It Has Been One Hundred Days Since We Last Talked

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It Has Been One Hundred Days Since We Last Talked

Guest writer John Andersen brings readers up to date on the challenge he levied against the industry when it comes to innovation. Read his follow-up to see the outcome in “It Has Been One Hundred Days Since We Last Talked.”

The expression one hundred days is often used as measure of the time it takes for impactful change. One hundred days ago, in a blog post with Ron Slee we lamented the complete lack of innovation in the heavy equipment industry. In a subsequent podcast we called out the suppliers of business systems and dealership management software for not delivering or at very least promising anything new. We openly challenged these same suppliers to deliver, to prove us wrong, to at very least explain what was coming. Of course, this could be done under an NDA and there was no need to spill company secrets. The response was, well…Crickets! There was one bright exception, one supplier approached me in confidence. They shared strategic developments and some specific product direction. While not groundbreaking it was certainly refreshing to see a company investing in their products and services beyond APIs, interfaces, and otherwise just moving the same old furniture around the same old house. Despite being part of a much larger portfolio, they understood the value of growing the business not just growing the base.

At the critical halfway point e-Emphasys announced the acquisition of competitor CDK Global Heavy Equipment. After 45 days the only noticeable development has been a couple of web page banners and a new list of executives. Arguably the combined company may have more customer locations and a larger development team than any other supplier and should be the industry leader in innovation and innovative ideas.

In the last one hundred days ChatGPT has released three more versions, an iPhone app and integrated AI services into no less than one thousand service providers.  Bing has now fully integrated the AI module and become the front runner in the new search, answer, response, and chat market. Google continues to develop and deploy bard as their AI solution and is quietly trying to catch up. Travel companies are leaning on AI for trip planning, Advertisers are using it build mega million-dollar brands, and even education is now embracing the virtual classroom and ai based professors.

In the last one hundred days one major OEM has announced a new electronic warranty system. Another OEM has announced a virtual service assistant already in prototype. A new company in Europe is working with telematics information to offer predictive analytics and prescribed consumables to operators of lift trucks guaranteeing minimal downtime and reducing the need for redundant equipment. Even I have left my home automation “Alexa” for my new AI based assistant who handles everything from ordering meds, suggesting dinner based on what’s in my fridge, to reminding me to write a blog post.

In the last 100 days what have you done to advance, innovate or otherwise energize your business?   Share them with your team or your suppliers. Share them with me or Ron. Before you renew with your existing suppliers ask the critical question, “What have you done with last 100 days”. If they can’t tell you how they are impacting your business in the short term, then don’t trust them to deliver in the long term.

The days of waiting it out or planning for next year are over. Everything operates at the speed of technology. Whether it’s quarterly or everyone hundred days, someone or something is coming to challenge the way you operate. Do nothing, wait, fatten up and you will be someone’s lunch. Plan your one hundred days. A swing and a miss will help you prepare for the next one hundred days. You can’t plan in a vacuum, start getting updates from your employees about their one hundred days. Ask your customers about their one hundred days. Demand the 100-day plan from your technology partners. Lead or follow but don’t wait for someone else.

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Embracing the Elements: My Icelandic Adventure

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Embracing the Elements: My Icelandic Adventure

Guest writer Sara Hanks brings us the lessons she learned through vacation in “Embracing the Elements: My Icelandic Adventure.”

As I was unpacking after returning from my journey to Iceland, a quote on the hiking shoe box caught my eye, “It can be easy to forget how much beauty surrounds us, but <Insert Shoe Company> gets you to a place where you can enjoy the world around you.” The words struck a chord, as a beautiful summary of my experience and reflection of the lessons I had learned throughout the vacation.

Be Prepared

The first key takeaway was to Be Prepared. The 10-day forecast on the weather app on my phone, would not have prepared me for the elements we encountered. Several days were met with heavy winds and rains. At one point, the road closed due to high winds. When the road opened and we could drive through, there were several vans and trucks destroyed from being blown off the road. I’m grateful that my sister is always cold and warned me to pack with the worst weather in mind. The treacherous winds and heavy rains were no match for my waterproof hiking shoes, rain pants and layers of jackets. I enjoyed each moment because I was prepared.

