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Joe Marconi

Management
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Blog Entries posted by Joe Marconi

  1. Joe Marconi
    Some people ask me why I have taken on a project of this size in this economy. With the downturn in business, why not wait until things get better? Other shop owners question my sanity. They tell me; “don’t you have enough problems running the business you have already’? Why do you want more headaches?
     
    Well the truth is, I didn’t know the economy was headed into a downward spiral. And even if I did know, would it be reason not to expand? And is growing a business adding more headaches?
     
    Right after I got my approval from the town planning board last February, my shop foreman, lead tech and service advisor came to me and urged me to wait on this project because of the economy and the rise in gas prices. I told them absolutely not. I assured them that I have done my homework and did the math. I told them this would work. It will take hard work and years to see a profit, but when this expansion is complete it will be the largest and best-looking state of the art facility in the area.
     
    I also told thanked my crew for their concern and understood that they were fearful of their futures also. But I told them that without risk there is no gain. I reviewed with them the reasons for the expansion: the parking issue, the fact that we have outgrown our current facility, the fact that we own a building next door that is in such disrepair that its mere appearance hurts us and that just doing nothing would be wrong. By demolishing this building and erecting a new building with a brand new large parking lot would be good for business. The project also makes economic sense. It will increase the value of the property and makes the property and buildings more marketable.
     
    There will always be people who will think you are crazy. One of my tool vendors actually advised me against expanding because he felt I would be creating a business too large to sell. Too large to sell? Do you think Donald Trump ever felt that way? Or Bill Gates? Or Warren Buffet? I am not putting myself in their company, but that tool vendor is crazy, not me!
     
    My advice? Chase your dreams. Walt Disney lived by this creed and look at the empire he built. Don’t settle for average. Anyone can be average. Push yourself to keep growing and expanding. In business, if you’re not growing, you’re dieing!
     
    Stay tuned!
  2. Joe Marconi
    In order for the expansion project to be successful, we need to increase revenue. With an additional 4 bays, we will have the opportunity to service more vehicles in a given day, but opportunity alone does not pay the bills. Filling those bays each day will be the challenge.
     
    I have put together a plan that will increase car counts by increasing our exposure in the community and by providing a while-you-wait service program. We have begun TV advertising the start of the summer and have already realized positive results. We made a decision to decrease all print ads and increase our direct mail advertising to existing customers and prospect customers. We spent months getting all our advertising in order: creating a central theme, logo and artwork. It’s important to be being consistent with our message, creating our brand and value proposition.
     
    Our “Say Yes” program has been a huge success and will be our platform to launch the new facility. The “Say Yes” program simply means will never say no to a customer and will make attempt to accommodate the customer on their terms. I know what your thinking, “Is he crazy, have the customer dictate the schedule?” All I can tell you is that it works. Our “Say Yes” policy has increased our car counts and gross sales. Yes, it was difficult in the beginning and our techs did revolt. But after they saw an increase in productivity pay, they quickly changed their minds.
     
    We also plan on having radio ads and expand our exposure on the Internet, using Google and Yahoo. In addition to our paper newsletter, we started a monthly email newsletter, which is sent to all customers and all businesses the area. Email programs are extremely cost effective and can be launched at a moments notice.
     
    The last piece of the plan involves teamwork. We have created in-house customer training seminars to reinforce the value of customer service to all employees. Marketing starts and ends at the front counter. The best brake job in the world means nothing if the service you provide is not world-class.
     
    Next, I will share how to organize a large project.
     
    Stay tuned!
  3. Joe Marconi
    Before I made the final decision to expand from 6 bays to 10, I asked myself a series of questions: Why expand? How will the expansion affect my current business? How much of an increase in car counts do we need in order to support the expansion? How much of an increase in revenue do we need to support the new mortgage? How will this affect the future of the property? Will the population in my area justify the expansion? Who is my competition? What legal steps do I need to take? Are there demographic trends in my area that would be a benefit or hindrance to the project? What do I need to learn in order to make this work?
     
