Quantcast
Jump to content

Recommended Posts

Posted

Thanks to our Partners, AAPEX, NAPA TRACS, and Automotive Management Network

This episode centers on John Gustafson's journey managing his automotive repair business, focusing on internal succession planning and implementing the Entrepreneurial Operating System (EOS). John shares his experience developing an internal succession plan, emphasizing the importance of nurturing leadership within his team. He explains how EOS has enhanced meeting structures, accountability, and strategic vision, fostering a motivated workforce.

Show Notes

  • Succession Planning Discussion (00:02:30) John shares his challenges with succession planning, emphasizing internal leadership development.
  • Implementing EOS (00:03:20) John discusses how he started implementing the Entrepreneurial Operating System (EOS) in his business.
  • Team Involvement in EOS (00:04:20) John explains how he engaged his team in the EOS process and its benefits.
  • Vision and Leadership Transition (00:05:15) John outlines the importance of leadership transition in their three and ten-year plans.
  • Weekly Meetings and Accountability (00:06:47) Discussion on the structure of weekly meetings and the accountability fostered through EOS.
  • Shop Scale and Success (00:08:04) John shares his shop's sales goals and emphasizes that size doesn't determine success.
  • EOS and Business Discipline (00:08:57) John highlights how EOS has helped instill discipline in their operations.
  • Opportunities in Issues (00:11:13) John elaborates on how issues are viewed as opportunities for improvement in their meetings.
  • Engaging Team Ideas (00:12:21) Carm and John discuss the importance of team input in generating new ideas.
  • Profitability vs. Sales Goals (00:12:47) John emphasizes the significance of profitability over merely hitting sales targets.
  • Structured Meeting Agendas (00:13:12) John describes the tight agenda structure for their meetings to ensure efficiency.
  • Remote Meeting Dynamics (00:14:44) Discussion on how John conducts meetings remotely while managing from different locations.
  • Starting EOS Implementation (00:14:57) John advises listeners on how to begin implementing EOS in their businesses.
  • Leadership Recognition and Ownership (00:15:11) John shares examples of leaders stepping up to embrace ownership opportunities.
  • Bonus Structure Discussion (00:16:01) John explains the current bonus structure and its relation to future ownership.
  • Future Ownership Plans (00:17:12) John discusses potential plans for selling the company to the next generation.
  • Profit Distribution Strategy (00:18:29) John outlines how profits are reinvested into employees rather than external spending.
  • Selling the Company on Credit (00:21:55) John discusses his plan to sell the company to his team on credit.
  • Team Accountability and Profitability (00:22:12) The importance of team accountability for ongoing profitability is highlighted.
  • Difficult Decisions in Structuring (00:22:31) John reflects on the challenges of formulating his business structure over the years.
  • Undercover Boss Experience (00:22:49) John shares his experiences driving the courtesy shuttle and engaging with customers.
  • Customer Feedback and Interaction (00:23:35) John explains how he interacts with customers to gather feedback on their experience.
  • Intro to Auto Boot Camp (00:24:25) The summer program for young people to learn automotive skills is introduced.
  • Engaging Young People in Auto Training (00:26:11) Details about the boot camp's curriculum and hands-on learning experiences are shared.
  • Importance of Skilled Trades (00:26:57) Discussion on the need to expose young people to skilled trades and automotive careers.
  • Social Media for Recruitment (00:29:02) John explains how social media helps attract young participants to the boot camp.
  • High School Shop Collaboration (00:30:12) The partnership with local high schools for automotive training is discussed.
  • Future Industrial Arts Complex (00:31:09) Plans for a new facility to expand training opportunities for various trades are shared.
  • Entrepreneurial Mindset (00:33:22) John reflects on the entrepreneurial mindset and the drive for continuous improvement.
  • Coaching and Business Growth (00:34:21) The role of coaching in expanding business potential and overcoming limitations is emphasized.

 

Thanks to our Partners, AAPEX, NAPA TRACS, and Automotive Management Network

 

Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. 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/

Get ready to grow your business with the Automotive Management Network: Find on the Web at http://AftermarketManagementNetwork.com for information that can help you move your business ahead and for the free and informative http://LaborRateTracker.com

Connect with the Podcast:

-The Aftermarket Radio Network: https://aftermarketradionetwork.com

-Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/

-Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976

-Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters

-Subscribe on YouTube: https://www.youtube.com/carmcapriotto

-Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/

-Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/

-Follow on X: https://twitter.com/RResultsBiz

-Visit the Website: https://remarkableresults.biz/

-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

-Special episode collections: https://remarkableresults.biz/collections

Click to go to the Podcast on Remarkable Results Radio

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Available Subscriptions

  • Have you checked out Joe's Latest 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.
  • Similar Topics



  • Our Sponsors

×
×
  • Create New...