Be Silly and Have Fun.

Be Silly and Have Fun, was a lesson I encountered in surprising ways. From running to see what treasures hid around the bend in the trail to being up close and personal to farm animals, I found pure joy. Trying to keep my balance in the wind, watching sheep being born, and petting the friendly Icelandic cows brought out a childlike sense of wonder and giggles. One cow decided to put my foot into its mouth. The small, whimsical moments made me realize the satisfaction of embracing the unexpected and amusing things in life.

Be Present in the Moment

Nothing taught me to Be Present in the Moment better than my hike up the stairs to the top of Skogafoss. With each step up the steep staircase, I was fully engrossed in the task at hand… get to the top, safely. When I reached the top, the view was amazing, as were the winds. Traveling back down the stairs was one of the most terrifying experiences of the vacation. Railings only existed on one side of the staircase, and they switched sides randomly. I found myself competing with the people climbing the stairs, especially when the wind gusts were greater than 30 MPH. All thoughts of work, LinkedIn notifications, and the incomplete chores were non-existent.

Get Outside

The lesson to Get Outside was driven home by a multitude of experiences. From riding an Icelandic horse to the stone beach, to boating around bright blue icebergs, each moment spent outdoors was a refreshing escape from the digital confines of everyday life. Oddly enough, I felt no knee pain during this vacation; I could run pain-free for the first time in years. I believe the constant movement in the fresh air was a big contributor. Now that I have all-weather gear, there is no excuse to avoid being outside.

Prioritize What You Love to Do.

Lastly, this trip reminded me to Prioritize What You Love to Do. I’m flexible and adaptable, so going along with others to do whatever, is not a problem. In Iceland, I rediscovered my love for adventure in the outdoors. Seeing geysers, making snow angels at the base of snow-covered mountains, hiking through a farm to a secluded waterfall, and being chased by a herd of Reindeer brought complete joy. It was a strong reminder that investing time in my passions brings both pleasure and a sense of fulfilment. 

The quote on my shoebox perfectly described my Icelandic journey. Amidst the wild landscapes and memorable experiences, I had not just traveled across a country, but traveled on a journey of self-discovery. The joy, serenity, and renewal I found in Iceland shall be continued through these lessons.

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Developing Your Personal and Employee Persona

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Developing Your Personal and Employee Persona

Guest writer Ron Wilson explores the skills that we use in developing our personal and employee persona.

Over our work life a great deal of effort, education, time, and energy is spent on developing the “technical skills” relating to our careers. Technical skills relate to the technical part of any career. An accountant has technical skills relating to the specific role, just as an equipment technician has technical skills to perform repairs/rebuilds, troubleshooting and diagnostics of their career.

During our careers we develop a personal persona that is applied in our actions, roles, and responsibilities. As we progress through our career the types of information, skills, action needed changes and requires an ongoing balance of various skills development.

The skills needing to be developed can be placed into four areas:

  • Technical Skills
  • Personal Skills
  • People Skills
  • Operational Skills

Below is a diagram that shows an example of an employee’s personal and career persona. It is important to balance the skills developed in each of the areas. During a visiting with a Human Resource team, we discussed the most common reasons employees are terminated, or resign, and in most cases, it is not due to a lack of technical skills. The cause is usually related to one of the other three categories.

 

The diagram above really shows the importance of balancing the skills development of our teams. Making sure training and development opportunities are provided in each of the areas, and time is spent with the employee discussing the strengths and opportunities that will provide continued growth relating to the overall personal development.

The diagram below shows that our “Personal Persona” is identified in what we “say and think.”  The “Employee Persona” is often seen in what do (our performance) and our relationships with others. In our everyday work we combine and exhibit all four areas.

While serving on the board of directors at SkillsUSA Arizona I was introduced to the following diagram. I took this diagram and applied it to the equipment dealer work environment. SkillsUSA does an excellent job of developing the students’ work and persona to prepare them for future employment.

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Evaluating the Effectiveness of Training & Development

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Evaluating the Effectiveness of Training & Development

Guest writer Ron Wilson explores using the Kirkpatrick method as a way of evaluating the effectiveness of training & development.

