Exceed Revenue Goals

/in , , /by

Exceed Revenue Goals

Guest writers Debbie Frakes and Steve Clegg are back with a new and relevant blog post this week which covers the topic of how to meet and exceed your revenue goals.

Revenue and transaction trends tell a story about your company. They allow you to recognize sales patterns and understand what activities, processes, and methods lead to consistent business growth. Without this information, you won’t be able to make sound decisions for your company. Tracking and acting on revenue analytics and trends will help you answer the following critical questions: 

  • Who should you target for marketing initiatives? 
  • Which products or services should you focus on? 
  • What customers and prospects should your salespeople spend time contacting?

If you don’t determine the right answers to these questions, then you won’t be able to meet your revenue goals, let alone exceed them. 

How to achieve your revenue goals. 

When it comes to drivers of revenue, two of the most important analytics are the number of transactions and customer retention. They explain exactly what is happening in your business and where you may be falling short. These two revenue analytics go hand in hand, because the longer someone works with you, the more transactions they will make. 

Below is an example of a business whose new customers during the past 12 months make up 51% of their total number of customers. The numbers show how the behavior of these customers changes over time, if they keep working with you. 

Average transactions

Year 1: 3

Year 2: 13

Year 3: 18

Average revenue 

Year 1: $39,099 

Year 2: $154,537 

Year 3: $178,789

These revenue analytics show that the longer a customer works with you, the more valuable they become to your company. For this reason, when it comes to meeting and exceeding your revenue goals, retaining customers over the long term should be a primary focus of your sales and marketing teams. 

Act on revenue trend information. 

Tracking revenue analytics is great, but they won’t do you any good if you don’t actually use the information to your advantage. The area where you can make the largest impact towards meeting and exceeding your revenue goals is by improving customer retention and increasing purchase frequency. Remember, for most companies, the longer someone works with you, the more lucrative they become for you. Here are some methods for boosting your company’s customer retention and purchase frequency: 

  • Regular emails – It’s important to consistently communicate with your customers. We recommend sending several emails a month highlighting the products and services you offer, reminding them to purchase, and establishing yourself as the expert in the industry and their go-to source for assistance. Emails sent out by our partner, Winsby, typically double or triple customer purchase frequency. 
  • Offer targeted suggestions – View your customer purchase data to recognize patterns and anticipate what they may need or when they might be getting low on a product. Then you can send them a message or give them a call that is specific to their current needs. 
  • Use customer satisfaction surveys – Regularly ask for feedback from customers about how they feel about your company and how well you are fulfilling their needs. By conducting customer satisfaction surveys, you’ll find out about problems and have the opportunity to solve them before a customer leaves you. Customer satisfaction surveys conducted by Winsby typically boost retention by 20% – 30%. 
  • Calling prospects to expand your email list – Calling provides new leads and introduces customers to your company. Winsby clients see an average increase of 60% in customers’ purchases when they have been called. 

The effectiveness of Winsby email and calling services. 

Customers receiving Winsby emails typically purchase two to three times more often than customers who don’t receive emails. Here is an example the results that an equipment dealer saw with Winsby emails: 

The Winsby calling program identifies decision makers at the companies you’re targeting and then adds them to the email list. Here are the results for a dealer they work with: 

Understand the types of purchases customers are making. 

In addition to looking at customer retention and number of transactions, you also should be tracking types of purchases. Identifying which products sell the greatest quantities will help you focus your marketing and advertising strategies better. Products that are normally purchased more often will deliver a greater ROI for your marketing campaigns than less popular products would.

Once you determine your most frequently bought products, you can then place greater resources behind them and see a higher return. 

Take full advantage of revenue analytics. 

By understanding which customers produce the most value for your business and which types of products and services result in the most transactions, you can better target your sales and marketing efforts. You’ll reach and exceed your revenue goals if you focus on retaining your current customers and push the products that generate the most money. 

Our partner company, Zintoro, will track these key revenue analytics and many others, as well as provide specific strategies for improving them. Their portal shows you exactly which customers should be called when and which products should be promoted. They are the answer for equipment dealers and other businesses who want to make sense of their numbers and use them to their advantage. 

If you want to understand your revenue analytics and use proven strategies to exceed your revenue goals, contact Zintoro today for a demo. Today many businesses rely on outdated data and backward-looking reports for planning. Zintoro generates greater than 95% accuracy in their 12 month forecasts to see the future and plan versus reacting and continually trying to explain the past. 

Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.

The Little Things Do Matter

/in , /by

The Little Things Do Matter

Learning Without Scars’ new guest writer John Dowling is a United States Marine veteran who has had a successful 25-year career in the Product Support Industry. He started as an equipment mechanic and worked his way up to be a field service mechanic. John was promoted to service manager and eventually to branch manager of a heavy equipment dealership. Then he accepted a position as a field service representative for a major heavy equipment manufacturer. In his last role before entering the recruiting and consulting industries, John was Director of Product Support at a 9-location heavy equipment dealership.  John is also the author of the book Service by the Boxes, a manual on how to run and develop a best-in-class service department. “The Little Things Do Matter” is his debut blog post for us.

Years ago, when I was a Director of Product Support at a dealership we had much success early on, but at one point we plateaued and became complacent. This happens sometimes when success comes too easily or too quickly for an organization. So, I put together a training campaign for my parts and service managers to get back to basics. I was trying to communicate to them that being best-in-class in product support is a game of inches, not yards. Doing the little things right is what matters. I was reminded of this in B.J. Frogg’s book Tiny Habits. Doing the little things right and completing the small tasks drives momentum and creates motivation to continue to push on to do the bigger things. Jesus of Nazareth quoted in Luke 16:10 said “One who is faithful in a very little is also faithful in much.”     

