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Showing posts with label Planning. Show all posts
Showing posts with label Planning. Show all posts

Friday, July 15, 2022

The Slow Slide into Shittiness

By now in your career you've probably been employed by, hired, partnered with, or competed against a company that was bought out by another company.

Think about what they were like. Roll it around on your tongue.

If you had any experience with that acquired company prior to its acquisition, no matter what your role was at the time and no matter whether that company employed you or was one of your vendors, partners, etc., chances are that you either worked for or with or against them because they were a pretty well-run company, with something that, if pressed, you might even say you really liked about them.

Until...

They were bought up or out by another (usually larger, often older, certainly more bottom-line-focused) company and run right into the ground.

It might have taken awhile, but the first signs appeared early - layoffs, management changes, mass defections, and release dates for new products and/or services either pushed back (often more than once) or shelved, with the PR folks spinning an endless cloud of vague language to try and downplay the fact that the company you liked better was now circling the drain.

The reason for this is because almost all acquisitions take place in order to grow the buyer's market share. They completely ignore what made the target company attractive enough to become a target in the first place: Customers. Loyal Customers.

When you buy a company, unless it's carved out in the legalese as a sop to the original owner(s), you get the whole thing: IP, products, employees, property, documentation, goodwill, history, and on and on. But if you only walk away with their Customer list (perhaps chopping up the rest to sell down-market) and somehow believe that those Customers are now yours, you haven't been paying attention to corporate acquisitions over the past century or so.

Something about the acquired company appealed to those Customers. It might have been their products, or how great their rep was, or their lower cost, ease of use, simple terms, terrific service, culture, inclusiveness, processes, or a hundred other things. Or (most often) a mash-up of all of those things.

The company doing the buying typically has a culture that is focused on acquisition. That's how they got so big in the first place. But as they acquire Customer lists and discard the rest, those Customers jump ship to the next company to come along that offers all of the things that were jettisoned in a race to instant gratification and the bottom line.

During due diligence, as you're looking over the books of the company that you want to acquire and figuring out how to make them part of you by forcing them to be you, with your people and methods and rules, why not do this:

  • Have each of your department managers spend time with the managers and crews of the company that you are buying. Not an afternoon. A solid two weeks at least. Not to explain your company's way of doing things, but to specifically look for things that they do better than you do.
  • Record everything you see and hear.
  • Take all of that knowledge - that you are paying for, by the way, and now own - back to your own company. Map it against how you do things. Figure out how to adopt the things that they do better. Even if it means - horrors! - changing things in your company.
  • Start doing things the new way, before the acquisition is complete, or it will never happen.
  • Don't let everyone who isn't in sales leave. People are more often than not what made that company great - their knowledge, experience, ideas, attitudes, excitement. I understand that you can't and don't necessarily want to hire everyone. There are always redundancies. But what if their HR Manager or one of their line workers or IT people is better than one of yours? Trade up!
Most acquisitive companies tend to take a Darwinian view: We must be the better company, this line of thinking goes, because we're acquiring them. But this completely ignores the fact that acquisitions aren't why most companies exist. When you're a hammer, everything looks like a nail.

When you've paid all that money for another company, why leave so much of value on the table? Or, worse yet, there for the taking by a competitor with a wider view and a long-term vision?

Hey, it's your money; do what you want. I just (used to) work here.

Sunday, February 16, 2020

Setting Up an Auto Service Business Development Center

Staffing
Our Service BDC does all inbound/outbound service calls. We also have a Sales BDC that handles all inbound/outbound sales calls.

In addition to the calls that they are paid for (see below), our Service BDC reps also follow up on reservation no shows. Our current no-show rate is about 6%, down from a high of 15% that occurred before we changed our reminder emails/texts (which now go out at the time the Customer makes the reservation, the night before their reservation, and the morning of).

Conversica has also proven useful as a data mining/contact tool. Our results have declined, but the volume of reservations that it generates is still very reasonable for the cost. We just wish that it was able to text Customers, as we find that far more effective than emails or calls.

Metrics
  • Answer speed: 94% on the first ring. 100% by 3rd ring.
  • Abandon rate: Less than 4%.
  • Outbound calls/texts per day: Minimum of 120. Texts are better than calls – they get many more responses.
  • Reservations per day: Minimum of 20/rep, goal of 30.

