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Good to Great, INNOVATE

 
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Louis Altazan



Joined: 15 May 2007
Posts: 774
Location: Baton Rouge, LA

PostPosted: Tue Apr 22, 2008 7:39 pm    Post subject: Good to Great, INNOVATE Reply with quote

What sets a business apart [ahead] is often innovation. Innovation is listening to the market, identifying needs and bringing them to fruition. This is very different from asking a client what they would like. The truth is, a client cannot tell you they would like something that does not yet exist.

Often people argue this point. They cite a client saying they would like to see this or that. For instance a loaner vehicle or wireless internet in the waiting room. This is NOT innovation. These things exist and the client is merely telling you what they have seen elsewhere that they like. This is not to say such request should not be met when practical. What it means is, you are too little, too late. By the time a client ask for a service, it already exist, you are not innovating.

The exact thing holds true with watching competitors. You will always be behind the curve. Better is to innovate and let competitors watch you. To be a true innovator, a manager must listen to his clients and non-clients. Not only what they say, but what they don’t say. What are the things that make receiving your service difficult? Are there new and better way to address these problems?

This becomes most difficult when we suffer from “tunnel vision.” That is the thought that we are in the auto service business and we know what that means. In truth, people do not need auto service. They need reliable personal transportation. Get away from your business and your business area. Talk with people and listen. Allow yourself free time to simply sit and think.

It is said that great is the enemy of good. I think this is because good has much to fear from great. A shop may be very good, but can it be great? To know, I think we must move away from the present, past and begin to innovate.

What things might a business do?

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA
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Bud
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PostPosted: Wed Apr 23, 2008 7:59 pm    Post subject: The point hits harder with an example. Reply with quote

Oil filters and transmission filters.

Does anybody cut them open and show the customer what was inside his or her car's engine and transmission? Nobody around here does that.

If a shop tried doing that, it would be innovative, right? It then might or might not be a success, but how could you know without trying it.

What would you call a success with this experiment? Positive customer feedback, more sales? What else?

It only takes a simple tool and a small workplace to open filters. Anybody like this idea?

Another thought on this: How many techs on flat rate have kept ideas like this to themselves? You know, the fear of doing more work for no extra reward. As Louis mentioned in his recent post, poor management discourages creativity, often by the pay plans it puts in place.
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Dave



Joined: 19 May 2007
Posts: 206
Location: Camp Verde, AZ

PostPosted: Wed Apr 23, 2008 11:08 pm    Post subject: Reply with quote

Not sure how innovative these are, but here are a few things we do.

We have figured out that our clients want their vehicles to be dependable. So we built an inspection that gets preformed at every service (oil change). It is surprising how many people want to see the results of the inspection before they see the bill.

We list things on the invoice that will need to be performed at the next service. This way they can plan for it.

Educating clients on what we test and why, along with explaining the results to them. For instance when using the FASCAR strips to test brake fluid, explain what is actually being tested, what the results mean, and when the fluid is in need of being changed. When testing coolant why is it important to look at the PH as well for a 50/50 mix.

These things build trust. As far as measuring the results I would look at the number of referrals, the percentage of repeat clients, the average repair order size, and the number of people that toss you the keys and say "fix it, do what ever it needs”. I would expect the amount spent on advertising to drop also.

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David Wittmayer
Owner / Manager
Hansen Enterprises Fleet Repair, LLC
Camp Verde, AZ
www.hefrshop.com
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Louis Altazan



Joined: 15 May 2007
Posts: 774
Location: Baton Rouge, LA

PostPosted: Sun Apr 27, 2008 6:40 pm    Post subject: Re: The point hits harder with an example. Reply with quote

Bud wrote:
Oil filters and transmission filters.

Does anybody cut them open and show the customer what was inside his or her car's engine and transmission? Nobody around here does that.

If a shop tried doing that, it would be innovative, right? It then might or might not be a success, but how could you know without trying it.

What would you call a success with this experiment? Positive customer feedback, more sales? What else?

It only takes a simple tool and a small workplace to open filters. Anybody like this idea?

Another thought on this: How many techs on flat rate have kept ideas like this to themselves? You know, the fear of doing more work for no extra reward. As Louis mentioned in his recent post, poor management discourages creativity, often by the pay plans it puts in place.


Hi Bud,

These are good examples. What a client may want is a reason to trust and understand what the shop says. They might not ask for it, but providing evidence, in the form of "what's in the filter" is a good way to supply both. Thanks Bud, I appreciate the contribution.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA
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Louis Altazan



Joined: 15 May 2007
Posts: 774
Location: Baton Rouge, LA

PostPosted: Sun Apr 27, 2008 6:43 pm    Post subject: Reply with quote

Dave wrote:
Not sure how innovative these are, but here are a few things we do.

We have figured out that our clients want their vehicles to be dependable. So we built an inspection that gets preformed at every service (oil change). It is surprising how many people want to see the results of the inspection before they see the bill.

We list things on the invoice that will need to be performed at the next service. This way they can plan for it.

Educating clients on what we test and why, along with explaining the results to them. For instance when using the FASCAR strips to test brake fluid, explain what is actually being tested, what the results mean, and when the fluid is in need of being changed. When testing coolant why is it important to look at the PH as well for a 50/50 mix.

These things build trust. As far as measuring the results I would look at the number of referrals, the percentage of repeat clients, the average repair order size, and the number of people that toss you the keys and say "fix it, do what ever it needs”. I would expect the amount spent on advertising to drop also.


Hi Dave,

Many times inovation is not necessarily something new, just a new way it is applied, as you have done in preparing clients for upcoming needs. many shops may provide inspections at oil changes, but do they go the extra step as you have done? Very good tip, thanks Dave.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA
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Louis Altazan



Joined: 15 May 2007
Posts: 774
Location: Baton Rouge, LA

PostPosted: Sat May 03, 2008 7:50 am    Post subject: Re: The point hits harder with an example. Reply with quote

Hi Bud,

Bud wrote:
Oil filters and transmission filters.

