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Great Service Managers Follow a 4C Approach

By Herb Mast

(Published in Dealer Magazine – January 2019)

 

 

Every time I ask Service Managers about the 4thC I get a blank stare.

All Service Managers know about the 3 “C”s: Concern, Cause, and Correction. But none seem to know what the 4thC is. Why is that?

The answer is actually quite simple. The 4thC is not part of the original formula and did not exist until I had an epiphany while working with a client and gave life to the 4thC. You see, this particular client wanted to increase their customer experience and after much discussion we came to the realization that the 3C approach does not go far enough.

It seems that the 3 “C”s originated with manufacturers and warranty administrators as a way to hold service departments more accountable for warranty billings. By requiring repair orders to detail certain minimum and consistent information manufacturers were better able to validate the legitimacy of warranty claims. And, since each of these validation items begins with C, the alliteration of the 3 Cs was born.

In other words, in order for dealers to be paid for warranty claims, the technician’s story on every repair order must detail the concernunderlying the claim, how the technician diagnosed the situation to discover the root cause of the concern, and what the technician did to correct the concern

This makes total sense for warranty claims, but how the 3 Cs became the industry standard for customer-pay repair orders behooves me. The reality is that the 3 Cs fall woefully short when it comes to customer-pay. Kudos to those few dealers, the truly customer-centric ones, who figured it out on their own as they simply sought to provide a high level of service to their customers. Unfortunately, most service consultants still haven’t caught on and still only teach the 3 C approach.

I contend that stores who don’t go beyond the 3 Cs are delivering inferior quality, have higher incidences of repeat repairs, provide a lesser customer experience, get lower CSI scores, and reap lower customer retention as a result. 

The good news is that with a simple epiphany and a small paradigm shift every dealer can adopt the 4C approach to provide higher quality repairs, experience fewer comebacks, and deliver better customer experiences while reaping higher CSI and retention. 

The Epiphany: Customers Don’t Care about Cause and Correction

The old axiom holds true that perception is reality. 

So, when customers arrive in your service drive, their issue is usually a combination of reality and perception together with a dose of emotion. They are not thinking in terms of the 3 Cs. Hence, they don’t really care how their concernis diagnosed, nor the corrective action that is recommended/ taken. In other words, they simply want you to make their issue go away—provided it does not result in higher than necessary cost and inconvenience. 

Since most dealers are myopic, transactional, and rationally focused they dive right into problem solving mode and often don’t fully listen to the customer’s concern, thereby missing many of the subtle, but important, emotional cues. 

For those that have read some of my other articles you know that research has found that emotions/feelings have three times more impact on people’s choices and behaviors as compared to rational and logical factors—for a refresher on the greater impact of the emotional brain refer to my article Research Reveals Up-Caring to Be 3x More Effective Than Up-Selling at HealthyDEALER.com.

A customer concernis more times than not emotionally based, like the irritation of a rattle, vibration, squeak, or warning light, which is usually associated with a rational element, like metal-on-metal brakes, over-heating engine, or A/C not blowing cold, etc. 

A disconnect often exists because service advisers, managers, and technicians tend to think rationally (diagnosis and correction) while customers, who don’t understand what is done behind the curtain, tend to think emotionally. That is why Fix-it-Right-The-First-Time and No-Problem-Found are such a big deal to customers—neither solves their concernand only add to their emotional discomfort.

Customers are only interested in having their concernresolved while minimizing cost and discomfort. Typically they don’t care about all the words that are written about causeand correction—not only are those parts of the story often written poorly, but in such a way that you have to be a technician to be able to understand what is being said. 

Truth be known, customers view the second and third C, causeand correction, merely as the dealer’s justification for the amount charged. Therefor it’s important to add a 4thC.

Trails of Evidence and the 4thC

The 4thC is confirmation.

Ronald Reagan was known to say trust but verify. The benefit of verifying is that it reduces the reliance on trust, which is helpful when trust is already in short supply, like it can be in our industry.

Think about it. How does the customer know that the work was actually done? Sure they can see when new tires have been installed, but how do they know that their oil was actually changed, especially if a new oil change sticker was not applied. Further, I have heard of many technicians who were fired for claiming work they didn’t actually do. Every now and then they are caught, and even featured on shows like 2020, reinforcing customer skepticism and distrust.

For this reason a Texas service manager shared with me that he instructs his technicians to leave “trails of evidence.” For example, when it comes to an oil change his technicians wipe away the dirt around the oil fill cap, whether they spilled oil or not. If there’s ever a question as to whether the work was actually done, like when a new oil change sticker is not applied, the adviser can pop the hood and show the cleanly wiped area around the oil fill cap. It is not foolproof, but it shows that the technician was there and it is usually sufficient to nip a customer’s skepticism in the bud. Either way, the intentionality of a trails of evidenceapproach increases a customer’s sense of quality and confidence and eliminates any sense of distrust that might otherwise arise.

