Another Business Transition. This is the critical one…and we are missing it.

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Another Business Transition. This is the critical one…and we are missing it.

Today our Founder and Managing Member Ron Slee writes about adapting to our current realities in “Another Business Transition. This is the critical one…and we are missing it.”

I have had an interesting and extremely rewarding career in the equipment world. I never dreamt about working in this industry. It just happened. 

I was 22 years old, and it was a tough time to get a job in the data processing world. I wanted to work for IBM. I had a mathematics -physics education with minors in statistics and computer science. I made a choice on education that didn’t make a lot of sense, looking back. I was a generalist by nature and a teacher by aptitude. 

I was skiing north of Montreal after leaving a job working in a custodial role at a place called “Boys Farm and Training School.” It was started by my maternal great grandfather, and I wanted to see what it was all about. I had a group interview, kind of like a casting call, and got hired as a “control figure.” I had been a serious swimmer and had a physique then. I learned a lot at that work particularly in personality profiling as that is what they trained me to do. It was too much for me, working 7:00 AM to 11:00 PM daily and being on call overnight. I had one day off every two weeks. I needed a rest.

The VP Finance for the Caterpillar dealer in Quebec, John Swift, called my home looking for me. I had taught two of his children at university, so he knew me a bit. He asked me to come for an interview and see if there was mutual interest in an opening they were trying to fill. I got the job and was hired on a one-year contract to find and fix a problem in the business system that they had installed. Before the year was up, I was hired full time.

I spent ten years there and it was one of the most impactful ten years of my life. I was given the opportunity to get involved wherever they wanted to make changes and improve things. In other works, look at a system, determine how it could be performed in a different and better manner, create the change plan, and implement it. It was absolutely a perfect fit for what would keep me challenged. My work even today continues to be a perfect fit.

Currently we are developing a lifelong learning platform for people between the ages of 16 and 76. What I call Workforce Development. I still teach in the conventional manner, what I call the “Sage on the Stage,” but it is rare these days.

I started in March of 1969. That was 55 years ago. Suffice it to say I have seen a lot of change in my career. Some of it has been good, making performance better and improving customer satisfaction. Some of them not so good, economic changes, which caused pain.

Throughout that time, however, the business has been transaction driven. Process things. Orders, complaints, physical counts, monthly reporting etc.

During that time, we have experienced serious changes in prices. Inflation was causing some of it. Some of it is caused by dealers wanting to increase their revenue lines. The thing that was missing was data. Working in Canada, and Quebec, in the parts business we had to contend with foreign exchange, custom duties and taxes. That meant that a part number could have up to six different prices depending on its end use. Our customers were having fits with it as they had purchased parts that could have been six different prices. I was asked to look at it and see if I could produce a solution that was good for the dealer and also the customer. That was my first dive into data. 

I went through everything and created what I called “Matrix Pricing.” It was based on the price of the part. It aggregated all demand and put it into one “Bucket.” That way we “normalized” the distribution of partes sales across multiple duty and tax applications. I was able to use my mathematical statistics education for the first time. I have been data driven ever since.

The industry, however, has not become data driven, they are still transaction driven.

Over the years we have experienced many economic cycles. Each cycle has resulted in actions at the dealer level. Most of the action has been a combination of increasing prices and decreasing expenses. When I talk about decreasing expenses, we should never forget that personnel are the largest single expenses in a distribution channel. That to many of you will explain why I have been telling anyone who would listen that we have chosen profit over people in how we operate our business. We have reduced the number of people doing the work to maintain a reasonable net income. 

We were still a transaction driven world.

The results are quite clear. Price increases caused customers to look for other suppliers. Personnel reduction meant that customer service declined. That led to more and more of the same to survive. As we have seen many did not survive. As an example, today we have two Caterpillar dealers in Canada. When I started there were ten. You can look around and see the same thing in every geographical area and every product line in the capital goods industry.

Meanwhile we have had some serious changes in technology. We have also had some “Revolutionary Reformers.” That is what I have named the “disruptors.”

Jeff Bezos is an easy example. He saw a transaction business that had not changed in any meaningful way for a century. We brought the purchasing of books online. Then, however, he had data. He was wise enough to look at the data and change his business to be the supplier of anything and everything that a consumer wanted. He became the largest retailer in the world. I don’t want to forget Sam Walton. He changed distribution in very meaningful ways as well. He told his suppliers that they would be his only source for their products, but he had two conditions. They were never to let his shelf be empty and he would pay for their products when he got paid by the customer at check out.

