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Principia for After-sales – part three

Today, Ryszard Chciuk continues his blogs on Principia for after-sales with part three of the series.

In several posts starting from Principia for Business, I am sharing my way of defining and implementing the main principles (values). In Principia for After-sales part 2, I presented my point of view on the potential conflict between private and company values, on the importance of constant reminding and following of the main principles, and how I was writing their definitions.

Now, let’s go back to my after-sales team’s main principles. They were listed in Principia for After-sales part 1. It was my adaptation of our corporation’s main values: Quality, Safety, and Environmental Care.

The No 1 is “Integrity.”

The notion of integrity is mentioned on about 500 million of webpages (only in English). So, what did it mean for us? I decided to use the Stephen L. Carter definition: Integrity, as I will use the term, requires three steps: (1) discerning what is right and what is wrong; (2) acting on what you have discerned, even at personal cost; and (3) saying openly that you are acting on your understanding of right from wrong. It was not easy to explain that definition in simple words. Lately, I found the more useful explanation. Charles Marshall in Shattering the Glass Slipper wrote: Integrity is doing the right thing when you don’t have to — when no one else is looking or will ever know — when there will be no congratulations or recognition for having done so. Where is the man who will do the right thing, no matter what the cost? Is there anyone who will act with integrity even if it means losing a job or an important business deal? Where is the woman who would be willing to act in openness and honesty if she knew it meant losing a significant relationship or a large sum of money? Are there still people in this world who would sacrifice their pride, relationships, or profit in order to maintain their integrity? Are you such a person?

These are hard questions, but you have to answer them if you treat seriously your values. And do not forget to discuss with your people how it is working. The best way is to analyze examples taken from your company life.

The No 2 principle is “Care of people and environment.”

It translates into “Always take care of your co-worker, customer, supplier, investor and of all kind of life”. Obviously, it concerns safety, too high fuel consumption, respect for the environmental regulations, stable and decent working conditions, etc.

The No 3 principle is “Profitability.”

It refers to all players of the business game you are in. You need to earn enough money to stay in business. When you fall, your customers will not be supported at the same level, at least by the time another provider takes over your business. Also, you will not be able to support customers if you kill your suppliers, and this happens just after you force them to supply products at the same quality, but for a much lower price. Then you will also be a loser. If you want to increase your department profitability by the reduction of your employees’ remuneration, they will decrease their loyalty and your company will die soon.

The No 4 is “Excellence.”

This means: “We are satisfied with nothing less than the very best in everything we do”. Today I would remove this principle from the list. Why? If you want to be recognized as the man of integrity you do not do things in a sloppy way, isn’t it?

Next time I will present some examples of how we utilized our values.

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Job Shock Part Four: A New Time Bomb: An Explosion of Skilled Worker Shortages

 

Edward E. Gordon, the founder and president of Imperial Consulting Corporation in Chicago, has consulted with leaders in business, education, government, and non-profits for over 50 years. As a writer, researcher, speaker, and consultant he has helped shape policy and programs that advance talent development and regional economic growth. This week, he continues his blog series with Job Shock, Part Four.

Gordon is the author or co-author of 20 books. His book, Future Jobs: Solving the Employment and Skills Crisis, is the culmination of his work as a visionary who applies a multi-disciplinary approach to today’s complex workforce needs and economic development issues. It won a 2015 Independent Publishers Award. An updated paperback edition was published in 2018.

It is already apparent that as COVID-19 restrictions ease, a pent-up demand for many types of goods and services will be unleashed. As businesses reopen or expand to meet this boom, the demand for skilled workers will soar. It is not likely to fall for the rest of this decade. As cited in prior “Job Shock” segments, a major demographic shift, serious education deficits, and rising job-skill demands have combined with COVID-19 to undermine the quality and composition of the U.S. labor force. An April 2021 National Federation of Independent Businesses survey found that 44 percent of small businesses had job openings they could not fill, a record 22 percent higher than the 48-year average for this survey. Ninety-two percent of businesses seeking workers reported few or no qualified applicants. The U.S. Bureau of Labor Statistics reported that there were a record 8.1 million job openings at the end of March 2021. We estimate the true number to be over 11 million.

Employers Face Mounting Skills Challenges

COVID-19 has greatly increased the need for skills training. The shift to remote work has placed new skill demands on many employees. Because of the pandemic’s devastating effect on certain industries, about 20 percent of U.S. workers have left their former jobs for new types of work. A March Prudential Pulse of American Worker Survey found that about one-quarter of the workers surveyed plan to look for a different job with another employer once the current crisis eases. All these factors indicate that employee training must be greatly increased.

A significant shift in the priorities of American businesses is urgently needed. In recent years business expenditures on training and education have declined. For every dollar America’s chief foreign competitors invest in employee talent development, U.S. business invests only 20 cents. Training is mostly concentrated on managers and professionals. Only about 20 to 30 percent of U.S. employers have offered entry-level job training or provided employees with training updates. Much of what is now done is mandated by safety regulations. It is not about building new skills.

A recent McKinsey Global Survey found that 69 percent of businesses were doing more skill building than they did prior to the pandemic. However, only 28 percent of these organizations had a training department or similar facility focused on learning. The organizations that employed a variety of education/training methods reported a higher rate of success in reskilling and upskilling their employees.

Even though COVID-19 has greatly increased the need for entry-level training and reskilling, many businesses are again expanding stock buy-backs and increasing dividends rather than investing in worker skills. American companies and organizations instead need to launch new HR initiatives to fill skilled job vacancies and upskill their existing employees through a variety of means including corporate universities and training partnerships.

