the guide to leadership success · leader that delivers success: fulfillment the second outcome...

Inside: Twelve experts share strategies to help your dealership outperform the market

THE GUIDE TO

IN 2015

LEADERSHIPSUCCESS

FEATURING 7 MDCE Speakers

THE GUIDE TO SUCCESS IN 2015LEADERSHIP

PRESENTED BY: MRAA.COM/CERTIFICATION 2

Dear MRAA Retail Member,

Welcome to the MRAA Guide to Leadership Success in 2015, available exclusively to you, retail members of the Marine Retailers Association of the Americas. MRAA produced this guide in partnership with the Marine Industry Certified Dealership Program to give you insight into the leadership and management skills it will take to be successful in 2015.

This is one of four Guides to Success that MRAA is publishing this year for association members, as part of our commitment to providing resources, tools and benefits you can put to work to grow your business.

This invaluable guidebook is a compilation of contributions from experts who offer you benefits through the MRAA Rewards Program and who speak at MRAA events, like the Marine Dealer Conference & Expo. Together, they offer you and your team dozens of tips, ideas, strategies and best practices for maximizing effective leadership skills and leading your team to its highest potential in the year ahead.

Articles published in the MRAA Guides to Success in 2015 are designed to complement the incredible value offered to members during the MDCE. When combined with the notes, contacts and new ideas you’ll collect at this year’s event, you can’t help but enter 2015 prepared for new levels of success.

Thank you for supporting MRAA and its partners. We’re here to serve you with training, tools, resources, products and services designed to make a difference for your dealership. Got an idea for how we can serve you better? Please stop by the MRAA booth in the MRAA Rewards Pavilion at MDCE, give us a ring or drop us a note. We look forward to hearing from you soon!

Sincerely,

Lindsey Johnson Sonja MoseleyContent Manager Director of Certification, MRAAMarine Retailers Association of the Americas Marine Industry Certified Dealership [email protected] [email protected]


PRESENTED BY: MRAA.COM/CERTIFICATION

Page 4The 4 Myths of What Motivates UsBy Chester Elton

Page 6 Simplifying Leadership: The 2 Outcomes of Effective Leaders By David Spader, John Spader & Dr. Michael O’Connor

Page 8 6 Ways to Keep Your Employees Pumped During Busy Season By Chester Elton

Page 9 Create a Culture of Clarity By Fran Olsen

Page 10 Health Care Reform: How to Prepare for Upcoming Deadlines By Jeff Englander & Bruce Van Wagoner

Page 12Hiring Winners: Why It’s Critical to Financial SuccessBy David Spader

Page 14 Take Charge of Your Dealership’s Financial Present and Future By Pat Kennedy

Page 17 7 Things Motivated People Don’t Do By Chester Elton

Page 19 New vs. Used: What Business Do You Want to Be In? By Robert Grant

Page 21 9 Leadership Lessons From the Best Boss I Ever Had By Ryan Estis

Page 23 Take This Job and Love It By Chester Elton

Page 25 Every Principal’s Dilemma By Tom Deans, Ph.D.

Table of Contents



The 4 Myths of What Motivates UsBy Chester Elton

What would make you happier at work? Ask most people, and they’ll say, “More money.” Ask most business authors, and they’ll recite a list that includes everything but money. So… who’s right?

After studying 850,000 people over the past decade, here’s what I’ve found: All of us host a unique blend of motivators; core drivers that should guide us in sculpting the work life that’s right for us. Some people are, indeed, driven by money, while others are motivated by using their creativity, developing talent or solving problems.

Frankly, it’s hard to self-diagnose when it comes to motivation; human psychology is complex. There’s no WebMD to plug in our myriad hopes and worries, passions and frustrations. But while what motivates us is complicated, prevailing wisdom about the subject has been marked by an unfortunate set of oversimplifications and myths.

Here, I try to debunk a few:

MYTH #1: MONEY IS NOT A MOTIVATOR.

THE TRUTH: IT IS FOR SOME. John D. Rockefeller, at one point the world’s richest man, was asked by a reporter: “How much money is enough?” He responded, “Just a little bit more.” He had more money than he knew what to do with, and he was driven by what? Making more! A portion of the working population is, indeed, motivated by money, and they are not all greedy or hedonistic or poor. Professor Steven Reiss of Ohio State University, a Yale-educated Ph.D., explains, “Individuals differ enormously in what makes them happy — for some, competition, winning and wealth are the greatest sources of happiness; but for others feeling competent and socializing may be more satisfying. You can’t say some motivators, like money, are inherently inferior.” For many people we’ve interviewed, how much they earn is a confirmation of their personal value and their contributions. Others see compensation as a source of validation or a source of freedom and empowerment.

MYTH #2: FEAR IS THE BIGGEST MOTIVATOR.

THE TRUTH: SHORT TERM, YES; LONG TERM, NO. You may assume that in this enlightened age no manager could think that fear works as motivation, but every year I’m asked to work with a bevy of leaders who really do believe the best motivators are negative:

Threats, withholding rewards, pitting teammates against each other, and so on. Our research team uncovered some intriguing insights into the psyches of working individuals; most fascinating was the set of 23 positive workplace motivators that drive each of us. Yes, each person can be influenced by negative motivators short-term, but those never drive deep satisfaction and

engagement in our



work. What creates high performance over time are positive concepts: A chance to excel, serving others, working with a great team, recognition, making an impact, having fun, and so on. As we spoke with one hospital administrator about this, he reached an epiphany: “What motivates a labor-and-delivery nurse is vastly different from what motivates an emergency room nurse or an oncology nurse, but we’ve been treating them all the same — they have all been ‘nurses’ to us. We need to give each nurse specific assignments they’ll find motivating.”

MYTH #3: HAPPINESS IS CLIMBING THE CORPORATE LADDER.

THE TRUTH: NOT FOR MOST PEOPLE. Coming out of college, there are strong societal pressures that make us believe that promotions and job changes will make us happy. After all, we’ll have more power, wealth and importance. So instead of following

where they are most passionate and where the organization needs the most help.

MYTH 4: I’VE ALWAYS BEEN MOTIVATED BY _________ (FILL IN THE BLANK).

THE TRUTH: MOTIVATIONS CHANGE AS WE AGE. Unlike our personalities that are largely formed when we are children, and strengths that often remain more constant through life, motivations usually change with our age and station in life. What motivates someone just graduating from high school or college can be quite different when he or she has a few kids at home, or when those kids have left and he or she is perhaps nearing a second act in his/her career. For instance, our research has shown a large number of people start out in life driven to be regularly recognized, make a good wage, and achieve a prestigious high-level position, but as goals are achieved

ABOUT THE AUTHOR:Chester Elton, along with co-author Adrian Gostick, is the New York Times bestselling author of “All In” and “The Carrot Principle”. His latest book, “What Motivates Me,” was released Sept. 30, 2014. Elton delivered the Opening Keynote address at the 2014 Marine Dealer Conference & Expo.

The savviest leaders are realizing the power of individualized motivation and are shaping their employees’ roles and goals by

asking them to take control of their own career development

our passions, we take the safe path up the mountain of achievement. While this may be rewarding for some — those driven by ideas such as ownership, money and prestige — it won’t be for the majority of individuals driven by other motivators. As we’ve spoken with hundreds of leaders over the past few years, we’ve found the savviest are realizing the power of individualized motivation and are shaping their employees’ roles and goals by asking their people to take control of their own career development. It’s a refreshing change in corporate leadership: Putting the impetus on employees to come up with their own development plans and then closely working with them to ensure they have the right assignments, training and opportunities to grow

or life situations change, so do their motivations. Some have children they want to spend more time with, while others are more determined to do work that contributes to a noble mission.

Bottom line: If we want to be happily engaged in our work and performing at our fullest potential, we’ve got to look inside ourselves to understand what truly motivates us. We can’t rely on what others think we should be doing, or be enslaved by preordained notions of what the world says motivates us. All of us host a unique blend of motivators; core drivers that should guide us in sculpting the work life that’s right for us.



Simplifying Leadership: The 2 Outcomes of Effective LeadersBy David Spader, John Spader and Dr. Michael O’Connor

Try typing the topic “leadership” into Google. You are likely to receive more than a half-billion hits. Anyone can choose to write articles, blogs or books with the claim they will enlighten or educate the rest of us. Opinions abound about the best leadership approach, style, personality and habits. How can we sort through all these messages to find those select few that are valuable and worth our time? A good place to start is to identify those specific key outcomes that mark higher-performing leaders.

Our experience in working with dealers for more than 35 years has taught us that a leader’s approach must produce two outcomes:

1. Success 2. Fulfillment

In higher-performing companies, these outcomes are not separate but intertwined. Here’s a look at each outcome to better understand how we can produce them as effective leaders.

SUCCESS The first outcome associated with an effective leader is success. Success is measured in terms of results produced. While you might assume results are measured in dollars and cents, more effective leaders understand that results are important in both the financial and human objectives that the organization needs to accomplish for stability and growth.

The harder-side, financial types of objectives are measured in terms of profitability, efficiencies, sales growth, etc. The softer-side, people-related objectives include competencies, productivity, repeat business, etc. An effective leader delivers results across this wide spectrum of both financial and human areas in order to keep his or her company competitive and thriving in the rapidly changing and evolving marketplace.