Breakdown of reservations
  • 50% as the result of outbound calls
  • 20% online
  • 20% Service Advisors
  • 10% combination of email and snail mail

Necessary Resources
  • I highly recommend having a call recording system to playback calls and for training– at least 90 days of storage, ability to track calls by extension, ability to forward calls as .wav files, and ability to generate reports that show call length, successful/unsuccessful outgoing calls, and wait time
  • Booking system – The same system has to be used by the BDC and by the Service Advisors; BDC reps must be able to leave notes that the Service Advisors can see, and the BDC reps must be able to see recommended services, including quoted prices; the booking system must be able to report on volume by date, rep, show/no show, service(s) performed
  • ACD Reports – answer speed, abandon rate, call volume by day of week, date, time of day (to help figure out staffing), wait time (to corroborate with recording system)

Training
We give each of our BDC reps a training manual. It contains our scripts, a phone operation manual, breakdowns of our processes, a reference guide, maintenance service guide and prices, contact list of Motorcars employees, our department’s priorities and philosophy, and a set of flashcards. We use the flashcards as a fun way to train new reps on questions that they won’t likely get very often but should still know the answers to (see below, after Scripts).

We also have up-to-the-minute versions of all of this – plus the schedules of all employees – in the cloud (Google Drive).

A typical new hire shadows the entire team and begins to make outbound calls within 2 weeks, and inbound calls within 4 weeks. Because there is so much to know, we would rather they learn things well, rather than quickly.

Outbound Calls/Lists
  • No shows
  • Declined services
  • Collect updated email addresses, textable phone numbers
  • Purchased recall lists
  • Sold not serviced
  • ToyotaCare (each cycle, plus late, ToyotaCare Plus, and Toyota ServiceCare)

Compensation
We have a daily spiff to drive the next day’s reservations. The spiff is paid out to every member of the team, and starts at a combined total of 70 reservations for the following day:
  • Less than 70 reservations = $0.00
  • 70 reservations = $12.50
  • 80 reservations = $15.00
  • 90 reservations = $18.75
  • 100 reservations or more = $25.00

The team can see where they are constantly throughout the day by checking the Workbook in Xtime, and I tell them how much money they have in their ‘bank’ every time it goes up. This has proven to be a winning strategy – everyone makes extra calls to get over the next hump.

Outbound Campaigns

Conquests
  • $7.50 for Customers 9 to 16 months without service
  • $10.00 for Customers more than 16 months without service
  • Recalls – Payout per ‘show’ for proactive outbound contact - $5.00
  • ToyotaCare - $0.75 for each ‘show’
  • ToyotaCare Plus - $20 for each credit card number collected
  • Toyota Service Care - $10 for each credit card number collected

Detail Center
  • Complete Detail - $12.00
  • Interior Detail - $6.00
  • Exterior Detail - $6.00
  • Pet Hair Removal - $2.00
  • Floor Shampoo - $2.00
  • Seat Shampoo - $2.00
  • Exterior High-Speed Buffing - $3.00
  • Engine Clean & Degrease - $2.00
  • Rubbing Compound - $5.00
  • Steam Clean Dashboard - $2.00
  • Ionizer - $3.00
  • Add Fresh Air Scents - $2.00

Recommended Services
  • Alignment - $5.00
  • Battery - $5.00
  • Brakes - $5.00
  • Tires - $10

Marketing Plan

We have found that our most successful campaigns have several traits in common:
  • They are a combination of email, postcards, and outbound calls.
  • They are narrowly targeted – not ‘shotgun’ ads. For example, there are 5 different ToyotaCare email templates – one for each of the 5 services – plus one to transition Customers to ToyotaCare Plus and another to get all Customers, regardless of brand or model year, onto Toyota ServiceCare.
  • As a rule, our eBlasts and postcards rarely feature pictures of cars. Instead, we use humor, children, single panel comics, puppies, kittens, and images of the folks who work at our stores. ‘Dad’ humor seems to work best.

