Posts Tagged just sayin’
Posted by "Just Sayin'..." in aumotive after-market, Authors, Auto Glass, Business, Business Icon, conferences, Credibility, Disruption, Disruptive Innovation, driverless car, Ford Motor Company, General, Innovation, Inspire, OEM, Service, Technology, U.S., U.S. Govt., Uncategorized on September 12, 2016
Over the last few months I’ve had the opportunity to listen to a number of amazing speakers at conferences. Each speaker had a great message tailored to the audience and each offered a look into their area of expertise; offering advice that was meaningful and relevant to the industry audience that was listening.
At a conference held earlier this year I listened to keynote speaker Ron Insana, award-winning journalist, financial analyst, commentator and author. His ability to examine and offer analysis of past and current world events, be they political or business, that have shaped or shape the decisions made by politicians, businesses and individuals was amazingly insightful. Ron spoke of how those in attendance could also look at those same events to determine the direction that we lead our respective companies. I had the opportunity to spend time with him at breakfast prior to his keynote and his engagement and interaction with those of us at the table provided a great experience.
I attended a conference in May that had a number of great speakers. One was Brad Grossman, Chairman and CEO of Zeitguide. Zeitguide was founded in 2009 and provides a unique view into our ever-changing world. Zeitguide utilizes people from around the globe to “find, filter and focus” on the abundance of information that exists to provide context to all that is going on today. More importantly, Zeitguide provides crucial understanding as to what is going to happen in the future that will determine the direction an industry make take. Mr. Grossman’s talk was as inspiring as it was insightful.
Another speaker at this conference was James Spellos, President of Meeting U. Mr. Spellos talked about the importance of technology and how technology is driving or should be driving your business to the greatest success imaginable. His discussion of the use of existing and innovative technology was highly entertaining. Spellos mentioned a former Google CEO’s quote, “we create as much information in two days now as we did from the dawn of man through 2003”. As he walked through the audience answering questions posed to him he was offering countless suggestions and ideas to more effectively use information, technology and devices, but wisely.
At a conference in June the keynote speaker was Sheryl Connelly who, for the past decade has been Ford Motor Company’s Futurist. What does a futurist do? By definition she’s looking for trends. What events, conditions or insights that can be gleaned by scouring the globe for what’s happening now that helps Ford be a leader in its industry for the very long-term. For Ford, Ms. Connelly’s insight provides them another view into the strategy they could follow, the shape of the design of their vehicle platform that will find the greatest acceptance in the market and the products or technologies that will be offered in Ford vehicles well into the future. She’s not looking at the auto industry to determine the future but the social, technological, economic, environmental and political events (or “steep” as she terms it) that will affect our lives in the next 10 to 20 years. Ms. Connelly’s talk gave me a different way to think about what I could be looking at to determine what could affect my future.
At a recent conference this month I had the opportunity to listen to Bernie Brenner, author of The Sumo Advantage and Co-Founder, Chief Strategy Officer of TrueCar, Inc. He spoke of the importance of business development (BD) in the future of any business, regardless of size, to drive strategy and indirect revenue (future revenue). He offered ideas to utilize BD to form strategic partnerships with industry heavyweights that can help build and sustain your company’s growth. Bernie’s directness and openness at the conference, in his presentation and while interacting with attendees, was both refreshing and inspirational.
Next month I’m attending an industry conference where the keynote speaker will be David Robinson (The Admiral), a graduate of the U.S. Naval Academy, a U.S. Navy veteran, an outstanding player in the NBA (1989-2003), a humanitarian and a partner in a private equity firm (Admiral Capital Group). I’m looking forward to hearing him detail his experiences and advice on how to achieve success in business and life.
If you have an opportunity to attend an industry conference don’t miss out on listening attentively to the keynote speakers. They typically have amazing backgrounds and experiences to share. Each speaker I listened to this year offered insight which I could use to improve myself in both my business and in my personal life. So I would highly recommend that when given the chance to register and attend conferences in your industry do so. Then take the time to listen to those that the conference organizers have selected to speak. They’ve been chosen to speak for a reason. I’ve found them to always have great messages.