Here are a few questions to help you determine whether you are a leader that delivers success:

FULFILLMENT The second outcome effective leaders deliver is fulfillment for key stakeholder groups. By contrast with success, fulfillment is sometimes assumed to apply to the softer, people aspects of the business. However, as with success, fulfillment is a key outcome on both the people and financial sides.

Economic fulfillment can be measured in terms of customer satisfaction, solid business exit strategies, sound leadership succession plans, etc. On the people side of the business, fulfillment may be measured in terms of satisfaction, commitment, loyalty, high morale and dedication.

Here are a few questions to help you determine whether you are a leader that delivers fulfillment:

Our experience (and the mass of leadership advice available) indicates that most dealerships and leadership teams don’t consistently deliver both success and fulfillment. Leaders of organizations are often better at one than the other, with too many being no better than mediocre at either!

Stakeholder Group Ways to Measure Success

Customers Do our customers view us as more competent and capable than our competitors?

Employees Are our employees highly productive and do they continue to get better?

Owners Is our return on investment consistently strong during both positive and negative market conditions?

Community Do we positively contribute to the ongoing success of our community?

Business Partners

Do our business partners (manufacturers, vendors and others) view us as a reliable and consistent performer?

Stakeholder Group Ways to Measure Fulfillment

CustomersAre our customer relationships characterized by extremely high satisfaction, loyalty, repeat business and trust that our competitors struggle to match?

EmployeesDo our employees demonstrate passion, commit-ment, loyalty and personal fulfillment? Do they enjoy coming to work every day?

OwnersDo our owners model the behaviors and desired culture that strengthens our business? Do our owners have clear strategies for future fulfillment personally and for the organization?

CommunityAre we actively engaged in significant activities that strengthen our community while also providing em-ployee fulfillment?

Business Partners

Do our business partners view us as committed to their success as well as ours?



A dealership we recently worked with has been financially successful for several years. However, their leadership team expressed exasperation, despair and frustration. They weren’t finding meaning

in their work, and this lack of fulfillment was obvious from their comment: “It just isn’t fun anymore.” Their organization was

experiencing success without fulfillment. Over the longer term, without change their financial success is likely to reflect this lack of attention to these two critical, intertwined outcomes.

Compare that dealership to another in which the employees, leadership team and customers are quite happy and satisfied, even though their business stability is at risk because of lack of financial success. Most of their employees enjoy going to work and feel a deep commitment to both their company and their customers, but the company may go out of business if the level of success is not improved. If that happens, of course, without greater success, this pattern of fulfillment will crash.

The clearest path to sustained, long-term dealership performance is characterized by leaders that deliver both success and fulfillment. The combination of these two key leadership outcomes may be your missing link.

ABOUT THE LEAD AUTHOR:David Spader serves as a lead trainer and consultant for Spader Business Management. His areas of specialty include leadership development, succession planning, strategic development, company culture, and effective hiring practices. He is the primary instructor for Spader’s Leadership Development Programs, Effectively Leading and Managing Employees Workshop, and Hiring Winners Workshop. He also is a lead instructor for the Total Management 2 Workshop. In addition, Spader spends a significant portion of his time providing hands-on coaching for executives, managers and future leaders throughout North America. He holds degrees in psychology

(organizational) and theological studies.

In higher-performing companies, success and

fulfillment are not separate, but intertwined.



6 Ways to Keep Your Employees Pumped During Busy SeasonBy Chester Elton

Summer typically is the busiest time of year for marine retailers. Your challenge is to keep your people focused during the long hours when all their friends are vacationing, barbecuing and waxing body parts that haven’t seen the sun since last fall.

Since July and August can be a time of burnout for your employees, let me offer up six ideas that great leaders use to keep their people engaged and energized during the hectic summer months:

1. Make work a game. Your people spend their free time playing games — waterskiing, surfing, golfing, fishing — so why not make work more of a contest? Set goals to sell more of your products, meet more client needs, earn more smiles, etc., and then reward the winners with prizes (maybe even a trip to MDCE, a great training opportunity!). Another idea: Hold a lunchtime trivia contest with questions about company products — again, with prizes for the champs.

2. Take a break together. When it’s slow — maybe just before you open in the morning — get together and do something active together. Throw a Frisbee around in the back or shoot some hoops; the athletes and the clumsy all together. And pay people for that time! Or, perhaps on a night when you’re closed, have a chili cook-off with employees. Have them bring their best recipes and the winners get prizes. It’s your job to help your team feel like more of, well, a team — and summer is an important time to do just that.

3. Use your stuff. Cultures that are effective at appreciating excellence are up to three times more profitable than their competitors. So recognize your top achievers. And why not reward them with your products? Let them take a boat or other equipment on their day off. That’s a reward that will pay off in multiple ways — increased product knowledge and excitement are just a few.

4. Institute a fun summer tradition. Play a great summer song way too loud each afternoon at 2 p.m. (and let a different person chose the music each day). Bring in doughnuts every

Monday morning, or have a pot luck lunch on Wednesday, or wear your favorite baseball or soccer team jersey on Thursday, or keep a Scrabble game ongoing Fridays with teams of two competing against each other. I’ve also seen teams adopt a group mascot (a stuffed monkey, rubber chicken, even a GI Joe doll) and take it somewhere on their days off. Funny photos are brought back to the office and much hilarity ensues.

5. Celebrate the happy among you. Employees at Budget Rent A Car (another busy place in July and August) spend each week, all summer long, voting for the happiest person. At the end of each day employees cast votes, and on Friday the winner finds balloons at his or her desk. It’s a great way to keep things light, and certainly more pleasant for customers.

6. Conduct “previews.” Even though you’re busy, summer is a vital time to conduct what we call “previews” — not long, formal reviews, but rather a chance to chat for just a few minutes with each of your direct reports and see how they are holding up, how they are progressing toward their goals, and, more importantly for them, what their career ambitions are and what you can do to help them achieve those goals. These don’t need to take place in a formal work environment, either. Take them out for a quick lunch or a walk around the block.

In great retail cultures, leaders keep productivity high in summertime. The point is to keep things fun during these months, but also help your people focus and stretch to reach their goals. Remember: The customer experience will never exceed the employee experience you create for your people.

Who knows; you just might end up having the best summer ever. Good luck!




ABOUT THE AUTHOR:Fran Olsen is a charter executive with Customer Service Intelligence (CSI). Having served as vice president of sales and marketing for 15 years, she’s now in charge of corporate development. Olson’s entire career has been focused on the customer-centric aspect of sales. For more information, Olson can be reached via e-mail at [email protected] or by calling 800-TELLCSI.

Create a Culture of ClarityBy Fran Olsen

Are your employees reflecting your company culture, or are they deflecting it?

Hmm — ever thought about that?

Does your company have a clearly defined culture? Does it have a plan to thread that culture throughout your operations… so that customers are firmly fixed on what they can expect from you and your employees on a daily basis?

Ever thought about that?

As Yakov Smirnoff says, “You vill now!”

Gone are the days when haphazard positioning produces the level of excellence that’s expected by today’s discerning customer. Make no mistake: All customers today are discerning; they know they have choices, and they don’t hesitate to exercise that freedom. Look around you, and you’ll see that all your colleagues who didn’t believe that have exited the business.

Cutting-edge excellence is the only approach that’s a sure bet.

While we’re on that subject, please congratulate yourself for being good enough to have made it through the last great purge. At the same time, caution yourself to know that what you did then got you to where you are today; but there’s no room for complacency. Tomorrow’s challenges require the absolute best from every member of your organization.

“All I have remaining is the ‘A-Team,’” you may say. But are you giving the A Team what it needs in order to deliver the A+ service that you intend — and ultimately need — to deliver?

Do you have a clear-cut focus on what “A+ service” should look like coming from your company? Are you part of the “A Team?”

That’s right: Excellence is driven by a culture that comes from the top down; by a culture that infuses processes designed to assure the level of competency that cannot be left to chance.

Please note there’s no “i” in “team,” but there are 3 “i’s” in “divisive,” which is the alternative of having no positive plan guiding each team member. Just “expecting” that they do their best in order to survive is not adequate. Establishing and enforcing procedures is paramount

to producing the desired performance.

“Track, Measure, Manage” is a mantra that succinctly describes a path for as-close-to-perfection performance as you can hope to achieve.

CSI (Customer Satisfaction Index) Ratings have been in vogue for more than two decades with good and bad connotations, depending on the circumstances. The CSI Rating itself can be misleading if it’s not acquired and accomplished with a carefully created culture behind it. CSI Ratings that are garnered through “leading” questions and intimidating interviews might get you a plaque at the end of the year or kudos from whomever is above you in the pecking order, but they do nothing to assure the future of your company.

A clear-cut culture statement must be at the base of company operations, with a method for all employees to buy into the culture, fully understand the process, and be given ongoing feedback to know how it’s going on a daily basis, both good and remedial.

Expecting without inspecting is foolhardy.

Tracking and Measuring are only two parts of the trinity for top-level team output. Managing is what will hone the daily efforts that produce the long-term consistency necessary for excellent performance.

There was a time when a CSI Rating of 100 percent on a continuum was just a dream. In today’s reality of Track, Measure, Manage, however, it’s a documented experience.

