On a day to day basis, I meet with and speak to executives of trucking companies throughout North America. Every trucking company is dealing with the same issues of high fuel costs, the “freight recession” and the other challenges facing the industry at this time. What is striking is that some companies are actually thriving in these difficult times, growing their top and bottom lines, sometimes in double digits. Others seem powerless to defend themselves.
They recount their tale of woe, talking about the number of pieces of equipment being parked by one competitor and the poor financial results of another. They mention the facts and rumors as almost a source of comfort. It is alright if we “go down the tubes” since everyone else around us seems to be in the same boat.
What I notice is the CEO’s of “losing” companies speak in a different way from the CEO’s of “winning” companies. They use different language and look at the same world with a very different perspective.
When you ask a “losing” CEO about challenges, they talk about fuel, the dollar and in the case of Canada, the disappearance of southbound freight and their inability to create profitable round trips. They state that they “can’t do” this and “don’t want to do” that. They cannot enter new markets since they cannot find backhaul freight. They cannot expand their value position since they don’t want to partner with companies they don’t know or trust. They cannot find new business. Some think they can shrink their way to success. In fact, when I asked one CEO where his company will be in three years, his response was “we will be out of business.” How’s that for a self fulfilling prophesy?
The “winning “CEO’s see the world differently. They use words like “are doing” this and “can do” that. They talk about taking market share from failing or disappearing carriers, expanding their existing markets, and purchasing companies at favourable earnings multiples. They talk about growth. They inspire their teams with their positive energy.
This begs the question, is this positive energy foolish bravado or is it the confidence in knowing that you are on a path to success? Can they really lead their teams to the “promised land” during these difficult times? The answer is yes they can and yes that is what they are doing. Behind their positive energy are a sound business plan and a solid, motivated, well directed team. These companies know their niches. They are fighting hard to dominate their niches and differentiate themselves with transportation and non-transportation related initiatives.
They are looking at the offence and defense of their competitors. They are devising solutions to put them out of their misery. They are growing their businesses by adding value, building their existing beachheads, adding new ones, thinking out of the box. They are moving positively and aggressively while others are hunkering down, cowering, waiting for their companies to fail.
Clearly, it is all about leadership. Is your trucking company going out of business because of you? Are you so married to old paradigms that you cannot or will not reach out for help, cannot or will not listen to the ideas of your employees, customers and others? If you cannot do it, either on your own or with some new leaders, isn’t it time you reached out for help?
To turn the ship around, invite your leadership team into the boardroom and complete this exercise. Prepare a list of the major opportunities and challengers facing your company at the present time. Rank them in terms of bottom line impact if you could overcome your challenges and turn your opportunities into successes. Once this exercise has been completed, go through the exercise of identifying everything you could do to overcome these challenges. Develop action plans, timelines, and accountabilities and make it happen. Commit to a “yes we can” and “yes we will” attitude and you are on your way. Now, go do them. Good luck and let me know how you make out.