automotive safety, Bernie Brenner, Brad Grossman, conferences, David Robinson, James Spellos, just sayin', keynote speaker, keynote speakers, NBA, Ron Insana, Sheryl Connelly, Small business, speakers, state govt., Technology, U.S. Naval Academy, U.S. Navy, US Govt, veterans, Zeitguide
Posted by "Just Sayin'..." in Acquisitions, aftermarket, AGRR, aumotive after-market, Auto Glass, Auto Glass Networks, Autoglass, Business, Business Icon, Call Centers, Disruption, Disruptive Innovation, Economy, General, Insurance, Leadership, recipe for success, Retail, Service, Success, U.S., U.S. Govt., Uncategorized, United Kingdom, USP, Windscreens on February 26, 2016
Twenty years ago today the United States subsidiary of Belron International Ltd. (Belron) operating under the trade name of Windshields America (WA) merged with Joe Kellman’s U.S. Auto Glass (USAG)/Globe Glass & Mirror (GG&M) companies to form a company named Vistar. The second and third largest automotive glass repair and replacement (AGRR) businesses merged on February 26, 1996. If memory serves me WA had 274 stores in 43 states and the retail arm of Kellman’s two companies, GG&M had approximately 200+ locations in maybe 20+ states. USAG was the network call center arm of the business covering all 50 states. The merger provided Belron with a majority shareholding in Vistar, but management control fell to USAG/GGA. WA had annualized sales at the time of approximately $ 225,000,000+ and USAG/GG&A had annualized sales were approximately $ 200,000,000+ so as one sales totaled $ 425,000,000+ with approximately 500 store locations.
At the same time Safelite Auto Glass (SAG) was the largest AGRR company in the United States both in the number of stores and total sales. SAG had well over 500 stores and sales of approximately $ 500,000,000+. So if you had been able to combine the largest AGRR company together with the second and third largest AGRR company’s sales would have been over approximately $ 925,000,000 in 1996. A very tidy sum by anyone’s measure. The race was on two determine who could become the true market leader in the United States AGRR industry.
Lo and behold just two and one half years later on December 17, 1997 the shareholders of Vistar and SAG decided that they could achieve their market goals better together than apart so they agreed to merge. SAG at the time was owned by the Boston based private equity firm Thomas H. Lee Partners. When the merger took place Belron received the largest shareholding followed by Thomas H. Lee Partners and Joe Kellman. After the merger Vistar was absorbed by SAG with SAG and Thomas H. Lee Partners holding management control.
As you would expect, when in just 1 year 9 months 21 days the three leading companies in any industry merge, attempting to bring together three distinctly different cultures would be a big challenge. Especially when the largest and smallest shareholders of the new SAG didn’t have management control even though they had considerably more experience in operating AGRR companies than the shareholder with control. I’m not going to delve deeply into what happened next, but the newly formed company lasted just 2 years 5 months 23 days before heading into bankruptcy via a Security and Exchange Commission filing on June 9, 2000. As reported at the time a SAG spokesperson said,
“In papers filed in U.S. Bankruptcy Court in Wilmington, Delaware Friday, Safelite, based in Columbus, Ohio — with 500 U.S. locations — listed $ 559.2 million in assets and $ 591.4 million in debts. A spokeswoman for closely held Safelite, Dee Uttermohlen, said the Chapter 11 filing was related to a debt-load from an acquisition three years ago–but added that the company has been renegotiating debt with creditors.”1
So with that bit of historical background of the two mergers that took place in 1996 and 1997, along with the fallout from those mergers with the subsequent bankruptcy in 2000; I read with interest the 2015 financial results released by Belgium based D’Iteren n.v., majority shareholder of Belron International (and its subsidiary SAG). SAG’s 2015 sales, as per a SAG press release from February 3, 2016 (follow link), are $ 1,500,000,000 ($ 1.5 BILLION). That certainly sounds like a lot of sales doesn’t it?
Looking back to the total sales of WA plus USAG/GGA plus SAG in 1996 ($ 925,000,000+) and reading the sales that was reported today for SAG (remembering that the company now comprises WA, USAG/GGA and SAG) I found it surprising. Very surprising. DollarTimes.com calculates the value of a dollar in one year and adds the cost of inflation to determine that value to today’s dollar. Using the DollarTimes calculator you will find that $ 1.00 in 1996 would equate to a value of $ 1.54 today. The site shows an annual inflation of 2.18% or a total inflation of 54.09% over the past 20 years. When you calculate the 1996 value of $ 925,000,000, today’s value is worth $ 1,425,313,518. So when you look at SAG’s reported 2015 sales against the 1996 sales you see a real growth of 5.24%.
There has certainly been a lot that has happened in the AGRR industry in the United States over the past 20 years. While SAG has faced a number of challenges over the past 20 years they have always come out somewhat unscathed. Bankruptcy, legislative issues, what have you they seem to always come out on top. But in real dollar growth they’ve seen a 5.24% increase in sales. Seems small doesn’t it?
But arguably there is a problem if you only look at the growth in sales dollars over the past 20 years. Sales figures really don’t take into consideration calculating the effect of the large increase in windshield repairs that existed in 1996 versus today. Nor does it take into consideration the price compression that was wrought on the industry in the late 1990’s and early 2000’s by the insurance industry. Determining what those two factors have in the calculation of real sales growth is difficult as it requires you to look at both the industry’s and SAG’s 1996 mix of products sales and customer versus that mix today. SAG and Belron unquestionably know what those factors mean to the performance of the company, but I’ll leave that for speculation and debate by you.
