Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Mon Oct 13, 2008 4:30 pm Post subject: Loyalty, Motivation and Work Ethic
Loyalty,
motivation,
work ethic.
I always said I wanted these in my employees, but never could achieve them. Why can’t I just buy it? Money can buy anything, right? Luckily I finally realized the answer is, WRONG!
This was quite hard to accept. I had an obsession with incentives and felt there could be no other way. I always supposed clever manipulation of pay was the solution. Finally, against my objections I learned there is compelling evidence to the contrary.
Give any employee a raise, do they work harder?
Create any incentive, in short time people merely concentrate on getting around it.
Though we have more incentives than any time in history, loyalty, motivation and work ethic are considered by many to be at all time lows.
There are countless top-heavy, barely profitable organizations around simply searching for that perfect incentive.
There had to be another way, there is.
This is not to say pay is not important. We all know it is a primary reason people work and good people tend to go where they are well paid. I knew this was true, but didn’t realize it was only a small part of the equation. There was so much more. Money represents a need, sort of like food, safety and shelter. Dr. Frederick Herzberg described these as hygiene items. Hygiene items de-motivate by there absence but do not motive by there presence.
This made sense, I had seen it a hundred times. People simply consider the amount they make as the amount they have earned. No matter the amount most people [rightly] feel they earned it and nothing more is due. When the amount is sufficient, they are not motivated only not de-motivated. The absence of de-motivation does not constitute motivation any more than the absence of complaints means clients are satisfied. It only means they are no longer dis-satisfied, very different from satisfaction.
I knew I was onto something, but still had doubts. People often make commitments in order to earn more money. Wasn’t this motivation for pay? Not so, I learned more money is simply equated with moving ahead in their career. The feeling of moving ahead is the temporary stimulus. I easily proved this to myself. Give a raise, just wait a few months and see how motivated the person is, other factors remaining equal.
The light came on! I had [wrongly] seen hygiene items as motivators, totally neglected true needs, with disastrous results. The auto repair trade in general is a good example. One of the most “incentivized” groups on earth, production is so poorly lacking that shops barely make ends meet, even as clients cannot afford repair. Many have all sorts of figures that show production is high. This is MEANINGLESS! One figure tells the tale. Dollars of net profit, per employee and with a backlog of clients. I learned comparing an employee's time to some arbitrary guide meant nothing.
So how did I begin to see loyalty, motivation and work ethic? It was surprisingly simple, yet extremely difficult for me to discover. I had to start by removing the factors that de-motivate people. Stop arbitrary [wrong,] ranking, rating and comparisons of personnel. Throw away the charts, graphs and figures, that were nothing more than meaningless “busy work” and start actually managing my business.
Stop manipulative pay schemes. Instead pay people the most the company could afford and work with them to increase production. Stop short-term fire-fighting that only goes to demonstrate my incompetence. Start instead by seeking out and eliminating as many obstacles to production as possible. Start by working to make work meaningful, enjoyable and even fun.
Quit treating symptoms and start working on causes. People are naturally motivated. People want to do good work and take pride in it. It was time for me to quit playing games and get to work. The changes were nothing short of revolutionary. Perhaps what I needed most I found had to come from myself:
Joined: 28 Jul 2008 Posts: 16 Location: Tifton, GA, USA
Posted: Mon Oct 13, 2008 6:47 pm Post subject:
Louis,
What you are saying fascinates me and I want to know more. I want to learn as much as I can about transforming myself and my business. Where did you start? Give us some examples of things that you implemented. I know it will take time but I'm willing to move forward. I just need a nudge in the right direction. I know there is a better way!
_________________ Keith White
Owner
Whites Auto Service
Tifton, GA, USA
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Tue Oct 14, 2008 7:47 pm Post subject:
keith wrote:
Louis,
What you are saying fascinates me and I want to know more. I want to learn as much as I can about transforming myself and my business. Where did you start? Give us some examples of things that you implemented. I know it will take time but I'm willing to move forward. I just need a nudge in the right direction. I know there is a better way!
