You spend your days diagnosing vehicles, but did you know you should also be applying that diagnostic mindset to your shop? That was the topic of conversation in a recent episode of The Digital Shop® Talk Radio where the expert panel of experts, Bill Connor, Tom Dorsey, and Uwe Kleinschmidt, took a deep dive into the business control panel (BCP).
“If you’re working on a vehicle in your shop that had a performance problem, you’d use some data to go in and understand what’s going on,” Bill said. “If you want to get some extra output out of that vehicle, you’re going to look at certain data points on a vehicle. But in our case, we’re going to be looking at KPIs (key performance indicators) on the business control panel (BCP) to diagnose your shop.”
With that diagnostic mindset in place, you can assess how your shop is doing and where you need to improve using the BCP. In short, Bill believes that your shop performance can be broken down into key input KPIs and output KPIs. Essentially, it’s all about driving revenue (output) and ARO (output) by looking at a handful of inputs. When you improve the inputs, the outputs should also increase.
Here are the KPIs that Bill believes you should look at when evaluating your shop:
If you’re new to using the BCP or getting back on track, there are a couple of things that Bill thinks you should focus on when looking at your KPIs.
The major KPIs listed above cover a lot of the day-to-day workings of your shop, but Bill has a few lesser-known BCP metrics that he knows help shops “find opportunities for improvement.”
Another tool to use when it comes to the BCP is logic, says Bill.
This is especially true with specific KPIs, including the average research time by motorists per inspection (MRT) and the average number of pictures.
For the MRT, Bill suggests that you use an average of one minute per recommendation to gauge how your shop is doing.
“If I’ve got 8.6 recommendations, I know that if the customer was in the shop and they walked out to the car, for the technician to take their finger, point at it, tell them what it is, what needs to be done, and the reason they should buy today, at most shops that takes an average of one minute per inspection,” Bill told Tom and Uwe. “So, if I’ve got 8.6, I multiply it by 60 seconds, and then I know if the MRT is in the proper area.”
The more inspections, the higher the MRT.
Tom added, “When it comes to KPIs, don’t just have a number in mind that sounds good. It has to be specific to your operation.”
The average number of pictures KPI is also highly logical.
“If you’ve got 15 recommendations and your average picture count is 10, you’ve missed the ball somewhere,” Bill said.
Now that you have looked at your BCP, how do you improve upon what you’re seeing?
According to the expert panel of experts, there are five things to get the ball rolling - and keep it going!
“Every time you cross the goal line, I’m going to go and move the goalposts,” Bill told listeners of The Digital Shop® Talk Radio. “A lot of people say, ‘Where is my shop number compared to another shop?’ and in my eyes, I really don’t care because what I want to do is I want you to learn how to squeeze the maximal peak level performance out of your own particular shop database, employees, customer base, and so on. I like to go in and set these goals and keep moving them forward. My goal isn’t to go ahead and see everything on the screen here in green. My goal is to go ahead and keep moving the goals upwards until we can’t go and get anything else out of your shop. And then, if you don’t add a new bay or change your pricing model, then it’s your job to hold them there after you find your peak level of performance.”