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Thank You for a Transformative 2019

Thank You for a Transformative 2019

I would like to personally extend to you all of the best for the holiday season. Further I wish all of you the best year end closing one decade, the 2019s and opening another decade, the 2020s. Happy New Year.

We have had a very significant year at Learning Without Scars.

  • We have completed all of the LOD’s, Learning on Demand, for all departments. There are eighty of them.
  • We have completed all of the PSP’s, Planned Specific Programs, for all departments. There are twenty-one of them.
  • We have completed all of the PLP’s, Planned Learning Programs, for all departments. There are eight of them.
  • We have introduced the CSA program. The Comprehensive Skills Assessments. There are eight of them.
  • We have introduced the French Learning Programs.
  • We have introduced the Spanish Learning Programs.

We are very optimistic that 2020 will show a further dramatic transformation.

We are also optimistic that 2020 will see us receive accreditation from IACET and be able to issue CEU’s (Continuous Education Units) for all of our classes to our customers allowing our programs to work toward college and vocational school credits.

I am sure you have had many happenings this past year.

We will be taking a short break from the blog and this will be the last one for 2019. I look forward to picking up with you again in early January. Thanks for everything and all the best to each and everyone of you aand your families

The Time is Now.

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Making Education Relevant

Making Education Relevant

Sebastian Thrun viewed by many as the father on internet-based learning notes that only 10% of the online students actually complete the classes when they are free. So now he charges for his courses.

Although the results on completion are much better when the students have to pay something, I believe that it misses the point.

How do we get each individual in the world we live in today to want to invest in themselves, to invest their time, in making themselves better? How do we get people to want to spend time on their own professional and personal growth?

We are moving rapidly to, what I call a “Self-Led” world. It is conceivable that with AI and all of the advances with technology that 50% of the population will not have any work to do. We will need to be “Self-Led” internally motivated if we want to be able to have some sort of societal contribution.

I hope you enjoy this next film.

The Time is Now.

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The CSA – Comprehensive Skills Assessment

The CSA – Comprehensive Skills Assessment

Our Comprehensive Skills Assessments (CSA) are job specific and specialized subject matter evaluations of the skills and knowledge of the individuals on the job today.

Comprehensive Skills Assessments (CSA) from Learning Without Scars offer a structured tool to evaluate the specific knowledge of each employee in the dealership. Following the introduction of our learning programs and the use of a class ending “Assessment” many dealerships have noticed the benefit to a clear understanding of the job-related skills and knowledge of each employee. As a result, dealers asked us to produce a product that will help them determine the specific training needs for each employee. The Comprehensive Skills Assessments (CSA) is that program.

The CSA can serve a variety of needs within a dealership.

  • These assessments can be used, in conjunction with background checks and interviews, to screen applicants before they are hired.
  • They can also be used in the annual performance review with each employee.
  • They can even be used as a foundation piece of information related to the wages and salaries paid to the employees.
  • Finally, and this is the genesis of the creation of the Comprehensive Skills Assessment, the assessment has been developed to be used to create a specific employee development program for each employee in the parts and service business teams.

These skills assessments are only available through our online learning platform. The following film will give you a deeper understanding of the many benefits of our CSA programs.

The Time is Now.

 

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Leaders with Skills and Knowledge – the PLP

Leaders With Skills and Knowledge – the PLP.

We started our journey of assisting in employee development in the early 1990s with the management training programs we developed for the Parts and Service Teams. We created two-day classroom programs for executives, management, supervision and first line team leaders. These classes focused on operations, finance, selling and management supplemented with a manual of roughly 200 pages in length.

What we didn’t do was offer a test for each program and progress testing to plant the knowledge more deeply into the student’s mind. You will find another blog post later this week from the wonderful book “Make It Stick” which is aimed at “The Science of Successful Learning.”

The Quest, Learning Centers, classroom courses were developed and then tested with executives who sat through the programs as they were being developed to assist us in how these programs were created.

Since the inception of these leadership classes we have had the opportunity to teach more than 4,000 dealer employees.