In my looking back over the past 20 years I’m taking a positive spin as you can see that today there are competitors both old and new that are busy chasing SAG. Be they local, statewide, regional or national competitors; there are countless companies working hard to take on SAG and its position in the AGRR space. There are AGRR retailers, alliances, networks, collision and glass companies, internet platforms chasing after consumers, insurers and commercial customers alike that need the services that the AGRR industry provides. Competition abounds and although it is always difficult to take the throne from the market leader, you’ve got to continue to try at the local, statewide, regional or national level if you want your company to find success in the industry with you’ve chosen to compete.
So when you look back 20 years ago to today at the AGRR industry and at what the landscape was like then versus what it is like today, what comes to my mind is a joke about a pony attributed to President Ronald Reagan.
“Worried that their son was too optimistic, the parents of a little boy took him to a psychiatrist. Trying to dampen the boy’s spirits, the psychiatrist showed him into a room piled high with nothing but horse manure. Yet instead of displaying distaste, the little boy clambered to the top of the pile, dropped to all fours, and began digging. ‘What do you think you’re doing?’ the psychiatrist asked. ‘With all this manure,’ the little boy replied, beaming, ‘there must be a pony in here somewhere.'”
I admit that I’m an eternal optimistic and I always see the pony in the room, but I think that opportunities abound for those who want to take on any leader in any industry. Never give up. Never.
1. Desert News article titled “Safelite Glass files for bankruptcy after listing $591 million in debts”
Aftermarket glass, AGR, AGRR, agrr industry, auto glass, Auto Glass Company, auto glass industry, Belron, D'Ietern, glassbytes, Globe Glass & MIrror, Insurance, Insurance Industry, just sayin', safelite, safelite auto glass, safelite solutions, Small business, state govt., US Auto Glass, US Govt, Vistar, windshield, windshield repair, windshield replacement, Windshields America
This past Friday, while attending an automotive aftermarket conference (Auto Glass Week 2015); the keynote speaker was business icon Jack Welch. Instead of giving a speech, he answered questions from the audience for almost an hour and a half. Jack Welch in person is what I expected him to be. He’s certainly not afraid to answer any question asked and I found myself nodding and/or clapping to each of his answers. In a world of political correctness it was refreshing to know exactly what Jack’s position was on any question that he was asked.
Photo Courtesy Auto Glass Week™ 2015
It didn’t matter whether the question was related to business, education or politics; he answered every question without hesitation. Jack’s view on business is all about winning. All about transparency. All about honesty. Telling those that worked for him when he was the CEO of General Electric for 84 consecutive quarters that the business they worked at needed to be either number one or number two in the world or figure out quickly how to become number one or two or the consequence would be that the business wouldn’t be a part of GE.
Jack isn’t big on tenure in education either. He believes that the customer should determine whether a professor or teacher is good or bad and whether they should stay or go. With the cost of education so high there is no room for mediocrity at Jack Welch Management Institute.
In politics Jack is a Republican.
After he took questions from the audience I had the opportunity to sit on an industry panel consisting of him, along with panelists from the automotive industry:
Paul Heinauer, President of Glasspro Inc.
Troy Mason, President of Technaglass
Michael Schuch, president of XLNT Window Film Tinting
Donna Wells, Vice President of Signature Shutters
Ed Golda, president of Michigan Glass Coatings
Suzy Welch, renowned bestselling author, television commentator, Harvard Business School graduate and who also is Jack’s wife, was the moderator of the panel. It was an amazing experience where the panel answered questions posed by Suzy and the audience. Everyone answered questions including Jack and then he provided further commentary on the answers that were given.
Photo Courtesy Auto Glass Week™ 2015
There isn’t much you can say about Jack Welch and Suzy Welch that hasn’t already been written so I won’t try. I can only say that the two of them make one heck of a team and are about as down to earth as you can be. In this day it was refreshing to see two people who didn’t hold back in answering questions.
It was an honor meeting them both and sitting on a panel with them was certainly an experience that I will never forget. Thanks to them both for the chance to spend a few hours with them last Friday. And thanks to Deb Levy for inviting me to join the panel.
