Behind CARSTAR’s New Zoned Structure
May 15, 2018—CARSTAR has made a strategic switch to a zone structure for its operations and sales throughout the U.S. and Canada. The change stemmed from a need to streamline processes and keep up with a increased onboarding of stores.
The zone structure splits the U.S. into three zones including west, central and eastern zones, said Dean Fisher, COO of CARSTAR North America. The previous structure included multiple area directors across the country.
In 2016, CARSTAR operated in 30 states. Now, CARSTAR has expanded to 34 states, soon to be 38, Fisher says.
In a 2016 interview from the CARSTAR Conference, Michael Macaluso, president of CARSTAR North America, said CARSTAR had already begun thinking about switching to a zone structure in order to better understand individual markets.
“In each area there's a team,” he said at the time. “So our franchisees have an area director of operations, but then there's a support team that's solely focused on that zone, understanding the nuances in that marketplace, providing effective support and helping us grow faster and better.”
“And part of that is about the ownership mentality,” added Arlo Johnson, vice president of insurance for CARSTAR. “Now you have a group of folks that are responsible for the gross growth and operational capacity of a region. So everybody is pitching in, the team works together to move that region in the same direction.”
The most recent states into which CARSTAR has expanded includes Idaho and South Dakota.
One director will oversee the zones and three zone managers in the U.S. will oversee their regions.
The sales team, aka the insurance team, will also be using this new structure, Fisher said.
“The idea is for the insurance group not to stay siloed and to create a unified division,” he said. “There will now be three insurance zone leaders.”
The new structure eliminates the need for shops and area directors to go to the corporate level for changes in processes.
“This will allow the shop to manage more efficiently and effectively,” Fisher said. “It will provide shops to manage themselves in a lean environment and maintain a level of profitability.”