The internet arrived in the late 1960’s and became rather ubiquitous with America Online in the 1970’s. Most of us have and continue to use the internet. That change and disruption was HUGE. Social media has caused all manner of turbulence in society. Companies like Google and Meta and Twitter and TikTok have caused much debate. No matter because it is here.

How have we in the equipment world adapted to this reality? Not very well. Let me ask a few questions if you think I am being too critical.

What percentage of your parts business comes in over the internet?

What percentage of your service work, field, or shop, has appointments created on the internet?

What percentage of your equipment sales are done over the internet like TrueCar?

What percentage of your rentals are transacted over the internet?

What percentage of your receivables are paid directly to your bank?

How did you do?

Let’s turn the corner and look at the parts business.

How many of you measure your parts availability as a percentage of fill? A pretty common metric. Why not supply 100% of the customer parts needs next day? That is a data driven question. NOT a transaction question.

Here are two other quite easy data questions.

  • What are the potential parts and service revenue for each of your customers? How can you answer that when you don’t even have accurate machine ownership? You can’t. 
  • What percentage of your customers who bought something from you in 2023 have not bought anything from you in 2024? Most of you don’t know.

Market coverage is typically done by geography. Most of you use an 80:20 rule in market coverage. Very few of your equipment sales associates will call on a customer who does not own any equipment for your brand. Why is that? I can go on and on.

The point I want to make to you is remarkably simple. Hire some people who have a statistics background and let them look around your data and see what they find. The first thing they will find is that your data is not exactly accurate. You typically don’t have any database management protocols of discipline. 

As Donald Rumsfeld is famous for saying “We don’t know what we don’t know.” Neither do you.

The time is now. 

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Strategic Partners in Employee Development

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Strategic Partners in Employee Development

Ron Slee makes an important announcement in his blog post, “Strategic Partners in Employee Development.”

An important step in the employee training world is taking place. Learning Without Scars is joining into a Strategic Partnership with four other businesses involved in employee development and training.

The McDonald Group, Inc.

Over the past four decades of collaborating with dealer management teams to help them improve profitability, market share, cash flow, and customer retention Walter McDonald has built a series of powerful learning tools. The focus of the McDonald Group is on working with and coaching dealer leadership teams worldwide to build their knowledge and skills on how to employ world-class best practices and achieve high-profit dealer benchmark performance levels The Group has recently published their 10-volume Master’s Program in Dealer Management book set. McDonaldGroupinc.com 

Winsbyinc.com. 

Winsby offers machinery dealer marketing services that work. They will build your customer email lists, create, and send effective emails, conduct customer satisfaction surveys, manage your website, and produce all the creative. The results of their work are phenomenal: customer retention is 30% higher, customer spending increases 2-3 times and customer purchase frequency increases 2-3 times. Contact Debbie Frakes, Managing Director, Winsby, Inc. 312-870-5678, dfrakes@winsbyinc.com.

HIVEQR.com. 

HIVE Quick Response. First-trip service job completion is essential for improved customer satisfaction and technician productivity. The HIVE quick response system starts with placing encrypted decals with unique identifiers on each piece of equipment. These include model and serial numbers, GPS location, and other vital information. In 45 seconds, a service request can be submitted and your team will have all the vital information they need from the start. No more spending countless hours on the phone tracking down information and no more frustrated customers stuck waiting on hold. Results? 60% increase in first-time completion. 200% reduction on follow-up phone calls. Fifteen percent increase in technician utilization. 100% accurate equipment information. Contact: Steve Ross, President, HIVEQR, 407-234-4150. Steve.ross@hiveqr.com. 

LearningWithoutScars.com. 

For Dealers in need of job function-based online training classes, seminars, and webinars, LWS has developed an extensive catalog of relevant classes and job function training. LWS supports six distinct PartsDepartment employee categories with 36 individual courses and six Service Department positions with 36 individual courses. Overall LSW has eighteen job function skills assessments and 108 subject-specific classes available today. I highly recommend Ron Slee and his team for his highly popular dealer training resources. Contact: Ron Slee, 760-413-0708, ron@learningwithoutscars.com

BCAKC.com. 

