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Service managers need more than just technical skills - September 06, 2008
Running dealer's shop involves self-promotion, customer relations, personnel, budgeting
I want to talk about the role of the service manager at a new-car dealership.
It's possible you've never met this individual, even if you're a long-time customer at a local dealership. That's not to say he doesn't have his finger on the pulse of every aspect of this department – far from it.
The service manager wears many hats and is responsible for increasing customer retention, improving customer satisfaction, managing, directing, forecasting for today and tomorrow, and improving company image and morale.
Let's break these responsibilities down.
The service manager oversees all work performed on vehicles inside the shop. Whether that involves tune-ups, brake jobs or engine replacements, the manager knows who's performing it and who's paying for it.
Staffing is another area that falls under the service manager's purview. He's responsible for hiring apprentices, technicians, service advisors and cashiers, and making sure they have the expertise and resources to perform their jobs.
Motivating staff and handling personnel issues is a big part of the service manager's job. A good manager must be part coach, part mentor and part psychologist, and able to resolve any employee-related issues quickly and effectively.
A service manager must also ensure safe working conditions in his department. This means complying with all operating procedures required by the manufacturers and municipal bylaws, and making sure all work orders and paperwork are maintained.
A service manager must be able to make tough decisions on the fly, and explain those decisions to customers and management. Good communication skills are essential.
Planning and forecasting are important aspects of the manager's job. His job description includes establishing budgets, approving expenditures and working closely with his team to achieve department goals.
A service manager also knows how to promote his department. He organizes all advertising and marketing campaigns, from direct-mail brochures aimed at existing customers, to newspaper ads appealing to prospective customers.
Service customers fall into two camps: the outside customers who visit a dealership for regular maintenance, troubleshooting and warranty work; and internal customers, such as other departments (new, used, leasing and parts). Working with other departments is no less demanding (sometimes more so) than dealing with outside customers.
In my experience, dealerships that maintain good relationships between all departments, and with external customers, stand a far better chance at being successful.
What does it take to be become a service manager? Ten years ago, a solid technical knowledge of vehicles was a common prerequisite for service managers to step into this position. Not so today.
Today, dealer principals and owners recognize that other skills – people, management, communication and organization – are far more critical to the department's success. A service manager with plenty of technical knowledge won't last long if he doesn't possess many other skills.
Personalities of employees, punctuality, and a lack of knowledge among consumers are some of the issues that continue to challenge service managers.
Vehicles today are more difficult to repair. Increased computerization makes it difficult to follow manufacturers' recommended servicing schedules, in order to maintain warranty coverage. If service managers had a pet peeve, it's that consumers don't always understand the maintenance requirements.
But, for all of the challenges a service manager's job entails, most enjoy their work and the rewards that go along with it.
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