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[Podcast] Creating the Right Environment for Shop Efficiency [THA 201]

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https://youtu.be/d-XvgyKBp7g

Chris Monroe, Monroe Tire & Service, Shelby, NC (Elite Coach)

Joe Marconi, Osceola Garage, Baldwin Place, NY (Coach with Elite Worldwide)

Kevin Vaught, Elite Worldwide Business Development Coach, former multi-shop owner

Key Talking Points:

Chris Monroe

How are we making our service departments more efficient through better communication and organization?

  • Equipment Location- why is it located where it is?
  • Digital paralysis...do we get so focused on technology that we lose the basics?
  • Being able to recognize basic pain points and saluting them
  • Inventory-labeled and organized
  • Radios-bring the conversation in close-save steps
  • Process-from when the customer walks in, to check out....making the process slick. What is working?
  • The problem is...shop owners have trouble seeing stupid stuff with clean eyes.
  • Solutions are typically simple and cheap.
  • Who is working on taking steps out of the process?

Joe’s Marconi

(A different perspective - I am sure we will cover shop layout, Digital MPI, tools, equipment, etc.)

  • It all starts with the right people. The stronger the team, the more potential for high efficiency and production. No amount of technology will ever take the place of people. Before you look to technology to solve problems with production, get your house in order with regard to the right people, culture and morale.
  • Leadership is key – MBWA- Management By Walking Around. Encourage your people, recognize the right behavior, give them praise, give them feedback. Celebrate wins and promote self-direction.
  • Cultivate leaders within your company.
  • Every aspect of the workflow needs to be reviewed often, refined and corrections made. To attain high efficiency requires an ENTIRE team effort. From where the customer parks the car, to effective write-up, dispatch, technician’s repair process, sales, quality control (and reducing comebacks), car delivery and follow up. 

Kevin Vaught

  • Recognizing the Problem-Stepping Back-Too close to the Forest to See the Trees! (recent example to share)
  •  Observing your team and how they function with existing resources both digital and physical-align the right person with the right job
  •  Balanced inventory-better utilizes space/cash-opens up possibilities for more efficiency. Example: too many tires in stock-make space-reallocate equipment/resources to become more efficient-Tire Install Room
  •  Key drop was fashioned with a hole in the wall..nice exterior and the keys just sort of fell into this in-between space that required lots of digging
  •  Centralize equipment-prep processes Ex: Oil drains, flush equipment- Fill Jugs
  •  Tools/supplies at balancer-at aligner (sounds simple, but are you doing it)
  •  Radio's were our biggest communication slam dunk
  •  Digital tabs...are they saved for quick access along with functional terminals
  •  Internet service...is it robust enough to carry a signal without getting dropped  
  •  Bottlenecks-we have a plan to install another road force
  •  Tablets instead of paper-our technicians now have in their hands mounds of information AND can push that to the right bucket in a timely manner
  •  SMS organization with canned job efficiency
  •  Parts inflow/outflow-returns-establish weekly process to eliminate backlogs
  •  SMS-fed by Insipely-DOT-AutoText-Alldata-Identifix-Mitchells-Carfax-Website parallels-TPMS resources/tooling (9)
  •  Tab Organization on each terminal-no matter which terminal, consistent lookup locations that save time 

Resources:

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This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

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This episode is brought to you buy Shop Marketing Pros. Your guides are Kim and Brian Walker with a rich history as shop owners and industry veterans. When someone searches for a shop, who are they finding? Your competitors? It should be you! The good people over at Shop Marketing Pros know how to drive website traffic and make Google work for you! www.shopmarketingpros.com

Click to go to the Podcast on Remarkable Results Radio

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

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