For manufacturers interested in customized support for dealer service and parts department training programs, Burgio, Cooney & Associates offers facilitator-led workshops, interactive web-based training, self-study workbooks, and video technologies. BCA designs gap assessments, curriculum development, training material production, and expert delivery. The BCA team members are experts in training—sales and customer service, technical skills, product knowledge, and supervisory skills. When your front-line employees are well-trained, they are better prepared to answer customers’ questions and offer solutions, making customers more likely to return and again.  Contact: Michael Cooney, 816-979-1414, mike.cooney@bcakc.com.

In 45 seconds, a service request can be submitted and your team will have all of the vital information they need from the start. No more spending countless hours on the phone tracking down information, and no more frustrated customers stuck waiting on hold. In 45 seconds, a service request can be submitted and your team will have all of the vital information they need from the start. No more spending countless hours on the phone tracking down information, and no more frustrated customers stuck waiting on hold.

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A Special Announcement from the NTDA

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A Special Announcement from the NTDA

The National Trailer Dealer Association (NTDA) offers resources to their members across North America. Established in 1990, NTDA has strengthened the voice of independent semi-trailer dealers within the trailer industry. This week, they have shared a special announcement on their website:

NTDA Announces Partnership with Learning Without Scars to Provide Online Parts, Service, Sales Training

The National Trailer Dealers Association (NTDA) Board of Directors voted at its April 11, 2022 meeting to partner with Learning Without Scars (LWS) to provide online parts, service, sales and marketing training for members. LWS is accredited by the International Accreditors for Continuing Education and Training.

INDIVIDUAL SKILLS ASSESSMENTS

The NTDA will work with LWS  to  develop  trailer-specific  content for members in the future. The site, learningwithoutscars.org, provides comprehensive online learning programs for dealer employees starting with individualized skills assessments. The assessments allow the Learning Without Scars staff to create a personalized employee development program.

Based on assessed skills, the employee is  asked  to  select  from  classes designed for their  skill  level,  allowing  them  to  address  gaps in their knowledge level. This allows  employees  to  move  through  four progressive categories of learning: Developing, Beginning, Intermediate, and Advanced.

Classes are designed to offer both employees and employers something that matters: continuous improvement to the benefit of each. Too often, we hear employees talk about wanting to have a career path, but not being sure where they fit in their profession. Learning on-demand classes build and develop the professional skills an individual needs to continue to grow and make progress with your company and your industry.

Managers/supervisors have access to employee skills assessments and employee training scores. There are 108 online classes available in 12 languages. Online assessments and courses are available for $125 per each.

DEALER-SPECIFIC COURSES

Courses can be taken on a PC, a Mac, a tablet, or a smartphone. A student requires an Internet connection to access all course materials. Supplemental reading for each class is available as a .pdf, so a .pdf reader such as Acrobat is recommended any device on which students are taking courses. Students will need access to speakers for video clips and audio tracks (these are optional).

Classes are categorized by department,  job  function,  and  skill  level to ensure employees are able to target the right skills. Learning on- demand programs cover Parts, Service, as well as Selling and Marketing of Product Support.

NTDA Members can sign up for LWS’ free e-newsletter at https:// learningwithoutscars.org/signup, or take advantage of free blogs, podcasts, and audio learning opportunities.

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Quality of Communication Channel

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Quality of Communication Channel

In tonight’s blog post, guest writer Ryszard Chciuk walks us through the information our customers need and want to know. The quality of the communication channel directly impacts your customer’s purchases, especially as they move through the research phase before buying.

Ron Slee reminded us (see From Paper to Glass) what he had talked perhaps for decades about the three questions that a customer asks when they need to purchase parts from a dealer:

  1. Have you got it?
  2. How much is it?
  3. How long do I have to wait to get it?

These are the same questions customers have when they want to purchase something else or they are looking for any information regarding their equipment.

So, what does your customer do when:

  • they are going to replace their old machine with the new one?
  • they want to get rid of their old equipment?
  • they think about additional attachment to their old machine?
  • they are looking for spare parts?
  • their machine is down in the middle of nowhere?
  • they are looking for the spec sheet of the older machine model?
  • they miss somewhere an Operators’ Manual?
  • they have to estimate the total quantity of fuel for their new project?
  • they immediately need any other kind of information related to his fleet?

