Coaches Corner v.04.06.2023

In Coaches Corner v.04.06.2023, guest writer and Coach Floyd Jerkins writes this week on the topic of Behavioral Sales Metrics for Coaching Equipment Industry Sales Teams.
Every dealership organization is at a different place in time with the diagnosis of their sales teams and processes. The size of complex and level of operational sophistication are factors. Many times, it’s a location issue more than overall company-wide so that requires custom solutions. So, maybe this article is timely and you’re ready to look deeper into how to make real progress in the sales department.
Professional Sales Management and Salespeople
Great salespeople are great salespeople, and in the equipment industry it’s no different than other industries. There are particular aspects unique to every industry due to a product’s life cycle, style of customers and personalities, buying patterns, and market conditions. And the best salespeople know they have to understand these industry specific characteristics to succeed, but there is more. When you learn to sell, you can sell anything. Yea, I know, I know, but it’s true.
Being a professional sales manager or salesperson in the equipment industry isn’t for everyone. There are real superstars doing this work every day and many of them make it look easy. They have a natural and personal approach that gets the job done. Others have tried and failed. Many linger on with average performance. Yet, owners who sell often do not follow the system they expect their salespeople to follow or they have a perceived top producer that no one can touch.
There are typically high and low performers when you have a large sales team. Improving the performance metrics of sales managers and salespeople can be challenging to establish what particular actions need to be taken.
Building a sales team of all superstars is a great plan, but not always realistic or practical. In my experience, sales management and sales teams usually have a mixture of age and talent with varying skill sets and competency levels.
A Sales Managers Rally Cry – To Sell More, Talk to More People
To sell more, talking to more people always seems to be at the top of the list of things to do. Still, if a salesperson talks to a lot of people and prices a lot of people but doesn’t have a good measured closing ratio, it makes me wonder how effective they are and whether they should be allowed to keep talking to your customers. When a sales manager influences the sales team with a whip and chain or talks more about the problems than the solutions, is that the most effective leadership style to use in today’s business climate? I don’t think so.
The traditional metrics for sales success include new and used margins, sales volume, new and used turns, and a mixture of others. To be an excellent asset manager, you must know these metrics and how to positively influence their outcomes.
Performance Metrics Created Before & After the Sale
Like many traditional metrics, margins, turns, and other sales department indicators are created after a unit is sold. The efficiency of your booking and accounting practices determines when the sale appears in a statement. That could be anywhere from one week to sixty days past when the actual sale was made. Once the numbers are current, you can assess what’s going on. If you’ve followed my articles about this, you know where I am headed.
Let me ask a few questions:
- Who do you make more money on, a repeat customer or a customer who has never done business with you or your company before?
- Who do you have the most fun working with, a repeat customer or someone who has never done business with you before?
- Who do you sell in less time, someone you don’t know or a customer who’s bought from you before?
Perhaps you took a few seconds and thought about your answers. I appreciate the effort. Now, consider your answers and what you know and don’t know.
“The goal is to coach performance in the areas that help salespeople become more effective with real-time data. Becoming more effective in sales and marketing your business requires a deep understanding of your customer base so you can focus the sales and marketing team on what matters the most.”
Behavioral Customer Segmentation
The old saying is you can’t improve something unless you measure it. One of the first principles of process improvement is as a process evolves make sure you are measuring the right things.
You probably already know the customer by machine or product sold, sales volume, and parts and service sales, so tracking this kind of customer segmentation can reveal even more real time data. Even a basic CRM system can track these customer categories.
Total Customers
Customer Categories
- New Customer- This customer has never been to, called, or emailed your business before.
- Repeat Customer- This is a customer who has bought from you before. Many companies have “orphan owners.”
- Referral Customer- This is a customer who another customer referred to your business or the salesperson.
- New Business- This customer is someone you meet at the gas station or a social event. A brief conversation in almost any social situation generates new leads.
The sale is the end result of all the activities performed by a salesperson. By coaching performance on these sales activities that happen before and during the sales process, we can naturally increase a salespersons effectiveness.
When you measure these you learn a lot about how your sales mix is made up, how effective sales and front-line people are in each category, and even how well your marketing is doing. It also speeds up the learning curves. If you don’t know these, you are at the end of the sales cycle making decisions. When you are looking at unit sales, you are best guessing how effective your sales and marketing efforts are.
A Behavioral Sales Mix- BSM
Each salesperson should log every Customer Contact interaction each day. To get buy-in, a sales manager communicates with the sales team to create the “rules of logging” they’ll follow. For example, if the salesperson is at the parts counter talking with Joe Customer and he asks how much that used machine is, that should be logged. Each person inputting into the system should understand what the code means when they log it. GIGO- garbage in, garbage out.
