Dakota Supply Group - Index

Dakota Supply Group - dakotasupplygroup - Index

MECHANICAL 22
continued from page 21
Absolutely. Joe’s the top man, making the most
money. The company “needs” him, and Joe
knows it.
Unfortunately, it is not all Joe’s fault. The
basic problem is not Joe. The problem lies with
management. If management has not set specific
productivity and profitability goals for each and
every service technician, the goal becomes whatever
the senior tech thinks it should be, consciously or
unconsciously. If you want to see productivity
and profitability soar, then start putting some
specific goals in place for each tech and hold them
accountable for those goals. What goals are we
talking about? Well, let me list a few as examples,
with some specific industry standards to shoot
for. These standards are called KPIs (Key
Performance Indicators).
• Daily goals, in dollars, based on the tech’s
current ability (set specific goals and measure
each tech’s performance against their goal).
• Percentage of callbacks (should not exceed
2.75% of their calls).
• Collection percentage for residential service
calls (should collect 100% of the time).
• Generation of qualified sales leads. (Qualified
sales leads should be generated on 12%
of all calls and jump to 33% of all calls on
old equipment).
• Completion ratio (95% of the time the
tech should complete the job…the first time,
without having to return).
• Under-billing should not occur (the average
tech under-bills the customer for work that was
actually performed by $10 to $30/hour).
• Additional revenue generated while
performing a maintenance call (the Key
Performance Indicator should be to bring in
an additional $40/hour while performing
maintenance calls in the form of additional
repairs and/or add-on sales).
Plus, there are even more Key Performance
Indicators. You can contact me for a free list of the
other Key Performance Indicators by visiting my
web site, grandyassociates.com.
When management begins to set specific
performance goals for each technician, and
holds them accountable to those goals, some
amazing things begin to happen. Guess who is
www.dakotasupplygroup.com
NOW running the service department? Right –
management is, not your most senior technician.
When specific goals are set, and the technician
is measured against those goals, some wonderful
things begin to happen. Performance goes up,
technicians earn higher bonuses (based on real,
accurately measured performance) and the
overall profit in the service department skyrockets.
If you don’t believe me, set some goals and see
what happens.
Now let’s finish this up by talking about Joe for a
minute. When management begins to set specific
goals, and begins to measure the technicians
productively against those goals, what do you
suppose will happen to our friend Joe? Well,
first of all, Joe will no longer set the standard of
performance for the other service techs. Secondly,
the Joes of this world often get upset and rebel.
Why? They are now backed into a corner where
their REAL productivity comes to light, and it’s
often not very good! Do not be surprised if Joe
leaves. Oh, by the way, don’t feel badly if he does
leave. You are not losing your top tech – you are
removing the stumbling block to real productivity
and profitability in your service department!