The MSO Project - September 2021 by EndeavorBusinessMedia-VehicleRepairGroup

FIND YOUR NEXT

THE SECRET TO EMPLOYEE

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ALL-STAR TEAM

ENGAGEMENT

S T R AT E G I E S A N D I N S P I R AT I O N F O R M S O S U C C E S S

PUT YOUR

KPIs TO WORK PAGE 16

SEPTEMBER 2021

Adapt and Thrive

Pandemic pandemonium? Not for this savvy shop owner. |

PAGE 8

Team Effort For MAACO shop owner Kevin Taylor (center), protecting his team— and their jobs—was his biggest priority throughout COVID-19.

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19 | Bond with Your People WHO’S BUYING

Despite how many employees you may have, finding ways to connect is still vital.

4 | Acquisitions

SNAP SHOP

EDITOR’S LETTER

20 | Fix Auto Anaheim North

6 | Finding the Silver Lining

An inside look at David Caulfield’s innately unique facility.

T R E N D S + A N A LY S I S

GROWTH PLAN

7 | The Up-and-Comers

22 | The Next Steps

As Crash Champions continues to grow, it makes a play for national dominance.

After selling to Classic Collision, DJ Mitchell reflects on his next move.

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WHO’S BUYING

ACQUISITIONS GERBER ACQUIRES 35-SHOP MSO

J U LY

GERBER ACQUIRES LARGE SOUTHERN MSO

CRASH CHAMPIONS CONTINUES ITS EXPANSION

The Boyd Group has acquired 16 collision repair centers in South Carolina and Georgia which will become Gerber Collision & Glass locations, the company announced in a press release. The locations previously operated as John Harris Body Shops, which originated in South Carolina and grew into a regional MSO. The locations are scattered across South Carolina and Georgia, including shops in Charleston, Columbia, Greenville and Augusta.

Crash Champions announced the acquisition of two new businesses that are roughly 2,300 miles apart. Crash, which is increasingly expanding from a regional MSO to a nationwide collision repair provider, acquired the California-based All American Paint and Body and the Ohiobased Centerline Auto Body.

CLASSIC COLLISION ADDS LOCATION Classic Collision has opened a new 19,000-square-foot location in Santa Ana, Calif., according to a press release. “We’re thrilled to expand our growth strategy. This year we have been fortunate to welcome many great team members through acquisition. Now Classic Collision’s startup model, which includes retrofit and new construction, provides even more opportunity for all stakeholders at Classic.” Toan Nguyen, CEO of Classic Collision, said in a statement. 4

CLASSIC COLLISION ACQUIRES SOUTH CAROLINA MSO Classic Collision has added seven additional shops following the acquisition of Fender Mender, a South Carolina-based MSO. Classic Collision now operates 86 stores in Georgia, Florida, Alabama, South Carolina and Alaska. Fender Mender will transition under the Classic Collision umbrella after operating independently for more than 30 years.

CRASH CHAMPIONS ADDS COLORADO LOCATION Crash Champions has acquired Bear Creek Auto Body, an independent, single shop in Lakewood, Colo., according to a press release.

Gerber Collision and Glass has acquired Collision Works of Oklahoma, a 35-shop MSO, according to a press release. The Boyd Group announced the acquisition of Collision Works on Wednesday. Collision Works was founded in 1996 by Jacob Nossaman and steadily grew into a well-known MSO throughout Oklahoma, Kansas and Missouri. Twenty-two of the company’s 35 shops are located in Oklahoma. AUGUST

DRIVEN BRANDS HAS ADDED 57 STORES IN 2021 Driven Brands announced Wednesday that it has added 57 new stores so far this year across its three brands—Abra Auto Body, CARSTAR, and Fix Auto USA. “Each of our brands is unique and has varying regional presence across the U.S., but all brands are focused on providing industry-leading, premier collision repair experiences,” Dean Fisher, president of Driven Brands Collision, said in a statement. “We are proud to see our owner-operators maintain the highest level of collision repair excellence in their respective markets across the country, even as volume returns to normal levels due to an increase in vehicle miles traveled.” At the beginning of 2021, Driven Brands went public and

its initial public offering raised roughly $700 million.

