Hitting Your Goal!

Jim Welch Newsletter Wow! The first quarter of the year has already passed. How is your year going so far? Are you on track to reach your goals and meet the projections you worked so hard to put together?

You spent hours looking over last year’s financial statements, month by month. You looked over last year’s sales, gross profits, and the all-important expense reports. Thinking to yourself, “How am I ever going to get that additional 10% you included in your forecast over last year?”

Did you ever get around to establishing those technician production objectives? Remember, every technician has his or her own objectives, whether formal or informal. We need to establish and set daily production objectives for each technician. Remember “Inspect What We Expect”.

So let’s get started. First we’re going to gather some basic information from the last six months. You can run a technician performance report in most DMS software which will include the total hours produced.

Things you’ll need:

  • Total number hours each technician has produced for the last six months.
  • Number of days worked (not including vacation, training and/or sick days taken).

Now we will use the formula in Example 1, (below) to figure the average hour produced for each technician. Repeat this procedure for each technician.

Example 1

Technician
Total Hours Produced
Number of Days Worked
Average Hours Per Day
John
1199.7
/
129
+
9.3

We’ll separate them into three groups and assign a specified amount of increase.

  • Top 1/3 producers: Average daily x 105% (+5%)
  • Middle 1/3 producers: Average daily x 110% (+10%)
  • Bottom 1/3 producers: Average daily x 115% (+15%)

Once that has been completed for each technician we will use the formula below to achieve their new Daily Objective.

Example 2

Technician
Current Average Hours Per Day
Percentage of Increase
Amount of Increase
New Daily Objective
John
9.3
x
5%
=
.5
9.8
Dan
8.4
x
10%
=
.8
9.2
Fred
7.6
x
15%
=
1.1
8.8
George
8
x
10%
=
.8
8.8
Total
33.3
     
3.2
36.5

Now that we have put together all the data, it’s time to set aside the required amount of time to meet with each technician. I realize time is a rare commodity in a Service Manger’s life, but I’ve learned everything has a price. The price in this case is your time. Schedule a meeting with three or four technicians per day and spread the meetings throughout the week. Keep the meeting no longer than 15 minutes for each technician. Make sure to stay on topic since the time you have is crucial, but limited.

Meeting and getting buy-in is essential in establishing an obtainable objective for the technician. If the technician feels like they can’t reach their objective, they rarely will, if ever achieve it. During the meeting it’s extremely important to listen with both ears! Do more listening than talking during the first meeting and come to an agreement.

You should schedule regular meetings to follow up with your technicians to review their objectives and their progress. This process should be done on a weekly basis if possible. If a technician falls short of his or her objective for more than three days in a row, meet with that technician to investigate the reason why they are coming up short and resolve any issues that may be prohibiting them from obtaining their objectives. You may even discover a concern that can be easily remedied and will benefit the entire shop. As I travel throughout the country, I witness Service Managers going over the Service Advisor’s performance report every morning. Making copies to give out to every advisor, studying every line to see their ELR, hours per RO, Gross Profit, and total hours, but rarely do I witness them going over each technician’s daily production. If you are one of those managers that reviews your technicians daily productivity report, then kudos to you! If not, give it a try! The results just might surprise you.

 

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