Salespeople shouldn’t be allowed to post at their discretion, and that’s part of the rules created in the early stages of implementation. You don’t allow your accounting staff to post credits however they like, nor do you allow technicians not to record their time. Salespeople should be required to a certain standard of recording their day-to-day activities. Its good business.
It’s essential to know how many Closes to Face-to-Face Contacts there are in the same time period. This establishes one of the fundamental Closing Ratios for performance improvement.
By tracking these customer categories and how many face-to-face contacts by salesperson and how many closes by salesperson, you are ready to create a new view of your sales mix. Stay tuned, next month’s article will be on the analysis of these metrics.
Floyd can be reached at fl****@**.com or www.floydjerkinsexecutivecoaching.com.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Who Should Establish Repair Options Pricing?
Who should Establish Repair Options Pricing?
Guest writer Ron Wilson brings us the fourth part of his four-part series on Repair Options offerings with “Who Should Establish Repair Options Pricing?”
This is the fourth in a four-part series relating to Expand Product Support Offerings with Repair Options.
This article discusses who should set the pricing utilized in repair options rebuilds. In many cases the Service Department is responsible for setting the rebuild prices for component rebuilds. In some cases, Product Support Sales is responsible for establishing the rebuild pricing, and some dealers have established a Pricing Department outside of rebuild sales team. A third option is to utilize a Pricing Team (could be a department) that does not report to the neither of the Service and Product Support Sales Departments.
A Pricing Team can provide a skill level that includes:
An entire science relating to Value Based Pricing provides tools, knowledge, and expertise to support the combination of historical rebuild information, market-based pricing information, and moves away from an hourly rate philosophy to a value add philosophy.
An example of some tools that can assist in reviewing and establishing rebuild pricing include:
Many other pricing tools available Component Pricing Ladder provides a view of the current market pricing options. Each has its unique advantages/disadvantages. If an analysis shows the Dealer Exchange is above the OEM Reman price there are some opportunities to determine why and adjust as needed.
The same concept can be utilized comparing competitors pricing, but it is important to understand the competitors rebuild practices. Machine Rebuild Opportunity Model can assist in establishing a priority of which machine/component is most important in the current market.
Component Rebuild Customer Importance Ranking utilizes the attributes that are important to the customer and evaluates the dealer and other competitors. Corrective action can be taken to address the specific issues. It is not always about price. Price is not listed here but could be included. A Pareto Analysis reviews the breakdown of the engine rebuild process. Comparing the actual to the standard can provide a recap of potential areas of concern. The chart below represents labor hours, this can also be done representing the value of the parts utilized in the rebuilds.
Component Pricing Ladder
The above information shows some of the various tools that can be utilized to evaluate pricing other than just the number of labor hours. Labor hours are important and should be included in the process, but there is more to the story and really goes back to the question.
Where does the establishing of component pricing belong?
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Critical Thinking Skills
Critical Thinking Skills
Guest writer Jim Dettore brings the importance of critical thinking skills into the work we all do in our industry with today’s blog.
Heavy construction equipment plays a crucial role in various industries, including construction, mining, and agriculture. However, like any other mechanical device, these machines are susceptible to failure, leading to equipment downtime, costly repairs, and even safety hazards. Therefore, it’s essential to conduct root cause failure analysis to identify the underlying causes of equipment failure and take corrective action to prevent similar incidents in the future. This is where critical thinking skills come in.
Critical thinking skills are essential for analyzing complex problems and making informed decisions based on available evidence. The root cause failure analysis of heavy construction equipment failures requires a systematic and analytical approach to identify the contributing factors and develop effective solutions. Often, it can be summed up as the forensic analysis of metal destruction. In this blog, we will discuss some critical thinking skills that can help in conducting root cause failure analysis of heavy construction equipment failures.
In conclusion, critical thinking skills are essential for conducting root cause failure analysis of heavy construction equipment failures. They help in identifying relevant data sources, analyzing problems systematically, developing hypotheses, making informed decisions, and continuously improving equipment performance. By applying critical thinking skills, heavy construction equipment operators and maintenance personnel can prevent equipment failures, reduce downtime, and improve safety, productivity, and profitability.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
How Does Someone in High School Know What to Do?
How Does Someone in High School Know What to Do?
Welcome back to our series on Lifelong Learning! The founder of Learning Without Scars, Ron Slee, is looking ahead to the future of education and the future of the working world in, “How Does Someone in High School Know What to Do?”
Caroline, my daughter, and I were having a conversation yesterday about Learning Without Scars and the needs of the people who were in school or working. It brought me to ask her – “how does someone in high school know what to do?” Her answer was the school guidance counselor, along with a program being implemented in her specific district (not nationwide). Through the program, students complete career profile quizzes to suggest careers that might suit their learning styles, interests, and strengths. From these career suggestions, students can explore the pathway to reach the career. I found that to be interesting and I pushed back with more questions. How does the advising aspect work with the guidance counselor? One of our good friends was a guidance counselor for most of her career in education in Canada. My grandchildren both accessed their guidance counselor. In the case of my grandchildren, it was more advice on which classes to take and why. I was wondering more about the guidance that the high school students received in their lives. On their individual careers. The question “what do you want to do with the rest of your life?”
