Entrepreneur Middle East: Driving Force
This article was originally published on Entrepreneur Middle East, written by Aby Sam Thomas.
Influential leader and CEO of Al Masaood Automotives, Irfan Tansel shares his thoughts on keeping your enterprise at the top of its game - even amidst a global economic crisis.
He is the CEO of a company called Al Masaood Automobiles (AMA), but Irfan Tansel doesn’t believe that he and his team at the multiple award winning UAE headquartered enterprise are in the business of selling cars- instead, he says that they are actually in the business of selling experiences.
“What makes us successful is the experiences of our customers, and how strongly they bond with us,” Tansel explains. “Our real product is superior service, friendly conversations, and happy customers, stemming from innovative solutions.”
The conviction with which Tansel makes this statement can be attributed to experience- both his and of his company. While Tansel boasts of a career that has spanned more than 40 years and has seen him work across three continents of the world, AMA has been in business for over 40 years in the UAE as the automotive arm of a diversified family business.
As the sole distributor of automotive brands Nissan, Infiniti, and Renault in Abu Dhabi, Al Ain, and the Western region of the UAE, AMA has carved out a space for itself in what has been (and remains) an extremely competitive business sector in not just the country, but around the world as well.
Indeed, the company was recently declared the winner of the 2019 edition of the Renault Global Partners Award, P.A.R.I.S. Challenge, which recognized it as the best performing Renault dealership in 2019 globally, through its achievement of 40% year-on-year sales growth, resulting in Renault having an increased market share in the Abu Dhabi market. This accolade comes on the back of AMA receiving the Nissan Global Award 2019 - National Sales Company, as well as a host of other industry recognitions and awards through the years it’s been in operation.
“The business has lived through the ups and downs of the economy, and it has always managed to remain on top of its game,” Tansel says. “There are many factors that contribute to this success, but perhaps the most prominent one is the leadership philosophy we have at AMA, where our people are empowered to do their best, and to bring to the table the best of innovations and solutions.”
And it’s this sentiment that Tansel credits as having helped his enterprise make its way through the COVID-19 crisis that’s enveloped the world right now. Much like every other business out there, Tansel admits that AMA too has been negatively affected by the coronavirus pandemic. “The COVID-19 crisis has had a swift and severe impact on the globally integrated automotive industry,” Tansel says. “The symptoms included a disruption in the exports of parts, large-scale manufacturing interruptions, and the closure of assembly plants abroad.
Locally, the automotive market did also witness a harsh decline in the sales of passenger vehicles. Fleet and SME sales have plummeted, retail also suffered due to the uncertainty on the economic impact of the crisis and decline in customer sentiment. There was a stronger decline in luxury vehicles than in the mid-range vehicles. We have witnessed a 50% decline in sales locally in UAE so far in Q2.”
These comments paint a rather dismal state of affairs but Tansel notes that there are glimmers of light showing at the end of the tunnel as well. “We are witnessing slow recovery since July,” Tansel says. “At AMA, we experienced slower sales during the second quarter of 2020 at the start of the global health crisis. We are, however, fortunate that the impact of the crisis on our organization was shortlived, as we began to record significant improvement in our sales towards the end of the second quarter.
We have already exceeded our forecasted retail sales by 22% across all brands, and we aim to surpass these retail forecasts by the end of 2020. We are confident that we can achieve our sales targets despite the challenging market conditions. Our confidence stems from the cohesive efforts of our team, and our effective strategies that keep pace with the developments in the market and customer preferences, as well as our innovative market campaigns.”
AMA has also benefited from being located in the UAE, Tansel says- not only was the company grateful for the economic stimulus measures rolled out by the government over the course of the coronavirus pandemic, it was also able to support the critical need for vehicles in industries like logistics and mobility during this time.
Tansel also points out that while the COVID-19 crisis may have spurred many businesses to pursue digital offerings, AMA was well ahead of the curve in that regard- and that has been something that’s worked to the company’s advantage in the current circumstances.
