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| Johnny Schrunk - Risk Management Expert & Business Coach |
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| For over 25 years, Mr. Schrunk’s firm has helped thousands of trucking companies build robust and effective Risk Management Programs that decrease losses, improve efficiencies and improve bottom line profits. |
| E-mail: johnjr@psccorp.com | Website: www.professionalsafetyconsulting.com |
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Posted by Johnny Schrunk on Tue, Mar 16, 2010 @ 11:11 AM
There are good reasons why some companies are able to implement profitable programs, whether they're related to customer service, sales and marketing, safety, operations, maintenance or any other facet affecting their company's profit margin. Likewise, there are reasons why some companies' programs fail. A program could be designed incorrectly or it doesn't quite fit the purpose. But, most often, the problem is a lack of sufficient support, a program integrity problem or improper administration. Regardless of its purpose, carrying out a program to a successful result requires the identical steps and support. If administered correctly, and supported by everyone, it can be a money-maker.
"ACTIVE" vs. "PASSIVE" Support (and why you need to know this)
Non-support of a program can, and usually does cause failure, regardless of whether it's inadvertent or purposeful. There are many subtle ways that programs have been sabotaged. Some people might think it's harmless to make a seemingly subtle, yet negative statement or gesture about the program. Facial expressions and any number of other "subtle" references or indications that a program is frivolous or foolish can sabotage a program. We've all seen it or heard it and we fully understand it; a wince, a sneer, a scoffing snicker at the most opportune time. Despite attempts to be "subtle", these reflections on a program can do much harm, particularly if directed at anyone who doesn't understand the entire program and its merits and is unwilling to speak up in support when this occurs.
Some people use these techniques to "dodge bullets" or escape blame if the program goes awry. That's because they know how and they practice it: they never say or do anything except just enough to get by. You know them. They will criticize an idea but seldom, if ever, offer an alternative. Ultimately, if allowed to continue, these people will negatively affect a company's bottom line profit. And it doesn't matter what their job is within the company.
Adopt an "Active Support" Policy
If someone in your company appears to be "riding the fence", this person is not "actively" supporting the program, is not effective in his/her job and is affecting those around them. This "fence rider" must become effective in their job function, as soon as possible, and should be assisted through training. If this doesn't happen immediately, your efforts will be sabotaged. Never mind whether it's inadvertent, the result will be exactly the same - sabotage.
How do you get support?
First, involve people from each department in the initial development of the program. Next, distribute the draft to those people who will be involved or affected by the program. Invite comments, so that everyone has the opportunity to offer suggestions for changes, additions, etc. This has a two-fold purpose: 1), you get the benefit of additional ideas for the program and; 2) those involved in this process will likely support it. Then, management must impart the following to everyone within the company;
ACTIVE SUPPORT! Nothing else is acceptable. This is not to say that everyone needs to be an active participant in the administration of the program, but rather to actively show support anytime a topic concerning the program is discussed or surfaces in any conversation or other reference to the program. Passive support, "riding the fence", active non-support or anything else is identifiable and will not be tolerated. In order to effectively and actively support the program, you must fully understand it. Consider creating a short "training" program, expanding upon the information above.
Program Integrity
Whether its purpose is to show your appreciation, to assist your customer service efforts or an operational program for improvement, a solid program must be conducted with the utmost integrity and be fully supported. For example, regarding your safety award program, if you judge an accident as "non-preventable" when most drivers know it's really probably "preventable", your program integrity will be severely compromised. (Follow the rules!) The same holds true for a customer service program, customer relationships, maintenance or any other program.
Incidentally, remember the old adage "birds of a feather flock together". People who like to "do things right" want to be associated with others who share that same integrity. Managers get respect from these fantastic employees by making certain that they are the only ones welcome to join the group and share in the company's successes. That's because these people know they are making a significant contribution and that they are instrumental in the company's success. Recognize these people, sincerely, and assist them at every opportunity. That is a vital part of the "integrity" of any program. Don't wait until an employee or driver "appreciation day" arrives. This should be an everyday approach.
