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August 2007 Archives

August 12, 2007

How to Find a Great Transportation Organization to Work For

In my previous blog, I outlined the key elements of a fulfilling job and happy work environment. If these conditions do not exist for you, it may be time to think about finding a new employer. The objectives of this blog are to outline the critical items to look for as you conduct your job search.

1. How is the company performing financially?

The last thing you want to do is join an organization that closes its doors in six months time. For public companies, the task of finding out how the company is performing is relatively easy. It is obliged to publish its financial results on an ongoing basis. Determining the profitability of a private company is more difficult. You can certainly ask the question during the interview process and do some due diligence. If possible, speak to folks who recently left their organization.

2. What happened to the previous incumbent?

Some companies go through their V.P.s of Sales or Operations on an ongoing basis. Rather than being a statistic, you need to find out why. Are the job expectations unrealistic? Does the President or owner have trouble delegating authority? Why did the previous incumbent leave the organization? If possible, speak to the incumbent and find out his version of the facts.

3. What are the Performance Metrics and Targets?

How will my performance be measured? What is the current baseline and what are the targets? What is the timeline to achieve these objectives?

4. What is the quality of the current team that I will be inheriting?

How many people are on the team? What have they achieved over the past year, past three years? What are their skill levels? How many years of experience do they have?

5. Will I have the freedom to make whatever Personnel changes are required?

Are there any sacred cows? Will the son of the owner be working for me? How was each member of the future staff evaluated in the most recent performance review?

6. How would you describe the culture of the company?

This is a critical question? You need to carefully reflect on the words you hear. Do you hear words like “collaborative”, “team-oriented”, “happy”, “motivated” or do you hear a lot of “I”, “I”, “I” and “me”, “me”, “me”?

7. How does your future boss describe his boss?

Does it sound like they work well together or do they just tolerate each other? Does your future boss appear to be happy with the organization or does he/she appear to be anxious and frustrated?

8. What resources will I have to do my job?

Does the company have programs to develop their staff? Do the sales reps receive ongoing sales training? Are there any processes in place to train people on best practices? Are any funds budgeted for employee development?

9. How would you describe my potential career path with your company?

If I perform well in this job, where can I expect to be in 3-5 years?

10. Please outline the key components of my compensation package?

What is the base salary and how are salary increases determined? How is the Incentive Program structured and what levels of performance have to be achieved to be paid an incentive. Is there a cap on the incentive program? What is it?

11. How frequently are the performance reviews conducted?

What is the performance review process in this company? Is it in writing? Who else has input into my performance appraisal? Is my salary increase tied directly to my performance review?

Clearly, some of these questions are difficult to answer, That is the precise reason why they need to be asked and answered. If you cannot obtain clear, direct answers to these questions, is this a company that you really want to work for? Based on what you have been told, do you feel comfortable putting your future and your family’s future in the hands of this organization? If the answer is yes, then “best wishes and much success.” If not, keep looking. For a peak at some of the jobs currently available in the transportation industry, go to the "Careers" section of my company’s website or click on www.dantranscon.com/careers.

August 25, 2007

Staying Ahead of the Crowd

One of the services in most demand from my company is freight bids. In this type of exercise, a shipper tenders a large block of traffic to a group of carriers and asks them to submit bids. The bids, whch consist of qualitative and quantitative information, are analyzed to come up with a short list of prospective carriers. At this stage, meetings are held with the short listed carriers to assess the value of their respective proposals.
During the past week, one of my clients and I met with 20 carriers over a 3 day period. At the end of this undertaking, it was interesting to take stock of which carriers stood out from the pack and which ones did not. Since this group of carriers represents a microcosm of the entire trucking industry, it is worthwhile reflecting on those items that differentiate the superior carriers from the rest of the pack. Here are a few thoughts to consider.

Executive Participation

Superior trucking companies are led by executives who are actively engaged in their businesses and who lead by example. Rather than sending a sales rep to secure a large block of business, they go to the front lines and demonstrate their personal commitment and interest in meeting their top customers and prospects. They lead and provide support to their sales and operations personnel.

Pride and Passion

The employees of a superior transport company walk through the shipper's door wearing their company pride on their foreheads. They are passionate about the company's commitment to quality and providing excellent service. The sincerity of their words comes across to the shipper and instills a level of confidence in them and their company.

Teamwork

Sales and Operations work together in the superior companies. They are represented in the meeting. They each know what is going on with the account or if it is a new piece of business, they each want to know first hand, what is required to provide exceptional service. It is very embarassing when an incumbent carrier walks in and indicates that they are not aware of the problems that are being experienced in using their company. This is a great way to lose the business.

Value Proposition

For the most part, Marketing from a transport company is an oxymoron. It is unbelievable how many transport companies forget to communicate their value proposition, those lanes and services where the company excels. This is an area of considerable weakness in many transport companies. The superior transport companies communicate their value propostion, they provide names of customers that are using the services, where they excel, as references and they provide evidence to support their claims. As an example, one carrier presented their Ryder Logistics scorecard. They were very proud to show us that they had achieved an excellent service record with Ryder. The superior transport companies don't sell price, although they are price competitive. Based on their track record or third party evidence, they demonstrate their service excellence.

Know what you want and what you can do

The superior transport companies come into a meeting with a shipper knowing what blocks of business they want and what they can do. If they have a small fleet, they don't come in saying they can handle 25 truckloads a week. They know what lanes they service well and they know how many trucks they can make available to service the client. They don't overcommit. They are practical, realistic and focused on what they can do well. They know that if they start small and do a great job, they can build on their track record and be awarded more business over time. They don't position themselves for failure by being greedy. They are prepared to serve in a backup capacity and earn their way into a number 2 or number 1 ranking.

While this all may sound simple and straightforward, it is clear that it takes time to create a superior company and to maintain this performance over time. The superior transport companies create and sustain a culture that fosters teamwork, communication, pride, passion and a focus on being the best at what they do well.

About August 2007

This page contains all entries posted to Dan Goodwill Blog in August 2007. They are listed from oldest to newest.

July 2007 is the previous archive.

September 2007 is the next archive.

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