Hey, good morning, everybody. I hope you're crushing life today. And if you're not, then challenge you to get out rising grind and get it done. Coach Chris cotton here from AutoFix auto shop coaching. We, work hard to support you in both your auto repair shop success and your personal success. As we get into today's episode, I know you know, someone in your network who can benefit from today's topic.
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Let's get started with the episode 66 scorecard for success. So if you've read the book, traction and or EOS, this will probably sound familiar. , I've been doing what I call scorecards for success for several years. To know that I could associate it with something from traction or EOS or, or have somebody else read it.
It's something that I always thought that, that I did. , and if you remember, I did, a podcast series on rocket fuel, and when I did several of my clients listened to it, and then they kind of got me back into, doing scorecards, but doing a little bit different. Right. So it's been more recently where I've been able to take the teaching from both from those books and refine the process.
I wanna take a minute to thank Michael Gini of your auto shop in Plano, Texas for circling me back to this. And what we did is we refined the process and came up with five categories, for his shop, and then we're doing it again for several other shops. so again, I really, want to thank him for helping me refine the scorecard for our industry and really getting me back into this again.
So what is a scorecard for success? many auto pair shop owners make the mistake of thinking they already have a scorecard because they track what's happened in their business in the last week, month or year. , the problem is tracking what's happened. That isn't what a scorecard does. A scorecard tells us what's happening and gives a bit of insight into what will happen moving forward.
it's more recent, right? Like recent data as it happens. So the problem with data from the past is data that tells you what has happened. Isn't necessarily a bad thing, right? In fact, no company can really operate without that kind of data. The real problem is that past data can't show you what is happening in your business right now.
so let's think of it in terms of being too far in the past. If you don't know what's happening now, you can't know what will happen at the end of the week, month or quarter. this type of data is reflective data, and it's totally necessary to know how the company has done a scorecard for success is predictive data, and it tells you how you will do the best analogy is a scoreboard at a football game.
r from over, just by looking [:
The visitors could easily force a turnover over, with luck. They could have this game. That's the power of predictive. So the reflective data told us what happened. Sure. But the predictive data gave us the information we needed to make an educated guess about the future. So how to build a scorecard that helps you predict, a scorecard for success is your business' version of that predictive data. And it tells you exactly what is happening in your organization at the moment and gives you the power to be proactive. so in the rest of this one, we're gonna talk about building the scorecard more than anything else.
building the scorecard. Not super easy, but it's not really that difficult. typically nobody gets it right on their first try. Okay. the first step in beginning is to begin, right? Like anything in life. you just have to start, building a scorecard with nothing to guide you, it will get you nothing.
Step number two, identify five scorecard categories and a maximum of three individual scorecards. Okay. Typically, this is the hardest part you and or your leadership team need to identify the numbers that give them an indication of how the business is doing this week. Imagine you went on vacation and asked the team to send you five numbers as a way to update you on how things were going.
what numbers would they send you? So we have to have a direction in order to do that back when I had my shop, we called this a flash report. Just if I was on vacation, I'd call in. They'd gimme the numbers that I was most interested in. I'd check-in and then you'd go from there. But what I want you to realize is these categories are unique to each business.
And so there's no way to tell you exactly what they are. for an auto repair shop, they typically include things like average repair order, average estimate, gross profit for the sales, and service staff. And if you look at something like the productivity staff, could be labor hours per repair, water productivity, things like that.
I want you to have metrics for each division in your business, one for the sales and service staff, one for the production team, and so forth. , what other areas of your business can you get that third? I would try to keep it to three or fewer departments and maybe you have one for sales and service, one for the production team, and then one for the overall shop with those two combined.
So I'm gonna, I'm gonna stop for just a second and click over to one of my client's scorecards, just to give you an idea. so it's set up on a weekly basis. So you've got week one, week, two week, three, week four, and sometimes into week five. the one for this one, this is their master one. So this is the overall part.
ge or pay order for this one [:
total labor dollars is 20,000 a week. there on the west coast, they have, high labor costs. So we have to be at 20,000 or above in labor, in order to, pay the bills. So that's again, pass or fail. Our labor hours per repair order is 2.25. Profit dollars. It's either we made a profit or we didn't make a profit.
they're not trying to make a certain amount. They just wanna make sure that they're profitable. So for now we're tracking this and they've got one more category. So their tech productivity is 85% or better. And again, yes, no pass-fail. And this is their scorecard for success. This is the one that they look at every week to know if they made it or if they didn't, And if you have questions about it or what it looks like, I'm gonna try to do a video and put it out as a blog post.
And that way I can show it to you, uh, live or real time, and then you can get a visual idea as well. so be looking for that. I haven't done it yet. Whenever I get that, we'll come back and maybe put it in the show notes or in the notes on YouTube so that we can have that. So if we get back to the, scorecard for success, And I kind of already went over this, but we'll go into it in detail.
Step three, put a weekly goal on each category. So create a goal for each category that is specific, measurable, and realistic. Just like we did for what we talked about. If your categories car count, how many cars do you need to have each week to keep your revenue where you want it? Make sure you think about that.
Make sure you talk about it. step four. We want to assign each goal to a department and the team members in that department, each goal should fall under a department and individual members. If they aren't responsible for it and aren't held accountable for it, then those numbers will never be accomplished.
a scorecard, keep, you wanna [:
All of these things should be easily retrievable from your point of sale system. have a rotation for the members, the more your employees learn about the business of the business, the more they'll feel a part of what's going on and therefore take ownership of the business. Okay.
step six, use the scorecard each week. a scorecard hiding on somebody's desk. Isn't any good for your business? You have to bring that scorecard to every weekly meeting. Talk about it. When people hit their numbers, congratulate them, and people in departments when they don't figure out why and figure out a way for them to succeed.
this is, I caught you doing something, right. This is not, I'm punishing you for doing something wrong. We need to figure out what we did, what we did. Good. And then what we're so good at, and then figure out a way to fix it. I don't want you to get these two steps confused.
That was step six, use the scorecard each week and step fit seven is to review the scorecard. So creating a scorecard is a marathon, not a sprint, right? Your team needs to regularly review it until they've got a scorecard that works one that works for them. One that works for the business. In the first few weeks, your scorecard might have a lot of changes.
It's gonna have more no's than yeses. That's fine. one of my coaches told me, Chris, if you track it and measure it, you can fix it. And if you go from not tracking and measuring anything to starting to track and measure, it's gonna be a little, you know, wonky for lack of a better term to begin with, but you've gotta start in order to continue and move it along.
again, so your scorecard's gonna have a lot of changes. That's fine. The longer you have it, the more stable it should become, and changing your scorecard every week for years accomplishes nothing. I would say if you want to tweak it at the end of the month, fine review it pretty hard quarterly.
after you do that for two quarters, you should be set and ready to go. Okay. I hope this helps make Sure. You watch slash listen for. That blog post coming out where I do this visually. So you can see it. this has been coach Chris cotton from auto-fix auto shop coaching. If you find yourself struggling in your auto repair business or have a feeling like you don't know what you don't know, but you're eager to learn and grow your business, then please feel free to reach out to me, Chris, at auto-fix sos.com or gimme a call 9 4 0 401 0 0 rate time to get out and rise and grind.