Aftermarket Dave Baiocchi

from 2021 October Material Handling Wholesaler

‘Don’t Hesitate’ Women in material handling talk about the opportunities and evolution of the business

Breaking down the silos

Last month we discussed how the departments, or “profit centers” in our dealerships give rise to inter-departmental tension, and “silo-building” activities that if left unchecked, can easily affect customer service and efficiency in negative ways. I wanted to take some time this month to talk about organizational practices and policy standards that help to deconstruct these silos before they even have a chance to affect customer relationships.

Aftermarket – NOT parts and service.

Truth be told, most of the opportunities to erect silos can be found in the aftermarket department of the dealership.

Notice I said AFTERMARKET. This is an organizational practice that I suggest for dealers right off the bat. The reason you have parts and service SILOS is that you have parts and service DEPARTMENTS. The function of caring for customer equipment is fully dependent on both the parts and service mechanisms working in TANDEM, as one entity. The moment that we allow the customer to see the separation between the departments, we have exposed our silos, and we start to lose cohesion.

I don’t mean to suggest that we merge these departments on the financial statement. Goal setting, process metrics, and operational tasks are different for each one of these profit centers. We still need the visibility of clear-cut forecasts and functional assessments in each department to chart our progress and adjust our tactics.

I’m looking at this from the standpoint of communication, data visibility, coordination, and execution. The customer has to feel as if the parts effort and the field service function operate as a singular resource. How can we do that?

Communication tools

Every dealer I have visited in the past 8 years, struggles with some level of miscommunication. There is so much data that changes hands inside a dealership that we are bound to misunderstand or misconstrue some of the details. Over the past 40 years, I can’t tell you how many times I’ve heard: “We need more communication”!

My response is simple: No, we don’t!

When I was a territorial salesperson back in the ’80s, and my customer wanted to communicate with me, they had to call our main office location. The sales secretary would dutifully put pen to paper, and take a message (remember those pink notepads?). Then she would call my pager. The pager on my belt would vibrate and I had to find a PAYPHONE to call in and get the message. Then I dropped another quarter on the phone to call the customer.

Compare that to what we have at our fingertips today! Cellphones, email, voice mail, IM, tablets, laptops, Facetime, Skype, Zoom, Instagram, Facebook, LinkedIn…. shall I go on?

We don’t need MORE communication. We are actually AWASH in communication.

What we need is BETTER UNDERSTANDING. Understanding is the GOAL of communication. Adding more ways to communicate without changing the quality of the communication will continue to produce less than acceptable results. So how do we refine our communications and our action plans so that the customer will see a unified, aftermarket effort? Here are 9 policy and process strategies for blowing up (or at least building bridges between) the silos in your dealership.

• Write Instead of Speak.

When there is a choice…write it down. The written word provides visibility and accountability that words just can’t duplicate.

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Aftermarket continued • Follow Up.

If you must depend on verbal communications, follow up with an email to memorialize in writing what was agreed on.

• A Picture is Worth a Thousand Words.

Every employee has a digital camera today. When we can’t exactly explain it, we can snap a photo. When the serial number is 32 characters long, we can snap a photo. The power of photos is undeniable.

• Assign Teams.

In order to create connection points across the silos, it’s a good idea to assign teams of employees to selected customers, tasks and initiatives.

Example: All the customers in Franklin County are assigned to CSR Ben Atkins. These customers will primarily be served by Van 6 (Jon Davis) and Van 8 (Dan Clark). Jon and Dan will use counterman Jeff Baker as their primary parts resource. Joe Jones will be the primary service writer for work orders opened in this county. Ben, Jon, Dan, Joe, and Jeff are now a TEAM. All communication about any service customer in Franklin County should include all team members.

This type of assignment makes the CUSTOMERS the focus of the communication and requires that the participants hold themselves responsible to the customers, and each other.

• Group Email.

The ease of digital communication allows us to create “groups” of support staff (see # 4 above) that can ALL be included in the email loop when it comes to managing and communicating customer needs. This is especially helpful when dealing with high urgency items like overnight parts, or after-hours delivery. The ability to communicate a written message from the receiving department to the dispatcher, technician, CSR, parts counterperson, and service writer in ONE message is invaluable.

• Adopt Urgency.

Not everything is a “today” issue. Not everything is a “tomorrow” issue. Some things are. When sharing DATA, also determine and share URGENCY. When a team member from another department expresses urgency…. verify it…then ADOPT it. Just because YOU didn’t get an earful of colorful language from the customer doesn’t mean it didn’t happen. The inability to adopt urgency when it matters is one of the most frequent sources of customer dissatisfaction.

• Use Active Listening.

Active listening is a communication method that is focused and effective. We all have distractions to deal with. Many times, the dealership environment is filled with interruptions, phones ringing, and overlapping conversations. But when it comes to customer critical data, we must listen with intention. Active listening uses a “listen and reflect” method. I don’t listen to RESPOND, but instead, I listen to REFLECT. Every time someone makes a request (in connection with serving a retail or internal customer), you simply repeat the salient points back to the speaker.

Example: Field Service Tech asks a parts counterperson to order a part for a customer:

Parts counterperson responds: “So, what I’m hearing you say, is that Customer XYZ needs a fuel mixer ordered next day air. We will place the order TODAY with the expected installation scheduled for TOMORROW. I will order the part from the supplier. Both yourself and the dispatcher will be notified by me via email when the part arrives. You will retrieve the part yourself at approximately 11:00 AM before going to the customer. If the part does not arrive on the UPS shipment, I will call you immediately with that information. Do I have that right?

• The Critical Eye.

I don’t mean for you to look for things to criticize. On the other hand, if you see something that just doesn’t look right….get out of your silo and SAY something. I don’t care what your role is in the dealership.

Let’s say that you are a receptionist and see a piece of rental equipment being loaded on a truck in the yard. One of the forks looks bent from your vantage point. You should be empowered, encouraged, and even expected to leave the administration silo, walk out to the rental silo and ask a question. Imagine if we all assumed that posture. Regardless of our own silo, if it’s important to a customer, it’s important to us.

• Functional Cross-Training.

There is no substitute for walking a mile in somebody else’s shoes. The perspective gained is enormous because it’s experiential.

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You can talk for an hour telling someone how to ride a bike. Until you actually grab the handlebars and set off yourself…. you won’t get it.

It’s the same story with silos. Live a day or two in another silo and it may be much easier for you to find synergy. Train a dispatcher on placing an emergency parts order. Have a counterperson shadow a field tech for a day. Have the sales manager sit at the transport desk. Let the rental manager actually prep rentals for delivery in the shop. It’s worth it to intentionally experience another silo. Find out the intricacies and the challenges first hand.

Customers are now requiring that we operate seamlessly and that our solutions are unimpeded by the departmental interruption. We can make ourselves the supplier of choice only if we have the processes in place to break down departmental separation and all focus on the overarching goal of serving the customer.

Dave Baiocchi is the president of Resonant Dealer Services LLC. He has spent 39 years in the equipment business as a sales manager, aftermarket director, and dealer principal. Dave now consults with dealerships nationwide to establish and enhance best practices, especially in the area of aftermarket development and performance. E-mail editorial@mhwmag.com to contact Dave.