Telematics Investment Requires Due Diligence

By Jim Griffin – Chief Technology Officer, Fleet Advantage

Transportation and fleet managers have wrestled for years with the cost versus benefit of incorporating telematics on their trucks. The term telematics derives from the combination of telecommunications and informatics and represents a variety of devices also known as onboard computer systems. Although telematics devices have been around for decades, the percentage of Class 8 tractors outfitted with them ranges between 27% and 40% — percentages that speak volumes about the perceived value of telematics.

Now that the electronic logging device, or ELD, mandate is being placed into law, fleet managers who have yet to incorporate telematics are being forced to make an important initial decision: Do I view the telematics mandate as a “necessary evil” and spend the least amount to meet compliance, or do I go “all in” and realize the value of the data that it provides?

Amid the overload of applications, hardware and services available in the ever­changing telematics world, deciding on the range of system functionality and associated costs can be overwhelming. This can be especially true for fleet managers who have not yet immersed themselves in telematics research — and I can say with confidence that a lot of research must precede a decision. Pricing for hardware can range from free to several thousand dollars, while functionality can range from basic GPS tracking to a fully integrated, mobile­asset management system. The new mandate will be a key factor in the decision of which system to choose. With options on vendors, applications, features and costs, where do you start?

First, you need to recognize that decision time has come, and you must take action to be compliant. Factors that must enter into this decision equation include hardware pricing of the newly available and enhanced data sets you will need and financing options. Thinking strategically about the data you need to manage your fleet’s performance, your drivers’ behavior and vehicle life cycle options ultimately will pay off in improved fuel economy, lower operating costs and improved driver retention. So a thorough and methodical due diligence approach is recommended.

So now what?

Now that you know that a decision is imminent, what do you do? If you are a fleet manager venturing into the telematics landscape for the first time, you need to understand that this is a journey for your organization, as the data and reporting options available to fleet managers can be as overwhelming as choosing the best service provider. It is an onerous task to simply digest the tidal wave of functionality and data that will be available. So you need to establish and prioritize your needs to understand the telematics value proposition.

Second, you need to choose a provider or partner that is there for the long haul, that has the ability to support your organization and your fleet well into the future. A shortsighted decision to simply meet the ELD mandate without understanding the “actionable data potential” for greatly reducing operating costs is ill­advised. Since you must make the investment per the ELD mandate, the incremental costs to acquire systems and services that provide additional data and applications to modernize your fleet are minimal and the return on investment is substantial.

By attempting to minimize your initial step into telematics too much, you will find that, in the long run, you will have lost substantial operational savings and actually increased your costs by not having access to decision­making data that can assist in optimizing your fleet’s performance and safety. For example, at Fleet Advantage, we have found that by using the right data to monitor only fuel economy, a tractor’s performance can be increased by 5% to 12% on average and more in some cases. That can be thousands of dollars of savings per year for each tractor.

Is it more than just the technology?

The selection of your telematics product and partner goes beyond the technology. Let’s be clear, these systems are much more complicated than they get credit for. These systems are inherently challenging and, because no two fleets operate the same, there will be additional challenges. Your technology selections need to be determined by answering these important questions:

• Is the technology limited to meeting only my current needs to be compliant with the ELD mandate?

• Does the technology allow for easy access to reliable applications and reports that can provide actionable information for improving my fleet’s operating performance and safety?

• Does the technology provide a growth path to leverage the value of predictive and descriptive diagnostics? Many providers will tell you they are providing it today. However, this is an emerging area that no doubt is in its infancy and will continue to evolve. Don’t get left behind by choosing a limited technology partner.

• Does the provider have the resources, understanding and cultural climate to navigate this journey with your organization and be a true partner?

Although the thought of implementing the new ELD mandate and a telematics solution can appear to be overwhelming, the benefits of doing so will be well worth the investment of cost, time and effort.

Fleet Advantage is a leading innovator in truck fleet business analytics, equipment financing and life cycle cost management. For more information, visit  www.FleetAdvantage.net

Organizational Politics – In Trucking?

Everyone wants to succeed and almost everyone, if not everyone, has a personal agenda to accomplish those goals. In the workplace, this is certainly true.

