DeLaval Sales & Marketing Level 100 V3

1. Introduction to the Tiered Curriculum (TCA)

The intent of this workshop is to begin your training as part of the Tiered Curriculum Approach (TCA). TCA will increase or upgrade your effectiveness as a Sales and Marketing Leader resulting in a professionally operated department that is customer-focused, efficient, and profitable.

Level 100 is the foundation of the TCA approach - it is the first of a building block approach that provides a path for new managers who progress to higher levels of performance. Each program is consistent in approach and personalized to each person’s needs. For some, this may be your first time as a manager and no prior experience is assumed. Others may have management experience but not as a Sales and Marketing leader and/or as a manager in an Equipment dealership.

The focus of TCA is “How to Get it Done” – meaning that the emphasis throughout your training is how to get the work of your department done through the people that you hire and coach. A Balanced Dealership combines People, Processes, Planning, and the use of Best Practices to make a significant difference in the operation and performance of your department, resulting in meeting the key Parameters of creating repeat customers and generating a high Return on Assets.

Tiered Curriculum Training Model

Continuous Training Process

Tiered Curriculum Approach provides different, progressive levels of training that provide a path for your continuous training.

Level 100 provides the basic foundation for new Managers“The Foundation”

• No previous management experience is assumed.

• It focuses on emerging leaders who are new to their position or desire to gain that position.

• Explanations are provided for the basics parameters and processes for Financial Productivity and Management.

• Department leaders train together so they each learn the basic of each other department.

Level 200 is the Intermediate Level –“For Development”

• It assumes that participants have progressed from Level 100 or have placed out).

• Participants should have a minimum of 6 months in their position.

• It focuses on all of the areas that either a Sales Leader, Marketing Manager, Service Manager, or Parts Manager needs to succeed in effectively running their department.

Level 300 is the Advanced Level –“For Proficiency”

• Participants should be experienced Managers in their function of the business.

• It exposes them to leading-edge or new business practices or technologies.

• Level 300 training prepares the leader to become a strategic planning leader of the business.

Between each training level, participants should take advantage of other training, including online. Machinery Advisors Consortium advisors will conduct periodic virtual training sessions with graduates to ensure the use of these leadership skills.

2. Action Planning and Forward-thinking

“How to Get it Done” means making plans and then implementing them. There are three types of Action Plans to be done by the end of this workshop, and to be implemented by your participation at the Level 200 training.

1. Financial Action Plans

• What your Department should do to improve to retain customers and improve Return on Assets (ROA);

• Understanding how your dealership stands up against best in the class financial performance of other dealers in the same industry

2. Employee Coaching Plans

• What you can do with one or two employees to coach them to better performance;

3. Individual Action Plans

• What you as a developing Sales and Marketing leader should do to be able to develop and improve;

• May include other things like tracking your time, taking Web-based training, 3rd party training, or just doing things differently.

At the next level of training, you’ll be asked to share your progress on these plans.

Your Engagement is Important!

The purpose of this training session is to help you to improve your ability to make your dealership more successful. We commit to you that we will:

• Help you make good use of the time you invest in this training.

• Focus on skills and knowledge that will help you in your job

• Be open and responsive to your questions and concerns.

Exercise 1: Introductions Using Dealer Websites

Review your paired classmate’s website as a guide and make an introduction. You will introduce your partner in this exercise

• Name, background, & your contribution at your dealership.

• Identify the dealership’s Vision, Mission, and Values from the website presentation.

• Identify something you might consider replicating at your dealership.

Write down your thoughts

3. Workshop Ground Rules & Content

A. Parameters, Leadership & Financial Approach

Leaders develop the Vision, Mission, and Core Values of the business. Managers work in areas of Who perform a specific task using established Processes in a defined Timeframe.

Exercise 2: On a Post-it Note, Identify the three Best Leadership Characteristics of Your Best Boss Ever.

