, , ,

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.

, ,

Coaching

Coaching

We are constantly looking to our clients to help us determine what additional learning classes we should create. We get a lot of very good suggestions.

Recently, I was asked to create selling skills classes for service management and supervision, foremen and customer contact personnel. We are creating those classes now.

Another suggestion from our clients was regarding the management courses we offer. We have taught management and supervision now for over twenty years in the classroom, with webinars and most recently our internet-based classes. However, it was tied to the functions within the department. It was never “pure” management functions. That program is now under development.

Another learning area that was requested of us was coaching and mentoring. We were first approached with the need to help a specific individual with their management skills with their team. Communications skills were specifically requested, as well as leadership and trust. That was matched with another request to assist in the development of a new manager in a new job function.

It is always necessary to make changes in our programs based on what is needed in the “learning arena.” As our industry changes, I adapt as well.

Coaching is the subject I would like to explore more with you this week. Personal success is a common and constant pursuit for talented people, for curious people, for self-motivated individuals. Satisfaction comes form being able to tackle and overcome difficulties in our lives. As John Wooden said we he defined SUCCESS. “Success is the Peace of Mind, which is a direct result of self-satisfaction in knowing that you made the effort to become the best you are capable of becoming.”

I have been telling the story in classrooms and in talks for a long time now about the individual who at sixteen years of age, let’s call him James, is told that they have POTENTIAL. That is a wonderful thing. It holds such promise and hope. Now I would like you to imagine that James is now sixty-six years of age and is still told he has a lot of potential. Shouldn’t the next question be “what have you been doing the past fifty years?”

Coaching is vey personal. It is working with individuals and helping them to reach their potential. A good definition of coaching is that the purpose of coaching is “unleashing or unlocking the potential of another human being.” Perhaps that sounds too overpowering to you. But that is what you do if you are coaching another person. You are helping them become better at what they do.

Gallup surveys everything and coaching is one of the subjects on which they have conducted surveys. Their surveys say that 30% of the people want coaching to help them with “life, purpose, vision, creativity and integrity.” That is a real mouthful, isn’t it?

At the end of the blog last week I stated that “I think we all can do much more in our lives and in our careers.” Sometimes that challenge overwhelms us. Don’t let that happen to you. Take up the challenge. Find a coach: someone you trust, someone you respect and someone who will be honest with you. Then get started. As the US Army commercial says “be all that you can be.”

The Time is NOW.

, , ,

e-Learning

e-Learning

Twenty years ago, in 1999, John Chambers, then CEO of CISCO Systems said, “Education over the internet is going to make email usage look like a rounding error.” The renowned Clairmont Professor and business guru thought that “Knowledge has to be improved, challenged, and increased constantly, or it vanishes.”

As those of you who read this blog know we are serious proponents of providing tools for employees whereby they can reach their potential. Learning to me is a lifelong pursuit. You really only start to learn once you leave the structured education system that we have in place. Too many people, however, act as if that is the end of their education.

We are extremely pleased to be in the final stages of certification by the IACET, the International Association of Continuous Education and Training. They have a very rigorous certification process that we have completed and are in the final review process. You will hear more on this in the near future when we get all of the documentation completed.

This is the final step in our platform for training in the Heavy Equipment, Light Industrial, Material Handling, Trailer, and Ground Water Industries with which we are associated. We will be the only certified company in these Industries in the world.

We ran a brief review of our offerings within the past month and it is quite substantial. We currently have around 90 people taking classes on line every day. We have enrolled over 600 people in the past two years. It is starting to take hold.

What we offer is an employee development structure for each job function in the Parts and Service world. We assist dealers and distributors and some manufacturers now in creating a learning path for specific jobs. A career path if you will. We are in the final stages of announcing our “badge” program.

The Physical Universities and Vocational Schools are the only ones who can provide a “parchment” that says University Degree. The internet-based learning world is “not allowed” to offer degrees. We offer and provide badges. In our programs the badges cover; Operations, leadership, Sales, and Finance. Each class earns a badge and after accumulating Badges taking classes there are four levels of achievement; Platinum, Gold, Silver and Bronze. Each student can share their learning results from us with their prospective employers which provides, we believe, a much more complete picture of the knowledge of each individual who has followed our programs.

