themselves down to those around them.  The challenges are not isolated to business concerns but a mix of business and personal/family-related issues. We are taught not to mix business with personal life or to ensure a “work-life balance.” Let’s not fool ourselves. As business owners, these two entities, for many if not most, are interlinked and to try and fully separate these two emotionally is almost impossible. The consequences are catastrophic, not only in terms of business failure but losing what is most dear to us personally. The challenge now becomes insurmountable, and everything seems to be crumbling around us until we change one thing.

Being open to identifying and engaging with a like-minded individual or group to rely upon is by far one of the most powerful solutions any business owner has in their arsenal. The need to be in control is a critical foundation of our success and to be in control means we need to be connected and being connected makes us comfortable. Being comfortable allows us to share the strong emotions and stories we must tell. The power is not just in what we tell but the realization that we are not alone and many if not all have experienced the same emotions and the challenges they bring to their businesses.  The big difference is that many have resolved these challenges and have become successful in all spectrums of their lives, including building outstanding companies!

Most challenged business owner I engage with initially resists this notion when I first suggest it. Some say it sounds like a therapy session, others say it sounds like they are attending an “Alcohol Anonymous’ group session.  “How on earth are you going to help me grow my business by fixing my emotions?” said one business owner to me.   His reaction was simply self-preservation, the need for self-reliance and ensuring others to know “we have it under control”. Plainly put, the resistance for many comes from the downright feeling of embarrassment. The embarrassment comes from thinking others may consider you incapable or questioning your ability to build and run a business or telling others that you are not someone to do business with.

All this false talk prevents us from taking advantage of this powerful opportunity that we all have available to us! The more we remain in this state the more we isolate and rely on the “emotional mess” that’s we’ve created for ourselves.

I have and continue to have the privilege of working with business owners individually and in groups where we work through their challenges, both professionally and personally.  This hybrid solution consistently creates business success because challenges are solved and built upon successfully, not just because of introducing new systems and solutions in their businesses but also overall life solutions that are the primary driver of success in building a business.

Consider how much hardship you cause yourself and the great need you may have in defending your actions and decisions. The amount of unnecessary energy you spend is exhausting, and you deserve better!

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How Critical is it to Review Employee Performance? Part One

How critical is it to review employee performance? Part One

This week, guest writer Sonya Law walks us through the critical importance of the employee performance review in part one of a series.

It is very critical: you need alignment between the people and the work that needs to be done to achieve the strategy.  Your people are your number one strategic competitive advantage. When businesses can unlock potential of all people it has a multiplier affect to the bottom line.

Its very important to have a business whose people are performing and heading in the same direction.  It’s an obvious thing you can’t get anything done without the engagement of your people.

There are a number of factors for that too, which exist in today’s organisations:

  1. No clear direction: Often what happens is there is not clear direction from leaders.
  2. Feedback loop: There’s not always a feedback loop between the manager and employee on a regular and consistent basis.
  3. Celebrate achievements: Also, one of the things organisations don’t do very well is celebrate their achievements.
  4. Value your people: And the valuable work that employees do over the last 6 to 12 months is not recognised and highlighted in their mid-year or end of year review (EOY) or at all.
  5. Re-engage: Recommitting your people to the purpose and the strategy and their role in it is not something that is commonly practiced and should be.

As leaders, we get caught up in operations, in our own role, blinkers on, it’s very easy to fall into that trap especially during the pandemic, where for a lot of leaders it’s about keeping your head above water.  It is the role of management to let people know what their contribution is and what their value is to the team and the organisation.  Most people join organisations because they want to be part of something bigger than themselves.

So, it’s a really good opportunity to acknowledge those things as well as ASK your employees at the End Of Year (EOY) review:

  1. What are the roadblocks you are experiencing in your job?
  2. What are their ideas in terms of efficiencies and continuous improvement?
  3. Ideas on how they could do their job better? Innovation?
  4. Ask them if they would like to do more training, learn something new, that is going to help them to do a better job?
  5. Open up a feedback loop: Say to the person how can I as a manager, help you to perform in your job?
  6. Ask them are they open to opportunities for challenge and stretch goals?