SAFELITE ACQUIRES NEW LOCATION Safelite Group has announced its newest AutoGlass location, according to a press release. Safelite acquired Advanced Glass and Trim, located in Jackson, Wyo., in a deal that closed on July 30. Advanced Glass and Trim operated independently since 2004 and will now merge under the Safelite brand. It is Safelite’s first location in Wyoming. “We’re pleased to welcome Advanced Glass & Trim associates to the Safelite family,” said Tom Feeney, president and CEO of Safelite Group. “Open since 2004, their focus on exceptional customer service and commitment to the community nicely align with our mission and values, making this acquisition a terrific addition to our business.”

CLASSIC COLLISION MAKES ACQUISITIONS Classic Collision has acquired two Prestigious Auto Body and Painting locations in California, according to a press release. Additionally, the company announced another acquisition of Classi Auto Body in Daytona Beach, Fla. Prestigious Auto Body and Painting was independently owned in Santa Barbara for more than 30 years. Classi Auto Body was family-run and independently operated for more than 30 years. Classic Collision now has 103 locations.

EWA SAMPLES PHOTOGRAPHY

The acquisition gives the company six locations in Colorado. Crash has four location in Fort Collins and one location in Thornton.

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EDITOR’S LETTER

ON THE UP AND UP

DEFINE YOUR GOAL, AND SET A COURSE TO GET THERE If you’ve met Texas shop owner Kevin Taylor, it’s a near given that you’ll

ANNA ZECK Editorial Director The MSO Project

never forget him. From his pristine cowboy boots to his boundless energy, his presence commands a room. So, it came as no surprise when an email from him landed in my inbox with the first sentence, “If you’re in need of some content, we’ve had a lot of growth over the last year…” “Of course he did,” was my first thought as I forwarded over his email to the team. And boy, did his business grow. Taylor’s part of a rarefied group of shop owners that, regardless of circumstances, just finds a way to adapt. It could be because of his background or perhaps just his natural spirit, but looking for opportunities just seems to be a way of life for him. Head to p. 8 for contributing writer Ella Schulte’s timely and inspiring profile of Taylor’s MAACO business. Elsewhere in this issue of The MSO Project, you’ll learn about Crash Champions’ steady rise in the industry, as well as DJ Mitchell’s recent decision to sell his growing MSO to Classic Collision. That’s not to say that consolidation is the only future for smaller regional MSOs (That’s why we have stories about connecting with your employees, staffing up before a new location, and using KPIs to foster friendly competition). Rather, the point of these stories is to showcase that the future of the independent MSO boils down to understanding who you are, your market and your goals. For some, like DJ, that could mean selling. For others, like Rains CARSTAR Group and Kevin Taylor’s MAACO business, that could mean expanding while retaining what makes you great. As we head into Q4 and round out 2021, now is the time to ask yourself: What do you stand for, and how can you continue to provide that as you grow?

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TRENDS+ANALYSIS

Latest Acquisition Signals Nationwide Aspirations For Crash Champions SHOP LEADERS DISCUSS ‘SECOND WAVE OF CONSOLIDATION’ B Y PAU L H O D O WA N I C

GETTY

In July, Crash Champions acquired Signature Collision Centers, one of the largest familyowned, independent collision repair companies on the East Coast. The move brought Signature’s 24 locations under the Crash Champions umbrella and the company has continued to add more locations in August and September. It also represents the company’s first move away from the Midwest/West Coast and into eastern part of the country.

The goal of the acquisition is to further Crash Champions’ goal of becoming a nationwide brand on par with the Calibers and Gerbers of the world. “We’re wanting to grow and create a national platform as soon as we can,” Crash Champions’ CEO Matt Ebert tells FenderBender. “This is a great opportunity for us to get on the East Coast.” Ebert says the increasing shift by insurance companies to refer work to larger companies instead of the small, independently-owned shops has fueled the company’s rapid growth. In August 2019, the company had just eight locations in the Greater Chicago area. Now with 118, that represents 1,400 percent growth.