A study done in 1000 by WR Hambrecht + Co called “Exploring a New Frontier” provided the following list of factors driving e-Learning:

• Rapid obsolescence of knowledge and training
• Internet access if standard at home and at work
• The need for just in time training.
• Technological advances enable interactive and media rich content.
• Efficient means to train a global or national work force
• Increasing bandwidth allowing more streamed content
• Increases in skills gap and demographic changes
• Growing selection of e-learning products and services
• Demand for flexibility for lifelong learning
• New standards to facilitate compatibility, usability of e-learning product
• Wide variety of topics addressing business objectives
• HR, Management, Customer Service and Compliance Topics
• Simple access point and integrated data
• AICC and SCORM standards for inter-operability

I believe that e-Learning is now starting to hit its stride. All of the above points are even more pronounced today.

We are hitting our stride as well:

 We have created our platform – the learning management system
 We have developed the products – over 112 different programs
 We are in the final stage of accreditation – IACET
 We are finalizing the recognition programs with our badges

Now it is time to sell the program and get more people learning on a daily basis.

We highlighted a quote from Peter Drucker at the outset of this blog “knowledge has to be constantly improving or else it vanishes.”

Where are you in your learning?

 Are you reading books and taking classes constantly?
 Or is your knowledge becoming dated and no longer current?

I think we all can do much more in our lives and in our careers. In fact, with the rapid rate of change in the world around us I believe it is absolutely critical for us to continue to learn. What do you think?

The Time is NOW.

, ,

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.

,

Innovation and the Challenge

Innovation and the Challenge

Last week we talked about the challenge in the acquisition and retention of the talented people that you would need over the coming years. We also addressed the challenge of the new partnerships required between businesses and the education system.  Through this partnership, we can fill the learning to employment chasm.

Now I would like to turn to where we have more direct control: Innovation.

This year we are seeing rapid and healthy capital spending by business across the country. This is the precursor to improvements in productivity in the workforce which will lead to higher wages.  These are all good things.

However, what are YOU doing to innovate your way to higher productivity?

Let’s quickly review some high-performance benchmarks for parts and service.

Parts & Service Sales > 40% of Total Dealer Sales.

No matter what you think, you can achieve this level of sales IF you achieve higher market share numbers. BUT that will not be easy. It will not be achieved if all you do is continue to do what you have always done.  You would do well to remember the definition of insanity here, as I reference it so often: continuing to do what you have always done, while expecting a different result.

Some key steps to achieving higher market share:

 Obtain complete accurate machine ownership lists.
 Segment your marketplace.
 Establish a market coverage strategy.
 Assign customers to external and internal sales teams; in the filed and on the telephone.
 Train your market coverage personnel in territory management.
 Establish specific objectives for purchases for each of your assigned customers.

THEN YOU NEED TO MAKE IT HAPPEN.

Operations need to be tuned up as well. 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 the above action steps? No matter what you think you can achieve this level of sales It will never be achieved if all you do is continue to do what you have always done.

We need to attack the structures. So, let’s go back to our fundamental question:

WHAT DOES IT LOOK LIKE WHEN IT IS RIGHT?

To start with all parts and service sales prices are at retail customer price for the following benchmarks. No, you don’t need to change how you price things, although that would be the right thing to do, you can simply do the arithmetic.

To operate at high levels of productivity requires the following benchmarks be achiever. Personnel Costs as a percentage of Sales Revenue.

Parts < 7%
Service < 15%

The above two measures will lead to sales per employee numbers. 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.

Remember: Understanding, Acceptance and then Commitment.

More on that next time.

The Time is NOW.

,

The Challenge

The Challenge

We are getting close to being in a position of complete saturation in the jobs market. We now have more jobs open than we have workers looking for a job. That has not happened for a long time.

We now have over 6,000,000 jobs open across the country.