It’s good to, in that conversation talk about challenges and stretch goals.  What I am hearing from a lot of people lately that they are in a job, where they are somewhat happy, well paid, and it’s kind of easy and they are not really being challenged or stretched.  So, they actually want to leave their organisation for an organisation that challenges and stretches them.

This is the responsibility of the manager to unleash that unrealized potential or capacity within the organisation and when we don’t capture potential it really hits the bottom line.  In terms of productivity and efficiency, and revenue per headcount, so it is the role of the manager to always be thinking about how can I unlock the potential of my people. It starts and ends with potential.

Bias is a block to unleashing the Potential of employees?

As leaders, we experience bias in our decision making all the time, we put people in boxes because it enables us to make sense of the world and provides certainty something that still plagues us during the pandemic.  Or we are too lazy to think about what that person’s potential is within the organisation.  Managers who are disengaged have a detrimental impact on the overall performance and wellbeing of their team and organisation.

What can we do as leaders to overcome this bias?

To be aware of how limiting it is when we put people in a box, when we sit down at EOY review we need to appreciate that they are not the same person as they were when they started in the role and with the company.

Important preparation tips for Managers:

  1. Awareness of our own biases
  2. Look at your employees with fresh eyes
  3. Go in with the mindset like you are interviewing them for the first time
  4. Don’t assume, that their past performance is a reliable indicator of future performance.

We need to go into the EOY discussion with the employee as if we don’t know them because, our biases, and our assumptions, and experiences overpower where that person is.

This practice will ensure a successful EOY review on both sides.  With the knowledge that people grow and change as people within an organisation.  Consciously or not, we are putting people into boxes that underutilizes our Human Resources.  By holding a space for employees, it enables you to assess their performance.

Exert from a Candid Conversation with Ron Slee:

(www.learningwithoutscars.org Podcast button)

Ron: The EOY and mid-year review is all about the employee, its not about the manager, and many times, most times, I don’t believe the manager knows how to do it?

Sonya: This is true.  Some managers don’t want to do it, they find it intimidating.

Ron: Have you seen that?

Sonya: Yes, they just want it over and done with and tick the box, and send to HR. Often it comes back with limited feedback or comments. Yes, they talk with the employee and tick it off and go back to their job.  They are often uncomfortable with having conversations about barriers they might be experiencing, professional and personal development questions, conflict in workplace and delivering feedback.  Those skills are important but a lot of managers don’t like to do it, or want to do it.

Ron: Why?

Sonya: It opens them up, they won’t always have the answers.

Ron: We have to be vulnerable to each other.  If I asked what I could do to improve my relationship with you as a worker of mine, that employee has to trust me explicitly, implicitly if they are going to tell me the truth.  I don’t know that, that kind of trust exists? I get a paycheck, I don’t want to do anything that is going to jeopardize that paycheck, I need the paycheck.  The employee is coming to the discussion nervously and anxiously, and the boss thinking what a pain in the neck.  I am busy don’t they know that. We’re on the wrong foot from the start?

Sonya: True, there is also a power disparity which makes it difficult, in the workplace, often if face to face in the bosses’ office, manager title on the door, its intimidating.  The employee just wants to get home, take a paycheck and goes into survival mode, which is quite common.   Fear kicks in and fight or flight depending on the degree of trust.

In my next article we will explore this more on how to have a successful End Of Year (EOY) review in

Part Two: How to build trust and get the most out of the End Of Year (EOY) review. 

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The Digital Dealership: Information is the Core

The Digital Dealership – Information is the Core

At the core of the digital dealership is information. Tonight, Mets Kramer shares more about the key information you need.

Perform an Information Audit to develop your Digital Dealership

 

In our last podcast about the Digital Dealership, Ron and I discussed what some of the first steps are that any dealership should take to become a dealership of the future.  Since the basis for the digital dealership is the complete use of information, I suggested the first step should be to review how the dealership is currently storing and using key information.

Key information, in the Digital dealership, revolves around the customer and equipment, and especially customer equipment data. To become an integrated dealer, making the most out of the information available, information needs to be collected, analyzed and shared among all areas of the business. It’s important that areas of the dealership don’t become information silos. It’s especially important that the different areas of the business don’t operate on disconnected versions of the same data.