 

Creating habits or processes in the parts and service departments is key to creating and developing a best-in-class dealership. If you’ve been in this industry for any length of time you’ve heard the statement, “The sales department sells the first machine and parts and service sells the rest.”  Which is a true statement. Ironically enough when a dealership is struggling with market share, they never focus on the real driving force. Which is the product support side of the business. Now you can use discretionary money, cut your margins, run a sales campaign, and increase marketing spend to try to recapture market share but all these activities will be short-lived. At some point, the other manufacturers or dealerships will discount their prices more and produce a cleverer marketing slogan or campaign. Eventually, the dealerships are just spending a lot of money and enter the never-ending cycle of who can get to the bottom first.

 

When I say focus on product support, I do not mean that the sales department or executive management blames all the dealership’s shortcomings on parts and service. What is meant here is that to maintain market share and sales revenue you must have a robust and effective parts and service departments. And yes, this means having the right people leading these departments, but being best-in-class is more than having the right people on your product support team. You must have a process, and everybody must know and follow that process.

Now let’s get back to our main point. We must create a culture of building “tiny habits” or doing the little things right. A good well defined documented process ensures that we do the little things right. In my new book Service by the Boxes, I break down the service process into ten individual steps or boxes. At the end of each chapter, we discuss each of the boxes or steps and I give examples and show how being best-in-class at each stage of the work order process is just doing the little things right.

 

What are some of these little things that any dealership can do to drive customer service? Remember customer service will help you maintain your market share. Chick-fil-A dominates the fast-food industry and one of the little things that they do well is saying, “My pleasure.” 

Here is one for the service department. Confirm machine hours and serial numbers on every machine that is dropped off for service. The top two reasons warranty claims are denied or delayed processing are because of incorrect hour readings and incorrect serial numbers. 

Here’s another one for service, open a work order the same day the machine is brought in for service. If you review your RIP (Repairs in Progress) report daily this will ensure that a machine is not lost or forgotten. I have seen service departments cut two to five days from their total repair time just by opening the work order the same day the machine came in.

One more little thing about service. Technicians complete their service report the same day they complete the repairs on the machine and turn it in. All the hard work has been done. If the technician does not do the little thing right and does not turn in a completed service report the same day he completes the repair, he can prolong the “work order life cycle” time, which decreases customer satisfaction and trust in the dealership. Not to mention this has a major negative impact on the dealership’s cash flow. 

 

Now to parts. Pull all in-stock parts. If a part goes on a counter ticket or a work order it should be physically removed from the parts inventory. It should be placed on a will-call shelf or given to the service department. If this little thing does not occur, there is a good possibility the part in question will be sold to another customer. This can prolong a service repair in the shop. This can also negatively affect customer satisfaction of the one who drove an hour to buy the part from you just to discover it was sold to someone else. 

Call the customer when their part does not show up. Parts go on back-order and parts get lost in transit. This happens every day. The dealerships have zero control over it, but if we can control the narrative, we can still be best-in-class. How, you ask? We call the customer before they call us. If the customer calls us to ask about their part that did not show up, they lose trust in us, they will doubt we have their best interest at heart. If we call the customer first, let them know that the part did not show up, and inform them what is being done to rectify the situation; the customer will not lose trust in us and will perceive this as great customer service. Oddly enough, the situation is exactly the same. We might even gain additional trust from them. The customers still will not be happy, but they will not be upset with us. They will know that we are working hard for them to resolve the problem of the lost part.

 

Being best-in-class and delivering great customer service is not about doing the big and remarkable things but about doing the unimportant things. Creating a culture of “tiny habits” by developing a well-documented process that ensures the little things are being accomplished will drive your success. Not to mention increasing your bottom line. 

 

LWS Note: John’s Book is something that should be read by everyone.

 

Service by the Boxes.

 

Want to take your service department to the next level? This book provides a practical approach to service management, addressing real-world issues that dealerships face every day. With its clear and concise best-in-class practices, Service by the Boxes empowers you to drive success in your service department from day one. Increase customer satisfaction and market share with the principles in this must-read book.

Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.

Start Your Day

/in /by

Start Your Day

Our founder Ron Slee waxes nostalgic and vulnerable in his blog post this week. “Start Your Day” isn’t just a look back over six decades of a career, though, it sings the praises of all of the productive habits and accomplishments you can reach when you are an early riser.

Start Your Day

Over the course of my work life, now spanning sixty years, I have always been an early riser. That still seems strange to me in that one of the things I did to pay my way through university was to play the piano in a bar. I finished typically at 4:00 AM. I was still on the ski hill at 9:00 AM with a group of students. 

 

I started work in this industry in 1969. Pretty soon thereafter I was travelling two weeks a month, sometimes more. Being in my early twenties it never bothered me. I thought it was exciting. It was the time of James Bond and so I ate alone a lot. I always had a book to keep me company. Then I got married and suddenly, I was a nervous flyer and didn’t want to travel. That became significantly more difficult when I became a parent. I didn’t want to leave home at all. That came crushing down on me after Marlene and Caroline had dropped me off at the airport and Caroline asked Marlene if she had done something wrong that I was leaving. That gets you.

 

Travel has been a large part of my life. I have travelled over eight million miles on airplanes. Believe me when I say that is not a badge of honor. To make it more interesting it was all over the world. That means I had to deal with time zones a lot. My doctor collaborated with me in that he had me on a three-step regimen. We started over the counter and escalated from there depending on how many days it had been without sleep. Remember I was teaching two-day classes that typically ran for ten hours and then involved dinner with the students. I can’t tell a lie. I love teaching, I always have.

But in the past few years I have travelled significantly less. But my timetable is still pretty much the same. I wake up between 4:00 AM and 5:00 AM and I am typically sitting at the computer shortly thereafter. You know the routine. Read your email, respond to various issues, and other things that take you away from a normal routine start to your day. 