Earlier today I was having a Teams Meeting with Steve Clegg, from Zintoro, and John Carlson, from Reflective, and we got into the same subject. There were some interesting options we touched on.
John Carlson has been involved in continuous improvement engagements for many decades. He is a “Systems Thinker.” He has a product that allows an individual to do an evaluation of themselves and how they would fit into the world around us. It starts with an awareness evaluation, then they proceed to a “Gamification. tool”
On another front David Jensen, Johnny Creek Consulting, has developed a “Tabletop Exercise” to assist with evaluating the match of skills and job function needs. Learning Without Scars has Job Function Skills Assessments. We are talking about developing a tool to assist students in high school to answer my opening question.
With the leadership of Steve Johnson, at Learning Without Scars we are developing a network of Centers of Excellence across the US and Canada to carry our classes and assessments for both the Academic Credit and Workforce Development programs in their syllabus. We have developed an intensive library of skills assessments for our classes as well as for our subject specific class reading lists and our homework assignments. This allows us to provide our students with the results that they obtain from increasing their skills and knowledge. With the changes in education continuing to proceed at an extremely fast pace we are looking at extending the assessment process to high school students.
This group, David, Steve, John, and I are trying to tie the skills and performance of the employees with the performance level of the businesses that employ them.
We have data analytics on the transactions of a business. Transaction level data. We have employee skills and knowledge assessments for those employees working in Product Support, the distribution side of the business. We have reflective analysis data on the probability of performance of employees in a business. Now we must tie all of this together.
Ross Atkinson, who keeps our IT and systems needs under control, works with our Learning Management Software, Litmos, on their reporting engine. Between Ross and Steve, we are building Portals for our Schools, Manufacturers, Dealers, Associations and State Certification programs to allow our clients, their employees, and students to be able to track their progress through our classes and assessments.
I find this work to be especially stimulating. As most of you know I am personally invested in helping people find their potential and then providing tools to those people that will assist them to reach their personal and professional potential. It is in keeping with my constant pursuit to get better at what I do.
I grew up spending hours and hours in the swimming pool training. I got to be good at it. There is one profoundly serious lesson that I learned from swimming that has served me well in my years in the business world. You see, in swimming the competition isn’t the issue. Winning races isn’t the issue. Being better than your best time – now that is THE issue. Beating my best time finishing last in a race was a win. A HUGE win.
I learned at an early age that competing with others was not that important. Sure, you felt good if you performed well. But the real competition is within yourself. We must constantly get better at what we do. I wonder who is passing that message along to the high school students that are about to embark on the journey of their lives.
The time is now.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
The Validity of 5-Star Google Reviews
The Validity of 5-Star Google Reviews
Guest writer Roy Lapa walks us through the ins and outs of feedback. We have all seen reviews posted online, but how can we measure the validity of 5-star Google reviews?
Can you trust them? Yes, with some precautions. Google actively updates, examines, and penalizes most false or biased reviews. Nevertheless, despite their best efforts to curb these actions, this behavior persists, and customers and businesses alike experience the negative effects.
Google wants its reviews to reflect the real experiences and opinions of its users and not be the result of either swaying or other forms of incentive. If Google discovers that a company offered incentives in exchange for reviews, it has the right not only to remove those reviews but also to suspend the company’s account. Here are three recent encounters I have had:
Hotel Reviews vs. Hotel Experience
We booked a hotel for employees going on a work trip to a new region based on Google reviews. After the trip, when we performed a post-event review, one of the strikingly negative comments revolved around the hotel experience. Descriptions by the employees who stayed at the hotel depicted a dramatically different encounter than what we read within the Google reviews. As we investigated deeper, we found what seemed to be a lot of reviews from people who did not appear to exist. Though we did not do a full forensic dive, we concluded that the business had a substantial number of reviews which were not authentic.
Marketers Give Advice on Paid or Influenced Google Reviews
Let us start with a definition of marketing from the American Marketing Association:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Although the word ‘value’ is overused and rarely assessed, I am positive that customers would not value Google reviews unless they provided a complete representation, without bias, of the business they were considering engaging with. Unfortunately, I recently discovered the opposite within the marketing agency industry, and it is heartbreaking to see because it harms all professional and ethical marketers. Marketing strategies which focus on obtaining genuine reviews are a fantastic approach; however, be wary if the marketing recommendation you receive for your business includes any indication of achieving 5-star reviews as the primary goal.
