Don’t throw stones

June 22, 2014
Mike Anderson threw a lot of stones, literally, as a child — one even knocked his own father out. But as an adult, Mike has thrown a lot of stones as well.
PUERTO RICO — Mike Anderson threw a lot of stones, literally, as a child — one even knocked his own father out. But as an adult, Mike has thrown a lot of stones as well.

“I threw a lot of rocks. I judged people who did not run their business the way I did,” says Anderson, with CollisionAdvice.com at the 2014 CARSTAR National Conference in Puerto Rico. So engrained in the industry, Anderson traveled the country to train, consult, run 20 groups and more for 341 days — last year alone.

“As an industry, we throw a lot of stones. I’ve learned you can’t judge by whether a shop is a DRP or not. You can’t judge by whether a shop is part of an MSO or an independent. You can’t judge a shop by whether they use aftermarket parts or not. You need to judge by safety and quality,” he says.

Anyone who has seen Anderson speak would understand the crowd’s reaction — a resounding, “Amen!”

Anderson correlates unsafe shop repairs to the 2003 explosion of the space shuttle Columbia that killed seven astronauts. The shuttle explosion, caused by an O-ring failure, was blamed on NASA’s “broken safety culture” — an attitude often found in collision repair at shops who focus more on KPIs than proper repairs.

Safety should always trump launch data, cycle time, budget and severity, Anderson says. “We should always focus on service, speed and accuracy.”

To provide service, keep your customers informed. Communicate and follow up after repairs. “Are you doing this? The other MSOs are,” Anderson says.

Maintain speed by fixing cars fast. But keep in mind that fast does not mean providing poor repairs. Make sure your management operations are effective, as administrative delays impact process speed. Technology can also boost speed — texting customers rather than calling is one simple, and current, way to save time.

Focus on eliminating supplements and meeting your promised delivery date to ensure shop accuracy.

3C focus
CARSTAR stresses the importance of the 3 Cs — closing ratio, CSI and cycle time. To boost closing ratios, one suggestion from Anderson is following sales scripts. Utilize the resources of a large MSO to boost numbers.

To improve CSI, follow up after repairs, and turn your mistakes into lessons for the rest of your organization.

Cycle time needs constant review — some MSOs discuss their cycle time daily. You need to be paying this much attention to ensure consistentcy and improvement.

Team effort
MSOs can leverage their size by tapping into their shops’ performance and experiences to develop best practices. Use technology to exchange experiences, build a call center and centralize the posting of parts invoicing. Review and audit estimates. Do sales training.

“By working together, you can change the world,” Anderson says. “Play to win, not to lose. Second place is just the first loser.”

Anderson describes CARSTAR as its franchisees’ wingman. “You have people there to look out for your best interest and check your blind spot. If you don’t start trusting your wingman, your business will die,” he says. “Actions speak louder than words

Anderson relayed a quote from Senior Airman Chase Connolly 757 AMXS on the wingman concept as it is implemented in the Air Force: “The wingman situation fosters an environment of collaboration and accountability. It helps us head off bad decisions by catching mistakes early, so we can take the best course of action.”

Personal responsibility
If an MSO is the wingman, what is the role of the individual shop in the organization? “You need to accept personal responsibility. They say you can lead a horse to water, but you can’t make it drink. My dad would say,  “put salt in its food and make it thirsty.”

“If you are thinking, ‘I’ll try; I might,’ you’ve lost. You’ve got to think, ‘I will!’” Anderson says. “What do you choose to be, the wind or the flag? The wind directs the flag, and the flag stay dormant when the wind is not blowing.”

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