Your customer is doing the research.

Mets Kramer in Candid Conversation with Ron Slee (The Digital Dealership) said:

  • … of the 85% of all the research the customer does is now done digitally, online, prior to making a phone call.

Seven years ago Acquity Group, part of Accenture Interactive made a survey of 500 procurement officers (B2B) with annual purchasing budgets in excess of $100,000. What did they find?

  • Only 12 percent of buyers want to meet in person with a sales representative when determining a purchasing decision and 16 percent want to discuss their purchasing options with a sales representative over the phone.

In the 2014 Acquity Group State of B2B Procurement study they also stated:

  • Thirty percent of B2B buyers report they research at least 90 percent of products online before purchasing.

I am afraid a majority of dealerships are not able to interact with their modern customers in a new way. As a born realist, I think nobody in the construction industry is ready for that, despite everybody is having at his disposal proper technology.

Your existing and, even more important, potential customers changed their search behavior, within the last several years, but you have not noticed that. If you are going to neglect that fact, your company goes into dire straits. Be aware that:

  • 80% of B2B Buyers Have Switched from Suppliers That are Unable to Align Their Services with Buyer Expectations (from the Accenture report for 2019).

Your company, like most dealerships, from time to time is running sales campaigns. Usually, it is done with the use of an electronic channel. Are you aware, it has no advantages over the 20th-century traditional campaign (with the use of a phone or snail mail)? It is because you present your offer on your static website and it contains extremely exciting form “Please contact us for the price or additional information”. How many times a year do you receive back that form filled in?

You fail because you stubbornly stick to so-called Billboard Marketing. If you want to change that, please read about Digital Marketing. Mets Kramer presented there his view on today’s marketing. Mets differentiates Billboard Marketing from the more 21st-century alike Engagement Marketing.

In fact, it does not matter whether the campaign is run with help of any e-mail platform (newsletters), Google, Facebook, or others. A successful campaign brings your potential customer to your dealership, to have a look at your yard, warehouse, service vans, and workshop. This is the way you can easily initiate customer’s thinking about starting or strengthening friendly relations with your staff. The physical presence of a customer on your street is not necessary. In the 21st century, your website is the main place where this can happen. Does it? Be aware that:

  • 83% of buyers use supplier websites for online research (from the Accenture report for 2014).
  • only 37 percent of B2B buyers who research a supplier’s website feel it’s the most helpful tool for research (from the Accenture report for 2014).

Of course, your IT provider can change static pages into dynamic ones, they can use new software for generating modern layouts with nicer pictures or even short videos, etc. Everything looks wonderful, but it is only face lifting. The question is if you provide your customers with the information they are online looking for.

Mets Kramer, in the series of articles about Digital Dealership (search for “digital dealership” on the blog), reminded me of my dreams about a “digital” after-sales department. I began to think about it at the end of the 20th century and it never became real. In the next article, I am going to present to you some obstacles which I had to struggle with. It’s a pity, I’m certain that after a quarter of the century later, your road is cobbled with similar or the same problems.

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From Paper to Glass

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From Paper to Glass

In a recent Podcast with Alex Schuessler, we were talking about technology and the changes that have taken place in the marketplace within our Industry. I have long used the example of the Steam Engine being replaced by the Electric Engine of how we resist changes. Yes, the tool was changed – the engine – but the methods and procedures did not change for a generation. Changing the tool was traumatic enough for the leadership of the day. They couldn’t handle that much change in their lives.

Fast forward to the current situation and the area of technology. The Large Computers arrived in larger businesses sold by consultants for the most part. Thus, a new tool was introduced to the market. We wrote everything on our usual forms and sent the “paper” documents to what was then called “Data Processing.” The information on the paper was punched onto cards. These cards were then processed through readers and then passed on to the computer for processing. The computer was then used to print a report of what was punched into the cards and processed that was sent back to the originator or the document in the first place. This was a lot of extra work. It was justified in the speed with which it could be processed once it was corrected.

The computers changed and the need for punched cards was eliminated when we had the arrival of “Computer Terminals.” This is the beginning of what Alex dubbed the “Paper to Glass” transition. It is a beautiful description of what has happened in dealer business systems, we have taken the older processes and procedures and methods of writing things on a piece of paper and instead of writing them down we have typed the information into a computer screen, from writing on a piece of paper to typing on a screen of glass. Rather a good precise description. This is exactly the same as changing the Steam Engine to an Electric Engine.

