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Part 1: Practicing the Art of Effective Communication
By Ken Lucci
Rest assured, this crisis will end and life will eventually return to normal … albeit a new normal that will involve social distancing, fewer handshakes, and tons of handwashing.
It may be difficult to visualize that day in the middle of this ever-evolving situation, but as an industry we will survive and even thrive again. While many of us have been forever changed by the major events impacting our lifetime, our industry still stands, and we only did so by adapting and evolving in order to survive! The same will happen after the coronavirus crisis has ended. Whether it ends with a bang—like someone inventing a vaccine or developing a cocktail of drugs that will shield the population from the virus—or a whimper, end it will (I promise).
When the economy starts moving again, so will we in a big way. Many corporate executives will have to travel to firm up their own businesses, re-establish their supply chains, and take advantage of new opportunities that will surely emerge. Private individuals will travel again after weeks that seem like years “sheltering in place” with their loved ones.
The question then becomes what the speed of recovery will look like. If the rebound looks like a hockey stick and the economy ramps up exceptionally fast in a dozen weeks instead of many months, we had all better be prepared to rebound quickly. Conversely, if the new normal takes months to take shape, as business owners and leaders we must also be prepared for that eventuality and be ready to deal with it (Part 2 of this article will cover more on that). While we wait for that inevitable future, here are a few recommendations as we ponder surviving now in order to thrive later.
Leadership for Your Team
Aristotle once said, “Nature abhors a vacuum.” It’s a truism that can be applied to leadership as well. Stop letting the vacuum of information be filled by others and start filling it yourself with the right knowledge. Practice the art of communication.
Our businesses may be close to idle right now, but as owners and leaders we cannot afford to be. Our managers, staff, and customers depend on us for information, critical thinking, and timely decision-making. Most operators have had to furlough or lay off staff or make drastic cuts. That conversation should not be the last about the effects of the virus. Let it be the first: If you want your dedicated team, the people who helped to build your business, to come back to work when this thing ends, then it’s imperative that you are engaging them in a positive way. Reach out to your staff regularly even if it is to say hi and see how they are doing. The more personal the better, but if you must do it in writing, then be as one on one as possible by sending it to their personal email or phone.
During a time when actual social distance is a must, if you expect people to follow you through this situation and be there when it ends, that distance must be bridged with open dialogue and honest discussions about the future. Brief them on the positive actions you are taking to save the company and get them back to work, even if these actions have yet to bear fruit. Seek their advice: Ask them what they think we should do to help get through this and what changes can be made to the operation when things pick up. Promise to communicate with them again, urge them to email you if they have questions or comments, and thank them for their patience and understanding. If you really mean it, then treat them like the valuable family that you say they are.
Don’t Ghost Customers
After frequently updating your team, communicating with customers is an absolutely critical task. This too needs to be on an ongoing basis. I recommend reaching out via phone to (or continuing dialogue with) your largest customers first and working your way down the list; make it a goal to speak directly to your most important 50 or 100 accounts. Have your staff also speak to their peers within these organizations.
The first message you must convey is one of optimism and confidence. The more important these customers are to you, the more confidence you should exude. Perception is reality, while they obviously know the coronavirus has negatively affected our businesses—it’s affected every business—they don’t need the gory or depressing details. They need to know you have taken appropriate measures to keep them safe and that you will be there for them when they’re ready to get back to business. Deliver that message.
The second goal of these conversations is to genuinely ask how they are doing during this crisis as well as what is happening in their sector and market. This should help gauge your actions during implementation of a recovery plan (more on that in the next installment). Let these clients know you are personally available—now and any time—if they need anything, no matter how small or out of the ordinary the request. End the call by promising to check back with them as things recover. Editor’s note: If you must do this via email, we recommend using a subject line without “coronavirus” or derivation of it. Your inbox is filled with a hundred non-personal form letters just like that, and honestly, do you read them?