Can you call it a dream come true? It’s not a dream; just daily diligence with a culture and a plan. And it can be yours. Excellence is only elusive if it’s left to chance.

Create a culture that has the clarity of a still lake — and the processes needed to enable every employee to reflect that desired culture — and watch your business flourish.



Health Care Reform: How to Prepare for Upcoming DeadlinesBy Jeff Englander & Bruce Van Wagoner

Following a one-year delay in enforcement and the implementation of a transition period intended to ease employers into understanding and complying with the Affordable Care Act (ACA), the so-called employer mandate will officially become law Jan. 1, 2015.

Despite the fact that more employers appear to be aware of their requirements under the law, a recent study by the Transamerica Center for Health Studies found that almost one-third report being less-than-satisfied with their level of knowledge about the law.

As a result, with that deadline fast approaching, employers must make sure they’re prepared to either implement the employer mandate or take advantage of the potential incentives in the ACA that apply to them. In addition, it may be helpful for dealers to consult legal counsel for guidance. For example, those with more than 100 full-time employees will now be required to offer healthcare coverage to their employees who qualify, while conversely, those with 25 or less full-time employees and whose employees meet certain wage thresholds may be eligible for certain employer incentives and tax credits.

REQUIREMENTS FOR LARGE-SCALE EMPLOYERS Let’s take the case of a marine dealership with multiple locations that has 100 or more full-time employees. Suppose its management team has determined that it’s subject to the ACA’s employer insurance mandate. As a result, beginning in January 2015, the dealership must offer qualifying and affordable healthcare insurance to 70 percent of its full-time employees or pay a penalty. Under the transitional rules noted above, the penalty would be equal to a maximum of $3,000 per year (assessed monthly) for each full-time employee, in excess of the first 80, that receives subsidized healthcare coverage through a health insurance marketplace. (These thresholds change beginning Jan. 1, 2016.) While employees could choose to buy coverage voluntarily through a marketplace, even if their employer offered qualifying and affordable coverage, under these circumstances, employees wouldn’t be entitled to receive subsidized coverage and would not be able to apply any portion of their employer’s contribution for healthcare coverage towards insurance purchased on a marketplace — hence employees would have less economic incentive to purchase non-subsidized coverage on an exchange.

REQUIREMENTS FOR SMALL-SCALE EMPLOYERS Alternatively, let’s look at a different example from a smaller employer. In this case, it’s a marine dealership that currently has 10 full-time employees, and management has determined it’s not subject to the employer mandate. Since this dealer is below the number of full-time employees that would generally make it subject

to the employer mandate (100 in 2015 and 50 in 2016), this dealership would not be subject to a penalty. In fact, when an employer has 25 or less full-time or full-time-equivalent employees whose average wages per employee are $50,000 or less, then they would qualify for tax credits as long as the employer pays at least 50 percent of the employees’ premium for healthcare coverage. (Credits are phased out as the number of employees and level of average wages increase.) Since the dealer in question has only 10 employees, they may qualify for tax credits. These are important factors to keep in mind because, according to the Transamerica survey, almost 40 percent of smaller employers don’t know they’re eligible to purchase insurance through a state or federally run Small Business Health Options (SHOP) marketplace.

EVALUATING COVERAGE DECISIONS Once employers have determined whether or not they are subject to the employer mandate or, alternatively, may qualify for tax credits or incentives, there are a number of considerations both economic and non-economic to take into account as they evaluate the coverage decision. The first question any employer has to ask themselves is this: “How much can I afford to spend on group coverage?” In order for plans to be qualified under the law, the employer must pay for 60 percent of the expected cost of benefits (known as “actuarial value”). In addition, for a plan to be considered “affordable” under the law, an employee’s premium for self-only coverage cannot exceed more than approximately 9.5 percent of the employee’s W-2 income with that particular employer.

As businesses work to make these decisions, they may want to consult with their own professional advisors to help them decide what mix of cost and benefits is right for them. In addition, businesses may constantly evaluate their offerings. For example, although more than 90 percent of larger employers say they will continue to offer subsidized health insurance benefits according to the NBGH/Towers Watson Employer Survey on Purchasing Value in Health Care, 75 percent of those respondents noted they had either already updated their health strategy or were in the process of doing so. Along those lines, employers who expect to be subject to the employer mandate may want to begin taking or evaluating several steps now to help manage costs, including:

• Beginning to implement employee wellness plans and establishing incentives to reward healthy lifestyles

• Providing on-site screenings and investigating the use of health



risk questionnaires to ensure that employees are aware of their own health issues such as diabetes, high cholesterol and high blood pressure

• Offering subsidies for employees participating in smoking cessation and weight loss programs, subject to Health Insurance Portability and Accountability Act (HIPAA) regulations

• Encouraging employees to become smarter consumers of healthcare by creating more shared responsibility for healthcare costs

• Appointing health coaches to help employees better manage chronic diseases such as diabetes

Having your employees take a more active role in their health could help reduce or prevent healthcare cost waste or inefficiencies.

Conversely, smaller employers have their own unique considerations. For example, while small employers may be able to offer healthcare

coverage, this could impact their employees’ ability to take advantage of certain benefits under certain circumstances. For example, among other things, small employers should consider the average wages of their employees, since any employee who earns between 100 and 400 percent of the federal poverty level would likely be eligible for

subsidized coverage on an exchange that could be more beneficial. In addition, employers should consider the family status of their employees, because low-wage employees with spouses and/or families would be eligible for subsidized coverage on an exchange that would cover their family members — something that would likely be more costly under their employer’s plan.

In the end, when smaller employers have a large numbers of employees who are eligible for subsidies, they want to compare the final cost to individual employees for employer coverage versus what it will cost on an exchange.

Small and mid-sized businesses should take steps now to ensure they’re prepared for the upcoming changes set out in the ACA. Yes, there’s a lot to consider; so it’s crucially important for each business to consult legal counsel for specific guidance. It’s also important for dealers to implement cost management strategies that can potentially help ease the burden.

ADDITIONAL RESOURCES Implementing the ACA is a complex topic. Business leaders should thoroughly research the law and their options before making any decisions. Additional information is available on the following sites:

• U.S. Department of Labor-Employee Benefits Security Administration (see ACA Implementation FAQ)

• Society for Human Resource Management Healthcare Reform Resource Page

• U.S. Government Healthcare Reform website

• Employee Benefits Research Institute

• National Business Group on Health

• Employee Benefit News

• Small business SHOP Marketplace Tax Credit Estimator

• Small Business Health Care Tax Credit – IRS Q&A

ABOUT THE AUTHORS:Jeff Englander, CFA (pictured left) is a senior vice president and senior research analyst on the GE Capital Industry Research Team. Bruce Van Wagoner is the president of the marine group of GE Capital, Commercial Distribution Finance. The content herein is provided for informational purposes only, and the authors make no representation or warranty as to the accuracy or completeness thereof. Nothing herein shall be deemed to constitute business, financial, legal or similar advice. Readers should not act upon nor rely on this information without seeking advice from the appropriate professional advisers. It is by no means exhaustive and shall not be considered or construed in any way whatsoever to be exhaustive.

Having your employees take a more active role in their health could help reduce

or prevent healthcare cost waste or inefficiencies.



Hiring Winners: Why It’s Critical to Financial SuccessBy David Spader

Most research indicates that between 50 and 80 percent of all hires are not successful, with success being defined as “I would hire this person again.”

The lost productivity, poor service, strain on other employees, training time, and other expenses tied to poor hires lead to an estimated cost of turnover that can easily reach two to 12 times the employee’s annual salary, depending on his or her position.

Consider the fact that lost revenue from the three weeks it might take to replace a technician could easily be more than $12,000 (3 weeks x 40 hours billable per week x $100 labor rate = $12,000). And this is before you have accounted for the additional training that might be required, travel expenses, lower Collect-able™ Efficiency, and a number of other related costs and lost revenue opportunities. The bottom line is that the cost of employee turnover is high. If you hire the wrong service manager, the cost easily could reach six figures quickly (10 percent lower efficiency x 2,200 hours per year x $100 labor rate x 5 techs = $110,000). Here are a few of the most common errors we see inside dealerships regarding the hiring process.

MISTAKE #1: NOT PRIORITIZING THE HIRING PROCESS Given the examples above, it’s easy to see that bad hires are extremely costly at almost all companies.

Not only is the cost of mis-hires and turnover high, but hiring one wrong person can negatively affect your entire dealership. Every time you hire a new employee, your dealership’s culture gets either stronger or weaker. Will that new hire positively or negatively affect the rest of your employees?

As a result, it’s critical to make the necessary time to effectively prepare for, conduct and debrief every interview.

Spending five minutes before the candidate walks into your office simply won’t cut it. If the

potential cost of an error doesn’t motivate you, then maybe the



ABOUT THE AUTHOR:David Spader serves as a lead trainer and consultant for Spader Business Management. His areas of specialty include leadership development, succession planning, strategic development, company culture, and effective hiring practices. He is the primary instructor for Spader’s Leadership Development Programs, Effectively Leading and Managing Employees Workshop, and Hiring Winners Workshop. He also is a lead instructor for the Total Management 2 Workshop. In addition, Spader spends a significant portion of his time providing hands-on coaching for executives, managers and future leaders throughout North America. He holds degrees in psychology

(organizational) and theological studies.

potential discord among your employees will. The damage to your company’s financial performance, morale and productivity are worth a significant portion of your time.