Within the dealership the owner, CFO, Training Manager, Department Manager, and Supervisors all ask if the training and development are effective and worth the time and investment being provided. Many articles, lectures, and books have been written on this very topic. The following are some examples that have been applied utilizing the “Four Levels of Training Evaluation” utilizing the Kirkpatrick model.

The Kirkpatrick Model includes the evaluations into the following areas:

  • Level 1 Reaction– How did the learning feel about the course, were they engaged, was the material relevant. This level can also be broken down to evaluate the course and the instructor.
  • Level 2 Learning– This level measures the pre and post levels of knowledge utilizing a pre and post evaluation.
  • Level 3 Behavior– Utilizing a pre-determined time to evaluate from the student’s and the supervisor’s view the level the behaviors are being utilized in the employee’s role. Are the tasks from the training class being utilized in the workplace?
  • Level 4 Results– How has the training impacted the business? This can be a measure of customer satisfaction, amount of rework, reduced hours to rebuild a component.

Below are examples of how the information can be utilized and some comments on the implementation of the Kirkpatrick Model.

Reaction– This has also been called the “Smiley Face” survey. The survey is a recap of the student’s evaluation of the course material and the instructor. It is important to separate and review each individually.

The information below shows the responses from twenty-nine students relating to the course content and firsthand experience provided in the identified class. % E & VG combines the Excellent and Very Good score percentages. The comments provide valuable input to be collected and utilized for future improvements.

The information below shows a summary of the evaluation relating to the instructor leading the class and the comments provided. It is not uncommon to receive contradictory comments from a class. The class may have a wide variety of skill levels within the students attending the class.

Over time this information can be extremely helpful in evaluating the content and the individual instructors.

Learning- The level of learning obtained during the class provides a view of the knowledge level the student came into the class and a view of the knowledge the student is leaving the class. This is accomplished with a pre and post assessment. Below is an example:

Over time it can be determined that if a student came in with a low pre-test score the likelihood of not successfully completing the class. In this example 80% or higher is a passing score. The number of students passing, or not passing, the class can be a great tool for additional reviewing of content, instructor, and pre-requisites requirements.

Behavior– Level Three Evaluation reviews the application of the course material within the work environment based on input from the student and the supervisor. Utilizing a pre-determined time, the students and the supervisors evaluate if the behaviors are being utilized in the employee’s role. The evaluation is conducted by a survey of the students and the supervisors. These are specific tasks included in the class the student is expected to perform once returning to work.

Below is a list of tasks the student should be able to perform once returning to the shop area. The number of students and supervisors represents the ability of the students performing the tasks that was taught in the classroom. In this case there were more students that expressed their ability to perform the tasks as compared to the supervisors rating the employee’s performance of the task. Drilling down into the individual shops and supervisors, it can provide a little more detail of understanding the gap between the student’s score and their supervisor. Two items that may arise from the survey:

  • A student may be less confident in their ability to perform the task as compared to the supervisor. We see this when the supervisor score is higher than the student’s score.
  • The student may not have had the opportunity to perform the specific task since attending the class.

Results – The level of the results identified from attending the training class can be identified from expected business performance indicators such as:

  • Measure of customer satisfaction
  • Reduction of rework in the specific areas
  • Reduced number of hours to rebuild a component.

All four of the levels require an elevated level of communication between the operating departments, the Training Department, and the students.

A couple of key points on the implementation of the Kirkpatrick Training Evaluation Model:

  • There is a need for an LMS (Learning Management System) to record and analysis the information and data analysis skill set to establish the process, record, and report the results.
  • The typical Training Department may not be able to evaluate “all” of the classes being provided (can be a data overload in levels 3 & 4). Start small and expand over time.
  • This method can be utilized for all types of classes, soft skills as well as technical.

There are several resources to assist with understanding the model. James Kirkpatrick’s book “The Four Levels of Training Evaluation” is a great resource.

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Testimonials

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Testimonials

Guest writer Joanne Costin writes her blog post this week about the importance of testimonials. In your business, testimonials from your employees are key to attracting and retaining staff.

Harness the power of employee testimonials.