Aftermarket glass, agr industry, AGRR, agrr industry, auto glass industry, Auto Glass Week, Auto Glass Week 2015, economy, federal govt, GE, General Electric, glassbytes, glassBYTES.com, Jack Welch, Jack Welch Management Institute, just sayin', JWMI, Small business, state govt., Suzy Welch, US Govt
Posted by "Just Sayin'..." in aftermarket, AGRR, aumotive after-market, Auto Glass, Autoglass, Business, Call Centers, Collision Repair Industry, Disruption, Disruptive Innovation, distrigution, Economy, Fortune 500, General, Innovation, Insurance, Leadership, PGW, PPG Industries, Programs, recipe for success, Retail, Service, Software, Solera, supplier, Technology, Third Party Administrator - TPA, USP, Windscreens on October 19, 2014
For me, listening to keynote speaker Tony Aquila, CEO of Solera Holdings, Inc. at Auto Glass Week in Baltimore was most interesting. He led Solera’s purchase of LYNX Services, GTS and GLAXIS from owners Pittsburgh Glass Works LLC and PPG Industries, Inc. earlier this year. Tony’s accomplishments are considerable, especially considering that he grew up sweeping floors working in his uncle’s body shop and he has a 9th grade education. You have to be incredibly impressed by the guy.
The “Strategic Focus” web page for the company states, “Solera is the world’s leading provider of software and services to the automobile insurance claims processing industry.” (Link to corporate history) Solera will certainly be changing the world of auto glass repair and replacement (AGRR) with innovative software solutions that will simplify the claims handling process surrounding glass repair and replacement. The organization has the potential to affect the way all consumers and influencers ultimately buy AGRR products and services dramatically. Depending upon the vision and direction Solera heads automotive aftermarket parts and service providers, including the auto glass repair and replacement industry (along with the collision repair industry and parts distribution industry) could be in for some big changes. It’s all about taking out market inefficiencies and reducing costs associated with those inefficiencies.
Just look at the AGRR industry. To ensure that service level expectations of the consumer is ultimately met, any software program would need to have access to the real-time inventory level of any supplier or distributor warehouses in the area, the inventory levels of any AGRR shop or technician in the vicinity vying for repairs or replacements, along with the schedules of all technicians available to properly repair or replace the part.
Imagine when an auto glass replacement is required, if it would be possible for the software program to instantly search for the part determining which supplier(s), distributor(s) or AGRR shop(s) has (have) the part in stock; perhaps ranked by cost for the part while finding the best auto glass replacement technician suited to properly install the part; when and where the consumer wants it installed. With that capability you then have to start asking some questions like:
Once the software program has all of the information required to start processing an auto glass replacement, who or what company is directly buying and paying for the part(s) required?
It could be:
- The AGRR shop or technician facilitating the replacement or
- Maybe the customer’s insurance company or
- If it’s a cash job the consumer could pay.
Which of the three above pays for any part required is important to determine the all-in price to be paid for replacement parts, along with the price paid for required installation supplies and labor.
So which organization determines the pricing level for the various scenarios outlined above?
Who is buying and paying for the part and installation supplies required?
Who is paying for the technician to install the part?
Answers to these and many other questions will give you an idea as to where the industry could be heading. There will be changes coming and margins are probably going to change in the AGRR industry in the near future. And probably not for the better.
What is it you’re doing to be prepared for the future?
Aftermarket glass, AGR, agr industry, AGRR, agrr industry, AGRR Magazine, AGRSS Standard, ANSI, auto body, auto glass, Auto Glass Company, auto glass industry, auto glass installation, auto glass network, auto glass networks, auto glass replacement, Auto Glass Replacement Safety Standard, Auto Glass Safety Council, auto glass shops, auto glass technician, auto glass technicians, Auto Glass Week, Auto Insurance, auto service, autoglass, automotive safety, baltimore, Certified Technicians, Collision Repair Industry, consumer, Consumers, David Rohlfing, economy, federal govt, fraud, glassbytes, glassBYTES.com, GLAXIS, GTS, Insurance, Insurance Industry, just sayin', legislation, Lynx Services, lynxservices, NAGS, National Windshield Repair Association, NWRA, safe drive away time, service, service providers, Small business, software, software program, Solera, state government, state govt., techology, third party administrator, Tony Aquila, tpa, United States, urethane, us government, US Govt, windshield, windshield repair, windshield replacement, windshields
An interesting email hit my inbox on Monday from a company representing Service AutoGlass, a part of Safelite Group, Inc. The email came from Fun Online Corporation which is headquartered in New York, New York. Mike Schoenback (and his partner Ron Luks) sent the email and it started with,
I came across your contact information through Glassbytes.com. Our company (Fun Online Corp) is working with Service AutoGlass®, a national provider of wholesale vehicle glass products and installation materials, to launch a social media conversation page in the fall of 2014.”
So the wholesale division of Safelite wants to interact with its customers via social networking sites such as Facebook, Twitter, Pinterest, YouTube, along with numerous other social media sites? The email went on to say,
“We are interested in connecting with a person with good writing skills who has technical experience with auto glass repair and replacement and a familiarity with the industry. We are looking to hire such a person on an ongoing (freelance) basis to respond to posts on the social media page and work with us to develop conversation starters. Experience as a blogger is a big plus. This is a paid position.”
