Coming to terms with our default future

Sept. 4, 2014
Our industry’s default future is what is likely to happen if nothing unexpected comes along. Do you think what our industry will look like in the future is an appealing picture?

Dr. Dave Logan defines a default future as, “What’s likely to happen if nothing unexpected comes along. Every group, family, division, organization, company and person has a default future. The default future lives at the gut level, is rarely discussed, and so is invisible. It determines our actions.” How would you describe the default future of the collision repair industry? At your gut level, what do you think it will look like in five, 10 or 20 years? Is it an appealing picture? If you had a child coming of age to enter the business world, would you recommend the collision repair industry, considering what you believe the default future looks like?

Those questions were asked at the 2014 VeriFacts Symposium. Visionary Farzam Afshar, chief executive officer of VeriFacts Automotive, LLC, arranged Logan as a facilitator and Master of Ceremonies. Repairers, OE manufacturer representatives and insurers, among others, were invited to attend.

Many attendees had concerns over what our default future may look like. Some possible outcomes suggested included:

  • fewer young people attracted to the industry
  • narrowing margins
  • claims frequency decrease and decline in repair dollars
  • poor self-policing of repairers
  • legislation/regulation mandating repair standards
  • repairers anticipating reprisals
  • increase in inaccurate/unsafe repairs
  • greater Llkelihood of injuries and fatalities
  • increase in liability
  • parts selection more volatile, inaccurate and unsafe
  • rapid growth of underground sub-culture of sub-standard repairs
  • strained relationships between OEMs and insurers
  • fewer insurance companies and elimination of adjusters
  • higher premiums and increase in uninsured motorists
  • decrease in premium dollars for insurer investment
  • insurer layoffs

Obviously there is source for concern. Logan suggested that if we don’t like the default future, could we invent a future that is more appealing? What would it look like? Descriptive terms and an overall description came from attendee break out groups. Some are as follows:

Integrity, Environmentally Responsible, Predictable Outcome, Required Standards, Trust, Safety, Education, Open source, Post/Secondary Education, Technology, Mutual commitment to excellence, Transparency, Certification, Measurable Results

A thriving industry of Vehicle Manufacturers, Collision Repairers, Insurers and industry stakeholders harmoniously collaborating in a profitable relationship where authenticity, integrity, transparency and mutual-respect are regarded as their highest values, all in service of the consumer for pre-loss and safe repairs while being environmentally responsible.

This is of course all good and noble. It causes one to ask if this is possible. Or are such dreams too lofty? Does it cause you to believe as a mere mortal playing a small role in our large industry that you could influence such significant change? Farzam directed our discussions further than I have ever experienced in an industry meeting. I’ve attended others that can be inspiring and motivating. Usually they were followed by a dose of reality when returning to the shop and such lofty aspirations become secondary to the immediate needs of the day, not to mention the intimidation of the complexity and extent of the frictions within our industry. Farzam asked for break-out groups to develop ideas and plans to change the industry. He asked if attendees would be willing to make a commitment.

Many did, through signing an oath that states, “We are repairers, insurers and vehicle manufacturers who hereby declare the possibility of aligning our industry to a common vision, which puts the consumer first. We stand for sweeping innovation. We commit to transparent customer focused solutions.

We are accountable to invent a radical new future where safety, efficiency and a cost-effective process are our guiding principles.”

Farzam is following through with this effort. A number of people, including insurers, OE Manufacturer representatives, repairers, and more, are participating in regular calls and are starting to work on pilot projects. I personally find this effort a magnificent step towards harmoniously driving positive change with the intent of creating a positive invented future. Do you believe, as does Farzam, that it is possible? Personally, I am inclined to think so. I do know that if we continue to do as we are, a default future will be the result. We can do better.

If you wish to learn more contact Linda Reichart @ 949-630-0435 or [email protected]

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