This film will define and describe how the PLP – Planned Learning Programs, classes work. Each one covers ten classes and provides twenty hours of training. The PLP programs are three years and covers thirty classes with sixty hours of knowledge transfer.

With the PLP’s we have a twenty question, multiple choice exam at the conclusion and also put forward “quizzes” three or four times through the learning experience. These “tests” are aimed, as indicated above, at implanting the knowledge more completely into the students’ mind. The science of learning tells us that testing stops almost completely forgetting the content of the class.   

The film you are about to see, which is the final program in the troika of learning and will give you an explanation of the PLP Program. I hope you enjoy it.

The Time is Now.

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The Infinite Game – Simon Sinek

The Infinite Game – Simon Sinek

Branch Operations.

In most dealerships the senior management structures are similar. There is a President, perhaps a CEO, in larger dealers a COO, followed by the Departmental Executives. There are numerous customer facing functions, and support facing functions.

The “Executives” focus on goals and objectives and market share. That is important, performance matters. Everything looks at goals and objectives: financial performance, sales, gross profit, expense control. All are very important. What about the Customer Experience? Who is responsible for ensuring that the Customer is at the forefront of everything that we do?

Who is the person that creates the “vision” for the dealership? Who is it that inspires every employee to be driven to get better at what they do – at “delighting” the customer?

This is an area that Simon Sinek points at in his recent book “The Infinite Game.”

He posits that we are all too concentrated on winning and avoiding losses. We are focused on the short term with no real attention paid to the future. But he isn’t talking about next year or the year beyond. He is talking in terms in decades. How can we make our businesses sustainable over time?    

This caused me some interesting reflection time. Most of you know I swam when I was a young person. Swimming is all about improving your own performance and less about “beating” the other swimmers in your race. I think that gave me a focus that was somewhat different than my peers. I was always about making everything better. There was no such thing as “best.” That is a “point in time.” Think about GE under Jack Welsh, arguable one of their best leaders to date. He was always about the short term. His comment was “Isn’t long term just a series of short terms?” Well to be honest it isn’t. As a result, GE since he left has had serious performance failures. Jim Collins, author of “Built to Last” among others, famously compared two companies in the same Industry and pointed at similar things. Most of our businesses focus on the short term. A study by McKinsey reported that the average life span of a S&P company has dropped since the 1950’s, over a span of fifty years, from sixty-one years to eighteen years today. Harvard Business Review, and many others, report that 70% – 90% of acquisitions fail. A rather serious statement on the ability of business to merge two businesses together.

Sinek contends that is because of our focus on the short term at the expense of the long term. In his book “Start With Why,” on of the most watched TED Talks ever he says; “Most people know What They Do, some can even tell you How they do it, but very few people can tell you Why they do it. It isn’t about making money.

“The Infinite Game” uses the United States as an example of a “Business.” It started with the War of Independence. The Declaration of Independence was not a statement of getting rid of the control of the country by Great Britain. It was about “We hold these truths to be self-evident, that all men are created equal. That they are endowed by their creator with certain unalienable rights, that among these are Life, Liberty and the Pursuit of Happiness.” That made the effort worthwhile. They then got to work on writing the Constitution which set out a series of enduring principles to protect and advance their big, bold, and idealistic vision of the future. That is a future that we still strive to achieve and will constantly be aiming at that vision. It is not an end game it is a journey.

In order to stay in the game long term, to stay in business, long term we must be good operationally at all of those win/lose games we play; market share, gross margin and expense control, asset management, etc.. That this is critical, is something on which we can all agree. But in order to have long term sustainable success it is also about the culture of the company. What makes each employee strive to be better at what they do in order to satisfy their customers.      

I highly recommend that you read “The Infinite Game” by Simon Sinek. It might provoke you to reevaluate your view on how your business operates. 

The Time is Now.

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A Guest Blog from Ed Gordon

“Ignoring America’s Talent Desert Won’t Solve the Problem!”

