Market Trends Blog

Fleet Management is more than Managing Assets, It is Also Managing People

April 13, 2009

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By Mike Antich

When people think of fleet management, they typically associate it with asset management. However, a critical component to fleet management is people management. The reality is the majority of a fleet manager's time often is spent dealing with personnel and interdepartmental issues. How you deal with these issues influences shop morale, user department relationships, and management's opinion of your effectiveness as fleet manager. 

Successful people management equates to successful fleet management. This translates into higher technician productivity, improved operational efficiencies, and improved customer service.

I am in daily contact with fleet managers around the country and based on these conversations, I identified six characteristics in people management employed by the best of these fleet managers.

1. Become a Role Model: Successful people management means you, yourself, must serve as an example of excellence. Become a role model by showcasing how work should be done by demonstrating confidence, a positive attitude, and employing initiative during trying circumstances. By maintaining a high standard of personal performance, you encourage a similar high standard from all associates. An effective fleet manager ensures all employees perform to the best of their abilities and are given opportunities to improve their skill sets, and can do the job right the first time. In addition, a role model also means standing behind promises and following through on commitments to staff, user departments, and management.

2. Fairness. Managing a staff is very much like being the head of a family. You need to treat everyone equally and not show favoritism. One way to do so is to ensure all shop rules are applied equally. It is important to be impartial when enforcing fleet policy and shop rules. Fairness also means acknowledging when someone does a good job. Never take credit for other people's work. However, fairness also means providing constructive criticism when needed. Maintaining a "feel good" environment is sometimes counter-productive. Strive to develop a management style that is fair, firm, and consistent.

3. Become a Good Listener. Encourage your staff to feel free to express ideas and concerns to you. As one fleet manager told me, you need to listen to not only what they say, but also what they do not say. Encourage constructive feedback. Adopt an open-door policy and let your staff know their comments will be held in confidence. Strive to create an image of yourself as someone who is trustworthy.

4. Encourage Self-Growth. Develop programs that incentivize associates to advance their skill sets by striving for ASE-certification and taking advantage of training opportunities. Let your associates know you are receptive to new ideas to improve fleet operations. Encourage creativity and innovation.

5. Problem Resolution. When issues emerge on the shop floor, your focus should be finding solutions, not assigning blame.  If it is necessary to criticize, do so in private. The best way to resolve problems is to prevent them from happening in the first place. You may think everyone understands the goals of the department; however, it is important not to take this for granted. It is crucial to continually re-communicate the goals of the department. These goals need to be well defined and clearly stated.

6. Cultivate Customer Service. A best-in-class fleet operation has excellent interdepartmental relationships. It is important to remember that without user departments there would be no need for fleet operations. An effective fleet manager listens to user departments. You need to know your customers' objectives. It is important to regularly survey customers to determine their needs, wants, and expectations of fleet operations. If you are not meeting these needs and expectations, then you've failed as a fleet operation. It is important for fleet operations to be cost-efficient and to temper unwarranted user department demands, but an unhappy customer represents a deficiency in your department's performance. If user department problems are identified, seek to resolve them in a timely manner. During a privatization initiative, user departments can be powerful allies.

 

Text Book vs. Reality

All of the above advice is good, but shop reality is usually more complex with many more variables not easily resolved. The reality is some employees are "bad hires" or "malcontents" and all the advice in the world will not change their negative attitudes or subpar performance. In these situations, annual evaluations should accurately reflect an employee's performance. When dealing with problem employees, follow your organization's progressive discipline policies. If this fails to get them to clean up their act, then issue a "last and final" letter.

People management is harder than asset management.

Let me know what you think.

mike.antich@bobit.com

COMMENTS

  1. 1. Steve Kibler [ April 14, 2009 @ 03:14PM ]

    How can you hit the nail on the head so consistently over twenty years of writing about fleets. I've read so many articles focusing on either asset management or customer management but seldom does an article srike a balance as well as this one did. I agree; you have to manage both equally to achieve long-term success. Thank you Mike.

  2. 2. Dennis Hogan [ April 15, 2009 @ 11:28AM ]

    Mike very good points and something that should stay in the forefront of everything we do. The old saying "management by walking around" always holds true. If we do not get out and interact with our customers and employees how can we effectively manage the human side of our business. Our reality should be without customers and employees our value is realtively zero. Thanks again for hitting it right on the head.

  3. 3. Chris Amos, CAFM [ April 19, 2009 @ 09:42AM ]

    Excellent observations, Mike. Managing assets is indeed much easier than leading people. As you say, some employees won't do what they know is expected and don't want to be led. This is the toughest aspect of any supervisory or management job because good people expect the best in others and tend to avoid being the bad guy for as long as possible. Morale is a delicate thing, though, and dealing decisively with the "bad apples" early on is important before they "spoil the whole barrel." Allowing substandard performance to continue unchecked is acceptance of it as the new standard, after all. The same is true for drivers/operators as it is for fleet personnel. Having weak leaders of fleet customer organizations is a costly problem for fleets. Few leaders have the stomach to confront problem employees early when it might do some good or to follow through when the situation becomes untenable.

  4. 4. Bob Martinez [ April 27, 2009 @ 01:13PM ]

    Great stuff, all very basic or you would think common sense for any manager. I agree 100%. I will share with all 35 of my fleet managers. Keep up the good writing.

  5. 5. Dennis Hogan [ April 28, 2009 @ 02:26PM ]

    Chris your assessment and comment is right where I found my self coming back to the Public Sector after a stint with a private sector company. The number of manager supervisors that did not take the initiative to deal with those "bad apples" established a standard that has taken me a little over a year to get moving past, notice I did not say "moved" past. This is an ever evolving issue and it is up to those of us with the insight and vision to take the lead and keep pushing our customer groups and their leaders, as well as our employees to the right path.

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AUTHOR BIO

Mike Antich

Editor & Associate Publisher

Mike Antich has been covering the fleet management and vehicle remarketing markets for more than 20 years. During this period, Mike has written or edited more than 4,600 articles on the subjects of fleet management, manufacturer fleet activities, the fleet leasing industry, and vehicle remarketing.

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