To prepare for the Tiered Curriculum Approach training initiative, DeLaval commissioned a dealer financial survey from the dealer organization. This survey will serve as a guidepost and a benchmark for all dealers to compare their performance against the standards of high-performing dealers.

5.

Financial Terminology from Income Statement & Expenses

6. Ten Basic Financial Terms / Income Statement & Balance Sheet

1 - Sales/Revenue: The number of products or services sold.

2 - Cost of Goods Sold (COGS): A measure of how well a company controls the cost of purchasing the goods or services it sells. It is determined by the invoices received less discounts (Parts), or by the amount of Technician wages paid (Service) the higher the gross profit margin is, the better the company is thought to control its purchasing costs.

3a - Gross Margin/Profit: Sales/Revenue less COGS

3b – Gross Margin %: Gross Profit divided by Sales/Revenue

4a - Expenses: All of the costs associated with running the dealership. Remember that the cost of Technicians is in Service COGS.

4b – Expense Ratios: Department Expenses ÷ Department Revenues

5a - Net Profit/Income/Returns: Gross Profit minus Expenses. The net amount one makes “The Bottom Line”. It answers the question: How much money are we making running the business?

Also is the numerator for ratios whose names begin with return on, such as Return on Sales,

5b – % Return on Sales: Net Profit ÷ $ Total Revenue/Sales

6 - Absorption: The percentage of the total dealership expenses covered by the Gross Profit of Service, Repair Parts, Consumables, and must of the time “Other farm” Departments. The word comes from the idea that the GP of recurring revenue (Service and Parts) can ‘absorb’ the total Expenses of the dealership.

7 - Sales Contribution: The percentage of Revenue that each Department contributes to the total Dealership Sales. Department Revenue/Sales ÷ $ Total Revenue/Sales

Balance Sheet

8 – Asset, Liabilities, Stockholders Equity/Retained Earnings

9 - Return on Assets: Net Profit divided by Total Assets employed in the business.

10 - Turns: Indication of how well the inventory ‘turns over” during a period. This calculation is the number of times the shelf stock is sold and replaced. It is calculated by dividing total Net Sales in a period by the Average Total Assets used to produce the Sales.

DeLaval Financial Survey Documents

7. Financial Data Summary Group Comparisons

8. Benchmarking from the Dealer Financial Survey

Benchmarking the DeLaval Financial Survey enables the dealer to compare personal performance against a standard established by the higher performing dealers in the survey.

Each dealer will have the opportunity to measure themselves against prior performance, measure themselves against an average of their peers, and then against the best-in-class dealer performance.

Source: Richard Stewart, AED Cost of Doing Business Study, 2023

9. Service Department Profitability & Absorption

Service Department gross profitability is a key factor of success in the equipment dealer. Productivity or recovery of technician costs by customer billings is a key to expected department profitability.

B. Processes and Market Responsibilities

10. Nine Responsibilities of the Sales and Marketing Leader

The Dealerships Brand is captured in the Brand Promise. The actions of the dealership sales and marketing departments are guided by the promise the dealership’s brand makes to the customer. The promise needs to be consistently delivered from pre-purchase through post-purchase actions. An extraordinary customer experience is delivered in the brand promise.

Exercise 3; Circle one action in each of the three segments above illustrating what your dealership delivers the best in your Brand Promise I.e., Videos, Return on Investment, Service Experience. One from the yellow Pre-purchase, one from the orange Purchase, and one from the blue post-purchase segment.

Time Management is a key accountability of the Sales Leader. Identifying the 10 –12% of customers and prospects that comprise 70 – 80% of the available market is important to the success of sales and marketing organizations. More intense focus and attention are directed at the customers in this market segment.

A one-week dairy salesperson scoring system could look something like the illustration below. (Source: DeLaval Sales Team)

Customer Relationship Management (CRM) is a disciplined management system to document interactions between current and future customers. CRM uses data analysis of historical customer interactions to build relationships, focusing on customer acquisition, retention, and driving sales growth. Systemic, professionals utilize a defined account management that interacts with current customers and prospects in a controlled manner. One of the significant benefits of a CRM is efficient and systematic time and territory management.