 

Reports of talent shortages continue to proliferate:

  • The National Association of Manufacturers reported an all-time record high of over 500,000 vacant positions (September 2019).
  • A National Association of Home Builders Survey found that over half of contractors had shortages in 12 of the 16 categories of construction work.
  • An October 2019 member survey conducted by the National Federation of Independent Businesses (NFIB) reported that 53 percent of small business owners had great difficulty finding qualified workers (88 percent of those hiring), This year finding qualified workers has consistently been the top business problem in the monthly NFIB survey.

William Dunkelberg, NFIB Chief Economist warned, “If the widely discussed showdown occurs, a significant contributor will be the unavailability of labor — hard to call that a ‘recession’ when job openings still exceeds job searchers.” This quote is based on official Bureau of Labor Statistics (BLS) reports: the 5.9 million Americans classified as unemployed (11/1/19) and the 7 million job openings reported in the Jobs Openings and Labor Turnover Survey issued on November 5. The BLS also reported that the number of U.S. vacant jobs has exceeded the number of unemployed for the past 17 months (August 2019).

 

The official BLS estimate of unemployment (3.6% in the 11/1/19 report) is based on an extremely narrow definition: only those who actively sought a jobs in the past month are classified as being unemployed. We believe that this measure of unemployment is very misleading. The BLS also currently estimates that about 95.2 million Americans over the age of 16 are “not in the workforce.” This is an remarkably high number that has persisted since the 2008 recession.

 

Our analysis of the probably characteristics of this group of 95.2 million Americans is:

  • Approximately 55 million people over age 55 have retired.
  • What about the other 40+ million people not in the workforce? The latest official BLS survey of this group finds that nearly 4.4 million respond that they want a job. About 1.2 million report that family responsibilities, schooling, medical issues, or transportation or childcare difficulties are keeping them out of the workforce. The significant growth of the populist vote in this nation indicates that a large number of people who lost their jobs in the wake of the 2008 recession have been unable to find full-time employment due to such factors as skill deficits, age discrimination, or inability to move to areas with relevant job opportunities. A variety of sociological data provide evidence that a sizable proportion of unemployed Americans are poorly educated and have few of the job skills businesses now demand. But we estimate that as many as 27 million Americans who are willing to work are educationally qualified but lack some skills needed for currently available jobs.

 

Including the 5.9 million Americans who the BLS officially reports as unemployed, these 27 million Americans could potentially help fill the 10.5 million jobs we currently estimate are vacant across the United States provided that they receive training from employers to update their skills. Based on these figures, the actual unemployment rate is over 16 percent!

 

A September Rand Research Report warned that the education-to-employment pipeline has changed little from previous decades despite technological advances, globalization, and demographic shifts. This has resulted in major shortfalls of workers due to: (a) inadequate general elementary and high school education, (b) limited enrollment in and completion of  post-secondary education programs, and (c) lack of access to lifelong learning and training supported by employers. We believe that a staged transformation into a suitable 21st-century education system should occur at the regional level involving the leadership of major community sectors. These programs are already underway in many communities. We have coined the term Regional Talent Innovation Network (RETAIN) for such undertakings. They, however, have not gained enough traction to have an impact on the overall unemployment situation.

 

In 1970 the United States had the world’s best educated and trained workforce. Today America is a spreading talent desert with too many poorly educated workers who do not have the knowledge and skills to fill the new jobs of the 4th Industrial Revolution.

 

We are now on an unsustainable labor economic course. A Deloitte and Manufacturing Institute 2018 Skills Gap study projected that 2.4 million manufacturing jobs would not be filled between 2018 and 2028 due to skills shortages with a potential loss of $2.5 trillion in economic output over that time period. We believe that other sectors of the U.S. economy will also experience significant economic losses because of the encroaching talent desert.

 

The time as arrived for regional public-private collaboration rather than empty political and business rhetoric. It is better to rebuild quality workforces at local levels rather than passively accepting continued skills declines and government programs that are ineffective or underfunded due to political divisiveness at the federal and state levels.

