ODS and ASE have enjoyed a close relationship over the last 3 years delivering Automotive Information systems, analysis and consulting to the North American market. The results of this partnership have been extremely successful for both parties and as such, we have cemented our relationship and created one joint organization, ASE Americas.

ASE’s first class systems for capturing and validating Dealer Network financial data by Automotive Professionals is invaluable to major automotive brands in Europe and Asia. Through ASE Americas these world class systems are now available in North and South America.

Operational Development Specialists (ODS), based in Florida, enjoys a solid reputation for high quality 21st Century expertise, is a go to supplier of Business Management and Operational Intelligence for Manufacturers and Dealers alike. ODS personnel are regularly seen and welcomed in the corridors and boardrooms of the North American markets most profitable and respected brands. As such it was only a matter of time before the providers of the best information systems (ASE) and some of the best analysts and interpreters of information (ODS) came together to form a single entity dedicated to the Americas and its unique market dynamics.

ASE Americas seamlessly turns data into information, and then transforms information into intelligence, supported by high quality analysis that can be utilized by Automotive Manufactures to improve profitability, and manage their Dealer Network’s risk.

Prior to the formation of ASE Americas, ODS was the licensed reseller of ASE systems in North America and have enjoyed extraordinary success during the last 18 months. Garry Palmer, Director Client Services, said “It was only natural to remove the distinction between ODS and ASE in our teams as well as in our clients minds. The fit between our companies is that of a hand in a glove. It goes without saying that accurate and timely information is a must for any business, but without intelligence, data is of little use to the Management. Many times in the past when we were working with clients, the information we would receive from the Manufacturer’s system providers was simply not accurate or reliable enough to base important operational decisions upon; even though in most cases the Manufacturer was paying a high price for it. ASE and ODS are changing this, now clients who utilize ASE systems can count on accurate information validated by Automotive Professionals at a superior value for money. ASE Americas is the only supplier in the industry to supply second level validation performed by Experienced Automotive experts. On our client’s behalf we can now interpret accurate data so as to allow our clients Senior Management and Executives to spend their time discussing solutions rather than deciphering what all the information is showing. Data without interpretation is like Laurel without Hardy.”

ASE plus ODS equals ‘ASE Americas’ and for our clients the benefits are more than simply the sum of the parts.

ASE Americas – Operational Details

ASE Americas is based in Palm City Florida and is equally owned by ASE PLc and ODS LLc and led by Andy Fannin-Church and Garry Palmer. Andy and Garry are both well known and respected in the American Auto Industry.

Current clients of ODS in North America have been informed of the new company and are excited by the stability and benefits this brings to their business.

For more information contact Daniel Palmer (772) 380-4853 or info@aseamericas.com.

We’re always pushing our service advisors to sell every possible opportunity they can find (be it from a walkaround, factory maintenance, or what the technician finds).

We need to examine one specific word: “find”.  In this context, “find” is a verb, indicating some form of action. In our industry, action is an essential element of everyday life, and at ODS, we translate that into the simple word “do”.

For this discussion, and to start your thinking process in the right direction, ask yourself this one question: In terms of finding immediate service sales opportunities, who (in your dealership) is responsible for performing the action we call “find”?

Service Advisors find work every day through walkarounds and visual inspections at vehicle dropoff.

Technicians find work through diagnosis and in-depth vehicle examinations.

Service Managers find opportunities in terms of new revenue generation ideas, efficiency improvements, and expense controls.

Problem is…human nature only compels us to look for things that are of interest to us which might prove beneficial to our work skills or paycheck…and sometimes, work needed on a customer’s vehicle is simply overlooked because it is not advantageous to the Technician to do it, or for the Advisor to sell it, or for the Manager to ensure said work is being “found”.

Sure, you may have a “21-point inspection sheet”…if a vehicle comes in needing work (a necessary job which is excessively complicated and/or time consumptive), what’s the likelihood that item will make it’s way onto the inspection sheet, and then be sold? Moreover, what auditing tools do you have in place to ensure this process happens with every Advisor and every Technician?