Pay attention to your social media as well. It’s equally important not to post doom and gloom on your business page (or your own, if customers are also friends). I’m not recommending that you avoid social media, or post sunshine and lollipops. Find the right balance of information and confidence as you inch closer to “business as usual” and avoid being tone deaf. If you have only one trip today, don’t SAY THAT! Instead, celebrate it in a generic narrative, such as:
“We are happy to be transporting business executives to Boston today as a safer alternative to air travel.”
“Our sprinters have partitions to keep that whole social distancing thing going, and we’ve been doing it for years.”
“Bacteria and germs? Our vehicles have always gone through a daily cleaning regiment, but we have 10x’d it to combat this virus for your safety and the safety of our team.”
Keep Your Own Sanity
To combat misinformation, start by trusting credible sources. I spend time outside of phone calls and emails with clients by checking the CDC website, reading economic forecasts from analysts at JPMorgan and Goldman Sachs, and flipping between CNBC and Bloomberg for cable-based business news. There isn’t a lack of information; there’s a lack of reliable information. Think before you link.
The second way to keep calm as this crisis unfolds is to schedule time to unplug and relax. Yes, I know there’s a lot to do while filling out SBA disaster relief forms and effectively managing your idle business, but it really is important to take time for yourself by shutting off the news, putting down the smart phone, engaging with family one on one, reading a book, taking a walk, and in general finding ways to stay healthy and positive. Remember: All of this is out of our control, and we are all in this mess together (while being appropriately socially distanced, of course). Don’t let this consume you.
Fear of the unknown is one of the worst feelings in the world: While we are all in uncharted territory—a time when every operator has had to make gut-wrenching decisions—we must find ways to manage our way through it without being undone by it. Every one of us must resist the urge to steer directly into the crazy skid by only thinking about the near future and getting caught in the gloom on social media (or adding to it) while we all take this unprecedented journey together.
Need more examples? Email me at klucci@drivingyourincome.com and I will help you develop a few at no cost.
Ken Lucci is the founder of industry consulting firm Driving Your Income. He may be reached at klucci@drivingyourincome.com.
[04.06.20]
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By Chris Przybylski
Parking and storing fleet vehicles for a long period of time is a concept that is foreign to many operators. As our industry struggles with this unprecedented challenge, here are some tips to help keep your fleet in peak condition until you’re ready to return them to duty. This advice is for short-term storage—around two or three months. If you plan to park and store for a longer period, additional care will be needed as seals begin to dry out and the battery begins to lose charge after about 90 days. Although this list could apply to all kinds of vehicles, it was specifically intended for sedans and SUVs.
Prior to Storage
- Change oil and filter and perform thorough mechanical inspection, including topping off all fluids
- Thoroughly wash and apply quality coat of wax to preserve the exterior (perhaps a great job for idle team members)
- Condition leather seats
- Fill the fuel tank (to prevent moisture from building up in tank) and consider adding a fuel stabilizer
- Inflate all tires to proper PSI
- Put microfiber towels under the wiper blades
- Plug the exhaust with a towel to deter critters and dirt (don’t forget to remove before starting and replace)
- Use or close sunshades if stored outside
- Consider covering the car to prevent damage
- If you have one, use an ozone machine prior to storage to kill bacteria that can cause unpleasant odors
- Place chocks between tires; avoid using the parking brake as it may damage pads and rotors (could fuse)
While in Storage
- Check under the hood for signs of animal nests or damage including chewed wires or hoses
- Inspect under the vehicle for any fluid leaks or drips
- Drive the vehicle for about fifteen minutes every two weeks (if insured) or start it and move it around the parking lot (if uninsured)
- Replace chocks, covers, and exhaust cover
- Document any damage or repairs made during storage
Related Items
- Cancel or suspend GPS/ELDs and/or cameras
- Place out of service placards on the dash
- Remove easy access to vehicle keys
- Create a checklist (possibly within your fleet maintenance software) that details pre-storage maintenance and periodic inspection during storage
- If possible, reduce insurance costs by removing liability coverage
A special thank you to Chris Przybylski of LBC Fleet, Safety & Compliance for providing this list. He may be reached at chris@lbcfleet.com.