Another service manager told me that his technicians always do a final hand torqueing of all four wheels whenever wheels are removed. This practice virtually eliminates incidences of wheels falling off and again increases a sense of quality and confidence, while enhancing customer experience.

Intentionality with the 4thC

Great service departments not only leave trails of evidencewith all of their repairs and maintenance work, but expand their repair order stories to include words of confirmationthat directly address the customer’s concern. Further, great service departments ensure that the rest of the repair order communicates a consistent message—if the story says the vehicle was test driven the in/out mileage reflects how far and vice versa.

I estimate that repair orders in 50% of service departments show the same in/out mileage regardless of what work was done to the vehicle. This is one of the simplest confirmations of a test drive, yet many service departments demonstrate laziness and arrogance (suggesting that customers will come back regardless of what is done) when they don’t take the time to follow through on this simple element.

A best practice is that service advisers write customer concernsin the customer’s own words. This not only avoids pre-diagnostic errors, but increases the chances that the emotional aspects of their concernare also captured and conveyed to the technician. 

Another best practice is for the adviser and/or technician to add a few easy to understand words of confirmationthat specifically address the initial concern.

For example, if a customer states, “the driver’s side window goes down slowly and makes a clicking sound,” the repair order needs to go beyond normal causeand correctionstatements, like “The power window motor was faulty and replaced,” and say something, like, “The power window motor was faulty so it was replaced. The window now goes up and down with ease and without a clicking sound.” 

I realize this sounds so basic and obvious, but I estimate that repair orders in 90%+ of dealerships stop at the 3rdC and neglect the critical 4thC.

A 4C Approach leads to the all-important 5thC

Without the 4thC it is difficult to get to the 5thC, which is confidence.Confidence is a feeling. In fact, since feelings drive behaviors, it is a critical feeling when it comes to customers choosing whether or not to come back in future and whether or not to advocate in a positive manner for the dealership. In other words, confidence leading to retention and advocacy should be the ultimate objective of everything that is done—it is incumbent therefor on service managers to help their advisers and technicians understand the importance of adopting a 4C approach. 

Herb Mast is a Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.

HERBISM #60 – Great Leaders Plug Into The Power Of The Other

The best way to understand the power of the other is to think of how computers work by combining hardware, software, and developers (the people who write the software).

Our brain is the hardware and our mind the software. At birth our hardware is essentially in place, but our software needs development to reach its potential.  Over time, and through the relationships we allow and embrace, our mind is developed—good connections expand our mind, while bad relationships and artificial connections (like computer viruses) stunts its development. 

In his book The Power of the OtherHenry Cloud does a masterful job of explaining how the brain works and why good and positive relationships are critical to the development of the mind so that people can achieve more of their potential.

Cloud explains that most of us experience disconnection at different times in our lives. Since our brains crave connection we pursue connection wherever it can be found, even if it is not ultimately good for us. We even choose artificial connections, like what drugs, alcohol, and any other self-medicating behavior provides. 

The challenge with good connections is that they can only be found on the other side of the door of vulnerability, a door most egos are reluctant to open.Great leaders ensure that the culture of their organization is healthy and positive so that their people are able to reach and operate at their full potential, which in turn allows the organization to operate at a higher level.

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Herb Mast a is Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.

HERBISM #59 – Great Leaders Are Multipliers Not Diminishers

Why do some leaders achieve better results than others?

We’ve all had experience with two dramatically different types of leaders – Liz Wiseman, former Oracle Executive and author of Multipliers, describes them, as follows:

  • The first type drain intelligence, energy, and capability from the ones around then and always need to be the smartest ones in the room. These are the idea killers, the energy sappers, the Diminishers of talent and commitment.
  • On the other side of the spectrum are leaders who use their intelligence to amplify the smarts and capabilities of the people around them. When these leaders walk into the room, lightbulbsgo off over peoples heads, ideas flow, and problems get solved. These are the Multipliers. And the world needs more of them, especially now, when leaders are expected to do more with less.

Liz Wiseman’s research found that Diminisherstypically get 20-50% from their people, while Multipliers extracted 70-100%, or 1.97 times more.

Some of the main differences between Multipliers and Diminishes:

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Herb Mast is a Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.

HERBISM #58 – Great Leaders Are Not Defined By Tragedy But Rather By How They Respond To It

This week two separate clients shared how a member of their staff had recently tragically died.

None of us wishes for tragic things to happen, but somehow it finds all of us at different times in our lives. And when it does it tends to stop us in our tracks, even if for a split second, and force a decision…do we run at it or do we run away from it?