I’ll provide a simple example…your battery vendor probably has a tester which they will provide you free of charge (or at little cost) which provides a complete battery test in thirty seconds, provides a printed battery health report as a customer sales tool, and also keeps track of total battery tests performed per week/month, and by whom. Obtain this device, and require 100% battery testing in your shop. Match your monthly car count against battery test count and determine how many opportunities were missed.

You will be astounded how many “shots” are not being taken.

People like to do what comes easily to them…unfortunately, not all opportunities in vehicle repair offer this luxury. All professionals are compelled to “do the right thing” which may not be the easiest, most interesting, or profitable act of our day. However, we discipline ourselves to ensure our area responsibility is covered, and we demonstrate an awareness to ensure repeat business and profit. This awareness must become a “culture” within your shop to ensure 100 per cent of the “shots”…good and bad…easy and complicated, highly profitable and not-so profitable…are taken.

What can you do today to ensure your team takes all of it’s “shots”?

While the final details will be released on July 23rd, here are some of the things we currently know:

• Have been manufactured less than 25 years before the date you trade it in;
• Have a “new” combined city/highway fuel economy of 18 miles per gallon or less;
• Be in drivable condition;
• Be continuously insured and registered to the same owner for the full year preceding the trade-in;
• The trade-in vehicle must have been manufactured not earlier than 25 years before the date of trade in and, in the case of a category 3 vehicle (work trucks 6,000-10,000GVW) must also have been manufactured not later than model year 2001;
• The program runs until November 1, 2009, or until funds budgeted are exhausted;
• The replacement new vehicle’s manufacturer suggested retail price cannot exceed $45,000;
• Dealers are not obligated to register and participate in the program, but those that do must offer the program to any consumer whose vehicle meets qualifying criteria.

How will this be an opportunity for Fixed Operations? Let’s read between the lines:

• Vehicles manufactured prior to July 23, 1984 do not qualify for the program. While most suburban metropolitan areas will have very few of these older vehicles, more will be found in either rural, economically depressed, or low income urban environments;
• “Drag it in, tow it in” vehicles won’t qualify;
• Vehicles currently “up on blocks” won’t qualify;
• A vehicle with defective brakes, a failed clutch, or an engine failure will not qualify;
• “Econoboxes” of all years, makes and models do not qualify—and this is the vast majority of vehicles on the road today — regardless of whether they leak oil, fail safety inspections, or have emissions failures — simply because their fuel economy standards at time of purchase exceed the maximum limit;
• The economic “window of opportunity” is extremely narrow – from July 23rd to November 1st, 2009. Only those prepared to purchase NOW will be able to utilize the program;
• Trade-in negotiation will be virtually non-existent, as the vehicle being surrendered must be destroyed and not resold. Vehicles will only be worth scrap value.

Translation:
The buying public will be very confused about their options, and many will be disappointed when they come to your showroom and learn the truth for their given situation. This provides an opportunity for your sales department to provide a “T.O.” to sell the features and benefits of your Service and Parts operation. Here are some high points to consider in building an action plan:

• First and foremost, decide to have a written-out plan of action agreed to between Service, Parts, and Sales about what you will and will not do. There will be consumers visiting your store looking for a “free lunch” (or something close to it). The consumer looking to trade-in her Honda Accord under the program most likely will be very disappointed when your staff tells her the vehicle does not qualify — and will direct that disappointment at you, not the lawmakers.
• Tread very lightly about the direction in which you assist her (be it through offering a pre-owned vehicle or through your service department). This one action will determine if you build a customer relationship.
• Plan a “Cash for Clunkers Car Care Clinic”. I am certain you are gearing up advertising to take advantage of CARS…add this feature to your plans, and proactively reach out to consumers who might be interested but do not qualify. Set a date and time, an make this a dealership event (from the “assembly line” inspection process to evaluating sales opportunities);
• Now is a good time to introduce the use of weighted-cost averaging and aftermarket parts to both maintain your profit margins while providing a competitive price to the consumer.

Make lemonade out of lemons. Take control of the situation, and make a potential disappointment into a positive opportunity. Build trust and long-term relationships; the profit will follow.

Let me be a bit more specific:

I will not identify a dealer specifically in this example; it is far better that I describe the behavior as fictional amalgam of dealers I have seen over the past couple of years, and call it “Happytown Motors”.