Hi Keith,
Thanks for your interest. The best way I know to start is reading the books on the suggested reading list. This will give you a basic feel for the Deming philosophy. For me, the change started when I finally realized I was the problem.
Dr. Deming says four things are necessary for proper management
The theory of knowledge
The theory of systems
A knowledge of statistics
A knowledge of psychology
One need not be expert in any field but must understand all. For me this took years. Another huge problem is that so much of what surrounds us is information that is wrong. It is a bit hard to find the truth, but it is there.
The truth is self evident and stands the test of time. find businesses that grow, prosper, profit and are truly admired by clients and have been for years. They make no excuses, don't speak of recessions, have no need to blame outside forces, just continued ethical success and growth. Employees remain with the company, enjoy their work and each other. Find such companies and you will see what Deming was trying to teach.
It is not difficult at all, in fact surprisingly simple, again like all truth. What is needed is long-term, total dedication to constant improvement and a refusal to accept less.
I find it easiest to address specific questions or discuss differing views. Please let me know if I can assist in any way.
Joined: 28 Jul 2008 Posts: 16 Location: Tifton, GA, USA
Posted: Tue Oct 14, 2008 9:45 pm Post subject:
Thanks Louis,
I guess one question that I have ,(gotta start somewhere), is how do you quote without some type of labor guide? I currently bill on a flat rate because thats all I've ever been taught. I use a labor guide to quote the job and I bill accordingly. I don't blindly accept the labor guide's time figures because I've seen extremes both ways. I adjust the times to be fair to both the customer and my business. I guess it's not a true flat rate scale but I would love to be able to change this system or improve it. There are so many variables that effect the amount of time it takes to complete a job that it is often difficult to quote a job accurately (broken bolts, frozen bolts, other situations). How do you account for these things when you're bound to an estimate without losing money and customers? I value your input as well as anyone else interested in replying!
_________________ Keith White
Owner
Whites Auto Service
Tifton, GA, USA
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Wed Oct 15, 2008 8:09 pm Post subject:
keith wrote:
Thanks Louis,
I guess one question that I have ,(gotta start somewhere), is how do you quote without some type of labor guide? I currently bill on a flat rate because thats all I've ever been taught. I use a labor guide to quote the job and I bill accordingly. I don't blindly accept the labor guide's time figures because I've seen extremes both ways. I adjust the times to be fair to both the customer and my business. I guess it's not a true flat rate scale but I would love to be able to change this system or improve it. There are so many variables that effect the amount of time it takes to complete a job that it is often difficult to quote a job accurately (broken bolts, frozen bolts, other situations). How do you account for these things when you're bound to an estimate without losing money and customers? I value your input as well as anyone else interested in replying!
Hi Keith,
I have written a fair amount on the topic. Please click on Alternative Pricing for a great deal more information. I feel the auto service trade has long used the labor guide as a [very much unneeded] crutch, much to their detriment. Like many things, this may be difficult to see until a person is free of it.
For instance, many people feel being deeply in debt for things they really don't need is normal. Once a person is free of debt they see this in a totally different light.
The purpose of actual time billing is not to precisely account for every second. Rather the purpose is to bring billing far more near reality and fairness.
Socialistic pricing (flat rate) tends to attract loss leader jobs (oil changes, flat repairs, free diagnosis, etc.) and discourage fairly priced work. When the market is competitive, shrewd operators let those who wish to loose money have all of those jobs they want. Instead they take the jobs such shops hope to "make up" their losses with, by pricing more fairly.