Human and Financial Costs

Job Shock will have a major economic impact in the United States and globally. In 2030 estimated U.S unfilled jobs range from 25 to 30 million. Globally over 95 million jobs could be vacant. The financial costs for individuals., businesses and nations will be staggering. By 2030 U.S. GDP loss could be over $2.5 trillion. Global losses might reach $18 trillion.

Job Shock: Where Do We Go from Here?

The picture that emerges from before, during, and after the COVID-19 crisis is an American workforce with an abundance of people, but a shortfall of talent for the jobs of the Fourth Industrial Revolution. An analysis of the composition of the U.S. labor market at the beginning 2020 and projecting what it might be like in 2030 if the education-to-employment system remains unchanged shows:

Seventy percent of jobs (114 million) were high to mid-skill. Only 55 million workers were qualified. The result was a 60 million job deficit. American employers tried to fill these vacancies with retired baby-boomers, workers brought from other countries, foreign students attending U.S. universities, and/or the increased use of automation. Companies unable to find skilled talent moved their jobs abroad. Thirty percent of all jobs (50 million) were lower skilled. There were 110 million workers at that level, i.e., with limited math and reading competencies. The result was a 60 million worker surplus. Many gave up looking for a job (and thus were not counted as unemployed) because they were not offered entry-level job training.The 10.5 million estimated vacant jobs cost the United States $253 billion in lost productivity and profit.

At least 75 percent of jobs (128 million) will be high to mid-skill. Only 33 percent of American workers (about 56 million) will be qualified for these jobs, resulting in a 72 million job deficit. The U.S. skilled labor shortage will deepen because 70 million baby-boomers will have aged out of the workforce, a global 50 to 95 million skilled worker shortage will limit immigration to the United States, and increased automation will demand ever higher skill levels from workers. The pace of companies leaving the United States due to skilled-talent shortages will rise.

In contrast, 25 percent of U.S. jobs (32 million) will remain low skill. If education and skill upgrades are not adopted over this decade, possibly 114 million low skill people will be in the U.S. labor force. A huge “techno-peasant” underclass will compete for a diminishing number of low skill jobs. High unemployment coupled with mounting skill shortfalls could pose a real threat to American social stability.

An estimated 30 million vacant jobs are possible. The economic loss to the U.S. economy will be between $ 1 trillion to over $2.5 trillion.

The Job Shock Crossroad

We do have the power over this decade to increase the education and skills of American workers. We can produce a workforce that meets the talent requirements of 2030. It does require coordinated actions from key sections of our society. Picture the American talent creation system as a boat with two figures pulling the oars and a third at the rudder. Parents are the rudder steering a better course for their child’s future. One oar is pulled by educators (K-12, post-secondary). The other oar is in the hands of employers providing job training and skill updates to their workers. If one or more of these parties fails at their roles, the boat goes off-course, stops, or sinks from ever larger job shock waves.

This coordinated effort needs to start at the regional level. Enlightened community leaders need to pull together to keep the boat on course. The COVID-19 pandemic has produced a storm of hurricane proportions making the need for immediate action more vital than ever.

Yet many people across America remain opposed to systemic social changes. They are deeply divided into multiple warring “tribes.” They remain at war with each other rather than working to reach agreement on vital common goals. Their acceptance of the cold, hard facts of “Job Shock” remains a hard sell.

The longer the United States delays making systemic changes to the education-to-employment system, the deeper the economic and social turmoil between now and 2030. As Lawrence Summers, the former U.S. Treasury Secretary said about employment, “Walk outside: labor shortage is the pervasive phenomenon.”

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Parts Campaigns and Promotions

This week, owner and managing director Ron Slee talks to readers about the importance of campaigns and promotions in your parts department.

Have you ever considered the counter or telephone sales job functions at an equipment dealership? High stress, work comes in tsunamis, or there is a lull in the action and it gets tedious. I have bad memories of how much the parts counter and telephone sales job functions can become an endurance test to get to the end of the day. The phone is ringing constantly, customers and others are walking in for service, and they seem to comes in hard and fast nearly all day long. It is almost impossible at times during the day to keep up.

One of the many challenges that I faced was how to make the job exciting. How to put some sizzle into it.

I wrote last week about the fact that we didn’t have enough people to regularly contact all of our customers, and yes that is very true. BUT I want to add to the problem. I want to create some excitement in the department. To make it a “cool” place to work.

In one of our subject-specific classes “What’s Your Why” I ask the question of “What Do You Do? If you are at a party or a church social or a pub and someone asks you what you do, what is your answer? Think about that. Then in the class, I ask them to tell me how they do it. Some can tell me, however, many will struggle with the explanation. But I really stop the room when I ask them “Why Do You Do It?” And I tell them they can’t say it is to make money.

Oh, I sell parts to owners of construction equipment. I sit at a desk and make telephone calls to sell parts and I answer calls from customers wanting to purchase parts. Sounds really exciting, doesn’t it?

So, I asked everyone involved how can I help you with this job? How can I help make this exciting for you? Nobody came up with anything very good. We all agreed on that. So, we talked about it and argued about it and we finally agreed to do something beneficial for the customer and rewarding for the employees. And campaigns and promotions were born. We had fun, which was what I was trying to do and yes, we sold a lot of parts. The group of us, there were eight people on the counter and I started exploring different ideas and we had as much fun designing these things as well as executing them. Then we put together a plan. We called it a Promotion Planning Tree. I have put these campaigns and promotions into many dealers since. I would estimate over one hundred different dealerships around the world.

At Learning Without Scars, we have a Campaigns and Promotions class that goes through all of the ins and outs of putting these programs together. It is a three-hour program with reading materials, pretests, a video of power points with audio tracks and embedded film clips with some ten or quizzes inserted into the class before a final assessment and a customer experience survey leads the students who achieve an 80% score obtaining a certificate of accomplishment.