Make sure you prioritize hiring as one of the most important decisions you make during the year, and give it the time it truly requires. It can directly impact your bottom line in a very significant way. You can make the time investment up front, or later on when dealing with performance problems and possibly rehiring.

MISTAKE #2: USING THE WRONG HIRING CRITERIA The single most common criteria most dealers use for new hires is “job-specific knowledge.” While this often is easy to measure in an interview, recent research shows that only 11 percent of bad hires fail as a result of this factor. Ultimately, a candidate should “fit” in three areas. First, new hires should have a high degree of fit with your

dealership’s culture. Second, they should demonstrate the capabilities required to perform the job at a high level. Third, the new hire should have a strong satisfaction-fit and truly enjoy the type of work he or she is doing. Dealerships must have a system that takes all three of these factors into account.

MISTAKE #3: LACK OF A HIRING PROCESS The third major mistake that dealers make is not having a structured hiring process. Many interviews lack two areas deemed critical in the assessment of any person: Reliability and validity. Reliability refers to the ability to replicate results. This means conducting the interview in

a way that consistently measures candidates against the same criteria. Validity refers to using the “right” criteria. It’s possible to consistently hire using the “wrong” criteria (as shown in Mistake #2). Thus, it’s important to have both a valid and a reliable process.

Avoiding these three mistakes is a good place to start improving your hiring practices. Here are the comments of a general manager who implemented a proven hiring process after years of poor hiring and a service department that simply wasn’t working:

“I have hired a service manager, three service writers, two lot porters and seven more techs. It has been two years, and they have all worked out fantastic. Our service manager truly manages the entire department, the service writers are the best I have ever had, and our techs are achieving excellent Collect-able™ Efficiency and deliver a high quality of work. Our (financial) numbers have

almost doubled from our previous peak, and my involvement in the (service) department’s day-to-day operations has gone from excessive to non-existent. Even in the height of busy season, our service department is able to say “Yes” to servicing everyone’s unit, no matter where they bought it.”

As the great management thinker Peter Drucker once said, “The ability to make good decisions regarding people represents one of the last reliable sources of competitive advantage, since very few organizations are very good at it.”

Making sure your dealership has a strong hiring system is a great first step towards getting the right

people in the right seats on your bus!



Take Charge of Your Dealership’s Financial Present and FutureBy Pat Kennedy

“Cash is king,” or so the old saying goes.

While that may be true in many circumstances, it’s true in all circumstances that the dealer principal’s time is the most valuable commodity in the dealership. After all, tomorrow’s cash is dependent on the effective use of the dealer’s time today. No other individual is responsible for more gross, more net profit, more expense control, more HR decision-making, and more strategic planning than that one individual. It’s the striking commonality of nearly every dealer we work with, large or small, losing money or making scads of it — every dealer has the same complaint: “I never have enough time to get everything done, not to mention enjoy a quality family life!” And the sad truth is, they’re right. They don’t.

But are those 60 to 70 hours per week spent doing those busy things the best leverage of available time? Or is every day becoming a series of emergency tasks —the kind of firefighting that exhausts completely while accomplishing little? Our experience is that too many dealers find themselves caught up almost completely in urgent (but ultimately unimportant) activities at the expense of the critical management and leadership activities that truly drive the success of a business.

The monthly financial statement lets us know how well we are executing our strategies and tactics and gives us direct feedback as to

how our year will unfold. Yet when it comes to allocating time to the single most important barometer of a dealership’s health — its financial statements and budget — many dealers find the siren call of other duties irresistible.

And who could blame them? Time after time, when we first start working with a client, we confront confusing, non-industry specific, and, above all, late financial statements. Often these documents require a couple of uninterrupted hours with a Ten Key to decipher. Most dealers can’t find 10 minutes of uninterrupted time, not to mention two hours! Even when they can find the time (at a 20 Group meeting, for instance) it’s frequently old news; we often find dealers struggling to meet the closing deadline of the 20th or 25th for 20 Group reporting, and with new clients it’s not unusual to find that they are several months behind in their statements. If the data you’re getting is 30 to 45 days old or more, no wonder you don’t allocate precious resources to reviewing it — it’s ancient history at that point!

We think this is a shame. Budget and financial statements should be one of the primary guiding lights that direct the dealer’s daily activities, keeping you focused on the important rather than the trivial. Generally speaking, all dealers will come to the right set of conclusions



when presented with a series of facts. Without accurate information delivered in a timely manner, however, even the most clever operator is just flying by the seat of his or her pants. Dealers who are taking action on timely feedback are simply better performers than those who are not.

Given the constraints on dealers’ time, it can be unrealistic to expect a dealer to spend hours and hours pouring over complicated financials. Even if he or she sets aside the time, it’s not often that we run into a marine dealer with a natural like and aptitude for financial data. We believe the answer lies in setting up concise, accurate reporting that anyone can understand and that measures the most important activities of the dealership.

If you can carve out the time, of course there’s no substitute for a detailed study of your entire monthly income statement and balance sheet. However, don’t let good be the enemy of perfect: Just because a thorough financial review is impossible doesn’t mean that you can’t have six or seven simple-to-read reports that let you know how the season is progressing.

Here are eight tips for creating financial reporting that quickly can be understood and acted upon:

1. Get a bookkeeping system and bookkeeper that’s up to the task. It all starts here: Without a competent accounting department, a dealership is ultimately fighting a losing battle. After the dealer principal, the bookkeeper is the most vital key to a dealership’s success. This can be a painful issue in many dealerships, where the bookkeeper is like family (or actually is family!) and has been with the company from the beginning. Unfortunately, accounting skills don’t always grow at the same rate a company does — what worked out fine at $2 million in volume with a handful of employees is unlikely to work out well at $10 million and 20 employees. The elements of quality accounting are the same at all volume levels, of course; but many times we find that the long-time bookkeeper does not have a good grasp of the core principles of the accounting process. Sometimes when the dealership has had significant growth, it’s just holding on for dear life, hoping to make it through the day as opposed to perfecting the department. There are many software programs that can more than adequately do the task at hand, but even the most elaborate,

integrated system will be a mess if it doesn’t have a sure hand at the till. Your goal should be a preliminary statement on the 5th of the month, and a final statement by the 10th.

2. Budget for everything, but decide on the most important elements that you will focus on. There’s no way to microwave your budget — a quality financial plan is only made in the slow cooker. Once a year, set aside a day (or days) to take a deep dive into the results and make your plan for the following year. Whether it’s done in custom software, Excel, or on a yellow legal pad, figure out your next year’s plan in detail before you start the year. Include the changes in activities, inventory and people that will be required to get the new results and determine what will have to happen in order to accomplish those changes. When you get it done, distribute it appropriately and treat it like the important document it is. Tracking variances from budget (and doing something about it) is the hallmark of high performers, but it requires two elements: A quality budget and accurate timely financial statements. Once you’ve completed your budget, take a step back and figure out which are the five to seven most important controllable line items. In most stores, the list probably includes: Boat sales and margins; service sales; personnel costs; inventory levels and flooring costs/curtailment schedule; and cash. Of course there are many more, and in their own way they’re all important; but in the heat of the season, if there’s limited time available, I want to focus my attention on the most critical issues.

3. Set up automatic reporting ahead of time. Once the budget is done, decide how you’re going to get feedback on the top items. Sales and margins could come from a sales report, service activity could come from an efficiency report, and other costs could be pulled from the income statement. Whatever you decide is the best way to get the data, sit down with the bookkeeper and make sure you have a clear understanding of exactly how — and on what date — you want the report. Put this on autopilot: If you decide that you want the reports on the 8th, this should be a hard and fast rule. When you get to the store on the agreed-upon date, the reports should be sitting on your desk, without exception. And you should schedule some time to review them!

4. Look at a high level first, then seek detail if needed. Sometimes, too much detail hides clear trends. The dealer

should check to see if summary level goals are being met before deciding to look at transaction level detail. This should be on a one-page report. In the heat of the season, the goal should be to fix what’s broken: If you’re on target in one area, turn your attention to the next. Your focus should be on the main drivers of revenue and expenses; look to the minutiae only when needed.

5. Use simple, graphic reports. Most dealer management software (DMS) and off-the-shelf accounting systems have one thing in common: Their reporting is in table form. Nothing hides important

If you can’t get the reporting format you need from your DMS, consider exporting the data into Excel and having custom reports made to your specifications. Find someone in your area with Excel expertise to create the report templates you want. Set up the template so your exported data can easily and simply be cut and pasted into the report.

