Telematics

Telematics
How to Obtain Senior
Telematics
Acquiring senior management’s support of a new program, such as telematics, is necessary, but can
be a difficult process. Steps to make the process proceed smoothly are listed. By Lauren Fletcher
C
onvincing senior management of the need for a telematics program in fleet can
seem impossible at times.
Several fleet management
experts provide their insight on how to
best achieve senior management support of a telematics program.
Keep Management Involved
During deployment and implementation, it is important to keep senior
management involved and in the loop
from the start.
“Make sure they understand how
telematics can benefit the organiza-
AT A GLANCE
To obtain senior management’s
support of a telematics program,
industry experts recommend you:
■ Keep management involved in all aspects of the program
from research to planning to implementation.
■ Create an ROI to determine potential cost savings to the company.
■ Present your plan to senior
management in a clear and informative manner.
■ Try a pilot program prior to implementing a telematics
solution to the entire fleet.
■ Update fleet policy to include details about the telematics
program.
■ Utilize senior management’s support to emphasize policy enforcement.
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tion by providing them with regular reports on hot button issues,
such as fuel savings, emissions
reduction, or maintenance,” said
Mark Conroy, vice president,
sales & marketing for Union
Leasing. “For example, reducconroy
tions in speeding can be correlated to fewer accidents and
lower liability. Tracking vehicle diresource intelligence for GE Capital
agnostics can be used to show reducFleet Services. “The best way to win
tions in maintenance costs and vehicle
and maintain senior management supdowntime. Fleet managers should be
port is to evaluate telematics solutions
able to track ROI over time and combased on those business cases and their
municate this information to senior
link to corporate goals — and maintain
management.”
that focus throughout the deployment.
Wheels Inc. recommends obtaining
Avoid getting distracted by the latest
buy-in from all managers by creating a
bells and whistles if they don’t specifi“telematics deployment team.”
cally address your operating objectives.”
This approach “will allow other
stakeholders to find reasons to support
Create an ROI
deployment of the telematics program
Senior management is concerned about
early on, and will allow for more supthe bottom line. A program or system
port for program enhancement
must be carefully researched and
down the road. This will also
reviewed, and a return-on-investensure that senior management
ment (ROI) analysis should be
feels a sense of accountabiliconducted.
ty for the success or failure of
“Fleet managers should prepare
a program, making them more
an ROI that will include the realikely to be vocal and assertive
sons and benefits of a telematics
clark
in support of it,” said Kimberly
program,” said Steve Guertler, vice
Clark, product application manpresident for EMKAY Inc.
ager for Wheels.
Some items Guertler notThe team can “champion an
ed at the top of an ROI list will
accelerated initiative to collect
include:
business cases from peers in op■ Fuel savings: achieved
erations, IT, sales, safety and
through less engine idling
compliance,” noted Dyan Finktime, increased miles per galhousen, strategy leader, mobile finkhousen lon through speed monitoring,
NOVEMBER/DECEMBER 2010
Management Support of a
photo: ©istockphoto.com/alexsl
Program
more efficient routing, and less
telematics program to track
es International (ARI). “Tying
GHG emissions.
and compare utilization inthe initiative to corporate goals
■ Safety savings: achieved
formation before and after
and objectives is key (e.g., cost
through safer driving and fewimplementation, includreduction, risk mitigation, imer accidents. ing vehicle use, idle time,
proving compliance, reducing
“We suggest the use of your
fuel consumption, milesgreenhouse gases).”
fleet management company’s ac- guertler per-gallon, number of trips
Fleet managers need to engage
steidle
cident management department
per day, and routing proearly with senior management
in conjunction with your in-house risk
cesses to determine if every vehicle is
from all parts of the organization. management department for deterbeing used efficiently. Depending on
“Clearly articulate the goals and
mining the ‘all-in’ cost of an accident
the telematics system selected, this inobjectives of the program and how it
(vehicle repair, legal, medical, Workformation should be easy to find and
will impact the organization, both fiers’ Comp, missed work, etc.),” noted
readily available.”
nancially and operationally. ConsidGuertler. “Obtain as much internal super identifying a single senior-level
port as possible when presenting the
Present a Plan Clearly
stakeholder in the organization who
program to senior management. The
Once a telematics program has been
will drive the program forward,” sugcost savings and health and well beresearched and an ROI determined,
gested Bruce Horan, director, PHH
ing of the company’s employees should
it’s time to present the plan to senior
Arval Telematics. “This person often
bring the support necessary.”
management.