 

Edward E. Gordon is president and founder of Imperial Consulting Corporation

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It’s All About the People

It’s All About the People

Recently I came across this in Material Handling Wholesaler. It is well worth reading and talks to elements of the management job that we feel are critical for successful businesses.

7 Steps to Turn Employee Potential into Performance

Imagine on Monday, you discover that your meticulous, rule-following accountant and creative, eccentric marketing person have switched positions. How’s this likely to work out? In truth, some variation of this misalignment is common in most organizations.

The Waybeloe Potential Corporation was operating at the break-even point for the past five years. The CEO, Harvey Waybeloe was frustrated. Another CEO told him about an employee-alignment process that was delivering amazing results for other companies. Out of desperation he decided to try it. Within two years, profits increased from break-even to $3.2 mm! The fix? Putting the right people in the right seats!

Most business leaders say that 80% of the work is done by only 20% of the workforce. This 20% are the top performers. They usually produce 3-4 times more than the others. The main reason is due to job alignment rather than attitude or drive. Here’s evidence: It’s common for top performers to be moved or promoted and then become poor performers. Likewise, many poor performers become top performers when moved to appropriate roles. Bottom line: everyone can be a top or poor performer depending on how well the work aligns with their innate characteristics.

How do you deliberately create an organization where people’s work is aligned with their innate characteristics (abilities)? Here’s an overview of a proven process that was used above.

1. Shift your mindset from focusing on skills, experience, and education to innate characteristics first

It’s common for people who are “great on paper” to get hired and become poor performers. In that same vein, many top performers started off lacking in the “required” skills experience and education. When people’s work aligns with their innate characteristics, they can utilize their natural abilities and unleash their passion for their work. Also, the best training and management will not turn poorly aligned employees into top performers.

2. Select the right assessment tool

Many organizations use personality assessments in the hope of gaining more objective information about people to set them up for success. However, the results are usually disappointing due to four inherent pitfalls:
• What you think of as personality is mostly surface-level, observable behaviors; not what’s underneath, driving these behaviors. The drivers of behavior are more accurate, predictive, and stable.
• Assessment-takers usually provide different answers based on which of the following they consider: how they actually see themselves, how they believe others see them, and how they want to see themselves.
• Assessment-takers use a specific context or situation to answer the questions. For example, answers to questions related to “extroversion” (sociability and talkativeness) may vary depending on context differences: small vs. large groups, familiar vs. unfamiliar people, level of interest in the topic of conversation, etc.
• If an assessment is used for a job application, the applicant often has an opinion on what traits the employer is looking for and skews the answers accordingly.
• What’s a better option? Select an assessment that delves beneath the personality into what is more core or innate with people. This eliminates the biases of personality assessments and provides more valid and reliable data.

3. Establish trust with the employees

Inform the employees about the company’s commitment to align their work with their natural gifts. Don’t hide things or surprise people. People want to do work they’re good at and enjoy.

4. Develop an understanding of the innate characteristics being measured

Before you can align people’s innate characteristics with their work, it’s essential to understand what these characteristics mean. In other words, how each one impacts the way people think and behave. Now you have the basis to identify which characteristics are needed for different types of positions within your organization

5. Develop clarity on the job duty break-down

It’s important to know what people will do on a day to day basis in each job. The hiring team (direct manager and others with a major stake in position success) meets to gain clarity on the percentage of time spent performing each job responsibility. Group together duties that are very similar in nature (family of duties). Estimate the percentage of time spent working on each job duty family.

6. Determine which innate characteristics are critical and where they need to measure

The hiring team determines which innate characteristic is critical for each job duty family. They also agree on the desired range for each characteristic. For example, on a 1-10 scale the range for creative thinking should be between 7-9. Now you can develop an optimal range for each critical characteristic.