Typically, a generation is described as twenty years. With the dates of the 1960’s as the starting point for computers to the 2020’s we are talking about taking three generations to adapt and adjust or methods compared to one generation in the 1800’s. How smart do we appear to be now?

I have talked for years, perhaps decades about the three questions that a customer asks when they need to purchase parts from a dealer. Have you got it? How much is it? How long do I have to wait to get it? I believe that is very straight forward. These are the same questions I have when I want to purchase something. BUT. The first question someone asks when a customer calls into a dealer to order parts or walks into the business is never one of those three questions listed above. No, the first question we ask is “Who are you?” We need to know that because the first thing we have to enter on the glass is the customer number. It is very similar to writing the customer number of the order parts sales order form. Does that sound like progress? Or have we simply gone from paper to glass? Can’t we do better than that?

If we look at the service department, we have similar issues. We need to conduct an inspection, either with telematics and sensors or a physical inspection, to determine what is wrong. Then create a quotation, which in most cases is an estimate. Then determine the time line for the repair, establish a schedule, assign the work and complete the work to fix the problem. Of course, it is more complicated than simply finding what part is required to compete a repair but that sounds like a paper to glass transition to me. What about standard times and flat rate pricing? What about understanding objectively the technical skills of each technician and assigning someone to complete the job who has those skills?

I can go on and on in this vein.

Today we have a smaller number of DMS providers in the industry; CDK, DIS, EBS, e-emphasis, Infor, JD Edwards, Oracle, SAP, XAPT and others. (I am sure I missed a few) Each of them is based on the Paper to Glass process.

The real dilemma in all of this to me is that when you change your DMS it is not the cost of the hardware or even of the software that is the real expense. No, it is the retraining of all of your employees in the new methods that are being introduced. Then you go through the curtain on never wanting to go through that change again. It was so painful.

So, Alex called this “Paper to Glass” and he is in the Technology aspect of the industry. I think he is on to something very important and we will talk about this more as time passes.

The Time is Now.

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Preventative Maintenance and the Service Agreement, Part 1

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Preventative Maintenance and the Service Agreement, Part 1

In Part 1 of a two-part blog, guest blogger Ross Atkinson talks to us about preventative maintenance and the service agreement.

 

There is a phrase you may have heard of before: it’s called preventative maintenance. If you are in the rental business, you are fully aware of the importance of keeping your equipment up and running as much as possible, generating revenue for your business. To ensure that this happens and to avoid those costly breakdowns, you need to spend time doing scheduled maintenance.  

 

Just about every manufacturer has a recommended maintenance schedule. They offer defined job codes with the time necessary to perform preventative maintenance steps at scheduled intervals. These codes not only tell you the time required to perform the maintenance, they can also include detailed descriptions of the repair task and sometimes a list of the required parts. These schedules not only cover the primary equipment but also sub-components like an undercarriage. Many of the schedules are based on hours of usage whereas others are time based.

 

For rental equipment, it’s pretty easy to keep track of and know the timing of the maintenance needed because you are always in physical contact with the equipment when it comes back in off rent. Even if the equipment is out on long-term rentals or leases, factory installed GPS transponders are pretty common nowadays or can be installed by your dealership. Knowing the current hour meter or mileage reading is the key to estimating the timing of the next service interval and allows you to plan your service workload accordingly.

 

But let’s look beyond rentals. What about your customer’s equipment? As Ron has mentioned in his classes, it is your goal to give the customer the best service possible and to reduce the repair costs for the equipment they own. Why not use these same principals of maintaining a rental fleet to upsell and offer your customers the same service? 

 

You see, I’m pretty passionate about this subject. I believe that dealers are leaving money on the table and missing an opportunity to offer exceptional service. Too many dealers have not even considered going down the customer preventative maintenance path. I was introduced to the concept of service agreements many years ago by a gentleman by the name of Mark Caldwell. The knowledge he had and how he went about selling service agreements to customers was truly amazing.