To do this means a few things:

  • First, information should be kept in a single database or “single source of truth” for each type of information. Whether it’s customer, account, equipment or contact information, there should be one primary place to store that information, and no more. Whether it’s equipment information on work orders, customer information and contact data in CRM or unit number information in parts, they all need to draw from and update the same single source. This is especially true if the information is also needed in the other departments.
  • Second, information needs to be shared out to all departments to help make decisions. The Sales team should see equipment information on machines serviced by the shop, they should see parts sales by machine from the parts department. Service needs to know about machines sold to customers before they come in for their first service work, and everyone needs to know the engagement of customers on marketing and digital platforms.
  • Third, information should be enhanced with data from outside sources and inhouse analysis should be performed. When the sales team looks at a customer fleet list, they need to know how much should have been generated by each machine through parts and service, not just the actual numbers. Sales should be able to see market price on equipment when they review a machine, not have to ask the office to get this. Service should be able to see if customers have open quotes and deals on replacement machines when advising the customer’s techs about required repairs. The Marketing department should see what activities are generated from their marketing activities or customer engagement.

To prepare you for your dealership’s journey toward becoming a digital dealership the first step is to review existing systems, available information and the areas where information is missing.  This Information Review identifies what needs to be done, where the problems lie and what systems are limiting your dealership’s efforts. This review is often hard to do with in house people. Most people are too busy running the day-to-day transactions in your dealership, but it’s also hard to find the things you don’t know to look for.

If you’re looking for a detailed review of your information systems, a strategic plan of issues to resolve and initiatives to complete on your Digital Dealership journey, my Company Strategic Evolutions (https://www.strategicevolutions.ca)  can provide this service for you.  With a week onsite, reviewing your systems and talking to people from marketing to service, we’ll prepare a detailed presentation and provide recommended activities to make information an important driver in your dealership’s growth and future.

Are you ready to see your Digital Dealership grow?

Mets.kramer@strategicevolutions.ca

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The Digital Dealership: Change and Remaining the Same

The Digital Dealership – Change and Remaining the Same

In tonight’s blog, guest writer Mets Kramer continues to speak on the digital dealership with a look at change, and remaining the same.

I often hear, and most of us have said, the following word.  “The equipment business is a relationship business”, “Relationships make the difference”.

Nothing could be truer about this industry.   Our products create long term relationships because each of the products have a long-life cycle during which we need to engage with and support our customers.  Relationships make all the difference during many phases of the machine’s life cycle.  I first learned this lesson dealing with 330 Excavator issues.  This work horse machine was relied upon by many customers, just it had lots of issues.  Cylinders, pumps and final drives to name a few.  Having a strong relationship helped us navigate the problems with the customers and come up with workable solutions and agreements.  Through it all, we maintained the relationship and the next generation of the same machine still had lots of buyers.

So, this is often what I hear from dealers when talking about the development of the Digital Dealership. “Digital isn’t important, it’s a relationship business”. As if relationship is all it takes to maintain a customer. If that were true, we would all still have a roll of quarters in the truck and be looking for pay phones to get a hold of the office and the customer, rather than get a cell phone to get better.

The Truth is, while relationships matter, the digital transformation has supported it all the way and needs to continue to do so.  It’s naive or “old fashioned” to get stuck in the glory of the past.   Just like your cell phone caused the demise of the Pay phone because it allowed you to do things better. The rest of the digital world is there to support you. Not replace you.

This past week I sent my 4Runner in for service.  Just for fun I went online, found the nearest dealer, booked an appointment, chose my preferred communication method, got a quote for the service and discussed additional required services at my mileage. Then I got to the Dealership and talked face to face with the person I’d been emailing with. All my car information was entered, and we wasted no time.  I built a relationship with Jallone the Assistant Service Manager.  He looked after my needs and I tried to steal him from automotive to the equipment business, because he did a great job. When the service was done, he followed up with electronic invoices and discussion on open items.

The Digital dealership supports and improves your existing operations, it does not destroy the value of relationships, it only makes them easier to create and maintain.

Take this example I heard from Alex Kraft at Heave.co this past week. A contractor told him he’s been waiting for 3 weeks to get a quote from his sales rep.  All this customer wanted was a piece of paper (or electronic quote) for a machine, but the sales rep is too busy or the process too onerous to get a quote out. How is it helping that dealer and customer not to have the dealership invest more seriously in digital systems to provide quotes faster. In the end this contractor went to a new platform that exposed his needs to dozens of other dealers, who quoted him automatically or saw the Quote request and responded.