Scripts

Incoming Call
  • Thank you for choosing Motorcars. This is ___________ speaking and I can help you!
  • My pleasure, I’ll be happy to assist you with this.
  • Please allow me to gather some personal information from you. May I have your home telephone number?
  • (If Customer does not appear under the phone number given, let them know, and ask if they have brought vehicle in for service before.)
  • (If yes, thank them for being a loyal Customer and try to find them by last name.)
  • (If no, thank them for the opportunity to earn their business and create a Customer profile for them in XTime.)
  • Which vehicle is your call regarding? (Year/Make/Model)
  • (If Honda) What service codes appear on your Maintenance Minder?
  • (If Toyota) Your next recommended maintenance service is XXX. Is this the service that you wish to schedule?
  • (Check Dealer Daily for Toyota recalls. If there are open recalls, let the Customer know, and ask if they wish to have them taken care of during their visit.)
  • Anything else that you’d like us to check out, since it’s coming in anyway? We also offer complete Detail services, if you would like to schedule that at the same time.
  • Will you be arranging your own transportation or taking advantage of our shuttle service? (Unless oil change or other Waiter. If the concern is an electrical concern of any kind, it must be a drop off. The Customer’s SA will be able to give the Customer a good idea of how long it will take once the technician has an opportunity to see the vehicle.)
  • What day works best for you?
  • Let me check our service calendar for a convenient drop off time… We have an opening on ______ (day) at ______ (time) - will that work for you?
  • What email address/textable phone number may we send your confirmation to?
  • We have you scheduled to meet with your Service Advisor at ____AM/PM on _____ (day). You will be meeting with _______________. Our goal is to complete your visit in roughly XX hours, but your Service Advisor will be able to give you an exact time when they check in your vehicle.
  • (If new Customer, explain service drive and shuttle process.)
  • Again, my name is ____________and if for any reason you need to reschedule, will you please give us a call?
  • Have I answered all of your questions and provided you with excellent service today?
  • Thank you for calling and have a great day!

Declined Service(s)
If You Get Voicemail
Hello, __________, this is __________ calling from Motorcars. Please call me at XXX-XXX-XXXX. Thank you! Have a great day.

If a Human Being Answers
Hello, this is __________ calling from Motorcars. Is __________ available?

Hello, __________, this is __________ calling from Motorcars. Your Service Advisor recommended some work during your most recent visit, and I’m calling today to schedule your reservation.

We have an opening today at __________. Will this work for you, or would another day be better?

If They Push Back
I understand. Do you mind letting me know what obstacle we might be able to help with?

If It’s About the Cost
I realize that this might be an unexpected expense. If it will help, we have a special coming up next week on (depending upon which service was declined):
Alignment - $95.96 (normally $119.95)
Brakes - Save $50

We also offer a deferred interest credit card that allows you to take up to 6 months to pay for any work that you have done. It can also be applied to needed parts, such as tires and so on. Would this be helpful to you?

IF IT’S ABOUT BEING WITHOUT A CAR (only applies to brake jobs)
If it will help, I can offer a 1-day rental at no cost to you while you have this work done.

IF YES
Great! What I’m going to do is to schedule your reservation and I’ll add a note to your Service Advisor, so they’ll know about this.

(Make sure you schedule them with the same Advisor who made the original quote.)

IF NO
That’s fine. When you are ready to schedule this service, please let me know. My name is __________ and you can reach me at XXX-XXX-XXXX ext XXX. Is there anything else that we can help you with today? (Pause) Thank you! Have a great day.

No Show Follow Up

Hello, this is _____ calling from Motorcars. The reason I’m calling is that it looks like you may have missed your recent service visit. We understand – life happens.

Would you prefer to reschedule in the daytime, evening, or on a Saturday?

I have 3 times open on __________ … one at __________, one at __________, and one at __________. Which is best?

Great! I have you scheduled on AT

If a Human Being Answers
“Hello, this is __________ calling from Motorcars Toyota. Is __________ available?

Hello, __________, this is __________ calling from Motorcars Toyota to schedule your ToyotaCare service. This is a free maintenance service that we provide that includes everything but air filters and wiper inserts for the first 2 years that you own your vehicle. We have an opening at __________ on __________. Will this work for you, or would a little later be better?”

If You Get Voicemail
“Hello, __________, this is __________ calling from Motorcars Toyota to schedule your FREE ToyotaCare service. Please call me at __________ ext. __________ to schedule this service. I’ll be happy to help. Thank you!”

ToyotaCare Plus

If a Human Being Answers
“Hello, this is __________ calling from Motorcars Toyota. Is __________ available?

Hello, __________, this is __________ calling from Motorcars Toyota to schedule your next maintenance service. I see that your ToyotaCare service plan is about to expire/has expired. Would you like to extend your ToyotaCare coverage?

Extending your ToyotaCare will extend your coverage for maintenance for an additional 2 years. This will cover your first major service, which is normally $160. It will also cover 3 additional services after that. Extending your plan will also extend your roadside coverage for an additional 2 years. This covers flat tires, no starts, running out of gas, and they will get you to the nearest Toyota dealership anywhere in the United States.