Then I read an article that changed that routine for me. Since then, things are different here. I have a series of things I must do BEFORE sitting at the computer. The article was by Perri Blumberg, and it definitely got my attention. Her recommendations, as with most things, are very straightforward and tend to be simple things. 

  1. Wear a variation of the same thing every day. Think Steve Jobs. Well, I did that. I had a Brown set of clothing and a grey set. A blazer, pants, neutral shirts, and shoes. I would come home on a Thursday or Friday and unpack and pack. From one color to the other.
  2. Before you get out of bed, set yourself up for a cheerful outlook. Think about everything you are going to accomplish today.
  3. Drink WATER. Hydrate yourself. You have been lying in bed all night and your body has been consuming the water you have stored in your body. It needs a fill-up.
  4. Then I move away from what Perri suggests, block out time for a high impact task. I moved to Nir Eyal, a Behavioral Scientist who teaches at Harvard for guidance. His book titled ‘Indistractable’ changed how I do my work. I have always been a “ToDo” List guy. Now I schedule my day with “Blocks”of time. It reduces the amount of stress in my day. I don’t have to finish something. I allocate specific blocks of time to things and when the alarm goes off signifying that that block of time is finished, I move on to the next time block. Imagine working one way for sixty years and finding a better way for me. I am profoundly grateful to this man.

Habits are hard to break so this morning routine is still a work in process. I do wear a variation of the same clothing now every day. I do lie back and look at the ceiling or the clouds in the sky and think of the good things I will get done. I am having trouble with the water thing. I still want my morning coffee or tea, but I am working on it. The time blocks have made an incredible difference, not just in my work but in my life.

I have given myself permission to think about my life with more focus as I get older. I wish I had started this exercise earlier in my life. Do you spend time thinking about your life? You should.

The Time is Now.

Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.

Navigating the complexities of the truck driver shortage

/in , /by

Navigating the complexities of the truck driver shortage

Bob Rutherford is a 50-year veteran of the trucking industry. Thirty of those years were as a member of the TMC where he earned both the Silver Spark Plug and Recognized Associate awards for his contributions to the industry. He is also an Ambassador for the EnergyandMobility.org Conference. Today he shares a paper by John E. Dorer, “Navigating the complexities of the truck driver shortage.”

The powerful brand of CCJ reaches 96,500 subscribers within the freight transport business. Many of these are the fleet executives and managers that have the buying power to grow your business. This multi-channel brand allows for repeated impressions in effective formats.

Navigating the complexities of the truck driver shortage

A Paper by John E. Dorer

Courtesy of Bob Rutherford of CCJ.

The trucking industry, an essential backbone of the U.S. economy, faces an ongoing critical challenge: a significant shortage of drivers.

This shortage — 60,000 as estimated by the American Trucking Associations — is not just a transient issue. It has profound implications on the supply chain, affecting everything from the availability of everyday consumer goods to the stability of national economic growth.

The industry, alongside government entities, is implementing or exploring a variety of strategies to fill the gap, from recruiting a more diverse range of employees and offering specialized training to technological advancements such as autonomous trucks and government policy changes like more flexible hours of service.

Why the shortage?

The trucking industry’s labor challenge is multifaceted, stemming from a combination of demographic, economic and regulatory factors.

Aging workforce
One of the primary reasons for the driver shortage is the aging demographic of current drivers. Many are nearing retirement age, and there aren’t enough younger drivers entering the profession to replace them. At 46, according to the American Trucking Associations, or as high as 60 in CCJ’s 2023 “What Drivers Want” survey, the average age of a commercial truck driver in the U.S. is significantly higher than that of the overall workforce, 42, indicating a generational gap in the industry.

Challenges in attracting younger drivers
A variety of factors have made it a challenge for the industry to attract younger drivers. The demanding nature of the job, long hours away from home, and the perception of truck driving as a less desirable career path contribute to the issue. Moreover, federal regulations require commercial truck drivers to be at least 21 years old to drive interstate, which limits the pool of younger drivers who can enter the field immediately after high school.

Impact of COVID-19
The COVID-19 pandemic had a significant impact on the trucking industry. Many drivers were laid off or chose to leave due to health concerns or to care for family members. The pandemic also disrupted training and licensing processes, creating a backlog of new drivers trying to enter the industry.

Regulatory changes and implications
Over the years, regulatory changes have also affected the trucking industry. Hours-of-service regulations, designed to ensure drivers get adequate rest, also limit the number of hours a driver can work, impacting earnings and job appeal. Compliance with these and other regulations like the electronic logging device mandate add to the operational complexities for drivers and companies.

Economic factors
Economic factors play a significant role in the labor shortage. While truck driving can be lucrative, the pay structure (often based on miles driven or hours worked) and the lack of regular home time can be deterrents. The rising cost of living and stagnant wages in certain segments of the industry also contribute to the difficulty in attracting and retaining drivers.

Impact of the shortage

The truck driver shortage has wide-reaching implications that affect not just the industry, but the entire supply chain and U.S. economy.

Supply chain disruptions
The shortage directly affects the efficiency of the supply chain. With fewer drivers available, there’s a delay in the transportation of goods. This leads to longer delivery times and can cause shortages of products in various sectors, from retail to manufacturing. The just-in-time delivery model, which many businesses rely on, is particularly vulnerable to such disruptions.

Increased costs for consumers
The inefficiencies in the supply chain inevitably lead to increased costs, which are often passed on to consumers. The shortage of drivers can lead to higher shipping rates, and these increased costs can result in higher prices for goods. This inflationary effect can have a significant impact on consumer spending and the overall economy.

Challenges for trucking companies
Trucking companies are under immense pressure due to the driver shortage. They face increased operational costs, including higher wages to attract drivers, costs associated with driver turnover, and investments in recruitment and training. The competition for qualified drivers can also be intense, leading to a bidding war between companies.