7. Administer assessment & align employees with job functions

Assess both current employees and potential new hires and compare to the desired ranges. Take the appropriate action based on how strong the level of alignment is. Top performers almost always fit into desired ranges for each critical innate characteristic. If this is not the case, you need to adjust your desired ranges based on the data. Here’s more information on aligning employees:

• When current employees don’t align with their jobs evaluate other positions within the company that do align well.
• Openly discuss available options with employees who are misaligned. Develop a plan to shift roles or tweak job descriptions when this is feasible. Frequently, there are other employees who’d be thrilled to trade positions or some duties that better match with their own innate characteristics.
• For applicants applying to open positions, only interview the people who align well with the desired innate characteristics. When you interview people who don’t align, you may be tempted to discount the assessment results. This rarely ends well.

In the end, the most important job of management is to maximize the ROI of its workforce. Peter Drucker said “The task of a manager is to make people’s strengths effective and their weaknesses irrelevant. The most important thing you can ever do as a leader is to put people in a position to excel rather than get by or fail. How are you doing in your most important task?

About the Author:

Brad Wolff specializes in workforce and personal optimization. He’s a speaker and author of, People Problems? How to Create People Solutions for a Competitive Advantage. As the managing partner for Atlanta-based PeopleMax, Brad specializes in helping companies maximize the potential and results of their people to make more money with less stress. His passion is empowering people to create the business success they desire, in a deep and lasting way. For more information on Brad Wolff, please visit:

www.PeopleMaximizers.com.

 

The time is now.

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Attracting and Retaining Employees

Attracting and Retaining Employees

 

On January 25th 2016 we published the first blog called Memorable Moments. It dealt with my early years and life. It stopped with the line “That was the beginning of the end.” And it was also the end of the beginning of my life.

Hewitt Equipment provided me with a tremendous opportunity. I was hired on a twelve-month contract. My mission was to find and fix what they felt was a problem with the computer system application in use to manage parts inventories. When I found the fix and got it implemented my job was completed unless we both agreed that I should stay.

This was the point at which I was given a gift of learning. A senior partner from Urwick Currie, his name was David Steele, was tasked with teaching me everything I needed to know about inventory management and business systems to manage parts inventories. He spent one day a week, all day, with me and only me. How many people are given that type of opportunity? I received this opportunity because of my university programs majoring in Mathematics and Physics, with minors in Statistics and Computer Science. In the early days of computer applications mathematics was heavily involved. For instance, there was no square root operator in the computer systems at that time. In using Machine Language, COBOL or FORTRAN programming languages, you had to develop a mathematical model to calculate a square root. Without totally boring you there was an error in the formulas used. The number “10” was put into the program instead of “1.” This meant that the Order Quantity for each part put on a stock order was too high by a factor of about 3.17.

I also was given an opportunity to go to Caterpillar in Peoria and meet with the Parts Management (Bob Kirk) and some of the founders of Dealer Data Processing (Larry Noe). We were going to build an interactive model to simulate our parts business under variable order point and order quantity conditions. Both of these men were extremely talented in their fields and took the time to deal with me even though I was only 22. I am told by coworkers at the time that I was a very impatient pushy person. That clearly is a description with which I will disagree. I mention this because of the view that the leadership and team members have about millennials and the younger workers in the Industry. I don’t think they are any different than I was at the same age.

That first six months left me with a hunger for more. I was a new hire. I was given a specific mission, a project if you will. It had clarity, a very clear objective and time line. I was given specialized training, by the consulting firm and Caterpillar experts. I was given a free hand. I had to make a presentation to the executive and make my case and get the changes I wanted to get made approved. I felt that I had a purpose and an important task.

How do we go about attracting and retaining these new employees? These younger workers? They are our future. I think we better figure out what we are going to do and how to get this plan implemented. Don’t you?

The Time is NOW.

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Coaching is Critical!

Coaching is Critical

Leadership, which is a required aspect or skill of management, cannot be done successfully without the leader being a great coach. Being a great coach means that you are a terrific communicator. However, time becomes your enemy. You really will never have enough time to provide pertinent feedback to your direct reports. So how are we supposed to be able to be effective as coaches?

