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From Training to Triumph: Breathe Leadership Into Your People [RR 868]


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COO'S Max Orsborn and Dave Askwith discuss the importance of training and defined leadership in automotive businesses. They highlight the need for effective training that goes beyond just checking boxes, emphasizing accountability and pressure on individuals who attend training sessions. The conversation also touches on the significance of transparency and communication within organizations, focusing on clear communication during promotions and changes. Max and Dave share their experiences as leaders, with insights on admitting mistakes and making adjustments in hiring, as well as the importance of staying true to one's beliefs and vision. Max Orsborn, Gateway Automotive, Bavarian Autohaus, Midway Automotive and Tire, WA.

David Askwith, Managing Director, Auto Stream Car Care, MD. David’s previous episodes HERE

Show Notes

  • The importance of training and its effectiveness (00:02:59) Dave Askwith discusses the need for more training and a better understanding of its effectiveness in automotive businesses.
  • Lack of defined leadership and accountability (00:05:47) Max Orsborn highlights the lack of defined leadership and its impact on accountability and consistent understanding of reporting structures.
  • The lack of transparency and communication (00:08:30) Discussion on the importance of transparency and communication in leadership roles and the need for clear communication during major changes in the business.
  • Overcommunicating and addressing discomfort (00:08:55) Importance of overcommunicating and addressing discomfort when making managerial changes and the need to avoid making assumptions.
  • The responsibility of leaders in communicating changes (00:09:32) Discussion on the responsibility of leaders to communicate changes in the business and the importance of being present and involved in the communication process.
  • The importance of face time and trust (00:17:13) Discussion on the significance of spending time in the workplace, observing and building trust with employees.
  • Teaching leadership skills (00:20:42) Exploration of different approaches to teaching and developing leadership skills, including leading by example and promoting responsibility and accountability.
  • The importance of admitting mistakes (00:25:07) Discussion on the importance of recognizing when you were wrong and making adjustments in hiring decisions.
  • Accountability in leadership (00:25:59) Exploration of how accountability can go both ways in leadership and the humbling moments of admitting mistakes.
  • Value of peer groups (00:27:37) The benefits of being part of peer groups and how they can raise expectations and provide insights for success.

Thanks to our Partners, AAPEX and NAPA TRACS.

Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR

NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/

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  • Have you checked out Joe's Latest Blog?

         0 comments
      Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
      As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
      But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
      Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
      Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
      Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
      The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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