The Secret To Getting The Most From Your Training Dollars
By Bob Boyles, Princiapal
Smarter Distribution

Read just about any distribution magazine that publishes articles from consultants and you will read the same advice over and over again, "train your people". Yet most of the wholesaler I visit have a problem with turn over that has only been eased by the slowing economy. I have to ask myself if the advice I’m reading from consultants and what I’m seeing out in the real world are at odds or not? I believe that the answer lies somewhere in between these two.

Most distributors have trouble committing to a training program. Usually the training takes place when a new software package is purchased and not very often otherwise. The common refrain is that the employees are too busy to take away from their duties for something where the return is so dubious. Talking to the ownership of some wholesalers they confess that with employee turn over being a problem they are tired of being told to train their employees only to see the investment walk out the door. You’ll have to admit there is certain logic there.

Consultants are constantly pushing the training button because they see the results of poor training as being tied directly to poor customer service. They also are correct. Customer service is one of the key areas of competitive advantage for wholesalers.

It may a surprise, but I think there is a better way to handle this troublesome topic. There are ways in which you can achieve both lower turn over and greater operational efficiency.

First, document. This is the area where distributors do the poorest job. Walk into 99% of the wholesale distributors in this country and ask to see an operations manual and you’ll be shown a dusty document that more than likely is propping up a wobbly desk. But wait until the MIS manager is out of the office and the printer goes down and the frantic calls start coming in droves. First the MIS manager’s cell phone rings off the hook then to the calls get funneled to the software companies’ support lines. And yes, they do put you on hold and chuckle when you’ve been on their system a dozen years and call in to fix minor problems over and over again. And you know that the computer never breaks when the computer guy is in the office, it has a sixth sense and waits until he’s on vacation and there’s an order for your largest customer stuck in the system. Simple documentation could have saved the day and saved face with the customer. Wholesalers spend hundreds of hours on their safety stock calculations to prevent an embarrassing situation with a customer but will not spend a nickel to prevent these kinds of problem with their operations. You do not need to write "War & Peace" here, just some simple instructions in case the MIS manager gets hit by a bus.
Mention documentation to most distributors and you’d have thought we were going to discuss in-grown toe nails or Einstein’s theory of relativity because most of them get a sour look on their face and run for the door. But once you make the connection between training and customer service and profitability documentation will take on a whole new luster.

Those companies that have multiple locations need to stop and re-read the paragraph above. Documentation is the ONLY way you are going to get every one doing their daily tasks the same way. Your only other option is to get in the car and drive down there every single time something goes wrong. The problem is that you are only going to know about 1/3 of the instances when someone didn’t know what to do with an order or purchase order. If you have multiple locations and do not have an update operations manual you are asking for trouble.

Second, cross train. This is the area where you can realize your greatest return and also the area that managers have the hardest time letting go. Guess what would have happened in the situation above if there had been someone else in the office that knew how to reset the printer? Problem solved in half the time or less right. Every time I sit down with a customer and discuss a training agenda the distribution management immediately focuses on dividing everyone up by functional area and segregating the training. The few times that companies have taken to the idea of cross training there have been some surprising results. Just like seeds cast out on good ground and bad the training takes hold with some employees even though it’s outside of their functional area. These folks are your super stars! They are the ones that care enough to do their job right and want to learn all there is to know about what goes on at their company. Yes, sometimes the training falls on deaf ears but unless you’ve already determined who your superstars are this is a pretty good trail. Don’t get me wrong here, I’m suggesting that the warehouse manager needs to take a computer programming class. But I am saying have at least one other person trained to handle someone else’s job in the branch and at the company level. The benefit you’ll see when an employee realizes that he’s been designated the backup for a certain position is a loyalty that’s hard to buy with dollars. You’ve expressed confidence in his ability and he’ll pay you back with the only currency he has at work and that’s effort & commitment.

Everyone knows that new employees need to be trained, but what about existing employees? The answer is a solid, "Yes". It never fails when I’m training the current employees that may have been on the job for years that we will uncover some basic ideas that they’ve never heard of and that can save them thousands (dollars and hours are interchangeable here!). These folks have gotten into a rut and need to have someone help them see the light. Training is the way to accomplish that goal.

Third, motivate. Any training program that is not accompanied by a motivational program is reaping only half the results. I recently spent the week with a distributor that has every employee on a compensation plan tied to some performance measure. The enthusiasm at that company was noticeable. And yes, they are prospering in these tough economic times, no need to wonder why! Take some humble advice here and talk to a consultant and learn from the mistakes he’s made in the past before attempting this one.

Fourth, communicate. Those companies that have published goals for performance and measure their success against those goals are the ones that I’ve seen achieving optimum performance. Every employee should be able to define success for their department and the other departments within the company. Want to issue fewer credits? Want to hold the salesmen responsible for issuing fewer credits? Then let them know where they stand today and how that compares to their goals for the year! An old boss of mine used to say "inspect what you expect". (It’s amazing how much smarter those old guys have gotten as I get older!)

Fifth, examine new training options. The information revolution has come to almost the entire American commercial landscape yet there are still distributors in this country that when I walk into the door, remind me distinctly of the 1970s. Today you have the options of doing training in person, via videotape, via satellite transmission or via the internet. Don’t get me wrong there is nothing that can fully take the place of the give and take you can have with a knowledgeable and caring instructor standing right in front of you. The ability to discuss your issues and resolve them in a timely fashion on your terms can be priceless. But there are less expensive alternatives and a smart company will look to mix these training options to achieve a desirable level of effective teaching at a reasonable cost.

Smarter Distribution offers webinars where you can listen to on the phone while following the presentation over the Internet. What makes this training environment effective the interactive feedback that can take place over the computer during the session. Additionally each person receives a copy of the presentation and individualized phone follow up. The unique methods employed make the arrangement workable with just about any computer and Internet hookup. The opportunity to offer training to your staff at a reasonable upfront expenditure with no travel cost involved is a remarkable way to mix in less expensive remote training with expensive on-site training. This gives you the opportunity of lowering the cost while increasing he reach of your training dollars.

Hopefully these three suggestions will be the groundwork for rethinking your company’s approach to training and operations.

About Bob Boyles and Smarter Distribution:

Bob Boyles started his strategic consulting business in 2001 and has focused on the change that technology is forcing in the supply chain and how independent distributors can not only respond to that change but also maximize the return they are seeing on their investment. Bob has spent a significant amount of time as an Installation Consultant for several of the big name software companies in the distribution market. Working with hundreds of distributors across the country on installing, upgrading and utilizing their software.  Bob also worked as Corporate Systems Manager for one of the largest electrical wholesalers in the country as that company moved from a completely manual operation to an on-line real-time system. 

Bob is a graduate of Appalachian State University (BS - 1981)and University of North Carolina at Greensboro Graduate School of Business (MBA - 1985).

© Copyright 2002, Robert S Boyles, Jr. All rights reserved. This article cannot be reprinted or reproduced in whole or in part, without the express written permission of Robert S Boyles, Jr.