9. Personal Time Management is essential for every Sales and Marketing leader to devote time to work “on the business versus in the business in a routine manner.” Every leader needs to continue to develop their skills by creating a personal plan for development.

Exercise 4: Self-evaluation of Marketing & Selling Leadership Skills

Exercise 5: Day One Homework

A SWOT analysis is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats associated with a business, project, or any other endeavor. The acronym SWOT stands for:

1. Strengths: These are the internal characteristics and resources that give an entity a competitive advantage over others. Strengths can include factors such as a strong brand, skilled workforce, superior technology, efficient processes, or unique intellectual property.

2. Weaknesses: These are the internal factors that put an entity at a disadvantage or hinder its progress. Weaknesses can include aspects such as lack of expertise, limited financial resources, outdated technology, poor reputation, or inefficient operations.

3. Opportunities: These are external factors in the business environment that can be leveraged to benefit the entity. Opportunities may arise from market trends, technological advancements, changes in consumer behavior, emerging markets, or new partnerships and collaborations.

4. Threats: These are external factors that may pose challenges or risks to the entity's success. Threats can include intense competition, economic downturns, regulatory changes, disruptive technologies, changing consumer preferences, or potential lawsuits.

The purpose of a SWOT analysis is to identify the internal strengths and weaknesses that need to be optimized or addressed, as well as external opportunities and threats that need to be capitalized on or mitigated. It provides a comprehensive overview of the current situation and helps in formulating strategies and making informed decisions to achieve goals and objectives.

Exercise 6: Record five takeaways from today’s discussion that will assist you when to begin to create a personal development plan at the conclusion of the Level 100 TCA Sales and Marketing course.

1.

2.

3.

4.

5.

C. People in the Organization

11. Leadership Responsibilities to the People

12. Seven Transformative Principles to Leadership Style

The highest complement that you can pay to your employees is to demonstrate an investment in developing them to their next highest potential.

One best practice of achieving that development is to discuss SMART developmental plans for your employees under your care. SMART goal setting is described below.

Example: In the first quarter of 2024, I will have completed a performance review with all employees in my department that will align each employee with the vision, mission, and values of our company with a training plan for development to be completed by each employee in the first nine months of the year.

Exercise 7; Write a SMART goal for your work for the balance of the year.

D.

14. Account-based Marketing Approach

Account-based Marketing (ABM) is a strategic marketing approach that focuses on targeting and engaging specific individual accounts or dairies rather than a broader audience. ABM involves tailoring marketing efforts to meet the needs and preferences of key accounts or high-value prospects.

In ABM, marketers identify a selected group of targeted accounts based on various criteria such as dairy size, revenue potential, share of wallet, and strategic importance to the dealer. The Marketing and Sales leaders collaborate closely to create personalized and highly relevant campaigns and messages for each dairy account. This approach aims to deliver a more personalized and targeted experience for the decision-makers within the targeted accounts.

Operational Excellence (OE) is a business management philosophy and approach that emphasizes the ongoing improvement and optimization of processes, systems, and practices within a dealership. OE aims to achieve the highest level of efficiency, quality, and productivity across all aspects of your operation.

Key principles of OE include continuous improvement, standardization, process optimization, data-driven decision-making, employee engagement and customer focus.

Continuous Improvement

Process Optimization

Employee Engagement

Standardization

Data-driven Decisions

Customer Focus

1. People

2. Processes

3. Technology

E. Personal Development

Closing Exercise 10 ~~~ Part One

16. Planning for Tiered Curriculum Approach Level 200

In the next ten months, you will be invited to participate in the second level of the TCA training program. Participation in the Level 200 program will prepare you to be a successful leader of your Sales and Marketing organizations.

The Balanced Dealership Approach of TCA

17. Suggested Reading, A Leadership Library