Ebert says he strategically chose to acquire a large company on the East Coast with a strong operations and leadership team in place that will quickly allow the company to acquire single-shop and small MSO operations along the coast.

‘I RAN OUT OF TIME.’

Signature’s founder and CEO, Charles “Chuck” Pipkin, will take on a “significant” ownership stake in Crash Champions and transition to a new role as an executive board member within the company, Ebert says. “[The acquisition] signals a lot of opportunity for us to now go and create some density around what Chuck’s already created,” he says.

Signature Collision Centers has locations throughout the greater Mid-Atlantic and Southeast, including in Pennsylvania, Maryland, North Carolina, Florida, and Washington, D.C. Other than a few changing titles, Pipkin’s team will remain in place with Crash Champions, as the brand works to expand its presence on the East Coast. That was an element both sides prioritized and agreed on, Ebert says. It’s part of a synergy that Pipkin and Ebert developed, dating back to 2019 when initial and preliminary conversations began. However, serious discussions between the two didn’t heat up until late last year/ early this year. Pipkin himself considered making a push to take Signature to the national level. He tells FenderBender that he saw an opportunity in the second wave of consolidation that followed the large moves by Caliber, Gerber, Abra, and Service King. He says when he saw Crash Champions and Classic Collision make moves to pursue widespread expansion, he considered it, but he couldn’t see seven to eight large collision repair brands surviving. “It’s all about relevance and strength and numbers,” Pipkin says. “The more I looked at it, I could continue to grow on the East Coast but everybody else was growing. It just made more sense to get together.” “I ran out of time. Maybe if I’d have started 10 years earlier,” he says. “The writing was on the wall with all the consolidation. It was time to team up. Matt was the best teammate I could find out there.” Pipkin says he and Ebert compliment each other well, sharing the same vision and cultural priorities. That will hopefully lead to a smooth transition, the two founders say. SEPTEMBER 2021 | THE MSO PROJECT

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F E AT U R E

OVERCOME ADVERSITY Kevin Taylor ensured that his shop didn’t just survive while navigating tough times

By Ella Schulte

Photography by Matthew Rood

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BY MID-MARCH 2020 ALL 50 STATES HAD REPORTED CASES OF COVID-19.

While other MSOs and businesses across the country shut down out of fear, Kevin Taylor did the opposite. “I’m driving around, and we have a lot of MSOs around us, and I’m seeing them close down, and I’m thinking to myself, ‘that looks like an area of opportunity for a small business like me because I know that if I’m open and, we’re here, and we don’t feel like we’re getting any cars in today that tomorrow it can change.’” As the owner and operator of MAACO Collision Repair & Auto Painting in Northwest Houston, Texas, Taylor is familiar with the grit it takes to overcome daily obstacles. Taylor currently has 26 employees and helped each one to navigate the curveballs 2020 threw by setting into motion a variety of changes since the pandemic first began. “I told them that when we have interruptions in business like this that that’s an opportunity for us to get better and make improvements on things that we don’t have time to do when we’re really really busy, and I wanted to focus on that,” Taylor says. Despite the uncertainty that ensued in the months to follow, Taylor said he wanted to keep everyone on staff, regardless of whether the money to support this goal came from his business or own pocket. This mindset, of continuous improvement, is what sets the Northwest Houston location of MAACO apart from other competitors in the area. “Having the right attitude, making goals, and being actionoriented will create change, and it can make an improvement on our business,” Taylor says. From picking up business when other MSOs closed to increases in sanitation and transportation adjustments, Taylor’s facility and employees not only grew amidst these challenges, but stayed protected as well.