Proper Administration
First: Owners and GM's: Implement only those programs that you fully believe in and you will actively support (including involvement), and, those that contain no inequities.
Supervisors, dispatchers and everyone else in the company: you must support all company programs, or those programs are doomed to failure, which, one way or another will affect your own jobs.
A failed program can cast doubt on other facets of the operation, which can be very expensive in ways that are difficult to track. On the other hand, failing to implement necessary programs can be far more expensive. Well structured programs are relatively inexpensive and typically pay off liberally.
If you are the Safety Director, Operations Manager or anyone else responsible for developing a program, you need full support from top management on down. Without it, your program doesn't have any chance of success. If you are charged with the responsibility for carrying out a program, first make sure everyone will actively, not passively, support it. And remember, there can be NO "fence riders" - they're either part of the solution or they are part of the problem.
Success today does NOT need to be viewed as overly difficult work. But your efforts must be directed toward those endeavors that are purposeful, fair, equitable and profitable. A company will be judged on those attributes by its customers and its employees, and will obviously reap the associated benefits.
Posted by Johnny Schrunk on Mon, Nov 23, 2009 @ 11:39 AM
As we’re reluctantly racing into another (grueling for many) Holiday Season, which year after year has an uncanny way of weeding out the sickest and most desperate businesses, something additionally profound takes place. In the midst of dodging the ghouls and goblins that October graciously brings, for those that skirted through unscathed, brings upon the frightful post era of incoherent turkey day feasting followed by a fresh and hearty “New Year!”; for more than none, another year of the same, or for more this year than ever, much, much less. Err, that’s bleak. No, it’s true and real. Always has been and always will be. This disturbingly represents a significant percentage of our industry (“industry” is a scandalous scapegoat for personal failure). What’s more disheartening is that it’s by choice, not circumstance; because it’s about the results, not the objective. Many people are offended by this truism. It’s cyclic. It’s a good thing.
Out of the chaos and noise, far from the big city, in a land far, far, away is a lurking and elusive creature that draws about 80% of us “close” to its secret hiding place; about 15% do “OK” and 5% of us really, truly find it. Not by happenstance as the 20% that never went might say. We all come for different reasons and motives. And, we all bring a different weapon of choice. The hunt can be strategically planned out, through thoughtful planning and implementation; or it can be a “sit and wait”, “let’s see what happens” session. Strategic Hunters, those that continually invest in themselves, use the best equipment, latest tactics, and find (intentionally and deliberately) the Right Spot, without fail, win BIG every
time, without fail.
Profitability (prosperity) in the trucking “industry” is an elusive creature. It’s the Ultimate Big Game Hunt. All hunters yearn for the trophy on the wall and cash flow that will crush any competitor and allow for investment in fulfilling lives and memories. What do the successful hunters have in common? A lot of hunters have great weapons, might even have great strategies, and may even be lucky enough to “get close” to The Spot; but they just don’t make it. They don’t have laser beam focus, speed to action, persistent patience and unassailable determination.
They also have bigger TV’s than they do libraries.
Equity is in the relationship. Investment in knowledge creates sustainability. Taking a different road in, with someone “mastering” the hunt vs. “dabbling”, defying the status quo may be a risk (not for the entrepreneurial spirited); albeit calculated, tactful, and
more rewarding, more frequently, than any other way.
Happy Hunting.
Posted by Johnny Schrunk on Fri, Nov 13, 2009 @ 10:15 AM
So I’ve been burning the midnight oil on the road now for about 4 weeks, from San Diego to Baltimore and a whole lot of places in-between: consulting, coaching and mostly spending productive (exhausting) time with Mastermind Groups. I had the great opportunity to meet with two-time World Champion George Foreman last week (note my left uppercut), who is not only a champion fighter, but what most don’t know, one seriously bad-ass entrepreneur that won’t back down from anything he believes will help someone in a very good way; against all odds. He hit my note and the timing was impeccable. I’ve been working diligently on (fighting for) an idea I’ve had for awhile now, that my clients, colleagues, followers, friends and ambassadors have been begging for. What was stopping me? Me.