Digital supports your business; it doesn’t take away from it; unless you decide to implement it poorly.

How else does Digital augment your relationship?

A core aspect of the Digital dealership is the use of information.  As the equipment expert your customer relies on, you need to be seen as the trusted advisor, not a quote provider or order taker. Find ways to use digital information to be ready to support your customer with all the equipment related information you can. Specs, performance, analysis, operating cost and market pricing data. When you become the Digitally enabled Trusted Advisor, you’re always welcome.

Oh, and don’t forget to have inventory info at your fingertips and be able to price something.

Years ago, I had dinner with a colleague in Chicago during my only 1.5 years not in the construction equipment business.  He told me a story of being a young regional manager, sitting with his customer.  He proudly boasted about the improvement their business had made in delivery.  He told his customer “We can now ship any product we have in stock to you in a week”.  He was so proud of the giant gain in delivery speed.   His customer looked at him and laughed “You’ve got to be F@#%@ kidding me, from stock to out the door in seven days???”    Expectations are the point.  Your customers have a learned experience of what’s possible.  No matter how good you think you are, if someone is doing it better, that’s the new standard.

Creating a strong Digital Dealership, however that applies to your dealership, improves your relationship with your customer.

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Target Marketing

Target Marketing

In his guest post for this week, Ross Atkinson highlights the critical importance of technology when it comes to target marketing.

It is truly amazing how times have changed in the last 20 years! Dealerships have gotten larger through consolidation and spread further apart. The dealer is servicing more customers with less staff. Welcome to the world of running “lean and mean.”

The customers aren’t staying small either as they continue to expand in order to survive in this ultra-competitive world. As customers get larger, the likelihood is that someone other than the owner will be the one picking up or dropping off. The days of the customer grabbing a coffee, sitting down for a personal discussion and allowing you to get to know them better, is a faded memory of the good old days.

Technological advances can also be partly to blame for the lack of face-to-face interactions. It’s commonplace today for many transactions to be done without the need of talking to a salesperson by utilizing internet-based ordering systems. Let’s not forget, even if you do visit a bricks & mortar store, you may still have limited verbal communication with a human being considering the availability of digital lookup and self-checkout kiosks. And if the goods aren’t being delivered to your customer’s home or business, the conversation at pickup is trivial at best.

Even if we did have a need for human interaction, we have the next generation of workers who have grown up in an era of Facebook, Twitter and Instagram. It’s bad enough they don’t teach cursive writing or spelling in schools anymore, but with today’s youth spending countless hours in front of screens growing up, they are missing out on the opportunity to learn social skills with other people like their friends.

So as dealerships lose personal contact with their customers, they look to other means of communication and one of the few things available is technology. Using an automated, self-controlled method of recognizing certain conditions, a notification can be sent to the customer electronically or interactively. I call this “Target Marketing”. It is a term I use for targeting a single customer based on triggers or events that happen every day. Call it what you will, these kinds of systems are available today and can reach out to your customer through some form of digital communication like a text or email. It can let them know that their parts order has arrived or notify them when their machine is due for service. No more manually calling, no more busy signals, no more answering machines, and no more forgetting.

There are an endless number of “triggers or alerts” that can facilitate a communication to your customer. Words of warning though, do not go overboard. Ensure that the most important, time sensitive notifications take precedence. The last thing you want to do is alienate your customer by sending them 15 emails or texts a day.

Having this information sent to your customer’s fingertips can be very beneficial. The immediacy of the message sent to their phone or device allows them to take action right away. For the dealership, it eliminates the need for staff to take time away from their busy day to chase down the customer.

At the same time, the trigger and alert concept can also be used within the dealership to benefit the customer. When a work order is opened for a customer’s machine, wouldn’t it be important to know there is an outstanding recall?

Although the interactions between the dealership and the customer isn’t what it used to be, when you do get an opportunity to be face-to-face, take full advantage of the time to know your customer better. Wish them a Happy Birthday or thank them for their purchase. Ask them how they are doing and what’s happening in their business or personal lives. Your customers will appreciate the attention and interaction; you may actually learn something about them that will improve your relationship.

