Automotive Management Institute Alumni Blog

MISSION POSSIBLE: How to Write a Mission Statement

2008-04-04T08:39:00.001-05:00

The importance of a company's mission statement is not to be underestimated.

In the course of running a business, there are highs and lows, periods of great growth and periods so slow that you park your own car and your employees' cars on the lifts so you feel busy!

In those slow times you might ask yourself, "Why does this shop exist?" or "What can I add to my business to make things different?" In productive, profitable times, it is good to ask yourself if you are staying focused and on track. A good mission statement can guide you in both situations. A mission statement can be a helpful tool in your management toolbox.

Steps to writing a mission statement

What is a mission statement? It is a statement created by you (or by you and your staff) that covers three aspects of how you think about your business. There are many resources to help you write a mission statement if you don't have one. They are listed at the end of this article. Several different formulas exist to help you get your most important objectives into your mission statement. The three-step plan presented here is just one model, and an easy one to use.

Step 1: Brainstorm. Brainstorming or "mind mapping" are required as the first step. Think about why you created your business. What about it did you think was most important? What difference are you trying to make?

Step 2: Who do you want to serve? Specifically defining "who" will help you in being clear about how to promote yourself and your company.

Step 3: How do you want to define the relationship between your shop and your customers? How do you want your company to feel? The relationship is about your business. The relationship can be about a team, a group of qualified auto professionals, a committed staff of techs and managers or a staff of connected, committed individuals. The relationship part should include the staff because the staff will be carrying out the mission statement.

After you spend some time with these three questions, you can begin to formulate a precise statement. Its preciseness is what will guide your actions. It will guide your business plan. It will guide who you hire and who you serve. Business plans can change, the culture can change, your ads will change and so will your staff. But if you do the work to create a solid, truthful mission statement, it will never change. Beckley Alley, a business development specialist and colleague of mine, adds: "If you find yourself avoiding the work necessary to create this tool, think of it as an organizing project. You are creating a platform that will serve as the foundation to build your marketing and advertising. You are organizing for your future."

Sandy Buerk, co-owner of St. Marys Auto Body, an ASA member shop in St. Marys, Pa., echoed these same sentiments. Buerk said, "Every time you have a business decision to make, you have to have a touchstone, a guide to help you. I believe everyone needs to sit down and figure out exactly why you did this. Write down how you felt when you decided to start your business. It is so tempting to become a chameleon and try to be everything to everyone. If you do that, you end up somewhere else, being something else ... not what you wanted to be. The time, effort and work you put into creating your mission statement is one solid thing you can do for your business. Once you do it, everyone can see who you are."

I think the mission statement of St. Marys is a good example of what the work we are describing can produce. With its permission, here is its mission: To provide the residents of Elk and surrounding counties with superior auto body and collision repair by a staff of happy professionals who take pride in not only the job they do but in the company that they work for. We will settle for no less than 100 percent customer satisfaction and we will realize our vision as a team."

This statement covers all three steps and is specific in stating who they are, who they will serve and the relationship. Buerk was clear that they stand behind this statement, and it is proudly displayed so everyone can see it. When interviewing a potential staff member, the mission statement is a key factor in hiring.

In running Van Batenburg's Garage, the mechanical shop that my husband, Craig, and I ran for more than 25 years, the mission statement was a guiding force when the market began to change and a related business presented itself to my husband and me. We were once offered a small franchise with the sales pitch that it "could easily run out of our existing shop using all of our current resources." From interviewing other shop owners for this management piece, I know this is not an uncommon situation. Adjunct product opportunities arise, and it is always a question of how an opportunity may complement your business or serve your customers in a new way. Changing or adding to a business is a hard decision.

For Van Batenburg's Garage, we used our mission statement as the guide to whether we should add something new. By using this valuable tool, we were able to see that adding a new aspect to the business had nothing to do with what we were about and who we wanted to serve; in fact, it would end up taking away from the purpose we had defined for ourselves.

Steve Johnson, owner of Number One Tire and Service in Warwick, R.I., said he went to a Parts Plus management seminar when he first decided to buy his current business. The seminar encouraged writing a mission statement. He knew at the end of the seminar that he would do the work to write one. Today he uses it as a guide to serving his customers, promoting his warranty and keeping his employees focused on respecting customers' cars. His company is all about fulfilling his customers' needs. Johnson also added a good point about how to always use your mission statement: "Bring your staff together and review the mission statement," Johnson said. "Reinforce why we are here and how we should be here everyday, by reading and discussing it."

Richard Gaudette of Double Eagle Communication, who has been an AMI instructor, said: "It doesn't matter if you are a one-person business or a large shop with multiple locations. It is still essential to know how you want your business to look, and where you want to focus your energy. He recently worked with a dealership representing several makes of cars. The key question he used in defining the business was, "Does every activity you are doing in the business serve what you started out to do?"

I think that is a practical way to get started on this process. There is no right or wrong way to begin. Just begin. Buy some pizza and sit down with your staff. If you can't imagine who to ask for help, bring it to your ASA chapter meeting. The benefit of other shop owners' insights will help you see your own priorities more clearly. Don't rush the process because it's not about the words, but about what you truly believe in and want everyone connected to your business to believe in.

Take advantage of the significant management training offered by your Automotive Service Association (ASA), management articles, Automotive Management Institute (AMI) classes, the variety of training opportunities offered by ASA at its mechanical and collision shows, and its new Keep Educating Yourself and Staff (KEYS) training program. They can help redefine or fine-tune your business.

All of these things can help formulate a mission statement. The results are worth the work: An improved business focus, a great guideline for teamwork and an enhanced image to your customers and your community.

Steps to Creating a Mission Statement

Brainstorm.

Why do you exist as a business and what do you want to achieve?
Identify who your customers are.

Who will you serve?
Define your business relationship.

Include your staff in defining that relationship because they are the ones who will help you carry out the mission statement.

Budgeting Your Benefits

2008-03-11T12:35:00.000-05:00

With the variety of retirement plans, insurance companies and compensation programs to choose from, the details of putting together a benefits package can be dizzying. It helps to start with a basic framework, an outline for formulating the best benefits package that will help attract the best employees to your shop, keep them motivated and save you money.

Bob Cooper, a longtime instructor with the Automotive Management Institute (AMI), spent many years running his own repair shop. His experience in his own shop and helping other shops over the years has helped him to develop such a framework. Every business is different, he said, but they can all benefit from a good benefits plan.

Six Elements of a Sound Benefits Plan

"Everybody in the employment world needs to have six elements in their compensation and benefits programs," Cooper said. "If you miss one, you're going to miss some business."

The first element is basic compensation.

"I call that oxygen," he said. "That means you work with me and I have to give you enough money to put a roof over your head and put food on your table. Not to get you ahead in your life, but to make sure you can live."

Basic compensation includes a pay scale that is competitive for that position, paid vacation, paid holidays, ongoing training, uniforms and what Cooper calls "well days."

"They're not sick days," he said. "You have to be sick to use sick days. If you're well, you get the money back at the end of the year for all the days you weren't sick. If you're well all of those days, I double that money at the end of the year."

How do you determine what a "competitive" wage is for a technician?

"What you need to ask yourself is how much does a technician have to earn to live a decent lifestyle where you live," said Cooper. "What is a service advisor going to have to earn? When you land on those numbers, you need to incorporate that into your business model and see how much the payroll needs to be, and work backward from there to see how much volume in sales you need to do to afford that. It doesn't work the other way around."

Cooper calls the second element opportunistic income.

"Opportunistic income is opportunity for the technician to earn more money working for you," he said. "Whatever you can measure in productive results is where he or she can earn more money."

In any area where you can measure productive results, reward your employees for an improvement in those results. More vehicles through the service bay should equal a bigger paycheck in the pocket.

"Now instead of just a roof over their head, they can afford the toys they want," said Cooper.

The third element is exemplary performance rewards.

