Service department book clubs yield process improvements, profitability

The book’s message improved operations. Millican cited one service adviser’s average repair order for customer-pay work, which jumped 23 percent in one quarter to $166.38 — well above his objective of $150.

“All the team leaders saw similar improvements in their metrics after implementing concepts from the book,” Millican said. “And we went from handling around two upset customers per day to about one per week.”

What made the difference? Decentralized command. Before, team leaders were overwhelmed trying to handle everything and not delegating duties and decisions. That robbed them of time to — as Millican put it — inspect what they expect.

In other words, if leaders set expectations for employees, things won’t improve unless leaders can ensure those expectations are met. And by giving team members more ownership and autonomy, the three service advisers gain more time for not only employee coaching, but for more thoroughly advising customers about what their vehicles need, he said.

“It was cool because as the team leaders got a good grasp on things, they passed along the lessons to their team members,” Millican reported. “And all of a sudden, the whole group is making decisions and being successful and working together.

“When you own an experience, you have the authority to change that experience,” he added. “You take on more responsibility, but you also feel more empowered. It’s very impressive to see.”