I’ve been writing a lot about tight labor markets and various strategies to attract and retain workers. It has me thinking about employee testimonials. While you may be familiar with using testimonials to sell customers on the value of your dealership, you may be overlooking an opportunity to use them in your recruitment efforts.

When I recently spoke with Dick Finnegan, an expert in reducing employee turnover, he talked about “the stay interview.” The interview is a way to improve trust between employees and supervisors because the No.1 reason employees leave or stay is the relationship with their boss. Five questions are at the heart of his method to improve retention 20-50% among a wide range of clients. I love these questions, but not just for the value they bring to the employee/supervisor relationship. Answers to the first three questions could be the foundation for a strong employee testimonial. 

The questions to ask:

  1. When you travel to work each day, what things do you look forward to?
  2. What are you learning here?
  3. Why do you stay here?

Even if an employee has a positive view of their job and their company, if you ask them for a testimonial without providing any direction, chances are the final product be lacking. However, if you ask questions that nurture a conversation and require employees to think, the results will be more powerful. 

The case for employee testimonials or employee stories

Employee testimonials are underutilized in recruitment campaigns. Candidates today want an honest look at the daily responsibilities of the job and insight into the company culture. Who would be better to offer that than your employees? The power of a testimonial comes from its authenticity. When the language is real, the faces are real, and the messages are real, testimonials provide that insider viewpoint that is often missing from other sources. 

The first focuses on the day-to-day responsibilities of the employee and the elements of the job that bring satisfaction. In a 2022 Jobseeker Report from Employ, 41% said they left a job within 90 days because their day-to-day role wasn’t what they expected. Presenting an accurate picture of the role is a key step in improving retention. If applicants understand the role and can see themselves in the role, they are more likely to stay and be successful. This video from Wagner Equipment Co. highlights the role of the technician. 

The second question focuses on learning. With 20% of jobseekers leaving for growth opportunities, having your employees discuss what they have learned on the job can help you showcase your commitment to personal development. Candidates also want to hear about potential career paths. If your employee’s story includes a promotion from technician to technical support or management, it’s one that prospective job candidates will notice. 

The third question, “Why do you stay here?” speaks to company culture, to trust and a feeling of belonging. Unlike health insurance, higher wages, or other benefits, trust is something employees can’t be sure they will get at a new company. Whether it’s exemplified in the way the company treats workers dealing with an illness or the way managers respond to employee suggestions, the reasons why employees stay reveals the culture of your organization. RDO’s conveys this effectively through its Why Work Here video. In an effective testimonial it’s the details that matter and make each story personal. 

Does it look like I belong here?

Dealerships and construction companies alike continue to struggle with attracting women and minorities to roles. One of the reasons is that applicants just don’t see themselves fitting in. Testimonials and other imagery on your website can go along way to showcase an inclusive environment. John Deere makes a powerful statement about inclusiveness to women through a collection of stories about women in construction on its website. 

Focusing on the needs of military has helped Southern Company earn recognition as a best place to work for veterans. Testimonials on their website convey the aspects of working at Southern Company that appeal to veterans as well as military spouses. 

Where to reach prospective employees

You may think placing your testimonials on LinkedIn is the only way to go, but Zippia reports that while 90% of recruiters use LinkedIn, 55% use Facebook, 47% are using twitter and 14% use Instagram to reach prospective employees. Because 37% of all job seekers are passive, the company reports that social media can be a useful source of hidden talent. 

Zippia reports that 79% of job seekers use social media when searching for jobs. Job seekers use social media to vet potential companies in the same way employers use it to vet candidates. Instead of a “We’re hiring” message, a post that speaks to what the role is about or why people stay in their job will differentiate your dealership. 

Similarly, your career page should be more than a list of job openings. Employee testimonials clearly belong here, along with other essentials such as benefits.

In a tight labor market. employee testimonials are a powerful tool to help dealers recruit prospective employees. Asking the right questions will help solicit the responses that will accurately convey the day-to-day rewards of the work, the learning opportunities, and your company culture. 

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How to Repair America’s Talent Pipelines

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How to Repair America’s Talent Pipelines

In his May Report, Edward Gordon writes on the crucial topic of how to repair America’s talent pipelines.