Happytown Motors is anything but happy right now. The economic downturn has caused a slump in new and pre-owned sales because customers are not buying in spite of a massive advertising campaign via mail. Service and Parts sales are also down, although customers are keeping their cars longer.

The Pre-Owned Manager has fresh inventory from the auctions which he runs through the shop for an initial check-over; after he finds out what the vehicle needs, he either fixes it after a client has closed on the sale, or he farms the vehicle out to an independent shop to get the work done less expensively than in the dealer’s facility.

The Parts Manager stocks a small inventory, and uses daily or overnight ordering rarely, if ever. His two largest motivators are obtaining as much return credit as possible, and doing as little paperwork as possible. He would rather lose a sale than lose his buyback credit.

The Service Manager has been fighting with lower-than-usual daily car counts. In an attempt to improve this condition, he has asked the Office Manager to run an 18 month “no transaction” report, and the Office Manager has told him she will get to it…after closing month end…reconciling payables…and filing quarterly taxes.

The Technicians have been squabbling amongst each other regarding the type, kind, and ease of work they have been getting. One Tech has been a “buddy” of the dispatcher, and it seems he gets most of the gravy work.

Does any of this sound familiar to you? I could go on…

The term describing cause and effect of this behavior is called “Empire Building”; namely, a person holding responsibility or control of others seeks to reinforce their power by granting use of their role under circumstances which are of most benefit to securing or expanding their power base.

Um…excuse me…how about some common sense, here:

Aren’t we in business to make a profit and grow the business?
Haven’t you figured out that the rules have changed?
How is this toxic behavior going to keep the doors open?

It would be too easy and too simple to boil this down to a lack of leadership. Managers are paid to lead, whether the Dealer Principal explicitly states it (or not). The focus must shift from “My department first” to “What will secure the business and grow our GP”?

Common sense says no customers = no revenue.
Common sense says no parts = no service sales.
Common sense says broken cars for sale = no cars sold.

Fix it:

Pre-owned: Fix what’s broken. Use your dealership’s shop. Going outside = stealing from the Dealer Principal. You know better…stop doing it.

Parts: Stock what sells. Use daily orders. Sacrifice a few “virtual” dollars for some real sales and GP. Listen to your best customer (the Service Department) and stock what they need.

Service: Eliminate the favoritism. Treat all Techs equally (be it good, fair or bad…just be consistent). Work it out with the Pre-Owned and Parts Managers. Press your Office Manager to either provide the call list, or tell you another way to get it.

Collectively:

Get a dose of reality…being “king of your castle” with no concern for the kingdom will result in your downfall. Drop the artificial barriers and work together for the common goal of keeping the business alive. As managers, you are responsible for the income security of at least two non-employees (dependants) for each person working either with or for you.

What can you do right now…today…to ensure your business’ continued financial success?

What just happened?

Many pundits are pointing the finger squarely at two industry giants, and the list of criminal indictments run the gamut:

• An alleged culture of arrogance and greed became their downfall;
• Products were designed which consumers found lackluster, disinteresting, or not competitive with other vehicles in the marketplace;
• Consumers willing to purchase GM and Chrysler products were rewarded with poor reliability and long-term product quality issues;
• Labor cost (with blame squarely laid at the feet of autoworkers’ unions) unnecessarily drove product sales prices skyward;
• Dealer locations are/were developed at a time when there was no import competition; dilution of the available prospect base (by other brands) resulted in oversaturation of dealerships in a given area;
• Domestic manufacturers paid no attention to state franchise protection laws, making dealer termination virtually impossible.

There are plenty more, and not enough time or space in the blogosphere to present and analyze each one.
We here at ODS continually look forward, so the question must move from “What just happened”? to “What must be done”?
Remember: You may be working in a successful franchise not affected by these events. There is no guarantee this could never happen to you, and (in truth) what affects one of us truly does affect us all.
I have no solution for the manufacturers other than:

• Design products people want;
• Build them with quality and integrity
• Sell them for a reasonable price;
• Support the product after the sale well beyond the warranty expiration date;
• Never, ever, ever think your product or brand is irreplaceable.