When tragedy finds great leaders they, like first responders, do not run away from the tragedy, but run at it. Hence, great leaders are not defined by the tragedy, but rather by how they respond to it.

Tragedies have a way of revealing who we really are. It strips away all the façade and exposes the real person. That is good, because that is the part that those affected by the tragedy [even when it is us ourselves] need to see and respond best to.

One client shared  how their team was devastated by the tragedy, yet how their own transparency and vulnerability in the aftermath helped staff get through it and become a closer team.

When words seem inadequate, great leaders let their heart do the talking.

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Herb Mast is a Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.

HERBISM #57 – Great Leaders Are “Challengers” (Not Know-It-Alls)

The first sign of a great leader is a recognition of gaps in their own capability and capacity that only others can fill.

The second sign of a great leader is that they are willing to let go of control and pass the baton of challenge on to other members of the team.

The study of the brain shows that people come alive when given control and a challenge to solve.

The greatest challenge for a talented leader is not to give answers [feeding others for a day], but to develop others by challenging them to find answers [feeding them for a lifetime].

In this way a great leader expands their own potential through others. They believe people are smart and can figure things out.

According to Liz Wiseman in her book Multipliers:

Know it alls – give directives that showcase how much they know.  As a result they limit what their organization can achieve to what they themselves know how to do.  The organization uses its energy to do what the boss thinks.

Challengers – define opportunities that challenge people to go beyond what they know how to do.  As a result they get an organization that understands the challenge and has the focus and energy to take it on.

The 3 practices of the Challenger:
  1. Seed the opportunity
    1. Show the need
    2. Challenge the assumptions
    3. Reframe problems
    4. Create a starting point
  2. Lay down a challenge
    1. Extend a concrete challenge
    2. Ask the hard questions
    3. Let others fill in the blanks
  3. Generate belief in what is possible
    1. Helicopter down
    2. Lay out a path
    3. Co create a plan
    4. Orchestrate an early win
Becoming a Challenger:
  • Ask leading questions
  • Take a bus trip
  • Take a massive baby step

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Herb Mast is a Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.

HERBISM #56 – Great Leaders Are “Investors” (Not Micromanagers)

Micromanaging is a trust issue.

Some say it is a control issue, but doesn’t control also ultimately come down to trust—struggling to let go, fearing that others can’t do it (at least not well enough), and that others need your ongoing input in order to get it right.

Team members need to feel trusted and valued, and micromanaging communicates the opposite. Founders who are prone to manage every detail of their businesses will ultimately kill themselves as well as lose the support of team members. Learn to delegate key tasks and give credit.  (Martin Zwilling)

So, great leaders let go. They believe people are smart and can figure it out. They invest vision, trust, and resources in order to extend their greatness. And, in the process they also reap twice the results according to research by Liz Wiseman – see her book Multipliers.

For more insights into micromanaging click on the following image:

Click on this image to be taken to the article.

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Herb Mast is a Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.

HERBISM #55 – Great Leaders Are Debate Makers (Not Decision Makers)

There is nothing inherently wrong with making decisions. But how decisions are made can have a significant impact on an organization—either creating higher levels of engagement and execution or disengagement and dissatisfaction.

Liz Wiseman, author of Multipliers, agrees that good leaders are made, not born. She states that “leadership skills can be taught and management practices can and should be refined and improved upon as leadership styles and behaviors evolve.”

In her book she introduces two types of leaders: Multipliers and Diminishers.

Diminishers drain intelligence and capability out of their teams. Because of their need to be the smartest, most capable person in the room, they often shut down the smarts of others, ultimately stifling the flow of ideas. They pride themselves for being decision makers, not realizing that in the process they are stifling and underutilizing people and leaving creativity and talent on the table.

Multipliers on the other hand, as capable as they are, care less about flaunting their own IQs and more about fostering a culture of intelligence in their organizations. They recognize that people are smart and bring value to the team and that one of the best ways to access that value is to create debate within a safe environment. As a result, under their leadership, employees don’t just feel smarter, they become smarter, and better decisions are ultimately made for the benefit of the team and the organization.

In her February 1, 2017 Skillsoft Blog, entitled Creating Debate to Improve Decision Making, Liz challenges leaders, to “think of some important organizational decisions were made recently within your company. Were there any problems that came up after the fact – in whispered conversations in hallways and cubicles – as baffled teams tried to make sense of decisions that seemed abrupt and random? Diminishers create this unproductive dynamic because they tend to make decisions alone or with input from just a small inner circle of advisers. The result is an organization left reeling, instead of executing.”

“By contrast, Multipliers engage people in rigorous, upfront debates about the issues at hand. They give people a chance to weigh in and consider different possibilities—ultimately strengthening team members’ understanding of the issue and increasing the likelihood that they’ll be ready to carry out whatever actions are required.”

