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Building a Profitable Service Department: Addressing Systems & Standards

It was 1993 when I joined a "mixed group" of like contractors.  They were from different parts of the country so we were able to be open and honest about everything we do in our businesses.  From hiring and firing to marketing and buying, every subject was fair game.

I will never forget my first meeting with the group. The subject was "Systems and Standards". My company had 50 mechanics, a full sales and design department, and we had been named "Contractor of the Year" the previous year. I was feeling pretty smug and thought how lucky they were to have me. I thought we had systems and standards, but the more I listened, the more I came to the realization that my company was "The Chris Show". Without me keeping an eye on things and holding the reins tight, my people had no formal way to make decisions. What was worse, they waited for me to bless every decision before making a move. When the meeting was over I felt humbled. Gracefully, the group recommended I buy and read the book, "The E-Myth Revisited" (written by Michael Gerber), before the next meeting. The book changed the way we did business because it systemized us giving my employees the tools to make decisions, and from that we were able to set measurable standards. Within a year, it was no longer "The Chris Show". It became something much bigger and more enjoyable for everyone, including me.

So, what are systems and standards and how do you develop them? Systems, simply put are "the way we do it here", written procedures for almost everything you do. They have to be written down and catalogued by department so that the specific department is not dependent upon any individual, not even the owner. This formality allows anyone to fill the shoes of anyone else. Maybe not immediately to the other person's level, but immediately to a level that keeps those responsibilities from falling apart.  Standards are a communicated and expected level of professionalism.

We have carried that tradition over to my current business, EternaBond. For example, we always try to answer a ringing phone within three rings. Certain people are assigned to make sure that happens, but because it is an imperfect world, we have a system that tells everyone what is to happen on rings four through six and then at ring seven.  Does it sound controlling? It definitely is, and the team members love it. There are expectations and they are written in the manual. Once the phone is answered, the standard takes over. When we answer the phone, we all use the same, friendly words: "Thank you for calling EternaBond.  This is ____.  How can I help you?" That is the EternaBond standard.  If a customer receives anything less, they have been short-changed.

What if we put someone on hold?  There is a system there too: the person putting them on hold is responsible for keeping an eye on the waiting customer (the System).  This means that every 60 seconds or so they pick up the on-hold customer and say, "Sorry this is taking so long.  Would you prefer ____ call you back or may I help you?" (the Standard).  When the target employee is reached by the holding customer they are taught to say, "Hi, this is _____.  Sorry to keep you waiting and thank you for holding.  How can I help you?"  We do not want creativity in this first touch, just a concerned, friendly voice from our end.  If someone thinks there is a better way to do it they are always free to bring it to their manager, but in the meantime, follow the system.

I keep saying that well run service departments make the profits.  The flip side is that poorly run service departments ruin reputations.  This is so important because promises are made with the first contact, and if you do a good job marketing your s

 
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