Parts Management Training

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Don’t miss your opportunity to attend the most comprehensive management training available for parts management and supervision in the Equipment Industry. In Dallas February 17th and 18th. You can register either at www.rjslee.com under the learning tab or at www.aednet.com . I look forward to seeing you there.

The time is now

The “New” Quest Parts Management – Unit I

 What it looks like when it is Right

 A more professional, productive and profitable Parts Operation is necessary for the distributors in the Capitals Goods Industries to be successful. To assist in the development of this Parts Management team we have designed a new series of training courses aimed at enhancing the skills of those charged with this responsibility. The “New Quest Parts Management Unit I” consists of 4 elements presented during a two day seminar.

  • The Principles of Management

The Basic Principles of Management – what we call the Pursuit of Performance: Planning, Organizing and Control; Job Descriptions and Responsibilities, Performance Standards and Targets – what it looks like when it is right; Employee counseling with praise and constructive criticism in Personnel Management; Time Management to set yourself free; The Business of Change and how to overcome resistance to change; How to survive in spite of ourselves.

  • Introduction to Accounting & Finance for Parts Personnel

Understand Financial Statements from the Parts Department Perspective.  Clear and understandable definitions of the main financial terminology a supervisor/manager must have. Learn the Dealership Financial Fitness Model; and Profitability Pyramid. Asset Management and the value of Return On Assets. Pricing and Return on Capital Employed (ROCE) Discover new truths about the famous “Discount” and the consequences of it on the customer and the business.

  • The Operational and Process Foundation

Balancing Inventory Requirements with Customer Service: The impossible made understandable. Order Points and Order Quantities; Lead Times and the EOQ; Order Cost and Carrying Cost. Unleash your true power of knowledge by learning the theory of Inventory Control in all its glory. In physical distribution – the job everyone thinks they can do is easy but no one wants to do: Storage systems, transportation logistics; Shipping & Receiving; Parts Office, Sales Counter and In store Merchandising Design and Layout that makes sense.

  • It’s All about Customers

Satisfying everyone’s requirements and developing relationships: “Up Selling”, Product knowledge, Features & Benefits selling, and effective telephone techniques. How you should use price as a marketing tool. In store displays and merchandising; Value added selling; and the value of Customer Retention. Surveys to develop satisfied customers for life: Customer Profiles and all the background required to make customers your apostles.

This “New Quest Parts Management Unit I” provides a broad base introduction to Parts Management for the 21st Century. It is intended for Parts Lead hands, In store Sales Lead hands, Supervisors, Managers and Executives. The material covers all of the management and operational disciplines required of a Professional Parts Manager.

 

Service Webinars

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Don’t forget to register for the webinars on service department operations this week. One hour each and content filled. Inspections, Work Order Process, Labor Rates and the Service Organization are the topics. Go to www.aednet.org to register. The time is now.

Management Musing v2.6

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The summer is over and it is time to get down to business again. We will return to submitting blogs on this site regarding parts, service, sales, training, education, and the like on a regular basis. Those of you that follow this blog are more than welcome to make suggestions as to which subjects you would like me to focus on this Fall.

This Fall marks the end of five years since the economic disruptions became so dramatic. Equipment sales levels still linger at roughly half the peak they realized in 2007/2008. We should not expect machine sales activity to return to that level in the United States, excluding resource-based equipment sales until well after business and the general population, get healthy again.

Employment numbers are like grasping at straws. The number of unemployed got lowered to 7.3% for August with the overall unemployment rate being 13.7 if you exclude those that have given up. The labor participation rate has not been this low for over three decades. The lingering overhang of the arrival of the affordable care act is having an effect on hiring. More jobs are becoming part time to avoid the cost to employers of providing healthcare to full-time employees. Healthcare offerings from employers are asking for more contributions from the employee. Wage increases are almost nonexistent. And we should never forget that the American consumer drives the American economy. Without people having disposable income the American economy will continue to struggle.

It is against this background that those of us in the equipment business are working. Parts and service has to become more the focus of these equipment dealers if they are going to succeed in this reduced equipment market. At some point you have to start growing your business, as opposed to saving your way to health. Employee productivity can only be driven so far before it reaches the breaking point, both for your employees and for your customers who don’t receive the level of customer service that they deserve and expect.

The opportunities in front of us are huge. But opportunity is an interesting word much like the word potential. If somebody tells you that you have a lot of potential at the age of 16 that is quite a compliment. If they tell you the same thing at the age of 66 I wonder what you’ve been doing for the last 50 years. Opportunity is what we make of it. So for those of you that are prepared to go get it – these pages are for you.

The time is now

Management Musings 2.6

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I just watched a wonderful presentation on TED from Robert Gordon on the death of innovation. He concludes this talk with a challenge to us all. He asks Alexander Graham Bell and Thomas Edison to come onto the stage and asks if we are able to match their innovation for our generation. Great question isn’t it?

He posits that the American economy might be settling back into the growth ranges we had prior to the early 19th Century? That growth rate was 0.2% while in the years since 1891 and up until 2007 the GDP grew at an average 2.0%. That is a staggering change.

Unless we can have the same levels of innovation then that is our future.

There four main things we are fighting against.

 

  • Demographics

The key statistic to improving the standard of living is hours of work. Women coming into the workforce in the numbers over the past fifty years have made the difference.

  • Education

The quality of education has eroded in America along with the level of graduation. Canada has a graduation rate 15% higher than the US.