George said, "Where's The Fighter"? More than ever, we all need to ask ourselves this. Escalating fuel prices, insurance costs, flat rates (at best), zombie employees, and a whole lot of fatigue have got a lot of folks licking their wounds with no motivation or direction that will let a shimmer of light in. George is a testament to stopping, taking two steps back, gaining clarity and then launching back in furiously, with fire in your belly, swinging with everything you got - and a little more - with no other thought than your gonna win this damn thing.
I'm pumped. I'm launching.
While waiting for my return flight, a curious new acquaintance, who coincidentally is working for a large southern-based fleet asked me, "Where's The Freight"?
Seriously, WTF?
Posted by Johnny Schrunk on Mon, Sep 07, 2009 @ 10:28 PM
In
this blog I promised to “jam some gears” a bit and unveil a strategy for
"How to Please Your Drivers and Spouse at The Same Time". My ultimate goal with this blog is to make
you happier this week than you were last week by giving you something to think
about while you’re indulging yourself (or painfully beating yourself up) over
“Labor Day”.
As
you’re spending time with family and friends during this “laboriously free day”,
reflecting on the last tumultuous 8 months, wondering what’s to come in the
next 4, consider this: we have 2 choices
to make each morning as we awake which, for the most part, dictate how we act
(or react) to those around us. For most,
that’s family first, then office staff, drivers, customers, and the lucky little
devils we just happen to “run into” throughout the day.
Whether
you put a smile on your mug and decide to kick some serious tail is up to you and
no one else. We’ve heard it all,
from being “proactive” vs. “reactive”, etc.
But I would urge some discretion as we move into the tail end of 2009.
Leave
work AT work. Work SMARTER not
harder. Putting in more hours will not
only run YOU down, but it will run everyone down. If you have to, schedule family time without
them feeling it was “scheduled”. If
you’re truly spending your time working ON your business, what I’m about to
tell you won’t come as a shock. Take out
a pencil and write this down: WORK
BACKWARDS
Instead
of thinking and working painstakingly on time-management, as cliché as that
sounds, focus on outsourcing and personal
time - time you invest in yourself, your family, and your people. Do not let
them persuade you in any way when it comes to your focus ON the business. This will be extremely hard for many folks to
step back from the business and actually spend MORE time on themselves, enjoying
life, considering the economy and possibly their businesses vitals. Trust me, it works. And here’s why…
Leaving
fear at the door, and the idea that “only you” are capable of handling certain
responsibilities, will teach you very quickly that these are huge barriers to
you unleashing your true potential. By
working backwards, you are truly liberated.
You’ve given yourself permission to start living and enjoying the life
you thought you had a year or two ago; or better yet, the life you envisioned
for yourself. The reality is most people
will never get there. What a cruel thing
it is to dream about it – but never achieve it.
Start living life now. Once you
quit talking about that vacation and just book it, you begin moving in the
direction of taking massive action.
Delegate your responsibilities, outsource what’s feasible, focus on
personal time and you’ll soon find yourself working ON your business from 30,000
feet instead of at ground level.
Oh,
and one more thing. You’re going to see
a different look on your spouse’s AND drivers’ faces when you put that
Blackberry down and have a good old fashioned chat.
Two
quick suggestions before I leave you to indulge. The first, grab a copy of “The Four Hour Work
Week” by Tim Ferris (you’ll need this on vacation), and two, book the vacation.
Posted by Johnny Schrunk on Fri, Aug 14, 2009 @ 11:16 AM
In this blog I'm going to start breaking down some simple ways you can start leveraging the Internet and new media to create some market differentiation between yourself and your competitors. We visit thousands of transportation companies every year, helping them improve their businesses and one of the areas we can help folks out with right away is with their on-line presence; the first being the "website".