Economic impact
Disruptions in trucking reverberate throughout the U.S. economic system. The driver shortage can hamper economic growth, affecting industries that rely on trucking for transportation of raw materials and finished products. It also impacts the labor market, with ripple effects in related sectors like logistics, warehousing and distribution.

Responses and solutions:

Recruitment strategies
Trucking companies are intensifying efforts to attract a diverse range of candidates, including younger individuals, retirees from other fields, military veterans and foreign nationals. These campaigns often highlight the benefits of truck driving, such as competitive pay, the opportunity for travel and, for immigrants, the chance at permanent residency and stable work in America. 

Training and licensing
Specialized training programs are being offered to efficiently prepare new drivers. There is also advocacy for lowering the interstate commercial driving age to 18 to expand the potential driver pool.

Technological innovations
Technological advancements, including the development of autonomous trucks, are seen as a long-term solution to the labor shortage. Meanwhile, improvements in truck technology are making the profession more attractive and less physically demanding.

Policy changes
Revising regulations, such as hours-of-service, and providing funding for training initiatives are ways the government is contributing. Furthermore, improving the efficiency of utilizing immigration programs, which allow skilled and unskilled workers, including truck drivers, to immigrate to the U.S., would benefit the industry.

A complex web of challenges makes potential solutions to the commercial truck driver shortage equally complex. Trucking companies and government agencies must be just as diverse in strategies to put more drivers on the road, ensuring stability in the supply chain and economy.

Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.

My Journey of Career Growth

/in , /by

My Journey of Career Growth

Learning Without Scars is pleased to introduce our new guest writer, Kurt Pease. He was born on June 8th, 1961, in Portage, Wisconsin. He grew up in Whitewater, Wisconsin, in a family where his father worked as a university professor and his mother was a speech pathologist. From an early age, Kurt was instilled with a strong work ethic that would shape his future endeavors. His writing focuses this week upon those endeavors in, “My Journey of Career Growth.”

After completing his education, Kurt graduated from UW Whitewater in 1983 with a BA in marketing. He embarked on a successful career spanning several industries, where he held various management positions and achieved notable accomplishments.

In 1985, Kurt joined Sherwood Medical in Chula Vista, California, and later in Tijuana, Mexico. As a Master Scheduler and Production Planner, he was responsible for material, production, and sterilization control. During his tenure, Kurt designed and computerized the Production Plan, leading to increased efficiency and reduced backorders by 200% while maintaining low inventory levels. He also played a key role in implementing MRP software.

In 1987, Kurt joined Interactor America in Elkhorn, Wisconsin, as the National Sales Manager. In this role, he oversaw aftermarket sales and marketing activities, including dealer development and profit and loss accountability. Kurt successfully created a nationwide dealer organization and significantly increased potential income to $25 million through targeted dealer benefits. Additionally, he spearheaded the establishment of a $5.5 million wholesale market, representing 20% of corporate sales.

In 1993, Kurt joined John Deere Construction Equipment Company in Moline, Illinois, where he remained until 2017. He held various positions of increasing responsibility, including Territory Sales Manager, Sales and Marketing Manager, and Product Manager. As a Territory Sales Manager, Kurt promoted the sale of products and services to dealer/channel partners in the western United States. He excelled in building relationships and resolving issues between channel partners and the company. In his role as Sales and Marketing Manager, Kurt achieved outstanding results, with annual sales exceeding $80 million and independent distributor sales totaling $20 million. He also assumed the position of Product Manager, where he initiated a start-up program through the Deere dealer channel, overseeing new product development, inventory management, and advertising and promotion.

From 2017 to 2019, Kurt worked at John Deere Financial in Johnston, Iowa, as a Regional Finance Manager. He trained and coached finance managers to improve sales performance and increase market share. Kurt also developed effective channel partner relationships and supervised a team of six employees.

Most recently, from 2019 to 2022, Kurt served as the Director of Customer Support at 4Rivers Equipment, a John Deere and Hitachi dealer, located in Greeley, Colorado. In this role, he led the agricultural and construction organizations’ product support business efforts, aligning with financial and operational objectives to maximize profitability. Kurt excelled in attracting, retaining, and effectively engaging department personnel.

Throughout his career, Kurt Pease has achieved numerous accomplishments, including coaching, and motivating the largest dealer territory to maximize market share, creating replacement component programs and independent dealer organizations, and driving significant sales growth. His leadership, strategic thinking, and ability to build strong relationships have been instrumental in his success.

Currently, Kurt is semi-retired working for a local medical school. In his free time, he enjoys fly fishing in the rivers of the Colorado front range.

My Journey of Career Growth: Cultivating Relationships and Embracing Opportunities

In the journey of my career, there were pivotal moments that shaped my trajectory, often propelled by cultivating relationships and embracing opportunities outside my comfort zone. These two elements, although requiring effort and personal commitment, had a profound impact on my growth and success.

Building Meaningful Relationships

Building meaningful relationships is the cornerstone of any successful career. Whether it’s with colleagues, mentors, or industry peers, the connections we foster can open doors, provide valuable insights, and offer support during both triumphs and challenges. It is often surprising how these connections can come from individuals we least expect. Throughout my career, I have found that every position change or promotion was a result of a relationship that had been previously cultivated. My resume was rarely the deciding factor; rather, it was the bonds I had formed with others. People do business with people, and they prefer to work with individuals they have developed a relationship with. We naturally gravitate towards those who share common bonds and experiences.

During my college years, I worked as a night auditor at a popular resort. It was a wonderful job that allowed me uninterrupted study time once I completed my bookkeeping duties. It was during this time that I met Joe, a German sales and marketing executive at Interactor, a construction component manufacturer. Every night, Joe and I engaged in conversations that lasted for hours. From him, I learned invaluable insights about working for a multinational company, knowledge that college didn’t provide. Joe sensed my eagerness to learn, and even though we lost touch after I graduated, he tracked me down several years later in Tijuana, Mexico, and offered me a role as a Customer Service Manager working with companies like JI Case and John Deere. This opportunity became my foothold in the construction equipment industry. From there, my career flourished, moving from one company to another, consulting at John Deere, and eventually leading to a long and fulfilling career in that industry.

