Since it is that time of year, here are some ideas for commitments you may wish to make for 2013. As you’ve heard me say many times, “If you measure it and then scoreboard it, performance will improve!” Many of you are probably measuring and scoreboarding some of the following key performance indicators, but I doubt if any of you are measuring all 11 (a “lucky” number) of them:

1. Actual flat rate hour Productivity per Technician against objective on a daily, weekly, monthly, and YTD basis.

2. Actual Flat Rate Hour Sales per Advisor against objective on a daily, weekly, monthly, and YTD basis.

3. Actual Customer-Paid Effective Labor Rate per Advisor against objective on a daily, weekly, monthly, and YTD basis.

4. Number of Menu Sales Opportunities per Advisor on a weekly, monthly and YTD basis.

5. Actual percentage of Menu Closes per Advisor against objective on a weekly, monthly and YTD basis.

6. Actual Number of Multi-Point Inspections (MPIs) Performed per Technician against objective on a weekly, monthly and YTD basis.

7. Average Number of MPI Hours Recommended per Technician per MPI against objective on a weekly, monthly and YTD basis.

8. Actual percentage of Recommended MPI Hours Closed per Advisor against objective on a weekly, monthly and YTD basis.

9. Actual percentage of One-Line Customer R.O.s per Advisor against objective on a weekly, monthly and YTD basis.

10. Percentage of First Service Visits (for both New and Used Vehicle Customers) That Show, against objective on a monthly and YTD basis.

11. Percentage of Next Appointments Set Per Advisor against objective on a weekly, monthly and YTD basis.

What do you think would happen to your service department gross profit (and resulting net profit) if you could achieve incremental improvement in each of these key performance areas throughout the course of 2013?

If you’re wondering how you’ll find the time to perform this administrative task, here’s an idea for you. Each one of these key metrics involves the sale of additional hours, correct? And the sale of additional hours always involves the sale of additional parts, correct? So why not ask the parts manager to lend a hand in accomplishing the task of gathering and posting this important information?

Guidance like this is what we provide on a routine basis in our many NCM Institute service management training programs.