Creating Psychological Safety For Your Employees [RR 901]
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By Joe Marconi in Joe's Blog0 commentsAuto 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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By carmcapriotto
"Do you have the strength to be honest with yourself?" Michael Smith discusses the importance of personal and company-wide SWOT analysis. He explores the need for continuous learning, development and the role of collaborative feedback in identifying blind spots. He emphasizes the importance of going beyond the initial analysis to consider future goals and potential obstacles. Michael Smith, Herzberg Smith and Co, Michael Smith’s previous episodes HERE Show Notes
The concept of doing a personal SWOT analysis (00:01:57) Exploration of the idea of doing a personal SWOT analysis and the importance of getting feedback from others. Starting a personal SWOT analysis with a company SWOT analysis (00:06:23) Suggestion to start the personal SWOT analysis by first conducting a company SWOT analysis and using the insights to inform the individual analysis. The SWOT Analysis and Leadership (00:08:03) Discussion on the importance of doing a SWOT analysis for businesses and the role of leaders in driving the future of the organization. The Importance of Self-Development for Leaders (00:09:31) Exploration of the need for leaders to participate in their own self-development and identify their strengths, weaknesses, opportunities, and threats. The Path to Mastery for Individuals and Organizations (00:14:54) Emphasis on the ongoing and evolving nature of the path to mastery for individuals and organizations, and the importance of continuous improvement. The importance of individualized learning and development (00:15:03) Discusses the concept of individualized learning and development programs, focusing on strengths and weaknesses. The need for continuous learning and development (00:16:25) Emphasizes the importance of continuous learning and development, including attending conferences and reading books. The importance of accountability and institutionalizing development (00:18:10) Highlights the need for leadership to walk the talk, institutionalize development, and hold people accountable for continuous learning and improvement. The SWOT Afternoon (00:22:08) Discussing the concept of doing a personal SWOT analysis with the team and the benefits of fostering a collaborative culture. Facilitating the Conversation (00:23:14) Exploring the art of facilitating a conversation and the importance of listening and not interrupting during discussions. 360 Reviews and Mentoring (00:25:11) Explaining the use of 360 reviews and the importance of selecting trusted individuals for feedback, as well as the benefits of mentoring relationships within the organization. Inviting Industry Guests (00:29:56) Carm and Michael express their interest in inviting industry professionals to share their experiences and discuss the effectiveness of implementing the discussed strategies.
Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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By Changing The Industry
Episode 141 - Embracing Change in the Automotive Repair Industry With Matt Ruffman
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The Ripple Effect of Recognition: Lessons from Bill Hader [E111] - Diagnosing the Aftermarket A to ZBy carmcapriotto
The trend of giving credit (00:02:36) Bill Hader's interviews and his habit of giving credit where it's due, discussing the importance of acknowledging others' contributions. The struggle with giving credit in management (00:05:04) The difficulty that managers and owners face in giving credit to their personnel, emphasizing the inconsistency and negative impact of not recognizing others' efforts. The benefits of giving credit (00:07:29) The positive outcomes of acknowledging individuals by name for their work, such as increased customer satisfaction, confidence, and word-of-mouth recommendations. The importance of technician training (00:09:46) The need for technicians to continuously update their skills and knowledge in order to diagnose and repair complex vehicles. Positive interactions with clients (00:10:55) The significance of positive interactions with clients and how it can lead to customer satisfaction and word-of-mouth recommendations. Recognizing the contributions of the team (00:13:20) The importance of acknowledging and appreciating the contributions of all team members in a shop, including service advisors, managers, and owners.
Thanks to our Partner, NAPA Autotech napaautotech.com
Email Matt: [email protected]
Diagnosing the Aftermarket A - Z YouTube Channel HERE
Aftermarket Radio Network: https://aftermarketradionetwork.com/
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Brett Beachler shares the history of his business, the impact of closing on Saturdays, and the importance of creating a positive work environment. He also discusses the significance of customer trust and his future goals for his business. Brett Beachler, Beachler’s Vehicle Care & Repair, Peoria, IL. Listen to Brett’s previous episodes HERE Show Notes:
Closing Saturdays and its Impact (00:03:20) Brett discusses the significant impact of closing Saturdays on their business operations and the positive response from their customer database. Increased Revenue and Team Morale (00:04:37) Brett shares how their decision to close Saturdays resulted in a 20% increase in revenue and improved team morale. Distinguishing Factors of the Business (00:07:19) Brett explains the factors that make their business different, including providing honest advice, focusing on cost per mile, and attracting a more educated demographic of customers. The Light Atmosphere and Customer Experience (00:08:21) Discussion about the importance of creating a positive atmosphere and delivering exceptional customer experience. Forward Thinking and Setting Dental Style Appointments (00:10:24) Conversation about the benefits of proactive maintenance and the importance of scheduling appointments in advance. The importance of people skills (00:15:31) Discussion on the significance of understanding and managing the different personalities and needs of employees for successful business operations. Benefits of being part of a 20 group (00:17:07) Exploring the advantages of joining a 20 group for business owners, including the opportunity to learn from others and receive support. Updating Processes and SOPs (00:22:34) Discussion about the importance of managing processes and standard operating procedures (SOPs) properly, transitioning from paper to digital form, and using Microsoft server for storing SOPs. Refining Digital Vehicle Inspection (00:23:25) Focus on improving the efficiency and effectiveness of the digital vehicle inspection process and making it seamless for both customers and technicians. Equipment Upgrades and Expansion (00:23:59) The impact of daily training (00:29:45) Discussion on the importance of daily training for personal and professional growth, comparing it to sporadic training every few months. Views on smartphones and idle time (00:32:46) Discussion on the negative impact of excessive smartphone use and the importance of utilizing time effectively. Thanks to our Partner, Dorman Products.
Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
Connect with the Podcast:
-Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz
-Join our Insider List: https://remarkableresults.biz/insider
-All books mentioned on our podcasts: https://remarkableresults.biz/books
-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom
-Buy Me a Coffee: https://www.buymeacoffee.com/carm
-The Aftermarket Radio Network: https://aftermarketradionetwork.com
-Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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