As I progressed in my career at John Deere, from Product Manager to Sales and Finance Regional Manager, I discovered the importance of reciprocity in relationships. By offering support, sharing insights, and actively engaging with others, I not only strengthened my professional network but also cultivated a sense of camaraderie and collaboration that proved invaluable in achieving common goals.

Embracing Uncomfortable Opportunities

Embracing uncomfortable opportunities has also been instrumental in my professional growth. Stepping outside of my comfort zone allowed me to learn and advance in ways that familiarity cannot offer. While the familiar may offer security, it’s often the unfamiliar territory that presents the greatest opportunities for growth. After completing my undergraduate degree in the Midwest, I decided to explore life outside of my comfort zone. My sister had landed in San Diego, and she offered me a place to live while I sought out my first post-college job. It was 1983, and the job market was tough. I was pushing out resumes with little success until a HR manager called me for an interview in southern San Diego. To my surprise, the company was looking for a Master Scheduler for a Maquiladora in Tijuana, Mexico—a role that required scheduling a factory that produced medical disposables. I knew nothing about factory scheduling, nor working in a foreign county, but I spent hours with the Plant Manager, who patiently taught me the ropes. Despite my initial apprehension, this experience taught me how to work in a plant environment where Spanish was the primary language spoken. It was a leap that bolstered my confidence and broadened my horizons. I grew up during those two years, crossing the US-Mexico border every day.

Taking calculated risks has also been a defining factor in my career progression. Whether it was pursuing a new role, exploring a different industry, or spearheading innovative initiatives, embracing change and uncertainty allowed me to seize opportunities for growth and advancement that I might have otherwise overlooked.

The Intersection of Relationships and Risk-Taking

What I have come to realize is that the most significant leaps in my career have often occurred at the intersection of cultivating relationships and taking calculated risks. The synergy between these two elements has propelled me forward in my professional journey. Leveraging connections to explore new opportunities and drawing on support networks to navigate unfamiliar terrain has been transformative. The trust and rapport built through meaningful relationships have served as a catalyst for venturing into uncharted territory with confidence and support. Knowing that I have a network of mentors, colleagues, and allies cheering me on has emboldened me to embrace uncertainty, seize opportunities, and continue evolving as a professional.

Conclusion

In retirement, I have decided to venture beyond my comfort zone by working at a local medical campus. Stepping into the realm of education and mentoring, I am ready to share my wisdom and experiences with aspiring medical professionals. Working at a medical campus will not only challenge me intellectually, but it will also allow me to connect with the next generation of doctors, nurses, and healthcare professionals. It is a chance to inspire and guide these eager minds as they take their first steps towards making a difference in the world of medicine. Although this new journey might be unfamiliar and require adaptation, I am excited to embrace the challenges and enrich my retirement years with meaningful engagement and the satisfaction of nurturing future healthcare leaders.

Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.

What is Cultural Dilution and How to Avoid It

/in , /by

What is Cultural Dilution and How to Avoid It

Guest writer Jay Lucas highlights some of the risks of rapid corporate growth in, “What is Cultural Dilution and How to Avoid It.”

We’ve all heard the expression, “too much of a good thing ain’t always good.”  Can this really be true when it comes to corporate growth? Can too much growth be a bad thing? Not only does rapid growth put strain on systems and processes, but it can also have an impact on the very thing that is often central to a company’s success, its culture.

Definitions

  • One definition of culture is, “The set of predominating attitudes and behavior that characterize a group or organization.” 
  • Dilution also has a couple of definitions, “1) The process of making weaker or less concentrated. 2) A dilute or weakened condition.
  • Cultural Dilution then can be defined as making predominating attitudes and behavior that characterize a group weaker or less concentrated.

I coined the term “cultural dilution” over a decade ago to describe the effect rapid growth can have on a culture. We’ve been fortunate to have worked with numerous clients experiencing significant growth. In our observation, the challenge hardest for them to manage has been the impact that growth has on culture. Does this mean that a company must put a governor on growth to protect its culture? Or does it mean that it must sacrifice its culture to achieve its growth objectives? The idea that it is one or the other is a false dichotomy. Below are a few suggestions to help protect the culture of a team or organization during times of rapid growth.

Purpose

Clearly define and live the vision, mission, and values. Sounds easy, but the truth is many companies have them but fail to use them when solving problems, hiring, terminating, selecting clients, among others. These are not simply platitudes that adorn the halls and walls of a company or its website. Vision, mission, and values are the foundation and without them no company can withstand the stresses, good or bad, that it will certainly face.

Planning

Commit to long and short-range planning. Long range planning allows for greater vision and is a moving target. The plan should allow anyone at any point in time to stop and lift their head from their immediate task and remember why they are doing what they are doing. Having said that, it has been said that Vision without execution is hallucination. Therefore, short-range planning is also important. The long-range plan is the elephant. The short-range plan is how you make eating the elephant one bite-at-a-time possible. The company should have a regular cadence for re-establishing or creating new objectives. We suggest quarterly. Annual is not frequent enough, and monthly is too frequent.

Systems

Don’t wait to scale until the machine begins to fail. The best way to conduct preventative maintenance is through regular review of your key performance indicators. If KPIs are suffering, then the people, process and/or systems likely need some maintenance. This often comes in the form of re-configured or implemented technologies, training & development, (re-)development of policies, procedures, and even KPIs. We have learned that a balanced scorecard approach to planning helps ensure that goals in one area of the business don’t sacrifice goals or objectives in another. Competing objectives or goals is symptomatic of organizational misalignment.