We should also consider what else computer systems can do to better understand and help the customers. With the collection and analysis of customer transactional data, you can get an understanding of specific patterns which may result in some form of target marketing for things such as bulk purchasing.

This same data analysis can also be significant for your dealership. It can help identify patterns such as peak order times so that you can staff accordingly or ensure that you have the appropriate stocking levels. It may even facilitate changes to your day-to-day business processes.

As you know, Ron’s podcast tagline is “The Time Is Now.” Well folks, if you want to keep in touch with your customers today, you better get on the technology bandwagon! The Time Is Now!

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The Digital Dealership – Self Serve

Digital Dealership – Self-Serve 

In tonight’s blog, guest writer Mets Kramer continues to speak on the digital dealership and the freedom it gives us when it comes to self serve.

Satisfying our Self-Serve Desire

Last Month, I did something I haven’t in a long time.  On a trip back home, I came across a Full Serve gas station and used it! These used to be the norm, no one pumped their own gas, and every teenager had a job. Then the world started changing. Gas became more expensive, as did the teens, and self-serve became more common.  Why pay extra and wait for the slow teenager to pump your gas when you just do it yourself and get it done faster and easier? In the same way more and more things have become self-serve.  Self-serve gives us the feeling of moving at the pace we want and reduces the need to interact with other people.  It’s not that we’re asocial, but it does feel like other people slow us down, or we have to wait to get access.

So, now we live in a world that has been designed and tooled to allow us to do things for ourselves, often from our phone.   Even the most “Full Service” new trend is really just self-service.   Ordering your dinner though an app such as Uber Eats, or Door dash is really about satisfying your desire to make things easy and at your pace.   Multiple restaurants are presented to you to review and decide what you’re “cooking for dinner”, payment is processed online, and the food shows up ready to go.  A full Self-Service Experience.

The truth is, each of us are becoming more accustomed to and preferring of Self Service.   It lets us do things when we want, where we want and at our own pace.

Your dealership should be no different.  Your customers are people, like yourself, who increasingly prefer the self-service option.  They want to have more information presented about their decision than if they call a person.  Just like you, your customers research and look up information about what they need on a plethora of sites.  Then they find the easiest way to acquire what they want or need.   This is a significant change from the mindset of the past, which looked to person to person contact for the highest level of service.

So, what are the main aspects of a self-service approach in a Digital Dealership

  1. Provide information
  2. Support the preferred communications methods
  3. Deliver the product/service

First, don’t be short on information.  If you have information to help the customer, make decisions, present it while the customer is in the research phase.  If they don’t find what they are looking for, they, like you, are quick to do a second Google search for what they need.   This information can be presented on open webpages, but also presented only to trusted visitors to your digital dealership.

Next allow your customers to communicate with you the way they want, but don’t “Drop the call”.   Too many dealers drive their customers to forms that end up in email boxes.   The response rate and times are terrible.  If it, was you and any other method, you wouldn’t stand for it.  So why do this to your customers.   Make sure every channel is viewed in real time, during extended business hours.   Make sure contact info is checked and related to your CRM data and finally make sure you respond quickly, and preferably in the format the customer contacted you.

Finally, enable delivery.  By delivery I mean take the transaction as far as possible.  If you’re listing items or services through any of your digital channels, enable an immediate action option.  Call it a “Buy it Now” button.   We are all familiar with that.  This doesn’t mean you have to provide digital payment processing, but you can capture commitment from the customer.  In this case we want to enable and cement the customer’s decision.  When you offer the customer a “Contact Us” form to fill when they want to buy, it leaves the door open for them to keep searching.   A “Buy It Now” button allows the customer to feel like they have solved their problem.

We all think our time is valuable.  We want to make sure the time we spend on resolving a need, is efficiently spent.  This is what has driven our Self Service digitally enabled world.  When I go to Starbucks and order my coffee, I now do it from my app.  It remembers what I want, it pays for me, and I just walk in and grab it from the counter.   That’s a Digital Coffee Shop, supported by a bricks and mortar building with a real human barista.   I always have the option to walk in and have a chat while I place my order, but I can use a digital channel if I’m in a hurry.