Sales Cost of Sales Gross Margin GM % Sales Cost of Sales Gross Margin GM % Sales Cost of Sales Gross Margin GM %

New BoatsNew Cruisers 865,750$ 802,114$ 63,636$ 7.35% 980,000$ 845,000$ 135,000$ 13.78% (114,250)$ (42,886)$ (71,364)$ -‐6.43%

New Yachts 525,000$ 470,000$ 55,000$ 10.48% 480,000$ 435,000$ 45,000$ 9.38% 45,000$ 35,000$ 10,000$ 1.10%

New Day Boats 165,000$ 145,000$ 20,000$ 12.12% 200,000$ 160,000$ 40,000$ 20.00% (35,000)$ (15,000)$ (20,000)$ -‐7.88%

New Fish Boats 189,000$ 178,000$ 11,000$ 5.82% 250,000$ 210,000$ 40,000$ 16.00% (61,000)$ (32,000)$ (29,000)$ -‐10.18%

New Pontoons 563,000$ 509,000$ 54,000$ 9.59% 600,000$ 560,000$ 40,000$ 6.67% (37,000)$ (51,000)$ 14,000$ 2.92%

New Tow Boats 450,865$ 398,234$ 52,631$ 11.67% 425,000$ 375,000$ 50,000$ 11.76% 25,865$ 23,234$ 2,631$ -‐0.09%

New Jet Boats/PWC 193,000$ 178,000$ 15,000$ 7.77% 200,000$ 180,000$ 20,000$ 10.00% (7,000)$ (2,000)$ (5,000)$ -‐2.23%

New Trailers 86,000$ 78,000$ 8,000$ 9.30% 100,000$ 90,000$ 10,000$ 10.00% (14,000)$ (12,000)$ (2,000)$ -‐0.70%

New other-‐$ 0.00%

-‐$ 0.00%-‐$

-‐$ -‐$ 0.00%

Rebates52,000$ 0.00%

-‐$ 0.00%-‐$

-‐$ 52,000$ 0.00%

Total New 3,037,615$ 2,758,348$ 279,267$ 9.19% 3,235,000$ 2,855,000$ 380,000$ 11.75% (197,385)$ (96,652)$ (100,733)$ -‐2.55%

Used BoatsUsed Cruisers 420,000$ 400,000$ 20,000$ 4.76% 450,000$ 370,000$ 80,000$ 17.78% (30,000)$ 30,000$ (60,000)$ -‐13.02%

Used Yachts 250,000$ 210,000$ 40,000$ 16.00% 300,000$ 265,000$ 35,000$ 11.67% (50,000)$ (55,000)$ 5,000$ 4.33%

Used Day Boats 158,000$ 135,000$ 23,000$ 14.56% 165,000$ 125,000$ 40,000$ 24.24% (7,000)$ 10,000$ (17,000)$ -‐9.69%

Used Fish Boats 100,000$ 82,000$ 18,000$ 18.00% 110,000$ 83,000$ 27,000$ 24.55% (10,000)$ (1,000)$ (9,000)$ -‐6.55%

Used Pontoons 320,000$ 268,000$ 52,000$ 16.25% 400,000$ 320,000$ 80,000$ 20.00% (80,000)$ (52,000)$ (28,000)$ -‐3.75%

Used Tow Boats 148,800$ 121,658$ 27,142$ 18.24% 120,000$ 98,000$ 22,000$ 18.33% 28,800$ 23,658$ 5,142$ -‐0.09%

Used Jet Boats/PWC 50,000$ 42,000$ 8,000$ 16.00% 40,000$ 32,000$ 8,000$ 20.00% 10,000$ 10,000$ -‐$ -‐4.00%

Used Trailers 25,000$ 26,000$ (1,000)$ -‐4.00% 50,000$ 45,000$ 5,000$ 10.00% (25,000)$ (19,000)$ (6,000)$ -‐14.00%

Used other-‐$ 0.00%

-‐$ 0.00%-‐$

-‐$ -‐$ 0.00%

Total Used 1,471,800$ 1,284,658$ 187,142$ 12.72% 1,635,000$ 1,338,000$ 297,000$ 18.17% (163,200)$ (53,342)$ (109,858)$ -‐5.45%

Parts & Accessories

P & A Pro Shop 345,000$ 219,000$ 126,000$ 36.52% 325,000$ 205,000$ 120,000$ 36.92% 20,000$ 14,000$ 6,000$ -‐0.40%

P & A Cust RO 564,000$ 368,000$ 196,000$ 34.75% 500,000$ 300,000$ 200,000$ 40.00% 64,000$ 68,000$ (4,000)$ -‐5.25%

P & A Warranty 168,000$ 158,760$ 9,240$ 5.50% 178,000$ 149,000$ 29,000$ 16.29% (10,000)$ 9,760$ (19,760)$ -‐10.79%

P & A OTC 84,000$ 61,000$ 23,000$ 27.38% 98,000$ 56,000$ 42,000$ 42.86% (14,000)$ 5,000$ (19,000)$ -‐15.48%

P & A Rigging 82,000$ 60,000$ 22,000$ 26.83% 90,000$ 62,000$ 28,000$ 31.11% (8,000)$ (2,000)$ (6,000)$ -‐4.28%

P & A Sublet-‐$ 0.00%

-‐$ 0.00%-‐$

-‐$ -‐$ 0.00%

P & A Fuel 55,000$ 26,000$ 29,000$ 52.73% 45,000$ 22,000$ 23,000$ 51.11% 10,000$ 4,000$ 6,000$ 1.62%

P & A Shop Supplies18,000$ 16,420$ 1,580$ 8.78% 22,000$ 20,000$ 2,000$ 9.09% (4,000)$ (3,580)$ (420)$ -‐0.31%

Total P & A 1,316,000$ 909,180$ 406,820$ 30.91% 1,258,000$ 814,000$ 444,000$ 35.29% 58,000$ 95,180$ (37,180)$ -‐4.38%

Service Labor

Labor Customer RO 188,000$ 188,000$ 100.00% 210,000$

210,000$ 100.00% (22,000)$ -‐$ (22,000)$ 0.00%

Labor Rigging 219,000$ 219,000$ 100.00% 260,000$

260,000$ 100.00% (41,000)$ -‐$ (41,000)$ 0.00%

Labor Warranty 132,000$ 132,000$ 100.00% 145,000$

145,000$ 100.00% (13,000)$ -‐$ (13,000)$ 0.00%

Labor Boat Sales 62,560$ 62,560$ 100.00% 80,000$

80,000$ 100.00% (17,440)$ -‐$ (17,440)$ 0.00%

Total Labor601,560$

-‐$ 601,560$ 100.00% 695,000$ -‐$ 695,000$ 100.00% (93,440)$

-‐$ (93,440)$ 0.00%

Storage/Marina 262,000$ 262,000$ 100.00% 196,000$

196,000$ 100.00% 66,000$ -‐$ 66,000$ 0.00%

Dry Stack Storage-‐$ 0.00%

-‐$ 0.00%-‐$

-‐$ -‐$ 0.00%

Slip Storage-‐$ 0.00%

-‐$ 0.00%-‐$

-‐$ -‐$ 0.00%

Open Lot Storage-‐$ 0.00%

-‐$ 0.00%-‐$

-‐$ -‐$ 0.00%

Total Marina/Storage 262,000$ -‐$ 262,000$ 100.00% 196,000$

-‐$ 196,000$ 100.00% 66,000$ -‐$ 66,000$ 0.00%

Rentals-‐$ 0.00%

-‐$ 0.00%-‐$

-‐$ -‐$ 0.00%

Finance Income 148,650$ 62,357$ 86,293$ 58.05% 140,000$ 55,000$ 85,000$ 60.71% 8,650$ 7,357$ 1,293$ -‐2.66%

Miscellaneous -‐$ 0.00%

-‐$ 0.00%-‐$

-‐$ -‐$ 0.00%

Total All Revenue 6,837,625$ 5,014,543$ 1,823,082$ 26.66% 7,159,000$ 5,062,000$ 2,097,000$ 29.29% (321,375)$ (47,457)$ (273,918)$ -‐2.63%

Actual YTDBudget YTD

Variance



information better than long rows or columns of numbers. Our recommendation is to make your reporting as graphic as possible (Remember, a picture is worth a thousand words!) and use color wherever it make sense. Dashboard reports are great if they include the important details — so your dashboard should include your top issues, not necessarily the canned reporting in the program. Almost every accounting system allows data to be imported into Excel, and from there

it’s straightforward to create charts and graphs. [Please feel free to contact me for sample reports and any other questions about working with your data.]

6. Track inventory. Aging inventory can literally put you out of business. You need reporting that makes aging inventory impossible to ignore. A simple pie chart representing the

percentage of your inventory in different aging categories does wonders to refocus attention on the old-timers out there. Black and white is too bloodless for such an important issue: Make sure your inventory reporting has color, so that problems literally jump out at you. Again, if your DMS doesn’t offer good inventory reporting, export to Excel to manipulate the information and get the reporting you want.

7. Spread the news, good and not-so-good. Make sure that the people who need to know, know. At some level, this includes everyone at the store. Reward and praise high performance and seek collaboration on areas that need improvement. This

is not a call to share confidential information, but rather an encouragement for you to draw your employees into the shared effort to improve the areas they are responsible for. Too often, the front line and supervisory employees are left in the dark, wondering what’s going on. A climate of achievement only grows from a common understanding of the tasks at hand. Without feedback, effort lags and performance drops.

8. Take action now. If you really think about it, the marine selling season is short and intense. In many northern markets, 75 percent of revenue (or more) is earned between Memorial Day and Labor Day. If you wait a month to take action, you haven’t just missed one-twelfth of the season, you may have missed one-quarter or even one-third. When you spot important deviations, deliberate quickly and then vigorously execute a corrective action plan. You’re almost always better served to initiate some course of action — even if it’s not perfect — than to do nothing at all.

