I still have a few squares to reset, but you get the idea.  It looked bigger before I laid down the tiles but I think it will look very nice once Becky has time to populate it with the outdoor furniture she is likely to acquire.  I am looking forward to putting the huge hammock out there.  I’m not sure how it will look in a few months (smog eventually settles into dirt) but I like the fact that I can take these with me when I leave.  They will be the new garage floor.

I will call this…PROJECT #1 in Shanghai.  I would say the moving twice, unpacking, shipping, finding groceries, meals & shopping locations…not to mention my way around town on my scooter as simply getting settled.  I have so much more to do, but I can see that it can be done.

Becky returns in February so that should keep me on schedule.

Happy Holidays….Merry Christmas!  I’ll be home on the 19th.

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Items I’ve completed in the first 6 weeks:

• Chinese medical physical.  Required to get a residents visa.  Don’t forget to ask about this experience.
• Work Visa
• Residence Visa (note:  I spent 3 weeks without my passport waiting to have both visa processed!)
• Apartment lease agreement
• Opened a Banking account (however you can’t even add money to it without your passport…note — plan ahead)
• Met my Driver (assigned by the Company but optional if you want to change…I like Mr. “Kae” Sun)
• Purchased 2 personal phones & one Company phone all with SIM cards and fully operational
• Installed Vonage & purchased a home phone set
• Bought a new bike (two baskets, one bell)
• Bought an outdoor rocking chair for the patio
• Found a great dry cleaners & purchased a pre-paid discount card so my driver can handle all the laundry
• Found all I would ever need for shopping stores (Carefours mall, Sams Club, Metro groceries, Kerry Center, etc)
• Started Mandarin lessons

As you might expect, I don’t fill my time watching much TV with a new job that seems to be settling down to a more manageable “7am-7pm bring your lunch to work” days.  I’m pleased with the new assignment but obviously blessed to be joining an incredibly competent team already in place.  More on Ford’s progress in APA in future notes, but it should be a fascinating experience.

Next up:  I’ve got to get me one of those electric scooters!

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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.

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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.

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Transitions take time.

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