Micron Technology Inc., based in Boise, Idaho, plans to invest $100 billion in a semiconductor-manufacturing campus in a suburb of Syracuse, New York. Once fully built this campus will employ 9,000 workers and possibly support 41,000 jobs for contractors and suppliers, Yet the highly skilled engineers and technicians needed for advanced chip manufacturing are in short supply across the United States. What steps are they and local community leaders taking for solving these critical talent shortages?

 Micron is seeking to develop a regional talent-creation pipeline through partnerships with K-12 schools and local colleges and universities. It is providing $10 million to local K-12 schools to bolster STEM education. Macron is cooperating with Onondaga Community College to develop a new degree program for chip technicians. Syracuse University is developing plans to increase enrollments in its undergraduate and graduate engineering programs.

The extent of Macron’s education partnerships is particularly notable. Education is a continuum. Even before the educational setbacks caused by COVID-19 restrictions, it was clear that K-12 education in the United States has not been providing a significant proportion of our students with the educational foundations needed for their future development The challenge we now face is that only about one-third of our high school graduates leave school with reading and math comprehension at the twelfth-grade level. These skill levels are needed for the successful completion of post-secondary certificates, apprenticeships, community college two-year degrees, or four-year degrees.

Cascading Challenges

It seems likely that Micron will be affected by other types of skilled worker shortages. Micron’s Syracuse area expansion plans were spurred by the federal incentives offered by the Chips Act that was signed by President Biden in August 2022. Other companies have announced plans to build semiconductor manufacturing facilities in Arizona, Texas, and Ohio. Chip manufacturing plants have highly exacting construction specifications requiring specialized training.

 At the same time, growing international tensions and supply chain disruptions precipitated by the COVID pandemic are leading to the in-shoring of all types of manufacturing to the United States. Construction spending for manufacturing projects was the highest on record last year and is expected to remain elevated as there is a considerable backlog of nonresidential projects across the United States. A major reason for construction delays is worker skills shortages. In a recent survey conducted by the Associated General Contractors of America, 80 percent of the respondent’s reported difficulty in finding qualified workers.

 Last year U.S. businesses lost $2 trillion in productivity and profit due to skills-jobs disconnects. We estimate that there are over twenty-seven million skilled and semi-skilled Americans who are not participating in today’s labor force. If their skills were updated through entry-level training, the impact on U.S. productivity would be substantial due to the magnitude of this hidden population.

 By 2030 Korn Ferry predicts that up to ninety million jobs worldwide could be unfilled. This could cost employers $8.5 trillion in profits. To meet the steeply escalating skill demands of the Fourth Industrial Revolution, more regions across the United States must develop a comprehensive approach to workforce development for a wide range of occupations in which employers and educational institutions cooperate in education and training programs that keep pace with technological advances.

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Navigating Innovation’s Lonely Road: A Guide for the Stuck and Stalled

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Navigating Innovation’s Lonely Road: A Guide for the Stuck and Stalled

Guest writer Sara Hanks returns this week with a blog offering tips and tricks for those individuals who drive change in their organizations: “Navigating Innovation’s Lonely Road: A Guide for the Stuck and Stalled.”

Do you ever feel alone while trying to drive innovation or when you’re nurturing an idea that people haven’t completely bought into yet? You’re not alone. It’s a common experience for those of us who live on the cutting edge, pushing boundaries and stepping outside our comfort zone. The journey can often feel lonely, and it’s easy to get stuck.

I’m currently building a company from scratch, leveraging my experiences from 2012 to 2020 leading the digital transformation of all quality processes across engineering, supply chain, manufacturing, and services at a former GE business. The goal is to assist others in achieving similar transformations through consulting and software solutions. The vision is grand, but I often find myself feeling alone and, occasionally, uninspired.

Not too long ago, I found myself on a solitary drive to a Quality conference in Philadelphia. The long stretch of road ahead of me provided an opportunity for reflection. I was struggling with feelings of loneliness and a waning inspiration. I reached out and phoned a friend, venting my frustrations and sharing my self-doubt. It was a simple act, but it reminded me that I wasn’t alone in my journey, and that there were others who understood and empathized with my challenges.

