Preparing Your Business For Transition to the New Aftermarket

Too many shop owners appear to be stuck in inertia wondering what to do next. Owners scramble for answers as they attend various courses but never put together a plan after the live session to implement what they took from the course.

As a good business friend of mine summarized to me:

Preparation to move your business forward is not simply re-reading manuals from a course; it’s about using these as tools where you implement the lessons that you’re handed during the live course you attended.

Unfortunately, too many people listen and only hear what they’re not doing; the key is to listen and hear what you need to be doing. The difference between hearing the information and listening to insights is your ability to find the connection you need to move your business forward.

Information and education alone is not freedom; the implementing of the information and education is where the freedom happens. It’s where you gain the clarity to keep your mind moving forward.

Remember, when you are not prepared, you will waste time trying to figure out where to start and what to do.

Being a Leader is Not About Ability; It's About Responsibility!

If you are a CEO, President, Vice-President, Manager or Director of any organisation within the Aftermarket, please consider these words to be accountable to the Title that you hold.

Owning/Managing a company or heading an organization does not automatically confer the title of "Leader" upon a person. Leadership today is not just about the "Ability" of an individual, as many people in key roles have great Abilities, but it is how they exercise their Responsibilities. In the end, their lack of understanding their Responsibilities, which is demonstrated through their actions, dramatically hurts the companies profitability and can be the demise of an organization.

Leadership is not about personal ego being messaged day in and day out but instead taking charge of their Responsibilities in that role.

Responsibilities include standing up and showing their passion for their company or organization by addressing anyone who challenges the "concept" of what the company or organization stands for because they actually believe in what the company or organisation is and what it represents.

Responsibility is ensuring that the company or organization performs at a level of excellence, on a timely basis, ensuring the image is accountable not only to their clients/members but also the general public.

Responsibilities include creating the environment and culture where all staff members enjoy a rewarding career through their desire to execute their role with excellence, efficiency and pride.

Responsibility means going the extra mile to secure the company or organisation's future by executing with absolute intensity. A "get it done now" attitude is demonstrated through the actions of the Leader because the Leader truly understands the importance of their role and their Responsibility to get results.

Examine closely the Leadership of successful companies and organizations and I'm confident you will clearly see a strong Responsible approach at the top position. It has nothing to do with luck but everything to do with understanding their complete Responsibilities in their role; after all that is why they hold that position.............that is...the select few Leaders that get it.

Never Support the Status Quo If It Is not Working

Everyone knows the definition of "Insanity"...doing the same thing over but expecting different results.

Are you prepared to go to the wall for "Change"?

Will you stand up, be vocal and ensure you are not guilty that you are still embracing the old ways instead of embracing the change that our industry must address?

Examples include:

- Good bye to Flat Rate pay for technicians and say Hello to hourly pay based on "Competency" of the technician? Flat rate for Diagnostic time is totally NOT realistic and the shop must come up to reality in its thinking, understanding of the new world and understand the new reality of what truly is our business on behalf of a client?

- Good bye to old bonus structures and say hello to a full Company Profit Sharing Plan with everyone involved from the bookkeeper to the front counter to the technicians?

- Good bye to night training for technical staff and say Hello to fully paid day training courses like every other PROFESSION out there?

- Pre-plan 2012 training (Technical & Business Management) courses now? Where and when in "North America" are they being held and get your company enrolled now?

- Work diligently to bring together a TEAM compared to individualistic objectives that in reality only serve the financial interests of the owner first .....compared to PROFESSIONS that focus on the CLIENT and build a reputation for excellence and uniqueness....... which leads to higher profitability for ALL that are involved?

Simple examples of status Quo and old thinking in our industry.

Are you ready for a defined change that takes our industry to a higher level of thinking, performance and measurement or are you one who insists that the old philosophy and measurement is the only thing we can survive on? Good point you made....as you talk about and say "survival"....instead of moving forward in a positive manner and encourage everyone at every level of our industry to embrace "a life" .......... a direction which this industry so desperately needs.

The Greatest Battle You Will Fight Is The One Between Your Desire To Improve And Your Fear Of Improvement

A very good friend and confident challenged me with this thought and I could not help but to think how many people, companies and associations it applies to within the Aftermarket Industry. Why are we so afraid of DRAMATIC change when in reality we are so far behind the world in our structures, processes and attitudes.