A little later we started naming these programs – “January Jumps” “February Frenzy” “March Madness” “April Angst” – I am sure you get the idea. Then we started having a Parts Managers Special of the week, month, or quarter depending on what the objective was for that particular program. We had GOALS for all of them. Of course, we paid commissions for these programs but we also built in individual and store competitions. The highest number of Sales, by person and store; the most improved sales performance, by a person and by a store. And we added a “booby prize.” The last place also won an award. This we did only by store. We had a trophy made. Use your imagination for what that trophy should be and go get one made. It doesn’t cost much. Have an award ceremony, and with what we have learned with Teams Meetings and Zoom you can get everyone on the line at the same time. Make a BIG deal out of this. NOTE: We do the same thing for the service department and the product support sales team. Have some fun. Enjoy yourself. It is not unprofessional to have fun, especially when you can get everyone excited about their jobs and create some friendly competition. It is also great to see your high performers get the public recognition that they deserve. We would put our results in the company newsletter. Get pictures taken and frame them (especially for the low-performance store – I never saw a store repeat as a low-performance store – people truly are competitive).

Who said that we couldn’t have fun doing our work, our jobs? Not me. Try it. I am sure you will like it, and yes you will sell more parts.

The time is now.

 

Return to Work after a Workplace Injury – The Power of Words

In this week’s guest post, Return to Work after a Workplace Injury, Sonya Law highlights the power of words for our readers.

Exploring how the power of words can impact the recovery trajectory for an injured worker.

An employee who injures themselves at work feels immediately vulnerable and for the workplace it is a very serious incident, the priority should be the employee receiving immediate medical care. And for the workplace to contain the area where the incident has occurred where practicable to prevent any further injuries to other workers and subsequent investigation to take place.

If the injury is to the hands in particular, if we talk about manual workers as a group, their hands are used to perform all sorts of functions, when they are injured, it has a huge impact.  Their whole career flashes before them, with questions, like, am I going to be able to do my job, am I going to be able to work again. The hands are an extension of our brain and injuries to the hands can have multiple impacts physical, psychological, cognitive, and emotional overwhelm and trauma from the incident.

So, when we think about employees who have injured themselves at work, it is important to use language that shows genuine care and compassion towards them as people.

Five important tips, think of the injured employee:

  1. Are injured until proven otherwise
  2. Needs a medical diagnosis
  3. Doesn’t want to be injured
  4. Needs assistance and support
  5. And time to be made comfortable physically and emotionally, before you commence questioning them or complete a safety investigation.

When people are returning to work, the words we choose to use can change the way they feel, they need to feel cared for as a human being first.  Safe in the knowledge that they are supported and are a valued member of the team.  The emphasis needs to be on empowering them to take control of their injury, by providing them with medical attention which will give them knowledge about their injury and prognosis. Which will help them to heal and recover and be back to work with their friends and colleagues as soon as they are medically able, we are talking post-injury management.

The words we use can change the recovery trajectory from being a smooth and positive experience to being negative and difficult.  As a return-to-work coordinator or manager in charge of an employee’s return to work, it is important that you keep the lines of communication open.  It is already difficult for the employee who has experienced the trauma not only of the workplace incident and resulting injury but also being cut off from their fellow workers and workplace.

It helps when we listen and ask open questions like, how do you feel? This signals to the employee care, that you are taking the time to check in on them and their recovery.  Talking allows the employee to process what has happened to them and take ownership and responsibility for their recovery and healing which has positive impacts to the timeline for returning to work.  Talking about the injury and experience allows them to open up and verbalise how they are coping and come up with strategies that assist them in their recovery. When an employee feels genuinely cared for, they are more willing to take responsibility for attending medical appointments and follow up on rehabilitation and physio exercises that aid their return to work.  Physio is not an easy option, physio is difficult and sometimes painful, so acknowledge their effort and energy required to persevere.

A return-to-work coordinator who is disinterested and continually hard to get hold of sends a negative message to the employee that you are too busy to care.  Layer upon that the use of negative language and closed questioning, can put the employee on the defense and have a negative impact on the trajectory of their recovery and return to work timeline.  What could be a positive and progressive return to work experience then becomes a complex case.

An example of some open conversations could be: I am calling about your hand, how are you feeling? Are you feeling ready to come back to work? Sounds like it is healing up nicely and you are feeling more comfortable than last week? You are making great progress; what physio are you doing this week?  Are you getting around okay with not being able to drive, are you sleeping and eating, okay? Do you have someone to care for you at home or family or neighbors who are helping you?

Let them know the positive improvements to safety in the workplace as a result of their input into the safety investigation: We are going to make the modifications you suggested and some improvements that came out of the workplace investigation, that are going to make a real difference to your colleagues and make your job easier and safer for you when you return to work.

The biggest risk to the injured workers is not only the lack of support from managers but negative interactions with work colleagues when they return to work.  An example of this is a conversation, where their colleague says: We had to pick up the slack while you were away, because of you we were so busy and stressed.  The injured worker feels on the outer and starts to feel socially isolated at a time when their resilience is already low.  Their mental health starts to suffer they feel pain and it may impact their recovery, productivity, leading to absenteeism and an interrupted return to work plan.

If they are feeling a bit anxious or sensitive about returning to work, let them know that’s normal and that you are there to support them.  Talk with their work colleagues and ask them to be patient and supportive in the days and weeks that they return to work.  Encourage colleagues to use positive language, that it’s good to see them back, they were missed and to take care and if they feel any discomfort to speak up.  So that they don’t feel alone, this support and comradery will help the injured worker to feel happier and good about being back at work and possibly prevent re-injury.