"Anytime you come to me with an idea that is extraordinary that I can use in the business gets you a reward," explained Cooper. "The ideas come more often the more often you reward them."

And, he pointed out, even if the idea is not one you can use, you can still thank them.

"If it's an idea that brings in a few hundred dollars, certainly I can give a dinner certificate," said Cooper. "If it's an idea that brings in an extra $1,000, I can give something better."

The fourth element is security, and this is where the factors that one normally thinks of as benefits come into play.

"Security means that anybody who has been with the company beyond the probationary period needs to know they're valued," said Cooper. "You can do this through life insurance, health insurance, retirement programs, 401(k)s, IRAs and especially business cards. Everybody needs business cards because they're all part of the business, including the janitor and the driver."

Element No. 5 is rewards for loyalty. There are infinite ways to reward loyalty, but Cooper stresses that these rewards should not be monetary.

"Give them gift certificates, a discount club membership like Sam's or Costco, Disney Dollars if they have small children, certificates to stores the family frequents," he suggested. "All this requires that you know the family, which you should anyway. When you're in business, they're your surrogate family. You spend more time with them than you do your actual family."

Rewards should fit the occasion as well.

"Take them out to dinner on the anniversary of their hire date," he suggested. "After they've been with the company for five years, send them and their spouse on an expense-paid five-day vacation. Did you know it would cost me less as an employer to do that than to give the same person three weeks of paid vacation? You pay the travel and hotel and that's it. Most business owners use charge cards with air miles, so the flight won't cost you anything. It's amazing how powerful that is, and it's a great way to get loyalty."

The sixth element is leadership. How is this a benefit in the same way as a health plan, you may ask? The people operating the company have to have a clear vision so that employees can have hope of reaching their goals, said Cooper.

"When you're sitting down to hire someone," he said, "you tell them, 'In addition to all these other benefits I've told you about, we offer leadership. It's my job to help you earn the income to meet your goals. Sometimes you're going to be off-focus working on stuff, and you have my promise that I'm going to bring leadership to help this company grow and ensure your continued income.'"

How Will These Benefits Help My Business?

Many business owners at this point will wonder how they are going to afford such a generous plan. Cooper believes the problem to overcome is one of operation, not implementation.

"Most guys are afraid," he said. "They'll say, 'I can't afford to give a paid vacation! What if they don't produce?' Well, why are they going to be with you if they don't produce? YOU take the first risk as a business owner."

With those risks come great rewards, Cooper said.

"People never come to work for businesses, people come to work for people," he said. "When people recognize that you care about them and that you know their families, word gets around, and people want to come work for you. Stars gravitate toward you, productivity stays high, and people stay with you. It helps drive morale, which will help you drive the product you deliver, which will help drive sales."

None of this is new or complex, said Cooper. "The best laws of life are too good to be new. Guys are always trying to come up with some new chemistry to make life work, but all this is the sort of thing your mom would have told you."

And what would mom say employees value most? Cooper told his story this way:

"Back in the '70s, I had a tech who was a remarkable producer, and then he started to drop off. I called him in to my office and asked, 'What's bothering you?' 'Nothing,' he said. I told him, 'You're not going to leave until you tell me what's wrong.' He changed my life, and this is what he said:

"He said, 'You do all the things you say you're going to do, but you never say thank you to anyone.' I was wanting to tear his head off right then, because I bought this man his first set of tools and taught him everything he knows about fixing cars and HE never said thank you. But I went home that night and I realized he was right. Employees need to feel valued. Not 'Thanks' at the end of the day, but very serious, walk into the office and tell them how valued they are. Tell them concretely what they're doing that matters to you.

"People won't sell their lives for a million dollars, but they'll give it away for a Purple Heart. They need to feel valued and appreciated."

Pre-Repair Management Is Key to Reduced Cycle Time

2008-02-14T10:33:00.001-06:00

Make a list of everything that stops the repair process in your shop: parts problems, missed items or operations, employee issues, equipment shortages, scheduling issues and reinspection delays - to name a few. The items on your list can cause serious delays in your collision repair facility on a regular basis.

Your vehicles come in and the repair process starts, only to stop as a result of one of the issues on your list. Once your tech gets going, other problems may arise, and the vehicle repair process stops again. Starting and stopping work on a car slows down the process.

Studies have shown that the primary impediment to efficient production in any work process is stopping and starting. It really does not matter if we are repairing collision-damaged vehicles, building boats or repairing shoes. Each time we stop and start, we incur added cost, damaged cycle time and loss of profit. Stopping and starting creates waste in the production process. The elimination of this waste is the key to reduced cycle time.

Spend some time watching a technician in your shop. It won't take more than an hour or two to discover that the time actually spent repairing vehicles occupies only a fraction of the time the technician is on the shop floor. The rest of the time, that technician is walking around getting something, talking with someone, looking for someone or chasing down a parts problem. Some have estimated that technicians in collision repair shops spend 25 percent of their time walking around looking for someone or something.

The good thing is, we can repair vehicles more efficiently and profitably in our existing shops with our existing crew. We just have to quit stopping and starting the process. We need to create systems that enable technicians to spend more time working on vehicles and less time doing unproductive or wasteful tasks.

Imagine the ideal collision shop situation: The customer drops off the vehicle and signs a repair order. You have a skilled technician tear the vehicle down to the point that all damage is revealed and then your damage evaluator (estimator) and the technician work together to build a complete and accurate evaluation of all damages. All parts are ordered, including the clips, nuts and bolts needed to repair the vehicle. Next, all of the parts arrive correctly and on time. The technician repairs the vehicle. When it's done, you simply bill the insurance carrier (one time with no supplement) and deliver the vehicle to a happy customer in record time.

In this imaginary collision world, the vehicles would fly through the shop. But the problems on our list hold up production and extend our shop's cycle time. The timing of the problems that cause those expensive delays is a major factor in high shop cycle times.

Many shop owners and managers have instituted processes designed to uncover some of the problems that stop repairs early - before repair has begun. In our industry, the process goes by several names. It may be called triage, staging, pre-management or preproduction management. In DuPont's SMART Cycle Time Seminar, we call it "pre-repair management." By any name, shop owners and managers have found that aggressively searching out hidden problems, and making sure everything is ready before jobs are assigned to technicians for repair, is the key to greatly improved production efficiency and reduced cycle time.

There are two components to shop cycle time. The first is "pre-repair." That's the time from the close of the sale to the assignment of the repair to the technician. The second is the actual repair time. Shops with low cycle time are using the "pre-repair" component to aggressively search and resolve problems before the vehicle is assigned to the technician for repair, thereby eliminating many reasons for stopping and starting the repair. They "pre-manage" the repair.

These shops have standard operating procedures saying: "Any vehicle that has potential hidden damage must go through a pre-repair management function prior to being assigned to a technician for repair."

How do you do it? Each collision repair shop is unique so the answer is going to be different for every shop. However, the basic concept is consistent among those who have implemented aggressive pre-repair management processes. Be sure to set aside an area or workspace for teardown, diagnosis and evaluations. The workspace should have a lift and some method to make access pulls and perform structural diagnosis. Anything from a tape and tram with frame specs to a computerized measuring system may be used. Some call this area their preproduction stall.

The idea is to have a dedicated area to perform teardown and diagnosis instead of having dismantled vehicles all over the shop. Many shops have several vehicles stored in productive workspaces, torn down waiting for parts, insurance approvals and re-inspections. All of this is wasteful so eliminate it. Tear the vehicle down to the point that a qualified technician can see all damage and can diagnose all structural damage accurately.

Create a complete and accurate damage evaluation that includes all necessary operations and parts to restore the vehicle to pre-loss condition. Many today call this process "blueprinting," where everything is listed. Those items or operations that will not be paid for should still be listed; simply price them as "no charge."

A team should create the blueprint. The team consists of the service writer (estimator, repair consultant) and the technician who disassembled the vehicle for diagnosis. The parts manager and production manager may also have input.

