Hartshorne at the crossroads
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Martin Cronin of Crossroads tells CM about taking over and starting to improve fellow Volvo dealer group Hartshorne
Words : Stanton What do you do once you've achieved everything? Simple: go somewhere else and do it all over again.
That's what Martin Cronin appears to be doing: the boss of Crossroads Truck and Bus, the Volvo dealer group in Yorkshire and Lincolnshire, is now MD of Hartshorne Motor Services, the Volvo dealer group covering the Midlands.
Cronin left his role of national sales director, UK and Ireland, at Volvo and bought out Crossroads in 2005. Along with his senior management team. he turned it into a healthy, sustainable business, picking up the Dealer of the Year award at the Motor Transport Awards in 2008 for good measure.
In August, Crossroads* purchase of Hartshorne was finally confirmed, nearly a year after Cronin first approached Hartshorne's major shareholder Bryan Mason.
But why did Cronin approach Mason? His answer initially seems indirect, but it does make sense. He explains: "The Crossroads model is to develop people; when people take ownership of what they do, they can really deliver customer satisfaction.
"As much as you have to challenge yourself, you have to challenge your people, stimulate them to grow...
"Crossroads had almost become too small for our people we kind of had a glass ceiling. So, we looked at a number of opportunities, including diversifying into rental/contract hire and into other brands, but there's no easier expansion than an operation that replicates your own model."
Hence his approach to Mason about Hartshorne. Cronin was pushing on an open door: "Bryan wanted a stable foundation for his family business. Formed in 1967, Hartshorne has a fantastic brand, and loyal customers and staff. The business cultures of Crossroads and Hartshorne fit. Both have built their businesses with the view that the single truck operator is as important as the major fleet."
Certainly, it was also helpful that the two groups had the same bank behind them:" Volvo and the bank were both looking for a good succession solution at Hartshorne the bank was very supportive of our approach."
The deal means a combined business that accounts for 25% of the Volvo pare; 70% of the group's 6,000 vehicles are on contract maintenance; and the group will sell 600.000 workshop hours and f50m of parts a year.
A Long way to go
However, much work needs to he done at Hartshorne: it sits mid-table in Volvo's customer satisfaction league table, and struggled for profit in 2009. Cronin rightly believes that to achieve the latter, you must first deliver the former and that requires "real clarity of thinking that builds trust and confidence with staff and customers".
He explains: "I really believe in the Hartshorne brand. Its people are passionate about it: we need to galvanise that. Customer service will improve and so will market share. We operate a really flat management structure. Let the staff have a go they won't break the business."
One of the keys to improving customer satisfaction is to get closer to customers, Crossroads divisional director Keith Bradley explains that, in order to maintain business in the teeth of the recession, Crossroads converted its traditional sales staff into customer account managers and that same process will be repeated at Hartshorne. -We're really engaging with customers, collaborating with them. You've got to feel passionate and connected with them:' Cronin adds: -Customer account managers find the news about the operator, what their story is. You need to demonstrate an interest in your customers' business.
Improving the group's estate
Other changes will take place at Hartshorne too. Cronin is not satisfied with the quality of the group's estate. "This [the Birmingham site] is a 1960s operation..." He tails off as we look around the yard it's certainly showing its age.
"We've got an investment plan," he says. "Putting parts and servicing together is the norm now, but it's not been that way at Hartshorne, so we'll be bringing the two together.
"And how do you show the employees that they matter? Improve the showers!"
Inevitably, Authorised Testing Facility (ATF) status is on Cronin's radar for Hartshorne: VOSA has already signed off the Burton-upon-Trent site, while Birmingham and Stoke-on-Trent are in the application process. Cronin puts the investment required to bring those sites up to ATF standard at .E50,000 a piece.
There have been other developments too: Cronin has dropped Hartshorne's Hino and Lawrence David franchises, and some Crossroads staff have already migrated to Hartshorne.
Indeed, Cronin is now entirely focused on Hartshorne, relinquishing his operational responsibility as MD at Crossroads; taking over that role is Crossroads divisional director Paddy Limb.
Talking of the change process at Hartshorne, Cronin says: "You've got to hit it hard and fast when you do something like this. The period of pain has to be short. It's 90-day restructure: Hartshorne will be reshaped and remodelled by Christmas."
And just in time as the market has shown signs of bouncing back.
Limb explains: "We've had a number of conquest deals, and the used market has been strong in the second half."
Cronin adds: "The last four months have seen our highest order intake for both businesses for two or three years, since before the long lead times. We're in a good place for deliveries for next year." •