MCE: Service Market Capture

The parts and service businesses within the construction equipment Industries has never had a precise method to calculate the share of the labor market for a specific brand. To some degree this has allowed the service business to operate without a critical performance measure being in place.

This program married the market potential, which is covered in another class, with the actual sales for a dealership for a specific brand. The market potential model allows a dealer to calculate the potential consumption of labor on specific machines. That, together with the actual service sales, allows a calculation to be done arithmetically that determines the percentage of a customer business obtained by a dealer.

This class provides a detailed methodology to calculate the share of the market the dealer obtains. This is the market capture rate that the dealer obtains in the labor business. Ideally, we would be able to perform this calculation by machine model.

Similarly, we touch on the “mean time to failure (MTF)” statistics provided by the OEM’s for their products. With territory potential, market capture we can drive market coverage methods which with the MTF the sales force can be targeting customer needs in a timely manner. This program covers all the details and methods required to perform the calculations required to measure market capture.

MCE: Service Market Strategy

The only way to position your labor business is to provide customers with something they value.  The fundamental principles of customer value are to offer something the customer wants and needs and to provide that offering better than your competition can.

This class provides methods and a road map to follow in developing a strategy. We identify three key strategies for enhancing customer value. Companies focus on being: Better – through the provision of superior quality labor and service. Faster – sensing and meeting changing customer requirements more quickly than others. Closer – creating durable linkages and even partnership with channel members and customers.

This program takes you more deeply into operational excellence offers customers good pricing as well as convenience and reliability. Then we examine labor leadership which is the result of superior product performance. Finally, customer intimacy which utilizes “micro” marketing techniques. These strategies for providing customer value indicate the importance of the marketing focus in overall strategic planning. Customer value offers a way to gain strategic advantage over competitors and to differentiate the company’s products or services.

Communications is the critical element to successful implementation of a strategy for the parts business. The final emphasis of this class is to ensure that the strategy is effectively communicated to all employees so that they will be committed to executing the strategy.

MCE: Service Activity Based Management

The use of activity-based management as a management tool, has been relatively recent in our Industry. It was an unintended consequence of the work of Edward Deming, in Japan, and allows dealerships to review activities in a different manner. The use of the sales per employee implies a series of activities and relationships to our work that relies on historical approaches and does not take into account the opportunities to reinvent the operations of the department.

Our business is based on satisfying customer requirements. In order to be able to satisfy these needs we must better utilize technology and information in better and different manners. In many cases organizational transformation, has rarely been done without the attendant review on process effectiveness and market coverage methods.

This program will expose a series of thoughts that will allow the learner to be better able to evaluate the processes and methods in use today. The business world has been inundated with various “new” thinking approaches. This is Industrial Engineering at its’ root which morphed into the Continuous Improvement Movement, to Kaizen, then Six Sigma and finally the 5 S approach today. Each of these approaches is married to financial reporting which allows a more comprehensive review of all we do from an activity-based perspective. You will never regret taking this class.

MCE: Service Art of the Possible

The work in a Service Business within the Construction Equipment Industry is complex and filled with details. It is within this environment that our employees work day in and day out. These people who I call your “heroes” are the warriors that make your business a success.

The technicians have a forward workload that leaves little room for inefficiency or ineffectiveness. In the shop or the field whether for repair or maintenance or rebuilds the work never ends. Your “heroes” do incredible work keeping up with this activity. They work in difficult working conditions, they deal with specialized equipment and tooling, they do inspections, prepare equipment for sale and make ready equipment for rent and lease. They get to the end of the day and take a deep breathe to indicate that they made it through another day. They deal with the Art of the Possible every single day.

In this class we will explore the major pillars that comprise your business; Buildings, Inventory, People, Technology, Purchasing and Employee Development. We will then apply and show you how to apply the Art of the Possible.

MCE: Service Change

Dealing with change is one of the biggest challenges we face in our lives. It will also be one of the largest challenges you face in creating value for customers and remain relevant in the supply chain. Jack Welsh is famous for saying “When the world around you is changing faster than you are…. the end is near.

Look around. Look what has happened in only just the past two decades; Cell Phones, Smart Appliances, Artificial Intelligence to name just a few. Look also at the changes in the equipment we support; computerization of componentry, telematics, etc. Now look at your business internally. What changes have you made in how you do things? This program covers all of these issues.

It is critical that we know how to lead through these periods of rapid change. We have to be able to communicate effectively. What are we doing? Why are we doing it? And how we get everyone committed to these changes is covered in detail in this comprehensive class.

