How Effective Are Your Goals?
When it comes to goal setting, what are some trends among quick lube operators for doing so? Scott Wheeler, President of Automotive Consultants Group, wanted to find out for himself, calling some shops around the Kansas City area to ask five simple questions:
- Do you use any form of goal-setting?
- What metrics or numbers do you track?
- Is the staff aware of these goals?
- Do you compensate for goal achievement?
- How have your goals been impacted by COVID-19?
Here’s what Wheeler found.
House of Lube in Gladstone, Mo.
This family-owned-and-operated business has been around for 40 years, but Bob George just became the second-generation owner five years ago. For their goal setting, George targets gross sales and tries to hit at least 50 units per month. In order for his staff to help him achieve this goal, George has posted signs all around the shop on what their goal is and how far away they are from hitting that goal, and incentivizes the staff for meeting these goals. Once the shop hits these numbers, George pays out his staff bonuses and pays out bonuses each and every time these numbers are met.
When it comes to the pandemic, the shop did see a significant downturn in March, but they’ve rebounded quite well, with the shop becoming extremely busy as the state opens up.
Valvoline Instant Oil Change in Kansas City
For the past 1.5 years, Andrew DeBey has been the service center manager at this Valvoline location. Just like George, DeBey says the franchise location focuses on gross sales and hitting a certain amount of units per week. However, the company looks to increase their units per week by 1.5 each year after; for example, if the company achieved 30 units per week last year, this year they are looking to get 31.5 units.
The company also tracks ARO, daily car count, and the non-oil change revenues made, such as profits made from installing wiper blades, transmission repairs, and more.
In order to meet the company’s goals, all of the numbers are posted in two different places within the building where the staff can easily see. And once the team reaches their goal, bonuses are paid out to employees based on each individual’s position within the company.
Just like George, the shop saw business slow down significantly in March, but the shop is now back up to speed and is busier than ever.