    As I mentioned in previous blog entries, you cannot take on a project of this size by yourself. There are just too many variables and issues along the way. Plus, I needed to also pay attention to my existing business. I give a lot of credit to people like Donald Trump and Bill Gates who have the talent and genius to organize large projects. But their strength is in HOW they organize the project, not in actually WORKING the project. You will never see Donald Trump working a crane or bulldozer, nor will you ever see Bill Gates assembling a hard drive. Their strength is in their vision and ability to bring a project from concept to reality.
     
    Since I don’t have the financial resources of people like Bill Gates, I needed to organize the project, create a plan and outline a detailed list with goals of items that needed to be done. After the initial concept and business model was created, I created a goal sheet of all the things that needed to be accomplished. This included items such as meetings with contractors, a site engineer, an architect, my bank loan officer, a business consultant and my lawyer. My plan had to make legal sense and financial sense.
     
    The next step after I picked my professional team was to create a goal sheet and timeline that I could refer to on a weekly basis to get periodic updates from my team. In this way I could track their progress and make adjustments. This team would be needed to get all the town approvals and permits. This process took almost 2 years.
     
    While all this is happening, the actual business model, building design and details of the new facility had to be developed and refined. My next blog entry will outline the next steps.
     
    Stay tuned!
  4. Joe Marconi
    We have all seen botched automotive repairs by people who were either not qualified or who tried to save money by attempting to do the repair themselves. And in the end it cost more money then it would have originally been because now the job has to be done over or completed correctly. The same holds true when building an addition or new facility.
     
    Picking a General Contractor is perhaps one of the more crucial steps if you are going to expand your facility or build another facility from scratch. Unless you have experience in construction or your family is in the construction business, I would not recommend doing it yourself. You need to pick a qualified General Contractor. There are just too many areas that you may not be qualified in.
     
    In my case, the general contractor picked up many questionable items during the design stage that would have cost me money down the road. Also, the coordination of all the different contractors is mind-boggling. A good G.C. knows the right contractors and will hand pick the best people for the job. The G.C. gets paid a percentage of the total job, but it’s well worth it.
     
    For me, I need to know that the project will be taken care of from start to finish so I can concentrate on building and running my business. My expertise is the automotive business, not the construction business.
     
    When choosing a G.C. ask people in your local area about well-known builders. Also, ask your customers. There just might be a G.C. or builder in your own database. Try to stay with a local company. It will be easier to go and see some of the work that the G.C. has done before. Plus a local G.C. knows the area, has dealt with the town before and will be familiar with your local building department, planning board and zoning board members. This makes a huge difference, especially if you live in a small town.
     
    As we speak, the framing is started and the property is finally graded and ready for new blacktop.
     
    Stay tuned!
  5. Joe Marconi
    After weeks of working with a graphic designer and reviewing tons of marketing information, we finally agreed upon the new signage and tag lines for the business. The new logo is redesigned from the old logo and will be more visible from the road. The tag lines are simple and to the point. The colors did not change: red, white and blue. We proudly took our new proposed signage to the Architectural Review Board for approval only to be shot down like a duck on the first day of hunting season.
     
    The panel consisted of six people who scrutinized my drawings as if there was a deep, dark, hidden message within my logo. They talked among themselves as if I were not even in the room. The funny thing about it was that the chairman said he had no problems or issue with my signage. It was the rest of the panel that had issues, especially one woman who wanted to change the shape of the signs; which would actually change the logo.
     
    I lost my cool for a moment and asked the panel if they gave McDonalds, Starbucks, Dunkin Donuts and K-Mart a hard time about their signs, colors and logos. I went on to explain that logo branding is a key part in marketing and that extensive research goes into logo and signage design. That did not go over well. All I got after my comments were blank stares and an invitation to come back in two weeks.
     
    Their concerns were that the signage might not go well with the building design. From the road, the building shows only the customer service area, the work bays face the rear of the property. Maybe they have a point.
     
    So now I need to go back and make changes and compromises, but holding to my original logo design.
     
    When dealing with town boards, compromises are inevitable.
     
    Stay tuned!
  6. Joe Marconi
    The construction of a new building involves a coordinated effort among many people and all must pull their weight in the right direction. Without teamwork and precise harmonization, things start to fall apart. And the buck stops with ME. No one else will share the blame when things go wrong. It’s a lot like running your business; every day you make tough decision that may not be favorable to everyone.
     