In the world in which we work and live there is too much going on. We are having to constantly upgrade our skills. This is true for us as managers, as well as for our support groups and teams. As a result of the time squeeze and the need to be constantly upgrading skills, sufficient time spent coaching employees is rare. This is an area that has found a good amount of study at Universities and Think Tanks. How do we continue to be able to lead and coach and keep current with skills? Harvard brings us the concept of what they are calling “a connector.”

HR leaders surveyed by Harvard found that they expected Management to spend 36% of their time developing their subordinates, their team members. But a survey within the same organizations with the management found them saying that they spent 9% of their time developing employees. This is a tricky result. More time coaching is not necessarily the answer.

Another survey by Gartner of 7,300 hundred employees and 100 HR managers asked “what are the best mangers doing to develop employees in today’s busy work environment?” They created four different categories of management.

1) Teaching Managers:
Coach based on their own knowledge. This is advice-oriented feedback to employee job performance.

2) Always-on Managers:
Provide continual coaching, it is part of their daily work. This category is typically in alignment with what HR executives think that management should be doing.

3) Connector Managers:
Provide targeted coaching. They constantly are assessing skills and provide specific coaching from the best coaches available. Not necessarily themselves.

4) Cheerleader Managers:
They are supportive. Providing positive feedback and have the employees in charge of their personal development.

The most common type is cheerleaders, which represents 29% of management. While the category representing the least followers was teaching at 22%. The splits are relatively the same.
So, let’s go back to the statement that more time coaching is not necessarily the answer. This survey by Gartner found that “there is very little correlation between time spent coaching and employee performance.” “It is less about quantity than quality.” This is pointing out a stark reality. It is time we start teaching managers how to “COACH.”

As I mentioned last blog we are in the process of creating a coaching class. We are aiming at providing learning on coaching that addresses building trust with team members, tapping into employee potential, creating employee commitment, and actually executing and meeting goals and objectives.

We have referenced the International Coaching Federation (ICF) which has published a set of ethical standards for coaches to build this class. They ask coaches to pledge to do the following

 Show genuine concern for the individuals’ welfare and future.
 Continuously demonstrate personal integrity, honesty and sincerity.
 Keep confidences.

More on that list will come in the weeks and months ahead.

The Time is NOW.

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People

People

Nothing is possible in the parts and service business without people. We closed our last post with the fact that we have standards of operations that address the people subject. These are “traditional” standards which are based on traditional operational methods and systems and processes.

But our operations need to be tuned up. Let’s start with productivity. Do you think that with your current structures and personnel levels you will be able to handle the business that will come with increased sales and market share we discussed last time? I submit to you that it will never be achieved if all you do is continue to do what you have always done.

The Industry started in the late 1970s and early 1980s to look at sales per employee as the holy grail of headcount. However, most companies looked at those standards and said to the operational people that they needed to operate at higher and higher sales per employee levels. That the higher the number the better it was.

WRONG.

The truth is that if you do not have enough people to do the job properly the people will decide what is important that needs to get done. What that is to them is satisfying the customer that the yare dealing with at the moment. If there is no time for anything else – such as calling back on backorders or calling out to customers who have not been seen or contacted for some time, or anything else to protect or grow your market share – so be it.

That is exactly what we have today with most parts businesses worldwide.

Is it any wonder that the authorized equipment dealer has a parts market share is in a range of 20% to 40%? Quite frankly they don’t deserve even that much.

Let’s go back to the fundamentals of the numbers of people to employ. Let’s look at financial standards based on the compensation packages offered to employees. This compensation package covers all payroll expenses, sales, wages, commissions, as well as all benefits such as medical, vacation, paid time off, etc.

The following are standards that are normally what I see in best practice dealers.

 Parts < 7%
 Service < 15%

If you are higher than the above measures then you need to focus on innovation. Improve methods, processes, systems and everything you can to achieve the personnel numbers above. The only way you can achieve radical improvements in operational performance is if you get all of your employees involved in the process. If you are lower then you are unable to satisfy the customer needs and need to hire more people. It is that simple.

The Time is NOW.