Movies provide a glimpse into the psyche of many Americans; while not always accurate, they do allow us to laugh, learn and poke fun at how we think.
The classic film “The Gumball Rally” holds a memorable line spoken by Franco, played by Raul Julia. As he hops into his Ferrari Daytona and rips the rearview mirror from the car, he exclaims, “Now, my friend, the first-a rule of Italian driving. What’s-a behind me is not important.”
While this cavalier approach might work in a cross-country road race, auto repair shop owners and service advisors know that success requires a more balanced view. As we inch up to the starting line of the coming year, it’s crucial to glance in our business rearview mirror, learning from our past performance while keeping our eyes firmly fixed on the road ahead. This strategic review will help us navigate the twists and turns of the auto repair industry, ensuring we’re not just along for the ride but leading the pack.
The rearview
“It’s in the rearview mirror” has taken on a number of meanings over the years, and one of them is that since what we are referring to is in the past, we can’t do anything about it. While we can’t do anything to change last year, we can use what we see in the mirror to make adjustments for the year to come.
“How did we do?” should be the first question, and “What can we do to improve?” should follow right behind that. Did we meet our goal for sales and new customers? How was our customer retention? Did our marketing efforts deliver the results we were looking for?
As owner, these are just a few of the wide array of questions you should ask as you review 2024. Failure to do so will bring the same results in the coming year. As our team works with clients who are shop owners like you, the goal is to ensure their growth continues year after year.
Reflection is a key to improving, no matter the business or discipline. Sports teams win or lose. Go over the game film to see what went right and what needs to be improved. Adopting the same strategy puts you in the driver’s seat for the coming year.
Be mindful to cheer when you hit the mark; many owners set themselves up for a challenge by only acknowledging what went wrong. Effectively leading your team is to strike a balance between praise and making suggestions for improvements.
Trending up, trending down
If we had a crystal ball we could easily see what is ahead. But, we can look at last year’s trends to determine what is ahead. Using EVs as an example, you can easily determine that while EVs are here for the near term, they won’t be in your bays in droves as predicted.
Over the past year, we’ve seen a steady decline in the production of EVs over gas and hybrid cars. As a shop owner, judging the future requires you to put your political or social ideologies aside and base your decision on facts. That’s the case whether it’s EV production or who is the leading manufacturer.
Additional trends to watch are the frequency of services, particularly the oil change. Longer service intervals require a different marketing strategy and exit scheduling. Client behavior will be different with the changing buying power of each generation. Your shop will need to adapt and you will need to make adjustments required by the preferences of each generation. Failure to identify early enough can leave you wanting. Reviewing trends will ensure you aren’t holding inventory, will never sell and will not be attractive enough to a particular group of individuals to be their shop of choice.
Be real, but not too real
WIG and BHAG are terms we use in our training sessions. Wildly Important Goals or Big Hairy Audacious Goals become synonymous with successful enterprises. Using WIGs and BHAGs is huge when it comes to growing your shop.
WIGs are a vital concept in strategic planning and execution, developed as part of the 4 Disciplines of Execution framework. Highly successful organizations use them to assist team dynamics. A WIG is a goal so critical to an organization or project that failure to achieve it would make other achievements inconsequential.
Some WIGs include goals that are:
Straightforward, specific and measurable;
Critical to the success of the organization or project;
Require special attention and focus;
Drive all other goals.
BHAGs, on the other hand, focus on your shop’s longer-term strategy. Usually a BHAG is set for three to five years – consider it to be a part of the vison of the shop. An example of this would be to grow from one to three locations in five years.
Goals are essential to continued growth, stability, and profitability. Review the past and set the next year’s goals; monitor and adjust as needed as you progress through the next year. Use your WIGS and BHAGS to propel you forward.
Teamwork
Setting and managing your expectations for all of your employees is critical to achievement and improvement. Consider yourself not just a manager but a coach of your team. You are about to lead them into the big game, so prepare your speech to inspire and guide them. What instructions will you give them concerning their roles? Having measurable goals, including hours produced, car count, efficiency and comebacks, will unite the team as long as you support and acknowledge their achievements.
Early in my journey as a leader and owner, I didn’t fully understand the importance of being the leader of my team. My approach was one where compliments were scarce, even though they cost nothing, but I showed gratitude through words and actions.
Looking back at the past year, ask yourself, where did I excel as a leader, and where can I improve in the coming year? Surround yourself with good leaders, absorb their wisdom and read about leadership development. Remember, practice makes perfect. Each day, strive to improve by just 1%. Over time, this consistent effort will transform you into a more decisive leader, benefiting your team and your business. By becoming a better leader, you’ll also increase your chances of retaining top employees and customers.
The rearview is there to see where you’ve been and chart the next stage. While you don’t want to be laser-focused on where you’ve been, it will provide an effective measure to empower your decision-making in the days and months ahead. Just like driving a car, most of your focus is on what is in front of you, with the occasional glimpse behind. May your coming year be profitable and growth-filled!