Why “One Ford” is One Good Idea

(and what others can learn from this vision):

There is no hiding the fact that after 100+ years Ford Motor Company became a huge collection of separate “chimney’s”, functions and area’s of expertise.  Even within a geographic region (ie Americas, Asia Pacific or Europe, etc) and individual functions there have been, and still are, obvious divisions of power, culture and prejudices.  It is inevitable that with continued success over the years, autonomy and decision making was pushed to those closest to each market.  Unfortunately, to sustain this autonomy, huge amounts of resources (particularly headcount and workload) have been required and core processes simply diverged over time.  It isn’t until we are forced to “remake ourselves” that we find the excuse and momentum to breakdown barriers that exists to transform our business model.  One of the best examples of a beneficial transformation in process is with Market Representation in the U.S.

Note:  Market Representation is the function of franchising dealerships to represent specific brands under specific terms.  A franchise transaction includes everything from Appointments, Approval of Buy-Sell Agreements (corporate or asset purchases), Ownership Amendments, Terminations, Resignations, Relocations, Additional Place of Business and a host of auxiliary contractual examples.

I was blessed to witness the partial dismantling of one of these legacy processes when I accepted the role of the Dealer Contracts Manager for Ford-Lincoln-Mercury in 2007 to lead the consolidation of Market Representation.  At that time, we were forced to radically reduce the headcount in the field.  Prior to this consolidation, all of the processing of every franchise transaction was locally developed, documented and presented to the general office by field personnel.  Unfortunately, this was not only cumbersome given the legal and historic precedence of each office, but it was inconsistent nationally as every market interpreted policy and requirements differently.  It is also true that the requirements of many transactions were redundant and needed to be re-engineered.  It wasn’t that any one region was incorrect (although disparity of quality between them was extreme), but it was simply impossible to streamline or automate dozens of variations of the same transaction.

After a deep dive into every possible transaction variation, we simply documented the best combination of processes and developed a step by step guide that would help streamline each transaction.  While there was considerable pushback and most of the players were resistant to change (I was one of them), the benefits of centralization slowly began to evolve.  As the expertise of those handling the transactions improved, the field became more efficient and better able to redeploy their valuable time with face to face interactions with our customers (dealers).  The field became less intimidated by the fact that their transactions would be processed by someone in a central office and they slowly adopted the modified process.  This became a huge WIN for the field and the Company because we truly consolidated a cumbersome process and eliminated hours of redundancy that ultimately elevated the field.  The manpower savings was enormous, but the real win was in the inevitable shift in mindsets that we really are one team.

Each of us want to believe our situation is unique and we justify the status quo for a variety of reasons.  When in reality we are better served as a member of a larger team with aligned goals.

This is less a reflection of a single project as it is an endorsement of the vision of having everyone on the SAME TEAM.  While there are benefits of parochial thinking, the freedom of dispersing the work and re-engineering our processes to include everyone on the team is greater.  I am confident the synergies we experienced in the US are only the tip of the iceberg as their are numerous activities within Marketing & Sales throughout the world that would benefit from ONE vision and a common process.

aka:  How to explain what you do for a living without putting someone to sleep!

Obvious Career Departure

While most of my personal connections know that I changed jobs with Ford Motor Company in 2005/2006 to heal from a terrible accident and to accommodate a number of reconstructive ankle surgeries, I am often asked to explain what it is that I do. Given that several of the jobs I’ve enjoyed the most were in Network Development, it was only natural to accept the role of the U.S. Dealer Contracts Manager (a desk job) during the last major restructuring of Ford’s Marketing & Sales organization.  However, for many outside the Company, this requires explanation.

In a nutshell, market representation (aka Franchising, Network Development, Dealer Development, Dealer Contracts, etc) can be boiled down into a simple description of four key components.  In my present capacity, I have the luxury of participating in the development of each step and I have used the following outline on several occasions to explain the process. It’s not quite a 2 minute elevator pitch, but it is succinct nevertheless. In fact, I have used this description in training employees in various regions and the general office who are new to the area as well as to newly appointed dealers when I have addressed them during my tenure as a Regional Manager.  The very foundation of a successful distribution network depends on getting each of these pieces aligned.

People – Places – Power – Promise

1st – People

• First and foremost, the network plan must start with enrolling the right people.  Sales and Service of any product is based on relationships and the interaction with customers and the selection of the right partners to represent these products is the critical first step.  There are no shortcuts to establishing a solid network of individuals that are aligned in every critical facet with the vision for the brand.  The tools of Market Representation 101 which we call the Four C’s are universally applied to every evaluation of any ownership transaction for a point in the network:

Character. Standard background checks are the price of entry.  Understanding the nature and history of each candidate is essential to preventing surprises that can be costly.  In many cases, an appointment is a long term relationship protected by State laws, so the first decision is often the most important.