For the rest of this audience (most of you being in retail franchises), here are my thoughts:
In the form of a cautionary tale, there is much to be learned from watching your local area deal with franchise closures. Many owners are either picking up new brands or becoming stand-alone pre-owned centers. Some are cashing out…they’ve had enough.
The one thing getting a great deal more attention is Fixed Operations. Non-warranty service of the product line sold before termination is being stepped up (along with “all makes service”); some dealers are offering to shuttle clients’ vehicles to a franchised dealer for warranty repairs while keeping the CP work and loyalty.
In short, it took the collapse of the “Front End” to convince many businessmen that money can be made in the “Back End” in such a manner that the bills get paid and the lights remain on while digging out of this mess.
My question for those dealers in the audience not affected by a termination:
If you’re not following suit to build the “Back End”(while you still have “Front End” profits)…why not?

I’ll bet you can count more than three; some being sole proprietors, while others are national chains.
Ask yourself: “Why”?
More importantly, really think it through. Ask yourself the same question, but in a more reflective manner: “What is going on in my community which justifies an additional repair shop”? It could be your area has seen increased growth, so a larger vehicle population demands an increase in service providers.
If you truly wish to be hard-nosed and critical about it, you could ask yourself the following questions:
“If my shop is not completely stuffed to the gills every day, how could I allow a competitor to open his doors and steal work from me”?
“How did I drop the ball so he could eat my lunch”?
The answer can be (basically) broken down into four categories:
1. Wishful self-limitation: You are a franchised dealer. You specialize in your franchise’s brand. You target market solely to your brand audience, hope they will do business with you, and reach no further. After all, your only competition is other dealer franchises selling your brand…not the
aftermarket; You additionally dislike the complication which comes with setting up and using different vendors, pricing, accounting, and pay plans required to be both competitive and profitable – it’s too much work for such a limited market share;
2. You didn’t see it coming: While development in your area has increased, you are hoping for “converts” to purchase new vehicles from your brand at your place of business;
3. Fear of misdiagnosis: Your techs are brand specialists. They might misdiagnose another manufacturer’s product simply because they don’t know it well;
4. Poor return – on – investment perception: “I won’t do general repairs on other brands that much, so why should I invest in the tools and technology required to capture that market share?
Get this in your head: The world is different now.
• If it has lug nuts and some sort of propulsion system (be it diesel, gas, hybrid, or all-electric) you’d better be able to fix it if you want to keep your doors open.
• Few clients are concurrently product-loyal; ask any client about the other vehicles in their driveway…there’s a high probability they don’t carry the same name badge as the one they brought to you for service today. The other vehicles will still need maintenance and repair. Why can’t your shop do this?
• Your techs all learned the same mechanical principles during their trade school training. They simply need the infrastructure (read: information and occasional tool resources) to effect a proper repair. There is no excuse…a good tech can fix anything.
• Clients open their wallets where they are well-treated. In this economy, clients will spend a thousand dollars today to avoid a three – to – five year car payment;
• You don’t just want your client’s branded vehicle in your shop. You want ALL of their vehicles…and their family’s…and their neighbors.
• The shop that sells tires (meaning, gets the wheels up in the air, off the vehicle, and performs a free safety inspection) wins. All of it. Everything. Sales, gross profit, client loyalty and retention. The whole bag. Don’t want to sell tires? Your client will go somewhere else to get them…along with their brakes, shocks, exhaust work, and oil changes. Let one thing go, and you might as well let it all go.
• It’s time for “empire building” to end between your service and parts departments regarding aftermarket repairs and “who gets what” as far as profit margins are concerned. Adopt weighted-cost average pricing models for aftermarket work, structure your pricing to be competitive in the marketplace, and go after your “unfair share” of the pie.
• It is not a sin to take a little less gross profit in order to capture every possible vehicle in your market area. You must be profitable, but consider your investment in “all makes service” to be just that – an investment in building your store as a brand in the community while capturing and keeping clients away from your competitors.

It’s now three o’clock on Tuesday afternoon, and your service bays are empty…what are you going to do about it?

• An individual (the first generation) with little to no money scrapes and claws his way to success through nothing other than will and determination;
• His son/daughter (second generation) elevates the “family business” to “the next level” through a combination of understanding the parent’s “hunger” and applying his or her education and experience to move the business forward because he/she remembers “those hardscrabble days” of watching mom and dad “sweat it out” about meeting payroll or taking out yet another mortgage on the property to keep the business going. While this is going on, the second generation is giving “the best life possible” to his/her children (the third generation) to both secure the business and keep their promise to provide the child with a better life than the second generation ever had;
• The third generation destroys the business through acts of self-entitlement.