    This process of expanding the business has taught me to make those tough decisions based upon what is best for the company. You need to analyze what is best for the project to insure its success. It’s not important that a friend who happens to be an electrician did not get the contract. If you decide that another electrician is a better choice then make the right decision. Your friend will have to understand. And, besides, he doesn’t help you write the mortgage check…does he?
     
    Remember, in the end the entire success of the project rests on your shoulders. It’s not a popularity contest. When my kids were young I would tell them: “I am not your friend, I am your father. I make decisions based on what is best for you. I don’t worry about whether you approve of my decision”.
     
    There is a lot at stake with a project of this size. Educate yourself, do your homework, ask many questions and make those tough decisions. Think it’s easy? No. Does it get easier? No. Will you make mistakes? Yes. But you will never hit a home run unless you swing the bat. And sometimes you strike out too.
     
    Stay tuned!
  7. Joe Marconi
    Our building was approved by the Architectural Review Board last week, August 5, 2008. This is the final step in obtaining the actual building permit. We actually started in June demolishing the old building which will be replaced by the new 4 bay facility. As stated in earlier entries, this building will add 4 bays to our existing 6. The new 4-bay building will be a separate structure where all our quick, while-you-service will be performed. Our existing 6 bay facility will be our actual repair shop where larger and long term jobs will be performed.
     
    Once we have the actual building permit (which we should receive this week), the construction process will progress at a steadier pace. Our plan at this point is to get the building up and closed in by the winter. The interior will be finished during the winter months with a projected opening date of March 31, 2009.
     
    Stayed tuned!
  8. Joe Marconi
    Focus on People; and the rest will take care of itself
     
    Legendary UCLA Basket Coach, John Wooden, never focused on the score of a game. John Wooden believed that success is achieved by paying attention to the details of the game, not concentrating on the score. He also knew that well-trained players, executing a plan, encouraging personal performance and team work, will ultimately lead to success. Under his leadership, the UCLA Bruins holds the record with 11 Division 1 NCAA Championships, 10 national titles in 12 seasons, including 7 straight wins from 1967 to 1973. His strategy, a focus on people and team spirit, brings out the very best someone has to offer to the team. His record is a testament to his strategy.
     
    As business owners, we often get caught up in the numbers of the business. I am not suggesting the numbers are not important. Shop owners need to understand all the financial aspects of business. But a business, just like any team, will reach high levels of success if the organization has the right people in place, pays attention to all the details, and are in an environment where the focus is on team spirit and achieving the personal best of each individual.
     
    With this strategy, the numbers, the score, will take care of itself.
     
     
  9. Joe Marconi
    Have I got your attention? Great.
    Let me start by saying that I believe in giving praise when deserved and letting employees know when they dropped the ball. However, the truth is that no one enjoys being reprimanded or told they messed up.  
    The question is, what is the appropriate balance between the right amount of praise and the right amount of critical feedback? According to studies done by Harvard Business School, the ratio of praise to critical feedback should be about 6:1 – Six praises for every critical feedback. I am not sure if I agree with that.
    From personal experience, I would recommend a lot more praise. The exact ratio doesn’t matter. What’s important is that before you consider giving critical feedback, ensure you have given that employee a lot of recent praise. If not, whatever you are trying to get through to an employee, will fall on deaf ears.
    When you do have to give critical feedback, remember a few things:
    Focus on the issue or behavior; never attack the person, and remain calm in your actions and words Ask the employee for feedback, their side of the story Speak to the employee in private Address the issue soon after it happens; never wait Don’t rely on second-hand information; it’s always better if you have experienced the situation yourself that you want to correct Have an open discussion and find things that both of you can agree upon Have an action plan moving forward that the employee can take ownership of Use the experience as a learning tool Make sure you bring up positive attributes about them Remember, you don’t want the employee to be angry or upset with you; you want them to reflect on the situation and what can be improved. One last thing. Everyone makes mistakes. We need to be mindful of this.
  18. Joe Marconi
    Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
    At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
    I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
    Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
    With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
    Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
  19. Joe Marconi

    Hey Boss, Are You Approachable?

