Hughes: Leadership in Uncertain Times

There is an old saying that goes something like, "It is easy to be a good captain in calm waters." This saying, in a few words, delivers a succinct and valuable message to any leader or would-be leader out there in any industry. That message is not let yourself get suckered into "fool's gold" thinking that everything is well and good because all of the outside circumstances and influences relevant to a particular industry are favorable. The truth is that around any corner, there is a storm brewing, and that storm could range from a light rain to a full-scale monsoon or hurricane, and it is these times that test the mettle of leaders everywhere.

One of the many valuable traits of a good leader is self-awareness, or the recognition that one may not know everything there is to know about every situation. Good leaders have to have good teams, good teams are made up of the right people, and the right people are prepared to assess situations and know how their actions may impact situations to either improve them or exacerbate their challenge.

The independent motor vehicle aftermarket remains in a constant state of evolution that began over 100 years ago. Between the advances in technology onboard the vehicles, the technology in the parts and vehicle components, and the technology in the supply chain and logistical processes that make sure the right parts get to the right place at the right time, it is easy to be at a loss when trying to process these constant changes. Meanwhile, the ability to navigate these market disruptions can mean the difference between tremendous opportunities for suppliers, distributors, technicians, and vehicle service professionals, and a business fighting for survival.

The independent distributor is at the heart of this evolution. Positioned uniquely between the suppliers and the end users, warehouse distributors are often the first to know about problems on the horizon due to their relationships with service professionals, and as loyal customers to valued channel partners, they have a direct line to the supplier that can lead to rapid and immediate change for the better.

Bringing us to another trait of strong leaders, and that is communication. The ability to express the challenges and opportunities to internal employees, as well as customers, and even suppliers, ensures that everyone is on the same page and in the same playbook. Noting that a significant part of communication is listening, any leader must be able to take a story or situation from an interested party and communicate it elsewhere, internally or externally, to mitigate the pain or take advantage of the promise.

Focusing on internal over external communication, employees look to their leadership for direction. Not just direction in where to go and how to get there, but direction in how to feel about the circumstances around them. Longevity in this industry means that someone is likely to face uncertainty in terms of market volatility, global economic concerns, or even noise surrounding mergers and acquisitions. Every employee at any company will look to their leadership for how they should approach and respond. A leader must know that every eye in the business is on them. The highs cannot be too high, and the lows are never too low. A great leader is not only able to tune out the unnecessary and often loud noise and deliver a message to their team that the situation is under control, but the right steps are also being taken, and every employee has a valuable role in making sure company goals and objectives are met.

Morale is a very tricky thing, as attitudes are as different as the people and personalities they embody. Sugar-coating bad news can be the right thing at times, but not if it comes too close to an outright lie or attempt to deceive the team. When delivering bad news, make sure that it is done, if possible, with answers and ideas on how to turn the bad news around … This is where good leaders become great. Understanding the team's morale is an overwhelming factor in results.

Another trait of great leaders is the ability to predict the future. Obviously, we are not talking about palm reading, tarot cards, or any other psychic influence. I am talking about the ability to recognize a situation, process everything going on internally and externally, then make tactical moves or investments to either make a good situation even better or a tough situation more manageable.

Living through the pandemic demonstrated that nothing can be taken for granted, and nobody could have predicted that. Lives were changed, portfolios were changed, businesses were changed; yet those who made investments in the right areas have reaped rewards in the years since emerging from the pandemic. Sometimes investments can translate to more time, attention, sometimes it is people, other times it is a capital investment, but the ability to navigate these times and listen to the right people makes it possible to turn challenges into opportunities.

The independent distribution segment of the industry emerged from the COVID years in a position to take advantage of opportunities. Understanding that the buying decision factors often cited as reasons for purchase were thrown out the window in favor of availability. This led to a reset in brand passion and brand preference. Technicians that may not have compromised on a brand selection in the past had to make adjustments and use products and brands they never considered before … And in many cases found out that they worked. The industry is still adjusting to this drastic change as availability remains the #1 factor in parts decisions across the industry—and that was not the case previously.

Whether a supplier or a distributor/retailer, the end customer is always the person using the product or installing the part. Focusing on that person, the repair bay, and the service center is the key to driving top and bottom-line growth, as well as ensuring customer satisfaction. And when customers are happy (and buying), that means shareholders and stakeholders are happy.