“Due to health and safety considerations, there has been an accelerated transition to digital channels within the automotive industry,” Tansel says. “But our company is way ahead in this department, as we had already begun our digital transformation journey long before the pandemic hit. We have observed a surge in the use of our innovative digital offerings such as the e-commerce solution that we launched in September 2019, our online financing solution, and the Nissan full online buying experience (CLIX) during these times, and we expect that more and more of our clients will utilize these channels in the months ahead.
Amid the raging pandemic, the company has emphasized more than ever the importance of delivering virtual services to our customers to avoid the need to visit any of its facilities. Our teams have been conducting live video conferencing with potential clients, assisting in home test drives, and offering our e-commerce platform and vehicle delivery service for the convenience and protection of our customers.”
Another initiative that AMA rolled out during this period was Project Wiqaya (wiqaya means “prevention” in Arabic), which aimed to protect the health and safety of AMA’s employees and customers, as well as members of the communities in which it operates in. “Under Project Wiqaya, daily health checks, audits, safety measures, and communication were initiated across the organization,” Tansel reveals. “Everyone was kept informed on how the company is performing and responding to the pandemic as it unfolded.”
At this point, it does seem like AMA has managed to accomplish quite a lot through the course of the coronavirus pandemic- and one can draw it all back to some careful strategizing done by Tansel and his team at the onset of this crisis.
“Amidst such uncertainty, it is critical that companies take a comprehensive approach, and develop a range of scenarios and robust contingency plans to navigate through these turbulent times,” Tansel explains. “We met earlier in March and derived a multi-scenario strategy for the company, taking into consideration different possibilities of how the pandemic will unfold.”
At the same time, AMA’s insistence on keeping its business going through the course of the pandemic bodes well for the enterprise when the COVID-19 crisis ebbs out. Tansel predicts that as the UAE economy begins to heal itself from the effects of the coronavirus pandemic, the automotive sector will see industry competition between car dealers in the UAE return to a healthy and robust level.
“On a personal level, the pandemic brought me to the realization that nothing can stop you, despite any circumstance,” Tansel adds. “We remained open throughout the pandemic. Our 1,000+ employees turned into front liners risking their lives to ensure uninterrupted service to the public and the government. We had to put together immediate committees and special arrangements to ensure everyone remained safe, including our customers. We also ushered the teams and kept them going with daily communication. We launched over seven major new solutions, and turned the business digital within weeks, and kept very busy. It was an eventful period, and it taught us a lot about ourselves.”
“We can achieve our sales targets despite the challenging market conditions.”
THE ROAD AHEAD
Al Masaood Automobiles CEO Irfan Tansel lists four factors that businesses need to keep in mind to survive in a post COVID-19 world.
1. Digital preparedness
“Brands across all sectors have no choice today but to be ready to sell their skills, products and services online. We at AMA have anticipated the need to be digitally present, and we were the first regional automotive dealer to launch our e-commerce platform.”
2. Value addition
“Customers have become more cautious with their spending, and are now looking for a lot more value to come with their purchases.”
3. Shift in priorities
“We know that the pandemic has caused a major shift in customer priorities; however, car ownership remains one of them. In fact, the pandemic has discouraged customers from sharing the ownership of vehicles.”
4. Humanizing your presence
“We need to find creative ways to talk to our customers from behind the screens. There is a lot of reinvention needed to the messaging and selling online that we must adopt faster than ever.
While Tansel is quick to direct any applause for AMA’s achievements to his team at the enterprise, one cannot deny the important role he himself has played at the company since his appointment as its CEO in 2017. Tansel’s model of leadership is based off the lessons he learned over the course of his career, which began when he was only a teenager.
“I started as an apprentice to a car mechanic when I was just 15 years old,” Tansel reveals. “I’ve built myself up to my current role by working from the ground up, persevering, and striving to the best version of myself. I committed to understanding the industry in depth. I now have 40 years’ experience spanning across three continents, and I have surrounded myself by many great mentors who I have learnt from along the way- and I’m still learning.