Financial Consulting Firm Requests 5-Star Google Reviews or No Review at All
When a powerful group tells its members they are required to act a certain way or else, this is clear positional power at play and full of bias. This firm has an exceptionally large following, but in this instance, it has, unfortunately, lost focus on one of its foundational values of being ethical. Discouraging open and critical yet true feedback leads to several major negatives that have the potential to become monsters later. Here are two to contemplate:
5-Star Conclusion
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
The Technician Shortage
The Technician Shortage
Guest writer Jim Dettore addresses a major concern amidst labor shortfalls: the technician shortage.
The construction equipment industry is facing a long-term significant challenge: a shortage of experienced service technicians. The demand for skilled technicians has grown exponentially in recent years as construction equipment becomes more advanced, complex, and specialized. Unfortunately, finding experienced technicians to fill the demand has become increasingly difficult.
The shortage of service technicians is primarily due to two reasons: aging workforce and lack of interest from younger generations. Many service technicians in the industry are close to retirement age, and as they leave the workforce, the demand for their replacements is higher than ever before. The younger generations are showing less interest in technical trades, leading to fewer young people pursuing careers in heavy equipment service.
The lack of experienced service technicians is causing significant challenges for the construction, mining, and gas compression companies as well. Many companies are forced to delay projects due to equipment downtime, leading to costly delays and lost revenue. Additionally, unskilled technicians may not be able to properly diagnose and repair equipment, leading to further equipment issues down the line.
The importance of ongoing training for service technicians cannot be overstated. As construction equipment becomes more advanced and complex, ongoing training is essential to stay up to date with the latest technologies, repair methods, and safety protocols. Training programs provide technicians with the skills and knowledge they need to diagnose and repair equipment effectively and efficiently.
Teaching service technicians the fundamental skills of proper parts inspection have several advantages. Parts salvage or replacement decisions made with knowledgeable confidence will benefit the dealership in several ways. The current parts supply chain shortage requires better, well-informed decisions to be made, instead of simply replacing a part that might fix the problem, especially if the machine sits idle while waiting for the new backordered part (that may not fix the problem) to arrive. It also has a significant effect on reducing troubleshooting times, and equipment downtime. Service rework and unnecessary callouts are also reduced. All of which results in improved customer satisfaction, customer loyalty, repeat business, and improved warranty recovery.
Construction equipment dealerships must take proactive measures to attract and retain skilled technicians. One way to do this is to offer competitive compensation packages that include benefits such as healthcare, retirement plans, and paid time off. Additionally, companies should provide ongoing high quality, effective training opportunities to their technicians to ensure they stay current on the latest technologies and repair methods. The ongoing training combined with excellent communication help newer technicians feel appreciated and cared about. Constant communication, continuing education in their respective fields, and recognition of achievements help today’s younger workforce feel appreciated and invested in, thus helping improving employee retention.
In conclusion, the service technician shortage in the heavy equipment industry is a significant challenge that must be addressed. Ongoing training is essential to ensuring that technicians have the skills and knowledge they need to diagnose and repair equipment effectively and efficiently. Heavy equipment dealerships must take proactive measures to attract and retain skilled technicians to prevent costly delays and lost revenue due to equipment downtime.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Why is calculating Absorption Rate so important for Equipment dealers?
Why is calculating Absorption Rate so important for Equipment dealers?
Guest writer Tom Montgomery writes about absorption rates as a measurement tool in this week’s blog post, “Why is calculating Absorption Rate so important for Equipment dealers?”
Absorption Rate Calculation has been a measurement tool used by equipment dealers since the 1960’s. It is still a valuable measurement today.
In my work with equipment dealers all over the world I have found that the dealers that I consider to be on “the leading edge” measure their absorption rate every month.
This measurement tool is driven by the senior management of the dealership – it is not to be taken lightly. When senior management finds that the rate falls below their standards they immediate action to improve it.
Absorption Rate Calculation – here is the definition!
It is the percentage of dealership expenses absorbed by the gross profit generated from Parts and Service sales.
Sounds easy doesn’t it!?
Not so fast!
Dealer’s accounting methods vary greatly.
One example is the way the cost of goods sold is calculated in the Parts department. There are some dealers that include the cost of freight in the cost of goods sold to determine gross profit in the Parts department.
Is this the correct method? Many dealer principals insist on including all costs associated with running a Parts department. I believe it is the dealer’s choice. Most importantly, the dealer should be consistent in their measurements.
Another accounting variance among dealers is the calculation of Service gross profit. There are dealers that include all “benefits costs” in the calculation of cost of goods sold.
Again, if that is the choice made by the dealership then remain consistent every month.
Other dealers chose to account for this as an expense. What is the correct method?
The answer to that is found in another question.
What is the dealer trying to measure by calculating absorption rate?