Once the blueprint is created, insurance negotiations can be conducted and concluded. With insurance approvals in hand, the parts order can be made. Repairs are started when all parts are received, checked in and correct. The technician begins the repair, and the repairs do not stop until the repairs are completed.

Pre-repair management is a proven winner. Blueprinting the repair can increase a shop's sales by 6 percent with no increase in the number of vehicles repaired. It's simply about writing a better, more complete damage report. Pre-repair management has reduced cycle time by 30 percent in many cases. That translates into increased production efficiency, increased sales and increased profitability.

While pre-repair management can result in reduced cycle time and increased profitability, it does not solve the problems on the list you created at the beginning of this article. It simply manages the problems when they occur, placing them before the repair process rather than during.

Attracting Students to the Automotive Service Industry

2008-01-17T10:10:00.000-06:00

Listen ... hear that hissing sound? If you're in any of the numerous technical fields in the United States today, you should. It's the sound of the deflating supply of skilled workers in today's high-tech industries, and the leak, while it's finally been recognized, has yet to be repaired.

"The shortage of skilled employees is not a distant threat anymore," says Earnest Deavenport, chairman of the National Association of Manufacturers (NAM). "The skills gap is now catching up to us and could threaten the amazing growth and productivity gains of the past decade."

The Equipment Maintenance Council (EMC) has offered similar observations, claiming that "finding and keeping qualified operators and technicians" will be their top priority in the coming years.

The effects of this shortage are being especially felt in the automotive technology field, where members are scratching their collective gaskets as to how to stem the steady decline of new, qualified recruits. The number of students completing Auto Mechanics I, for example, has been in free-fall for 10 years, dropping from nearly 145,000 in 1987 to just over 110,000 in 1994, where it saw its sharpest decline ever (1994 statistics are the most current as of this article). What's keeping them away?

"I think it's the way technicians are perceived," says Bill Riley, team leader of a service facility in Leesburg, Va. "A lot of people still consider auto technicians to be high school dropouts, uneducated, always covered in grease," adds George Cotterman, technician for an independent repair shop in Frederick, Md. Tim Lowry, owner of a Chevrolet dealership in Paris, Texas, agrees. "Mommas and daddies don't want their kid to be that," he says, laughingly adding, "even though we have six-figure technicians now."

But it's not just the professionals; even automotive students and instructors are resentfully aware of the enduring stereotype. "[The public] doesn't understand what we have to go through to learn this field," says Jason Kmak, an automotive technology student in Leesburg, Va. "You have to understand how to operate a computer, make two computers interface with each other; it's a lot of electronic theory, and it's a real tough job." Everett Sutphin, Kmak's instructor, has seen numerous bright, skilled students come through his shop over the years, but still claims that "people think kids with academic problems go into automotive technology, and that image has to change. If the public knew what was involved in a technician's everyday life, if they had to go through the training, they would change their conception."

But how can the industry dismantle these long-held negative stereotypes? "Advertising is the main thing," says Gary Moore, an automotive instructor in American Fork, Utah. "Making parents aware that we're not going to turn their kid into a 'grease monkey'; marketing the job opportunities and how vast the industry is and what good jobs are available. Too much of the industry is being silent and isn't grouping together." Riley agrees that an ad campaign is a key factor in reaching younger students and their parents. "The automotive industry needs to get together as a group, without being manufacturer-specific, and go across the airwaves. If you get a little more respect out of the public, you won't have as many people afraid to go into these programs."

But getting students into the programs is only one battle in a larger war. Keeping them there, and training them to succeed in the industry when they leave, is an altogether different issue.

Bo Bolton, an automotive instructor in Paris, Texas, has been confronting that issue head-on for a long time now - and with a great deal of success. "Some kids are scared of the technology when they begin the program," Bolton says, "but the biggest thing I try to get across to them is to get them to believe in themselves - show them they can do it." Bolton is a member of the Vocational Industrial Clubs of America (VICA), and cites membership in the organization as a large factor in his program's success.

In particular, Bolton believes VICA's annual Skills USA Championships (where state champions from numerous fields compete in an Olympic-style atmosphere) to be a great incentive to students. Bolton's auto-tech team has been state champion for seven consecutive years, and has always performed well on the national level. However, the successes of his team members aren't measured in medals alone. "Most of them [past team members] are now making $50,000 or more a year," says Bolton. "We're extremely proud of what VICA has done for us. It amazes me what they ask out of these kids at the VICA contests. It just blows my mind to watch 'em work." The success of Bolton's automotive team has also had a tremendous effect on raising awareness of the automotive program at Bolton's school. His program actually has a waiting list!

According to Moore, however, not every instructor is equally motivated. "Sometimes you have automotive shops being instructed like a hobby shop. They need to bring in demo cars, and go down the list of skills they need students to walk out with." And where do the demo cars and other materials come from? Bolton, Moore and any other successful instructor knows that the value of their programs would undergo serious depreciation without the help of area dealerships and independent shop owners. "We cannot do without them," says Bolton. "They've given us the cars to work with, and that helps us unbelievably. We just couldn't survive without their help."

"We furnish him new vehicles to work on," says Lowry, whose dealership keeps in close contact with Bolton's program. "Whenever he's needed donations, we've come through. I've offered to pay for schooling for one of his kids. Us car dealers, we see the handwriting on the wall. If we can't fix the product we sell, we're not going to be selling it very long."

Cotterman would like to see more independent shops get involved, as well. "It really helps us out, in the short run and in the long run, to contribute to these programs, whether it's materials, money or whatever. It's an investment in our future, and in the future of the industry."

But providing materials and funding isn't the only way automotive technology professionals can help reach tomorrow's technicians. Personal visits are also encouraged, where technicians working in the field come to the classroom. "You have to go in there and show the young people some encouragement," says Riley. "They need to see people from the industry come in and tell them what it's like." These visits are beneficial from a recruitment perspective as well, as students can see the opportunities that exist in automotive technology personified in successful representatives from the field.

Many shops and dealerships continue their involvement by providing internship opportunities for students, for pay and/or course credit. Kmak claims to have substantially benefited from such programs. "It opens up my eyes a lot more than just what you see in the classroom. When you get out in the field, you see real life situations that can happen." But the students aren't the only ones who benefit. "The automotive program is real beneficial to a shop like ours, keeping a steady supply of technicians coming to us," said Riley.

One thing that hasn't remained steady about the emerging supply of technicians is gender content. With the shortage of skilled workers, what was once a decidedly male-dominated industry has found itself much more amenable to the notion of "non-traditional" recruits - namely women. Amber Bolas is a VICA national secondary officer and is enrolled in an automotive technology program in Sahuarita, Ariz. She admits to experiencing occasional gender discrimination, but knows where the greater problems for the industry as a whole lie.

"Our society's so based on 'you gotta go to college,' and they overlook the fact that in 10 years, 65 percent of the jobs will be technical. A lot of kids don't understand what a booming industry it is, and how much room there is for expansion. You can start out in an auto-tech program and move so many different places from there." Bolas, a skilled technician in her own right, plans to enter the business/marketing end of the industry after graduation. What's her advice to aspiring female technicians? "Do it; do it just to spite 'em. In all honesty, there's nothing in this industry we can't do as good or better than guys." And what does she think of her advisor? "She's great," Bolas proudly exclaims.

The automotive industry is definitely due for a tune-up. But, if that's the case, at least it's in the right hands. "I'd like to think it's going to get better," says Riley. "It's got to improve." "Besides," adds Bolas, "without automotive technicians, where would people be? Sitting on the side of the road."

Professionals Enhance the Industry's Image Despite Negative Stereotypes

2007-12-19T10:25:00.001-06:00

Automotive service is a favorite whipping post for national television news magazines, such as ABC's "20/20" and "Dateline NBC," as well as local television stations with aggressive consumer advocate investigative reporters. Their goal: catch the industry's bad guys, the incompetent mechanics and the purveyors of costly, unneeded repairs.

