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.

Winter doldrums….welcoming spring!

Transitions take time.

Ok, you’ve convinced yourself that a major change is needed….but now what?

Some of us have plenty of obvious reasons screaming at us for a change!

• Some may be in a job they can no longer stand….
• Many have found themselves without a job or a downsized career and feel they are just buying time….
• Some have realized they’ve been chasing something they no longer want and are looking for a different path….
• Most understand they they could be doing a better job prioritizing their life (some day soon)….

We might be at wit’s end…

Or maybe you’re not entirely sure why you feel motivated to seek a change but something is pulling you in this direction.  You might even feel guilty that you’re fortunate in almost every respect (you have a roof over your head, bills are getting paid and life might be moving along without a hitch). Yet, you’re uneasy and searching for “the next thing”.

I believe there are times our inner voice calls us to act…yet we don’t know what to do about it.  [Please don't call the guys with a straight jacket to pay me a visit....give me a moment or a few posts and I'll explain ]

Before you take any action, I believe you should invest the time and energy in yourself first.  Spending some quality time examining yourself is absolutely critical to designing a plan worth pursuing.

A Period of Self Discovery

I wish I had made this investment in myself 20 years ago.  My opportunity came while recovering from a major accident and I had nothing but TIME on my hands.  After 22 days in a coma, I spent the better part of 6 more months in a bed & wheelchair with the good fortune of my loving family, hundreds of books and a laptop.

Being blessed with time I was able to properly deal with what I believed was a life altering (and presumably career altering) event.  The lessons learned were amongst the most valuable in life and worth sharing.

But nothing came to me (that I can point to) from books, tapes or television.  The awareness of the necessity to change or alter the path you’re on comes from within each of us and may be different for each of us.

If you’re like me, you won’t easily succumb to any “touchy-feely” jargon.  Yet if you simply do your homework on yourself and discover what truly brings you peace…you will find your answer.

More to come….

Clearly, we don’t need to look far for reasons to enact change amongst us.  I continue to list the “high hard ones” to capture the dozens of conversations people have shared…and one of the most compelling reason to adopt a change within ourselves is the very fact that we shouldn’t waste a time of crisis.

Now is the time to take action.

A Crisis is a terrible thing to waste.

The perfect storm holds the hidden benefit of justifying extraordinary actions.  Our employers, our organizations, our local-state-federal governments all recognize this and have used this as an opportunity to recalibrate budgets, future plans and aspirations.  It also calls each of us to do the same.

If you’ve read my earlier posts, you know I also treat a horrible accident as a watershed event in my own life as it facilitates a number of quantum changes in me (some still in process). It’s actually been the catalyst (or excuse) for virtually any change I wanted to make.

We can actually use this “Great Recession” as the excuse to change our lives!

Sure, we can change our careers.  Go back to school, follow our dream job (most of us don’t really know what that is), start  our own business or even re-create the one we have.  Just because the landscape has changed, it doesn’t mean we don’t have control over what we do about it.

We certainly are forced to recalibrate our living.  Financially, we are all coerced to justify our lifestyles. How great will things be in a few years if we are able to maintain our “new lifestyles” with so much less stress? Our energy applied to relationships and meaningful endeavors will certainly yield a more rewarding life.

This series of short postings are highlighting several compelling reasons to enact change in our lives.  We each have our own reasons, but I’ve not talked with a single individual that doesn’t agree change is needed.

In my small part of the world, I am already seeing the early signs that people are joining together recognizing this need for change and beginning to shape the next steps.  We inspire each other.

If the recent news articles dealing with employee morale are any indication…our employees are desperate for change! [see example below]

It is inevitable that we all feel a bit separated & isolated after a period of shock.  In fact, I believe it is natural.

I’ve read, and heard of, so many divorces, broken relationships and career altering decisions after catastrophic events put such stress on people they simply shatter their preconceived assumptions.  I don’t for a minute want to minimize a truly catastrophic event, but I have witnessed a number of people that have (or are now) treating the loss of a job or downsized career as a catalyst for completely overhauling their assumptions.  I’m not sure it is all bad, but it can be if we’re not careful.