comes from the area with the most to
Vehicle utilization is also a key
“When fleet managers are solicitgain from program implementation.
component in assembling ROI for a
ing support from senior management
For instance, the vice president of risk
program.
for implementing a telematics proand safety would be the most logical
“Before implementing a telematics
gram, they will be most successstakeholder/sponsor if the goal
system, fleet managers should gather
ful if they present the plan as a
of your telematics program is to
information on current vehicle utilizaway to address issues that are
reduce risk and increase drivtion and operating costs. This will be
important to their senior maner safety.”
needed to compare costs before and
agement, rather than focusing
Merchants Leasing suggests
after implementation and to calculate
on their own needs,” said Keith
showing senior management the
ROI,” said Conroy of Union Leasing.
Steidle, manager, product develsystem and what the overall orgahoran
“The fleet manager can then use the
opment for Automotive Resourcnizational impact will be. ➞
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Telematics
Diana Holland, director of fleet management services for Merchants Leasing uses a simple formula as it pertains
to just reduced idle time:
1-hour per day of
idle time reduction
x 1 gallon of fuel
x $2.50 per gallon
x 5 work days per week
x 52 weeks
x No. of vehicles in the fleet.
“Then, add all the other strategic
initiatives: reduced accidents (and the
cost reduction achieved there), reduced
maintenance cost and vehicle downtime, recovery of lost/stolen vehicles,
and the list goes on,” explained
Holland. “As soon as the senior
leaders see the financial impact
— and oftentimes the neat and
pretty reports and dashboard
tools — early adoption is easy
to achieve.”
photo: ©istockphoto.com/JimLarkin
The “road to savings” through telematics must be clear for senior management buy-in.
By presenting a clear plan to senior management, they can clear the road of many of the
obstacles a new program would typically face.
which it can gauge results after
the pilot is concluded. The strongest cost/benefit analyses can be
built from this approach, which
will allow for more senior-level
advocacy of the program.”
Stage the deployment as a series of manageable steps, added
holland
Try a Pilot Program
Geffroy, “highlighting successPilot programs can enable a fleet to test
ful milestones to build momentum for
the results of its ROI studies. “Considsubsequent phases.”
er a pilot to obtain data, and confirm
Once a program has been selected,
goals and objectives can be reached,”
“carefully analyze and perform the resaid Horan of PHH Arval. “At this
quired system integration so any current
point, other opportunities may be idenapplications work seamlessly with the
tified and quantified. Then, present
new system and make it easier for staff
a consolidated business case. Make
to transition,” said Geffroy. “Then desure all areas for savings opportunivelop key performance indicators for
ties (productivity, risk, vehicle operall application developers, adminisations) are included.”
trators, and users to provide the data
When looking for a provider, “senecessary for continuous system imlect a vendor capable of providing a
provement and refinement.”
solution that is both intuitive to maximize end-user adoption and also soUpdate Fleet Policy
phisticated enough to ensure the comFleet managers should integrate telepany meets its business objectives,”
matics data into fleet policies to pronoted Michael Geffroy, VP sales for
vide the ability to take action based
TomTom WORK.
on the data.
A pilot stage can occur dur“For example, speeding or
ing the budgeting phase or the
idling alerts that exceed comdeployment phase, according to
pany thresholds should require
Clark of Wheels. “Either way, it
prompt follow-up actions be
allows the deployment team to
taken with the offending driver
build a case study for the orgato change these behaviors,” exnization’s need for telematics
plained Clark of Wheels. “This
geffroy
by collecting baseline data from
way, poor driving behaviors can
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NOVEMBER/DECEMBER 2010
be identified proactively and used as
an input into risk profiles to identify
those drivers for whom intervention
is needed prior to an incident, rather
than afterwards.”
Clark recommended companies deploy regular communications about safe
driving behaviors and create rewards
for smart driving behaviors based on
the results from telematics data.
Next, Clark suggests finding ways
to integrate telematics into organizational processes. “This is especially
effective for revenue-generating activities such as dispatch and customer
relationship management (CRM) systems,” she said. “This will allow the
organization to continue to derive benefits from the program, and maintain
long-term senior management support
for telematics.”
Senior Management Helps with
Policy Enforcement
Inevitably, policy will need to be enforced and senior management’s support up-front will go a long way toward resolving disputes in the field,
noted Guertler of EMKAY.
“When launching the program, have
the CEO or other key figure announce
it internally. When issues arise, you
will be able to turn to that announcement showing the importance of the
program and senior management’s
support.” n