Lots of shops under-bid me on oil changes. No problem, I under-bid them on intake manifold replacements by charging for time spent. Clients get a good deal on high quality work, I make 100% and my competitors loose money. At least two of us are very happy with the arrangement
Joined: 28 Jul 2008 Posts: 16 Location: Tifton, GA, USA
Posted: Wed Oct 15, 2008 9:09 pm Post subject:
Louis,
I've read most every article on this website including posts and that is why I've asked this question. I understand what you are doing and I applaud the way you do business! what I don't understand is, how do I get there from here. It's kinda like asking someone directions and being told "you can't get there from here". I want to begin to take the necessary steps to transform my business into the kind of business that is profitable, fair, and a great place to work. I can understand when you spoke of putting out fires all day because that is what I do everyday! I enjoy working on cars but I've not enjoyed all the aspects of management. I knew that there was better way and proved that fact when I stumbled onto this site and began reading what you and the others were writing and posting. True success is being happy with what you do, having a clean conscious, and making a living doing it! That's what I want. Any help is appreciated.
_________________ Keith White
Owner
Whites Auto Service
Tifton, GA, USA
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Wed Oct 15, 2008 9:34 pm Post subject:
keith wrote:
Louis,
I've read most every article on this website including posts and that is why I've asked this question. I understand what you are doing and I applaud the way you do business! what I don't understand is, how do I get there from here. It's kinda like asking someone directions and being told "you can't get there from here". I want to begin to take the necessary steps to transform my business into the kind of business that is profitable, fair, and a great place to work. I can understand when you spoke of putting out fires all day because that is what I do everyday! I enjoy working on cars but I've not enjoyed all the aspects of management. I knew that there was better way and proved that fact when I stumbled onto this site and began reading what you and the others were writing and posting. True success is being happy with what you do, having a clean conscious, and making a living doing it! That's what I want. Any help is appreciated.
Hi Keith,
It's a lot like the commercial that says, "Just Do It!" You have to commit and start moving forward. Don't feel overwhelmed or worry about what you can't do. Just pick one small thing that you CAN do and do it. Next pick another and so on.
Read the fourteen points and see how you can apply them. Remember, my program is over twenty years in the making. It looked very different when I started. It is never too late to start and some results are almost immediate. Others take much longer.
If you are working on the right things, progress will be steady and always forward. There is no detailed How To. It's a lot like a client, totally unfamiliar with repair, asking "How much to turn out the check engine light?" There is so much he has to know before he can realize why the question has no answer.
I find a good place to start is by trying to understand employees. Most people have tended to state what they truly wish were reality, yet act in a different way to make ends meet. This is terribly confusing to those we try to lead.
I started with an apology to all my people. I sincerely apologized for the way I had acted in the past and vowed to changed. I invited them to let me know when I didn't live up to what I said. I printed cards and listed five commitments. These were laminated and every employee had one. On the reverse side was my stated aim. Anytime I did not live up to any of these, I expected to be "called on it." Forget the past, move on, forgive old grievances and hope to be forgiven. It’s really the future that matters.
It just takes times and effort, but you have to start and you have to commit, forever. I will be glad to help in any way I can as I am sure others on this site will. Quality is a never ending journey, not a destination.
Joined: 19 May 2007 Posts: 206 Location: Camp Verde, AZ
Posted: Sun Oct 19, 2008 11:17 pm Post subject:
Keith,
I understand how you feel, as I am only about 1/2 a step further down the path. We want an instruction manual so we can do step one, two, three, etc.
I took one of the high dollar, reengineer your shop programs. They had the steps, but what I found was I did not agree with all of them, so did not do them. Now that we are out of their program, we have fallen back into our old ways. One of the things I found out from the business owner was that most people taking the program will not successfully change. To change takes years of effort and coaching.
Something other than steps is needed - we need to change our belief systems. Maybe a couple simple examples would help. Old way of thinking - Air hoses cost money and a tech can only use one at a time so, one per bay is plenty. Rags cost money to rent, so each tech is allotted 25 per week. Very few things in a shop run on electricity so one outlet per bay is enough.