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F E AT U R E

The Past

Taking advantage of this time by focusing on areas of struggle, Taylor and his staff made an already prosperous business even better. “When all of this happens, businesses really get in a pinch and when business is interrupted, there’s going to be a lot of change in business—people probably closing and things like that—and I said I think that at the end of this we’re going to be thriving, not surviving,” Taylor says. “That’s what I told them from the very beginning.” From improvements to the facility to processes the team wanted to implement, Taylor made sure to keep the workflow steady and employees engaged throughout the pandemic. Starting with a list of upgrades the staff wanted to tackle, they collaborated to come up with various tasks such as redoing the gutters and pressure washing, cleaning, and painting the entire building, in addition to cleaning, restriping, and resealing the parking lot. Employees then moved on to putting in place new processes for cleaning, photo estimating, accessing parts, and how inventory would be ordered and stocked:

concerns, and communicating the cost and/or supplemental cost with the customer, especially if they are paying out of pocket,” Taylor says.

Ride Sharing for Customers and Staff

Prioritizing that all staff and customers felt comfortable was an effort Taylor created by using a variety of services to shuttle individuals to and from the shop depending on their specific needs. “Then all vehicles were sanitized and sterilized for delivery,” Taylor says. “It seemed to work for about 95 percent of

customers, and often they would compliment our staff and business on our efforts to make everyone feel comfortable.” If a customer didn’t feel comfortable riding or was unable to bring his or her vehicle into the shop, these efforts were available.

Accessing Parts

Creating relationships with new vendors was also a necessity, as he worked to establish whether his shop’s needs and potential vendors’ capabilities were a good fit. “We were able to negotiate our current rates versus the market,” Taylor says.

Increased Sanitation

“For our office, we used commercial sanitizer daily and had a sanitation crew come in weekly to make sure all employees and customers felt comfortable,” Taylor says.

Upgraded Photo Estimating

Although Taylor’s shop has utilized photo estimating for years with both insurance and fleet partners, retail customers present a plethora of additional issues. “The main obstacles to overcome are building rapport, getting a grasp of exactly what needs to be done, getting a detailed account of the customer’s

Group Effort

Protecting his team was of the utmost importance to MAACO owner Kevin Taylor (far left) when COVID-19 hit his area. As a result, the team is better than ever.

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“Th is gave us an opportunity to evaluate this part of our business.” Not only was his staff well organized and profitable as a result, but they also expanded their list of resources for a variety of parts.

Actualizing Parts and Material Carts

Despite Taylor having implemented a variety of lean systems into the shop before the pandemic, he decided to take the opportunities it presented to integrate even larger ones. For instance, according to Taylor, “putting a cart in tech’s bay didn’t make him more efficient if he just stacked random items on it.” In this way, Taylor called for change. “We had time to set up the carts and discuss how if properly used, they could make us more organized which would equate to being faster at our jobs,” Taylor says. “We were able to discuss as a team and use trial and error to tweak the best way to use them without affecting cycle time since we weren’t buried in work.” The addition of the material carts was like that of the parts carts, except for the fact that it affected the paint line. “Again, because the workflow had slowed down, we had time to put them in and tweak what materials were in each department, shift not just was in each cart, but the location that made it easiest for paint line techs to perform their task quickly and with all the correct materials,” Taylor says. Having time to figure out what was needed, when restocking was necessary, and how to order the carts helped utilize them as an inventory control tool. “In the end, we know what should be in the stockroom at any point and time since it is now used to restock the carts, not the employee,” Taylor says. Continuously reorganizing and bettering delegated tasks in addition to the speed of processes is the best way to prepare for the unknown, according to Taylor.

A Second Look

Some of the ways Kevin Taylor’s team used downtime during the worst of COVID-19 was analyzing processes and shoring up inefficiencies.

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F E AT U R E

WORK SAFE. WORK EFFICIENT.

“I would say that we probably had more fun because we were doing something different during those couple weeks making all the improvements that we typically do on a normal day because it was something different for us,” Taylor says. After the team put in place the various improvements, it became evident to Taylor that, regardless of one’s title, every employee was learning and stimulated. “Over the last year, we were up almost 95 percent in business, and that’s with no DRP relationships.” Less than 3 percent of his business comes from DRP work, therefore the significant increase was all thanks to his decision to remain open while competitors closed.

