Communication is the single most difficult task people perform on a daily basis. Whether giving directives to employees, expressing emotions to family and friends or working to gain mutual consensus on a topic, effective communication is key to success. The level of success achieved is dictated by the skill level of the communication administered. In collision repair, negotiations are commonplace. The success of the negotiation is dependent on the level of communication used during the negotiation. Listening to employees communicate and negotiate claims can shed valuable light on their communication skills and provide insight on where to provide training next to encourage continued growth and success within the company. Skill levels in negotiation can be separated into three basic levels: emotional, estimating system and OEM procedure based.
The first and most basic skill set used in negotiations is emotion. Negotiations executed with feelings, presented as facts, rarely go well. This is because the communication is rooted in emotion and this can leave one or both of the parties involved reacting to the presented facts in an emotional manner. Each person has a built-in belief system. When opinions are presented as fact in the form of “I feel” or “I think” or “industry standard” statements, emotions flare and conflicts arise due to the application of two completely different belief systems applied by the negotiating parties. The result of emotional statements, presented as facts, during a negotiation is generally a true/false response between opposing parties. Both parties believe they are right, and the other party is wrong. When arguments are presented in this manner, it is difficult for a negotiation to move forward. This cycle of presenting emotional beliefs and responding with increasingly emotionally charged responses leads to conflict, slows resolution and decreases the likelihood of achieving the outcome desired in the negotiation. Actively listening for the use of emotional beliefs being presented as facts during negotiations can provide key insight into when estimator database training is necessary.
The second level of negotiation is based on estimating system guide pages. This medium-level skill used in negotiating repairs is more effective than the first. The primary foundation of arguments presented during negotiation are rooted in the p-pages of the estimating databases. Premises and arguments are presented based upon what is included and not included in the database guide pages. This level of negotiation can be more effective as it relies on printed facts from the database. However, this approach is generally supported by lower-level skills based in emotion. At this skill level, estimators can identify and communicate what isn’t included in the database times and physically show on the vehicle what is needed for the repair. However, this approach often leaves room for emotional objections to be inserted into the conversation and derail effective communication. A good example of databased referenced negotiation skills would be denib and polish. The estimator can show in the guide pages where it is not included in any labor times and can show an appraiser on the vehicle what panels need to be denibbed and polished. The appraiser can counter with “we don’t pay for that” or “we don’t see that in the market.” These are level one beliefs, not facts, and will differ greatly between parties encouraging conflict and slowing progress toward achieving mutual consensus. Training an estimator to progress to the second level of negotiation skills inherently makes them a better estimator, due to a thorough understanding and application of p-page logic, but it still leaves room for improvement.
The third, and highest, level of negotiation is based on OEM procedures. At this level, all negotiations are rooted in the procedure required for a specific part on the estimate and the related systems of the vehicle that are affected by the operation being performed, encompassing all initializations, calibrations and non-reusable parts required. The information presented during negotiations is rooted in both what the manufacturer states is necessary to repair the vehicle and what the database says is not included in the labor times. This level uses the highest level of logical thinking and eliminates room for emotion, as it is rooted in facts and supported by written documentation. Executing negotiations at this high level requires great discipline by the estimator. The estimator must first complete thorough OEM research for each estimate line item. Then the estimator must document the estimate using line remarks referencing both OEM information and estimating guide pages to build the case for why it is required. And finally, when presenting the argument, the estimator must remain committed to negotiating at the highest skill level, focused solely on what the OEM procedure states, even when countered with low-level emotional objections. When an objection is raised using an emotional response, the estimator must analyze the objection and realize that it is not actually a fact, it is an opinion, and take action to redirect the negotiation back to the third level again. Even the simple acknowledgement of a lower skill level comment can derail a negotiation. It is the estimator’s responsibility to maintain the negotiation at the highest skill level to ensure success. Training estimators to execute at this level requires extensive training in estimating, OEM research methods, critical thinking, logic and the ability to control emotional responses during negotiations. The journey to train an employee to operate at this high level can take time, but the investment is worth the climb.
Communication is one of the most difficult things people do. Taking time to listen to the words used during negotiations can provide valuable insight into the skill level administered during negotiations. Understanding where people are is an important piece in providing proper training to grow them to where you want them to be. Listen closely, what you hear will be priceless.
