Sounds to me like you are doing a great job with your pup! Agree with Stosh and Jakoda, you may be expecting too much from your pup. The most important thing you should work on at this stage is developing your relationship with him, and having a lot of fun!!! He will come to associate work and training with having fun. Training sessions should only be five minutes long or so, and it is normal for pups (and even adult dogs) to focus beautifully when in the house with no distractions, but be too distracted when outdoors to do the same. So not anything that you are doing - just a silly pup with limited ability to concentrate and stay in focus.
A couple of tricks to keep him focused on you and not the treat bag: I'm thinking that after the click, the reward is not fast enough (hard enough to time the click correctly, but the timing of the reward after the click is also important). So you might try spitting treats at your pup to keep him looking at you, not at the treat bag. Have a treat in your mouth (aren't you glad you are using cooked chicken?), then when you have that elusive eye-contact for a split second, click and spit your treat at him. At first, he won't realize what you just did, so it will take several tries to get him to catch on, and after a few more tries, he will be catching the treats out of the air as you spit them.
To get him to focus longer, keep the focus for longer periods before you click. If he looks away, wait for him to look back at you. You can help him by softly saying his name or making weird noises to get his attention back - don't help him too much though, let him figure it out. Always reward almost as soon as you click. Do not try to work on extended focus by stretching the time out between the click the reward - you are clicking the extended eye contact, and every click should be closely followed by a reward.
To start getting him used to the heel position, keep kibble-like treats in you left pocket (cat kibble works well). At first, every time puppy happens to be on your left side, praise and give a treat. Don't set it up, just do it as part of a normal day, as often as possible. You will notice that pup will start seeking out your left side! When pup does this, hold kibble in hand down at pup's level, and move forward a step or two. Your pup should follow focused on the kibble, and let him have it.
Do this when out on leash walks - let pup explore around on leash, but if he looks at you, moves to your left side, walks accidently in heel position, be quick to praise and reward. This is just getting your puppy used walking next to you, and being comfortable there. When he starts walking on your left on his own for treats, extend the number of paces he walks before a reward gradually.
Next step is having him walk next to you, and give you eye contact before he gets a treat. Work on these basics for a few weeks - don't ask for too much too fast, show your pup that you are always happy with him - if you get frustrated, he really won't understand why, and may stop offering and trying new behaviours for fear that he will displease you.
Hope this helps!
As for jumping, you will run into some heated debates on what is best for a puppy, but for me, if the pup could easily jump in and out of my vehicule, than that was when I stopped the lifting and carrying.
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Keeta BH, OB1, TR1, AD
Rottweiler/Hairy Dog mix?? 2004-2015