This hit me a little close to home as one of my grandfathers was an immigrant who (in the classic story) immigrated to the US through Ellis Island, NY in 1901, settled in upstate New York, scraped, saved, and owned a grocery store, then (ultimately) purchased and operated a “family vacation ranch” in the Catskill Mountains (similar to that portrayed in the ‘80’s movie Dirty Dancing).

My grandfather had only one child; a son. My father was provided with a life my grandfather only dreamt about in terms of material objects, education and opportunity. My grandfather had the best of intentions…to elevate his progeny’s economic and social class through taking calculated risks.

My father, on the other hand, held a keenly developed sense of self-entitlement. He did not continue to run the family business, opting to take a government job in research (less risk, more security), sold the ranch, and used the proceeds to support my grandmother until she passed away. In our home, he was the first to eat, the first to speak, and the only opinion presented as fact (be it right or wrong).

In my family, the business never got to “second generation” level, much less third.

Some of you reading this are now second generation dealer operators; and, like all of us, you want nothing but the best for your children. The following thoughts are offered with the predication your child(ren) will follow in your footsteps and continue your family dynasty:

• If your child’s passion does not follow the business, do not force it upon him/her.
• Some family members were not cut out to be “Car Guys”, and never will be (no matter how hard you try to shape them);
• Education was not enough for your dad (or you) to either acquire (or take over) the franchise. You earned it through hard work and determination, and it should be no different for your child.
• “Working your way up” while having an income, security, and lifestyle beyond that of an incumbent who is not a family member guarantees failure. Give him/her the same pay plan and living conditions as anyone else who would hold the same job, and do not allow him/her to advance within the company until he/she can demonstrate absolute success in the role being currently held. Do not use a time line (eg. Three months in sales, three moths in parts, etc.). If this means “kick ‘em out” so they make decisions and pay their own way, so be it…you are considering the transition of a multimillion dollar company to another individual, and it should be no different whether that individual is a private party or your child.
• Teach your child to accrue…in all things…save, save, save…accrue for all expenses, save enough to become self-insured, become cash-heavy and solvent. This financial independence will be an absolute necessity for the third generation to pass onto the fourth…or to get out if the manufacturer terminates.

The business is changing right before our eyes for better or worse. Survivors always have vision, a plan, and the cash to back it up. We here at ODS are always ready to help either develop or evaluate your plan forward. Please contact us if we may be of assistance.

1. This blog is not a debate about who won, lost, or why.
2. For anyone confused about the subject matter, please refer to the blog title.

I am not one for war movies as entertainment. Cinematographers and screenwriters have historically participated little in actual combat; if they did, few war movies would be made, if any.

This movie tells many stories on multiple levels, and I highly recommend viewing it as a learning tool in spite of the graphic realism of combat.

For those not familiar, the story centers around development of airmobile cavalry (helicopter-based combat troops) in the Vietnam war. The man tasked with developing this concept is Lt. Colonel (now retired Lt. General) Harold G. “Hal” Moore, portrayed by Mel Gibson.

Col. Moore developed the aircavalry combat technique, trained his men, and also led them in battle during the first direct fight between US Army forces and those of the Peoples’ Army of Vietnam during November, 1965.

Col. Moore’s leadership, combined with solid planning and extensive training, resulted in battlefield survival for the US troops in what otherwise would have been a slaughter. Although both sides saw this event as a victory, Moore’s troops were outmatched by a ratio of 5 to 1.

Col. Moore had an axiom which he would instill in his troops:
“There is always one more thing you can do to improve your odds of success”.

And it’s true. But it means nothing to the individual unless the message inspires them to reach for that goal.

So…how do you inspire?