I guess I tick a couple of the boxes they’re looking for. I’ve spent my career in the auto glass repair and replacement (AGRR) industry, I am on some social media sites so I’m familiar with how those work and I blog. Even though it looks like the opportunity is being “outsourced” to Fun Online, the fact that it is a paid position is also great to know. The email ended with,
“I’m writing to see if you may be interested or if you have a colleague who may be interested in this opportunity. We’re happy to have a phone or email conversation if you’d like more information about this.
Thanks very much!
Their email didn’t mention Safelite, just Service AutoGlass. I replied to let them know that I really appreciated the email letting me know about the opportunity, but I didn’t think I would be an appropriate person for the role they were looking at for a variety of reasons and I guess they didn’t look at some of my blog posts. I replied to Mr. Schoenback explaining that I was pretty sure that Safelite wouldn’t want me to fill the role even if I was interested. That being said I was once a part of Safelite filling a number of positions in the mid to late 1980’s leaving as the regional vice president of New England in late 1989; so I do have some familiarity with the company. I just didn’t think I’d be a good person to help “develop conversation starters” for them at this point in time. I’m sure that I could come up with a few “conversation starters” though. Here are some possibilities:
“If an auto glass replacement somehow slips through the hands of Safelite and you’re lucky enough that the opportunity comes to your company would you consider giving us a call so that we could sell you the part?”
“Here at Service AutoGlass we’re your all-in-one source for products and service, even if Safelite is spending countless millions on television and radio ads and is your biggest competitor. Come on…..give us a call. Won’t you?”
“We know that Pilkington, PGW, Mygrant and other wholesale distributors aren’t in the retail AGRR space installing auto glass in competition with you, but that shouldn’t stop you from giving us a call should it?”
I’m sure that you can come up with a few of your own. I asked a friend in the industry for a social media conversation starter for them and he suggested,
“They say you get what you pay for…. What did you get from us?”
I wished Fun Online success in finding someone to fill the social media role for Safelite… er’ I meant Service AutoGlass. I found out that they sent the same email to a few other people in the AGRR industry as well. Imagine my disappointment hearing that. Perhaps they contacted you to see if you were interested? If not and you’re interested in the freelance position you can contact Mike and Ron to find out more. The Fun Online web site states:
“At Fun Online Corp. we’re your eyes and ears during business hours, evenings, weekends and holidays. A round-the-clock business infrastructure is expensive and can be a logistical nightmare. We can create a social media team or expand your current team and save you money. You’ll have 100 percent full coverage.”
It seems like a great opportunity.
* Cartoon courtesy of TomFishburne.com/Cartoons
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I was recently sitting in an airport waiting for a flight and for 30 minutes I stood mesmerized watching an amazing sculpture designed by George Rhodes known as a ball machine. This wasn’t the first time I’ve seen one of these ball machine sculptures. The first one of Rhodes designs I saw was in the late 1980’s while walking through a terminal at Boston Logan Airport. I remember almost missing my flight watching and listening to the sculpture. This Rhodes sculpture at another airport attracted young and old alike. The sculpture really doesn’t serve any practical purpose, but is an intriguing piece of kinetic art. It’s hard to pull yourself away from watching all that is going on – a sculpture that often uses a combination of drums, cymbals, gongs and depending on your point of view makes either a virtual cacophony or euphony of sounds.
“A Rube Goldberg machine is a contraption, invention, device or apparatus that is deliberately over-engineered or overdone to perform a very simple task in a very complicated fashion, usually including a chain reaction. The expression is named after American cartoonist and inventor Rube Goldberg (1883–1970).”
While watching the steel balls that roll endlessly though the intricate Rhodes sculpture I started thinking about examples of how some businesses work effortlessly and continuously in a similar endless fashion. Businesses that provide the same exacting levels of customer service and delivery of a product (or products) over and over again that are a key to success. Some businesses have developed very simple processes to find success while other companies tend to overcomplicate processes in an attempt to achieve success.
While at the sculpture I was holding a Starbucks coffee and that company certainly comes to mind as a business that invariably delivers both simple and very complicated orders efficiently and effectively. This Seattle based company that got its start almost 40 years ago has today become the largest coffeehouse with over 23,000 locations in 64+ countries. I just order a Venti black coffee when standing in line at Starbucks. I can never tell if the barista is happy or somehow saddened by my straightforward order. A Huffington Post blog titled “The Most Obnoxious Starbucks Drink Orders“ details some of the complicated orders at Starbucks such as a ‘Venti Iced Skinny Hazelnut Macchiato, Sugar-Free Syrup, Extra Shot, Light Ice, No Whip’. Now that order would be a challenge to any barista fulfilling Starbucks “delicious, handcrafted beverages” mantra. It makes me smile when I hear someone standing in line ordering a similar concoction. It really doesn’t matter where in the United States or the world you place your order; Starbucks seems to always deliver the same level of consistent service regardless of the local. The company has obviously spent a great deal of time and effort in perfecting the delivery of consistent levels of service, but it all seems pretty simple to the casual observer ordering coffee. Everyone knows that you’re going to have to wait a bit when ordering one of the “delicious, handcrafted beverages” mentioned earlier versus my Venti black coffee order, but those who order the complicated drinks don’t mind. They know they are going to be rewarded with a delicious drink made to order by a barista that has perfected his or her craft. In plain sight the platform seems pretty simple. Do you think that behind the curtain there resides a Rube Goldberg machine? Doubtful.