The first rule to remember about building out a website (besides the fact that YOU aren't going to do it, someone ELSE is) is that new prospects don't really care WHO you are; they want to know WHAT you will do for them. If you can do it, and do it well, then you might have a long term relationship. As cliché as this may sound, it's more true today than ever. It's not personal, it's business. It's about trust and integrity; and profitability. We have many customers that have been with us for over 20 years with no turnover. They aren't customers just because we "love" and nurture them. They're our customers because we give them what THEY want (quickly) and what they EXPECT from us; better than our competition. You can "talk the talk" all you want in your website, but you better back it up through reputable sources and testimonials from the movers and shakers in the industry. Too many trucking websites exploit the WHO, and not the WHAT. Switch this around, and you'll stand out.
Telling prospects about your multi-generation family ownership isn't an effective way of creating new sales leads, nor is an award, education or wall of credentials. The economy has leveled the playing field. It's about RESULTS. You can tell them "who" you are (be brief please), but more importantly, tell them what you have done that has consistently produced quantifiable results. Make it known. Want to stand out in the crowd of Shippers and Underwriters? Here's a tip, let them know you have a SATISFACTORY Safety Rating right up front on your home page. Make it BIG. Put your company stats where they can easily be found. Most of it is public information and they'll get it anyway. Give them the "goods". Make it EASY. Exploit your Safety Record, OOS Rates, Accident Frequency Rates and Turnover. Prove you're not hiding behind anything. Do you know your Operating Ratio? Step up to the plate and challenge your competition. Post testimonials. Avoid start-ups unless they can back it up with facts, figures and testimonials. Would you want to do business with a company just because they've been in business for 100 years and they have 5 generations in the business (with no other references) or would you like to do business with a company who has a 10% driver turnover rate, Out of Service Rates well below the National Average, a zero Accident Frequency Rate and a Satisfactory Safety Rating? If they can't provide testimonials, it's a waste of your invaluable time and if you recall my last blog post, you're not supposed to be working on this new website anyway my friend; you're suppose to delegate it, right?
Here's another tip to get you rolling. Your local web guy is most likely charging you an exorbitant amount for a website with no ROI. Hint, Hint: Outsource it on-line! Places like 99 Designs, can crank out websites that will fit your company and most importantly your budget. We regularly see front to back sites complete for under $200 bucks, and these aren't choppy "template" websites where some other company has the same site as you. These are top shelf Web 2.0 sites (meaning interactive and personal) that grab attention and turn heads. Media today makes it easy for anyone to research a person and/or company. You can't hide. If you're not hiding from anything (or anybody), for Pete's sake, EXPLOIT IT! This is the only way you can truly separate yourself from your competition. The days of "resting on your laurels" are over. Your choices and decisions must be deliberate, intentional and very quick.
In my next blog, I'll be sharing some insider secrets into the new media, specifically blogging, which will drive traffic to your brand spankin' shiny new website and ultimately launch your sales and marketing into a whole new stratosphere.
Posted by Johnny Schrunk on Mon, Aug 10, 2009 @ 08:29 AM
In last month's blog entry, I talked about 3 of what I view as the 7 Keys to Gaining Control and Harnessing New Opportunities: 1) outsource, delegate and focus ON your business, 2) new markets and new marketing - stop defending the status quo, and 3) build a fence around your customer with a bridge letting the bad ones back in. Here are my Keys 4 through 7: 4. Get AWAY from your business. Admit it, the last few years (at least) have felt like being in a "grinder". The only way to clear your head and get those "idears" that are rattling around to stop and come out, is to step back from the daily grind. In order to work ON your business, you're going to have to get OUT of it. Trust me, I know it sounds scary, but you'll never do it if you don't decide you're going to and just do it. There are too many distractions and bad habits that have formed over the years. It's a straight jacket. It's time to escape. Try working form elsewhere for 1 or 2 days per week, just as a start; and then work your way up. Remember delegation? Let it go. Nothing is THAT serious over you working ON your business and personal life...is it? For some, this may mean a transition of personnel. It's natural. Do it. Move on. Define your goals, business and personal, clearly. A lot of people have never really done this. They don't REALLY know what they want because they're too worried about surviving. They have to stop living out of their company and start really working on a solid platform of cash flow vs. floating. Worrying about things is a waste of time and negative drain. Make sure you have the right people surrounding you with support. If they don't support you, then get rid of them or put them in a different position which doesn't require their opinion. Harsh? Naw, reality. The only opinions that matter in your business are from the people that give you money (i.e. your customers). Be a leader. Give your good people MORE authority to do things and make decisions. Eliminate all the time-sucking and unprofitable stuff you do each day. Outsource the rest. Guard YOUR time. I repeat; DO NOT let anyone waste your time. Time is the one thing you have total control over, and with only 1,400 minutes in each day, you must guard it to the utmost. 