Bolander (2011) states that “There is not an organization on earth (or space for that matter) that does not have to deal with politics… all organizations have some internal political struggle that can rip it apart” (Daily MBA, para. 1). Greenberg (2011) defines organizational politics as “actions by individuals that are directed toward the goal of furthering their own self-interest without regard for the well-being of others or their organization” (p. 435).

Perhaps if we asked most people outside of the trucking industry if they believed organizational politics only exists in large corporate settings, the answers would invariably be yes.  What about trucking companies — do you believe those organizations deal with politics?  What would the answer be?  If you’re on the inside of trucking, hands-down, it is a thunderous YES!  So, how do we identify this social ill and what’s the basis for it?

Mayes and Allen have a similar definition that “Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to obtain sanctioned ends through non-sanctioned influence means” (p. 675). So it can be said once again, there is a lot of organizational politics when it comes to one’s self-gain. Is this right? Wrong? Is it ok if someone in authority does it, but not the employees below them? No doubt that if someone in authority is taking part in organizational politics, it will affect the entire organization.

Andrews and Kacmar (2001) state that organizational politics “are often enacted behind the scenes and typically occur in organizations in which there are few rules and regulations to guide decision-making” (p. 348). However, according to Harrell-Cook, Ferris and Dulebohn “Perceptions of organizational politics involves the individual’s subjective evaluation of observed situations or behaviors as political” (p.1095).

Now, an individual saying that someone’s motives are political is not necessarily going to be considered right or wrong. One would have to look at the big picture to see if the motives are political or not. If they are found to be political, Andrews and Kacmar (2001) go on to say that “Those who perceive politics occurring within their organization experience reduced job satisfaction and organizational commitment, increased job stress, and are more likely to leave the organization” (p. 349). One cannot blame someone for leaving an organization where organizational politics is going on, especially if they are not benefiting from it.

Bradshaw-Camball and Murray talk about organizational politics and state that three questions must be asked when it comes to the topic:

• Structure – Who are the parties involved and what are their interests? How much power do they have? What are the bases of power?
• Process – How is power used in pursuit of each party’s interests?
• Outcomes – When the process is over, who gets what? What is the impact on the ongoing relationship of the parties and on the others who comprise the organization and its stakeholders?” (p. 380).

All three areas covered by Bradshaw-Camball and Murray go along with Andrews and Kacmar’s thoughts, and that is how it ultimately will influence the employees willingness to continue working at their place of employment.

Now that it’s been covered as to what organizational politics are, what sort of forms do they take? Greenberg (2011) talks about various forms of organizational politics such as gaining control over – and selectively using – information, cultivating favorable impressions, and having a scapegoat (p.436). All of these items focus on one thing, and that is making sure the individual looks good and that it brings them success.

These methods can be considered highly immoral but to an extent, that is what organizational politics are about. One of the most common terms heard however, is the term “scapegoat.” Greenberg (2011) defines a scapegoat as “a person who is made to take the blame for someone else’s failure or wrongdoing” (p. 436). Most of the time this type of organizational politics is common amongst management trying to save their position and job. This is certainly not ethical, and taking actions such as having scapegoats will cause employee morale to drop.

Overall, an organization or even an individual will not completely escape the world that is organizational politics. Everyone will, in some way, shape, or form, experience it firsthand. It could be something that the individual does, or organizational politics affecting the way the individual does their job in the workplace. The main thing to look at is how the individual is going to handle it when they experience it. Will they try to stop it so it does not affect someone else or will they take part in it to gain something for themselves in the end?     

Dr. David W. Guess

Executive VP | Safety & Human Resources, Usher Transport, Inc.

NATMI Academic Advisory Board Chairman

http://www.linkedin.com/pub/david-guess-cds/39/722/b9a

References

Andrews, M., & Kacmar, K. (2001). Discriminating among organizational politics, justice, and support. Journal of Organizational Behavior, 22(4), 347-366. Retrieved from http://www.jstor.org/stable/3649544

Bolander, J. (2011, February 28). How to Deal with Organizational Politics. Retrieved from http://www.thedailymba.com/2011/02/28/how-to-deal-with-organizational-politics/

Bradshaw-Camball, P., & Murray, V. (1991). Illusions and Other Games: A Trifocal View of Organizational Politics. Organization Science, 2(4), 379-398. Retrieved from http://www.jstor.org/stable/2635171

Greenberg, J. (2011). Behavior in Organizations (10th ed.). Upper Saddle River, N.J: Pearson Education

Harrell-Cook, G., Ferris, G., & Dulebohn, J. (1999). Political behaviors as moderators of the perceptions of organizational politics—work outcomes relationships. Journal of Organizational Behavior, 20(7), 1093-1105. Retrieved from http://www.jstor.org/stable/3100348

Mayes, B., & Allen, R. (1977). Toward a Definition of Organizational Politics. The Academy of Management Review, 2(4), 672-678. Retrieved from http://www.jstor.org/stable/257520

Leverage?