Can you think of other businesses which deliver products consistently in a simple straightforward manner? Maybe FedEx, Amazon.com or even MacDonald’s could come to mind. Fortune Magazine lists 50 of the “World’s Most Admired Companies” and the top 5 are:
- Berkshire Hathaway
I’m sure you’d agree that each of these companies is the polar opposite of a Rube Goldberg.
I’ve worked in a business or two that have taken great steps to simplify business processes through employee training and the use of technology in an effort to reduce back office costs that keep company investments focusing on people and growing the platform. And I’ve worked in a business or two that seems compelled to use a Rube Goldberg machine mentality. I think that those who insist on making simple processes overly complicated could find greater success by streamlining operating procedures, but as long as shareholders are pleased with the return on investment, changes in operating styles aren’t likely to happen. In a highly competitive industry companies that are overcomplicated ultimately could be disadvantaged versus others in the same industry that have found ways to reduce the Rube Goldberg machine mentality.
Do you know of businesses in your industry which operate more like a Rube Goldberg machine (deliberately over-engineered or overdone to perform a very simple task)? I’m sure that you do. Noted management doyen Peter Drucker is quoted as saying:
“Only three things happen naturally in organizations: friction, confusion and underperformance. Everything else requires leadership.”
It has to be frustrating for people who work for companies that use complicated procedures or policies in an industry where other companies have found a simpler way of delivering the same service. I’m sure you can come up with some examples in your industry.
So, what’s it like at the company you’re working? Does your company operate more like an Apple, Amazon.com, Google, Berkshire Hathaway and Starbucks; or does it operate more like a Rube Goldberg? Imagine the potential for those companies that operate using a Rube Goldberg machine mentality that pivot to find a better way to provide the services or products they offer. If you look at your company and think you see an area of the business that might resemble a Rube Goldberg machine, perhaps you should seek ways to make it a little less complicated. Isn’t that what leadership is all about?
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A few weeks ago we decided to take a road trip. The trip has taken us through Indiana, Michigan, Canada, Vermont, New Hampshire, Maine, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Washington, D.C., Virginia, North Carolina and now onto South Carolina, Tennessee, Kentucky and then back to Illinois. We could add a couple of other states to the trip. It has been a great road trip. Besides keeping my eyes on the road I also kept an eye out looking for windshields in need of repair or replacement as I have since I entered the auto glass repair and replacement (AGRR) industry. I was also looking for mobile auto glass vehicles along the way.
In an article titled “April Miles Driven Increases” that appeared in glassBYTEs.com last week, the web site reported that there was an overall 1.8% increase in miles driven in 2014 versus 2013. Only the Northeast reported fewer miles driven. Based on our experience, the number of vehicles of all types on the road has been pretty amazing. We’ve encountered very heavy traffic everywhere we’ve been so far and, since one of the three key drivers for the AGRR industry is miles driven (the weather and the economy the other two), perhaps this is another good sign for glass breakage and future business….at least in the states visited on this road trip.
I’ve spoken with a number of people who either own or work for AGRR retail and wholesale companies; regardless of the area in the country in which they compete, each says business has been great this year! In other road trips over the past few years there have always been a plethora of windshields in need of repair or replacement on the drive, along with countless plastic and tape wrapped broken door, quarter or back glasses (the “do nothings” – those who break glass and don’t repair or replace it). On this road trip I have been surprised to see very few broken windshields or taped up door, quarter or back glasses. Hopefully this is a sign that people are repairing or replacing glass when it breaks.
I saw the first AGRR mobile van on the road trip in Canada – a Speedy Glass van (I was the President and CEO of Belron Canada in the late 90’s and early 00’s). I didn’t see my next mobile van until I saw a Tiny & Sons Auto Glass mobile van in Massachusetts. I have driven by a number of glass shops on the road trip (and stopped by a few) and I didn’t see any mobile vans parked at the shops so I assumed (hoped) that each was busy doing mobile replacements. I’m in North Carolina now and I haven’t seen any more mobile vans. Odd I think as I see them in Chicago all the time.