The broadcast media's hidden-camera and mechanically altered car sting operations have been played out so many times on our televisions that there's no need to recount their tactics here. We know them all too well. It is maddening to honest, well-trained technicians and shop owners when this negative stereotype is further embedded in the consumers' minds, reinforcing their belief that automotive repair professionals are not to be trusted.

What's even more maddening is when businesses and franchises within the automotive industry perpetuate this stereotype through their advertising. Recall the Pep Boys commercial which, until recently, was airing nationally. The commercial showed a car sitting at a garage day after day, touched only when the "grease monkeys" sat on it to eat pizza. "Three of my best men are on it right now," the owner said in response to the customer's phone inquiry. He was telling the truth. The mechanics were literally on the car.

Other commercials running regionally portray auto repair professionals as thieves. In the Southeast, Florida-based Tire Kingdom runs a commercial which shows a silhouetted tire technician. In the shadows, the impact wrench he is carrying looks like a pistol. "Every year, over 70,000 customers are robbed at gun point. Don't let it happen to you," the commercial voice-over says.

Similarly, a chain of brake shops, Brake Check, is running a commercial in Central and South Texas. In it, a brake repairman comes out from behind the car and tells the customer that her car needs a great deal of brake work. The repairman/robber is wearing a stocking mask. The voice-over says, "Take your car to Brake Check for honest repairs."

These and other similar commercials running regionally throughout the nation are designed to generate additional traffic into the advertisers' stores. While they may be successful in that regard, they are also successful in perpetuating the stereotypes that most in the industry are trying diligently to change.

What can be done to combat the news media and industry colleagues seemingly bent on showing the auto service profession as being comprised of bumbling incompetents or crooks? Is it likely that such a deeply rooted stereotype can be changed? Turning the Titanic before it hit the iceberg quite possibly could have been a much easier undertaking.

Because people's perception about the industry has been nurtured for years by the television news programs, negative portrayals in commercials and their own encounters with inept mechanics, the image cannot and will not be changed by rhetoric. As such, a national advertising campaign touting the honesty and competency of auto service professionals might prove fruitless.

If a national advertising campaign is not the solution to improving the industry's image, what is? Changing people's perceptions one person at a time.

This is accomplished by having well-trained technicians providing quality service in a clean environment and for a fair price; courteous and knowledgeable write-up personnel working with the customers; and, when there is a problem, the willingness to correct it quickly.

Consider your repeat customers. They value your skills and those of your technicians because they continue to bring their cars to your shop. As a repeat customer, their image of you undoubtedly differs from that of the negative stereotype.

There will always be customers who want to pay "Wal-Mart prices" for "Neiman-Marcus service." Those individuals will always be with us and we'll just continue working for them. Take an extra dose of patience when they walk in your shop because nothing you say or do is likely to change them.

With most customers, however, you can take strides to improve the industry's image. Every day, shop owners and their employees are working to that end. Some in little ways and others on a larger scale.

Mark Decareau of Asian Auto Services Inc. in Plaistow, N.H., said that for eight years he was working in a shop with a "4 foot by 2 foot" waiting room and "so much dust you couldn't clean." He said, "I just moved into a new building to give my shop a clean and well-run image. Now, there's so much room in my waiting area, I am lost."

Decareau believes in maintaining contact with his customers through frequent communication. He sends a "thank you" card after every service and he has a quarterly customer newsletter. Additionally, Decareau mails handwritten oil change reminder notices.

In Helena, Mont., Barry Reddic of Collision Pro believes, "A body shop must be a business, not a body shop. In the past, repair facilities were not run like a business; they were, for the most part, uncaring almost to the point of being without interest for the customers' concerns with the repairs of their vehicles."

Reddic added that he recalls instances when customers actually had to enter the service area and find someone to write an estimate. "I believe one of the steps that my business has taken that has greatly enhanced our image is the way we take care of our customers. They are greeted in a clean office as soon as they walk through the door. The office area looks professional and the customers' needs are a priority - not a bother," Reddic said.

In addition to their customers, Reddic said his business is working to improve its image with insurance companies by being experts not only in the repair of cars, but also in preparing and handling claims.

George Magoulas and Steve Munsey of Tanglewilde Auto Service in Houston have elevated the customers' perception of their shop by going online. "We have set up a Web page with online discounts and coupons," Munsey said. "We broadcast our Web address to our customers and encourage them to print and use the coupons." The coupons are changed frequently to promote return traffic to the Web site.

Magoulas and Munsey encourage customers to send technical questions via e-mail and they answer them the same day. Even with the evolution of electronic communications, dealing with the customers directly remains the best method for improving Tanglewilde's image, Munsey said. "We find that word-of-mouth advertising, courtesy and going that extra mile for the customer is the best image advertising you can have."

While the partners at Tanglewilde Auto Service believe "going that extra mile" pays off in repeat business and customer loyalty, that has not been the experience for Bill Brooks, president of a garage in Taylorville, Ill. "Here at Brooks Automotive, we have worked on educating our customers about the advantages of buying quality and service as opposed to buying on price alone," Brooks said. "It falls on deaf ears, for the most part.

"We have some customers, both new and old, who we can educate a little and help, but I see very little appreciation and almost no loyalty for the extra effort spent on their behalf," Brooks said.

Curt Marsh of Marsh Garage Inc. in Indianapolis employs a policy whereby his employees take an active and individual interest in their employees. "We care about them as people. We deal with them in a professional manner while treating them as friends," Marsh said.

Establishing professional yet friendly relationships with their customers gives Marsh and his employees opportunities to communicate their level of expertise in automotive service as a means of elevating the perception of the garage. "We make sure they know we are constantly involved in training to stay abreast of new technology," Marsh said.

Another policy employed at the Indianapolis garage is to never say anything negative about the industry or their competitors. "We don't badmouth the competition. When someone comes in complaining about another shop's work, we urge them to contact the other shop and give them a chance to take care of the problem," he said. And when his shop errs, "We take care of it as soon as possible."

In Colorado, Donny Seyfer of Seyfer Automotive Inc. hosts a radio call-in show, "The Auto Answer Man," which airs Saturdays from 11 a.m. to 1 p.m. on Denver's largest talk radio station. Through his participation in the radio broadcast, Seyfer said he is able to reach many more people than he could otherwise and he is always working to improve the listeners' impression of automotive service.

"We have had excellent response from listeners. It has been my continuing effort to be sure that each guest technician demonstrates a positive image to the listeners. I think we are doing a really good job promoting ASA shops," Seyfer said.

Importantly, he is careful not to degrade any individual, franchise or dealer in the industry. That would be counter to any gains he has made in elevating the industry's image, Seyfer added.

At Sam Giammalvo's Auto Sales and Service Inc. in New Bedford, Mass., brothers Mark and Glenn Giammalvo author newsletters and fliers designed to educate their customers about common problems most motorists encounter with their cars. The correspondence is also used as a vehicle to communicate to their customers that they are knowledgeable, well-trained technicians. "We believe this instills confidence in our customers that we are at the cutting edge," Mark said.

The brothers are also active in the industry, writing technical articles for Motor Age magazine and taking leadership roles in the local chapter of ASA.

Efforts to improve their expertise demand the investment of countless hours, Mark said. "Generally, at home each night, my brother and I are reading magazines, automotive service text books, and the like, trying to further push our understanding of this ever-changing industry.

"It also means putting time aside to attend association meetings like our ASA chapter's general meetings and board meeting." Mark said. "I don't mean attending one or two meetings a year. I mean every single meeting, if possible. It's a total commitment to the industry."

Just as individual shop owners, technicians, and service writers all have a role in improving the auto service image, so do industry associations. Nancy Guzik, director of consumer relations at the National Institute for Automotive Service Excellence (ASE), said they have implemented a number of public awareness activities to enhance the industry image. One such program focuses on women motorists.