People

I can’t emphasize this one enough. There are no sacred cows! It makes no difference who the person is. If they are undermining the vision, mission, and values they must get on board, or they must go. Teams and organizations must not allow tenured and even founding members to hold the company hostage as they resist necessary change. As employees are added to keep up with growth, oftentimes legacy employees resist the fresh perspective of new staff. Phrases like, ‘this is not how we do things,’ or ‘this is the way we’ve always done it’ are the kiss of death. If these resistors are allowed to stay, regardless of their inability to evolve, then you have a sacred cow.

Communication

Communication is critical. This can’t be emphasized enough. Great leaders must reinforce the vision, mission, and values of the organization. Additionally, they must ensure that everyone knows their purpose and position on the team and its importance to achieving the objectives. Change is hard but getting buy-in and frequently communicating the “why” behind the “what” is critical when managing rapid growth.

Flexibility

Cultures are living organisms. They must be given room to grow and evolve. The only aspect of the business that should remain constant is the vision, mission, and core values. Pardon the expression, but we’ve all heard the phrase, “there is more than one way to skin a cat.” There are many paths to the destination. Make sure not to hold too tightly to the past. Inflexibility will suffocate the change necessary to stay relevant and alive.

If you are experiencing rapid growth and the resulting cultural challenges, we hope this article is a benefit to you. If you need help augmenting your hiring process, we can help. Our proven process, world-class recruiting tech stack, and our seasoned recruiters are an ideal blend of resources to improve any recruiting process.

Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.

The Bucket Game: Navigating the Pitfalls in Service Management

/in , /by

The Bucket Game: Navigating the Pitfalls in Service Management

Guest writer Jim Dettore walks us through the ways in which we use different metaphorical buckets to juggle our financial reporting in, “The Bucket Game: Navigating the Pitfalls in Service Management.”

In the complex world of service management, the “Bucket Game” has become an all-too-familiar practice. This game, often played by service managers, involves the shuffling of hours from one job to another across different accounts on the profit and loss (P&L) statement. While it might seem like a harmless balancing act, the implications run deeper, often masking underlying issues and hindering the pursuit of a truly high-performing service operation.

Understanding the Bucket Game

At its core, the Bucket Game is about reallocating hours from one job to another within the P&L statement. For instance, if a particular job takes longer than expected, a manager might move hours from a more profitable job to cover the overrun. This practice creates an illusion of efficiency and profitability, but in reality, it does not affect the bottom line. The total hours and costs remain the same; they’re just distributed differently.

The Illusion of Profitability

The primary allure of the Bucket Game is the appearance it creates. By shifting hours around, a service manager can make a particular job look more profitable than it actually is. This can be particularly tempting in environments where performance is measured strictly by the profitability of individual jobs.

 

Masking the Real Issues

The significant downside of this practice is that it conceals the actual problems that occur during the job. Issues like inefficiency, lack of skill, or process defects remain hidden under the guise of redistributed hours. This lack of transparency prevents the organization from identifying and addressing the root causes of inefficiencies.

The Impact on the Bottom Line

Although the Bucket Game can temporarily improve the appearance of individual job profitability, it does not change the overall financial outcome. The total hours worked, and the costs incurred remain the same. The real danger lies in the false sense of security it provides, potentially leading to poor decision-making based on inaccurate data.

Best Practices to Avoid the Bucket Game

To foster a high-performing service operation, transparency and honesty in reporting are crucial. Here are some best practices:

  1. Emphasize Accurate Reporting: Encourage a culture where accurate time reporting is valued over the perceived profitability of individual jobs. This honesty allows for a clearer understanding of where improvements are needed.
  2. Focus on Process Improvement: Instead of masking inefficiencies, identify and address them head-on. Continuous process improvement should be a priority, with a focus on training, better planning, and resource allocation.
  3. Implement Robust Tracking Systems: Use technology to track time and expenses accurately. This can help in identifying trends and problem areas more efficiently.
  4. Encourage Open Communication: Create an environment where employees feel comfortable discussing challenges and inefficiencies without fear of retribution. This openness can lead to more effective problem-solving.
  5. Align Incentives with Overall Performance: Instead of incentivizing managers based on the profitability of individual jobs, align their incentives with the overall performance of the service department or the company. This approach encourages a more holistic view of success.
  6. Regular Audits and Reviews: Conduct regular audits and reviews of job performance. This helps in keeping track of the actual vs. reported performance and deters the practice of hour shifting.
  7. Customer Feedback Integration: Include customer feedback in the performance evaluation. Sometimes, customer satisfaction can be a more accurate indicator of job performance than internal financial metrics.
  8. Leadership by Example: Leadership should set the tone by prioritizing ethical practices and transparency. This top-down approach can significantly influence the organizational culture.

Conclusion

While the Bucket Game might offer short-term benefits in the appearance of individual job profitability, it ultimately hinders the growth and efficiency of a service operation. By embracing transparency, focusing on genuine process improvement, and aligning incentives with overall performance, organizations can avoid the pitfalls of this deceptive practice and stride towards a truly high-performing operation. Remember, the goal is not just to look successful, but to be successful.

Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.

Utilization of Business Tools: Understanding and Growing the Dealer’s Hydraulic Business

/in , /by

Utilization of Business Tools: Understanding and Growing the Dealer’s Hydraulic Business

Guest writer Ron Wilson continues his study of the hydraulics side of our industry in this week’s guest blog, “Utilization of Business Tools: Understanding and Growing the Dealer’s Hydraulic Business.”

Customer and industry surveys can play a significant role in identifying and developing growth opportunities in the product support business. The following is an example of how survey information can help shape the hydraulic rebuild/repair business within a dealership.

 

Three examples of survey information:

  • Industry studies & research
  • Study the local market to evaluate the current state by using customer input.
  • Dive into the historical parts & service sales activities to support finding and identify new opportunities.

