Issue link: http://read.dmtmag.com/i/184881
Aftermarket Owner Investment is Tied Directly Into People Productivity Ask yourself, how much technology, innovation and training is enough? By Ron Slee I recently read an article addressing the gap in productivity between Canada and the U.S. It pointed to the fact that in the first quarter of 2013, Canadian productivity dropped by 0.9 percent versus a gain of 1.2 percent in the U.S. Statistics Canada stated the productivity index was 102.0 at the start of 2013 versus 100.6 at the end of 2005. That is truly a concern. Over the same period of time, labor costs expressed in U.S. dollars have risen to $120 from $86.10 – a whopping 39 percent increase. That is hard to sustain when there is a competitor for labor right next door. The culprit, according to David Dodge, who spent most of his career studying productivity as a former Bank of Canada Governor: "We don't seem to get the mileage out of our information and communication technology that the Americans do." According to Bank of Canada Senior Deputy Governor Tiff Macklem, Canadian workers had just half as much machinery and information and communications equipment as their American counterparts in 2010. Further, the Conference Board of Canada in 2011 found that spending for on-the-job training had dropped 40 percent since peaking in 1993. Slowing investment in technology, communications equipment, and information and training ties directly into productivity, doesn't it?! Having operated a training business for the past 20 years and seeing the ups and downs of investment by dealers and manufacturers in training, this point resonates with me very strongly. The AED Foundation stated a goal many years ago of 40 hours of training per We have been through a rough six years and it is not over yet. We are employee per year. Although I have not going to see growth in the forenot got the facts to back me up, I seeable future like we have experidon't think very many businesses enced in previous business cycles. We meet that goal. To make matters are either going to have to accept the worse, I believe that goal should be current business levels and just ride it at least 80 hours if not more. Innovation is another element out or do something about creating directly contributing to productivity. growth in the existing markets. How much does your current The problem with driving growth business system assist in the day-toin this market is that either you have day operations? Does it contribute to add more people to cause it or you to productivity? Does it make the have to make investments to make the information that is necessary for current staff more productive to allow your employees more readily availthem to create the growth. It isn't able than it did five years ago, or going to happen if you continue to do 10? Do you have an easy Internet what you have always done. portal to allow customers to become I don't believe that we have a co-producers with you? Can they situation where we don't know what find parts numbers on your portal? we need to do. I believe that we know Can they place orders on your what we need to do. But I don't see portal? Sadly, the answer in most many dealers stepping forward and cases is, "no." doing it. A wise person once said But that is a no harm no foul issue "Yesterday is history; Tomorrow a isn't it? Not if you read the opening mystery; Today is a gift." Tomorrow paragraph. Remember what we're is only a mystery to those who are a talking about: the devastating impact victim to it. Many people take the bull by the horns and make the tomorrow of reduced investment in tools and training have on productivity. I am a of their dreams. Isn't that what you huge fan of "The Balanced Scorecard" not only want to do but recognize business tool developed by Harvard that you should do? The time is now. Business School, which speaks to the customer needs and wants being Ron Slee (ron@rjslee.com) is the founder satisfied by defining internal excelof R.J. Slee & Associates, Rancho Mirage, lence. It asks the question, "What Calif., celebrating more than 30 years in do we need to excel at internally to business in the United States, a consulting satisfy customer needs and wants?" Then you need to determine the tools, firm that specializes in dealership operations. Ron also operates Quest Learning Centers, technology and training that are a company that provides training services necessary to support the employees specializing in product support, and Insight in delivering internal excellence. (M&R) Institute, a company that operates I suspect we all know that this is and facilitates "Dealer Twenty" Groups. Folwhere we fail. We don't identify what low Ron on Twitter: @RonSlee; and read his is necessary, and if we do, we don't blog at learningwithoutscars.com. spend the money to get it done. October 2013 | Construction Equipment Distribution | www.cedmag.com | 51 51_aftermarket_KP.indd 51 9/27/13 12:39 PM