The answer is, “Will the gross profit coming for the Parts and Service departments pay the expenses for the dealership”?
Some dealers might ask, “Are there any expenses that should be excluded in the calculation or is it all dealer expenses?”
Great question!
How should “interest expense” and “allocated expense” and “administration expenses” be treated”?
The dealer must be certain that interest, allocated and administration expenses are reasonable, controllable, and justifiable?
What does that mean?
Interest rate should be associated with accounts receivable and accounts payable (but exclude interest on mortgages).
Allocated and administration expenses should not exceed 10% of sales.
So, what is the target for Absorption Rates?
Is it 80%, 90% or 100%?
The answer is 100%!
Why 100%?
The dealers should want all expenses to be “absorbed” by the Parts and Service departments.
What advantage does the dealership gain if absorption rates are at 100% or greater?
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
OEM vs. Dealer Brand Identity: Are you frustrating your customers?
OEM vs. Dealer Brand Identity: Are you frustrating your customers?
Guest writer Roy Lapa continues his blog series focused upon Brand Identity with “OEM vs. Dealer Brand Identity: Are you frustrating your customers?
As a follow-up to my original post, “Brand Identity = Measurable Customer Behaviours,“ I would like to quickly highlight a problem that could affect both dealers and original equipment manufacturers (OEMs). We work hard to make our brands stand out to our customers, and the more a dealer and an OEM can work together, the better. Although some archetypes are more inclined to work well together, every organization is different and typically embodies one dominant archetype along with components of several others. While various archetypes may clash, they can also function in complementary ways.
The goal is to make sure that the customer knows that the OEM-Dealer brand identity stands for: consistent, predictable, and measurable behaviour.
If the OEM and dealer archetypes frequently contradict, the brand goal of consistent predictable behaviors may be more difficult to achieve. Depending on the circumstances and environment, the 12 Jungian archetypes can interplay in a variety of ways. However, the following combinations demonstrate both potential matches and mismatches.
Matching examples
The Sage and the Explorer complement one another nicely since they both value wisdom and knowledge. While the Explorer seeks knowledge through firsthand experience, the Sage seeks understanding through research and reflection. They can strengthen each other’s weaknesses and widen their customer engagement by working together.
The Caregiver and the Innocent, also complement each other effectively since they both value nurture, compassion, and empathy. The Innocent conveys a sense of clarity and optimism, whereas the Caregiver offers support and guidance for customers. They may foster a safe atmosphere for one another and for customers by working together.
Mismatched examples
The Ruler vs. the Rebel: The Ruler archetype is concerned with upholding order and control, whereas the Rebel archetype is all about breaking the rules and defying control. Because the Ruler wants to maintain the status quo and the Rebel wants to change it, these two archetypes might easily collide.
The Sage vs. the Innocent: The Sage is concerned with truth, wisdom, and understanding, while the Innocent is focused on simplicity, knowledge, and optimism. Because the Innocent is pleased with the world as it is and the Sage is constantly looking to learn more and understand the nuances of life, these two archetypes may clash.
Without insinuating any relationship pros or cons, the below are some example OEM and corresponding Dealer brand identities. Advantages arise when the dealer and OEM give their best effort to make sure that their most important customer-focused behaviours are complimentary. The examples are based on simple online research and are only meant to be used for conversational purposes.
Key takeaways:
Note:
All brands, dealer names, and original equipment manufacturer (OEM) references are owned by the respective OEM entities or their affiliates. These terms are used by Active Focus Point for reference purposes only and are not intended to indicate affiliation with or approval by the entity.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Friday Filosophy v.04.07.2023
Friday Filosophy v.04.07.2023
For Friday Filosophy v.04.07.2023, our Founder, Ron Slee, shares quotes and words of wisdom from Nelson Mandela.
Nelson Mandela, in full Nelson Rolihlahla Mandela, byname Madiba, (born July 18, 1918, Mvezo, South Africa—died December 5, 2013, Johannesburg), Black nationalist and the first Black president of South Africa (1994–99). His negotiations in the early 1990s with South African Pres. F.W. de Klerk helped end the country’s apartheid system of racial segregation and ushered in a peaceful transition to majority rule. Mandela and de Klerk were jointly awarded the Nobel Prize for Peace in 1993 for their efforts.
Nelson Mandela was the son of Chief Henry Mandela of the Madiba clan of the Xhosa-speaking Tembu people. After his father’s death, young Nelson was raised by Jongintaba, the regent of the Tembu. Nelson renounced his claim to the chieftainship to become a lawyer. He attended South African Native College (later the University of Fort Hare) and studied law at the University of the Witwatersrand; he later passed the qualification exam to become a lawyer. In 1944 he joined the African National Congress (ANC), a Black-liberation group, and became a leader of its Youth League. That same year he met and married Evelyn Ntoko Mase. Mandela subsequently held other ANC leadership positions, through which he helped revitalize the organization and oppose the apartheid policies of the ruling National Party.