After the strong winter season across much of the country we experienced some “Wind at our Backs” which was discussed in previous posts. Perhaps with a steady increase in year-on-year miles driven, and if the economy will come out of the doldrums we will see some positives for the AGRR industry. You still have to have to figure out how to deal with the big guys increasing market share and the brand recognition programs in play. If this year’s weather provided and continues to provide AGRR opportunities, if the miles driven continues to grow providing further opportunities and if the economy going forward gains strength and provides further opportunities; you’ve got something to work with. Not always easy I understand, but if it was easy you’d have a lot more competitors to deal with. You just need to continue to figure out what you can do to push and pull consumers to your business.
Aftermarket glass, agrr industry, auto glass, Auto Glass Company, auto glass industry, Auto Glass Replacement Safety Standard, Auto Glass Week, Auto Insurance, Automotive Expert, automotive safety, canada, Connecticut, David Rohlfing, Delaware, economy, glassbytes, illinois, Indiana, Insurance, Insurance Industry, Interstate, just sayin', kentucky, Maryland, Massachusetts, michigan, miles driven, New Hampshire, New York, North Carolina, Pennsylvania, Rhode Island, Road Trip, Small business, state govt., Tennessee, Tiny & Sons Auto Glass, US Govt, Vermont, virginia, Washington D.C., windshield, windshield repair, windshield replacement, windshields
Posted by "Just Sayin'..." in AGRR, Auto Glass, Auto Glass Networks, Call Centers, cars, Driverless Cars, Economy, electric cars, Fleets, General, General Motors, GM, Innovation, Insurance, Legislation, OEM, rental cars, Retail, self-driving car, Service, Technology, Tools, Uncategorized, USP on June 4, 2014
Clayton Christensen developed his disruption innovation theory studying the computer industry. Disruption in virtually any industry will determine winners and losers in business. If you visit the Christensen Institute web site you’ll read that:
“The theory explains the phenomenon by which an innovation transforms an existing market or sector by introducing simplicity, convenience, accessibility, and affordability where complication and high cost are the status quo. Initially, a disruptive innovation is formed in a niche market that may appear unattractive or inconsequential to industry incumbents, but eventually the new product or idea completely redefines the industry.”
At the annual Code Conference held at the Terranea Resort, located in Rancho Palos Verdes, California that brings together some of the world’s geekiest folks; Google’s Sergey Brin debuted Google’s driver-less car (link). These cars were designed without a dashboard, steering wheel or a brake pedal. Why? A driverless car doesn’t need any of those accessories in the cars of the future as seen by the visionaries at Google. Could this be an example of “disruptive innovation” that could affect multiple industries?
This Google designed driver-less vehicle is very different from the self-driving vehicles that Google equipped with the driver-less technology installed on the Toyota or Lexus models that Google first began using. The initial self-driving cars Google used were off –the-lot models made by original equipment manufacturers so each came equipped with a dashboard with all of the typical accessories you’d expect to find both on and under the dash. But this new Google car comes without many of the accessories deemed required, up until now, and Google added a few other things that you will find disruptive long-term. It evidently is equipped with a flexible plastic windshield.
The car can only top out at 25 miles per hour and you’re not going to be seeing it on the highways anytime soon, but nonetheless with Google behind it one can only assume that the company’s long-term goal is to dramatically change driving habits. Will this technology be successful in disrupting the car industry? It would take time and a lot of treasure, both human and monetary. Google certainly has the wherewithal to attract the best and brightest to make this project a reality and money isn’t an issue.
Experts believe a self-driving car will make driving safer. Imagine that you can text or talk on your phone to your heart’s content as you won’t need to be concerned about distractions. Human driving errors should be greatly reduced if all the other cars around you are interconnected resulting in greater safety. Older drivers would have more freedom which would be good for them and great for everyone else concerned about grandma and granddad getting behind the wheel. Disabled drivers would also gain new freedom to rely on themselves versus others. An EY Automotive study says that autos with Autonomous Vehicle Technology will surge from 4% in 2025 to 75% by 2035.
There are going to be winners and losers as self-driving cars gain traction in the coming years. What will greater safety and independence for everyone mean to the insurance industry and all of those in claims departments today if the number of accidents drops? To the collision and automotive parts repair industry? To the rental car industry? To the auto glass repair and replacement (AGRR) industry? To the trucking industry? Countless industries will be affected. There’s going to be a lot of businesses that will rise and fall with this disruptive innovation and a lot of people at risk of losing their current job in an industry affected by the self-driving car.
There will probably be a day when those who want to drive their own cars could be viewed similarly as today’s drunk driver or someone that is texting as they are putting self-driving car riders at risk.
What will the likely outcome be if Google’s self-driving cars become a “disruptive innovation” and disrupt car manufacturers, the transportation industry as a whole and change the habits of the driving public in the years to come? We’ll have to wait to see.