The Now

MAACO’s success doesn’t just stop here, as Taylor now plans to implement many of the changes that his business made during COVID-19 in the post-pandemic days to follow. “We’ve been here for a while, so now we have all the advanced welding and advanced structural steel certificates and all those sorts of things,” Taylor says. “One thing I do know is that the right attitude goes a really really long way and the perception that we have is our reality.” He notes the importance of not only improving customer satisfaction but the contentment of employees as well. “Our entire staff and I discussed the fluctuations in the market and all the variables that seemed to be changing daily over the last year,” Taylor says. “I tasked them with an opportunity to not just stay relevant to our existing customers in the changing market, but how to look for opportunities to add value to customers we did not currently serve by thinking outside the box and creating business ideas that would make us easier to use for the services we offer.” Not only did these actions ensure that Taylor’s shop was the most convenient place for customers in need of repairs, but his staff made an added effort to ask more questions, listen to objectives, and openly discuss how to overcome obstacles. “In short, making our business more customer-friendly during the pandemic and spreading the word that we were not just opened for business, but that we cared enough about our customers to adapt and make them feel comfortable,” Taylor says.

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The Future

Regarding how COVID-19 became a worldwide pandemic and both local and national governments influenced what individuals did on a day-to-day basis across the globe, Taylor expects that “we’re going to see this more often.” For him, preparation is key. “As a small business owner or as anyone in a business like this, or anyone in our industry, you’ve got to be prepared for these interruptions and just kind of expect that it’s going to be a part of our world going forward,” Taylor says. As for the advice he offers aspiring employees or owners within the collision repair industry, he encourages all to look for opportunities to improve what one can control. In the long run, the sacrifice and dedication that stem from this mindset have created certainties for Taylor and his business unlike any other.

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BUSINESS BUILDING

Staff Up Before Expansion

BEING CERTAIN OF ONE’S COMPANY’S VALUES IS KEY TO HIRING EMPLOYEES IN BULK B Y E L L A S C H U LT E

WORK AHEAD.

Although the tactics used to hire an entire staff for a new location depend on the size of the building, a few preparations can be made certain. A month or two before a location’s opening, Foster likes to determine the expected workflow to help confirm how many positions he should open to potential candidates. “Generally, I like to start with one office person, being an estimator or the GM, a body tech, a painter, and a detailer, but that 14

could be beefed up depending on the size of the shop,” Foster says. Foster has previously built some of his own larger shops and knew going into each one of them how many staff members he hoped to have join the team. “I’m always interviewing for more (staff) because we set up a budget,” Foster says. “I do my numbers before that shop is even built.” For instance, even though he might only bring in one tech to start (due to numbers), he typically begins the process of looking for a second as his company begins to grow.

GET THE WORD OUT.

According to Foster, informing current staff of upcoming openings and letting them spread the news by word-of-mouth is the best tool for recruiting. Take advantage of being an MSO. “People get excited about your employees and new shop,” Foster says. “We also use Indeed, a lot of internet websites, and our vendors.” In addition to creating career paths for employees, letting current staff spread the word helps keep people on board and build up a business from within. From current staff members seeking to broaden their skill sets and looking to gain more diverse experiences and responsibilities

GETTY

Without staffing up new locations, the success of Rains CARSTAR Group would not be possible. Hiring employees, and lots of them, isn’t always easy, but for Keith Foster, with a little planning and passion, determination can pave the way. As the chief operating officer (COO) of Rains CARSTAR Group since July 2020, Foster is attentive to the culture and care the company has created. “You can tell I’m very, very, very passionate about what I do,” Foster says. Regarding how to create a new atmosphere that’s destined to thrive, he offers the following advice. So, let’s dive in.

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to finding outside hires that are interested in Rains CARSTAR Group’s mission, the possibilities are endless.

CONSIDER PERSONALITIES.