Your digital dealership shouldn’t be any different.

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Why do I do what I do?

Why do I do what I do?

In tonight’s blog, guest writer Ryszard Chciuk asks a question I think we have all wondered at one time or another: Why do I do what I do? 

Contributing to someone’s improvement and understanding is the reason I do what I do.

Who said that? If you don’t know yet, please keep on reading.

This article is about the meaning of one’s live.

Jim Collins said in Good to Great: … it is impossible to have a great life unless it is a meaningful life. And it is very difficult to have a meaningful life without meaningful work.

Victor Frankl in Man’s Search for Meaning (over 12 million copies sold) says: … striving to find a meaning in one’s life is the primary motivational force in man. Victor Frankl also claims that Man … is able to live and even to die for the sake of his ideals and values! He also said: There is nothing in the world, I venture to say, that would so effectively help one to survive even the worst conditions as the knowledge that there is a meaning in one’s life. It has been said by a man who survived three years in four German concentration camps, including Auschwitz.

In that book Victor Frankl reminded results of several public opinion polls:  The results showed that 89 percent of the people polled admit that man needs something for the sake of which to live, around 60 percent of the people polled conceded that there was something, or someone, in their own lives for whose sake they were even ready to die. In the statistical survey of 8 thousand students of 48 colleges, conducted by social scientists from Johns Hopkins University, students were asked what they considered “very-important” to them now. 16 percent of the students checked “making a lot of money”; 78 percent said their first goal was “finding a purpose and meaning to my life.”

The polls were made some time ago, but my experience tells me the latest results would be much worse. I mean there are much more students and adults interested in earning more money and fewer people searching for the meaning of their lives. Using Frankl’s words: they are caught in that situation which I have called the “existential vacuum”. For such a man No instinct tells him what he has to do, and no tradition tells him what he ought to do; sometimes he does not even know what he wishes to do. Instead, he either wishes to do what other people do (conformism) or he does what other people wish him to do (totalitarianism).

To complete this long introduction, I will remind only one sentence from Friedrich Nietzsche: He who has a why to live can bear with almost any how.

A company does not have its brain (at least at the beginning of the 21st century), so it can not suffer from the existential vacuum. The feeling of meaninglessness is not painful for a company. But no organization exists without the brains of its employees and managers. If you, as their leader, are aware that a significant part of your staff is searching for the meaning of their lives or suffering from the existential vacuum, you should help them. I do not expect you will create an internal department of logotherapy. Nevertheless, why you could not extend the medical healthcare package and allow some of your people to visit a logotherapist?

Anyway, I believe the person searching for the meaning of his life will be inspired by the mission of the team he is a part of, and adopt it as a kind of response to his problem. And those who already have a sense of meaning will find that working for you helps them to fulfill their life mission.

My life mission is to leave the world when it is a little bit better than it was before I arrived here. Does it sound general, audacious, pompous? Not for me, but as a manager, I made my mission’s definition more specific. I utilized over twenty years of experience collected during my service for the construction company. In that time, as a machine user and an internal service provider I believed I had learned the basic expectations of all machines’ users:

  • The machine is ready to work always when it is needed
  • The cost of operation is the lowest possible

When I got a chance to attend the creation of a new dealership for Volvo CE, I expressed my new after-sales department mission as follows:

  • We provide machine users with the highest machine availability at the lowest cost of operation,
  • by delivering service works exceeding customers’ expectations,
  • and keeping profitability on the level assuring steady development of the service department and securing financial liquidity of our dealership in a downturn in the economy.

That mission statement became a basic foundation for defining our department’s vision and the main principles (values).

The life mission has to be adapted to the changing conditions, so since I got retired, I feel personally obliged not to spoil our planet to a higher degree than the average homo sapiens does. It comprises also sharing my experience in the construction industry with my successors. I would like them to avoid my mistakes. This is the reason to write posts for the Learning Without Scars blog and to publish articles on my blog dedicated to construction machine users and their closest collaborators – after-sales departments personnel (only in Polish – note: and they are all excellent).

I owe you a response to the question I started my blog post with. This is Ron Slee answer to the most important question a human being has to ask himself: why do I do what I do? Helping students of The Learning Without Scars to succeed is his, and his company mission, his WHY.