By default, I have a competitive personality. I constantly want to challenge the status quo, and push the norms to create new, disruptive strategies that are beyond the industry scope. It’s an exciting time to work in the automotive industry, as we welcome new developments, autonomous technology, and ultimately, a new era of automotive.
My career has been an exciting journey. Yes, there have been challenges along the way, but challenges make us stronger and make for an exciting life. I’ve learnt that a positive mindset, action, and daily perseverance towards a clear goal goes a long way. One of the biggest lessons I’ve learned from my mentors is that the best visionaries don’t live day-by-day. We must always be re-imagining, planning, and steering the ship.”
From Tansel’s perspective, the key to building sustainable businesses is by building “ambitious, productive, agile, competent, and high performing workforces that are focused on innovation,” and that’s precisely the strategy he’s put to work during his time at AMA. “A Wall Street Journal article suggests that ‘most innovations are created through networks– groups of people working in concert,’”
Tansel explains. “When people and their different points of view and experiences converge, they create the type of innovation that could not have been done or found alone.” Keeping this point in mind, Tansel says that there are three tactics he makes use of to lead with confidence at AMA, which he shares now in the hopes that it will help his peers in the business arena.
“Build a diverse workforce,” he starts. “Everyone sees the world differently, and a diverse team will bring fresh perspectives and creativity. Today, our top 13 key positions are filled with nine different nationalities, from India to USA, and from South Africa to Ireland, and aged between 34 to 58.”
“When people and their different points of view and experiences converge, they create the type of innovation that could not have been done or found alone.
Tansel’s next tip is to focus on building a workforce that feels empowered enough to make decisions on their own, and also feel supported when they lead such endeavors. “Your business won’t fail if you have a bad plan,” he notes. “It will fail if your employees are ‘told’ what to do- they will not put their hearts and minds into the plan’s execution.”
Tansel follows this up with his final pointer, which reiterates the importance of the team in an organization’s success. “People aren’t commit - ted to companies; they are committed to the people that they work for and alongside,” Tansel says. “Make it your top priority to rally your team together, because when you get everyone in the organization running with the same passion and purpose, you will be amazed at what you can accomplish just as we have been at AMA.”
THE EXECUTIVE SUMMARY
Al Masaood Automobiles CEO Irfan Tansel shares his tips for business leaders amid the COVID-19 crisis.
1. Keep a positive outlook
“Focus on what you can change, not what you cannot change. Al Masaood’s operations were in full force during the pandemic, and I didn’t miss a day of work. I kept the team motivated with constant visits and brainstorming sessions. We were all in it together, and we made it through.”
2. Care for yourself, …
…and care for your team too “Take some time to yourself, and label your emotions that you feel. Distance yourself from them, so that you can make conscious and quality business decisions. I disciplined myself enough not to share any of my anxiety with my team, and as hard as I could, I remained super positive, reminding the team of how grateful I am for their hard work. I mean every word I tell them- I’m genuine, transparent, and I push them to their limits, but I’m also always there for them. And of course, every little accomplishment was celebrated.”
3. Accept the new reality
“Sleep, drink lots of water, eat well, and exercise. Encourage your team to do the same. Don’t pretend it’s ‘business as usual,’ and directly address the issue head on. You are not helping in anyone’s development if you avoid difficult conversations. Normalize stress by explaining that this is a common psychological response the body feels to uncertainty. Sure, you might acknowledge that things seem somewhat unpredictable now, but at the same time, be realistic and focus on the actions, as a team, you will take to collaborate, and move forward together.
4. Empower your tribe
“Giving your team autonomy and a sense of ownership to do their jobs goes a long way. If there is one thing that I’ve learnt in my 40-year career, it’s the importance of ‘putting yourself in other people’s shoes.’ Ask them what they need to get their job done, and how you can be a help.”
5. Keep the conversations flowing
“Communication is key in times of crisis, and it restores trust and peace. Remain humble and transparent in your communication, share developments with your team, be it good or not that good- allow them the right to remain informed.”
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