This is an example of reorganizing data to make it more decision-maker friendly. These two columns contain exactly the same information regarding variances from budget. Which is easier to interpret?

New Cruisers

(114,250)$ Most Behind BudgetUsed Trailers

-‐50.00% Most Behind Budget

Used Pontoons(80,000)$

New Fish Boats-‐24.40%

New Fish Boats(61,000)$

Labor Boat Sales-‐21.80%

Used Yachts(50,000)$

Used Pontoons-‐20.00%

Labor Rigging(41,000)$

P & A Shop Supplies-‐18.18%

New Pontoons(37,000)$

New Day Boats-‐17.50%

New Day Boats(35,000)$

Used Yachts-‐16.67%

Used Cruisers(30,000)$

Labor Rigging-‐15.77%

Used Trailers(25,000)$

P & A OTC-‐14.29%

Labor Customer RO (22,000)$ New Trailers

-‐14.00%

Labor Boat Sales(17,440)$

New Cruisers-‐11.66%

New Trailers(14,000)$

Labor Customer RO -‐10.48%

P & A OTC(14,000)$

Used Fish Boats-‐9.09%

Labor Warranty (13,000)$ Labor Warranty -‐8.97%

Used Fish Boats(10,000)$

P & A Rigging-‐8.89%

P & A Warranty (10,000)$ Used Cruisers

-‐6.67%

P & A Rigging(8,000)$

New Pontoons-‐6.17%

New Jet Boats/PWC (7,000)$ P & A Warranty -‐5.62%

Used Day Boats(7,000)$

Used Day Boats-‐4.24%

P & A Shop Supplies(4,000)$

New Jet Boats/PWC -‐3.50%

New other-‐$

New other0.00%

Rebates-‐$

Rebates0.00%

Used other-‐$

Used Boats0.00%

P & A Sublet-‐$

Used other0.00%

Dry Stack Storage-‐$

P & A Sublet0.00%

Slip Storage-‐$

Dry Stack Storage0.00%

Open Lot Storage-‐$

Slip Storage0.00%

Rentals-‐$

Open Lot Storage0.00%

Miscellaneous -‐$

Rentals0.00%

Finance Income 8,650$ New Tow Boats

6.09%

Used Jet Boats/PWC 10,000$ P & A Pro Shop

6.15%

P & A Fuel10,000$

Finance Income 6.18%

P & A Pro Shop20,000$

New Yachts9.38%

New Tow Boats25,865$

P & A Cust RO12.80%

Used Tow Boats28,800$

P & A Fuel22.22%

New Yachts45,000$

Used Tow Boats24.00%

P & A Cust RO64,000$

Used Jet Boats/PWC 25.00%

Storage/Marina 66,000$ Most Ahead of BudgetStorage/Marina 33.67% Most Ahead of Budget

Variance Sorted By $$ From Forecast

RevenueVariance Sorted by Perc

entage from Forecast

ABOUT THE AUTHOR:Pat Kennedy is a consultant with Parker Business Planning. He was formerly an RV dealer in San Jose, Calif., until selling his dealership in 2006. For the next three years, he worked as a trainer, 20 Group facilitator, and consultant for Spader Business Management, specializing in the marine industry. Kennedy resides in San Francisco with his wife and two children. He holds a B.A. from the University of San Francisco and an MBA from Golden Gate University.



7 Things Motivated People Don’t DoBy Chester Elton

At The Culture Works, our research teams have surveyed more than 850,000 individuals to learn what makes people the most motivated and engaged in their careers. We found that when individuals are fulfilled on the job, they not only produce higher quality work and a greater output, but also generally earn higher incomes. And those that are most satisfied with their work also are 150 percent more likely to have a happier life overall.

As we researched this subject for our new book “What Motivates Me,” we uncovered seven things that the most motivated, fulfilled people don’t do:

1. They don’t chase the almighty buck (if that’s not what motivates them). Motivation is not about doing what anyone else thinks is right for you, nor is it necessarily about chasing a job that pays well if money is not what floats your boat. It’s about aligning more of your work with what drives you. People differ enormously in what makes them happy: For some, challenge, a drive to excel, and pressure are the greatest sources of happiness; for others, it’s money and prestige; and yet for others, it’s service, friendship and fun that are most satisfying in a workplace. The trick is identifying your core drivers and then aligning your work to do more of what you love and a little less of what frustrates you.

2. They don’t wait for a manager to motivate them. The truth is, few leaders know what really motivates their people; or, if they do happen to know, few would recognize how to apply that information to their day-to-day work. Motivated individuals have discovered that the surest way to happier and more successful work lives is first understanding what drives you; and then second, doing some sculpting of the nature of your jobs or tasks to better match duties with passions. That involves working

with a manager, of course, but most motivated people lead this effort themselves. They take charge of their careers.

3. They don’t leave to chase a dream job. There is a prevalent notion that if you’re unhappy with your work, it will take a Herculean effort to change things; that you have to quit and find your “dream job” to be happy. For the vast majority of people, that’s just nonsense. That’s not to say motivated people never change departments or companies, and we all can appreciate that if an individual is completely miscast or miserable, it’s not good for them, their customers or their managers. But most people don’t need to take a risky leap; instead, they need to start by making small, but important sculpting changes in their work lives. Many of the happiest people we’ve spoken with didn’t find their bliss down a new path; they made course corrections along the path they were already following.

4. They don’t believe everyone is motivated like they are. One of the traps most of us can fall into is believing that other people are driven by the same things we are. We’ve counseled a bevy of frustrated teams on this issue. Perhaps the majority of the team members are what we call “Builders”— people who are focused on high-minded ideals like developing others, service, teamwork, and a greater purpose. And most of those team members believe anyone who is not motivated in these

Many of the happiest people we’ve spoken with didn’t find their bliss down a new path; they made course corrections along the path they were already following.



ways is not a “team player.” But also on the team are a handful of people we would classify as Achievers, Caregivers, Thinkers, and Reward-Driven, and these are people who feel alienated and unappreciated. Great strength comes in recognizing and appreciating diversity, but we have to understand and use the motivational drive of others. For instance, the Reward-Driven can make a team more competitive; Thinkers help us be more creative; Caregivers encourage empathy and fun; Achievers make us more goal-oriented; and Builders help drive purpose and meaning. Most teams need all identities in play to function at high levels.

5. They don’t focus inward. The happiest people we found in our studies typically focus their work efforts in service of others rather than on self gain. That may mean they achieve more or sell more or do more because they truly believe in their products or services and genuinely believe they are helping their customers by putting those goods in their hands — versus those who are simply striving to win a deal and cash a paycheck. It’s a subtle change in thinking, but it’s important. Psychologists also say most people perform better at work when they focus their energy toward serving their families

instead of themselves. Thus, motives based on the pursuit of power, narcissism or overcoming self-doubt are less rewarding and less effective than goals based on the pursuit of providing security and support for loved ones, or being able to give one’s gain to a worthwhile cause.

6. They don’t hang out with whiners. We all know who they are: There’s typically a group of people who complain about everything at the office. If the boss pulls out his or her wallet and starts handing out 20-dollar bills, the whiners will later moan that they weren’t $50s. The most motivated people avoid this petulant bunch. Complaining with no solution is a toxic habit. Sometimes making a positive difference at work simply is a matter of how a person chooses to think. We always counsel those troubled at work to look for ways to be authentically positive. For instance, publicly acknowledging a coworker’s accomplishment on completing a project. And even if it doesn’t help change the office environment, we remind them that they can always do this at home; telling their significant others or kids why they are inspiring, using specific language and not vague platitudes.

7. They don’t compare themselves to others. The motivated people we interviewed don’t waste a lot of time comparing themselves to those who have more; instead, they regularly express gratitude for the talents, resources and relationships they do have, not to mention their health, their friends, their own brilliance, their motivation, and their family who inspire them. Everyone is happiest when they are thankful for the gifts they have been given, and that gratitude should be offered up regularly to those around them who support them and help them thrive. Psychologists are only just beginning to understand the healing and strengthening mental power of grateful attitudes. The most successful and happy people are frequent and specific in their verbal appreciation of not only their colleagues, but also family members and friends.

The happiest people we found in our studies typically focus their work efforts in service of others rather than on self gain.




New Vs. Used: What Business Do You Want to Be In?By Robert Grant

As I was driving by one of my local boat dealerships recently, I scanned the lot and showroom to see what they had available for sale. There was a mixture of new and used product, with mostly new units displayed. Then the thought occurred to me: “If I were a dealer, would I focus on new or used units? What business would I want to be in?”

Once I got back to the office, I pulled some numbers from the Lightspeed DataBack data services reports to get a better feel for what many of you are doing within your own businesses. Initially I just looked at the previous 12 months; then I decided to get a better feel for overall trends, so I added in the prior 12 months as well.

Here are a few of my findings:

1. Used to New Unit Sales Ratio — I looked at the ratio of new to used units. What I found was interesting. Depending on the time of year, the ratio ranged from almost a 1:1 ratio up to a 2:1 ratio of new to used. The current 12-month annual average dropped to 0.56 used units per every new from 0.63. Here’s how it graphs out:

2. Average Number of Units Sold — In looking at the average number of units, both new and used over the last two years, we see that this year yielded a less drastic seasonal drop in new unit sales. The current 12-month average has increased from 22 for the prior period to 27 for new units. Used units also have increased from an average of 14.77 to 17.31 per month.