The injury is not only a physical one sometimes it can take the injured worker time to build up confidence again to do a task that they routinely did before without a problem, reassure them it takes time and its normal.  Try to avoid putting tight deadlines on them, where there is time pressure to complete tasks until they feel more confident with the work.

Regularly ask them if they are experiencing any discomfort are they managing, okay?  Being thoughtful and using positive language supports their recovery rather than using negative and inflammatory language, which will make a difference to their return-to-work experience.  Questions like: How are you feeling, how comfortable are you, are you feeling more comfortable this week than last week, do you feel better?

The power of words can improve the recovery trajectory for the injured worker, by being supportive and using positive language the chance of recovery is better.

Look after your people, the way you talk with them will affect their recovery.

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Job Shock, Part Three

Edward E. Gordon, the founder and president of Imperial Consulting Corporation in Chicago, has consulted with leaders in business, education, government, and non-profits for over 50 years. As a writer, researcher, speaker, and consultant he has helped shape policy and programs that advance talent development and regional economic growth. This week, he continues his blog series with Job Shock, Part Three.

Gordon is the author or co-author of 20 books. His book, Future Jobs: Solving the Employment and Skills Crisis, is the culmination of his work as a visionary who applies a multi-disciplinary approach to today’s complex workforce needs and economic development issues. It won a 2015 Independent Publishers Award. An updated paperback edition was published in 2018.

Job Shock Part Three: Solving the Pandemic & 2030 Employment Meltdown

Part III: The Kids & Workers Are Not “All Right”

Many students and workers cannot accept the new reality that they are undereducated for many jobs in this decade’s labor market, let alone future ones!

KNAPP has created a robot for warehouses with the dexterity to recognize and sort random items with 99 percent accuracy. Once such robots are put into operation, humans would continue to work alongside them, but the catch is that these workers will need a whole set of additional skills.

“If this happens 50 years from now,” stated Pieter Abbeel, an artificial intelligence professor at University of California, Berkeley, “there is plenty of time for the educational system to catch up to the job market.” The trouble with his prediction is that the COVID-19 pandemic has sped up companies’ plans to further automate workplaces today!

Throughout the course of the COVID-19 pandemic, small business owners have consistently reported that the quality of labor was an important business problem. In a February 2021 National Federation of Independent Business survey 56 percent of the respondents were trying to hire and 91 percent of these employers reported few or no qualified applicants for their job openings.

This situation is the result of outdated regional education-to-employment systems across the United States. They have largely become broken pipelines with an inadequate flow of people qualified to fill local jobs. Unfortunately, this skills-jobs gap has persisted throughout the last two decades.  As labor economist, Kevin Hollenbeck wrote in 2013, “I am reminded of the adage about the frog in the pot. If you put a frog into a pot of boiling water, it will jump out. But if you put a frog in a pot of water and then slowly boil it, the consequences will be dire for the frog. . .. We (workers, employers, policymakers, and politicians) like that frog, have not been alarmed enough by the signals of a widening skills-jobs gap . . . to jump to action, and now we face the dire consequences in the form of a “talent cliff.”

The COVID-19 pandemic has made this talent cliff steeper.  The switch to remote schooling has meant that many students may be behind as much as a full grade level. Jobs go unfilled due to the lack of qualified applicants while more workers remain unemployed for six months or more and the labor-force participation decreases. Clearly the kids and workers are not “all right.” Denial or wishful thinking will not change this job shock reality.

Knowledge Shock

The 2017 film “Hidden Figures” focuses on the lives of three African-American women who NASA hired because of their advanced math attainments. Through making important contributions to NASA’s space mission, these women overcame race and gender discrimination, earned the respect of their co-workers, and secured career advancement. These three women are unsung heroes of the U.S. space race against the Soviet Union.

What was a major reason for their success?  With the long-term help of their parents, each of the women overcame formidable barriers to obtaining the educational preparation that developed their mathematical talents. Education is a shared responsibility between parents and schools. Education should begin at home. Habits of learning should be instilled there. Parents can help a child learn-how-to-learn by fostering each child’s personal talents and interests.

Unfortunately, America’s popular culture does not esteem educators or link educational attainment to success in life. Parents are the primary motivators of their children.  If parents do not believe that doing well in school is very important, neither will their children.

Many parents also believe that their local school is providing a good education to their children. Regretfully this is often not the case. Education levels have not kept pace with skill demands in workplaces.

There is ample evidence that K-12 education in the United States is not providing many students with the educational foundations needed for their future development. Every two years nationwide achievement tests are given to students in grades 4, 8, and 12. The National Assessment of Educational Progress (NAEP) commonly called the “Nation’s Report Card” is conducted by the U.S. Department of Education. Recent results have been nothing short of alarming.

Students are ranked at four levels: below basic, basic, proficient (at grade level), and advanced (above grade level). The Grade 4 test results in 2019 were: 65 percent read below grade level, 26 percent were at grade level, and 9 percent were above grade level. Fourth grade is a crucial point for reading attainment because in the first three grades’ students are taught how to read, but by the fourth grade, they should have attained a level of reading proficiency that enables them to learn how to learn.

At grade 12 in 2019, 37 percent received NAEP reading scores of proficient or above. However, 30 percent were at the below basic level which was larger than in any previous assessment year. In math, only 24 percent of high school seniors were at the proficient or above levels.

Yet paradoxically the U.S. high school graduation rate has been rising. How can this be explained? Grade-level standards are being downgraded or bypassed. For instance, failing students are enrolled in special “credit recovery programs” that allow them to move on to the next grade or graduate with no or minimal academic standards for a passing grade. Clearly all high school degrees are not equal!

