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As we look forward to 2007 and the wonderful planning sessions that will be happening
over the coming months I want to present a challenge to each of you. What could we do
that would make us the Number One supplier to our customers from a dealership perspective.
That’s right from the dealership perspective.
This column is normally dedicated to product support issues and opportunities but I want
to broaden the context this month. We are constantly challenged with daily issues. Getting
the parts, giving the advise, performing the repairs, controlling the expenses, reviewing
performance, creating budgets, and on and on. And we all recognize that there are challenges
between the departments. Sales making promises that service can’t possibly accommodate.
Not being able to find skilled technicians. Parts never having the parts that service
needs. Not being allowed to hire more people even if they are needed for customer service.
Finance never letting us have enough money. You all know the drill. There are many issues
to deal with.
But what happens to us if all we do is to continue things the way that we have always
done them?
Many of you have heard my three step theory on most everything including the once is
happenstance, twice is circumstance and the third time is enemy action. I training sessions
and talks that I give I also cover three simple themes; ignorance, stupidity and insanity.
- Ignorance – not know what to do
- Stupidity – knowing what to do and
not doing it
- Insanity – continuing to do what you have always done expecting different
results.
It is the insanity issue that I want to touch on here. What have you done recently to
become the best supplier to your customers? My suspicion is that we are nibbling around
the edges. To go back to the book “Built to Last” (Porras and Collins) we
have not found any BHAG’s; Big Hairy Audacious Goals. Nor have we found any Thematic
Goals. This latter is from the book “Silo’s, Politics and Turf Wars (Lencioni).
Well I think it is time, especially in the planning cycle for your business, to explore
what needs to be done to be the Number One supplier to your Customers.
On my July column, we talked about the balanced scorecard.
The primary thrust of my use of the balanced scorecard is to start with the customers
and ask them “what do you want/need for
us as a supplier/partner in order for your business to succeed?” So what is it that
they want/need from us? Have you asked or have you assumed that you know? It is important
that we ask and listen carefully because they will tell us very clearly what it is that
we need to do and that will tell us what it is that we need to excel in to satisfy those
needs/wants.
I would then suggest that you create a “Thematic Goal.” This is a short term
goal that everyone in the Dealership can rally around and work towards. The thing that
you will find interesting about this suggestion from me is that this “Thematic Goal” is
not something that is quantitatively measurable; it is subjective, qualitative and not
necessarily measurable.
The theme I would ask you to consider is “Improve Customer Satisfaction.”
I know, you are all thinking “how do I know whether or not I am succeeding at that?” Well
I want you to ask your customers and employees a series of questions:
- Are they happier with your work
- Are your invoices clear and easily understood
- Is your employee turnover down
- Is your customer retention up
- Are more people coming to look for work at your company
- Are your employee happy and
cooperative in their work
The list goes on and it is a list that you should create at your dealership. Start with
your employees in Parts and Service. What do they want/need to make their jobs easier?
Remember the “Service Profit Chain?” Employee Satisfaction and Loyalty creates
Service Value which develops Customer Satisfaction and Loyalty and that delivers Profit
and Growth. So start with your employees. Develop your own lists from their input. Then
ask your customers and develop a lost from their input. Then execute – execute -
execute.
I believe we will see some slowing in the coming months and I think it is important that
we establish a plan that allows us to continue to grow the parts and service business
irrespective of the over all market conditions. I want to start you growing your market
share in parts and service because you have become the Number One Supplier to your Customers.
So my question to you is simple. Are you pushing to be the Number One supplier to your
customers? If you don’t someone else will?
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