 

Industry Studies and Research

 

There are many professional trade associations that conduct ongoing studies. An example relating to the hydraulic industry is the information from National Fluid Power Association (NFPA) https://nfpahub.com/stats/market-trends/. This organization provides some free information from their website, and a deeper dive can be obtained through membership status. For example, the information below provides the dollar volume trend in fluid power shipments over the past several years. A deeper dive into more specific hydraulic markets is available from the website such as mobile hydraulic components.

Studying the Local Market

 

Comparing the local market to the national market brings a clearer view of the opportunities and areas to focus on to obtain a deeper understanding of the potential.

 

Designing the Survey of the Local Market is an important starting point.

 

The initial questions of why we are doing the study and what is the intent of the outcome.

 

  • Objective- Define the objective of the survey:
    •  Are we gathering feedback on existing programs/services?
    • Identifying new offerings opportunities
    • Identifying areas for improving current programs/services

 

Below is an example of the customer responses from three surveys conducted between 2018-2023. This allows us to determine changes in the market and customer expectations:

 

  • Ranking 1 & 2 shows the area of high importance to the customer, while 5 & 6 shows the less important. The scale was in a range of 1-10 (1 being of most importance).
  • Changes in the market can be seen in Pick Up & Delivery and Availability of Exchange. Both areas have become of higher importance over the three surveys, while Warranty, Loyalty, Local Support/Convenience, and Performed by Dealer being of less importance.
  • Without the survey we may have selected focus areas that can be costly and not as important to the customer and overlook areas that are of importance to the customer.

  • Develop the structure of the questions. 

Are we trying to identify the: 

  • Satisfaction with current services 
  • Areas needing improvement.
  • Additional services to be added to current offerings. 
  • Overall experience and suggestions with our company and with competitors

 

The information below provides examples comparing rebuild quality and pricing of the common hydraulic components. A key element shown below is the customers feel the rebuild quality is about the same as the competitors, but the pricing is considerably higher.

The above information can lead to discussions and modifications to address these two critical areas of quality of rebuilds and pricing.

 

Utilizing multiple channels to obtain survey responses can provide a broader reach of responses. 

 

A combination of the following can provide a broader view, but requires a little more management of the information going out to the customer and coming back in: 

 

  • Email (SurveyMonkey is a great tool with some limitations based on subscription level)
  • Website/social media
  • One on One visits and interviews (focus groups can be useful in this space as well)
  • Internal data showing data points from an historical view.

 

Analyzing and leveraging the results of the survey is really the important part of effort. We are looking to: 

 

  • Identify trends.
  • Segment results 
  • Prioritize Opportunities and Timelines.

The example below identifies the rebuild seal kits that have been purchased over the counter by customers, which can help identify rebuild opportunities for the dealer’s hydraulic shop. For example, a continued growth in the sales of part number A1000 may provide an opportunity to provide exchange lean cylinder for motor graders, or a rebuild program with a firm rebuild price.

The results of the questions below show the customer’s preferred pricing method. In this case Firm Quote is the preferred pricing method in all examples. If our shop only provides Time & Material pricing and our competitors provide Firm Quote, we will most likely gain business by changing our pricing strategy.

The example below shows the level of interest the customers have in utilizing the dealer’s exchange offerings, and the internal use of dealer exchange by the Service Department. 

The question below relating to Warranty Coverage may be a surprise. Usually, we think of longer warranties as a sales tool/incentive, but in some cases longer warranties may not be a key driver in growing the business. In the case below 180 days warranty is the most preferred by a wide margin. Anything below and over 180 days may not provide as much perceived value based on the customer’s input.

Implement Change based on the results of the survey information will take some time and focus:

  • Translate survey finding into actionable insights will involve:
    • Sharing the survey results with the various internal stakeholders such as:
      • Parts Department
      • Service Department
      • Product Support Sales Representatives 
      • Leadership team
    • Action plans and timelines are critical at this point. It may not be possible to implement everything at once but start with a critical few and roll the other items out within a defined time.
  • Communicate the survey results to the customers sharing the changes/improvements being implemented based on their feedback. 

Hopefully the above example shows how the use of external information, local market analysis, customer surveys, along internal historical data can provide direction, focus, and information to grow and manage your product support business.

Disclaimer- The data shown are not actual results, but modified results of an actual study.

 

Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.

The Indispensable Role of Mentors…

/in , /by

The Indispensable Role of Mentors…

Guest writer Jim Dettore writes about the importance of mentorship in the heavy equipment and industrial engine trades with this weeks guest blog, “The Indispensable Role of Mentors…”

Introduction:

In the intricate and demanding world of heavy equipment and industrial engine trades, the guidance of a seasoned mentor is not just a luxury—it’s a necessity. From troubleshooting complex machinery to navigating the nuances of customer relations, mentors play a pivotal role in shaping the careers of professionals in this field. In this blog post, I’ll delve into the importance of mentors, the pros, and cons of tribal knowledge, and share personal insights from my journey, where mentors have significantly influenced various aspects of my professional life.

The Essence of Mentorship in the Trades:

Mentorship in the heavy equipment and industrial engine sectors is more than just learning the ropes. It’s an immersive experience that combines technical expertise with real-world wisdom. Mentors in these fields offer invaluable insights that textbooks or formal education often overlook. This hands-on knowledge is crucial in a sector where precision and expertise can mean the difference between success and costly failures.

Pros and Cons of Tribal Knowledge:

Tribal knowledge – the unwritten, experience-based knowledge passed down through generations – is a double-edged sword in the heavy equipment and industrial engine trades.

Pros:

  • It provides practical, time-tested solutions.
  • Enhances understanding of unique, machine-specific quirks.
  • Fosters a sense of community and continuity within the trade.

Cons:

  • Risk of perpetuating outdated or inefficient practices.
  • Lack of standardization can lead to inconsistency in work quality.
  • Potential loss of valuable knowledge if not formally documented.