The NAEP scores indicate that a large proportion of U.S. students are not equipped with the basic educational foundation needed for success in post-secondary programs. About 67 percent of high school graduates attend higher educational institutions. After six years only about one-third complete a degree, certificate or apprenticeship.

Many of these students take either the SAT or ACT exams that are designed to access their readiness for higher learning. Between 1967 and 2017 overall test scores on these exams have declined. In 2019 only 37 percent of ACT takers and 45 percent of SAT takers tested fully ready for post-secondary programs.

Higher-educational institutions are compelled to offer remedial education for entering students. About 40 percent of entering freshmen are now enrolled in non-college credit reading, math, or written communication classes. At some institutions over 90 percent of entering students need remedial education. Poor student preparation is also leading to declining quality in higher education.

America does have excellent schools and universities. On the 2020 Social Progress Index the United States ranked first in the world in the quality of its universities. But on this same index, the United States ranked 91st in student access to a quality elementary/secondary education. Over the past decade the decline of the U.S. rank on this indicator has been greater than that any other nation. Unless widespread systemic reform of U.S. K-12 education becomes a national priority, a significant proportion of the next generation of American workers will be under-skilled for employment in the workplaces of the future.

COVID-19 Learning Consequences

Since March 2020 almost all K-12 students have been receiving at least some instruction remotely rather than in the classroom. When the pandemic subsides, what kind of learning losses can we expect?

  •  Millions of low-income and rural students lacked reliable internet access and about 3 million mainly low-income students were not enrolled in school. Many will likely fall behind a full grade level or more.
  • The longer the pandemic persists, the greater the harm to students being taught fully or partly online.
  • Online learning is less effective for younger students as their attention spans are limited, and it also negatively impacts their social skill development.
  • Two major testing services reported that the math scores of elementary students dropped 5 to 10 percentile points in fall 2020. Both noted that their 2020 testing pool was significantly smaller as dropouts or students lacking access to digital technology were absent.
  • High school dropout rates most likely will increase

COVID-19 has also led to a severe decline in enrollments at America’s community colleges. Student enrollment was down 10 percent in the fall of 2020 compared to that of 2019. Because community colleges are an important component of apprenticeship, certificate, and other job preparation programs, this is a significant blow to the development of a more skilled workforce. Moreover, community colleges are the most accessible post-secondary option for low-income Americans whose K-12 education has suffered most due to a lack of internet access.

The Best Time for Education Reform Is Now!

In the wake of the COVID-19 pandemic, as the Brookings Report “Beyond Reopening Schools” cogently states “it is hard to imagine there will be another moment in history when the central role of education in the economic, social, and political prosperity and stability of nations is so obvious and well understood by the general population.”  Now clearly is the time for local, state, and federal action to revitalize K-12 education in the United States.

It is time to go beyond piecemeal reforms and playing “blame games” if we are to close the widening gap in the quality of U.S. education. There are some fundamental components of quality education that can be learned from the study of the world’s most successful educational systems.

  1. Great teachers: The key to boosting student results is improving instruction. Teachers need to thoroughly know their subjects and then receive extensive training and coaching in instructional methodology before and after they begin teaching. More top college students need to become teachers. To attract and retain these recruits, we need to front-load their compensation so that entry-level salaries are competitive with those of alternate professions. To keep their skills up-to-date, teachers need quality professional development programs throughout their careers.
  2. Effective Principals: School principals need to be educated and trained as both efficient administrators and drivers of instructional improvement. They have a key leadership role in fostering a culture of high expectations in educational attainment for teachers, students, and parents.
  3. Updated curriculums: All states need to mandate strengthened 21st-century curriculums to give more students the educational foundations necessary for high-skill/high-paying employment. To accommodate the diverse interests and talents of students, more options should be available at the high-school level including career education programs and advanced placement courses.
  4. The Key Role of Parents: The switch to remote schooling during the COVID-19 pandemic seems to have greatly increased parent awareness of the difficulties teachers face in keeping students engaged and in helping them make progress in their day-to-day learning. This should motivate parents to take a greater interest in the quality of the schooling their children are receiving and cooperate more fully in fostering their children’s daily academic progress.

The Looming Disaster of Job Shock

As low-skill jobs shrink due to automation, underprivileged elementary, high school and community college students will bear the brunt of technological advances. They are under threat of becoming the “technopeasants” of the 21st century.

We are referring to millions of our future workers who deserve an education systemically updated to meet the knowledge and skill demands of modern workplaces. America needs them to become part of a new talent pool for the 21st-century, not the victims of job shock.

Coming Next: “Job Shock Part IV”
Businesses across America now complain about the low skills of many job applicants. Yet, they often resist job training or employee reskilling programs. “Job Shock” will next review this paradox in our business culture and what needs to change to avoid potentially dire economic consequences over the next decade.

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Parts Market Capture and HeadCount

In his blog post this week, Learning Without Scars Founder and Managing Member Ron Slee talks to readers about parts market capture and the headcount.

Parts Market Capture and HeadCount

One of the deep memories that I have is how much the parts counter and telephone sales job functions can become an endurance test to get to the end of the day. The phone is ringing constantly, customers and others are walking in for service, and they seem to come in Tsunamis: high hard and fast tidal waves. It is almost impossible at times during the day to keep up. This has been especially true since the early 1980s when the Heavy Equipment Dealer business model was changed.

In the late 70s inflation was out of control reaching levels we had never before experienced. Then Paul Volker, when Ronald Reagan was President, decided to fix it once and for all. At some points, interest rates went into levels in the low 20% range. It was catastrophic for many dealers who went out of business due to impossibly high levels of debt. The solution for most dealers was to cut down on people. The personnel expense was and still is, the highest “variable” cost in the business. So, they reduced the number of people on the counter, in many cases eliminated the Product Support Sales function, and cut back on people throughout the dealership.