Responding to national trends which show that women account for more than half of all service and repair customers, ASE has concentrated its efforts in reaching and educating women about car care, repair and maintenance issues by participating in women's and consumer shows, Guzik said.

The consumer shows cover a broad spectrum of subjects, from home design to financial planning. "They give ASE the opportunity to reach thousands of female, and male, motorists."

ASE uses association staff members and local certified technicians to man their booth at the shows in which they participate. So far this year, they have been to shows in Washington, Arizona and Texas.

"At the booth, not only do we distribute 'Glove Box Tips,' ASE's consumer car care brochures, but we have the chance to talk one-on-one with consumers about vehicle maintenance, the auto repair experience, and, of course, ASE and what it means to them," Guzik said.

The International Mobile Air Conditioning Association (IMACA) has undertaken a new program, the Code of Professional Practice, said Joan Jones, IMACA's marketing services manager. Through consumer education, IMACA is working to elevate the reputation of its members.

The program ensures that technicians perform thorough a/c system inspections. It also includes a written report which informs the customer about what's involved in a system inspection, regulations for recycling refrigerants, and how the costs charged for a/c service are determined. A supplementary pamphlet prepared by IMACA is available for their members to make available to their customers.

Members of ASA have agreed to adhere to the association's Professional Code of Ethics. ASA encourages its members to post the code in their customer waiting area as a method of communicating their commitment to professionalism in automotive service.

ASA works to combat negative representations of the industry through its electronic Image-Network. Membership in the network is free. The only stipulation is that individuals and shops who join must agree to assist ASA in its efforts to improve the industry's image.

Subscribers to the Image-Network receive periodic e-mail messages from ASA about industry news and events - both positive and negative. The messages also include ways to take action relative to the news and recommend steps to follow. Currently, there are nearly 800 subscribers to this network.

Whether it's working individually, interacting with customers one-on-one or collectively through industry associations, there are innumerable opportunities to improve the consumers' perception of automotive service.

Perhaps the wisest advice for how to improve the industry's image was offered by Curt Marsh of Indianapolis. While he and his employees are at the shop, they are cognizant of the need and importance of projecting a professional image, he said. However, the shop is only one part of our image: "I always try to make sure that I look presentable when I'm out in public and try to give a positive image of myself no matter where I am."

The Potential Employee...Finding Out What You Need to Know

2007-11-13T09:27:00.000-06:00

When preparing to hire a new employee, how important is it to check references and information you gain from applications and interviews? My advice is this: Check every shred of information to learn everything possible about a potential employee before you decide to hire.

The employees you hire play an important role in the future success of your business. And remember, these people may have access to your money as well as your other assets.

The following true story shows how one business owner learned the hard way about the need to check references.

Learning the Hard Way

John spread the word among his employees, suppliers and even his customers that he desperately needed to hire an experienced salesman. To his delight, an ideal applicant walked in seeking the open position. After a brief discussion, John felt he had a winner. He asked the applicant to fill out an application, but held off making an offer until he had interviewed all applicants. He didn't bother to review the man's application.

Two days later, John hired back a former employee, but promised the walk-in candidate he would keep him in mind and keep his application on file. He was delighted the young man didn't appear hurt by his rejection, and he felt even better when the applicant became a customer, buying $220 worth of merchandise. Then came the fatal blow. "May I write you a check?" the applicant asked.

"Sure," said John. He had no fear accepting the nice, young applicant's check. Besides, he had his application on file with 10 times more information than he normally requested from an unknown customer paying by check.

Guess what? The check bounced, but the real shock came when John tried to go after this con artist by using the information on the application. Not only was everything on the application totally false, but the people listed as references and past employers were also looking for him for writing them cold paper!

Remember that people applying for jobs want you to only see their good side, and they will sometimes avoid, obscure or even lie about information you need to know.

Here is a partial list of important checks to make on potential employees:

Check every personal reference. While these are traditionally friends, you might require prospective employees to submit references from people they have worked with, or ask for a large number of references. The more you check, the better picture of this individual you develop.
Check every previous employer. In addition to your standard questions, ask about this person's attitude, dependability, follow-through, willingness to assume responsibility, etc. These are vital elements of character and only previous employers really know the answers.
Check the credit bureau if the position you are hiring for will involve handling money. Money problems, past and present, paint a picture indicating financial stability or lack of it. My key rule is, "If you can't manage your own money, can you manage mine? I doubt it!"
If you are not a credit bureau member, perhaps you have a business friend who could help you obtain a credit report. Banks, realtors and businesses with big credit departments always belong to credit bureaus.

If you have no access to a credit bureau report, check the court records at the local courthouse for financial judgments, past or present. They keep records for seven years.
Check driving records. If the potential employee will have occasion to drive a company vehicle, you must know their driving record. Often you can simply ask the applicant to supply you with their current printout, or perhaps your insurance company can help you obtain access to this information.
Lose the employee's application. If you have any doubt about a desirable employee's honesty or you question the information on an application, remember this invaluable idea:
Call the person in and request that they complete a second application. You can state that you have "misplaced" the original.

Now, armed with two applications, double-check all information. Are dates of previous work history the same? Does any information not cross-check? If there are any major differences between the two applications, throw the red flag in the air and proceed with caution!

While I suggest you assume the role of private detective in gleaning information, how you react to such details is very important! Be extremely careful with what you say and even more careful with what you write (such as why you reject a job applicant). There is a rat's nest of local, state and federal laws governing employment. Review the laws thoroughly, or find and work closely with a good attorney.

Remember that time spent gathering data on potential employees is time well invested in the most important task you do ... bringing good people aboard.

Workplace Harassment and Potential Legal Liabilities

2007-10-11T12:21:00.001-05:00

There is a common misunderstanding that sexual harassment complaints only occur in large organizations or large metropolitan areas. The fact is that sexual and other workplace harassment complaints can and do occur in all sizes of organizations and all areas of the country.

An employer with 15 or more employees is a covered employer under Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, religion, national origin and sex (including sexual harassment). Many states have their own laws prohibiting workplace harassment and thresholds for employer coverage, and some such laws cover employers with fewer than 15 employees. Regardless of size, sexual harassment claims can be damaging to an organization in terms of image, monetary liability and employee morale.

Understanding the Types of Sexual Harassment Employers can avoid sexual harassment in the workplace only if they are knowledgeable about the law. The Equal Employment Opportunity Commission (EEOC), which enforces Title VII, provides guidelines on identifying sexual harassment. Sexual harassment can occur in one of two forms: quid pro quo or hostile environment.

“Quid pro quo” (the phrase means “this for that”) sexual harassment includes unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature by a supervisor when submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment, or submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting the individual. In other words, quid pro quo sexual harassment is the exchange of job favors for sexual favors.
“Hostile environment” sexual harassment includes unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when such conduct has the purpose or effect of unreasonably interfering with an individual's job performance or creating an intimidating, hostile, or offensive work environment.

Sexual Conduct Must Be Unwelcome

“Employers that don't take a complaint of sexual harassment seriously have the real potential of finding themselves in a difficult courtroom battle with the complainant.”

The EEOC views sexual conduct as unlawful only when it is unwelcome. The sexual conduct must be unwelcome in the sense that the employee did not solicit it and the employee regarded the conduct as undesirable or offensive. The conduct must be so objectively offensive as to alter the conditions of the victim's employment. The severity and pervasiveness of the harassment are factors that are considered in determining if the conditions of employment were altered. Of course, if the harassment resulted in a tangible employment action such as demotion, reassignment or salary reduction, the conditions of employment were altered. Employers that don't take a complaint of sexual harassment seriously have the real potential of finding themselves in a difficult courtroom battle with the complainant.

Harassers and Victims Can Be Anyone Sexual harassment is not gender specific. The harasser may be a woman or a man. He or she can be the victim's supervisor, a supervisor in another area, a co-worker, an agent of the employer or a nonemployee. The victim does not have to be of the opposite sex and the victim does not have to be the person harassed but could be anyone affected by the offensive conduct.