5. One of the most compelling messages (and useful) I've ever received was from my own business coach, who said something along the lines of "you're the sum total of the five people you hang out with regularly". Now, my personal take was, if I'm spending time with my family then that's not all that bad; however, I realized the real meaning was in the "other" side of my life. The WORK. It's true. Think about that statement for a minute. Like it or not, it's true, and it's either been great for you, or it's holding you back (majority are here whether they acknowledge it or not). Be cautious of who you take advice from. We preach this in our own mastermind groups. Ask yourself, are they really doing THAT well? If they're advice is so good...hmmmm...get the point? Don't feel bad, I was there not too long ago. You don't need to ditch your buddies. You just need to surround yourself with successful (sharp and savvy) people in your niche; people that will nurture you along and help you. It's not always a good thing to be the smartest guy in the room. After all, what is there to learn? My advice, join a mastermind group. Make an effort of getting together with that person you admire and respect. Buy em' dinner or a drink. The return on investment will be priceless. Ask a lot of questions and don't chase success; let it chase YOU. 6. You don't know what you don't know. I wasn't a reader growing up. Like a lot of kids, it didn't seem interesting at the time. I never understood reading for pleasure (I guess I still don't); BUT, I can tell you that surrounding myself with successful people has taught me exactly why struggling people buy BIG TV's and successful people BUILD libraries in their house. I've done more reading in the last 12 months, than I have in the last 12 years. The reason I can read more, is a direct result from implementing the tips I've shared thus far. Outsourcing, delegation, etc. The time I spend on reading is minimal. I focus on topics that are of interest and value to my business and then I implement them as quickly as possible; or I delegate them to someone for implementation. Remember the mastermind group? There's a lot of new "stuff" out there today such as Social Media (Twitter, Facebook, LinkedIn, Blogging, YouTube, etc.). These tools are critically beneficial in your businesses today, and their FREE. To ignore their presence is naïve. You don't have a choice but to learn what they can do for you, and then have someone do it FOR you. Don't wait. Educate yourself. Spend time learning and educating yourself in new areas that will benefit your business. I'm learning more and more each day; does this make me an expert in all these areas? Absolutely not, but I can tell you that I know a heck of a lot more than I did before and that's going to help me and my businesses with what's headed our way and a long way down the road. I've met a few guys in this industry who really think they've met everyone there is to meet, know everything there is to know about trucking, and well, let's just say "they have a big TV". Your trucking company today is where it is and is making the amount of money it is, because of the choices you made and the effort you put into running it. Any excuses of the economy did this, or the economy did that, are BS. Don't be another "victim". There's not much room for more whiners. Whether you're doing phenomenally well right now, or you're living out of your business on a negative operating ratio, it's never too late to grab the bull by the horns and learn something new. Just do SOMETHING with it. 7. Invest in YOURSELF. Since really making the decision to take "action", I've realized that I do go to a lot of seminars and workshops (preferably WORKshops) and I will continue to do so regardless of the expense. You don't know what you don't know. Ninety-nine of the people that go to events feel great when they are there, but then do "nothing" upon return. Do one single cottom pickin' thing and I guarantee you, you'll see an ROI. I try hard, and I mean hard, to surround myself with people I feel are smart and successful, sharp and savvy. Heck, they're fun. I run my own mastermind groups and these people are really fun, and really smart! These are the REAL movers and shakers that produce results. You know the guys, they "walk the walk" and "talk the talk", and they can back it up. I steer clear of exhibit shows and board meetings; but that me. Get your head out of the media and politics. You can't help anyone, let alone your business, if you can't help yourself. Workshops and mastermind groups are productive. That's what businesses need today; productivity. Be a fearless leader, know what you want, arm yourself with knowledge and got out and get it. Opportunities have never been greater. It's all up to the choices you make and the effort you put into it. In my next blog I'm going to start breaking down some simple ways you can start leveraging the Internet and new media to create some market differentiation between yourself and your competitors.
