Picture this: You are Fleet Manager saddled over the years with the responsibility of profitably managing a fleet comprising over a hundred heavy duty vehicles that moves a minimum of 10,000 tons of goods for counterparties all across the federation in any single month. Suddenly, you get an internal memorandum that tells of the impending resumption of a General Manager or Operations Manager. You asked a few questions around; and you are told one of the following: He is being moved from Commercial Department in the Head Office Or He had just been poached from the hospitality industry! So, what do you do?

Fleet management is arguably one of the most misunderstood of the management sciences, especially in a less developed country like ours. The popular view is that a Fleet Manager’s job reposes only on fueling, scheduling vehicles for repair and maintenance, and assigning drivers and their assistants for respective assignments.

That said, many senior managers or what we call Operation Managers will require thorough training on Fleet Management as their lack of it usually leads to a collision course with their Fleet Managers who may want to introduce new ideas such as a performance management system full with KPIs (Key Performance Indicators).

However, getting the new boss up to speed on fleet management requires careful planning and presentation skills. Automotive Fleet offers some pointers for effective “training” without acrimony.

The Preliminary Stages

A Fleet Manager intent on bridging the knowledge gap between himself and the incoming Senior Officer may explore the following routine:

Do a little research on the new boss to familiarize yourself with their background and experience.

Based on the information found, ask the new boss questions about what he or she is interested to learn about fleet.

Cover the basics of fleet management in a “class” setting, and keep data in an easy-to-follow format.

Develop a relationship.

The business world isn’t like it was several years ago, when people stayed with the company and moved up the ranks over years, even decades. Today, fast-track managers move freely and often, within or between companies.

For fleet managers, this means that within a relatively short period of time, many can expect to report to more than one person, as they move up in the company, or move out to better opportunities. And, each time the new manager comes in, he or she is generally clueless about fleet management or, worse, is a “car buff” and thinks he or she knows all about it. Amidst all of the other responsibilities fleet managers have, “training” a new boss is an unwelcome task that must be endured.

Do a ‘Background Check’

When a new supervisor is named, he or she will likely come from within the ranks of whatever department or function fleet management resides (i.e., someone from accounting, finance, sales, or corporate services). But, it is often the case that someone from outside the department or even outside the company is named.

Certainly, it makes it a bit easier to train a new boss if he or she comes from the same side of the business as fleet. The point is that the first step in this “training” process is to know the background of the new boss.

There are a number of places where this can be found, not the least of which could be a press release from the company announcing the appointment. Other sources can come from the last department he or she moved from, online networking sites such as LinkedIn, or a simple online search. It’s important to perform such a “background check” to know and understand likely motivations and areas of particular interest.

For example, say the new boss came out of purchasing. The particular skills purchasing requires include negotiation, contracts, and supplier relations. The fleet manager might begin by preparing a brief outline of what suppliers the company uses, such as lessors, service companies, and fuel card programs. Include how the business was awarded, fees, contract terms and conditions, and supplier contacts. Or, rather, if the new boss came out of the sales or service department, be ready to show how the selector was developed, and why certain vehicles were chosen and others rejected. The point is to hit your new supervisor in his or her “sweet spot” first, gain trust, and move on.

Ask Questions

Once you’ve made the first contact, don’t hesitate to ask questions. Find out from the new supervisor what he or she knows (and doesn’t know) about what you and the fleet department does. Having an open discussion can also reveal what a new boss wants to know — what areas of the fleet operation are of greatest interest.

Where and when should this kind of introductory meeting take place? Most often, new managers will reach out to direct reports as a group or individually. Such first contact will likely contain questions for them as well. Give the new boss a few weeks to become acclimated. If by then no such meeting has been scheduled, reach out. Offer times and dates, and most important, be prepared.

Create the ‘Curriculum’

So, the boss has reached out, or responded positively to you, and the meeting is set. The next step in this teaching process is to identify the “curriculum” for the meeting. What should this be? How does a new subordinate prepare for a meeting with the new supervisor who doesn’t know much about fleet management?

Essentially, a fleet manager should already have the basics for such a meeting. There are certain questions most managers have when exposed to the company fleet; common questions that require straightforward answers, including:

Why are we using the vehicles that are on the selector?

Why can’t we use smaller vehicles to save money?

Why don’t we keep our vehicles longer?

Why do we lease/own?

Can’t employees drive their own vehicles?

You get the picture; the new manager (and this holds true for new fleet managers, too) wants to come into the job and “clean up Dodge,” question what the company is doing, and put his or her own stamp on the operation of fleet.

The answer to these and other questions should be, for the professional fleet manager, readily available, and form a good portion of the teaching curriculum. Here are those answers, and the information needed:

Vehicle selection: Each model year, fleet managers throughout the industry review the fleet selector. Based on the ability of vehicles to do the job, they review the performance of the vehicles used previously, examine and analyze the alternatives, contact and discuss competitive allowance program (CAP) and other pricing programs with the manufacturers or Dealers, and, ultimately select the vehicles to be used. All of this requires analysis that can be produced to defend the decision.

Replacement cycling: Similarly, the establishment of Replacement Policy is the result of careful analysis of lifecycle costs, and fleet managers set replacement at that point when the combination of fixed and variable costs are lowest.

Leasing versus ownership: The financial decision of leasing versus ownership, in the private sector, is straightforward: the net present value of the after tax cash flows. In the public sector, in which governments are tax exempt, it is simply the net present value of the cash flows. Whichever is lower is the most financially sound choice. The analysis can be done using a standard spreadsheet.

Company vehicles versus reimbursement: This question is especially relevant to those that are running fleets for staff transportation in a large organisation. It is probably the single most important analysis the fleet manager can perform, and it should be done every year. Fleet managers should not wait for the question to be asked. The financial decision is similar to that of vehicle assignment: There is a point where the cost of reimbursement (based on mileage driven and the reimbursement rate) is greater than the cost of providing a vehicle. There are other, non-financial factors as well, and records of all of the above analysis should be kept.

All of these, and other standard fleet management processes, are the “text” of the “curriculum.” They tell the story of what the fleet manager does, and, most important, why he or she does it. Add the fleet policy to this, and the fleet manager has most of what is needed to begin the educational process with a new boss.

Comments

comments