Supervisors Act As Agents for the Employer Employers are responsible for the discriminatory acts of their agents and supervisors act as agents for the employer. They have been given the authority by the organization to take actions on behalf of the organization. Because supervisors are in positions of authority, their role in the organization is held to a higher standard. Typically a supervisor would be an individual with authority to approve or recommend tangible employment decisions affecting the employee or would be an individual with authority to direct the employee's daily work activities. A supervisor with immediate authority over the victim or any member of management with successively higher authority that is responsible for any type of sexually harassing behavior in the workplace can be personally liable for their actions. While Title VII does not impose personal liability on supervisors, sexual harassment lawsuits often add tort claims such as battery or infliction of emotional distress, and tort claims do impose personal liability.

Employers Are Liable for Supervisors' Actions Based on 1998 Supreme Court decisions, it is clear that employers are subject to vicarious liability for unlawful harassment by their supervisors. This means employers are responsible for both statutory violations and the intentional torts of their supervisors because supervisors are aided in such misconduct by the authority that the employers assign to them.

Any time a tangible employment detriment occurs as a result of sexual harassment, the employer is liable. Tangible employment detriments can include firing, failure to promote, demotion, undesirable reassignment, a decision causing a significant change in benefits, compensation decisions and work assignments. If no tangible employment detriment has occurred, the employer may be able to avoid or limit liability by establishing an affirmative defense that must include two elements:

the employer exercised reasonable care to prevent and promptly correct any harassing behavior, and
the employee unreasonably failed to take advantage of any preventive or corrective opportunities provided by the employer or to avoid harm otherwise.

Act Promptly and Make the Harassing Behavior Stop What should an employer do if an employee comes forward and complains that someone connected with the organization has sexually harassed them? The first suggestion is to promptly begin getting to the facts. The key word here is “promptly.” An enforcement agency or a jury will closely scrutinize the steps taken and the time it takes an employer to respond to a sexual harassment complaint. Complaints that are reviewed and resolved quickly are looked upon more favorably than complaints that seem to stretch out over an extended period of time. Second, if harassment has occurred or is occurring, make the harassing behavior stop by taking the appropriate corrective action. The EEOC's guidance on employer liability is “an employer is liable if it knew or should have known of the misconduct, unless it can show that it took immediate and appropriate corrective action.” Prompt consultation with outside counsel is recommended.

What We've Learned From Supreme Court Decisions The Supreme Court has basically told employers what efforts they can take to prevent sexual harassment in the workplace and limit their liability in the event it does occur. Here are two very important steps an employer can take to stay on the right track:

develop, disseminate, and enforce an effective anti-harassment policy that defines and prohibits sexual harassment and provides clear guidance for employees on how to report complaints of sexual harassment; and
exercise reasonable care to address all complaints through effective investigations and take corrective actions promptly.

A word of caution—don't assume that a well—written anti-harassment policy and complaint procedure will alone satisfy the burden of proving reasonable care. The subsequent actions taken by management will be the determining factor as to whether or not the organization exercised reasonable care.

Anti-Harassment Policy Communication Is Critical Also, the communication efforts taken by the employer will be very important in proving it exercised reasonable care in preventing and correcting sexual harassment in the workplace. Any and all of the following steps should be considered for implementing an effective anti-harassment communication system:

provide every employee with a copy of the policy and complaint procedure
redistribute the policy periodically
post the policy in central locations
incorporate the policy into employee handbooks
provide training to all employees to ensure they understand their rights and responsibilities

So every employer should have two things: a comprehensive anti-harassment policy, effectively communicated to all employees; and an effective mechanism for receiving, investigating and resolving complaints.

Harassment Is Not Limited to Sex Employers should be aware that harassment complaints that are unlawful are not restricted to sexual harassment complaints, but can include other types of discriminatory treatment on the basis of race, color, religion, national origin, age of 40 or older, disability, etc. The EEOC has always taken the position that the same basic standards apply to all types of prohibited harassment. As such, employers are encouraged to establish anti-harassment policies and complaint procedures covering all forms of unlawful harassment.

This article is not intended to provide legal advice, but is intended to provide sensible advice for employers of all sizes. Employers are encouraged to understand the federal and applicable state laws prohibiting sexual and other forms of harassment in the workplace so compliance can be ensured.

The Many Benefits of a Pre-Employment Screening Process

2007-09-04T12:56:00.000-05:00

You wouldn't dream of packing your family in the car and racing down the freeway without making sure their seat belts were buckled. And why is that? Because even though it may have been a few years since you last took a driver's education course, you know just how deadly and dangerous a car crash can be without the protection of seat belts. The same is true for a pre-employment screening process.

Any owner that has both employees and customers (I hope this includes you!) and does not have a thorough pre-employment screening process is betting their entire financial future that not one of the following will happen in their lifetime:

An employee will harass or harm another employee.
An employee who is either under the influence, not certified or not qualified completes a job improperly on a client's vehicle, causing either damage or death.
An employee will steal from you, the customer or both.
You might be thinking none of those things have happened to you or anyone you know in the five, 10 or 20 years you've been in business. But consider the following:

A third of all application forms contain outright lies about experience, education and ability to perform essential functions on the job.
In May 1999, an estimated 16,400 threats were made, 723 workers were attacked and 43,800 were harassed every workday.
A third of all applicants admit to being tempted to steal from an employer.
Pre-employment screening helps reduce the possibility of the above tragedies happening by making sure the information presented by the applicant is accurate and by attempting to uncover information an applicant has failed to provide. Some of the new screening tests that are commonly used are testing for illegal drug use, running a credit report, physicals, psychological tests, FBI fingerprint reports, education confirmations and hands-on testing. This is a far cry from the old forms that - unfortunately - many still use from the local stationers, that only ask for an applicant's name, address and last three employers.

Money

Whenever I talk to business owners about how important it is to create a pre-employment screening process, they tend to agree with the points I make - then they start to rattle off excuses as to why they shouldn't change. (Because as we all know change can only be for the worse!) These excuses usually revolve around three main topics: money, experience and privacy.

Money objections are the easiest to answer and the hardest to overcome. The reason being, the amount spent on pre-employment screenings can be provided as a solid number. For example: $50 for every drug test, $60 for every physical, etc. This money is being spent almost like an insurance premium to avoid a potentially larger penalty later. (The average award in a workplace violence lawsuit exceeds $1 million per case.)

To help eliminate this hurdle, I first meet with the owner and decide what they are looking for and how detailed they want the screening process to be. Often we will create two different screening processes, one for all applicants and one for only the best applicants. This helps reduce the total cost while still reaping the benefits. Sometimes, however, an owner will come back and say, "I don't have $50 to spend on the process."

My answer is always, "That's exactly why you should do it! If you don't have $50 now, how do you expect to pay a verdict of even $10,000 if something did happen?"

Experience

I'll be the first to tell you I don't know the first thing about fixing computers. Why should I? I get paid to help my clients improve the profitability and performance of their businesses. My time is much better served listening to owners than learning new software codes. The same is true for pre-employment screening. Don't be tempted to learn how to give a physical or how to access the FBI database. Have the experts do it. They are much faster and more efficient then you would be. You will also find they are able to do it cheaper than it would be for you to take your energy away from your business to learn a new skill.

Privacy

Service companies are not like manufacturing firms. You cannot create an excellent experience for the client, store it on the shelf and pull it off when you need it. Instead, every experience is unique; that is why all employees must perform to their peak levels at all times. This happens only when employees feel safe at work knowing they can trust each other and it is a non-hostile work environment.

Owners often worry that if they start adopting a pre-employment screening process, applicants and employees will feel too much like they are suspected of not being forthright. What I have found is often quite the opposite. Employees enjoy knowing that the person operating machinery next to them is not on drugs or that if some harassment is starting to happen the owner has a policy that could stop it immediately.

Pre-employment screening is not only a way to limit your liability, but also a way to tell applicants and employees alike that you screen so thoroughly because you hire only the best of the best.