Additional information was provided by AAA.
[04.06.20]
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By Matt Daus
Face mask and gloves aren’t the only things operators need to protect themselves during the corona-crisis.
We recently explored labor laws and civil rights issues that could leave you open to a lawsuit. However, the personal nature of chauffeured ground transportation that we generally pride ourselves on—that is, providing one-on-one individual service with the public—may put owners in a legal bind if a client, chauffeur, mechanic, or detailer, gets exposed to the virus during daily operation. Further, the work-stoppage due to mandatory quarantine or simply not having manpower may put you into breach of contract with a client. It’s important that you make yourself aware of any potential liabilities to protect your business.
Businesses that have contact with the general public could be targets of claims that their negligence led to a contract worker, customer, or client’s exposure to an infection of COVID-19. In the case of a virus, there may be a duty to warn such third parties, or to prevent access to certain facility areas or vehicles. To reduce risk of liability, operators should identify risk levels in their vehicles and office to determine appropriate control measures to implement to address the specific exposure risks, including staying up-to-date and following guidelines established for employers by the World Health Organization (WHO), the U.S. Center for Disease Control and Prevention (CDC), and the federal Occupational Safety and Health Administration (OSHA).
Transportation companies may protect themselves against potential claims for the above-referenced actions in a variety of ways, including:
- Following guidelines established by WHO, CDC, and OSHA to protect against exposure to the virus
- Developing an infectious disease preparedness response plan that considers and addresses the risk level of the worksite and job tasks
- Ensuring employees implement basic infection prevention measures
- Performing routine environmental cleaning
Businesses should review their emergency operations to determine what procedures and coordination are designated for a pandemic. Windels Marx has prepared a checklist that is available here.
While ensuring your clients have a clean, safe ride is imperative, protecting your employees from exposure is equally important. "Ordinary diseases of life" (i.e., those to which the general public is equally exposed) are generally excluded from workers' compensation insurance programs, but if an employee can establish a direct causal connection to the workplace (e.g., a chauffeur transported a client who has tested positive for COVID-19), there may be a valid argument for workers' compensation insurance coverage. To the extent that other claims for employee-related coronavirus illness do not qualify for workers' compensation benefits, coverage might still be afforded under certain insurance policies. Business should review their insurance policies for relevant provisions.
The COVID-19 pandemic has raised questions as to whether the outbreak and ensuing government restrictions will excuse non-performance of otherwise binding contracts. Changing COVID-19 developments impact a party’s ability to potentially excuse contractual nonperformance through multiple legal theories, including force majeure provisions. The results will depend on the contractual language, the state law governing the contract, and purpose of the contract.
Traditionally, force majeure clauses can excuse a party’s nonperformance under a contract when extraordinary or unforeseen events prevent a party from fulfilling its contractual obligations. As defined by the leading treatise on contracts, a force majeure clause provides a means by which the parties may anticipate, in advance, a condition that will make performance impracticable. When parties find that their contracts are silent on the force majeure issue, parties should assess alternative common law mechanisms for excuse of nonperformance. In the present circumstances, impossibility of performance via various government declarations would enable a viable argument that performance was rendered impossible “by law.”
As the COVID-19 pandemic continues to develop, businesses should take proactive steps to ensure continuity of operations sufficient to meet existing contractual obligations and evaluate whether their counterparties are doing the same. There are potentially multiple grounds to excuse non-performance due to the COVID-19 pandemic and ensuing government actions, which requires particular examination of the contractual language and the case law of the relevant jurisdiction.
Matt Daus is a partner with law firm Windels Marx and the former commissioner of the New York City Taxi & Limousine Commission. He can be reached at mdaus@windelsmarx.com.
[04.03.20]