• These people/candidates need to provide a level of transparency in their business plans and aspirations that set a standard worthy of partnering with for the long term.  The best time to reject a partnership is before it actually starts.  History has proven that any rush to judgment will result in sub-optimal marriages in most cases.

• There is also a growing concern (given the cost of entry), about the “share of mind” that the franchiser will have in ongoing relationships.  The fact that the majority of dealers have multiple facilities/franchises means that the days of family owned and operated points (often for multiple generations) has dwindled and brands often have to compete for owner/operator attention.  Do you have the right person for this particular point…for the long haul?

2nd – Places

• Location, Location, Location.  There is nothing more important to a successful business than location.  Proximity for both Sales and Service operations is a fundamental consideration for consumers and is especially important with larger purchases like automobiles.  This requires planning and thorough analysis of the market over time.  Representation Planning is a unique discipline that analyzes purchase and registration data to determine the proper number and location of individual franchises (rooftops) to maximize sales, service and satisfaction levels.  Proximity to traffic patterns, competitive offerings, population densities and demographic patterns are critical to appropriately representing a brand over time.  As fundamentals of a market shift, it also calls for a change in representation (relocation, added points, consolidations, etc).

• Facility (Standards) – Face of the brand.  This is also a serious consideration with representation planning.  The capacity of a given facility can often make or break the success of the entity as well as achieve the proper share of industry volumes/profits.  Equally important is the look and feel of the facility.  Is it commensurate with the brand or does the facility need improvements or modification?

3rd – Power

• Network Strength (Profitability).  The power of your network starts with profitability.  Customers deserve a level of treatment that requires personal attention beyond the sales process.  The cost of this relationship is embedded in the pricing of the product, but can easily be jeopardized when a dealer is in a loss position.  A healthy and profitable dealership operation can fulfill customer expectations with ease.

• Throughput is the key driver of success.  It goes without saying that volume is the lifeblood of a business.  To some extent, every store has a certain threshold they must achieve to cover their fixed expenses and operate efficiently and profitably.  During that last significant industry downturn, many business seriously lowered their operating costs and found a new lower threshold which should bode well for the future.  Having the appropriate network footprint (number AND proximity of rooftops) helps drive the sales expectancy and therefore throughput volumes in the majority of their stores.  When dealerships have the throughput volume to operate profitably they are more likely to reinvest in those operations and continue to exceed their customer expectations.

• Customer network (social media, UIO, community relations).  The power of each dealership’s network of relationships is also worthy of investigation.  How strong is their advertising presence in their own market?  How large is their network of shoppers (website traffic, friends of social media sites, units in operation for sales OR service customers) and how close are those relationships?  Do they have engaged and enthusiastic customers that are willing to recommend them to their friends or are they simply chasing preconceived benchmarks of performance?  The Power of a given dealer (or salesperson, point, candidate) can be supported with real data and is reflective of how successful the partnership will be in the long run.

4th – Promise

• Brand Centric.  Finally, we must ask ourselves if the candidate, location or point is the right match to the brand promise we must fulfill.  While difficult to articulate and measure, everyone will agree that some ideals simply don’t go together.  Volume & Prestige while nice to contemplate can certainly work against each other.  Aligning the business plans, capabilities, capacity and investments of every point in the distribution chain is critical to delivering a consistent brand promise to customers.

• Customer Experience.  The brand is defined by the experience…or vice-versa.  The culmination of all of the above criteria (dedicated people, resources, proximity, capacity, look & feel) result in a process that either mirrors and therefore reinforces the brand or it works to destroy it.  It is nearly impossible to separate the local dealership brand from the original manufacturer brand, so it is critical to align the network with the proper expectations and standards for delivering on the promise of the brand.

• Employee Training/Certification.  This leads us to the critical component of continuous education for the entire network.  As customer behavior and expectations evolve, personnel turnover and new product introductions mandate continuously training to mirror the portfolio.  This is also supported with historic training levels for each operation.

Despite the fact that as I’ve regained full mobility I have been eager to solicit other roles & projects at Ford,  I believe market representation is at the core of any franchise/brand that utilizes a distribution channel and there is no better place to hold a position.  While state franchise laws dictate certain aspects of the relationship, the cycle and process of working with dealers is paramount to long term success.  Having played a role in the consolidation of the Ford-Lincoln-Mercury dealer network (and now the sunset of Mercury) has been rewarding and has shown that improving the throughput of the network and focus on core products and processes can deliver superior results.

Creating the vision for a network built to sustain cyclical industry pressures and maximize customer satisfaction, engagement and loyalty will result in profitable growth for all.

