There always seems to be some "expert" or "guru" proclaiming they know the best and newest way to profitability, employee retention, or how to get another 15 miles out of a tank of fuel.

I will be the first to point out that industry issues need to be addressed and information disseminated for the benefit of everyone. This is part of what I do, and the lack of current and up to date information about industry issues can be scary.

What is not addressed enough is the seeming lack of urgency in developing leaders within organizations where managers play a prominent role. Leadership in trucking is responsible for developing future leaders. Anyone can be a manager, but what sets a top performing organization apart from the carriers no longer in operation is the strength, vision and depth of its leadership.

What someone's daddy did 30 years ago, or what position they inherited because they've been with their company the longest does not a leader make. The transition from manager to leader cannot be made by simply changing a person's title. If you were to take a look at a top trucking organization, you would readily see a company guided by true leaders. The best are not necessarily the biggest, have the most revenue, or the largest industry presence.

Trucking people might be in the business because it's their passion, or their destiny, or maybe they just don't want to do anything else; but one thing is certain, they're in it to make money. Let's assume for a moment that the return on capital investment must be at least equal to the equivalent of other enterprises where CAPEX will return 10% in a passive income role. By passive, I mean: no fuel, parts, drivers, claims, accidents, or safety audits. To be sure, most anything that will develop 10% or more ROI will need some kind of maintenance, upkeep, or administrative attention to keep focus and serviceability. Brokerage will develop discernibly more retained revenue than a fleet with equal revenue production.

The bottom line is determined by who used the smartest way of getting their target return, while not relying on the least common denominator to determine their success. In trucking, let's try not assuming the least is the driver. I find the better an organization's leadership, the better motivated and productive their drivers are. True, there will always be those drivers with an attitude or a developed skill set, but the same can be said about fleet managers, operations VP's, and Presidents.

The financial acumen and sophistication of many fleets' pales in comparison to that of manufacturing and other asset based enterprises. Revenue development is not the same as revenue retention, or costs of delivering those loads. For example, what are your trailer tire costs per mile? Many fleets lump all their tire costs into a single accounting line item, or worse, include everything under "Maintenance". Others have evolved and determined that specific cost identification can indicate problem areas, illuminate the causes, and target possible solutions. Fleet metrics will vary, but by comparing your costs to the industry norm, you will see where you stand. Now I want to return to the role of the leader.

By identifying Key Performance Indicators for all fleet functions, you will identify which areas are not performing to yours, or industry standards. By not making tracking of these KPI's a priority, your company will continue to perform the way it always has. You do not need to be a safety, maintenance, or operations "guru" to ensure your fleet performance is where it needs to be. You already have people in those positions that have evolved, through your guidance, to be up to date on the most recent developments in maintenance, safety, HR, accounting, marketing, operations and fuel issues. If they're not in place, this should be your first project for next week. Either get your people the right training and exposure to their area of responsibility, or get another person better qualified to track performance and be accountable for the results.

In the next discussion, we will set some standards for defining the characteristics and activities of trucking leaders for you to evaluate whether your organization should adopt a different approach going forward.

Whatever you do, do it passionately. Failure is an event, not a person. Every obstacle presents an opportunity in which to excel-if you seek it. You, as a person, only fail when you quit; and only then if you still have desire and hope.

"The greater the obstacle, the more glory in overcoming it." Moliere