There are 2 ways that you can extend your ToyotaCare. One is to pay the total amount of $329 plus tax.”

If They Say No
“That’s fine. Let’s go ahead and schedule your next maintenance reservation.” (Continue with service scheduling process.)

When They Say Yes
“Excellent! Let’s go ahead and schedule your service, and then I’ll take your credit card information so that we can extend your ToyotaCare coverage.”

Wednesday, September 21, 2016

Why?

In nearly every company that I have been privileged to work for, it has amazed me how little forethought is given to the ripples caused by major decisions - something that I take for granted. At first, I thought that it must be a cultural thing - the best leaders are the most decisive ones, right? But over the years it's become clear that few business people have any idea how to think beyond the immediate consequences of an action. In fact, many find the idea so alien that it makes them physically uncomfortable. In short, they squirm like a worm under a magnifying glass.

Doesn't anyone play chess any more? Or Monopoly?

The formal process of the 5 Why's was developed by Sakichi Toyoda, founder of Toyota Motor Corporation, to find the root cause of product defects. A shortened version (the 3 Why's) was later all the rage for goal-setting and so on, but then seemed to disappear, even though the root idea is the foundation of any successful organization: constant self-examination.

However many you choose, the Why's lead you to the underlying truth of any process, issue, person, goal, and on and on. They require nothing more than a commitment to acting like the average 3-year-old. Here's an example:


  • We need a new CRM program.
  • Why?
  • Because our old CRM program doesn't help us close enough sales.
  • Why?
  • Because our sales reps don't use it.
  • Why?
  • Because we don't hold them accountable for using it.
  • Why?
  • Because we're afraid that, if we hold them accountable, they might leave.
  • Why?
  • Because we don't know how to lead them properly, and it's hard to do, and we're afraid they'll stop liking us if we do.


The wonderful thing about the question 'Why?' is that it can and always should be asked until it meets bone, because doing anything else is throwing up your hands and admitting that you aren't ready to play at the pro level, and probably never will be. 'Why?' forces you to think as much about the Law of Unintended Consequences as it does about motivation (or the lack thereof).

Here's another:


  • We're going to change this process.
  • Why?
  • Because the old process is inefficient.
  • Why?
  • Because no one has time to do it that way any more.
  • Why?
  • Because they are already spending too much time on another process that we recently changed, but which doesn't seem to be working as well as we'd hoped.
  • Why?
  • Probably because we didn't ask ourselves 'Why?' enough times before making that decision.


Besides telling you the truth, another nice thing about 'Why' is that it's inherently private; no one has to hear you talk yourself out of a bad idea. In fact, if you do it right, you're laying the ground work for rejecting other people's bad ideas by figuring out what's wrong with them (and what the real issue is) in advance.

Don't get me wrong - 'Why?' is not about finding excuses to shoot something down. Any change that is truly needed easily stands up to the scrutiny of 'Why?', plus builds its own framework on the way, no matter how departmentally locked-in things start out:


  • We're going to create and launch an expensive new marketing campaign.
  • Why?
  • Because we have a new product.
  • Why?
  • Because our research indicates that there is room and a need for it in the market.
  • Why?
  • Because it will decrease the amount of time that people have to spend cleaning up pet poop.
  • Why?
  • Because our new product instantly turns any pet poop into biodegradable fertilizer.

Really? Spend away! We're all going to be millionaires!

Remember: Business is not a game. There are sharks everywhere, always, and if you don't learn how to see around the next 3 to 5 corners in advance, you end up as fish food.

Monday, March 2, 2015

Slosh

Every employee in your organization has a bowl. Back in the '90's it was a plate, and everyone talked about how full their plate was. In the 21st Century, we've increased productivity, which is putting positive spin on the fact that we've eliminated a lot of positions but not their associated responsibilities. Instead, we've heaped those responsibilities on existing staff, who no longer talk about how full anything is because they don't have time - all of which brings us to the bowl.

It's a bowl because the plate wasn't big enough. If your workplace is like most, everyone you know now does the equivalent of three jobs. They come in early, eat at their desk, and don't leave until it's dark (or, for some poor souls, just getting light). All of which is fine, fine... hire 5, work them like 10, pay them like 8, right? Only we don't, we pay them like 3, or maybe 4 if they've been around long enough, because isn't being a good corporate steward all about increasing returns?

All of which is grand material for a book, or possibly a sea change in corporate culture, but what we've gathered here to talk about today is slosh.