The most recent Gordon report, from Edward Gordon, one of our colleagues who focuses on training and education, said:

“Today is a watershed era similar to the Industrial Revolution of the late 19th and early 20th centuries. Then new methods of production required more educated workers. The factory system and the consequent growth of American cities sparked the development of public schooling at the local levels, that in turn led to the passing of compulsory schooling laws at the state level. The United States was the first nation in the world to institute compulsory tax-supported public education, and it was a key component in the economic and industrial expansion of the United States. It was history’s first comprehensive education-to employment system.

The spread of computer technology in today’s workplaces is again raising the demand for a more educated workforce. While there are some pockets of progress, too many Americans are not receiving the education needed for 21st-century jobs and careers. Our education-to-employment system clearly needs re-invention, but entrenched bureaucracies in business, education, and government stand in the way. Too many components of American society are caught in the blame game, instead of working together to find solutions.

There were deep divisions in American society one hundred years ago. Just as today, immigration and economic inequality stoked tensions. Yet as community after community discovered that the pain of defending the status quo was greater than that of systemic change, solutions were forged. I believe that we are at this point again. The United States was founded and still stands because of our belief in a better future for all. Americans have overcome formidable obstacles in the past. We can do it again!”

One of the keys here is the education to employment system. We are not satisfying the needs of our employers.

You have all read that I believe greatly in apprentice programs and mentorship programs as a means to get motivated people with good attitudes into the workforce. You also know that I am a huge fan of the German apprentice programs. Every year about half a million Germans enter the workforce through these apprenticeship programs. Apprenticeships are one of the foundations of Germany’s manufacturing prowess. Felix Raunier, a professor ate the University of Bremen, says even the US has started to notice. Raunier says “US society has stigmatized vocational education, so most parents see college as the only path to status and a good career for their children.” Ludger Deitmer, is international research coordinator at the Institute of Technology and Education at the University of Bremen. He thinks that vocational training should be one of the medicines, perhaps the key medicine, in how to make America Great Again.

Companies in the US are not completely on board to this approach. Apprentices, in Germany, earn income as they work in companies and go to school. There is a partnership between the schools and the employers.

Marilyn Hewson, Chairman, President and CEO of Lockheed Martin, recently testified “to a new and pressing challenge: the shortage of skilled workers to fill the jobs being created by robust growth.” One survey by Industry Week found that nearly 40% of the aerospace companies believe that the skills gap has had an “extreme” effect on their ability to innovate and grow.

Last year the administration created the apprenticeship Task Force and issued an executive order to identify and remove the bureaucratic and regulatory impediments to apprenticeships. Apprenticeships help workers train on a specific craft or skill that a company needs. Lockheed Martin is creating 8,000 apprenticeship and workforce development opportunities in the next five years.

Let’s bring this back to our Industry.

Should you employ a High School student on a part time basis, as they continue to go to school, so that they can learn what happens in your dealership and if they, and you, think there are opportunities. If there are then together, the apprentice and the company, can develop a plan. You can explore specific learning programs that local Junior Colleges and Vocational Schools offer. You can work with the schools to create new classes to fit your needs.

As Hewson says; “it is up to this generation of leaders in government, industry and across society to invest in and to develop a workforce equal to the global challenges ahead. It is now time to act across every sector to ensure that every worker has an opportunity to grow, achieve, improve, train and excel over the entirety of their careers – regardless of where they start, where they work, or how high they aspire to go.”
Should you have apprentices working in your parts department? Should you have apprentices in your service departments? Absolutely.

The Time is NOW.

, ,

Automation

Automation

Are you noticing the changes?

The world is becoming even more confusing and complicated as we are faced with increasingly rapid and dramatic technological advances. The most disquieting aspect of it now is that it is not just physical activities, using robotics for example, but now it is cognitive skills as well.

We are surrounded by Artificial Intelligence (AI), Virtual Reality (VR), Autonomous Vehicles (AV), and Disrupting Demographic Destinies (DDD). Things are changing very rapidly.

This is sometimes called the Fourth Industrial Revolution.

