GUEST COMMENTARY: A Different Kind Of ACE Mechanic - aftermarketNews

GUEST COMMENTARY: A Different Kind Of ACE Mechanic

Think about the factors that influence the success of a company in the automotive industry - be it an auto parts chain, a supplier of OEM or aftermarket components, a national tire or repair chain, fleet service or a sole proprietorship three-bay garage outside of town. One common factor you will recognize is that success has a lot to do with the talent of employees. Many highly regarded companies are very successful because of their people. Those companies have a great deal of "people equity" equity in the financial sense that their employees constitute a valuable asset. Why are their employees such a valuable asset?

Today, aftermarketNews presents guest commentary from Carl Persing, Ph.D., a research and solutions adviser for Metrus Group, a strategic research and advisory firm located in Somerville, N.J. Persing holds dual Master ASE certifications in automobile and medium/heavy trucks, as well as parts specialist certifications, and recently received recognition for 25 years of ASE certification. In "A Different Kind Of ACE Mechanic," Persing writes about the strong need to attract, develop and retain talented technicians, trainers, and managers in the automotive industry and the very unique skill set required to be a success in this industry today.
 
By Carl Persing
 
Do you employ "ACE" mechanics — super-sharp technicians who can figure out puzzling vehicle issues that cause other techs to just scratch their heads? Perhaps these employees also are ASE-certified technicians or parts specialists. Well, this article is about yet another kind of "ACE," and it has to do with managing your employees in a manner that optimizes their potential.
 
Think about the factors that influence the success of a company in the automotive industry — be it an auto parts chain, a supplier of OEM or aftermarket components, a national tire or repair chain, fleet service or a sole proprietorship three-bay garage outside of town. One common factor you will recognize is that success has a lot to do with the talent of employees. Many highly regarded companies are very successful because of their people. Those companies have a great deal of “people equity” — equity in the financial sense that their employees constitute a valuable asset. Why are their employees such a valuable asset?
 
Well, their employees know what their company’s strategic goals are and how their work helps to achieve those goals. Further, their employees help the company achieve its goals because they have the knowledge and skills to do their jobs along with the necessary organizational support and resources.
 
Beyond this, their employees are motivated and enthusiastic about the company and the work they do. This is to say that their employees are Aligned, Capable, and Engaged (ACE), the three essential elements that are being used to optimize talent in many extremely successful companies.
 
Getting employees to be highly aligned, capable and engaged is a management issue — not just a human resources problem. When employees are low on ACE, there are telltale signs, such as customer frustration, dissatisfaction and complaints that result in returns or rework, misdirected efforts that waste time and resources and high turnover, to name a few. Low ACE employees aren’t sure of how their work or performance fits into their unit or the company overall, or with their customer’s needs or desires. They don’t know exactly what their supervisor wants them to do or when to do it, resulting in wasted time or rework.
 
These employees don’t understand what the company’s promise is to their customers, resulting in unfulfilled expectations. Further, they often don’t have the information, resources, skills or technology to do their job in a manner that meets their employer’s or customer’s expectations.
 
Finally, they are not advocates for the company — meaning that they don’t recommend the company or its services to acquaintances, they are not energized or excited by the work they do, and they aren’t strongly motivated to produce a quality outcome for the customer.
 
Low ACE isn’t just about employees though. Management actions and policies drive and enable ACE. There are a number of drivers of ACE, factors within the organization that management can influence, such as operating style, performance management systems, training, communication patterns between employees and management, resource allocation, quality processes, staffing choices and teamwork and culture, as well as how respected and appreciated employees feel and how well they can trust management to follow through.
 
Research shows that ACE greatly affects the bottom line. In a study of a national chain with more than 1,000 locations, units whose employees were high on ACE had 21 percent lower turnover, 10 percent higher productivity and 32 percent fewer customer complaints. For this chain, the incrementally higher returns from high ACE result in 18 percent higher sales and 37 percent higher profit margins, which adds up to $50 million in sales and $24 million in profits! There are similar results found across other industries as well. Research showed that companies with high ACE were two times more likely to be financial leaders in their industry and three times more likely to be quality leaders, while averaging half the turnover. Having workers who are Aligned, Capable and Engaged has a definite payoff, as well as other benefits that extend throughout the organization.
 
So how can you get your organization optimized on ACE? Well, diagnosing A, C, and E and its drivers usually begins with an ACE survey to pinpoint where strengths and weaknesses exist. An ACE survey is very different from a “job satisfaction” survey.  The focus is not on entitlements, but rather on factors that directly impact business success. Knowing where your employees score on ACE and how they rate the company on the drivers and enablers opens the door for the next crucial step — meetings with employees to discuss and prioritize the most important areas needing improvement, to explore root causes for the problems and to formulate solutions that involve specific employee and management behaviors, goals, timelines and mileposts and measures of progress.  
 
In my work with a variety of organizations, I have worked with senior managers who learned firsthand that increasing ACE in their workforce is a smart management decision, but those managers will admit that it does take commitment and focused effort. Real changes in companies do happen, and the return on investment speaks for itself. It can happen in your organization as well.

Carl R. Persing, Ph.D. is a research and solutions adviser for Metrus Group (www.metrus.com), a strategic research and advisory firm located in Somerville, N.J. He holds dual Master ASE certifications in automobile and medium/heavy trucks, as well as parts specialist certifications, and has recently received recognition for 25 years of ASE certification. His consulting experience and interests include measurement-focused strategic talent management, organizational and leadership development, and occupational stress, wellness and safety solutions.
 
 

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