 

Mark created his own manual on the entire process, a good 3 inches thick. It covered everything from what was being offered to the customer cost savings formula to how it was to be implemented and managed. He used to say how so many service managers would convince management to buy a service truck and then try to figure out how they were going to utilize it. Mark managed to correlate the number of service contracts to a truck. Boy, did that make for an easy conversation with management to justify the purchase of a new service truck after signing the required number of contracts!

 

We will continue next week.

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Are Bricks and Mortar Going to Survive the Internet Era?

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Are Bricks and Mortar going to Survive the Internet Era?

 

During the past fifty years, most of my work life in this Industry, one of the most significant

‘barriers to entry” in the equipment industry, and in fact, capital goods industries has been the ownership and control of proprietary information. For instance, where to buy a part. A specific part, a bearing, for example, was purchased from an authorized dealer typically because the consumer did not know of any other source. Repairs and Maintenance were the exclusive domain of the authorized dealer for a similar reason. There was no availability for the independent mechanic to service manuals and technical literature. There clearly has been a radical change here hasn’t there? Just ask Google or another search engine whatever you want and they will typically have an answer. Even Alexa or Siri or Bixby will give you an answer on your cellular telephone.

Let’s start with some facts. In the US the standard in the retail sales Industry used to be 10 square feet of store space for every person in the country. In 1998, after a substantial increase in the square foot assigned to retail sales, the retail sales per square foot had dropped from $200.00/ft2 to $150.00/ft2. In 1999 the International Journal of Retail and Distribution Management reported that consumers’ shopping time was down 31% and monthly mall visits were down 47% with stores visited per mall visit down 57%. Clearly something was going on here.

While this was going on Amazon came onto the scene. They started business on July 5, 1994. From that launch date the impact that Amazon has had on retail sales has been nothing short of amazing. In 2019 Amazon had a market share of e-commerce in the USA of 52.4%, Non-US was 5.7% for a worldwide market share of 13.7%. In that same year, 2019, e-retail sales accounted for 14.1 percent of all retail sales worldwide. This figure is expected to reach 22 percent in 2023.

I first used the internet in 1973 through a Service Bureau in Canada via a business called I.P. Sharp Associates. Ian had direct real time access, on line, to all financial data worldwide through the stock markets. He also provided international associations, such as the World Bank, direct access to financial information. He later sold his business to Reuters who kept the news piece and sold the financial piece to what is now provided by Bloomberg. At that time there was no AOL. The general public was not on line yet. That is only forty-five years ago.

Today many business systems offer online “portals” for the public to search through for a part or information on a repair or maintenance for equipment. Today there are a multitude of businesses from whom you can purchase just about any part you need from an alternate source to the authorized dealer. In automotive Genuine parts through their NAPA stores is a direct competitor to the authorized car dealers. In many cases, as Forbes once called it “at a price that will make you weep.” In maintenance and repairs we have seen Mr. Muffler and Midas Muffler forcing the dealers into providing their off brand technical services like Mr. Goodwrench. In the construction equipment world in North America surveys are conducted nearly every five years and that data tells us that maintenance has been completely moved away from the authorized dealers. In fact, labor market share, depending on market area ranges from 8% to 15% of the total labor available. Of course, there are outliers in both directions. The parts market share is not more than 40% any more when in the late seventies it was in the range of 80%.

In 1980 one of the first internet-based buying options was brought out to the market. That parts ordering portal never achieved a portion of the dealer parts business in excess of 10%. Notice the difference between the Amazon model and our model. Amazon started with books and sold their books at a lower price than the local book stores. Even Borders, a major book store retailer was a victim of Amazon. They are no longer in business. What did Amazon do that the authorized equipment parts suppliers didn’t do. They lowered the prices. Their logic was when the customer is the coproducer of the work, they deserve to get a better deal. No one has as yet tried that approach as an authorized dealer. The aftermarket suppliers have already lower prices at their disposal.

So, there is the dilemma. I hope you can see it coming. It is that light in the tunnel of the train roaring down the track. Are you going to sit back and let the internet-based businesses penetrate even more into your parts and labor business or are you going to do something about it?

The Time is Now. If not now, when?

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Balancing Skills in the Workplace

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Balancing Skills in the Workplace

Imagine if you will, it is the middle 1980’s and I am working with a John Deere dealer and we are looking at their Service Department. We were reviewing processes and systems and methods and work flows. We also determined that there was a need to review the skills of the technicians and all support functions in the department.