3. Gross Margin Percent Average — We also see that the number of units sold per month increased this year. Let’s take a look at what we’ve seen happening to the Front End Gross Margin percentage. As you can see here, it appears that on average, higher margins are being held on used inventory sales. For new

Figure 1: ADP Lightspeed Marine DataBack May 2014/2013

Figure 2: ADP Lightspeed Marine DataBack May 2014/2013

Figure 3: ADP Lightspeed Marine DataBack May 2014/2013. Includes unit and front end products.



unit sales, it has averaged 13 percent for the current 12 months and 14 percent for the prior 12-month period. Used units have averaged 23 percent for the current 12-month period and 26 percent for the prior 12-month period.

So what can we surmise from all this? If we were to run a scenario using a total unit sales figure of $10 million with numbers from our DataBack annual averages, we could see the following:

• New Unit Percentage of Sales Average (calculated from DataBack monthly figures): 61 percent

• Used Unit Percentage of Sales Average: (calculated from DataBack monthly figures): 39 percent

• New Unit Gross Margin Average (calculated from DataBack monthly figures): 13 percent

• Used Unit Gross Margin Average (calculated from DataBack monthly figures): 23 percent

• This scenario will yield:• New Sales: $6.1 million• Used Sales: $3.9 million• New Gross Margin: $793,000• Used Gross Margin: $897,000• Total Gross: $1.69 million

Now if we were to adjust our New Unit to Used Unit percentage of sales averages (New to Used Ratio) by increasing our used unit sales a little, we could see the following (also assuming $10 million in annual unit sales):

• New Unit Percentage of Sales Average (Hypothetical): 55 percent

• Used Unit Percentage of Sales Average: (Hypothetical): 45 percent

• New Unit Gross Margin Average (calculated from DataBack monthly figures): 13 percent

• Used Unit Gross Margin Average (calculated from DataBack monthly figures): 23 percent

• This scenario will yield:• New Sales: $5.5 million• Used Sales: $4.5 million• New Gross Margin: $715,000• Used Gross Margin: $1.035 million• Total Gross: $1.75 million

As you can see from this example, if we could increase our used unit sales by just a few percentage points and maintain the same margin

percentage, it would yield a $60,000 increase to our gross margin. That could pay for a new company truck, much-needed facility maintenance, etc.

I understand many factors come into play that may or may not be under our control when it comes to sales. So how can we take control? Here are a few suggestions:

1. Buy it right. As you know, the key to making the most money is to buy low and sell high. This is more easily done with used units, as you have more control over the situation — whether it’s a trade, outright purchase from a private seller, or through auction houses. Don’t get caught up with the emotion of a deal, a purchase negotiation or auction environment. We all can think of deals that we should have walked away from.

2. Complete a used unit inspection. Compile an inspection checklist that your service department will complete on each used unit purchased. This will ensure there are no surprises after you’ve purchased a vessel. It also will allow you to provide a prospective buyer with a report of the completed inspection, ultimately improving his or her purchase.

3. E-market your inventory. Long gone are the days of newspaper ads, billboards and conventional foot traffic. Be savvy in your online listings. There are many options out there, both local and national publications, where you can post your inventory.

4. Sell internationally. Many of the dealers I talk with are finding great opportunities overseas for used vessels. Whether the driving factor is monetary exchange rates, lack of supply or other options, the opportunity can be huge. Understand customs requirements, shipping costs and other variables, and this could potentially pay big dividends for you.

5. Provide new boater training courses. For many people unfamiliar with boating, I’ve found that the most successful dealers provide additional services to their customers and prospects. A new-boater training course is a great way to introduce the boating lifestyle to those relatively unfamiliar with boating, but who are considering a boat purchase. Those individuals will most likely purchase their new or used boat from the dealers that have provided them with the most service and personal attention.

There are a number of other possibilities that will help ensure your continued success. My hope is that you’ll take a few minutes during your busy day to give this some thought and ask yourself: “New vs. used: What business do I want to be in?”

ABOUT THE AUTHOR:Robert B. Grant has more than 18 years of marine industry experience. He got his start managing the parts and service departments at local dealerships in Salt Lake City, Utah. Grant has been employed by CDK Global Recreation, previously known as ADP Dealer Services, for more than 14 years and has worked in many different capacities throughout the company, which provides the Lightspeed dealer management software and services for the marine, RV and powersports industries. He attended the University of Utah, where he received a B.A. in Finance, and currently works as a business development engineer.



I walked into the restaurant five minutes early for our 6:30 p.m. reservation. He was waiting to greet me by the bar. I couldn’t help but smile. I’ve never forgotten the sales lesson that “showing up on time means you’re five minutes late.” He always was five minutes early.

As we slid into the corner booth, it certainly felt like old times. After working together for more than a decade, we had enjoyed some great dinner conversations, and it was good to reconnect. He had been a mentor, friend and hands down the best boss I ever had. Dinner with him always was a special occasion, and I would usually reflect upon the evening long after it ended. The big insight might come in a brief moment, but it always was included. Many of the lessons I learned from him are foundational principles I still practice today. Working for him was a life-changing experience.

If you’ve ever worked for an extraordinary leader, I’m sure you can relate. The best leaders are acutely aware of the impact they have on people and recognize that leadership is about helping people become their very best. Leadership isn’t a job; leadership is a responsibility.

What makes a leader extraordinary? I’ll offer up nine leadership lessons from my best boss’ playbook. This is what I loved most about working for him:

1. He had a vision. He was future-directed. He could clearly articulate where we were going and how we were going to get there. His confidence and optimism about our future success was contagious. I would constantly leverage his vision as a source of inspiration for our sales organization. I still miss his “Good News Friday” weekly update.

2. He was present with presence. He put in the work. Trade shows. Client presentations. Office visits. His impact was felt daily throughout the organization, and he was always willing

to give more. A phone call to an employee who made a big contribution. A handwritten note to welcome a new client. A “lunch and learn” with the team during an office visit. He cared about the culture of the company he was leading and worked tirelessly to continue making it our competitive advantage.

3. He put me in a position to succeed. He wanted to understand how he could help me succeed. He would work with me to eliminate barriers that might inhibit our success. He created opportunity to help me contribute more to the business. I felt empowered in my work and was afforded the autonomy to make my own, meaningful contribution and imprint on the business. He was generous with recognition when it was warranted. There was an incredible sense of pride and belonging in our organization among the top performers.

4. He was invested in me. He was a catalyst for my continued learning and development. What he couldn’t offer, he encouraged me to seek out on my own. He always was interested in my future and made sure we were in alignment in support of my goals. He is one of the best listeners I have ever known, but he didn’t stop there. He would follow up and follow through. He never made promises he didn’t keep, and the conversations that led to commitment always were supported by action. Always.

9 Leadership Lessons From the Best Boss I Ever HadBy Ryan Estis

He was future-directed. He could clearly articulate where we were going and how we were going to get there. His confidence and optimism about our future success was contagious.



5. He was my friend. His investment in me went way beyond the office. He cared about me as a person and helped me understand that a life lived well was more about what happened outside of the office than what happened between 9 a.m. and 5 p.m. I will never forget the time he invited me to spend Thanksgiving with his family. I doubt he remembers, since it happened in a quick, casual telephone conversation without any preemptive thought or planning, but I didn’t forget. The friendship transcended business and served to reinforce my commitment to him as my CEO. How do you think I responded if he needed a little extra from me to close out the quarter?

6. He would have fired me for underperformance. Our friendship never interfered with the obligation to the business. He was very clear in his performance expectations and candid in evaluating my contribution on a consistent basis. His clarity meant that I always knew exactly what was expected of me. If I couldn’t deliver my sales number, he was obligated to find a sales executive with the talent to hit the performance target. That wasn’t personal; that was the job, and I respected it deeply. I also didn’t miss that number.

7. He respected my opinion, even when it differed from his own. We didn’t always align, and he was very open to my perspective. As I matured in my role, I would confidently express my opinion, and occasionally I could be aggressive in taking an opposing view on critical business decisions. I actually think he enjoyed the debate and defending his own position with conviction. It also was clear that he wanted my unequivocal support of key decisions, even if the decisions weren’t consistent with my opinion (as long as they were consistent with my values).

8. He could admit when he was wrong. His unique blend of confidence and humility brought him support in times of adversity and challenge. He made mistakes. We all do. He could admit when he was wrong. Being open about our missteps was critical to inviting more ideas and building a better business.

Nobody was on the chopping block for making a mistake. We’d all make them and learn and grow together as a result. He was a true collaborative leader.

9. He was all in. He lead by example, and it was abundantly clear to everyone that the business was his life’s work. His commitment to success was less about him and very much about creating something unique, special and sustainable for the people who were investing their time and talent into the organization. Yes, he wanted to win. I believe he wanted to win more in the service of others than for what it meant to him personally. His selfless approach to leadership earned an incredibly loyal following and is the primary reason I stayed with the organization for much longer than I ever had planned. I wanted to work for him.

The phone call offering my resignation was one of the toughest calls I ever made. I didn’t want to disappoint him, but it was my time. We’d circled around this a couple times in the past. I was tempted by an offer or two on our journey together, and he always made a strong enough case to convince me to stay. However, the last time was different. He acknowledged my readiness and that the time was right. Leaders don’t hold people back; they prepare them for what’s next in work and life. I wouldn’t be where I am today without his contribution.