    By Joe Marconi,


    Management
    My son is not in the automotive industry. He is in the commercial real estate business. However, the workplace problems are the same. Recently, his frustration with the heads of the company reached an all-time high. When I asked him why he doesn’t speak up and let the leadership know how he is feeling, he responded, “Anyone who has voiced concerns or issues has been viewed as weak and incapable of doing their job. I don’t want to be viewed like that.” This is an example of a toxic work environment.
    If you are a shop owner, you are a leader. And leaders must be approachable. That means that you are willing to hear the concerns of others and have them express themselves. It also means that while you may not agree with someone’s perspective on an issue, it is their perspective, and that viewpoint needs to be recognized and respected.
    Make it known that you want to hear the opinions of others. Literally, ask for input from others. And thank those that speak up. Now, I am not saying that you need to act on every concern or opinion. That would not be realistic. But just listening may be enough. And you never know, someone in your company may have an idea that you never thought about and even improve your business.
  21. Joe Marconi
    We all know there are times of the year that are better than others and times when business is slower than what you would like it to be. While every company goes through highs and lows, there are things you can do to help keep your bays full all year long.
    One of the best ways to achieve a more consistent car count is to make sure that every customer that leaves your shop today has their next future oil change or factory maintenance appointment booked. Please don’t tell me you have tried this process and it doesn’t work for you; it does work. You can’t get out of your dentist’s chair before booking your next teeth cleaning!
    Let’s face it, the days of the 3,000-mile oil changes are long gone, so if you are waiting for the customer to book their own appointment, good luck with that strategy. You need to be proactive and book the customer’s next service appointment. I would also recommend booking your customer’s next tire rotation, which will be approximately every six months for most customers.
    Here’s the essential component of this strategy:  Make sure all customers you have booked for a future appointment are logged in your calendar. And make sure that each customer receives a phone call or text a week or so before the appointment date; if the customer can’t keep that date, no problem! Simply book another day!
    This isn’t rocket science, but it does take a proactive approach on your part. Start today, and you will reap the benefits of this strategy in no time at all.
    What about electric cars? Well, they need services and repairs too. I will address that in a future blog, so stay tuned!
  24. Joe Marconi
    This past April 25th, 2010 marks the first full year since opening our new facility. As many of you may know, we built an additional 4-bay shop which offers while you wait service and welcome walk-ins. This new shop features basic services, maintenance work, tires, brakes, accessories, oil changes, state inspections and other minor services and repairs. It also serves as a feeder for more complicated work and diagnostic work, which is sent to our existing 6–bay repair facility. This business model, for those shops large enough to accommodate it, is the future.
     
    The lessons learned this past year have been both positive and negative. With all the planning we did for the years and months leading up to the opening of our new facility, nothing is like real-life. Our projections and prayers came to be, adding some 60 to 80 more per week to our workload. I still say that a healthy car count equates to opportunity, however control is crucial in effectively managing the increase.
     
    First, the successes: The image and look of the brand new facility increased our visibility in the market and made us shine in our community, creating a draw for many first-time customers. Consumers and businesses in the area took notice of our growth; many questioned how we grew in a time when most businesses were feeling the effects of the recession. Our marketing and advertising programs worked and added a steady stream of new customers on a daily basis. Sales increased, car counts went up and the rate of new customers also grew. The new shop was featured in many local publications, which help to brand our new business model. The increase in sales and income is paying the expenses and we are running in the black. A lot of our one-time expenses incurred are being paid down on time and as these expenses get paid in full, will add to our bottom line as profit.
     
    Now, some of the failures: The sudden increase in car counts caused workflow issues at times, which resulted in mistakes and comebacks. Our quality control system was not being followed consistently, which added to our problems. Mistakes that should have been noticed slipped past and customer satisfaction slipped also. Our process was and always has been to review all work order before the job is started, maintain communication with the tech during the job and review the work and any up sells with the tech after completion. Also, all vehicles go through a quality control check list before the car is delivered back to the customer. In our effort to maintain the increased workflow, short cuts were taken and quality suffered. Shop morale began to fade and stress among staff members grew more and more apparent. The work conditions in the shop and the demands we were making on everyone were taking their toll which on added to the ever-growing series of problems. Something needed to be done…and fast!
     