In those days we didn’t have much in the way of personnel management practices in the Industry. We didn’t have a way of balancing skills in the workplace. We had to build the complete structure and reporting criteria. We created three data files; current employee personnel and payroll information, the skills required to each of the job functions, and the determination of the actual skills of each of the employees. To determine the skills of each employee we created what I called a “Skill Set Inventory.” This inventory consisted of questions with multiple choice answers that the employees they completed and submitted the forms to me.

Then we catalogued the answers and grade ranked all of the employees – we matched these results with the payroll records. The final step was to sit with the management of the department to discuss the skills of each of the employees, without the benefit of the employee’s personal thinking, and grade rank them – again we matched these results with the payroll records.

How do you think the management compared with the employee scores and the payroll records? It was very revealing. The management was embarrassed. There was some matching of the results but very little. It turns out that the management had favorites and seniority had an outsized influence on the results. They had not learned the art of balancing skills in the workplace.

This was an extremely important exercise for me. I conducted these types of reviews with several dozen dealers across many different manufacturer dealers. The results were the same. That took us to the place where we needed to develop an objective assessment tool for dealers.

There are many companies within our Industry who have created assessments, we are not alone in this arena. There are manufacturers, personnel companies, associations and others involved, which cover many aspects of the individual jobs; however, you need to be the judge of the value of the results from any job assessment. You need to do your own due diligence.

Our assessments relate to the specific jobs, for instance, the counter and telephone sales employees, or the service office employees, or the product support sales person. There are six job functions within the parts department, eight in the service department and four in the product support selling and parts and service marketing groups. Let’s review how our assessments were created for a moment. For each class we have conducted for the past thirty years, and the more than ten thousand employees we have had in our classes or webinars, we have had questions and work groups, and evaluations throughout. From our classrooms and webinars, we created our subject specific classes, and in each of these subject specific classes which we called “Learning On Demand (LOD)” products we had assessments and tests. This is the foundation of our Skills Assessments programs. We selected for each job function assessment, from the pool of over one thousand questions, the job function assessment questions. Then we have had more than thirty-five hundred people take these assessments so that we could put the job function assessments into the marketplace with confidence.

I am excited by the assessment programs. We have received more than thirty registrations today and I am expecting more than two hundred this week. The same again next week. The market seems to be rewarding us with their orders. We thank them and will continue to provide leading edge tools for dealers to improve their processes, procedures, systems and methods. We aim to assist each employee working in this Industry with products that will help them realize their potential.

We believe that is our mission and our life’s work.

The time is now.

A Pathway to Learning

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A Pathway to Learning

Learning Without Scars Classes

Since we started a business to provide classroom training for parts and service operations and product support sales and marketing, we have been constantly creating and redesigning what I have always called “Learning Paths.” A pathway to learning is what we try to provide to all employees to help them realize their potential.

With the classroom training we established the first pathway to learning with management and supervision. For this, we designed two-day classes consisting of eight specific subjects. We then developed the three-year program that had twenty-four subjects covered and taught. We offered this and conducted these classes worldwide for major construction equipment manufacturers. We did the same thing for dealership associations. In the mid 1990s we created a series of videos for dealer associations, that continue to be used in certification programs for parts managers and service managers. Clearly the methods, systems, processes and requirements in the past twenty-five years have changed. The modern pathway to learning is reflected in the creation of our skill assessments and in the evolution of our subject specific classes. Much has changed.

As I mentioned yesterday we offered Planned Learning Programs, which we referred to as PLPs. These were the three-year programs built for leaders in the Parts and Service and Product Support Sales groups. During the twenty-five years these were offered we have had over ten thousand people attend the PLPs – Executives, Managers, Supervisors and Foremen from all around the world.

Next, we created Planned Specific Programs, or PSPs in our shorthand here. These programs were designed for the people doing the work. The people that I call “Heroes.” They take the orders, pick the parts, pull the wrenches, inspect the machines, manage the assets, and drive the trucks. These are the people who serve your customers. These are the people that keep your customers coming back.