It should be noted that the parts market capture rates also peaked in the late 1970s and have been in decline ever since. We just have not delivered the levels of customer service that were required by equipment owners and operators. Given our failure to deliver the level of service they had come to expect, they started to look around at the suppliers in their markets.  Our customers found very willing competitors who wanted to sell them parts. Today we are somewhere in the range of market capture rates that are about half of what they were in the 1970s. From the 1970s to the 2010s we lost half of the available parts market to our competition. Rather unbelievable to consider, isn’t it?  For the traditional parts market share leader, they went from the low 80% range to the high 30% range.

To some degree, the problem is that as an industry we don’t have a standard measure of market potential or market share. The equipment sales teams all have market share calculations to three decimal places. The AEM (Association of Equipment Manufacturers) produces statistics regularly for machines, but nothing for parts and service. By not having a measure available the parts department is given a pass on market share performance. We don’t know what the market share is so we don’t worry about it. I strenuously object.

We can determine our market potential and we can calculate our market share but it requires work. It is fundamental work. We have to know the working machine population in our territory. I believe the most significant question to ask today is why don’t I know my machine population? I have long written about, talked about at conventions, taught in classrooms and in webinars and in internet-based classes, the fact that if you don’t know your machine population you don’t know your business. I am very serious about that statement.

Today, less than half of the machine owners in any dealer territory have been contacted by an employee of the dealership. If you don’t believe me, check it out for yourself. Take a list of your parts sales by customer and sort it in descending purchases. The bottom 50% of those customers have not been contacted by an employee of your dealership in the last year.

I know, you will tell me that they didn’t buy enough to warrant the expense of a call. Wonderful. You will tell me they are so small that they don’t matter to you or your business. I disagree. If you are honest with yourself you will agree with me. Every single customer matters. One day they might replace a machine and who will they contact? You? I doubt it. You left them they didn’t leave you and I don’t believe that you deserve to be considered for that reason alone.

The other problem to consider is that you don’t have enough people to do that work. I agree with you. You have cut back on the number of people to the degree that you don’t have enough people left to do the necessary work. At the counter and telephone selling job function, we have become order processors: the men and women working their work with “their hair going straight back.” They never pick up a phone without someone on the other side of the call. Check it out.

In the 1980s I wrote a lot about the dealer models and again I brought it back in the period following 2008. We had a model, we had business metrics and measures, and we had standards. In the 1980s the standard parts sales per parts employee were $600,000 per year. This needs to get adjusted with variables of gross profit and average unit value of the part and the economics of the region. We had a standard of personnel expense in the parts set at 7% of parts sales. Putting that together, we had $600,000 sales per employee at 7% of parts sales which meant compensation equal to $42,000/year. By today’s standards and skill requirements that is low. Assuming a compensation of $60,000 then sales per employee go up to around $850,000.

Make the adjustment and then you have the proper number of people for doing the job the way the job was done in the 1980s. That means that we need additional staff if we want to contact “ALL” of your customers regularly. With new changes in market and customer coverage, you will continue to lose market capture and make yourself more vulnerable to competitors. Is that what you intend to have happen? I didn’t think so.

The time is now.

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Principia for After-sales, Part Two

Today, Ryszard Chciuk continues his blogs on Principia for after-sales with part two of the series.

In Principia for After-sales and a few next posts, I am sharing my way of defining and implementing the main principles (values). This post is about the potential conflict between personal and company values, how I was writing value definitions, and the importance of constant reminding and following of the main principles.

Theoretically, every new employee joining our team brings his/her own values and his/her own life mission. Unfortunately, many people are not aware of what kind of values they are subscribed to. Thus, both they and their employer can make a mistake when signing the employment contract. But from the other side human consciousness is flexible. Hopefully, he/she will soon realize the values of the company are not in opposition to their private values or they are enough convincing to subscribe to them. And their private life missions can be realized ­– to a certain level – by working for the chosen company.

I numbered the main principles because usually, they conflict with one another. For example, which value is more important: profitability of your department or care of people and environment (it covers also safety)? What gets higher priority: integrity or profitability? If you don’t know, the right answer is indicated by the number of the principle on the list (number 1 has the highest priority).

Some time ago I learned from Start with Why by Simon Sinek that values have to be verbs. He is definitely right. I should articulate my No 1 principal “Integrity” with the sentence “Always do the right thing”. The No 2 principle should be expressed with the words “Always take care of your co-worker, customer, supplier, investor and of all kind of life”. The No 3 “Profitability” means “Not everything we do has to be profitable, but without money, we will not exist as the organization”. The No 4 “Excellence” stands for “We are satisfied with nothing less than the very best in everything we do” (I use the same definition as in Enron’s statement).

On each occasion, I was explaining to my people what our main principles meant and I was using examples taken from the life of our after-sales organization. As I mentioned already in the post Future is Now – Part 2, that kind of presentation was usually taking place in the course of the introductory training. It was led not later than several weeks after starting the job. We worked out that unique training program with the kind collaboration of Impact Polka. It comprised of two sessions (two working days each). And it was mandatory for every new employee. As the opening lecturer, I presented there our department’s long-term goals (vision), the main principles (values), and our mission. Later on, the after-sales team members had to hear it again, and again. Additionally, once a year, during the annual company meeting I presented it to all employees of the dealership.

The leader must prove all the time, everything he is doing himself is up to the common, agreed, and persistently promoted principles. Employees mostly follow their leaders. Employees never follow the company values if the superiors break principles, both in a company or private life. You do not need to decorate your company cars with the team values, print it on every page of marketing brochures or curve in the stone tablets. Your customers are to recognize what are your values at every encounter with your crew. Have you ever asked your key customers what are your company values? You can be surprised when you do!