Impact of a Good Mentor:

A good mentor does more than impart technical skills; they shape your approach to challenges and problem-solving. My personal journey is a testament to this. I’ve been fortunate to have mentors who have broadened my understanding in various domains:

  • Troubleshooting: Learning to diagnose and resolve issues swiftly and efficiently.
  • Customer Skills: Developing the ability to manage expectations and build trust with clients.
  • Business Management: Gaining insights into effective business operations and decision-making.
  • Finances: Understanding the financial aspects of running a business in the trade.
  • Sales: Acquiring techniques for successful selling and customer retention.
  • Product Support: Learning the importance of after-sales support and customer service.

Each mentor brought a unique perspective, contributing to a well-rounded skill set that goes beyond technical expertise. Certainly! 

Lifelong Learning and Becoming a Mentor:

Even now, at the age of fifty-eight, my learning journey is far from over. The beauty of being in the heavy equipment and industrial engine trades is that there is always something new to discover, and I am fortunate to still have mentors who continue to enlighten me with fresh perspectives and knowledge. This ongoing process of learning is not just enriching; it’s a powerful reminder that growth and development have no age limit.

My experience has come full circle, as I now find myself in the role of a mentor to several individuals. Being a mentor is incredibly rewarding and a responsibility I take seriously. It allows me to give back to the industries that have given me so much, shaping the next generation of professionals. I strive to provide them with the same level of guidance and support that I received throughout my career.

This role reversal from mentee to mentor is a unique journey. It has taught me the importance of patience, the value of sharing experiences, and the satisfaction of seeing others grow and succeed. My goal as a mentor is not just to teach technical skills but to instill a mindset of continuous learning and adaptability, which are crucial in our ever-evolving field.

In essence, mentorship in the heavy equipment and industrial engine trades is a cycle of knowledge and experience that keeps turning, from one generation to the next. Whether we are learning or teaching, each of us plays a pivotal role in nurturing this cycle, ensuring the longevity and advancement of our trade.

Conclusion:

In the world of heavy equipment and industrial engine trades, mentors are the unsung heroes. They not only impart technical knowledge but also guide you through the maze of industry-specific challenges. While tribal knowledge has its place, it’s the structured guidance and diverse experiences offered by mentors that truly forge a successful career in this field. My journey, enriched by multiple mentors, stands as a testament to the transformative power of mentorship. It underscores the importance of fostering and valuing these relationships for anyone aspiring to grow in this dynamic and challenging industry.

Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.

How to Measure Sales Performance Unlocking Success: A Guide to Effectively Track and Boost Your Sales Reps’ Performance

/in , , /by

How to Measure Sales Performance – Unlocking Success: A Guide to Effectively Track and Boost Your Sales Reps’ Performance 

Guest writers Debbie Frakes and Steve Clegg return this week in, “How to Measure Sales Performance – Unlocking Success: A Guide to Effectively Track and Boost Your Sales Reps’ Performance.”

In the dynamic world of equipment sales, your sales reps are the driving force behind your success. They not only steer potential leads to becoming valued customers but also play a pivotal role in nurturing existing client relationships. Without a high performing sales team, your business risks stagnation and having customers leave for competitors.

It is essential to employ robust strategies for tracking and improving the sales performance of your representatives. This blog will guide you through the process, emphasizing the significance of regular performance analysis and introducing the effectiveness of Zintoro.com to guide actions that result in improving sales.

Complete a Sales Performance Analysis

To ensure your sales reps consistently meet their goals, conducting a comprehensive sales performance analysis is imperative. This involves tracking key metrics such as:

  • Conversion Rates—Measure how effectively leads are turning into customers.
  • Appointment Setting Rates—Evaluate the efficiency of securing meetings with potential clients and existing customers to capture more of their transaction.
  • Customer Retention Rates—Assess how well your reps are maintaining relationships with existing customers and building these relationships by expanding the products and service purchased.
  • Customer Purchase Frequency and Consistency—Understand the frequency at which customers make purchases and the impact of weekly and monthly purchases.
  • Overall Revenue and Gross Margin—Gauge the contribution of each rep to the company’s revenue and profits.

Setting realistic goals for these metrics is an important part of this process. With regular analysis you can track progress and identify areas for improvement. Zintoro forecasts expected sales with a >95% accuracy which provides realistic expectations for branches and sales territories. 

Why it Matters for Your Dealership

Sales rep tracking is not just about metrics; it’s about the success and sustainability of your dealership. By regularly monitoring performance, focusing on customers that are at risk of being lost, managers can quickly identify underperforming reps and take corrective actions. Recognizing critical Zintoro sales metrics helps in setting benchmarks for the team, providing insights into individual achievements or shortcomings.

Without tracking sales performance and customer engagement, you risk being in the dark about your team’s accomplishments or any underlying issues. Early detection of performance problems allows for timely corrections, action plans, and issue resolution, preventing customer loss.

Implement a Zintoro Sales Performance Analysis

Enter Zintoro.com — your comprehensive solution for an exact understanding of how well your reps are meeting their goals. With Zintoro’s sales performance analysis, you can:

  • Identify Shortcomings—Recognize areas where reps are falling short and gain insights into the root causes.
  • Comparison Insights—Let your sales reps compare their performance with others, fostering healthy competition and motivation.
  • Strategic Actions—Zintoro not only provides insights but suggests actionable steps to enhance customer engagement, retention, and overall growth.

Zintoro’s suggested actions pinpoint precisely what needs to be done to elevate sales performance with real growth both in upturns and industry downturns. If you’re ready to embark on a journey of tracking and improving sales performance, or if you have questions about the most important sales metrics, contact Zintoro today.

Unlock the potential of your sales team with Zintoro.com — where insights meet action for unparalleled growth.

Did you enjoy this blog? Read more great blog posts here.
For our course lists, please click here.