  • Debt

Both personal debt and government debt are out of control. Personal debt appeared to be declining for a short time but has started back up. Government debt is a pretty clear situation                      at all levels national, state and local.

  • Income Inequality

Anticipated wage growth for the bottom 99% is 0.8% which will not be nearly enough to improve the standard of living.

Something has to give. Either we innovate or we are destined for a period of extremely slow growth which will provide inadequate improvements in the standard of living for the coming generations.

The time is now.

 

 

 

Management Musing 2.5

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One of the elements with significance in the New Reality is Technology. This vast subject I narrow down to cover the following points:-

  •  VoIP
  • CRM
  • Electronic Catalogues
  • Drag and Drop Processes
  • Technician Scheduling Systems
  • Marketing Analytics
  • Signature Pads
  • Online Payment Processes

We will delve deeper in each of these in the coming days.

The time is now.

Management Musing 2.4

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Let’s review the New Reality. I recently discussed this with a group of executives and highlighted six of the elements that I think are important in the New Reality.

  • Market Coverage
  • Buying Habits
  • Inventory Management
  • Expediting and Logistics
  • Transportation
  • Technology

We will cover these six elements in the weeks ahead.

The time is now.

 

Management Musings 2.0

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Today is a wonderful day. Welcome to 2013 and I hope that your every desire is accomplished; Health, Happiness and Prosperity to each and every one of you.

 

– Don’t let anyone take away your dreams.

– Always assume the other person is twice as smart as you are and work twice as hard to prove they aren’t.

– Be happy in your work or work and be happy but you can’t escape you have to work.

– You can do more than you thought you could and you can be more than you thought you were

 

All the best – The time is NOW.

Management Musing v1.9

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I want to talk about tomorrow today. I want to look into the future and try to make some determinations about what management and leadership will be like in 2050 or so. I know that I am setting myself up for some ridicule but there are some truths I want to explore.

This started with the birth of my grandson in 2005. You see boys that were born in 2005 barring a disease or an accident are expected to live until they are 100 years old. That is right 100 years old. Can you imagine that? Now for the record I think that is terrific, however, that means also that there will be a lot of changes coming to accommodate this fact. Let me pose a few questions.

  • What will be the retirement age?
  • How will we support a public pension?
  • How often will this work force be required to go back to school to retool their skills?
  • What will the unemployment rate look like?
  • What will the work day look like?
  • Will we need to have shared jobs?
  • Will we telecommute?
  • What will the cost of living be in 2020, or 2030, or 2040 compared to today?
  • What will the wages need to be to live a happy life?

I know that many of you are much too busy and stressed to be thinking about such things but they really need to have some thought applied don’t they? You have children, or will have soon. You have grandchildren or will have one day. This is not just about those of us in our sunset work years. (I have about fifteen years left) This is about you.

How you manage your jobs and lead people is what makes a difference in their lives and also in yours. How you deal with tomorrow will be the same thing.  The time is now.

Management Musing v1.8

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Have you noticed how the increase in productivity has caused many of us to have fewer man hours of support per dollar sold? This is a phenomenon of business that has really grown in the past thirty years. The US GDP is seriously dependent on personal spending which has grown as a result of productivity increases providing higher incomes, until, that is 2008 and the financial meltdown. We need to get back there don’t we?

The trouble in the customer service world which most businesses in the capital goods world are seeing is that their markets are fragmenting. The various modes of customer contact used to be mail order, phone order, fax order or walk in order business. To that we now have the internet or self-service business. But this is a very different business model. Many of you are still waiting for this to happen, you are in denial. Don’t wait too long as time is now your enemy not your friend.

Sometimes you can wait comfortably and let others pave the way and you can avoid the costly mistakes of being “first in the dirt.” But time has come.

You all need to provide a portal for your customers to find you on line and be able to “shop” your site for your wares. They need to be able to easily find you, find what they want, price it and even order it. Your competitors are doing it. Are you? The time is now.

Management Musing v1.7

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Manager is a hyphenated word – Man Ager. I am sorry that is not gender neutral but I am sure you know what I mean. Aging a person is from having to depend on others. Aging is from waiting for others to “get it” especially if you think that you have it. What is terribly wrong with this is that by following old fashioned styles of management the manager is the limit to the capacity of the group. That is right isn’t it? Can you see that and understand that?

Well I don’t like being a limit to anything. There really should never be limits to anything. The limit that might be acceptable is our inability to get it done. We simply are not capable. No schooling, or fitness programs, or special pharmaceuticals will solve the mystery of each of our limitations. Just reconcile yourself to the fact that you have limits and move on. The joy of management is you will be able to find and attract and hire and retain people who don’t have the same limitations that you do and watch them succeed in areas that were not possible for you to succeed. This is a wondrous thing.

Last time I talked about mentoring as a method to develop new talent and new employees. This is something different isn’t it? You have hired talent and they are on the job. Control oriented top down structures are toxic to creativity. Innovation, particularly of the disruptive sort, is unlikely to flourish when a few key executives have the choke hold on resource allocation. (Clayton Christenden). What the employees need today is freedom and responsibility. You need to allow them to fail but not in such a way that they hurt themselves or your group. That is where you the manager come on to the field of play. You are the conductor ensuring that everything works together in harmony. And yes that accelerates the aging process. But just imagine the joy you have watching your children succeed at something. This new reality allows you to experience that joy at work too. The time is now.