We are also seeing this affect different generations in different manners. From Millennials to Baby Boomers these technological changes are viewed very differently. And not everything is positive.

The technology around us has been something that millennials have grown up with and they are very comfortable with it. Baby Boomers not so much. But there are other aspects of technology that are beginning to come under more critical scrutiny. It seems that social media has the same effect on the brain as alcohol and drugs. You get a hit of dopamine, the very same response in your brain to alcohol and drugs, every time you get a response to your posts. Think about that for a moment.

Technological advances, particularly in cognitive activities, are not going to be slowing down anytime soon. Robotics will be coming to your operations. Order processing in the parts departments have been changing over the past four or five decades. I first saw an automated distribution center in Stuttgart, Germany. It was a Kodak plant. When I walked in the warehouse the lights went on. There was not one person in the building. This was the central distribution center for Kodak for Europe. When an order was entered, at any region in Europe, for which there was a need for a “part” robots went to work. They were given instructions by computer and they then went out to the warehouse, found the right aisle, turned into it, found the right elevation, went up to it, found the specific location and centered in front of it and then it picked the parts. They scanned the units and in so doing they were able to pick the correct quantity. It was very eye-opening experience for me. That was 1973.

Today, a friend of mine, who currently works for Google, has multiple patents pending where he can control the cursor of your computer only with his eyes. No mouse, no keyboard, exclusively with his eyes. Imagine that? Just pause and think about the prospects of things to come when there are inventions and innovations taking place like that already in the works.

The problem with all of these advances in technology seems to be that we are not realizing the gains in productivity that should be a byproduct of these changes. After all the main indicator of productivity gains is the average hourly wage. That hourly wage is starting to increase again after a few decades of gradual declines. That is not a good thing for society as a whole as the haves get more and the have nots struggle more.

As a society we need to work on solving this productivity problem. I have often said that we spend trillions of dollars on technology but very little on sociology. How society evolves to embrace the new technologies and jobs will be interesting to observe.

Today there are more job openings than there are people looking for work. The employment participation rate is finally starting to grow again after nearly a decade of decline. New and younger employees approach their lives in different ways than my generation. They are less patient than we were in their progress in a company. They want to be constantly learning. They are very curious – often asking the magic question “Why do you do it that way?” They don’t like the answer “because that is the way we have always done it.” They also want to continue to learn, to continue to grow as individuals. If they aren’t learning something from you they will leave. Gone are the days when people would think that when they left school learning was over. Today it is just the beginning.

With more job openings than employees to fill them we are on the cusp of some big changes in wages. John G Fernard, an economist at the Federal reserve Bank of San Francisco is quoted as follows – “You could meet the demand for a while by hiring workers, but with the unemployment rate at 3.8%, eventually you are going to run out of easy-to-find workers. Because workers have other opportunities, you end up having to pay them. And once you see wages going up, you say -We have to become more productive to cover our costs.” We are right at this point today. What is interesting to note is that the last time productivity grew dramatically was also when unemployment was at 4%.

This Fourth Revolution, is about adapting yourself to the New Realities of the work place. There will be differing methods, and processes, and systems brought into life. That will also require more adaptable employees. People who will embrace change because that is what they expect to happen. A constant evolution of work. This will focus on the customer and their needs and wants and also about being the “Lowest cost supplier of the highest value products or services.” That will only be possible with talented, well trained, properly paid loyal employees.

We are presenting you with the learning tools. You have to provide the opportunity to your employees.

The Time is NOW.

 

,

The Learning of Tomorrow Is Available Today

The Learning of Tomorrow Is Available Today

At Learning Without Scars we are on the leading edge of internet-based employee development. We have developed Industry specific programs within the capital Goods Industries. We are following in the footsteps of the Khan academy, learning for elementary, middle school and high school students, and Udacity, a more recent platform for University learning specific to the technology Industry.

We develop our programs from a subject specific beginning. Each of our programs follows a similar path. A pre-test, the learning program and a final assessment.