As the conference unfolded, something remarkable happened: my passion reignited. I was surrounded by like-minded individuals, all of whom were striving for innovation in their respective fields. It was a powerful reminder that even when we feel alone or stuck, there are always opportunities to find inspiration and rekindle our motivation.

Here are a few strategies to help reignite your momentum and boost your drive:

Connect and Collaborate: Find someone who thinks like you, give them a call, and brainstorm ideas. Share your thoughts with them, explaining where you’re coming from and where you want to go. Don’t underestimate the power of collaboration. Partnering with others can often provide the extra motivation you need to move forward.

Expand Your Horizons: Attend a conference or a tradeshow where you can expose yourself to new perspectives and ideas. Listening to others talk about related topics can bring clarity to your own thoughts. Even when you think you’ve covered all bases, you’d be surprised at what you can learn from others who are just beginning their journey. As an example, after implementing a connected supply chain system, I found myself learning new aspects from those just starting out in the field.

Embrace Solitude: It’s important to find some time to be alone and give yourself the opportunity to focus on specific tasks or ideas. Inform your family, friends, or colleagues who might potentially interrupt you to respect your space during this dedicated time. Turn off your phone and make sure you’re giving yourself the time you need. If you find it hard to get started, try this trick: carve out an hour of your time, but only commit to working on your idea for the first 10 minutes. Often, getting started is the hardest part.

Have Fun: Last but certainly not least, remember to have fun away from your work. During the conference, I connected with cousins that I hadn’t seen in 10 years. We laughed at old memories and the exciting world of teenaged children. It was awesome. 

Feeling stuck is not a sign of failure, but rather a part of the creative and innovative journey. J.K. Rowling, known for the Harry Potter series, experienced a period of ‘stuckness’ during her writing process. She has spoken about the times when she struggled with motivation and self-doubt, despite having a clear vision of what she wanted to create. Yet, she persisted, finding ways to reignite her inspiration and bring her ideas to life. Today, her books have not only achieved phenomenal success but have also inspired millions across the globe. So, if you find yourself feeling stuck in your journey, try some of the strategies above. Even feel free to connect with me on LinkedIn.

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People Are Assets to a Business, NOT Simply Labor Costs

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People Are Assets to a Business, NOT Simply Labor Costs

John G. Carlson is CEO & Co-Founder of Reflective Performance, Inc., a data and analytics company bringing a human-centered approach to increase productivity and corporate profitability. Informed by extensive experience in corporate turnarounds and operational improvements, Reflective Performance helps organizations enable a more stable and highly productive workforce — regardless of industry, products, or technologies — by applying the cognitive science of “executive function” (EF). In less than five minutes, a game-like software app called Reflect / EF unlocks previously unattainable insights about personal decision-making, life skills and workplace success.  Organizations benefit, too, through better management of the employment pathway for higher employee and customer retention and workforce development. He makes his first guest blog post with Learning Without Scars this week: “People are assets to a business, NOT simply labor costs.”

I’m glad to see Fortune call attention to the financial short-sightedness of organizations viewing their people as mere “labor costs.” Employees aren’t line items to manage, but people whose fundamental impact on the business can be enhanced through better management and tools that enable self-management. (This is what we’re doing with Reflective Performance, Inc. by using data and analytics to help organizations unlock the greater potential of their employees.)

As companies strive for profitability, they need to be able to seize improvements from a stable and highly productive workforce. This requires moving away from traditional financial metrics and management methods. People aren’t “capital,” but they can be understood as assets with an extended employment lifecycle in a way that parallels IT and other hard assets. Looked at from this perspective, costs can actually be measured from hiring to onboarding to training and then through high performance and retention, then analyzed through a Total Cost of Productivity framework.

Companies can greatly reduce so many wasteful costs and unnecessary overheads, not to mention “time sinks,” through lifecycle process management supported by investments in learning technologies and improved decision-making tools. These tools, data, and systems are readily available to enable this kind of system change, but first they require corporate leaders to change their perspective to build corporate profitability through human-centered productivity.

 

Companies don’t know how to measure their human capital other than as a labor cost–and it’s hurting profits

fortune.com

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Imagine That

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Imagine That

Guest writer John Andersen walks us through the latest merger that will directly impact our industry in “Imagine That.”