Good Hiring Takes Preparation

2007-08-07T12:13:00.000-05:00

Chances are you can easily remember how it feels to have a promising new hire. The lengthy interview process is over; you can announce the new employee to the other staff; and productivity will quickly be back up to speed, with only a minor backlog. Relief and a pat on the back are in order for a job well done. That is, until the new hire shows up late for his very first day of work. You tell yourself, maybe he got lost or wasn't clear about the work hours. Day by day, you learn a little more about your new hire's less desirable qualities, and what looked promising at first, now appears problematic. You end up feeling frustrated and wondering why you hired him in the first place.

According to the American Management Association, hiring mistakes can have the greatest negative impact on a company's performance, and when the wrong person is introduced to a small or close-knit department or company, the repercussions can be devastating. There are, however, steps to take to help avoid costly mistakes when hiring office personnel in today's competitive job market.

Job Evaluation and Description

With the existing labor shortage affecting just about all industries, the first step in hiring office personnel is to thoroughly evaluate how the job is being done and whether it should be done differently or replaced with technology, according to Mel Kleiman, managing partner in the Hire Tough Group, Houston, Texas. Studies done by the Bureau of Labor Statistics of the U.S. Department of Labor show that the number of people who were employed both year-round and full time (65.6 percent) in 1998 was the highest it had been in nearly 50 years and this trend is likely to continue. “It's a very competitive market for everybody and we can no longer continue to do jobs the way we have always done them,” said Kleiman.

The next step is to define the duties of the job and the qualifications candidates need to fill it. The pressures of time and expense can often lead to sketchy job descriptions, however, a clear understanding of the job and what you're looking for will help both you and your future employee. According to Grayson Foster, partner in WD Consulting Group, LLC, Metairie, La., job descriptions for office personnel should define the following: accountability, primary responsibilities and job tasks, educational requirements, and critical knowledge, skills, abilities and other characteristics needed to perform the job.

Under accountability, it should be clear who the employee will report to, and if the position has supervisory responsibilities, who will report to the employee. This area should also cover accountability related to financial responsibilities, such as checking the accuracy of work orders or ordering parts.

The responsibilities and job tasks section should be a list that defines the specifics of the position without becoming overly narrow, and therefore, limiting what you can ask the employee to do.

The knowledge, skills and abilities area should outline what skill sets and experience the job requires, as well as your expectations for the employee to participate in company-sponsored training to enhance their skills. This area should also define expectations concerning self-education, what the employer expects employees to do on their own to better themselves. “You want your employees to continue to improve themselves and not wait for you to do everything for them,” explained Foster. He also recommends that a job description spell out care for equipment responsibilities, since so many office jobs involve computers and software, and sales and marketing tasks. For example, a job description may define that the employee attend monthly sales meetings or make suggestions on company marketing and sales promotions.

Lastly, the job description should address any educational requirements for the position such as postsecondary degrees or certifications.

“Every employer should go through this process before they interview someone. A well-executed job description becomes a very objective road map for the job and it also gives employers a format to evaluate performance on the job, once someone is hired,” said Foster.

Interview Prep

Hiring experts recommend that all candidates fill out an application form prior to the interview to gather basic information (name, address, telephone) and information about past employment, education, references and any convictions. Applications must comply with state and federal legal requirements, so check with your legal advisor to verify your application is in compliance. In addition, if you require drug screening, make sure you have the applicant's signature to acknowledge their understanding and acceptance of your drug policy. (Check with your attorney to establish a legally correct drug policy and supporting forms.)

When it's time for the actual interview, many employers aren't adequately prepared and this becomes one of the most common hiring mistakes. Most people simply “wing it” and read the resume for the first time right in front of the applicant. By reviewing the resume ahead of time, you can plan your questions, look for warning signs and appear prepared, confident and professional. Some warning signs to look for include gaps between jobs, career progression and whether the candidate has bounced around from employer to employer, and wording about credentials (for example, “attended university” doesn't mean “graduated from college”). Resumes should also be reviewed for their overall appearance and organization, as well as spelling and grammar. A messy resume or an incomplete application form will tell you a great deal about the applicant, even before you conduct the interview.

The Interview

Employers should develop a list of questions based on the qualifications and tasks of the job. Foster recommends that each applicant for a given position be asked the same questions and scored based on their response. A prepared list of job-relevant questions will encourage the applicant to share more about his skills, knowledge and experience, and allows you to get the same information about each candidate. “What we find is that in a normal interview, the employer talks 80 percent of the time, and ends up learning very little about the candidate. A prepared list of questions will help avoid this mistake,” said Foster.

The best interview questions are those that are open-ended and allow the candidate to talk. Kleiman recommends the following questions when interviewing office personnel: “How would you describe the first job you ever had that you were paid for, and what did you learn from that job?,” “What does it take to be good at the job you're applying for?,” “What is the toughest job you've ever had and how long did you last at it?” and “When I talk to your references, what will they tell me about you?” He also recommends asking, “Why should I hire you over anyone else?,” “What is one reason why I shouldn't hire you?” and “Is there anything else you'd like to tell me about yourself?” Other questions to ask should pertain to the applicant's accomplishments, academic background and career goals.

According to Kleiman, questions that all employers should ask, but don't like to ask, are those that help them understand the applicant's dependability, performance, safety on the job, criminal record involving convictions (if any) and drug use (if any). Questions never to ask include those about race, religious belief, national origin, marital and family status, age, disability, workers' compensation history and previous arrests.

If the job requires good communication skills with vendors and customers, be prepared to role-play with the applicant. For example, ask an applicant for an accounts receivable position how they would handle 90-day delinquent accounts. If the position requires a specific skill set, such as accounting software proficiency, be ready to test the applicant on their skills. In addition, take into account your first impression and the “personal chemistry” of the candidate, especially if the position involves customer interaction. If the candidate looks sloppy and unprofessional, and doesn't make a good first impression with you, he's likely to be the same or worse around your customers.

Leave time during the interview to explain your business and your background, as well as general shop policies and when you expect to make your hiring decision.

Reference Checks

While it takes extra effort, not doing reference checks almost always results in problems later. Applicants should be asked to sign a written release granting you permission to contact their references. Take the time to call the candidate's references and although previous employers may not divulge a lot of information, they should respond to a very important question: “Would you allow the applicant to work on your team again?” A reference who refuses to answer or provides a negative response has given you some valuable information. You may also wish to hire a company to do a background check on the candidate to verify education and criminal record.

These steps will help identify the right person for the job. In a competitive labor market, Kleiman advises shops to take a proactive approach toward hiring whenever feasible, which means to always be on the lookout for your next employee and avoid crisis hiring. According to Kleiman, people who you come in contact with on a regular basis, such as suppliers, are the best sources for prospective employees. The second best source is people who have left your business for another opportunity. According to the Web site, asktheheadhunter.com, the best job candidates today are part of a “hidden candidate pool.” That is, they're not looking, but they're available.

Keeping Employees Happy

2007-07-13T16:38:00.001-05:00

Dealing with employees can be one of the toughest challenges for a shop owner. By learning some basic strategies of employee management, an owner can reduce his or her stress level, minimize personnel problems and better ensure the success of the shop.

Let's start by going over some basic concepts. Employees are people you employ (hire) to work with you and assist you in achieving your business goals. An owner needs to have well-defined goals and must be able to communicate them to employees to get their support. Good employees want to know what you are trying to accomplish, how they fit into the picture and how they can benefit by helping you succeed.

To find and hire good people, you need to know what good people are looking for - what motivates them to get up in the morning and go to work. Of course, people want money; they want to get compensated well for the work they do. But it's not the only thing they want. Good people are also looking for a group to be part of, and they want to know that their work is contributing to something of importance. Many people also want stability; a well-organized, high-morale working environment and growth potential. Some look for an employer who can communicate clearly and who stays relatively calm even during times of high stress.

