Chris Collins and Christian Lafferty explain the difference between technician efficiency (hours flagged divided by hours available) and proficiency (time clocked on repairs). An 8-hour day with 16 flagged hours equals 200% efficiency. They argue proficiency can be gamed and recommend incentivizing efficiency instead to actually improve your bottom line.
Questions this video answers
Hours technicians flag versus hours available (flagged hours ÷ available hours).
100%.
200%.
300%.
A formula based on how long technicians are clocked on a repair order.
Chapters
We should go to a segment I like to call terms you should know.
This is a fun one.
Yeah, this, this term.
Is often debated.
Terms you should know.
Perfect. Efficiency versus proficiency.
I'm sorry, that just put the biggest smile on my face.
I know, it's great. That intro is great.
We have, we have a lot of talent around here.
Yes, we do. Absolutely.
Also, besides Michael being such a great guitar player and singer, he also is a puppeteer. He's an actor, a philanthropist, soon to be philanthropist, and, and a big fan of the hallucinogenics.
Have you ever done any hallucinogenics?
Carburetor spray.
You know what, what they're trying to get me to do is to take everybody down to South America and do ayahuasca.
Very interesting.
Have you ever done ayahuasca?
You guys go do that and I will run the ship here while you guys are gone.
I don't want to do it. I'm scared to death of that stuff.
What am I gonna learn by seeing a bunch of monsters or whatever?
You hallucinate colors, knock the desk over here or it's moving. Let's get back on track.
Proficiency to proficiency.
Yes. We're here to help you create a work life balance. That's what we're here changing the industry one service advisor at a time.
Have you ever got in a conversation with somebody about proficiency?
Because it's confusing.
It's the worst, you know. You know, so I used to work for a consulting company and they love to make people feel dumb that they didn't know what proficiency was. And literally, like I've gone into service departments before and they're paying the technicians on proficiency and their proficiency will be 120% and their efficiency will be like 70%. So here's what I want you to understand. Terms you should know is efficiency is how many hours do the technicians flag versus how many hours are available. So if they're working an eight hour day and they flagged eight hours, that's.
That's 100%.
It's 100%. If they work an eight hour day and they flag 16 hours, that's 200%. If they work an eight hour Day and they flag 24 hours.
300%. If they work an eight hour DAY and they flag 30 hours.
I don't know the number.
About 500% help from the audience.
Do we have help?
You have a calculator on that fancy phone of yours.
I set my phone down because it distracted you last time.
But basically, if it's an Eight hour day and they flag eight hours. That's what we want. Right. Proficiency is a formula of how long they're clocked on a repair order, which means nothing. The best technicians out there.
It does. I could care less if you flag 200. I could care less about proficiency.
Correct.
If you bonus on proficiency and your efficiency is low, you're losing money. And so I like to keep things simple and scalable. The thing I would like you to do is just focus on efficiency and forget about proficiency.
I agree with that 100%.
It's something consultants love to talk about to confuse you and make you feel like you need them, but you really don't. It's not a measurement that I've ever seen improve the bottom line. It's only a measurement that I've seen debated and confused people.
You're right. And the challenge with this, especially for the independent side of the world, is a time, actual time. Technicians are not used to punching the clock. They're not going to get the actual time correct. So you can't even calculate if you have a garbage data input. You're not going to get the right proficiency number on the output anyways.
Well, and the technicians that are good at it usually aren't very good technicians. They're just good at clocking on and off.
Punching the clock. Right. Absolutely.
And so I. And I'm not saying that technicians shouldn't clock on and off jobs the right way, but I'm saying that that measurement at the end of the day and isn't as important as the efficiency.
I agree 100%.
That's what goes in the till.
Correct.
So there you go for terms you should know.
Thank you so much for watching this clip of Service Drive Revolution. Now you can catch the full episode on YouTube, iTunes or Spotify or wherever you consume your podcast. If you have any questions, go ahead and post them in the comments below. Make sure you subscribe and hit the bell icon so you're notified when we post new episodes. I'm Chris Collins and you can find me on Facebook and Instagram at Chris Bulldog Collins and I'll see you again on the next episode.