In 1952 in Johannesburg, with fellow ANC leader Oliver Tambo, Mandela established South Africa’s first Black law practice, specializing in cases resulting from the post-1948 apartheid legislation. Also, that year, Mandela played an important role in launching a campaign of defiance against South Africa’s pass laws, which required nonwhites to carry documents (known as passes, pass books, or reference books) authorizing their presence in areas that the government deemed “restricted” (i.e., generally reserved for the white population). He traveled throughout the country as part of the campaign, trying to build support for nonviolent means of protest against the discriminatory laws. In 1955 he was involved in drafting the Freedom Charter, a document calling for nonracial social democracy in South Africa.
Mandela’s antiapartheid activism made him a frequent target of the authorities. Starting in 1952, he was intermittently banned (severely restricted in travel, association, and speech). In December 1956 he was arrested with more than one hundred other people on charges of treason that were designed to harass antiapartheid activists. Mandela went on trial that same year and eventually was acquitted in 1961. During the extended court proceedings, he divorced his first wife and married Nomzamo Winifred Madikizela (Winnie Madikizela-Mandela).
After the massacre of unarmed Black South Africans by police forces at Sharpeville in 1960 and the subsequent banning of the ANC, Mandela abandoned his nonviolent stance and began advocating acts of sabotage against the South African regime. He went underground (during which time he became known as the Black Pimpernel for his ability to evade capture) and was one of the founders of Umkhonto we Sizwe (“Spear of the Nation”), the military wing of the ANC. In 1962 he went to Algeria for training in guerrilla warfare and sabotage, returning to South Africa later that year. On August 5, shortly after his return, Mandela was arrested at a road block in Natal; he was subsequently sentenced to five years in prison.
In October 1963 the imprisoned Mandela and several other men were tried for sabotage, treason, and violent conspiracy in the infamous Rivonia Trial, named after a fashionable suburb of Johannesburg where raiding police had discovered quantities of arms and equipment at the headquarters of the underground Umkhonto we Sizwe. Mandela’s speech from the dock, in which he admitted the truth of some of the charges made against him, was a classic defense of liberty and defiance of tyranny. (His speech garnered international attention and acclaim and was published later that year as I Am Prepared to Die.) On June 12, 1964, he was sentenced to life imprisonment, narrowly escaping the death penalty.
From 1964 to 1982 Mandela was incarcerated at Robben Island Prison, off Cape Town. He was subsequently kept at the maximum-security Pollsmoor Prison until 1988, when, after being treated for tuberculosis, he was transferred to Victor Verster Prison near Paarl. The South African government periodically made conditional offers of freedom to Mandela, most notably in 1976, on the condition that he recognize the newly independent—and highly controversial—status of the Transkei Bantustan and agree to reside there. An offer made in 1985 required that he renounce the use of violence. Mandela refused both offers, the second on the premise that only free men were able to engage in such negotiations and, as a prisoner, he was not a free man.
Throughout his incarceration, Mandela retained wide support among South Africa’s Black population, and his imprisonment became a cause célèbre among the international community that condemned apartheid. As South Africa’s political situation deteriorated after 1983, and particularly after 1988, he was engaged by ministers of Pres. P.W. Botha’s government in exploratory negotiations; he met with Botha’s successor, de Klerk, in December 1989.
On February 11, 1990, the South African government under President de Klerk released Mandela from prison. Shortly after his release, Mandela was chosen deputy president of the ANC; he became president of the party in July 1991. Mandela led the ANC in negotiations with de Klerk to end apartheid and bring about a peaceful transition to nonracial democracy in South Africa.
In April 1994 the Mandela-led ANC won South Africa’s first elections by universal suffrage, and on May 10 Mandela was sworn in as president of the country’s first multiethnic government. He established in 1995 the Truth and Reconciliation Commission (TRC), which investigated human rights violations under apartheid, and he introduced housing, education, and economic development initiatives designed to improve the living standards of the country’s Black population. In 1996 he oversaw the enactment of a new democratic constitution. Mandela resigned his post with the ANC in December 1997, transferring leadership of the party to his designated successor, Thabo Mbeki. Mandela and Madikizela-Mandela had divorced in 1996, and in 1998 Mandela married Graca Machel, the widow of Samora Machel, the former Mozambican president and leader of Frelimo.
Mandela did not seek a second term as South African president and was succeeded by Mbeki in 1999. After leaving office Mandela retired from active politics but maintained a strong international presence as an advocate of peace, reconciliation, and social justice, often through the work of the Nelson Mandela Foundation, established in 1999. He was a founding member of the Elders, a group of international leaders established in 2007 for the promotion of conflict resolution and problem solving throughout the world. In 2008 Mandela was feted with several celebrations in South Africa, Great Britain, and other countries in honor of his 90th birthday.