Dear reader, what is your mission, what is your WHY, have you already found the meaning for your life?

As Ron says, the time for your answer is now.

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Equipment Data and the Digital Dealership

Equipment Data and the Digital Dealership

Tonight, to accompany the podcast released on this subject today, guest blogger Mets Kramer continues to educate us on all the digital aspects of our business with a look at equipment data and the Digital Dealership.

When I started Strategic Evolutions in 2017, it was based on two things.   First, I wanted to help smaller dealers do a better job and grow their business. Second, I wanted to show people how to use information to do exactly that.   One of my first engagements was to speak at the Associated Equipment Distributors on the topic “A Granular, Data Driven Approach to Strategic Sales”.  The focus of my presentation was the value and importance of using information, specifically customer equipment data, to drive dealership activities.

Customers work with you, the dealer, for one reason: they own equipment. (And let’s not forget, it’s also because you’re great people!)

Numerous people in the industry have pointed out the value of customer equipment information.   Most frequently, and in the topic of my presentations, the customer equipment information provides a clear indication of future sales opportunities.   Our industry is focused on equipment with a predictable life cycle.  If you’re a dealer representing any OEM, you should be using this information by now, to drive potential sales opportunities and providing your sales reps with new leads.  Furthermore, by analyzing and predicting the replacement time of a machine, it’s the easiest way to make sure low volume customer aren’t lost to competitors.  Think about the customer with only a few machines, who doesn’t engage with the dealership frequently. These types of customers are often lost because they didn’t connect on time. However, if they had used a CRM system to notify the sales rep to reach out at the right time, we could have prevented this loss.  How do you get this information?  Either through the sales team or by digitally engaging with the customer.

Equipment information is just as valuable in aftersales at the dealership. We all know having this information makes parts and service support easier.  For example, customers call with unit numbers because they don’t use serial numbers to reference their equipment.  With a CRM, your team can quickly find the serial number of the customer’s unit from the database.

From a marketing perspective, equipment data can help you measure the potential size of the aftersales market.  If you’re selling maintenance contracts, you already know how many dollars per hour of parts and labor each machine should produce.   With a complete fleet list, you can estimate total potential revenue and market share.    Now, you have a sales lead for your aftersales PSSR reps.

In the Digital Dealership, aftersales should also be utilizing equipment data.   By integrating the equipment data with your Digital Dealership, you can present equipment information in the online parts store, but more importantly, all over your Digital Dealership.  You can promote Parts Kits, PM kits or Maintenance programs to the customer when they visit.  As a comparison, the digital world’s success started when websites stopped being static and started to tune the content to each visitor.  It’s no different with your Facebook, Amazon and countless other social sites.  These businesses present you relevant information based on what they know about you.

To make this all work, it is as simple now as it was 20 years ago.  To build an information driven dealership, your systems need to be up to the task.  An ERP, DMS or CRM that can store customer fleet data is critical and should be a key item to consider when switching to a new Dealer Management System.  If your current system can’t handle customer fleet data, and you’re not switching, get an integrated CRM. Next, make sure you have your sales and aftersales teams think about collecting this data.  If it becomes a normal part of your conversations throughout the dealership, and a focus of your customer service, gathering the data gets easy.

Finally, invest in a partner or team member who’s full or part time job it is to analyze the data and implement programs using the data, with the business unit owners.  Your sales manager or product support manager needs support.  Most of the dealers I know have limited resources in house, so it might mean a new person or finding a vendor to help you.

One thing is for sure, and you see it all around you, the most successful businesses today, have a strong digital presence and use the information they have to their advantage and their customer’s benefit.

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A Watchkeeper or a Beekeeper?

A Watchkeeper or a Beekeeper?

In “A Watchmaker or a Beekeeper,” guest blogger Bruce Baker walks you through the main personality types in leadership roles, and how they can impact your business.

Low morale, low profits, lack of employee engagement, high turnover and rampant gossip can be attributed to a company being led by either a Watchmaker or a Beekeeper – care to guess which one is the culprit?

If you guessed Watchmaker, you’re right!

In James Fischer’s book, Navigating the Growth Curve, a Watchkeeper is a person who needs most business components to be predictable – something they can control at all times. They believe that to be effective, the “business machine” must be controlled by its operators. This is their overarching purpose of management – to control the business. They further believe that the machine exists for its builders’ primary purpose: to generate as much money as possible for its owners/stakeholders.