There is a terrific metaphor in Lance Secretan’s book “Inspire!” that provides one of the best descriptions of many corporate workplaces I’ve seen.  I’m surprised I haven’t seen it in Dilbert!

We all know the term “copycat” as it applies to someone or something who imitates or adopts the behavior or practices of another.  Although it is cute when we are kids, it can be annoying later.  While imitation may be the best form of flattery, it can prove to be disastrous if we are following the WRONG behavior (even inadvertently).

The “copyfrog” label, however, combines this notion of imitation with the story of how a frog is boiled.

It seems that if you place a frog in HOT water it will immediately jump out.  However, if you place a frog in cool water and slowly heat it, the frog will stay until the water boils and it is too late to escape.

Lance Secretan lists one of the reasons we find it difficult to change is this copyfrog effect: …someone who is afraid to speak up for fear of ridicule or feeling alone, or appearing not to be a team player, even though many others may feel the same way, and are also afraid to speak out.  The result is that we copy the perceived (but not the real) beliefs of others — we copy others who are copying us.

Quite simply, by not jumping out of the water (or changing behavior) we are endorsing the status quo and ultimately leading to our collective demise.

If we model ourselves after those who have been successful (or appear to be so) rather than being authentic to our own souls it is easy to be trapped in denial when things turn bad.

Is it possible we have all been guilty of being a Copyfrog at one point or another in our lives?

One of the first questions I’ve asked myself when setting this blog into motion was “who in the world would ever take the time to read what I wrote?”

I’ve never been drawn to anything quite so narcissistic as a public diary (my original understanding of a blog) and my life is a tad bit boring (as my teenage kids will readily attest).  Yet, the more research I read on the art of penning one’s own blog, the more I feel compelled to try.

Clearly, my initial “pre-postings” were, at least, interesting for those that are close friends and family as they dealt with a number of personal issues.  The diversion from a normally secretive persona made the entries dealing with my physical recovery after an accident something to talk about.  Even if we’ve never met, most people can relate to injuries that require time to heal.  I was glad to get it all out of my system (so to speak) and it serves as good background for those that might find it interesting to watch how this blog has progressed.

I have been told by some colleagues that they are looking forward to some “dirt” on the Company we work for.  Unfortunately, this will never occur.  Aside from the water-cooler talk,  I have no interest in memorializing how close my corporate life is to the Dilbert comic strip.  Besides, there are plenty of other sites that rant on with automotive or employer bashing…we don’t need another.

Instead, I simply chose to document and follow a few of my own passions in a public forum.  Perhaps over time, this will reveal part of a transition I’m unaware of at the moment.  Nevertheless, I am compelled to find my own rhythm of starting the conversation.  I hope  that the more people I make aware of this site, the greater the chance we can actually have dialogue.  I continue to experiment with the “comments section”, but I clearly have hopes that I am successful in engaging readers along the way (or at least provoking a reaction).

So what can you expect to read and why should you tune in?

I hope to entertain you (at the very least).

My commitment to transparency quickly exposes the fact that I am simply a happily married, middle-aged, corporate grunt, father of 3 wonderful kids in college or high school.  I deny that I am going through any mid-life crisis (my kids joke that I must be) and I have no experience as an author of anything outside of grad school or work related activities. But after you get over my self-effacing boorish chatter, it will surprise you to learn my interests are…..well, interesting.

I promise to keep my postings short (600-800 words max) so it forces me to get to the point quickly.  As my confidence grows (no guarantees), I may post more than once a week.  I also leave room that I may decide to use video or audio clips, but for now I’ll stick with simple written submissions.

I’m also finding I have tons of friends that, like me, were really stuck in the past (the designer of my website called me “so web 1.0″).  I hope to also introduce them to the world of blogging as I teach myself a few new tricks.

So Stay tuned.  Bookmark this site…subscribe to the feed…or simply check in every weekend and participate (voting on the posts are also anonymous and a good way for me to judge if I’m on the mark or off base).

Next deadline: 1/2/10

I admit, I started my 2010 New Years Resolution last September when I initiated this blog.  I spent several months pre-populating the blog with various tidbits of a personal nature to practice using WordPress (the platform you’re reading) and to experiment with a number of topics.  While I have learned a great deal, I have far to go.

The point of this posting is to state that a New Years Resolution should be communicated. It should be a statement worth sharing.  It can be personal, which means you would only share it with close family members or a privileged few…but it is nevertheless a statement and requires the courage to communicate.  For it to “count” you must do more than just think about it.  You must have the courage to place it in view of someone.

