Business Calculations and Shop Process Always Go Together

Automotive & HD Business Management Articles.
Bob Greenwood. July 22, 2015. ( over 3 years ago ) 712 views

A shop owner/manager who has been through the courses that prove a great deal of net income is available in each business, from their current business, has then seen the processes as to how to achieve the desired results to capture that untapped income.

My concern is simple; are we prepared each day to address things when they fall short? This is a Management responsibility and the self-discipline required to keep driving things forward is a necessity in order to keep the shop on track to achieve the budgeted objectives and guidelines.

These five questions should be verified and acted upon each day at the shop.

  • Are the KPI’s (Key Performance Indicator’s) being recorded DAILY?
  • Are you discussing the KPI’s DAILY with the team?
  • Does the team clearly understand what the DAILY KPI’s objectives are in terms of what they really mean and how they are to be achieved?
  • What are you doing DAILY when your flat-line number of vehicles is not reached?
  • What are you doing DAILY when the hours billed per invoice falls below the shop objective?

It’s important to have a DAILY Management routine and by addressing the above questions EACH DAY, it keeps Management’s mind-set focused in the right direction. It is Management’s responsibility to ensure the team understands clearly the accountability that’s required from them by ensuring they understand the math and the processes to achieve the goals which in turn keeps the team heading in the right direction.

When the objectives and guidelines that are set in the budget are achieved consistently, peaks and valleys disappear, the business will be financially successful and the team will achieve above average industry incomes.

Truly, we know that is the outcome EVERYONE wants from our DAILY time spent working on our career.

Bob Greenwood

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