Slosh is what happens when you try to add something to a bowl that's already full to the brim. As a famous fictional Scotsman once said, "you canna change the laws of physics". Every bright idea that you get and push down the chain of command means something is going to spill out the other end.

I know what your argument is going to be, and yes, it's going to be an argument: "But it's just 10 minutes," you'll say. "It will make us more efficient, which will actually save time," dances out of your mouth. "It will save time and money," you sing, and it sounds sweet, but it's all a lie, my dears - every syllable of it.

The old work doesn't go away when there is new work. It would be nice if it did, but it doesn't, and some parts of it can't go away without affecting other (madly important) bits down the line that you aren't even aware of. Slosh is the butterfly effect in motion, and the only way to prevent it is to study what the heck your people actually do before you even open your mouth.

I don't mean what you think they do, or what you think they should do, or what the books say they do. I mean what they actually do. And until you sit down with them for a day or two and watch, utterly silent and unobtrusive, I'll bet you a sandwich that your idea of what happens and what actually happens wouldn't recognize each other in a mirror.

The only way to prevent slosh is to make room first. There are a couple of ways to do this (the very last of which should be to hire more people).

Your first step, always, is to look at what we do now and determine if any part of it is redundant, inefficient, or flat-out insane (you know what I'm taking about). It's pointless to plant potatoes (although that's fun to say) until you get dirty and dig out the weeds. Once they're gone, there may be room for your new idea provided that:

a. It's cost-effective. (What do you mean you didn't write a business plan for your brilliant idea? This is business. In a business, we write business plans and do SWOT and whatnot. Look it up.)
b. There is genuine buy-in from the rank and file. Unless you've gone around and gathered their input, you've not only doomed your brilliant idea to a swift, largely ignored death, you've missed the opportunity to make your idea even better by throwing it up against their fiercest tire kicking and adopting their suggestions.
c. It's well planned and has a timeline, with deliverables that each person involved is responsible for.
d. You aren't responsible for more than half of the outcome.

Unless and until your process takes all of the above into account, your employees - even the ones that like you - will see your new idea as the enemy, and put into play the one defense they have at their disposal: Push back the launch, week by week, until you forget all about it and are on to the next shiny piece of tinfoil.

Wednesday, March 19, 2014

3rd Thoughts

When your organization wants to accomplish something, and the group that will address the project, change, or issue meets for the first time, that meeting is likely to be filled with what I call 'First Thoughts'. First thoughts are all about wants and needs, and you frequently hear those words pop up during this discussion. It's all about defining what you or your organization need or want.

Second Thoughts are exactly that - the other folks that are involved ask that all-important question (Why?), then proceed to tell you why the thing that you want or need can't be done, or how much it will cost, or how many man-hours it will steal from other tasks, etc. Second Thoughts are thinking about your thinking, looking for holes in the boat and kicking the tires good and hard before investing man-hours and money.

The author Terry Pratchett - our time's equivalent to Shakespeare - takes this process one step further, to what he calls 'Third Thoughts'. According to Pratchett, "Third Thoughts are thoughts that watch the world and think all by themselves. They're rare, and often troublesome. When a huge rock is about to land on your head, they're the thoughts that think: Is that an igneous rock, such as granite, or is it sandstone?"

Once you've heard all of the 'Why' answers, Third Thoughts are what lead you to re-examine the want or need in light of the organization as a whole, using the perspective of the other meeting attendees as the dental tool that looks for cavities. For this reason, it's always a good idea to involve people from other departments in at least the first meeting, even if their department is not involved in the issue. In fact, folks not involved in the issue are most likely to have Third Thoughts, because they have no vested interest in the outcome.

Pratchett also differentiates between 'Second Sight' (seeing what you expect to see) and what he calls 'First Sight' (seeing what's actually there). As you look at your list of meeting participants, think about who is most likely to have First Sight. If you don't come up with at least one name, you aren't inviting the right people.

Decisions cost time and money. Every mistake doubles both. The way to minimize risk is to put as much or more time into tire-kicking and perspective-sharing as you do into execution. Take time between each meeting to get it all down on paper, pass out the notes, and ask people to add what they've thought of since you met.

In the end, it will take less time and money to measure twice and cut once - especially if you figure out up front whether the cutting should be done with scissors or a chain saw.

When Slippage is Bad

Slippage is the practice of offering something - a discount coupon, a voucher for future service, a cup of coffee, etc. - knowing that a lar...