I obviously told a couple of close friends & colleagues about this site while it was under development, even though I wasn’t yet sure I knew where it would lead.  It was necessary to gauge the level of expectations of my intended readers and to make adjustments when necessary. The best example was the revelation that anonymous postings were absolutely required if I wanted to entice people to participate.  At Ford Motor Company (and I’m sure many other fortune 1-100’s), it is a kiss of death to be viewed outside of mainstream.  So, the addition of the ability to join this conversation with an alias was born.  Anyone may log in and add value to this site without the fear of someone misinterpreting their devotion to their employer.

My resolution is simple:  I will stick with this blog and focus on  Transformations. I will post, at least, 52 weekly entries intended to spur conversation as well as personal & career reflection.

Of course, it’s not the only thing we will see on this site.  I fully intend to maintain my focus on mentoring others, pontificating my own “point of view”, sharing my own fascination with the study of the future and any/all tidbits associated with true value.  To make things interesting, however, something as personal as transitioning is worthy of my primary focus.

Feel free to jump in.  Learn from my mistakes (hopefully this blog isn’t one of them), learn from the experience of others commenting (tbd) and read my thought process and decisions during the next year or so and decide for yourself how you can do the same.

What is your New Years Resolution?

This story of transitions, will document several transformations at once.  It is blurry and confusing in the midst of such upheaval, but I am hoping more clarity unfolds as the story develops.  In the meantime, I will simply write what comes to mind.

——————

I made a rather bold accusation in an earlier post that one of the terrible by-products of a massive downsizing was the loss of passion in employees.  Indeed, many lifelong loyal employees at my own Company were walked out the door (or asked to leave) in a massive restructuring that extended throughout the entire automotive industry.  The survivors of this restructuring are struggling with how to re-engage.

Even those that remain in positions of leadership feel the lack of cohesion and synergy around them.  Remnants of our old culture mixed with the birth of a new culture not yet embedded make for a confusing environment to encourage true passion in your work.

Many simply won’t re-engage.  They are aggressively pursuing other interests and it is only a matter of time before they find something that will draw their attention.

Others, however, want to stay and make Ford the best automotive company in the world.  They just don’t know what or how to mentally and EMOTIONALLY reconnect at the same level they were previously.  We shouldn’t underestimate this huge leap of faith and courage that will be required to do so.

Our HR departments are now tasked with the monumental assignment of kick starting “employee engagement”.  How much will it cost to recapture your heart?

It is not a criticism of leadership or negative commentary on the decisions that were made during a painful restructuring.  It is a simple statement of a natural human phenomena of recovery.  In a traumatic event many people enter a period of shock.  It is a self defensive reaction that takes some time and attention to resolve.

Unfortunately, the easy answer of money won’t fix the issue of lack of passion or true engagement.  Sure, we would all like to have more money…it helps compensate for a lot of other things.  But even if you gave everyone a 20% pay raise (which would be a ridiculous move for a corporation), it would be a short lived improvement in satisfaction and ultimately no impact on real engagement or passion in employees.

We have to get back to the fundamentals of what makes people tick.  It’s about each individual and their own desire to feel wanted and connected.  Restoring their sense of value can be helped with pay raises…but their sense of feeling wanted and connected takes something else.

The obvious mandate is to provide a sense of purpose for everyone.  Restoring the health of the Company, hitting profit targets, sales targets, product & service targets are all worthy goals that every member of the team can aspire to improve and know how their contributions impact those results.  I believe this is hard work but most managers are skilled in helping employees know how their department or job impacts the goals of the organization.

The more difficult task, however is encouraging true engagement (or “passion” as I call it).  Employees can easily resign themselves to simply having a job.  They may be satisfied with their job (even rate it “completely satisfied” on internal surveys), happy with their surroundings, work-life balance and generally enjoy the relationships they have in the office.  They may even acknowledge a sense of purpose in what they do and perform their jobs competitively and typically in an acceptable manner (sometimes even much better).

To some inexperienced managers (or worse, those that don’t know the difference), they could feel their department was fully engaged.  Their employee satisfaction scores look really good….they don’t have visibly unhappy people walking around…they see people having fun at the water cooler.  They may have no reason to suspect their Company is being “shorted”.

A passionate employee is more likely to be less satisfied in this environment regardless of how they answer corporate surveys.  They see more potential for themselves, their Company, their teammates, etc..  They are often frustrated with limitations, bureaucracy or micro-management.  They are incredible assets to any Company that can harness their energy and unleash them in the right environment.

Fostering passion in employees is not a skill set that is universally developed in most corporations.  In fact, a manager that has the ability to spot passion and channel it effectively is rare.  To fully succeed in a globally competitive arena however, it is a requirement.

What would make you passionate about your job?  What would it take to make you the biggest ambassador in the history of your Company?  If they made a list of the most influential employees (in the eyes of consumers) would you be on the list or do you aspire to even be considered?  It’s a question that EVERY company needs to ask if they want sustainability.

You can’t Buy passion….you can only foster it.