“In our research, we found that Multipliers did three specific things very differently from Diminishers when it came to decision-making.”

“While Diminishers raise issues, dominate discussions, and force decisions, Multipliers:

  1. Frame the Issue
    1. Define the question
    2. Form the team
    3. Assemble the data
    4. Frame the decision
  2. Spark the debate
    1. Create safety for best-thinking
    2. Demand rigor
  3. Drive a Sound Decision
    1. Re-clarify the decision-making process
    2. Make the decision
    3. Communicate the decision and rationale

Liz finishes her blog post with the following four steps for those that want to become debate makers:

  1. Ask the hard questions,
  2. Ask for evidence,
  3. Ask everyone,
  4. Ask people to switch positions.

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Herb Mast is Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.

 

 

HERBISM #54 – Great Leaders Are Made, Not Born

Similar to the debate over which came first, the chicken or the egg, is the debate over whether leaders are made or born.

Regardless of which side of the argument you find yourself on, I think we can all agree that virtually anyone can become a better leader if they want to and put in the necessary effort.

Here are a few ways in which Great Leaders practice intentionality (and are made):

  • Humbling themselves and celebrating the strengths and contributions of others
  • Getting themselves out of the way and making it all about the mission of the organization
  • Caring for and developing others (they cannot accomplish the vision alone)
  • Accepting the fact that they don’t have all the answers and will never stop learning
  • Being clear on their values and never sacrificing them
  • Welcoming trials and tribulations for how they make them stronger
  • Embracing the role others play in their development
  • Seeking accountability before it finds them

The following video shares a simple formula for making leadership more actionable:

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Herb Mast is Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.

HERBISM #53 – Great Leaders are [EQ] Smart

Why is EQ so important?

Because of the furious pace of change in business today, difficult to manage relationships sabotage more business than anything else – it is not a question of strategy that gets us into trouble; it is a question of emotions. John Kotter, Harvard Business School

The Institute for Health and Human Potential (IHHP.com) reports that research tracking over 160 high performing individuals in a variety of industries and job levels revealed that emotional intelligence (EQ) was two times more important in contributing to excellence than intellect (IQ) and expertise alone.

IHHP further reports that emotional intelligence not only greatly contributes to job performance and leadership skills, but it has also been found to increase profits.

IHHP claims that training in EQ competencies develops stronger leaders. The following chart depicts the number of times those individuals who became president or CEO displayed emotionally intelligent competencies, compared with those who were passed over.

Note: Although those who became president or CEO showed cognitive competencies more frequently than those passed over, this difference was not significant.

In his book, The Ideal Team Player, Patrick Lencioni presents a simple model that every business leader can adopt to improve the EQ competencies of their team; not only when hiring new talent, but in shaping and molding the existing team.

The model shows that the best teams are comprised of individuals who have a good balance between three key virtues: Humility, Hunger, and Smarts. Lencioni specifically emphasizes that smarts in this model is more of the EQ variety.

Building, molding, and maintaining balanced teams requires intentionality, for which a leadership coach can serve as a catalyst and guide.

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Herb Mast is Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.

HERBISM #52 – Great Leaders Model Vulnerability

A fallacy in leadership is that vulnerability is weakness. Rather, vulnerability is the birthplace of the virtues we all strive to attain. That is the paradox.

It is true that trust is the foundation of every great team. Not just any kind of trust, but vulnerability-based trust, which will not emerge unless vulnerability exists amongst the team. And for vulnerability to exist it must be modeled by the leader first.

Henry Cloud, in his book Boundaries for Leaders, presents the case for how leaders get two things: what they create and what they allow. Hence, leaders must choose what kind of environment or culture they want to foster in their organizations…an environment of positivity or one of negativity, politics, silos, and turf wars. By default human nature will always tend towards an environment rife with fear, greed, selfishness, shame, and hate. But with intentionality a great leader is able to create a positive and healthy environment.

Research has shown that vulnerability is the doorway to a positive and healthy environment.

Few team members will show vulnerability, however, and at least not for long, unless they see vulnerability modeled by their leader. Hence, leaders must take the first step…and when they do amazing things happen as the rest of the team follows and opens up.

But allowing ourselves to be vulnerable is not easy, even for leaders. Nonetheless, recognizing the importance of vulnerability, great leaders courageously take the first step and learn to model it for their teams.

And, with vulnerability people are less apt to take conflict personally. Rather they embrace it as a necessary part of healthy conversations.

As Andy Stanley is known to say, “In an environment of trust conflict is nothing more than the pursuit of truth to achieve the best possible solutions.”

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Herb Mast is Leadership Coach and Employee Engagement Specialist. Learn how he can assist you in implementing the principles and concepts presented here.