So is there something a company or companies are doing today (or will be doing) in the AGRR industry that is (or will) disrupt the way things operate? Are there innovations that will “completely redefine(s) the AGRR industry”? I think the answer is yes to both questions. There are plenty attempting to disrupt what it is you are doing today and I know that there are those trying to disrupt the future of the industry with new innovations.
Here is another definition of disruption innovation:
“A disruptive innovation is an innovation that helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology. The term is used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in a new market and later by lowering prices in the existing market.”
You probably think we already have enough disrupters in the AGRR industry, but what is your plan going to be if you’re not one of the one’s who has designed or is designing a “disruption innovation” in the industry? Something is certainly coming.
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Last September and December I wrote blogs titled “Wind at Our Backs?” and “Winds at Our Backs? Part II” writing that “it appears that we may have some wind at our back” when looking at the key drivers (the weather, the economy and miles driven) of the automotive glass repair and replacement (AGRR) industry. If you focus mainly on the weather as a key driver and look at what we’ve experienced in the United States this past winter, many would describe it as harsh or brutal in much of the country. Based on the weather over the past week, even though the vernal equinox or the first day of spring arrived on March 20, 2014, our winter really hasn’t seemed to have ended yet. I live in Chicago and this past winter was the coldest (December – March) ever on record and snowiest (9.7 inches from snowiest on record – 1978-79 as reported by the WGN-TV Weather Blog) I’ve ever experienced anywhere, except maybe for one when I lived in Montreal.
Chicago/Lake Michigan February 2014
The Old Farmer’s Almanac forecasted that the 2013 – 2014 winter season would bring us colder weather and heavier snowfall in many sections of the country and for those who were hoping that the forecast would come true they weren’t disappointed. Stretching from the Rockies to the East Coast the weather has been a big boon to the industry with extreme or unseasonably cold weather that included snow and ice storms. I’ve talked with a number of retailers and suppliers who had a great first quarter of 2014 which followed a rather lackluster 2013. One supplier told me, with his tongue firmly planted in his cheek, that on a trailing twelve months he looked like a genius since all the strategies that his company had used in the past year to increase business had really paid off.
Starting in 2011 The Weather Channel started naming winter storms that are strong enough that meet the criteria set by the prognosticators. For the winter of 2013 – 2014 The Weather Channel’s list of 26 alphabetical names were developed with the help of a Bozeman, Montana high school Latin Class. The potential storms this winter began with the name Atlas and will end with Zephyr. Through today there have been 24 named storms with the current storm that hit the Upper Midwest with up to 18” of snow before heading off to Canada. Since it is now the first week of April and a couple of weeks since the first day of spring winter storm Xenia is dumping snow in parts of Minnesota, Wisconsin, Michigan, South Dakota, Nebraska and Iowa. Enough already. Although this winter may have been good for some in the AGRR industry I’m thinking of it more like a Dr. Seuss book I read countless times to my sons when they were growing up – “Marvin K. Mooney Will You Please Go Now!”
When you look back at this past winter named storms starting out with Atlas in early October that delivered feet of snow from the Rockies to the Upper Plains winter storms kept hitting almost every week including some areas that haven’t seen much in the way of winter weather for a few years. In early February starting out in Georgia and hitting especially the Atlanta metroplex were a couple of storms that CNBC described as a catastrophic ice storm that effectively shut down Atlanta for several days before continuing on up the east coast wreaking havoc along the way. In early March the greater Dallas-Fort Worth and North Texas area got hit with an ice storm that crippled the metroplex. The Carolinas got hit by a couple of storms in February and March with the last one being Ulysses hitting around March 10th. If you live in the North you expect to get snow and you’ve learned how to deal with it, but it’s not quite the same below the Mason-Dixon Line.
Every year there is a contest that awards a trophy called The Golden Snowglobe that recognizes the snowiest city with a population of 100,000+. The trophy typically goes to Syracuse, Rochester or Buffalo, New York each year, but as of today it appears that for the winter of 2013 – 2014 the winner for The Golden Snowglobe will be Erie, Pennsylvania with 137.2” of snowfall.
For this blog I’m not going to address the economy or the miles driven. Neither of those has really changed all that much since my December blog. Regardless whether you feel the wind is at your back or not, you and your employees are the key driver(s) in your business. How you’re dealing with the various opportunities and obstacles that you face each day in your business determines the success you achieve. All that really matters is what is going on in the market or markets you operate and I hope that you’re achieving success in the markets you compete.
As good a predictor that The Old Farmer’s Almanac was for this past winter, the prediction for the 2014 – 2015 winter season from this long-time source hasn’t been published yet, but I recently saw a very detailed prediction made by The Weather Centre for next winter. Please take the time to read and interpret all of the information and let me know what you think what the upcoming winter will be like.
Since weather is so important to the AGRR industry, in the coming months I’m hoping that you get some hail in the markets you compete. I know a couple of suppliers that think that could be their winning strategy for 2014.
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