Is leverage good or bad?  Depends on who you ask, and which side of the leverage you’re on.  You cannot grow your business without leverage – time, money, and information.

Whether you own a trucking company or manage a private fleet – technology is leverage in your business.  Technology amplifies the good and magnifies the not-so-good.

What is leverage?  It is the ability to influence a system or an environment in a way that multiplies the outcome of one’s efforts.  We think of leverage as financial.  It is more than that.  It is your people, your systems, and the technology you and your company uses to direct your assets and people.

Do you have good systems?  Technology makes jobs easier, clearer, and allows more transparency.  Drivers know what to do and what’s expected.  Dispatchers can spend more time doing, and less time remembering or digging for information.  Managers and owners can clearly see what’s going on in all levels of their company.

Do you have bad systems – or no system at all?  If you do not have clear processes and expectations – technology will simply add tasks to a disgruntled workforce.

I have been fielding an incredible number of phone calls, emails, and requests for meetings because of the upcoming Electronic Logging Device (ELD) mandate.  We’ve talked to fleets, technology providers, and government agencies.  Some people are happy – for a variety of reasons.  Some are in panic mode.  Some are resigned to yet more government intrusion.

Many miss the point, so let’s create the scene that I see.  It’s the same scene that many of our customers see.  Technology is just a big lever that can solve or create problems.  It can expose opportunities or weaknesses more quickly than they’d surface on their own.

I was first exposed to telematics in 1988, and by 1991 I was implementing Tripmaster in CX Transportation’s fleet nationwide.  At the time I saw this system and its data as a tool to help us win business, manage customers, decrease variable costs, increase safety, improve compliance, and help drivers.  When I went to work for Tripmaster in 1994, I was surprised by what I saw with other fleets running this same technology.

Surprise number one – I was neither unique nor a genius.  We decreased accident costs by 75% and increased fuel economy by a full 1 MPG at CX.  But, so did other fleets.  What was common among the successful fleets?  We had a Standard Operating Procedure that clearly defined expectations and roles for everyone.  Data was visible and transparent throughout the business.   We clearly wanted to help two primary groups of people; drivers and local managers.

Surprise number two – misapplied technology did not create a better business.  Poor business practices and poor people practices are simply poor – with or without technology.  With technology added to a toxic workplace, the bad becomes visible to everyone.  If you believe drivers are a necessary evil and are always “out to get you”, technology is a baseball bat that makes everything worse.  If you have no improvement plan and see no need for standard procedures – you’ve created more work with no clear benefit.

I’ve seen fleets big and small do wonderful things with their fleet technology.  I’ve seen businesses saved.  I have seen driver’s lives improved.  I have seen managers grow, do more managing and less paperwork.

I have seen fleets use their telematics system as a battering ram – and for no good reason other than misguided egos and lack of true leadership skills.

So – what does this have to do with the ELD mandate?

Do you run a good, tight, company?  Do you have an economic and philosophical advantage in your marketplace?  And, are you worried that this ELD mandate will level the playing field – raising others up to your level and destroying your advantage?  Stop worrying.  From what I see – companies that have a “safety last” attitude now, won’t change because of a mandated technology.  They will buy the cheapest ELD device they can find and hope it doesn’t work all the time.  Companies that are a miserable place for drivers to work – won’t suddenly get better with ELDs.  If you run a good company and you are distinctively different – it’s your leadership and business philosophy that counts.  Your technology is your toolbox to do better planning and to keep it all running.

I encourage you to read “The Long Road to Success” by J.B. Hunt, you can find it here.  Not only will you learn how a great company was built, but you’ll see that clear application of technology as leverage.

Do you think you can improve your operations with the smart application of technology?  Do you need help creating a Standard Operating Procedure for your fleet?  Do you want to have a conversation about fleet technology?  Contact us here and let’s set a time to talk.