The main principles are not to be changed neither every year nor when a new manager takes over. They will be followed even if the founder of the values list has gone away. But it will happen only in companies having a very strong organizational culture. To be honest, I have not checked if the after-sales team I was in charge of in the past is still following our main principles. This is for a few reasons best known to me, not the main one is that I am not brave enough to find out.

There are plenty of potential values to be chosen. You will find five hundred examples here. As you can see these are only names of values, just words. The meaning of every value you have to define yourself. Why it is very important? I mentioned already that the set of values would make you different from the competition. Yes, they can steal a copy of your main principle’s declaration. But don’t worry, you are recognized as a better supplier of services because you have taught your people what those words really meant at their daily work. And they are following it. And your customers like it.

The main principles list should not be longer than 3-4 items. Too many values are more difficult to memorize and certainly will not be obeyed. Perhaps this is the main problem with the fulfillment of the Ten Commandments.

I have to underline: the content of the values list is not essential. After all, nobody would present himself as inhuman, unfaithful, dishonest, improvident, etc., isn’t it? The only difference between two organizations having the same set of values is how their members follow those principles.

Next time I am going to present the details about the main principles of my after-sales team.

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Role-playing is essential for Sales Professionals

This week, guest blogger Don Buttrey of Sales Professional Training offers us wisdom when it comes to our sales professionals: role-playing is essential! It is easy to overlook the benefits of role-playing in the professional environment, but these benefits cannot be overstated. If you are interested in what you see here today, you can reach out to Don here.

Professional athletes, accomplished musicians, battle-ready soldiers, doctors, pilots, and all professionals know that practice is essential. Pilots practice in simulators. Then after two months of ground training, they need to log more than 1,500 hours of flight experience. Quarterbacks run their patterns over and over.

You play as you practice. And in sales, it is no different.

Jerry Rice had a career as one of the greatest receivers in NFL history. Yet it was much more than just talent or good hands that made that a reality. Jerry had one of the most rigorous workout schedules in the NFL. Plus, we know that professional athletes watch a lot of films! They play back game film to critique strategy and execution. They must constantly improve to compete and win.

You play as you practice. If you want to make the big plays when it counts – your practice regimen is imperative.

So how can a sales professional get that essential practice? Granted, we can’t strap a GoPro cam to our head before meeting with a customer and then watch and critique it afterward. So, the only way to expose dangerous habits or feeble techniques is the method of role-playing. Role-plays are not real-life (and in the back of your head you know the other person is acting or improvising) but stuff will happen. You will see weaknesses or tendencies that you need to address and work on. Larry Bird, NBA superstar observed, “Coaches can talk and talk and talk about something, but if you get it on tape and show it to them, it is so much more effective.”

When you say “role-play”, most new hires start shaking in their boots. Some privately puke. But hey – they are new and probably expect intensive training or proving grounds. Some veterans (who are performing OK) might be threatened or fearful that they will be misjudged or condemned based on someone’s skewed opinions or branded sales techniques that may not apply to their customers or selling situations. A few successful veterans say, “bring it on – watch the master at work!” – only to bomb horribly. All this dread, fear, and mistrust is real. But it is not an excuse to just send your team out on the field every day and hope they are performing as sales professionals. Leaders need to know!

The answer to this need begins by adopting a proven sales curriculum, a standard pre-call planning process, and empowered servant leaders who coach and develop each sales professional with respect and consistency. Then, plan regular reinforcement, skill development and practice . . . on purpose. Put it on the calendar!

As a sales trainer over the last 25 years, I provided a starting point by conducting a sales training camp. I have always required a role-play exercise at the end of my training camps. Once the sales disciplines and the pre-call planning process were delivered in the seminar, a video-recorded and professionally critiqued role-play became the highest impact portion of the learning! The logistics required us to have lots of breakout rooms and equipment for the role-plays, but it was worth the effort. What was accomplished by the manager and I in each breakout room, one-on-one with each salesperson, far surpassed the impact of just lecture or teaching.

The training camp was meant to be the initiation into a regular culture of practice. The hope was that this first experience would remove the stigma and the invisible barrier to coaching. Role-playing should be part of a regimen of regular, ongoing practice! However, after a powerful training event ended, and everyone went back to busy schedules, it usually did not continue.

Today, Sales Professional Training has designed a new approach to training and practice that assures ongoing, sustainable sales team development. How? Well now, instead of a one-time seminar event, our complete sales training curriculum is delivered via web-based E-learning. It is on-demand and is digested and applied in short weekly increments that are processed with the sales manager and the team after each segment. Access to the course for review and reinforcement never expires. Clearly, this is much better than a one-time seminar where the salesperson feels like they are taking a drink out of a fire hydrant!

And here is the best part! The pandemic forced us to see past our paradigms and leverage the amazing technology at our fingertips. I now provide training and coaching for my clients that far surpasses what we could do in a seminar setting. Now, following completion of the E-learning version of The Four Pillars of the Sales Profession, we can role-play ‘virtually’ from different locations or branches. Zoom, Teams, and other virtual formats make it doable. No time, travel, or breakout room limitations!

No excuses.

Sales Professional Training is now offering role-play services! It is easy to implement and schedule virtually. I have been doing this service for other companies –and it is very high impact. They get more personal coaching from me and their manager in that hour than we could ever dream of doing in the logistics of a ‘live’ meeting!

Contact me and we will get role-play practice on your calendar!

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Learning Objectives and Why They Matter

In tonight’s guest blog, Caroline Slee-Poulos talks to readers (and students) about learning objectives and why they matter.