Thank you, John, for everything. Next time, dinner is on me.

Leaders don’t hold people back; they prepare them for what’s next in work and life.

ABOUT THE AUTHOR:Ryan Estis is a former chief strategy officer for McCann-Erickson Advertising and now serves as the chief experience officer in his own training organization. He is a leading expert on sales effectiveness, leadership and the future of work, and was recently recognized by Meetings & Conventions magazine as one of the “best keynote speakers seen or heard” alongside Tony Robbins, Bill Gates, Colin Powell and Coach Mike Ditka. Estis works with category leading brands, including AT&T, Mayo Clinic, Adobe, MasterCard and the National Basketball Association. He delivered the Closing Keynote at the 2014 Marine Dealer Conference & Expo.



Take This Job and Love ItBy Chester Elton

Take a look in the mirror and ask yourself: Most days at work, are you doing what motivates you? Or back up and inquire: Have you taken the time to reflect on what you are doing, exactly, on those days when you are most excited and energized in your work; when you have a proverbial skip in your step?

For 20 years, I’ve been lucky enough to consult with some of the world’s most hip and happening organizations. And over the last decade, my team has conducted three research studies on workplace trends, comprising more than 850,000 interviews. What all that data reveals is a key difference in those people who are most energized on the job versus those that aren’t.

What is it?

The happiest people have aligned more of their work with their core motivations. As for those people who are most unhappy at work… as you might expect, their jobs are out of whack with what they are passionate about.

That probably sounds like a no-brainer, right? Then here’s the million-dollar question: Why don’t we all do something about it?

The problem is that most people feel either helpless or overwhelmed. Many wait for an outside force, like a manager, to swoop in and fix things. But even well-intended managers who want to motivate

their teams have to sift through vastly different notions about what motivates workers. One author has a list of three things they say really drive employees; another says no — it’s this list of five other things; and so on. Unfortunately, the fixes out there related to motivation are much too simplistic and categorical to help most people. In our research, we’ve found that each individual is driven by a unique set, or blend, of internal and external drivers. Every person on this planet has a thumbprint-like makeup of what makes him or her most happy from 9 to 5 (and in the rest of life), and those thumbprints vary considerably from person to person.

From data mining, our behavioral scientists at The Culture Works identified 23 workplace motivators, ideas from Creativity to Impact, and from Developing Others to Money (yes, money can, and does, motivate some people).

Bottom line: If we want to be happily engaged in our work and performing at our fullest potential, we must look inside and understand a few of these specific motivators that drive us. All of us host a unique blend of motivations that should guide us in sculpting our ideal work life.

So, do we have to quit to chase our “dream job?” Not typically. In most cases, we found this process doesn’t require a major career or

job transition. Most people can make small changes in their work lives. As we’ve been writing our new

book, “What Motivates Me,” over the last few years, many of the happiest people we spoke with say they didn’t find their bliss down a new path; they simply made course corrections on the path they were already on.

When people put their finger on the specific things that are causing them dissatisfaction in their work, they can use that positive language to discuss with their bosses and fellow team members some relatively small

changes in job responsibilities or work situations that could create boons in productivity and commitment — just the things they and their managers are looking for.

We call this type of modification “job sculpting.” For employees, the benefit of this process is obvious. But for leaders, the payback can be equally as powerful; sculpting can help diagnose how team members’



specific tasks are (or are not) aligned with his or her motivations, as well as uncover subtle changes that can lead to increases in team morale and engagement.

Here’s one example. Harvard Business School’s James Waldroop tells an interesting story. He was visiting with a Canadian company where he met a talented senior executive, the chief information officer, who told him she was planning on leaving the organization soon. The woman’s strongest motivator was doing creative work. She had just finished

leading a project to update the company’s information system and did a masterful job; however, now her role had evolved to maintaining the IT system, where a strong analytic penchant was needed. Little creativity was required in this work, and she quickly had grown uninspired.

Waldroop accompanied her to have a talk with the company president. After some back and forth, he worked out a deal that would allow her to take on an additional role overseeing the company’s marketing efforts, despite the fact that she had no experience in that area. The president knew she was imaginative and smart, and guessed she had a good chance of learning the role and succeeding. She did.

“She didn’t quit,” says Waldroop. “They gave her a little more money, but certainly not enough to compensate for the fact that she now had two jobs. But she was delighted. After all, none of us are single-dimensional automatons; we all like opportunities to expand our skill sets. And the president was delighted because she was staying.”

I’ve now heard a thousand stories like this, and they give me hope. There are individuals and teams among us who are deeply fulfilled by their work, who are passionate about what they do, and are energized

when Monday comes around. So what’s their secret? In most cases, they have taken control of their careers. When our jobs give us the opportunity to do more of the kinds of things that satisfy our key motivations, we are naturally happier and more engaged.

Did I say this is a simple process? Unfortunately, it’s not. Does it does require a manager above you with a modicum of vision? Unfortunately, yes; it does. But in the end is it worth it? Absolutely!

I’d love to read your stories of how you found greater fulfillment at work by aligning your work to what motivates you. Feel free to send them to me at [email protected].

There are individuals and teams among us who are deeply fulfilled by their work, who are passionate about what they do, and are energized when Monday comes around. So what’s their secret? In most cases, they have taken control of their careers.




Every Principal’s DilemmaBy Tom Deans, Ph.D.

Never in the history of civilization has so much wealth been created inside businesses: Equity now sitting as cash, inventory, receivables, intellectual property and goodwill.

This wealth represents a lifetime of risk-taking by marine dealership owners who bobbed and weaved their way through and around adversity to create enterprises that have beaten the odds. They didn’t just survive; they actually thrived. But lurking around the corner is a question that confounds and frustrates the brightest business minds: “Who will own my dealership when I’m gone?”

The problems confronting aging business owners today have their origin back in the 1960s, ’70s and ’80s, when these owners elected to have smaller families than their parents, and when college enrollment skyrocketed. Many children born during these decades heeded their parents’ advice to follow their own passions and ended up in professions completely unrelated to the marine retail industry. For owners whose children have followed them into the business, all the traditional challenges that visit and define family businesses mean that owners are running out of time to resolve the big question. Here’s the kicker: That question is not “Who will lead my business when I’m gone?,” but rather, “Who will risk their capital to buy my dealership when I’m still alive?”

Never before have business owners concentrated so much of their wealth in one stock — their own company. And they’re doing so at a time when retirements will be longer and vastly more expensive than for any previous generation. Ask aging business owners to take all of their wealth outside of their businesses and invest it in one stock, and they’ll preach the power of asset allocation and diversification. And yet across the street at Family Business Inc., this concentration of wealth feels perfectly normal.

The comfort of control often can mask the real threats to a business owner’s net worth: Market forces and life events come out of left field and strip a business of its value with blinding speed. Reflect on Lehman Brothers. One of the single largest investment banks in the world is now remembered as the single largest bankruptcy in the history of civilization — $691 billion. The real lesson for marine dealers is that size and market dominance is no guarantee that your business will survive an unforeseen risk.

The carnage among family-owned and -controlled marine dealerships is no more or less impressive than in other industries. The success rate across all sectors of family businesses transitioning to the second generation is only 30 percent. And of those, only 10 percent will

survive to the third generation. So if you are the founder of a marine dealership, you have a 3 percent chance of having your grandchildren own and operate your business. Long odds, indeed. You wouldn’t go to Las Vegas and gamble with those odds — and yet lost in the desert is where most family-owned and -controlled marine dealerships find themselves when it comes to their succession planning.

Cast an eye across the Atlantic to Europe’s most successful and enduring dynastic enterprises, and you’ll see conglomerates. The undisputed heavyweight champion is the 250-year-old Rothschild dynasty. At the very epicenter of their family business DNA is the clear and unwavering idea that their family, not their businesses, is their greatest legacy. The Rothschilds never confuse their love of a business with their love of business; the Rothschilds teach their progeny to love commerce.

Successful dynasties seldom “gift” operating businesses to their children. Instead, they pass cash and ask their children whether they want to purchase the business. This simple technique serves to trim the family tree by moving control to the siblings who are prepared to risk their inheritance to purchase the business.

When business owners can begin a different kind of conversation within their families and make their plans less about themselves and their life’s work, they’ll take the first step toward cementing the last, most difficult, but vastly most rewarding deal of their lives.

The temptation to make a business the centerpiece of one’s legacy will continue to shred families — their wealth and their relationships — from the inside out. It is the self-aware, introspective business owner who sets the family free of his or her own creation that sows the seeds of a truly great and enduring dynasty.

A family business is not a building; it is not a company name. Rather, it’s a set of values that puts risk and reward, humility not hubris, creativity, innovation, and entrepreneurship at the center of the family and the business. Paradoxically, this is how the next retail marine dealership dynasty will carve out its place in history — precisely by nurturing the next generation of risk-takers to step up to the plate with their own cash and swing for the fences.

ABOUT THE AUTHOR:Tom Deans is an award-winning speaker and author of the book “Every Family’s Business.” With more than 500,000 copies sold in 43 countries, it’s the best-selling family business book of all time. For more information, visit Deans’ website, EveryFamilysBusiness.com.

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