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Trend Analysis
Many managers get bogged down in day to day
operational issues and don't take the time to review
their trends. If Technician hours sold is below last
year's performance would you know what labor
category was lower? Trends should be tracked for a
minimum of 12 months of historical data on all key
performance indicators. Repair order count,
Technician hours sold, gross profit, effective labor
rate, and average hours per repair order should all be
tracked for team results. When the team performance
is trending down in an area management should go
into detail of the indicator in question. An example
would be if the effective labor rate is down
management should review repair order detail to
identify poor performing labor operations. Is the
dealership paying to much time to Technicians?
Maybe the customer pricing is below standards.
Discounting by advisors is another way dealerships
lose effective labor rate. Management must identify all
issues that are affecting the trend before taking any
action towards correcting it.
Find out more......
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Greetings!
This month we will take a look at understanding your
fixed operations performance by getting into the
details of the key performance indicators.
Dealerships continue to rely more on fixed operations
as a source of increasing revenues and we must all
work harder and smarter to increase gross profits.
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| Develop Your Action Plan |
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After identifying and researching in detail in the area of
concern it is time to develop your action plan that will
correct it. Many people fail to initiate an action plan
because they fear change. The only thing in business
that is for sure is that change will always occur
whether it is desired or not. Effective management
understands this truth and desires to master it. Never
allow yourself to say that's the way we've always done
it so we can't change it. Instead challenge yourself
with the question what process or procedure can be
developed it would eliminate the issue? As you
develop a process to correct your concern include
several key employees and discuss with them
openly. You will find many refinements to the new
process before it is implemented in these open
discussions. Be determined never to allow
employees not to embrace change and talk you out of
your action plan. Any process that is new must be
open to adjustments after it is implemented.
Management must enforce that the team will comply
with the new process and not resort back to the old
way. Good management always makes the path of
least resistance compliance.
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More Information.... |
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| Past Newsletters Available on Our Web Site! |
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Soon our past newsletters will be available for viewing
on our web site at www.fixedperformance.com! Be
sure to check them out.
Ask about our great multi-store discounts for
dealership groups! Call Jeff Katz at 601-942-2342 or
Rob Gehring at 419-282-1351 for more information.
Toll Free 888-205-8718
Learn More
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