Posted by Johnny Schrunk on Sun, Jul 12, 2009 @ 10:03 PM
The economy a year ago was a "sharp pain" for many, and has turned into a "dull ache" for most. According to the media guru's, it's going to get much worse before it gets better. There's said to be a slight "upswing" heading our way, which some feel is already here; followed by a much larger "downturn". Speculation and forecasting; that's what's drilled into our heads by so many media channels. Prepare for THIS and prepare for THAT. This leads to unproductive behaviors and decisions trucking professionals must make every day in their businesses. Bottom line: turn off the TV, work ON your business, not IN your business, and seize a fraction of the opportunities that present themselves in these climates. Work "smarter", rather than "harder". Surviving is now cliché. Some have convinced themselves there is nothing they can do to help their business. They've already tried to minimize expenses and are so focused on cost; they are missing the big picture; growing and diversifying the business. Many companies are so focused on "cutting the fat", they don't realize that these efforts have a negative effect on their overall operating ratio if they neglect the all important element in developing a successful and profitable trucking operation. In fact, many think that because they cut expenses and their gross revenue increased, they are growing (false). Gross revenue can increase while the net profit decreases. Unfortunately, this is only one reason why over 5,300 companies have disappeared from the map, in the last 30 days. You can "float" for only so long. It's sink or swim. Speed is a critical element in business today. Net profit is the undisputed champion. Get back in the driver's seat, delegate your current day to day responsibilities and focus on growing the business. Here are 7 Keys to Gaining Control and Harnessing New Opportunities - Outsource, delegate and focus ON your business. Forget the rest. Don't worry about the things you have no control over. You're already comfortable with all the chaos and noise out there. Get more comfortable, it's here to stay. Step back and look at your productivity level from a week, day, and hourly level. I bet there's something there you can identify that will boost YOUR productivity. Delegate unproductive activities to someone in-house, only if you really have a difficult time letting go. Teach yourself to "let it go". Everything else needs to be outsourced. Everything today CAN be outsourced; including your email. Stop sitting behind the monitor. Shut if off for predetermined periods of time, pull out a pen/pencil and notepad and start "really working" on your business; do you know where you want it to be positioned in the next 12 months, 5 years, 10 years, etc. (specifically)? That "idea" you've had for the last 3 years...it's time to make it happen.
- New Markets and New Marketing. Stop defending the status quo. Diversification has never been easier to tap into. Want to really stand out in the crowd? Up the ante on your marketing efforts (online and offline). It won't take much because most marketing campaigns have been suspended (the irony is that it's typically the first expense to be choked out, second only behind Safety and Loss Control). HINT: Do Not Sacrifice any Elements of Your Safety Program (the price paid will be exponentially higher when you have a loss and have to rebuild). Those that continually lower rates will be caught in the cold when rates go up. It's a natural cycle and devaluation is tough to overcome for any company. Remain steadfast and strong by diversification and niche marketing. Scarcity is a good thing; welcome it. Without it, there's no need to be innovative.
- Build a fence around your customer with a bridge letting the bad ones back in. Serve the customers you hate. You'll learn a lot more from them than you will your best customers. It's like a bad relationship. You'll put up with it for awhile just to learn what makes the other one "tick". Now you have something with REAL value. Nurture your existing customers like never before. Touch them often through personal communication (phone and visit). Get to really know them better without being a pest. You have to talk to them more today, to know what changes they are going through, and to be able to adapt quickly. The faster you are, the more dominant you will be to your competitors. Today's success model is very simple.
SPEED + ACTION = RESULTS.
Stay tuned for Part 2
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