There is absolutely nothing wrong with making as much money as possible. Still, it is essential that building an intentional business must be done sustainably over the long term. This includes not profiting at the expense of the company’s employees and stakeholders. The better approach is as you might have guessed by this stage, is being a Beekeeper.

Beekeepers are always mindful and have hindsight and foresight when managing and growing their business. Instead of rejecting or resisting the complexity and chaos that certainty comes with business growth, Beekeepers embrace complexity and, at times, chaos by allowing their teams’ or hive’s intelligence to be the operator instead of themselves exclusively. They appreciate and understand that their business is a living and intelligent organism, and if allowed, will generate far more innovative ideas and sustainable solutions. As a result, the Beekeeper’s business will continually self-organize around its problems and challenges.

When reading the fable in Navigating the Growth Curve, Horace’s recommendation is for Peter to become more like a Beekeeper to capitalize upon his team’s collective intelligence. Peter initially tried very much to control every aspect of his team, causing anger, hostility, and disengagement, leading to a downward spiral that could have been prevented by merely asking for their input.

This is a hard lesson that business owners/leaders can’t seem to learn often enough. Unfortunately, we regularly find far more Watchmakers than Beekeepers primarily due to individuals insisting that they should have all the answers and asking for their employees’ input may put them in a negative light. This is far from the truth! The opposite is true.

There is a Beekeeper in all of us. Still, during our day-to-day challenges as business leaders intending to do the right thing, our Watchmaker tendencies take over more than often without us even realizing it.

The 7-Stages of Growth concepts and programs offered by Workplaces are designed to help leaders predict how complexity will affect them, focus their efforts and resources on the right things at the right time and adapt to their company’s needs as their business grows.

I want to share the first steps in the journey of becoming a Beekeeper referencing the 7 Stages of Growth Model and the Business X-Ray we take our clients through. We emphasize that the only complexity in any business is its people, starting with the business owner during this exercise. The business owner and the leadership team’s ability to embrace this complexity and leverage its power will take the company and team to the next level.

Let me share the initial 4-steps we start within the Business X-ray session that will set you on the course of business growth success.

  1. Recognize the intelligence of the team by asking its opinion.

As scary as this can be, once you have it behind you, you will be amazed at the results and the amount of ‘anxiety’ it can take off your plate. Most leaders we work with hesitate to ask for their team’s input/feedback. Many reasons come to mind, but the following are the regular reasons we come across:

  • How can they possibly know enough about the company to give me advice?
  • They’ll use it as a ‘bitch’ session, and I’ve heard enough of that.
  • I don’t have time to take their suggestions – I have my issues to deal with.
  • If I ask them for their opinion, they’ll expect me to do something with it, and I have enough to do right now.

Leading is all about learning how your company and the team think and feel can only be brought about by asking and engaging.

  1. Filter out the noise

Noise is only too common in the business world today. Too many things are important, leaving nothing that is truly “important.”  There are too many agendas that are not leveraged into concise plans of action, leading to low levels of focus and execution.  Once the team’s power is recognized and leveraged (i.e., all voices and their opinions are encouraged), critical issues are brought to the surface and problems are solved.  During the Business X-Ray session, key initiatives are identified with detailed action plans ensuring results are achieved.

  1. Unify the team around the plan

Once the key initiatives from the X-Ray are identified, the work begins. Communicate this information to the rest of the company either through group and individual meetings or the entire company at one time.  Ensure that each initiative has a ‘champion’ – someone willing to be the ‘team lead’ on getting to the end goal. A lot of work? You bet, but the rewards are well worth it!

  1. Implement organic and self-organizing systems reinforcing change

Organic and self-organizing systems include people engaging and achieving results together. This essentially allows the team to put their handprint on solutions and subsequent systems and processes that produce results. Leaders are working less hard and far smarter with less direct supervision, control, and micro-management.  Allowing this to happen brings about a path of least resistance which anyone in chaotic environments would strive for.

Practice being a Beekeeper and minimize the amount of time you spend as a Watchmaker. The results will be empowering for not just your team but for you as well.

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