Learning Objectives

If you remember more recent school days, you might be able to recall your teachers sharing your objective before each lesson. Depending upon where you are in the world, there might have been additional information provided to you: content standards, a learning map, a group recitation of the objective (this has a bit more from elementary school lessons than later years, of course).

Did any of you understand what you were doing with those objectives?

It really is a standard of best teaching practices to share the objective/s with students before a class begins. A learning objective is meant to tell a student what they should be able to DO or what they will KNOW at the end of the class. In other words, those learning objectives point you towards concrete actions and specific knowledge that will come from what you are studying. As a student, you should always know where you are going. The simple act of sharing those learning objectives can help you to focus on the subject at hand, and measure the course against those objectives.

How do you know you have mastered the content if you don’t know what mastery in the subject area actually is? As in so many aspects of life, communication is key.

Learning objectives should always be clear, specific, and focus the teaching and learning that will take place during the class.

Look back on your own education. Did you know what you were supposed to know and be able to do at the end of every class? Did your teachers share your learning objectives at the outset of every lesson? Importantly, did the class help you to achieve those objectives?

Learning should be intentional, and the way you are taught should be equally intentional. Whether you are in an online course or a face-to-face program, it is a joint effort taking place between the teacher and the student.

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Goal Setting

Tonight, our returning guest blogger Sonya Law talks to readers about goal setting. 

We will explore here how fostering a dynamic workplace incorporates the macro environment in setting goals where People are at the center of creating your competitive advantage…

As an employee, our manager will set goals for us which flow down from the strategic goals of the organization, and these goals are communicated clearly so that we understand how our performance is measured.  Traditionally this usually takes place as part of a mid-year and end-of-year performance review cycle.  The review is also an opportunity for two-way feedback, for the employee to receive performance feedback that will guide their growth and performance and for the manager to receive feedback on where the employee needs support to remove roadblocks that are limiting their potential, efficiency, and effectiveness in achieving the goals of the organisation.

Human Resources play a dual role, firstly to support employees in setting their GPS and aligning them with the strategic goals of the organisation.  Secondly, to support managers and employees when performance diverges away from the expected behaviors that lead to the achievement of these goals.

Quite often, overlayed are external factors for example the current Global Pandemic, which forces organisation to reorientate towards goals that respond to a changing macro environment.  The Pandemic continues to require us to have a workforce that is adaptable, agile, resilient, and able to respond to new problems and anticipate future ones.  And work creatively to come up with solutions to customer, supply, service, and delivery issues.

Three scenarios that put the achievement of employees’ goals at risk are:

  1. New Manager
  2. New Team
  3. Changes in process and technology.

These scenarios can be navigated safely, with minimal impact to employees when a dynamic work environment is fostered that supports employees to solve problems as they arise.  This grassroots level problem solving, therefore enabling managers to invest more time on the strategic side of the business.

This is a common problem in organisations where management gets stuck in the weeds fixing problems in their day-to-day and not enough time creating value for shareholders.  Human Resources’ role is to work together with the senior leadership team to create flow and foster a dynamic workplace where time is equated across the operational, tactical, and strategic needs of the business.

dynamic workplace is a space that can easily be reconfigured to meet the company’s needs, accomplished by using resources, collaborative spaces and technology. It is meant to follow an employee’s needs, as reflected in the state of the world.

Organisations that become too linear and micro instead of a macro view, lose sight of the big picture, this narrow focus leads to inefficiencies in utilisation of your human resources and non-productive time that does not generate income to the business and cannot be recovered.  Further cracks start to appear in a reluctance to explore new markets or business opportunities, they leak resources, people, profit, and stifle innovation.  You will see a decline in quality and an increase in rework, warranty issues, product failures, and a damaged reputation, which is value eroding rather than value maximising.

Organisations gain a competitive advantage as compared with their rivals by empowering and enabling their people, they innovate, fail fast, and recover quickly, creating value for the business.

When employees are empowered to make the changes necessary in order to respond to customer’s needs, they can fix customer problems right then and there boosting trust and confidence in the product, aftercare, leading to repeat business.  When managers see their role as removing obstacles and roadblocks and empowering their team and involving them in setting their goals, this ultimately will lead to improved employee and customer satisfaction.

Managers can support the business operation by:

  1. TIME – blocking out some uninterrupted time regularly to ask employees what are their roadblocks and where do they need support
  2. REINFORCING – what we do and why we do it, connecting them with the vision of the company
  3. POSITIVE FEEDBACK – provide employees with positive feedback about their unique and valuable contribution
  4. ALIGNMENT – help employees where there is misalignment with the goals and support them to self-correct
  5. STRENGTHS – play to the employee’s strengths
  6. STRATEGIC GOALS – link employee goals with the strategic goals of the organisation
  7. VALUE CREATION – when you involve employees in goal setting, they will be more driven and committed to achieving them

A few human resources tools that foster a dynamic workplace are:

  1. Career Anchors – supports employees’ re-engagement with their work
  2. VIA strengths – identifies employee’s strengths and how to leverage them
  3. What makes me tick – helps employees to resolve conflict by understanding different communication styles within their team.

The benefits to the organisation and culture in fostering a dynamic workplace are:

  1. Higher levels of innovation
  2. Increased engagement
  3. Greater productivity
  4. Increased customer satisfaction
  5. Improved quality
  6. Lower staff turnover
  7. Stronger financial returns
  8. Agility and adaptability in responding to a changing macro environment.

Ultimately, a dynamic workplace constantly is striving to create a competitive advantage through its People that is unrivalled when it comes to your competitors, that is so unique that it cannot be replicated.  Many products can be replicated but not people, they really are your greatest asset and competitive advantage if you take care of them.  Demonstrate to them with your words, actions, and behaviors that reinforce their valuable and unique contribution to the organisation.

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