Does anybody cut them open and show the customer what was inside his or her car's engine and transmission? Nobody around here does that.

If a shop tried doing that, it would be innovative, right? It then might or might not be a success, but how could you know without trying it.

What would you call a success with this experiment? Positive customer feedback, more sales? What else?


I missed these excellent points the first time through. I think generally success, is meeting the objective desired. This is very shallow however. Often a dismal failure (not meeting desired result) will produce outstanding results in an unexpected way.

To me, success must always be measured against the long-term aim of the company. Does it result in increased, continuing ethical profits.

Bud wrote:
It only takes a simple tool and a small workplace to open filters. Anybody like this idea?


Very much! A side benefit is that it can be worked into marketing. Most people might see how such an extra step could result in benefit to them, particularly when clearly explained. This is a side benefit of innovation, that often outweighs the original concept. Here’s an example from my site.

Bud wrote:
Another thought on this: How many techs on flat rate have kept ideas like this to themselves? You know, the fear of doing more work for no extra reward. As Louis mentioned in his recent post, poor management discourages creativity, often by the pay plans it puts in place.


If you reward a person to produce motion and punish them when they don't you will likely get motion, and a bit of resentment. Paying people to "fix cars and shut up" will not likely buy a great deal of creativity nor loyalty, outside of that pursuit. Thanks Bud

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA
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Bud
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PostPosted: Sun May 04, 2008 4:42 pm    Post subject: Reply with quote

Innovation. I was just thinking about all the different types of restaraunts in New Orleans. The choices of foods is fantastic, service is great everywhere, but no two places are identical.

Maybe we should take a fact-finding trip down there and get some new ideas for businesses?
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Louis Altazan



Joined: 15 May 2007
Posts: 774
Location: Baton Rouge, LA

PostPosted: Sun May 04, 2008 4:49 pm    Post subject: Reply with quote

Bud wrote:
Innovation. I was just thinking about all the different types of restaraunts in New Orleans. The choices of foods is fantastic, service is great everywhere, but no two places are identical.

Maybe we should take a fact-finding trip down there and get some new ideas for businesses?


Laughing You are always welcome, but you better make it soon. It was about 90' F today, with 90% humidity. Soon it's going to really start getting hot Laughing

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA
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Bud
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PostPosted: Thu May 08, 2008 8:54 pm    Post subject: Reply with quote

louis wrote:
Bud wrote:
Innovation. I was just thinking about all the different types of restaraunts in New Orleans. The choices of foods is fantastic, service is great everywhere, but no two places are identical.

Maybe we should take a fact-finding trip down there and get some new ideas for businesses?


Laughing You are always welcome, but you better make it soon. It was about 90' F today, with 90% humidity. Soon it's going to really start getting hot Laughing


That's not getting hot, it is already hot.
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Bud
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PostPosted: Thu May 08, 2008 8:58 pm    Post subject: Reply with quote

An easel.

If I own another shop we will have an artist's easel in the lobby, holding a big tablet of blank newspaper sized sheets, 18" by 24", and several different color markers.

Then we can draw examples of what is wrong with customers cars, in life size and full color, and give them the drawings to take back to their offices or homes.
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Hal



Joined: 19 Jun 2008
Posts: 2
Location: Kennett Square, PA, USA

PostPosted: Tue Aug 12, 2008 5:11 am    Post subject: Reply with quote

Hello everyone, first time posting here on this wonderful site.

I have begun doing a projected mileage interval report for our customers that wish to know What to Expect in the future.

Example : My bookkeeper moved to NC this week. Before she left I compiled a list of what she can expect as normal wear items.
Brakes were new at 44K, Expect to replace them somewhere between 75K-85K.

Timing belt at 105K, replace the waterpump, cam/crank seals and all idler tensioners at that time (along with a projected cost range)

The CRV has 46K on it now and I covered everything that I know of that has an expected wear rate.

Tires were new at 35K Expect them to need replacement by 70K.

I just began this project and offer it to customers that do wish to make their cars last.

Thought I would toss this out there as my innovative idea.

Thanks Louis for creating this site.

I will try to offer up more as time permits, our shop is the busiest it's ever been in 32 years.

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Hal Lewis
Owner
H & R Auto Service
Kennett Square, PA, USA
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Louis Altazan



Joined: 15 May 2007
Posts: 774
Location: Baton Rouge, LA

PostPosted: Tue Aug 12, 2008 7:10 pm    Post subject: Reply with quote

Hal wrote:
Hello everyone, first time posting here on this wonderful site.

I have begun doing a projected mileage interval report for our customers that wish to know What to Expect in the future.

Example : My bookkeeper moved to NC this week. Before she left I compiled a list of what she can expect as normal wear items.
Brakes were new at 44K, Expect to replace them somewhere between 75K-85K.

Timing belt at 105K, replace the waterpump, cam/crank seals and all idler tensioners at that time (along with a projected cost range)

The CRV has 46K on it now and I covered everything that I know of that has an expected wear rate.

Tires were new at 35K Expect them to need replacement by 70K.

I just began this project and offer it to customers that do wish to make their cars last.

Thought I would toss this out there as my innovative idea.

Thanks Louis for creating this site.

I will try to offer up more as time permits, our shop is the busiest it's ever been in 32 years.


Hi Hal,

Thanks for posting, I have always enjoyed your ideas and innovative ways. I agree, rather than watching the competition and trying to better them, a business that looks for things that do not yet exist, but are needed, will come out on top.

Watching the things people have trouble with and offering solutions is the best formula I have ever seen for success.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA
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