Our sector of the automotive industry has so many incredible opportunities coming in front of it due to vehicle technology development and weak consumer confidence. Yet I watch and listen to people and companies looking at EVERYTHING they do as a "COST" with every dollar leaving their door. Where is the "INVESTMENT" attitude? Where are the people and companies who clearly see what is in front of us for at least the next 7 years and say "Let's go get it, what development do we have to invest in today to secure our major portion of it as we move forward?"

The Aftermarket has traditionally been made up of "trade" type people.......that's how we see ourselves as a sector of the automotive industry. You know, high school grads,even high school drop outs, no real higher academic education, work hard, play hard...life of hard knocks and real life situations has been the major player in the industries evolution/education....we like to see and touch what we do rather than THINK it out or create a VISION as to where we want to/can go; we simply have a show me and then do it for me mentality.

We have lost any will to be progressive because seemingly we totally fear what it may do to us. This is a battle every individual within the Aftermarket is truly struggling with.

We need vocal leadership within our sector of the industry. A person or people within a company or industry organization who gets it and is prepared to STAND UP.....and EXPLAIN ...WHERE and HOW their company or organization is going to contribute to this modern day Profession. They must be ready to take ridicule from people who can't see it, criticism from closed minded has beans,willing to cross the line, if you will, against all commentary because they see and understand the opportunity. They know the change is the right thing to do. They will want to bring their peers on board to embrace the NEW thinking, the new outlook, the new opportunities, the new reality to better our lives and NOT FEEL GUILTY ABOUT DOING SO.

We are in a battle to progress the Aftermarket for the next generation so they can embrace and enjoy a career which will provide everyone with a quality of life never seen before. Is that a wrong thing to do? I don't think so. I'm willing to take the criticism and ridicule but I will also simply look those people in the eye and ask "what are they doing to make things better?"................or is it simply a reality statement that comes out stating "It's all about them today, get over it!".

Is Our Sector of the Industry In Denial??

Watching, listening and examining how our sector is moving forward, one has to ask if we are truly in denial?

It appears at times that all levels of the Aftermarket are like deer staring into the headlights and commenting "What's that"? Nothing is changing at the grass roots level of the Service Provider shop or for that matter at the Jobber and Warehouse level as everyone is doing the same old thing and expecting different results. As you may be aware...That is the definition of insanity!

Lets wake up!!

We totally need to address reality which means openly addressing "change" which must include a total review of "How" we do things to ultimately service the consumer at a high quality level that is required to capture their business and trust. Yes it can be painful. Suck it up!! This is our livelihood. True positive change is painful but has so many rewards in the end.

Consider the following facts:

- shop management and their staff must learn a new paradigm in "how" to measure and execute internal processes within their business clearly and as professionals, which in turn leads to understanding their responsibilities. They must conduct their day to day affairs as a complete TEAM. How do they now conduct their day to day business to build trust with their clients, their customers?

- parts suppliers must understand...its just not about selling parts 100% of their time, but it truly is about survival and growth of their customer/client base so they have someone to sell parts to in their future - They should honestly ask themselves.. "How can we help to secure our future...what processes do we have to now learn to engage today to secure our prosperity for tomorrow? What do we have to do and what do we invest in to make this work? Do 100% of our staff understand what we should be doing each day to secure our future?"

- is every level of the Aftermarket prepared to commit and invest into our future or are we living for this day, this month, this quarter and consider every dollar leaving the company as an expense? It is imperative that everyone re-adjust our thinking to the reality of our regional, national and global economics we are confronted with today. We must ask and examine "Based on our actions today and our current philosophy, what will our business/our industry look like 7 years from now?.......which is really "our" tomorrow?"

I submit to everyone that we have reached the crossroads of moving from a "Trade" to a true "Profession" at ALL levels......now perhaps the aging/old people in the sector can't grasp that and will grumpily rebut this statement, however, the next generation of the aftermarket clearly now see the difference. Thank you vehicle technology. Thank you challenging economy. Our opportunity to make this transition over the next 3 years is here and every level must buy into the opportunity if the Aftermarket wants to be a dominant player in the National economy.

This is no time to doze off or fall asleep. Opportunity is pounding at the door..are you ignoring it or too old to hear it?

Are you up to it? If you don't understand it, then I recommend entering the necessary Business courses available so you can learn about it, understand it and "get it".

If you don't believe this, then respond to this BLOG and let me know how you see the future unfolding ..........but I must warn you of one thing that all of us fail to mention in ANY presentation made within the Industry............Remember, ultimately "Its all about the client/consumer EXPERIENCE". Are we providing that for such a grudge purchase?

