R.J. Slee & Associates -- Recent Articles/News

	Increasing Optimism The market is what we make of it. by Ron Slee, Industry Consultant

	Now that the market optimism seems to be at a high level I can get something off my chest. For too long now many of us have been struggling with the fact that the market is bad. More importantly we have been holding on waiting for the market to return to health prior to making fundamental changes in product support. My concern with this approach is that the time that has passed, while the market was bad is time that will not be given back to us. We need to change our thinking about fundamental change. The time to make fundamental change is not when markets are good but when we recognize the opportunity to make a change. I am trying this year to obtain more of the chief executives time on a daily basis in parts and service and product support sales. What I am asking is that every parts manager, service manager, product support sales manager and product support executive try and obtain one hour each day with the "The Boss". This time would be spent in talking about critical issues that confront us in product support seeking the creativity and business acumen that we so seriously need from "The Boss". The men and women who run equipment dealerships are smart, creative and resilient, to say the least. In product support we need help from everyone to create the sales focused, customer friendly, effective and profitable departments in product support. Especially we need help and support from the "The Boss". In product support we have had several serious issues to deal that aren't getting better with the passage of time. Parts Inventory Efficiencies Turnover - at least 5.0 times Service levels - at least 90% on stock items Increased Sales Growth at least 15%/year in real terms Instore merchandising as a retail store Higher Customer Satisfaction Better turnaround on backorders - no more than 48 hours Retention at least 80% on a year over year basis Improved productivity Sales per employee numbers to afford quality people - at least $600,000/person/year More use of the internet for purchasing and selling Service Improved Labor Efficiency ß Reduction of lost time Implementation of standard job times Labor efficiency in excess of 90% Increased Sales Maintenance programs on 50% of the machines sold each year Maintenance programs on large fleets Inspection programs in place Higher Customer Satisfaction Completion dates on all work orders Customer call backs after jobs have been invoiced Asset Utilization Closing work order daily Work in process no more than one weeks labor Product Support Sales Market Coverage Salesmen assigned to the top 25% of each of parts and service sales customers Salesmen assigned to the large and fleet machine owners Telephone coverage for the remainder of the top 50% of parts and service customers Product Knowledge Features and benefits knowledge of all parts families are service offerings Competitive knowledge Relationship Management Controls Call reporting Customer Profiles Machine Population Accurate for each salesman assigned territory Updated through competitive information sources These are all areas that are seriously lacking high levels of performance in many dealerships. They all need to be achieved. They all need more management attention in dealerships. This is where the hour a day with "The Boss" is so critical. Many managers will welcome the assistance. It is in no way a reflection on their ability to do the job. Rather it is an earnest desire to do the job well. To make the changes necessary requires time, thought and energy. They need creativity and strong communications. They need focus and commitment. All of these things and many more are available from "The Boss". Set up a time daily, create an agenda for the time you will spend with "The Boss", create minutes for each meeting and monitor the progress made towards accomplishing the goals. Don't forget "life is simple it is people that complicate it." If this pattern is followed and change is implemented with the involvement of "The Boss" there will be success. Isn't that what we all want? All of us together; the customers, the employees, and the owners want success. Try it you will like the results and we really can't afford to waste anymore time getting it done. The market is what the market is we must effect change irrespective. The time is now. If not now...When? To learn more, check out the offerings from Quest, Learning Centers.