June 2021

JUNE 2021 AFTERMARKET 13 Do not be presumptuous. For example, one that a lot of people talk about is staff productivity and efficiency. “Your results of your analytical data research have identified that you have a technician who is under-performing.” How many people would just take that at face value and assume the technician is slacking off. Dig deep, delve around and you may be surprised. Yes, the technician could be slacking off, or very often it could be related to issues out of their control, such as wrong parts, moving vehicles around, incorrect data from front-of-house. But it could also be that they are being given tasks that they are not competent in doing and this will highlight a training issue. It often takes time to get to the bottom of why. When do we tackle these KPIs? At CCM we have a dashboard spreadsheet which list all our KPIs in one place and these get updated monthly. This gives us the platform to compare each depot, not with each other but each on its own merit. It flags up any anomalies and allows us to investigate before a problem develops. Often there is a logical explanation, but it needs validating. These results are discussed as a team. If there is an issue, they normally have the solution. It educates them about what they do, how it effects the business overall and makes them accountable. It is a team effort after all. One of my important KPIs which I like to discuss with the team is our recovery rate. Let’s say the labour rate that you charge your customers is £90 per hour. Then factor in all the scenarios where your labour rate gets discounted. Yes, we are all guilty of doing this at some point. At the end of the month, your total labour sales divided by your total hours sold gives you your true labour rate, known as recovery rate. Be aware of what will affect this. If you carry out MOTs at your garage, this will impact your recovery rate. Assuming you allow 45 minutes for a test, normal workshop labour for a 45-minute job, based on your rate of £90, will be £67.50 but your MOTs will be sold at £54.85 or even less. This is fine, we just need to have cognizant of the impact of low-cost MOTs have on our recovery rate. At CCM, we aim for 88%-90% which we often achieve. Challenge yourself The list of KPIs is endless. Find the balance where you have enough KPIs to give you a good overview of your business without it taking over everything you do. Focus on measuring things that are core to your business. Do not compare yourself with others, what results that one garage get will not necessary be the same for you which is why it is imperative that you look at your own data. Remember, data is powerful. I have had an immense amount of guidance from Andy, his Financial Course is a mind-opener and the knowledge I have gained about our business from measuring is awesome. Be warned, it is addictive. Once you start, you will find it hard to stop. Your KPIs will provide you with an analytical view of the current situation in your business ” %$" $ !"#$%& GDI Injector %#% $ # $% Cleaner % $ $ % " $ % # " $ $ # # Email: info@kalimex.co Call: 0800 783 3717 For more information: % . uk