Ask yourself these questions:

• Do I lead by example?
• Do I show up on time for work, ready to go, properly dressed & with the right attitude?
• Will I do anything I would ask my staff to do for me?
• Have I done it, and have they seen me do it?
• Do I check on the welfare of my staff, and let them know I appreciate them?
• Does each member of my staff have clearly defined job objectives?
• Does each member of my staff understand the focus of our overall objectives?
• Does each member of my staff fully understand where they “fit”?
• Does each member of my staff understand how both what they do (and what they fail to do) effects the accomplishment of our overall objective?
• Does my staff receive ongoing training to ensure fluid accomplishment of our objectives?
• Are my staff’s Key Performance Indicators (KPI) measured and communicated every day?
• Are my staff’s thoughts and ideas included when making process improvements?

If you answered “yes” to every question above, congratulations on your insight and leadership ability. Keep up the good work.

If you answered “no” to any…just one…you have some work to do…starting with yourself.

Whether you know it or not, you set the example anyway…be it at work, with your friends, or at home with your family. In short, you are THE role model…like it or not.

Does what you are doing now reflect how you want things to be? If not, what are YOU either doing or failing to do which has things as they are right now?

Leadership is not a “once in a while thing”…it’s an “all the time” thing. You should want an organized, empowered staff. You should want cross-training. You should want job security for your team not out of fear and compartmentalization, but out of job efficiency and fraternity. Your environmental culture should be a great place in which to work, with little chaos to face after a week’s vacation.

How do you stack up?

I am optimistic. Yes, you read that correctly. My reasoning for this viewpoint is rooted in another dark time of US history: World War II.

Prior to United States involvement, my grandfather was an assembly line worker for one of the “big three”, and like every able-bodied male, he attempted military enlistment immediately after Pearl Harbor. Having been determined medically ineligible, he went back to the assembly line and found out new vehicle manufacturing had ceased to produce war material.

My grandfather saw an opportunity; namely, no new vehicles being manufactured meant present vehicles on the street would be kept longer and require more maintenance and repair. Sacrifice, both personal and financial, would also come. He took his savings, opened a repair shop, and was extremely prosperous in his hometown. At it’s peak, he had twelve bays and three “counter people” (they were not called “service advisors” at that time). The shop took in everything (and anything) with some sort of engine needing repairs.

If you couldn’t get it to the shop, he would either come get it, or come to you and work on-site; if he didn’t have the resources, he would find them; if he couldn’t do it (which was rare), he wouldn’t charge you.

He also had a large sign he had created from a rough-cut plank from the center section of a hickory tree which hung above his front counter. The sign’s message faced away from customers, but was readable by staff. Carving wood signs with a router was a popular hobby at the time, and my grandfather cut this inscription:

“If you make their phone ring, yours will ring. If you don’t, yours won’t”.

Sound words of advice which remain unchanged from almost seventy years ago.

The US is now in a similar situation; a country in military conflict not selling new vehicles. The paradigm of Fixed Operations (meaning, Service and Parts) being a necessary evil in order to sell vehicles is rapidly being replaced with the “romantic understanding” these business units keep the lights on and doors open.

To those not involved in Fixed Operations who have finally learned the truth about this concept, I make two simple requests:

1. Don’t forget the friends who stuck with you when times were hard.
2. Give us the resources we need.

For those of you “in the trenches” of Service and Parts, I make these suggestions to do your part for the overall success of your store:

1. Time for a mental overhaul. Being successful in this situation is going to require more sacrifice and dedication than you are used to. This means more everything; more hours at work, more market research, more pricing analysis, more, more, more. Get used to this idea. Put in the time. Remember: right now, you have a job while many do not. The same goes for your staff.
2. Square your house. Parts inventory aging towards 180 days? Fix it, free up the cash, and buy items that sell. Dirty cores? Send them back. Outstanding receivables? Collect them. Uncollectable? Turn over to a collection agency. Outstanding warranty claims? Get them paid or write them to policy. Nothing past 30 days on the schedule. Work in Process? Get it done or close the RO. Once again, nothing past 30 days. Open ROs? Nothing over 5 days. Take the pain and get it over with, then vow never to go there again.
3. Understand your clients. Fast food chains have customers. You have clients. Value them. Remind them of what they need. Remind them of what they choose to decline. Tell them you appreciate their business. Call and follow-up, follow-up, follow-up. Ask yourself: “Why should they do business with us over someone else”? Improve on your strengths and work on your challenges while remembering you need them…not the other way around.
4. Do your homework. Do your market research. Get your pricing right.
5. Enforce controls. No discounting without authorization; similarly, cut expenses wherever and whenever you can.
6. Quit whining, and kill the sacred cows. There is no “entitlement” to any one person or department for profit, time, expenses, or compensation (except where required by law). Remember: part of something is far better than all of nothing.
7. Set goals and communicate them. Learn how much your facility is capable of generating (facility utilization). Determine what you can do with your current resources (clients, people, parts, processes) and maximize your opportunities.
8. Measure, measure, measure everything. Adjust your sails with the wind.
9. Share your successes and challenges. Meet with your staff every day. LISTEN. Praise success and discuss challenges. Blame never fixed a problem; action does.
10. Embrace your inner (phone) voice. See my grandfather’s message above. Build trusted relationships with your clients.