With this most recent change to our website we are introducing the next evolution of our Learning Paths. This has been designed to allow the individual employee to create their own individualized Learning Paths. As you will have read over the past ten days, if you follow our blog, we start everything with a job function skills assessment. We then match the results of that assessment to the four levels of skills: Basic, Intermediate, Advanced and Expert. When the individual employee selects our classes tabs, and the department in which they are interested they are asked for their skill level. Then, they will be presented the classes that our years of teaching and thousands of students, have indicated that should be covered to provide the employee the ability to improve their Skill Level.

As you can imagine this has taken some time to develop and put together. It provides each employee the opportunity to personalize their own learning, to select the classes they believe will address the “gaps” in their skills and knowledge. Of course, the Dealership and the Leadership can also be involved in selecting the classes that should be taken. That will never change.

Now we are adding additional tools that will allow us to have “Virtual” meetings with students to discuss the classes and, in effect, simulate the Real Classroom after they have completed one of our Subject Specific Classes. This is what educators are doing now across Grade School, Middle School and High School across the country. This is also now being used at Junior Colleges and Universities.

Education and Learning has changed a lot over the past twenty-five years. The changes coming in the next five years will be even more dramatic. No business, whether in manufacturing, distribution, wholesale or retail or business associations can rest on their laurels. There has been too much change.

The equipment has changed, exotic materials, telematics, computerization. The systems have changed now using electronic catalogues and shopping carts, finance and payment methods have changed with “Square” and Touchless Credit Cards. The arrival of Artificial Intelligence and Drones for Job Management and Control. The world has changed.

The younger generation is much better prepared for these changes than the older generations. Their time is here and coming. We either adapt our systems, methods and everything else as of now or face trouble. We, at Learning Without Scars, have chosen to adapt and it has been extremely exciting and energizing. Is this also an opportunity for each and every business across the world? I believe it is.

The choice is yours.

The time is now.

For more information on finding your own pathway to learning, please visit our website at learningwithoutscars.org

Building the Foundation of Learning

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Building the Foundation of Learning

Building the Foundation of Learning

Our initial training business was called Quest, Learning Centers. We incorporated Quest in 1992. This is where we first deliberately began building the foundation of learning. Originally our classes spanned fifteen hours, over two days, and was designed to cover four subjects; operations, selling, management and standards of performance. In each four-hour time block we covered two specific learning subjects. That provided a learning platform of four classes. Then we created additional learning levels to end up with three different levels of classes. That developed a total of 24 classes for each of parts, service and selling. In the middle we created a marketing class and a customer service class. That gave us a total of 88 classes.

In the early 2000’s we moved to webinars. Each webinar was around forty-five minutes. I was not happy with webinars as I could not see my students. We adjusted our delivery and used a HD camera connected to our computer. We alternated power point slides with live talks using the camera. It was better but didn’t make me very happy as a teacher. Still, it was another step in building the foundation of learning.

In 2016 we decided to transition all of our learning products to the internet. We incorporated Learning Without Scars and started to build the curriculum. Today we have thirty classes up and available in both parts and service with five classes in each still under construction. For Selling and Marketing we have twenty-four classes up and available.

These subject specific classes are each approximately three hours duration. We start with a pretest to understand the prior knowledge of each employee before they start the class. We then have power point slides with audio tracks which was developed and evolved from our classroom training. Into this learning we inserted film clips that accentuated a specific point. At the conclusion of the class we had a final assessment on which the student had to achieve a score of 80% to pass. Then a short survey upon completion of everything after which the student could get their certificate of achievement.

In recent learning research and development, it has been proven that with a quiz or break in learning every ten or so minutes that learning retention goes up by 50% so we are in the process now of updating all of our classes to reflect this truth. I am sure that our classes will be in a constant state of development as more evidence comes forward regarding how people learn. I am committed to helping each individual to be able to achieve their potential.

Each step along the way, in our quest to help each person achieve their potential, is our need to listen to our clients and their employees and respond to their needs and wants just like every other business. They suggest additional classes and learning tools. This has allowed us to develop a series of, what we are calling, Learning Paths for each Skill Level achieved in our Job Function Skills Assessments. Initially we designed our training programs and we determined the structures that the individual students were to follow. We called them Planned Learning Programs and Planned Specific Programs and Video Classrooms. Now we are providing our students with the tools to be able to design their own learning path. They, more than we, know what they need in order to become better at what they do. More on that tomorrow.

The time is now.

For more information about what classes are right for you, please visit our website at learningwithoutscars.org