    Last October I held two strategic meetings, one with the technicians and the other with my service advisors and office personnel. I simply told them not to hold back and tell me was not working, tell me what they don’t like and tell me what we need to change and how. This proved to be a valuable and eye-awaking experience. Out of these meeting came solutions and ideas that allowed us to tweak our processes and get control over the workflow issues. Our main goal: Creating solutions to solve workflow issues, reduce comebacks, improve morale and customer service.
     
    So, based on the suggestions and ideas from all staff members, I created a revised work flow process with new scheduling requirements and quality control systems. I held a general meeting with the entire staff and unveiled the new plan.
     
    The new plan outlined a more balanced schedule which limited the amount of diagnostic work and big repair jobs for our 6-bay repair shop. This will leave room for up sells and additional work sold from our new facility. We limited the amount of scheduled while-you-wait customers and spread out the work more evenly throughout the week. We gave customers options which were more in line with our schedule. The plan also included the addition of another service advisor, another technician and one more lube/tire tech. The added support staff was the number one concern from both the technicians and service personnel. We rewrote our workflow process to include more safety and quality control checks which made it easier to process the cars and paper work.
     
    It took us a full six months to implement the new plan and we stumbled a few times and fully expect to stumble again, but things are definitely better and shop moral is back to where it was.
     
    No company can grow and expect to be problem free. You learn more from failure sometimes than from you accomplishments. We pushed the envelope last year and luckily we were able to see the negative effects in time. Growth is a good thing, businesses need to grow. But growth needs to be managed properly and the lessons we have learned will help us to continue to grow.
     
    Growth and change are two of the same, and the pain and uncertainty associated with it is what people fear the most. No gain can be accomplished without change and growth, and if we fail at times…. well, that’s ok too.
  25. Joe Marconi
    Losing My Patience, Never My Passion
     
    As a shop owner, that began his career as a mechanic 36 years ago, the effort of building a business has taken its toll in many ways. While I have not lost my passion for what I do, I have lost my patience with many of the things I see around me. I have built a business from a small 2-man operation to a 2-facility company with close to 20 employees. It’s often said that you need great people around you in order to achieve success. But the truth is without leadership, vision, passion and a whole lot of determination, nothing will ever get accomplished. It also takes risk, with countless sleepless nights. All of which must come from the founder or owner of the business.
     
    Here’s my frustration. I hold myself accountable each and every day. If I screw up, I admit it and work twice as hard to rectify the issue. Why don’t others in the company hold themselves accountable? Not for me, for themselves. Take for example, a technician misdiagnoses a problem and costs the company money in lost time, wrong parts installed and an upset customer. Now, mistake happen, we are all human. That’s not my issue. My issue is the lack of remorse, the lack of concern, the lack of sense of urgency to make things right.
     
    I see too many times after a mistake has happen, that nothing changes in the attitude from the tech that made the error. He does not work any extra to make up for the loss. He does not come in early to try to make amends. And when I try to bring it up, I’m the bad guy and the tech gets upset at me! Upset at me? I have to suck it up and keep it inside me? And, Heaven forbid if I even suggest that the tech come back from lunch a few minutes early or maybe forgo his “natural birth right” of spending time on the tool truck.
     
    In their defense, my techs work very hard. They endure the cold, the rain, the sweltering heat of the summer and the daily bodily punishment of being a mechanic. I guess, what I want is just a little of the passion I have. That show of concern and the paying attention to all the details of the business. Also, I would love to see people have the same energy level as I have. I have more than 20 years on some of my employees and there are days that they can’t keep up with me!
     
    I guess, maybe it’s a lot to ask. My techs are great people. The morale is great and we are profitable. Some people tell me that it’s impossible for an employee to care like the owner cares. I don’t agree. Before I went into business, I took my work personal. When I worked for someone, I worked like it was my own business. But, that was me and to be honest I didn’t stay in the workforce long, starting my own business at the age of twenty five.
     
    Maybe I have been doing this too long, maybe I need to ignore some things. Maybe I just need a break. But, I am who I am and I can’t see myself changing. My passion will continue to be the force that drives me into the future. I will continue to work hard to bring out the best in me and in my employees. I am dedicated to my family, my business and to my employees. I will not push my ways on anyone. People need to show respect for themselves first. Only then can they truly grow with others.

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