Imagine waking up one morning to find that Coke and Pepsi had merged. What if Samsung and Apple formed a single company? Can you picture a world where UPS acquires FedEx to become the dominant shipping company in North America? 

That’s how the beginning of May felt for a lot of people, with e-Emphasys announcing the acquisition of the heavy equipment portion of CDK Global.

CDK’s Intellidealer solution and e-Emphasys eXtend offering were unquestionably the top two solutions for heavy equipment distributors in North America. The new combined customer base will represent at least 70% of the dealership rooftops in North America, with sights set on a more global presence. It’s an exciting time for both companies, but what does this mean for the customers?

Most customers will be advised that despite this exciting opportunity, it will be business as usual for at least the next 12 months. The company will realign departments, consolidating development, sales, and customer support, while trying not to disrupt the existing clients. There will be new markets, global plays, and perhaps even more acquisitions. There will be talks about technology stacks, integration, and eventually a preferred direction. As the undeniable dominant provider in North America, you can expect OEM attention and maybe some new agreements.

However, what is missing is that all-important product innovation. There was no mention of any groundbreaking application being released. We didn’t read about the next generation of systems or cutting-edge technology that will help form the future of the distributor. We didn’t hear about how this new resource-rich, experience-dense, perfectly positioned entity will deliver anything other than reheated versions of the same old systems. Worse, they will spend a minimum of 12 months arranging the furniture and preparing those all-important renewal contracts.

Success requires more than just resources. It requires passion. It requires humility and understanding. The roots of all these businesses were planted in people who loved the dealerships, the end users of equipment, and the processes. Each strived to be the best provider by leading customers from simple paper to complex systems. Profitability was a byproduct of being a true partner with the customer and stretching the boundaries of what could make a distributor better.

As consolidation continued, that innovation slowed until new development was made up of interfaces, rewrites of data access, bolt-ons, and strategic partnerships. DMS providers were transitioned to private equity partners or venture capitalists that simply work the numbers. Terms like dealer spend or rooftop ROI supplanted innovation and satisfaction for the end-user customer.

The call to action for each distributor should be the same, whether it’s an old supplier, a new supplier, an OEM-supplied system, or a brand-new player: What is the new product that you will be delivering to me in the next 6 months that will fundamentally change the way I am operating? If the answer is a reheat, rework, or just nothing, then it’s time for a change.  In the current climate of consolidation, it is easy to lose sight of the importance of innovation. The excitement and buzz generated by the merger of two large companies can often overshadow the need for product development that is truly customer focused. As customers, we should demand more from our technology providers. We should be asking questions about the next generation of systems and cutting-edge technology that will help us to achieve our business objectives. We should expect our technology partners to deliver truly innovative solutions that will fundamentally change the way we operate. It is important for technology providers to remain passionate about their customers and the industry they serve. They must continue to strive to be the best provider by leading customers from simple processes to complex systems. Profitability should be a byproduct of being a true partner with the customer and pushing the boundaries of what can make a distributor better.

In summary, while these mergers/acquisitions may bring benefits in terms of size, scale and reach we must not lose sight of the importance of innovation. We should demand more from our technology partners and push them to deliver truly groundbreaking solutions that will change the industry for the better. Only then can we ensure a bright and successful future for the heavy equipment industry.

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Facts Vs. Feelings: Recruiting Technicians

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Facts Vs. Feelings: Recruiting Technicians

Guest writer Isaac Rollor highlights the importance of building relationships with your communications at your business in “Facts Vs. Feelings: Recruiting Technicians.”

I do not know the exact source of the statement “Facts don’t care about your feelings” but it’s a statement I have heard many times recently. This statement as I heard it was not applied directly to the heavy equipment industry, but I do feel it warrants some reflection. The heavy equipment industry is really invested in facts. Hard evidence. Data. Not a bad thing. In fact, it is a source of certainty that is lacking in many other industries. Technicians are one of the most factual focused working groups in our industry and rightfully so. To be successful, technicians must focus on facts pertaining to safety, quality of work, billing etc. Facts are important. The problem with facts is that facts alone do not cause someone to act. In my experience emotions cause action. 

