Saturday, March 27, 2010

Want Better Shop Management Skills - Learn to Play Golf

Only the golfers who own/manage an automotive business will really appreciate this particular BLOG and the message it truly sends.

I just came back from my annual 10 day golf outing at Pinehurst/Southern Pines North Carolina. I love that region and the overall State itself but most of all I love their golf courses. The people throughout the region are warm and beautiful and the golf courses are challenging and visually spectacular. As for my personal golf rounds this year?...let's just say my friends, once again, had an incredible amount of patience with me and my attitude towards my own golf play ..........but....the weather was great!!

Playing a round Golf is so very similar to running an automotive shop business today.

Golf is an interesting and very disciplined sport as is owning and managing an Independent automotive maintenance and repair business. You truly have to learn the right self-disciplines that must become habits in order to succeed.

Consider the similarities:

Golf tells it like it is no matter how good you may look in appearance. Many golfers look like pros in appearance with the bag, the clubs, the clothing and the shoes, but read the score card to tell you the truth. Similarly many shops may appear to look good on the outside but take a look at their true net-income after tax and ensure a professional management wage and market place rent have been factored in.

Golf is very humbling. The true golf score measurement brings you back down to earth. When you are given strokes through the handicap system it only covers up your real score. Your handicap is the smoke and mirrors show of the sport. Similarly, it is irrelevant how much your ego is telling you how great you think you are with your shop business, if you are not achieving a 35% ROI over all in the business, you are "shot down" by the real world who really know your "handicap(s)". When shop management only measures its business in total sales and sales per invoice and does not include average billed hours per invoice coupled with total shop site efficiency, their lack of net income is like having a handicap. It is not telling you the truth....you think you are running a great business....BUT...you really are not the top player you may perceive.............yet!!!!

You need to get a new skill-set together and practice them if you have the discipline to do so.

Golf has no sympathy for lack of mental discipline and physical sloppiness. You end up with a boogie,double boogie or worse on more holes than desired. Excuses are always so plentiful in golf but also very cheap. When running a shop, average billed hours per invoice starts to tell the truth about what processes and methods you really adhere to. Does your shop achieve an average 2.5 billed hours per invoice for basic consumer vehicle maintenance? If not what is wrong with your business "processes"? In golf, a consistent correct swing and "format" is critical to a great shot and your overall score. In business the right and consistent internal processes (format) to achieve the desired and sustained results takes discipline and practice.

There is no doubt about it.......Golf separates the men from the boys. In business key measurements separates the true entrepreneurs from the "wannabees"

A great golf score is so very much like running a highly profitable shop business today because the self disciplines to achieve the desired results are very identical. Without a lot of self discipline backed up with on-going practice and an attitude to continuously learn in order to improve, one finds it extremely difficult to achieve the ultimate desired results.

Hey if it was easy, everyone would have a great golf score..........hey if it was easy every shop owner today would run a financially successful enterprise.........

Revisit your score card. Do the math. Are you measuring your business with a handicap system or are you a "scratch" entrepreneur?

Saturday, March 13, 2010

OE Website Access Must Be Planned

On May 1st 2010 all Independent shops in Canada are suppose to have open access to the OEM websites which was agreed to through a voluntary agreement.

This simply means that information such as vehicle calibration codes and the ability to re-flash and reset the vehicle computers coupled with diagnostic information is suppose to be available to the Aftermarket for a reasonable fee.

Some words of caution on this key leap forward for the Independent sector that I received from respected competent technicians:

1. Ensure you have hard wire to the various laptop computers available throughout the bays and preferably located at the technicians tool box. Wireless is not recommended when it comes to downloading a re-flash issue. Hard wire & high speed is important as certain downloads, such as a BMW re-flash which could take up to 8 hours to complete, and the last thing one needs is an interruption due to a poor connection. A hick-up with a download could destroy a vehicle computer.........if you are not familiar with the variables in downloading information, get ready to write the cheque!!

2. Invest in high end laptops. Bargain priced low-end laptops are not the way to go for this job. Make sure they are stripped of all the software "stuff" that comes with them. You don't need interference with items to slow the process down when downloading information from an OEM website for a specific vehicle!!!! Forget the Excel, PowerPoint and all the other "software verbiage" that accompanies a laptop. Keep it simple with Windows 7 as the one feature to allow access to the internet.

3. Communicate, communicate, communicate!!! When one technician has an experience with an OEM website issue, it is imperative to stop the bay activity and take the time to call everyone over to witness and explain the experience. Everyone must see the issue live in order to learn/familiarize themselves with the various website set-ups and diagnostic issues. The old concept of "I am the only one who knows this site or issue" is wrong and will be detrimental to the shop in the long run. It must be a "team" effort and experience. Management and staff must understand the importance of this issue.

4. Be prepared for a new learning curve. Re-flashing is an important issue BUT it is not the only thing. Website information and where it is located must be learned throughout the shop and this will take a lot of time as every OEM website is different. The culture of the shop must be "exchange information when discovered, no exceptions". The internal shop strategy of everyone is an island does not hold water any more. Internal communication and everyone acting in a team format is the ONLY way that this will work internally.

5. If you are thinking you are going to get rich quick through this new information access with the ability to re-flash and calibrate vehicle computers.........you may be disappointed. Do the math. The investment will be incredible. There will be many stepping stones to be taken such as internal processes for capturing and documenting time will have to be thoroughly reviewed and mastered. This will require an investment of time and manpower to ensure we, as a sector, serve the end client/consumer competently and professionally.

The Independent Aftermarket sector is a unique division of the automotive industry. Take the time to do this right so your shop can serve the end client/consumer in the most professional manner. The shop culture must embrace the philosophy of "We will NOT let you down".