Service Managers: Get the Most Out of Your Fixed Ops Team

Larry Edwards

Excerpted from Larry's Ramblings by Larry Edwards

Don’t waste your time try­ing to help an employ­ee who doesn’t want to be helped.  Peo­ple who resist being helped with behav­ioral and skills devel­op­ment needs will drain the life out of you.  They’re adults; mak­ing their own deci­sions

As a man­ag­er you have one pri­ma­ry respon­si­bil­i­ty “pro­vide the busi­ness owner(s) with a return on the assets they have assigned to you”.  These assets can be bro­ken down into three dis­tinct cat­e­gories:

  1. Human assets: the employ­ees in your depart­ment
  2. Phys­i­cal assets: build­ing, tools, equip­ment, soft­ware, etc.
  3. Cus­tomers assets: your deal­er, over time, has devel­oped a dis­tinct “BRAND” for their deal­er­ship.  This brand deliv­ers buy­ing cus­tomers and cus­tomers who are here because of the dealership’s brand but have not yet made a deci­sion to pur­chase

Man­agers have a respon­si­bil­i­ty to man­age each and every asset assigned to them.  They must ensure that each asset under their con­trol is pro­vid­ing a decent return on the invest­ment the deal­er has made to acquire these assets.  Man­agers fail (get fired) when they place a greater val­ue on one asset assigned to them than they place on the oth­er assets assigned to them. [Let’s take a look at some sam­ples]

Ser­vice

We imple­ment our Ser­vice Sales Process that requires the advi­sor to do a walk-around with every cus­tomer.  The man­ag­er approved imple­ment­ing this process; we assist­ed the man­ag­er with train­ing and imple­men­ta­tion.  Thir­ty days lat­er, we do a fol­low-up vis­it and observe that the advi­sors are not doing the walk around.  When we ask the man­ag­er why the advi­sors are not doing the walk around, the answer is “I just can­not get them to do it!”  Well, if the man­ag­er can­not get his/her assets to “work prop­er­ly” then they have a respon­si­bil­i­ty to replace the asset.

Parts

The num­ber one prob­lem we encounter when con­sult­ing with parts depart­ments is not post­ing lost sales.  Deal­er­ship Parts Inven­to­ry Soft­ware is devel­oped uti­liz­ing the demand based prin­ci­pal of deter­min­ing parts inven­to­ry.  In order for the soft­ware to work, it must be told the “actu­al” demand (request) for parts.  The soft­ware takes demand for an indi­vid­ual part and applies a math­e­mat­i­cal for­mu­la that cal­cu­lates the num­ber of demands that must be received for an indi­vid­ual part, over a peri­od of time, spec­i­fied by the Parts Man­ag­er.

Col­li­sion

The sin­gle largest prob­lem we encounter when con­sult­ing with col­li­sion is Deal­ers, Gen­er­al Man­agers, and/or Fixed Oper­a­tions Man­agers who do not know how to man­age this depart­ment.  When these indi­vid­u­als encounter a sit­u­a­tion they do not know much about, they usu­al­ly fall back on some­thing they know a lot about: Con­trol­ling Expens­es!  They do not know how many and what type of staffing they need; they aren’t sure how much a met­al tech­ni­cian or a painter should be earn­ing; and most of their expe­ri­ence with paint and mate­ri­als was obtained when they nego­ti­at­ed that $100,000.00 up-front fee from their paint sup­pli­er.  Oh and by the way, they failed to give the col­li­sion depart­ment cred­it for the $100,000.00 paint pre-bate.

Lar­ry Edwards, pres­i­dent of Edwards & Asso­ciates Con­sult­ing, can be reached at larry@edwardsconsult.com. Read the full arti­cle here.

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