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The new formula for culture

As you prepare to move forward, it’s time to develop and measure the new shop culture required in today’s aftermarket.
Tuesday, April 1, 2014 - 07:00
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The average shop owner across the country has experienced a challenging couple of years, and the challenges are about to grow with the introduction of the connected car through telematics. But while many owners appear to carry on their business the best they know how, the bottom line for the effort put in just isn’t there. In fact, too many shop owners have bought themselves a job — they know it, but they lack the self-confidence to address the problem.

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The main reason for the lack of a bottom line is too many shop owners have not focused on the “core culture change” that is required to drive a proper return on investment (ROI). In order to enjoy a great ROI, the shop must have a great business net income after a professional owner/management wage has been paid and after the income tax on the profits of the shop have been factored in.

Consider that perhaps it is time to define the change required into a mathematical formula format. As everyone knows, math does not lie, but the formula must be understood and one must practice with it to master the outcome desired. Let’s be honest, the real enemy in achieving any business success is the self-discipline to execute, so a discipline of practicing over and over is very necessary.

To prove that you are capable of getting through the issues of your shop from a business management perspective, take some time by yourself and work through the formula. Analyze and answer the questions about your own operation using this formula format, with the letters in the formula representing the following definitions:


NP = CA + CS + RBM

         SLE (2)


NP - Net Profit

CA - Correct Attitude

CS - Competent Staff

RBM - Right Business Measurement

SLE (2) - Service Level Execution Squared

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