New belief system - the more a tech has to walk the less work they produce so lets help them be more productive. Every bay has an air hose on each corner and on the lift. 4-way electric outlets are spaced every 6 feet apart on the walls, and at a height of 4 feet from the floor. Rags are cheap compared to losing a customer because of a greasy finger print. Each tech is given all the rags they need, with extras placed in strategic spots around the shop.
_________________ David Wittmayer
Owner / Manager
Hansen Enterprises Fleet Repair, LLC
Camp Verde, AZ
www.hefrshop.com
Joined: 19 May 2007 Posts: 206 Location: Camp Verde, AZ
Posted: Sun Oct 19, 2008 11:18 pm Post subject:
Keith,
I understand how you feel, as I am only about 1/2 a step further down the path. We want an instruction manual so we can do step one, two, three, etc.
I took one of the high dollar, reengineer your shop programs. They had the steps, but what I found was I did not agree with all of them, so did not do them. Now that we are out of their program, we have fallen back into our old ways. One of the things I found out from the business owner was that most people taking the program will not successfully change. To change takes years of effort and coaching.
Something other than steps is needed - we need to change our belief systems. Maybe a couple simple examples would help. Old way of thinking - Air hoses cost money and a tech can only use one at a time so, one per bay is plenty. Rags cost money to rent, so each tech is allotted 25 per week. Very few things in a shop run on electricity so one outlet per bay is enough.
New belief system - the more a tech has to walk the less work they produce so lets help them be more productive. Every bay has an air hose on each corner and on the lift. 4-way electric outlets are spaced every 6 feet apart on the walls, and at a height of 4 feet from the floor. Rags are cheap compared to losing a customer because of a greasy finger print. Each tech is given all the rags they need, with extras placed in strategic spots around the shop.
_________________ David Wittmayer
Owner / Manager
Hansen Enterprises Fleet Repair, LLC
Camp Verde, AZ
www.hefrshop.com
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Mon Oct 20, 2008 9:13 am Post subject:
Hi Dave,
Twenty-five years ago my question was where's the how-to also. Dr. Deming just gave me one of his looks. Looking back, now I understand. You are spot on, what is required is a change of thinking.
Progress also does not come at predictable intervals, rather ah-ha moments. Sort of like pulling a weight with a rubber band. I would make good headway for months and then nothing for a month. Suddenly the light would come on and there I was.
Just start working on the fourteen points. Start considering them when decisions need to be made. Look for opportunities to apply statistics to decision making. Continue to read and study, progress will come and sooner than you think. Deming is NOT a program you install, it’s a [much better] way of life.
Joined: 28 Jul 2008 Posts: 16 Location: Tifton, GA, USA
Posted: Mon Oct 20, 2008 5:27 pm Post subject:
Thanks Dave,
My mind says "I'm glad I'm not the only one", because it's always reassuring to know you're not alone, but my heart says "I wish I were the only one", because I know how tough it is out there. The one thing that I always try to remember is that no matter how bad things look, it can always be worse! Before I went out on my own, I worked for a shop that was arguably the best shop in town. The owner was considered by many to be a very harsh person (and he was) and I was told that I would never work for him for very long. After getting to know him, he wasn't such a bear to me anymore but rather he went out of his way to help me both personally and professionally. For several years I was very happy, enthusiastic and made very good money for this area. Then things went sour! He went to a "business" seminar and came back with too many great ideas that weren't needed or weren't practical. I think you can guess where the shop started saving money(employee benefits, pay scales, etc.). He lost all three techs eventually, (13, 11, and 8 years of service), but what did this so called schooling accomplish? He complained that he wasn't making money but he constantly bought lavish things while cutting benefits to his employees. The people that come up with these programs are shrewd and teach people how to make money, not relationships. Relationships are the key to business whether it's employees, customers, or vendors! There is a right and wrong way to approach every situation and I want to learn to choose the right way each time!
_________________ Keith White
Owner
Whites Auto Service
Tifton, GA, USA
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