In a previous column, I shared a few reasons I see collision repairers benefiting from bringing in an outside consultant. But given the time and expense you will invest in working with a consultant, you want to make sure you choose the right one. Here’s my advice for doing just that.
Build a list of candidates. Chances are, you can probably name at least one or two collision industry consultants. But check with your paint company or trade association for the names of others. Contact other successful collision repair businesses to ask if they have worked with a consultant.
Check their credentials. A good consultant can point you to other collision repair businesses they have helped. (You don’t want a new consultant “practicing” on your business.) Ask those shops about their experience. Did the consultant listen to their needs? Was he or she responsive and helpful? What were the most instrumental things the consultant did for their business?
Ask them about each other. During your preliminary interaction with the consultants you are considering, ask them about the others on your list. At a minimum, you want to make sure the person you are choosing is known and respected by their colleagues.
Look for broad perspective. In a previous column, I said one of the key benefits a consultant can bring is knowledge gained from working with other collision repair businesses as well as other industry segments. Ask about their experience working with independent shops as well as dealerships, multi-shop operations, perhaps even fleet companies. Do they have contacts and interactions with automakers and insurance companies? If a consultant doesn’t have a broad portfolio of expertise, you should say, “Next.”
Seek out a good listener. Especially early on in your interactions, a good consultant will do far more listening than speaking. Look for the 80-20 rule (listening 80% percent of the time, speaking only 20%). They should ask lots of questions. They should want to speak with ALL of your employees, because you as a shop owner or manager are only going to offer one view. A good consultant knows that employees know a lot about the business that management may not.
Look for expertise in collision industry numbers. Not even the best consultant will be able to help you much if they aren’t knowledgeable about this industry’s primary financial metrics and key performance indicators (KPIs). Even if you work with an outside accounting firm, a good consultant will drill down into your financial statement, dissecting your chart of accounts and making sure everything is being put into the right “buckets,” so it’s clear where your real profits and losses are, where your business is or isn’t performing as well as it should. Building an accurate “dashboard” of your current financial position and other KPIs may be the first and most valuable project a consultant steeped in body shop financials can help you accomplish.
Ask about their technical expertise. A good consultant will take a holistic approach, spending as much time (at least initially) back in the production area of your shop as in the office. I see so many businesses falling behind right now because of rapidly changing vehicle technology and increasingly complex repair methodologies. You want a consultant who can walk the shop floor and identify technical errors that could be costing your business and adding to your liability. You want a consultant who can see what you’re lacking in terms of the tools and equipment necessary for today’s collision repair work.
Look for someone who is responsive to your needs. Often when a shop first calls me, they report a business “symptom” they are experiencing, but may not be sure of the cause. As we dig into it, we may find other, perhaps more important fixes the business needs that may or may not address that initial symptom. I always suggest to shops that they be clear upfront with any consultant about what they really want to do and fix. A good consultant can and should point to other things they believe you should address. But no one wins if you don’t communicate that those aren’t things you’re willing to do and fix, and that means months later you’ve made no progress.
Next time: More on working successfully with a consultant.