Managers must understand how to engage their team, and lead the business, through change. You will learn how to effectively manage change, become consistent in identifying and resolving critical change issues and innovating in how you do the work and find new and different ways to grow is covered in detail. Don’t miss this important class.

MCE: Service Leadership

The management and supervision in business is in many cases misunderstood. You manage process but you have to lead people. Often, we get consumed by our need to improve our processes. Since the 1980’s with the “Japanese” continuous improvement movement we have been obsessed with eliminating non-value added, tasks and processes. But what have we done to inspire management to improve their ability to lead their employees.?

Leadership is a complicated function. It involves compassion, courage, trust, integrity, commitment, loyalty, inspiration, and communication. A true leader will take people to places that they would not have gone to on their own. This program explores the true meaning of leadership and talks about differing leadership styles and their impact on performance.

Leadership has to ensure that the day to day operations are performing and at the same time they must focus on the future. They also have to understand and accept how important managing change is to improvement. They have to be able to look at their businesses with “fresh eyes” to ensure that they can identify and eliminate their “sacred cows.” This is a critical class for anyone in a leadership position.

MCE: Service Customer Retention

All of the training and tooling in service, and the inventories and systems in parts, and all the good work by professional salesmen will be wasted if you cannot keep your customer for life. The Japanese taught us that in the 1970’s, and Harvard Business School did the definitive research in the 1980’s. This class deals with the facts of customer retention and “how to” minimize the number of customers that “defect” from your dealership.

The statistical impact of defection on profitability across differing Industry groups is exposed. It is shocking. In the Industrial Distribution business, if you can increase your customer retention 5%, then you can increase your profitability as a Company by 45%. There is no single element of what we do that has the impact on dealership profitability like customer retention. The tools you should use to minimize customer defection are discussed in detail in this impactful class. Everything that we do in the performance of our jobs is at risk if our responsiveness and convenience are not to the customers’ liking. Don’t miss out on this powerful program.

MCE: Service Balanced Scorecard

In the service business we communicate with the marketplace in a variety of methods. We deal with various systems, manually and technologically. We have a responsibility to serve and retain customers while at the same time we have to make money for the business. This is a complicated business.

To assist us in managing the business and help us implement our company strategy we use a business tool that is called the “Balanced Scorecard.” The Balanced Scorecard was developed in the 1990s, designed for use in the planning and implementation of a company’s strategy. The scorecard looks at your business from four directions; finance, internal, innovation and customer. From this vantage point the company can develop a strategy as part of their operating plan.  These plans are meant to help a company achieve its goals.  If a plan cannot be agreed upon and effectively executed, a business cannot effectively reach its goals.

In this class, you will learn the ins and outs of this valuable tool, and the costs we pay in our business when we fail to execute our plans for success in our market.

MCE: Service Delivery Systems

In the service business, we communicate with the marketplace in a variety of methods. With the telephone, with people walking into your store, some customers and some use the internet. But the variations of the work don’t stop there: we also have to contend with a variety of “delivery” systems as well. These are not transportation systems. This is a customer service delivery system.

We process work orders for our customers and we all know that not all customers are created equal. Some customers spend a lot of money with you and deserve to get special treatment. Well, we also have some processes that are cost intensive but also some that are very efficient. These are the customer service delivery systems.

From the customer who does not know what is needed, to the customer with their own mechanics, there are wide ranges of differences. Each of the delivery systems has a different cost component, and that can lead us to provide differentiated services dependent on the delivery system that is chosen by the customer. We explore all aspects of the delivery systems we offer to the market in this important program.

MCE: Service Standards of Performance

What does it look like when it is right? Performance in a Service Department must maximize efficiency, maximize quality, and satisfy customers.  The first step to understanding and accepting what needs to be done is to have meaningful, measureable and achievable standards. How to develop your own standards and yet continue to reach for excellence is the theme in this program.

Individual employees want to do a good job, yet many do not know what doing a good job entails. This is a fundamental requirement of good management: communicating performance expectations and measures to the employees. In this program we will cover the fundamentals exposed by Patrick Lencioni in his important book “The Three Signs of a Miserable Job.”  Anonymity, Irrelevance and Immeasureability are the three symptoms of this disease which leads to the “Sunday Blues.”

Each employee can also deliver more than they think they can, yet each is fundamentally lazy. Leadership methods to entice or motivate employees to deliver good performance for coworkers, customers and the Company will be discussed in this extremely important program.