So make a defined list as to "HOW" you are addressing this issue to ensure you are perceived as being "UNIQUE".

Don't talk to me about "Added Value" any more...that is just another form of discounting...in essence providing more for the same price.....time to truly get past this...and address the real question which is "What makes us Unique"?

The opportunity for the Aftermarket is huge...it is so positive......but I submit it will take vision, dedication, investment, and an unheard of amount of self-discipline to realize the incredible financial opportunity in front of all of us.........If you don't see this, then either get up to date with your education, or.......hey someone has to say it.........please leave the industry as YOU are part of the problem.

The Aftermarket Needs to Implement Training Bonds

The Aftermarket, at all levels, must seriously look at how it handles on-going training and education of their staff.

We now require an incredible amount of time and serious investment to ensure personal development of each and every staff member is brought to the right level of education, understanding and skill to ensure they can execute their function professionally,in a productive and efficient way within the business. Whether it be technical - minimum of 100 hours per year of training per technician to stay on top of technology, business management - 6 to 8 days per year of ongoing upgrading to stay on top of business issues and to learn proven solutions, product knowledge or soft skill training, the investment by business in education is forever increasing in today's professional aftermarket. The problem in many cases is that management can see the need for training and educational development but is reluctant to spend the necessary money for fear the employee may leave the company soon after the training has taken place.

The old question is...What if I train them and they leave? The old answer is....What if you don't train them and they stay?

The solution? Implement a Training Bond.

A Training Bond is a legal agreement signed by the employee and the company at the time the employee is hired outlining the training and educational courses the company is going to provide to the employee. It is an understanding by the trainee that he or she will take the training outlined in the Bond agreement, fully participate and do their best to learn and understand the courses attended and at the same time acknowledge the investment the company is making into the employee. If the employee leaves the company within a certain period of time, then, based on the time frame, the employee will, on a pro-rate basis, pay the company back for the training. For example, if the training investment into the employee by the company over a series of courses is going to be $10,000, then the training bond may state that if the employee quits within two years from the start date of employment, the employee owes the company $10,000. If the employee quits in the 3rd year, the employee owes the company $6,000, the 4th year - $3,000 and the training debt is forgiven in full at the beginning of the fifth year. This is an example only, however, it clearly recognizes in writing the investment being made by the company and the accountability by the employee to treat the investment seriously.

If the employee is fired for cause, the company forgives the Bond, however the employee now has a permanent mark on their record of employment.

The level of maturity within the business is raised.

This will be the new aftermarket. It is evolving into a full profession as education and knowledge is the key to company profitability and employee prosperity. On-going investments must be made and acknowledgement and accountability of the investments must be put into place. That's what Professionals do.

Do Tax Cuts Give The Rich a Free Ride in Canada?

Nothing could be further from the truth as shown in this story I found.

Let's put tax cuts in terms everyone can understand.

Suppose that everyday 10 men go to their favorite diner for dinner, The bill for all ten comes to $100. If it was paid the way we pay our taxes, the first four men would pay nothing; the fifth would pay $1; the sixth would pay $3; the seventh $7; the eighth $12; the ninth $18. The tenth man (the richest) would pay $59.

The 10 men ate dinner in the restaurant every day and seemed quite happy with the arrangement until the owner threw them a curve. Since you are all such good customers, he said, I'm going to reduce the cost of your daily meal by $20. Now dinner for the 10 only costs $80.

The first four are unaffected. They still eat for free. Can you figure out how to divvy up the $20 savings among the remaining six so that everyone gets his fair share? The men realize that $20 divided by 6 is $3.33, but if they subtract that from everybody's share, then the fifth man and the sixth man would end up being paid to eat their meal. The restaurant owner suggested that it would be fair to reduce each man's bill by roughly the same amount and he proceeded to work out the amounts each should pay. And so the fifth man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of $59.

Outside the restaurant, the men began to compare their savings. "I only got a dollar out the $20," declared the sixth man pointing to the tenth, "and he got $7!" "Yeah, that's right," exclaimed the fifth man. I only saved a dollar, too. It's unfair that he got seven times more than me! "That's true," shouted the seventh man. "Why should he get $7 back when I got only $2? The wealthy get all the breaks." "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor."

The nine man surrounded the tenth and beat him up. The next night he didn't show up for dinner, so the nine sat down and ate without him. But when it came time to pay the bill, they discovered something important. They were $52 short! And that, boys and girls and college instructors, is how Canada's tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore. There are lots of good restaurants in Switzerland and the Caribbean.