Mandela Day, observed on Mandela’s birthday, was created to honor his legacy by promoting community service around the world. It was first observed on July 18, 2009, and was sponsored primarily by the Nelson Mandela Foundation and the 46664 initiative (the foundation’s HIV/AIDS global awareness and prevention campaign); later that year the United Nations declared that the day would be observed annually as Nelson Mandela International Day.
The Time is Now.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Coaches Corner v.04.06.2023
Coaches Corner v.04.06.2023
In Coaches Corner v.04.06.2023, guest writer and Coach Floyd Jerkins writes this week on the topic of Behavioral Sales Metrics for Coaching Equipment Industry Sales Teams.
Every dealership organization is at a different place in time with the diagnosis of their sales teams and processes. The size of complex and level of operational sophistication are factors. Many times, it’s a location issue more than overall company-wide so that requires custom solutions. So, maybe this article is timely and you’re ready to look deeper into how to make real progress in the sales department.
Professional Sales Management and Salespeople
Great salespeople are great salespeople, and in the equipment industry it’s no different than other industries. There are particular aspects unique to every industry due to a product’s life cycle, style of customers and personalities, buying patterns, and market conditions. And the best salespeople know they have to understand these industry specific characteristics to succeed, but there is more. When you learn to sell, you can sell anything. Yea, I know, I know, but it’s true.
Being a professional sales manager or salesperson in the equipment industry isn’t for everyone. There are real superstars doing this work every day and many of them make it look easy. They have a natural and personal approach that gets the job done. Others have tried and failed. Many linger on with average performance. Yet, owners who sell often do not follow the system they expect their salespeople to follow or they have a perceived top producer that no one can touch.
There are typically high and low performers when you have a large sales team. Improving the performance metrics of sales managers and salespeople can be challenging to establish what particular actions need to be taken.
Building a sales team of all superstars is a great plan, but not always realistic or practical. In my experience, sales management and sales teams usually have a mixture of age and talent with varying skill sets and competency levels.
A Sales Managers Rally Cry – To Sell More, Talk to More People
To sell more, talking to more people always seems to be at the top of the list of things to do. Still, if a salesperson talks to a lot of people and prices a lot of people but doesn’t have a good measured closing ratio, it makes me wonder how effective they are and whether they should be allowed to keep talking to your customers. When a sales manager influences the sales team with a whip and chain or talks more about the problems than the solutions, is that the most effective leadership style to use in today’s business climate? I don’t think so.
The traditional metrics for sales success include new and used margins, sales volume, new and used turns, and a mixture of others. To be an excellent asset manager, you must know these metrics and how to positively influence their outcomes.
Performance Metrics Created Before & After the Sale
Like many traditional metrics, margins, turns, and other sales department indicators are created after a unit is sold. The efficiency of your booking and accounting practices determines when the sale appears in a statement. That could be anywhere from one week to sixty days past when the actual sale was made. Once the numbers are current, you can assess what’s going on. If you’ve followed my articles about this, you know where I am headed.
Let me ask a few questions:
Perhaps you took a few seconds and thought about your answers. I appreciate the effort. Now, consider your answers and what you know and don’t know.
“The goal is to coach performance in the areas that help salespeople become more effective with real-time data. Becoming more effective in sales and marketing your business requires a deep understanding of your customer base so you can focus the sales and marketing team on what matters the most.”
Behavioral Customer Segmentation
The old saying is you can’t improve something unless you measure it. One of the first principles of process improvement is as a process evolves make sure you are measuring the right things.
You probably already know the customer by machine or product sold, sales volume, and parts and service sales, so tracking this kind of customer segmentation can reveal even more real time data. Even a basic CRM system can track these customer categories.
Total Customers
Customer Categories
The sale is the end result of all the activities performed by a salesperson. By coaching performance on these sales activities that happen before and during the sales process, we can naturally increase a salespersons effectiveness.
When you measure these you learn a lot about how your sales mix is made up, how effective sales and front-line people are in each category, and even how well your marketing is doing. It also speeds up the learning curves. If you don’t know these, you are at the end of the sales cycle making decisions. When you are looking at unit sales, you are best guessing how effective your sales and marketing efforts are.
A Behavioral Sales Mix- BSM
Each salesperson should log every Customer Contact interaction each day. To get buy-in, a sales manager communicates with the sales team to create the “rules of logging” they’ll follow. For example, if the salesperson is at the parts counter talking with Joe Customer and he asks how much that used machine is, that should be logged. Each person inputting into the system should understand what the code means when they log it. GIGO- garbage in, garbage out.
