Taking or Giving Responsibility: Who is the Manager of your Shop?

One lesson of life that is repeating itself: “I cannot be all things to all people.” I don’t have to be, or more realistically, I can’t be good at everything. Many shop owners think they need to be the best technician, best service advisor and best manager in the shop; and some actually think they are, when reality shows differently. Being a good leader does not mean being the best. It means knowing how to hire and retain the best.

As business owners we need to have a realistic view of what our skills are, and then hire for what skills we don’t have.

Learning your responsibilities as an owner

My last article touched a nerve with a lot of people; however, these were not shop owners responding to me, but service advisors and technicians. What these folks are telling me is that their boss/owner has dumped most of the responsibility for managing the company on them, and then come and go as they please; and when they are at the shop, throw their weight around, to make sure everyone knows who’s the “boss.” As previously mentioned, 97 per cent of all independent automotive shops are started by technicians.

These technicians turned owners need to be clear about their role and position in the company, and the remaining roles and positions, and the people who fill them. In small business, the lines between the roles and positions of owner and manager are blurred.

It is very common that the owner is the manager. As companies get larger and have shareholders or offer publicly traded shares, the lines between owners and managers become more defined. It is not uncommon for a company to be started by an entrepreneur and grow to a large size very quickly only to have the board of directors vote the owner out of management and put in a professional management person or team. The person who starts the company is not always the right one to manage it once it matures.

Owning an automotive repair shop is not like owning a car or a set of tools. You are not entitled to do whatever you want with it. As a shop owner you have benefits and privileges, but you also have duties and responsibilities.

First, as an owner, you need to ensure that the business makes a profit, not only to stay healthy and grow, but for you to get a return on your investment, and be compensated for the risks you have taken. Second, you are accountable to the bank or any other person or institution that you owe money to. The loans need to be paid off.

Third, you are accountable to your customers. You are selling products and services that come with a warranty that needs to be honored, and your customers also rely on you to be there when they need you. Fourth, you are responsible to your employees, to provide them with a career and a good living. The positions of service advisor and technician are professional positions worthy of professional compensation and reasonable job security.

Fifth, you are accountable to your suppliers, to you paying your bills and loyalty so they too can plan and operate their business. Sixth, you are accountable to the community, to maintain environmentally sound practices and overall good corporate citizenship.

Seventh, you are accountable to pay your fair share of taxes and contribute to the economic health of this country. And lastly, believe it or not, you are accountable to your competitors.

How many of us have seen shops open for a few months or years, only to close their doors. During that time they offered cheap prices, poor quality, and generally gave our industry a bad name. Each market has potential for a certain amount of business; yet if a company abuses their market share and then closes their doors, they have wasted those economic benefits that another shop could have used.

Where does the manager fit in?

Now that we have discussed the responsibilities of ownership, where do the responsibilities of the manager come in? Like I mentioned before, in most shops the owner and the manager appear to be the same person. However, I would like to discuss the role of the manager and clarify for owners:

1) If the owner is truly both owner and manager

2) If the owner has abdicated the position of manager and left the shop managerless

3) Or the need to either hire a manager or place a current employee in the position of manager. In the case of the latter, that would include giving responsibility, learning to let go of control, and compensating the manager accordingly.

So a decision needs to be made, who is the manager? Regardless if it is the owner or someone else, the position and role of manager needs someone who is trained for that position, and has a clear description of their duties and responsibilities.

My definition of a manager is someone who is responsible to operate an automotive repair shop with the best practices of the industry, ensuring that it is profitable and that all stakeholders’ interests are addressed. This calls for a well trained, experienced and highly paid individual. That individual can be the owner, or a person hired by the owner.

The job description of a manger is complex, but it can be outlined in a few key points. A manager needs to be able:

1) Measure the business. Included in these measurements are; sales, gross profit margins, net profit, productivity, efficiency, sold hours per work order and average invoice size. The manager needs to know and understand the industry benchmarks and how to make operational decisions to improve the shop results if they fall short of the benchmarks.

2) A good manager will use current best practices and source other required systems, procedures and processes to create the operational improvements required by the business. An example of this would be a clear and consistent write-up process that would gain a clear understanding of the customer’s concerns and mutual agreement about what work is being authorized that day.

3) The manager needs to have the skill (or learn the skill) to train their team members in the systems and procedures. Having the skill to train one’s own team members in systems and procedures is probably one of the most challenging for shop managers and owners.

4) A good manager knows how to engage and acknowledge their team members. This means that they know how to ask the right questions of the team members to see if the training is clearly understood. Can a team member repeat what they learned in such a way that it is clear they know exactly what is expected of them.

5) Next, the manager needs to constantly be mentoring team members in the systems and procedures. A common challenge is new habits take time to take effect and there are always unexpected situations that need to be addressed and adapted to. A good mentor knows how to inspire their team and show the value of how a particular system or process affects them and the customer.

6) Finally, a manger need to ensure that there is continual and effective implementation of systems and pro cedures that lead to the financial and operational goals of the shop. This includes staff reviews and staff meetings. To close the management loop, the manager once again measures the business against the benchmarks to see how effective the implementation process has been.

The long-and-short of this article is taking responsibility. As the owner of an automotive repair shop you need to have a clear understanding of the responsibilities of an owner and those of a manager. If you choose to be both, make sure you know when to act as an owner and when to act as a manager. It can be done well when clarity prevails. If you do an honest assessment of your skills and expectations and find that you are not the best manager for the shop, or don’t want to be a manager, then hire or train someone to take your business to the next level. You may find that your skills and talents lie in other areas and this decision will free you up to be the best at something else.

SSGM