Keeping things in perspective is easier said than done, but we can help each other when we know we’re not alone.

Downsizing, unfortunately, doesn’t lend itself to team building or camaraderie.  Nor does it foster the beginning of closer relationships in the workplace.

The “I survived 2007, 8 or 9″ T-shirts simply don’t cut it.

As colleagues in an environment that has experienced shock, we must lead the positive change that we all know must occur (even if we don’t know exactly what to do).  It requires us to act — to communicate with one another (maybe for the first time).  It calls us to focus our attention on each other and put our egos behind us.

Putting all of our energy into improving the morale of those around us is the surest way of improving our own lot in life.

As a mentor, finding a way to serve the needs of someone else will strengthen the very network that is broken. You can make a difference in the life of someone else….and quite accidentally take one step closer to feeling what has been missing from your own experience.

We simply need more people serving those around us before we will heal this place.

———————————-

CNN Money.com article

‘Working twice as hard for half the money’

By Jessica Dickler, staff writer  January 25, 2010: 11:16 AM ET

NEW YORK (CNNMoney.com) — Being out of work is taking a toll on job seekers. But even those with a job are getting fed up.

Layoffs, diminished benefits, pay cuts and extra workload burdens are finally pushing many disgruntled workers right out the door.

In a study by CareerBuilder, 24% of workers say they no longer feel loyal to their current employer and 19% plan to move to a new job this year.

Almost one-quarter of respondents surveyed by the Conference Board in a separate study said they didn’t expect to be at their current jobs within a year.

Since the recession took hold two years ago, only the threat of the unemployment line was keeping workers on the job. But as the economy shows signs of improvement, “people will start taking off in droves,” said Rusty Rueff, a career and workplace expert at Glassdoor.com.

Brent Q. hopes to be one of them. Q, who is 36 and works as a flight attendant at a major airline, has seen his pay and compensation cut 33% since the Sept. 11 terrorist attacks. At the same time, his hours have increased.

“We’re working twice as much than we’re supposed to be working for half the money,” he said of himself and his coworkers.

He has since gone back to school and graduated with an MBA, hoping to find work in arts administration and leave the airlines behind.

Despite his discontent, Q. says he will continue working at the airline until he receives a job offer. “I really can’t afford to quit, it’s a matter of grinning and bearing it until things turn around.”

“Workers feel like they took the brunt of the recession because companies had to do whatever they could to cut costs, and what they cut were programs that directly impacted employees,” explained Michael Erwin, a senior career adviser at CareerBuilder.

Now, with signs of improvement in the economy, employers should start thinking about worker retention, rather than cost cutting.

“Morale is in the toilet,” said Glassdoor’s Rueff. “Morale issues lead to productivity issues which lead to results issues.”

If employers do not communicate what employees can expect going forward in terms of reinstating salaries and benefits, then that’s going to cause a lot of friction, Rueff explained.

Joan Marie Verba, 56, couldn’t take another day with her former employer.

“I worked for a nationally advertised weight loss company. Our pay was basically minimum wage, with commissions for each client,” she said. “However, ever since the recession started, the number of clients diminished, which meant that the pay essentially was reduced to minimum wage.”

Plus, “they were cutting hours and the opportunities were just shrinking,” she said.

“I was just so frustrated, I had to make a change,” Verba said of her decision to quit in December.

She has since been looking for another job while taking additional classes in health coaching and working as an independent weight loss consultant.

But experts say employees need to keep their emotions in check and think twice about whether to jump ship without a back-up plan.

“It’s going to be even more competitive than it was last year,” Erwin said.

Workers should start thinking about their next move, update their resumes and build up networks. But quitting on the spot as a form of protest is not advisable considering the alternative of getting lost in a sea of job seekers competing for few openings.

“People who are in jobs need to think long and hard before they jump up and say that the grass is greener on the other side,” Rueff cautioned. “I don’t think they want to be out there on the street right now.”