Take the time to sit down with each member, or potential member, of your crew and find out what each one wants in life. Ask about their goals and ambitions. Make sure they each understand what you expect from them, the level of production you demand, what one's compensation will be if he or she achieves this level, and how this will help them get the things they want out of life.

Your employee pay plan should reward high levels of production. It can even be tailored for each individual. One technician might work extra hard for a cash bonus while another might prefer paid vacation days for a reward. Just make sure you don't pay high wages or bonuses without also demanding high production. Many pay systems are based on hours on the job. These systems pay people who don't produce much the same wages as those who produce a lot. In companies with these systems, employees learn that if they just show up and look like they are working, they'll get paid. It is up to the owner to demand high production and to reward it. Don't reward the underachiever.

Make sure you have a system for tracking and monitoring production, and graph and post these statistics weekly. Your best employees will feel acknowledged and, hopefully, the worst will feel the need to improve. Each employee should be responsible for at least one statistic that measures the main thing he is producing on his job. For example, each technician's billable hours should be calculated weekly and depicted on a sheet of graph paper. Post these graphs so each employee knows where he stands. Employees need to know that their employment and pay is based on their level of production and its value to the company, and not on who they know or their personality or other arbitrary factors. An employer who does not enforce this kind of accountability from his employees is likely to make personnel decisions based on guesswork rather than facts.

An interesting question to ask any employee is, “Where does your paycheck come from?” Many will respond, “My boss.” Some are closer to the mark when they say, “the customer.” But the truth of the matter is that an employee's pay comes from his own hard work - his ability to produce quality products and services the business can then sell to customers for income and support.

The executive of a business must be able to organize the activities of the business and train employees so they will be able to produce valuable products. Most people want to achieve results they can be proud of and, to a great extent, it is up to the owner to make sure they can be proud of their products. It is an owner's responsibility to make sure each person who comes on board is given a clearly delineated job and is adequately trained so he understands how to do this job. He also needs to be shown what his job means to the rest of the crew and he needs to know about the overall product the company produces. Unless every employee is aware of how his job relates to the final product of the company, you will never really have an efficient team working together to achieve your goals.

Mandatory weekly meetings with your crew will strengthen the concept of a team - that you are not just a bunch of individuals running around frantically trying to get something done - and will give you a chance, as a team, to review how the shop did during the previous week. It is vital to stay positive in these meetings, to accentuate and focus on the production and improvements that were made in the previous week and to set targets for the upcoming week. Stay upbeat and don't let the meeting drag on. If a particular employee did something above and beyond the norm, acknowledge him or her in front of the group. If there are any corrections or improvements you want to see, go over those, too. However, never single someone out for correction in front of the group. If you're unhappy with someone, always address this with him privately.

Help each of your employees to see the priorities of the business correctly: first, to make sure the customer wins because without customers there is no purpose for the shop; and second, to make sure the shop is winning (viable) because without the shop, there is no purpose (or paycheck) for the employees. Finally, the employees have to win because if they can't win, they won't stay. Review these priorities at your team meetings and make sure everyone understands them.

Managing employees is a primary responsibility of an owner. Your success at it will be a reflection of your attitude toward the business. You set the tempo and the pace for your crew. If your standards are high, and you demonstrate your commitment to meeting these standards, they will follow. If you show genuine care for your people, they will respond.

Today's Female Customer - Loyal or Not?

2007-05-29T10:22:00.001-05:00

I need help! That's the way the phone conversation began when an owner of a small repair shop called our office a few months ago. He told us that 75 percent of the customers on the other side of his service counter were women and he had never related very well with female customers. Being able to relate with women hadn't mattered so much in the past but now that his customer base had shifted to primarily female, he was concerned about the future of his business. Rightly so- who wouldn't be concerned if they felt like they weren't relating well with 75 percent of their customers!

At first, it seemed like this gentleman must be doing fairly well to have brought in that many female customers in the first place. Why not just keep doing what he has always done? Why would there be any risk of losing customers at this point? The truth is, a business like the one described above may not have done anything to attract female customers other than just being in the right place at the right time with products and services that are in high demand. The huge increase in female customers in the automotive industry has more to do with shifts in the overall marketplace and in the larger economy than it does with how we conduct business.

Most of the clients we work with and people who attend our AMI seminars tell us that women make up anywhere from 60 percent to 80 percent of their customers. Most of them report that this shift in their customer base has happened within the past five years. That's big change! They realize that the future success of their businesses depends on how well they adjust to the unique needs and customer expectations of female customers.

One of the things we talk about in our seminars is how female customers tend to be very loyal. Women have historically scored quite high on the loyalty scale in consumer research studies. More recent research, however, indicates that today women are more likely to "walk" if they aren't recognized and respected as decision-makers. If they don't get the customer service they expect from your business, they'll go elsewhere. They are increasingly likely to shop around to find services, products and respect. They are less likely than ever before to put up with high-pressure sales or mediocre service.

What's up with this? Are women becoming less loyal? Was the research wrong in the first place? No, women are still loyal customers, but not just for the sake of loyalty. What has changed is that they have more choices as consumers today. Women have an incredible amount of purchasing power- and businesses and industries are beginning to catch on as they take action to attract female consumers.

We're on the leading edge of a huge trend in marketing to women that will impact all of us in one way or another. Every day it gets easier for a woman to find another business that will meet- and perhaps exceed- her expectations. The businesses that actively improve their understanding of the female consumer and how to meet her consumer needs will stay on the competitive edge by keeping their female customers. No, the loyalty factor of female customers hasn't changed. What's changing is the number of choices she has about where she'll place that loyalty.

The shop owner in the opening story realized that although he hadn't done anything in particular to bring those customers in, he would have to take action to assure that they came back. What about you? Has your business seen a huge increase in female customers? How well are you serving those customers? Do you know what keeps them coming back? What if your biggest competitor were to begin to actively market to women? Would your customers stay with you- or would they be lured away?

It's certainly not new to think of customer retention as a key factor for staying in business. The gentleman in the opening story didn't need a marketing plan. What he needed was a plan for keeping the customers that were already there. How was he going to do that?

The adjustments you need to make could be as simple as cleaning up the waiting area (that's one we hear a lot!). It could be as complex as educating your customer service people or improving the attitude of your technicians. Whatever it takes, learning how to keep female customers may be key to the future success of your business.

Generally speaking, we don't have to second guess to find out what female consumers want. Because women are responsible for 85 percent of consumer spending in the United States, there's a tremendous amount of research already available about female consumers. Search the Internet, watch the newspapers, attend sessions at your association events, read trade publications and talk with colleagues. The information is out there. Find it and use it before your competitor does.

As helpful as it is to have all that information at our fingertips, don't overlook your most valuable resource- your current female customers. What do they like about doing business with you? What keeps them coming back? What's missing? What could improve? Consumer research indicates that women like to respond to surveys and questionnaires. If you want information about your current customers, ask them! If you have the resources, conduct a focus group made up of current customers. You'll be amazed at the usefulness of the information.

We can advertise and market and get in front of all the strangers we want to, but it's always our current customers who keep our businesses afloat. Ask them for feedback and be willing to implement change in response to what they tell you.

Sounds simple, doesn't it? Yet, it isn't as simple as it sounds. This market shift is very significant. Most businesses don't understand what a huge long-term impact it will have on all of us. Women are driving the marketplace- and yet are still seen as "non-traditional" customers in the automotive industry. Most of our customer service, sales and other business strategies were designed with a traditional male customer in mind. Today we are serving a new customer. This means change in every aspect of our businesses.

Have you made some changes? How have you adjusted your business practices to incorporate and welcome the growing influence of your female customers? What are you doing to assure that they remain your customers? Now is the time to stop and ask yourself these questions. We are still at the beginning of the market shift. If you've already experienced an increase in female customers, you have probably been fortunate to get these customers without even trying. If you can gain their loyalty and give them good reason to stay with you, you will have a strong competitive advantage in the new millennium.