A bad apple, or a rotten barrel?

We have heard the saying many times “A bad apple spoils the barrel.”

That is very true in so many cases and in business that is why management must focus on building the right culture with the right team and partners in place. That is not an easy task to do today, but it must be an on-going process as the shop adapts to the changing realities within the industry.

There is also another aspect to consider that is not talked about in our industry at all. Consider this statement: “Sometimes at some point you have to acknowledge the barrel is spoiling the apple.” 

What this statement refers to is that the entire process of how business is being conducted within the shop is completely broken, and no matter how talented the staff they hire are, the culture that the shop runs under is not going to work. Consider these points as part of the checklist that the culture is an issue:

• Finding the right people is a constant effort and nearly a full time job.
• People that are hired do not stay with the company very long.
• Attitudes throughout the shop are negative.
• A team atmosphere of each staff and management member having each other’s back does not exist.
• Less than 2.5 billed hours per R/O is the average in the automotive service shop.
• The shop pays more attention to measuring sales each day/week/month instead of productivity.
• The total shop site efficiency measurement is in the 50 - 59 percent range instead of the minimum of 75 percent that is required today.
• The shop labor rates are set at a marketplace competitive range instead of a staff competency range.
• The shop is still a breakdown and repair shop instead of embracing the required client focused service on need business model.
• Management does not engage the staff in full business discussions and asking their input for solutions.
• New business from referrals does not happen on a regular basis.
• The majority of the shop’s customer base is price-focussed.
• The shop does not pay the top marketplace wages in all positions within the shop.
• Management wages are below the top technicians’ wages.

Those are just some basic examples that prove it is the barrel that needs to be changed, not just the apple.

Many times we have a tendency to just look at one or two problems thinking we are improving things instead of stepping back and looking at the business from a 10,000-foot level concept. This is a very complex business today, and management/ownership must realize and acknowledge that their responsibilities today are totally different than they were 10 to 20 years ago.

The following steps should be considered as a starting point:

• Review where shop specific business management classes are being held. Review the agenda to make sure the topics you need to learn are being fully discussed. Ask to speak to the instructor to ensure the problems you are seeking to resolve will have solutions by the end of the class. Ask for a money back guarantee on the tuition that you will have the solutions by the end of the class.
• Enroll NOW. Be prepared to travel to get the required education. Stop clinging to the same old past excuses: “I will consider it when it comes to my area.” That type of thinking holds no water today.
• Develop a “right hand person” within your business and make sure that person also attends the right courses with you so both of you can discuss the solutions and how they should be implemented into the shop. You can’t do it all by yourself anymore. Those days are long over.
• Revamp your business measuring to insure you are measuring the right results and trend lines that build NET income.

The entire business must be revamped, and if management does not take solid action to revamp the business properly, the odds of survival will not be in that business’s favor.

Take a good hard and honest look at your personal situation and ask yourself, is it the apple or the barrel?