The three major components of an auto repair business are business processes, inventory and personnel. They’re all inter-related and together impact the success of the organization. Successful managers seek to continuously improve by reducing costs, increasing efficiencies and providing an environment that gives employees incentive to contribute. Balance always needs to be considered as the many parts of a business are inter-related. Following are practices of successful management. To open the full article click the bullet heading.
- Increase Profits Through Process Improvement – Improving and streamlining processes within an organization can eliminate waste, reduce costs and enable better customer service. Focusing on the core processes of the business will have the most significant and immediate imp act.
- Determine the Most Effective Inventory Balances to Maintain – There’s a cost associated with carrying inventory but there’s also a cost that comes with not having inventory. Looking at different types of inventory and determining whether or not to carry stock and if so at what level versus purchasing as needed should be done on an ongoing basis to maximize profit and provide optimum service to your customers.
- Evaluate the Effectiveness of Repair Order Processing – The cost of processing a repair order can vary considerably depending on the complexity of the work to be performed as well as a number of other factors. A very simple repair order can take very few relatively small steps while a complex order can take many steps. Continuous evaluation of each step in the process as well as the transition between steps will maximize profits and ensure customer satisfaction.
- Empower Employees – “The best executive is the one who has sense enough to pick good people to do the job, and self-restraint enough to keep from meddling with them while they do it.” –Theodore Roosevelt
- Foster Competition while Encouraging Cooperation – For an organization to be successful both competition and cooperation are necessary. The challenge is to allow for competition without letting it interfere with cooperation.
- Write a Business Plan – Writing a business plan is essential to success in any enterprise. It’s about leadership. A business owner who doesn’t plan is not leading.
- Focus on Team Building – A group of competent individuals working as an integrated unit will be many times more effective than a group of superstars acting independently. Fostering teamwork and cooperation can be the most important ingredient to success in business. The effectiveness of a team reflects the leadership abilities of management.
- Instill a Sense of Ownership in Team Members – A sense of ownership in its members is at the core of every successful organization. People equate ownership with investment. When people invest of themselves the outcome becomes more important.
- Plan for Change Implementation and Follow Your Plan – Implementing change can be one of the biggest challenges to a manager. Managing the change process and leading people through it are the keys to success. “The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand” … Sun Tzu
- Measure Your Efficiency and Proficiency – Managing availability and usage of shop labor can have a profound effect on profitability. Processes must be put into place to use the information to make evaluations and identify areas in need of improvement. Including employees in the evaluation process will bring a perspective that may not be readily visible to management.