Salespeople shouldn’t be allowed to post at their discretion, and that’s part of the rules created in the early stages of implementation. You don’t allow your accounting staff to post credits however they like, nor do you allow technicians not to record their time. Salespeople should be required to a certain standard of recording their day-to-day activities. Its good business.
It’s essential to know how many Closes to Face-to-Face Contacts there are in the same time period. This establishes one of the fundamental Closing Ratios for performance improvement.
By tracking these customer categories and how many face-to-face contacts by salesperson and how many closes by salesperson, you are ready to create a new view of your sales mix. Stay tuned, next month’s article will be on the analysis of these metrics.
Floyd can be reached at fl****@**.com or www.floydjerkinsexecutivecoaching.com.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.
Mastering Nonconforming Material Management for a Leaner, Meaner Business
Mastering Nonconforming Material Management for a Leaner, Meaner Business
Guest writer Sara Hanks offers practical tips on mastering nonconforming material management for a leader, meaner (but nicely!) business.
It is great to be back with another blog post. While the title might suggest that I’m advocating for a “meaner” business, I’m not encouraging cutthroat tactics. Instead, let’s explore how to master nonconforming material management and make your operation leaner and more efficient.
As an operations or quality leader, improving the nonconforming material management process is essential to reduce waste, enhance efficiency, and prevent recurring defects. We’ll delve into three practical steps to accomplish these goals and showcase an example from my personal work experience. Managing the nonconforming material process in a timely manner will avoid costly consequences.
Segregate and review defective parts daily.
Start with establishing a visible area to segregate the defective parts, as this will prevent the defective parts from being used in production or in your service center. Review the parts in the segregated area on a regular basis. Daily reviews are ideal to keep the parts top of mind.
While I was the quality engineer of an electric motor manufacturing company, there was an issue where a part failed due to an electrical issue during the final test. The motor was set aside to make room for production. A day or so later, another similar issue occurred, and a day or so after that an electrical issue occurred with a component that went into the motor. Eventually, we discovered the root cause of the issue – the wire that made the electrical parts that went into the motor had a defect. The defect could pass several tests and go undetected; piles of parts have accumulated. If we reviewed the issue regularly, the root cause would have been discovered sooner, saving a lot of rework costs.
Define ownership and measure cycle time.
There are four major steps to a nonconforming material management process: identify/segregate, disposition the fix, execute the disposition, and verify the completion. Each phase needs an owner. In the execution phase, different teams own the step based on the disposition. For example, scrapped parts or parts that need to be returned to the supplier are managed by materials, whereas parts that require rework should be managed by operations.
Once it is clear who owns which step, measure each step of the process. If the process is managed in an IT system, there are date stamps recorded as parts move through the process. These can be used to create the measurement system. Set goals for each step. If you are not sure what goal to set, try a 10% improvement over an established baseline, which can be determined by measuring the data for 8-12 weeks.
With the electric motor issue, the lack of ownership of each step extended the time to resolve the issue. The purchasing team was responsible to send the motor out to be torn down, however, the parts did not ship for several weeks after the root cause was identified because they weren’t held accountable. The accumulated defective parts sat in inventory – remember these are nearly finished goods, not supplied parts, so the inventory impact was significant. Additionally, the customer order was finite. We left the repairs to the last minute and used overtime to ship the parts on time. Measuring the process by the owner would have prevented the unnecessary cost.
Implement a Continuous Improvement Framework
My favorite continuous improvement framework is the DMAIC process, or Define, Measure, Analyze, Improve, and Control. However, when it comes to continuous improvement for everyone in the organization, the DMAIC process may be too challenging to learn and adopt. A simpler, more accessible framework is the Plan-Do-Check-Act or PDCA framework. Here is a brief overview of the PDCA cycle:
Encourage everyone to participate in PDCA projects. Create a reward system to promote engagement. Rewards can be simple, such as recognition during an all-company meeting, or celebrating with a small party. Company swag is good, especially if employees can wear it during work hours. Buying a jacket or a hat for completing a project is extremely low cost compared to the savings of the project. This approach helps in addressing the root cause of defective parts, which will impact the cost of quality over time.
In the electric motor example, we did identify a corrective action project to prevent a recurrence. In the wire manufacturing process, a preventive maintenance schedule was created to replace components likely to wear on a regular basis. The small cost of changing a roller is minute compared to the larger expense of reworking the finished product. I cannot remember if we celebrated with a pizza party or not, but in hindsight, if we didn’t, we should have!
Take inspiration from my electric motor example, where timely root cause analysis could have saved money and contained the issue. Don’t let nonconforming materials pile up and obscure underlying problems. Instead, tackle them head-on with proactive measures that involve the ENTIRE team. By doing so, you can avoid missed deliveries due to quality issues and foster a culture of continuous improvement.
Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.