My hypothesis. One reason technicians are not entering the heavy equipment workforce at a fast enough rate is because OEM’s and dealers are focused on facts during recruiting and rarely focused on emotion. Industry hardened professionals love facts because these facts have led them to remarkable success. Here is a splendid example, if a technician masters the repair manual’s process of replacing, diagnosing, and repairing a certain OEM’s machines they will be considered successful, receive promotions, and make more money. All they had to do was follow the facts, such as processes, procedures, torque specs etc. and they achieved success. When I speak with technicians who have 20-30 years logged repairing heavy equipment, I like to ask them why they started and stayed in the industry. The answer is usually rooted in emotion. This may be related to their family, or even their own internal desire but it is typically a love of something that moved them to become a technician and eventually become an expert technician, service manager etc. The feeling or emotion motivates someone to come to terms with the facts. 

When I hear recruiters speak to potential technicians and lead off with statics or data and facts about the industry/job I always cringe a little bit. Starting a career or even changing jobs within the industry is a crucial decision for most people. If you dig deep enough, you are highly likely to discover that this decision is rooted in emotion. An OEM or dealer competing for a scarce resource such as technicians should carefully examine the strategy being used to attract and retain top talent. Let’s make a quick comparison of facts-based messaging and feelings-based messaging. How would you respond if you were a capable technician just out of trade school and you were making a career decision based on the following job discussion with a recruiter?

Facts based job discussion:

Heavy vehicle and mobile equipment service technicians at ABC company typically do the following:

  • Consult equipment operating manuals, blueprints, and drawings.
  • Perform scheduled maintenance, such as cleaning and lubricating parts.
  • Diagnose and identify malfunctions, using computerized tools and equipment.
  • Inspect, repair, and replace defective or worn parts, such as bearings, pistons, and gears.
  • Overhaul and test major components, such as engines, hydraulic systems, and electrical systems
  • Disassemble and reassemble heavy equipment and components.
  • Travel to worksites to repair large equipment, such as cranes.
  • Maintain logs of equipment condition and work performed.

Heavy vehicles and mobile equipment are critical to many industrial activities, including construction and railroad transportation. Several types of equipment, such as tractors, cranes, and bulldozers, are used to haul materials, till land, lift beams, and dig earth to pave the way for development and construction.

Heavy vehicle and mobile equipment service technicians repair and maintain engines, hydraulic systems, transmissions, and electrical systems of agricultural, industrial, construction, and rail equipment. They ensure the performance and safety of fuel lines, brakes, and other systems.

These service technicians use diagnostic computers and equipment to identify problems and make adjustments or repairs. For example, they may use an oscilloscope to observe the signals produced by electronic components. Service technicians also use many different power and machine tools, including pneumatic wrenches, lathes, and welding equipment. A pneumatic tool, such as an impact wrench, is a tool powered by compressed air.

Service technicians also use many different hand tools, such as screwdrivers, pliers, and wrenches, to work on small parts and in hard-to-reach areas. They generally purchase these tools over the course of their careers, often investing thousands of dollars in their inventory.

After identifying malfunctioning equipment, service technicians repair, replace, and recalibrate components such as hydraulic pumps and spark plugs. Doing this may involve disassembling and reassembling major equipment or adjusting through an onboard computer program.

Feelings based job discussion:

Many heavy equipment technicians at ABC company report feeling a sense of freedom because they are responsible for their own service truck, tools, and schedule. How would it feel to have control over your own schedule and work experience? Is this something that is important to you?

Notice the difference? Facts based discussion leaves little room for tactical questioning of the candidate. To the contrary a feeling-based discussion can easily omit many of the hard facts and cut directly to the emotional reasoning for being interested in a technician position. The great part about leading with feelings is that facts can still be presented but these facts can now be hand-picked to support the feeling the technician wants to have.

Here is my challenge to you, lead with feelings instead of leading with facts. See how many times you can get your potential technicians to “feel” a certain way about the job. Once the feelings are identified use your facts to support their feelings and allow them to arrive at a career decision that they “feel” most comfortable with. I think the results may surprise you.

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