We at ODS live by the creed of “Profit by Action” which may be summed up in one word: DO. What appears above may look like a mountain to climb; feel free to contact us if you would like help reaching the summit.

Rob Palumbo is a Senior Consultant for ODS LCC

Apparently, there are some in our industry who only pay lip service to it, thinking the disgruntled consumer will merely “go away” with no further complication.

Right.

We now live in a world where information is as close as an internet connection, and anyone with access to a web camera and multimedia publishing software (available for free) can voice their opinion about anything and find a place to display it (or buy a website and do it themselves).

The power of this influence must not be overestimated. Recently, a woman plead “not guilty” to her culpability in the suicide of a teen girl after allegedly having created the online persona of a teen boy who showed interest in a relationship. This “persona” ultimately rejected the girl in a very harsh manner, and the girl took her life as a result of the rejection.

It is alleged that the teen boy was a work of pure fiction brought about by the accused, her daughter, and several friends as means of revenge for comments made on a social networking website.

Regardless of your opinion on this matter, one fact rings true:

Perception is a strong motivator.

Consumers are also harnessing this power to sway public opinion against businesses which (in the consumer’s eyes) have wronged them. Our industry is a prime target because the historical perception has not been a good one. All a disgruntled consumer need do is buy a web address (usually less than $10), write their story in a multimedia program, upload to the web, and get listed on a web search engine.

I have viewed more than a few of these sites, and (factual or not) some common threads emerge:

1. The consumer patronized the business looking for a product or service;
2. Something went terribly wrong.
3. In the consumer’s eyes, a satisfactory resolution either did not happen, or did happen only after excess time lapsed or additional expense was incurred;
4. The consumer developed a perception that their patronage was not valued by the business;
5. The consumer obtained no assistance from the product manufacturer;
6. The consumer sought and obtained help from a competitor;
7. The consumer publishes their experience in a public forum and excoriates the business who (in their opinion) “did them wrong”.

Can your business afford this “bad PR”? Of course not.

Can you keep it from happening? Not “100 percent” of the time, but you can minimize it by:

• Establishing a robust problem resolution process in your business, with clear guidelines for levels of responsibility, decision authority, and empowerment at all levels;
• Ensure this process is seamless and transparent to the consumer. “Own” the problem (as you own the consumer relationship) until either the problem is resolved or your level of empowerment has been exhausted (at which time the problem—not the consumer—is escalated);
• Give absolute priority to consumers requiring problem resolution. Further delays will only make matters worse;
• Never, ever leave consumer voicemail or e-mail messages which are less than professional, even if you think they are deserved. Remember: there is no “off the record”, and “anything you say can and will be used against you in the worst way possible” in the court of public opinion;
• Be honest. Admit your mistakes. Apologize, move forward, and gain the respect of the person you are trying to assist;
• Analyze “where the ball got dropped” and correct any shortcomings for the future;
• Let the consumer know you appreciate their patronage;
• Follow up with at least two phone calls spaced two weeks apart to ensure the problem is permanently resolved.

This is not “giving up” or “giving in”, and I do not endorse making concessions where both parties don’t emerge with a “win”. There will always be that “less than one percent” believing the world owes them a favor.

Characterizing all “problem consumers” in this manner can have strong repercussions when (in actuality) the “99 percent” are merely seeking to have their needs met and move on with their lives.

What can you proactively do to ensure your business is never the subject of hostile web site?