Using In-depth personnel assessments help business identify the specific skill level and knowledge of each employee which also allows them to develop on a timeline of their choosing. These assessments present twenty multi-choice questions. This allows the employer to place each employee along one of our many learning paths. The results help you identify potential top performers in key areas of sales, finance, operations and leadership. Employers can leverage this knowledge to transform their company, ensure specific competitive advantages and in the end to realize significant sales and profit growth. Each of our video programs contains slide content, audio tracks matched to the slide and we insert film clips during the programs to break up the learning and provide emphasis on specific aspects of each program.

Learning is becoming more of a life long program with tools such as these. No longer does an employee have to attend a school at night or weekends, they simply sit in front of their computer. There is no shame in the learning process. Often in classrooms students don’t ask questions when they don’t understand a specific topic. In the online world there is no embarrassment in asking questions, as many times as the student desires. The important truth is that each student wants to learn, they want to understand the content and in the online world it is easier for them to accomplish.

Each program is assigned a badge. There are four categories of badges; sales, finance, leadership and operations. As the student’s progress through the various programs they accumulate badges. This accumulation leads to higher levels of skills and knowledge and this is recognized with a learning status; platinum, gold, silver and bronze. Each student then is recognized for their specific knowledge across the four disciplines. Those disciplines cross the parts business, the service business, parts and service selling and parts and service marketing. Each employer can see the status of each employee. They will have a much better understanding about what the student knows before hiring or in the annual performance review.

This is the learning platform of tomorrow. However, it is currently available at Learning Without Scars. So what is holding YOU back?

The Time is NOW.

, , ,

Management Mentoring and Coaching Program Conclusion

Management Mentoring and Coaching Program Conclusion

Last week, we covered the second portion of our tailored mentoring and coaching program with the instructional videos/skype sessions description.  This week, we cover the third, and final, portion of our individually tailored mentoring and coaching program.

For this final part of our program, we provide each manager with individual Work Assignments.

Establishing assignments is aimed at furthering the learning experience. Learning is about remembering and with these work assignments we can establish a deeper base of understanding. These assignments will be specific to the job function with which we are working. They will fit into the alternating weeks of the overall program. Implementation is a crucial element in committing knowledge to memory, thereby furthering the learning of each manager.  A key component in achieving any learning objective is in the implementation of the knowledge acquired.  These work assignments are designed to put that newly gained knowledge to work.

This approach will be discussed with the Company to develop a strategy which satisfies the needs of the Company, as well as the needs of the individual who will be the subject of the mentoring/coaching.

The program will continue weekly, alternating between a Learning On Demand program and then a film with work assignments injected at the appropriate time in the program. This will continue until the program is completed. This will be adjusted to satisfy the needs of the individual to be coached.

The price of this coaching/mentoring program will be established on a case-by-case basis. It will be dependent on the time involved and the assets utilized.

There you have it: our Management Mentoring and Coaching Programs.  Keep this in mind for those managers and supervisors you want to cultivate to become your heroes.

The time is now.

, ,

Management Mentoring and Coaching Program Continued

Management Mentoring and Coaching Program Continued

This week, we are continuing our discussion of the new Mentoring and Coaching Program we are now offering here at LWS.  Last week, we discussed the first component of the program, with our Learning On Demand Programs for Managers.  This week we are covering the next component of our program: films.  These films will be used to expand upon the knowledge students will gain in the individual Mentoring and Coaching Program.

B. Films

Using a Skype call or GoToMeeting the manager will watch a specialized training film. These films are designed to build upon the foundational skills presented in each Learning On Demand program, therefore refining the skill set of each manager. Upon completion of the film, the manager will be engaged in a real-time discussion about the content and how it applies to the job.
We will recommend specific film topics that apply to the work of the manager. For instance:

A. The Business of Paradigms
B. The Unorganized Manager.
C. Flight of the Buffalo
D. Performance Matters – Praise
E. Performance Matters – Criticism
F. The Clarity Imperative
G. Gung Ho
H. Leadership: An Act of Possibility
I. The Three Signs of a Miserable Job
J. The Five Dysfunctions of a Team

 

Next week, we will cover the third, and final, portion of the Mentoring and Coaching Program.

 

The time is now.