Asking oneself how potential team members might work together can help stimulate and promote a healthy workplace. Foster believes that finding a good lead is essential to the success of a well-rounded and high-performing staff. When looking for a GM, he seeks someone who is a selfstarter, has a team-oriented management style, is process-driven, and fits the company culture. This leader should be able to lead and coach his or her staff, while also doing “today’s work, today” according to Foster. He also believes in promoting from within, as the person will then already be familiar with the shop’s system, expectations, and culture. “This also sends a message that our organization is not just a job, but a career,” Foster says. “We will help you grow as far as you want to go.” Rains CARSTAR Group is continually looking for new opportunities (locations), and therefore is always continuing to grow their staff. Foster feels that the missing additions to a new team are generally already working for their organization. However, “sometimes the timing isn’t right and there is no one in the pipeline, so we have to go outside the company,” he says. Making sure staff members will work well together is also important. For instance, shop owners can typically expect a painter’s personality to be completely different from that of a body or parts technician. “You don’t want a guy that’s going to be an A personality right next to a B right away,” Foster says. “So, I try to feel out how they fit with our culture. I would take someone with a little less talent that fits our culture, they’ve got to fit what we stand for.”

KNOW YOUR VALUES AND WHAT TO EXPECT.

Be confident in your company’s culture and principles. For Foster, the No. 1 most important characteristic he looks for when interviewing a potential new hire is integrity. “Because if you lie, cheat, or steal, you don’t want them,” Foster says. Preparation for a new location pairs well with knowing a company’s values by allowing businesses to showcase their best assets in a timely manner. Here, Foster offers the following advice regarding hiring a full staff. “Know going in what your goal is to ramp up; meaning, when you start, if your goal is $150,000 per month, what’s

your ramp-up mode? Is it five months? Is it six months? Then you know what your staffing would be.” Foster says. “And be prepared to either be under that or over it, so always prepare for plan B.” Not only has Foster had shops that have taken off quickly, but he has also always kept a close eye on the logistics of his business and surrounding areas to ensure that his team can tackle any and every outcome. Rains CARSTAR Group employees also focus on caring for others like they would take care of themselves. “Families fight. So do employees—not fistfights—but have conversations that are uncomfortable for a lot of people,” Foster says. Creating a family dynamic with employees is a great start, as staff members often spend more time in each other’s company than they do with their own families. “Our culture is to make sure that everybody takes care of each other and is a team,” Foster says. He also stresses the importance of preaching the one team concept. “Talk to anybody that knows me, nobody says ‘I’, it’s ‘we,’” Foster says. Of course, while employees do receive detailed information regarding what the company stands for, “in a nutshell, it’s to take care of each other and do the right thing,” he says. Making sure employees stay connected to both one another and their superiors while navigating a new workspace is also essential. “I’m in the shop all the time, and our regional and district guys are in the shop all the time,” Foster says. “I’m CEO of the company, and I’m still in shops every week.”

PERSONALIZE EACH EMPLOYEE’S EXPERIENCE.

Shortly after compiling a staff, take the opportunity to get to know new employees on an individual basis. “What I do, and I teach our GMs to do, is get to know the people, get to know their family, get to know what they like, get a feel for them,” Foster says. Walking around the shop floor is another great way for management to familiarize themselves with employees, while also keeping an eye on things. Foster also tries to implement a bit of humor into his relationships with staff members, adding that “everything doesn’t have to be serious.” “Be lighthearted, hold your ground, but if you treat somebody like you’d want to be treated, you’re fine,” Foster says. “I always teach my leaders that leaders lead people, not themselves.” SEPTEMBER 2021 | THE MSO PROJECT

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BUSINESS BUILDING

Every(body) Wins

HOW TO TURN YOUR KPIs INTO FRIENDLY COMPETITION

OPTIMIZING ORGANIZATION

B Y E L L A S C H U LT E

If anyone knows how to best make use of key performance indicators (KPIs), it’s Robert Rick. Rick has been the strategic account manager for Axalta Coating Systems, Ltd., also known as Axalta since May 2014. His ample experience paired with throughput and determination fosters a competitive and infectious environment for all. From KPIs answering commonly asked questions to incorporating visuals that stimulate friendly fire, there’s no shortage of potential possibilities. Here’s how he does it.

DEVISING A PLAN

“If you think of a KPI, it is a historical, statistical result,” Rick says. “It’s documenting a number from something that someone did.” Asking the right questions is a great place to start. “Do you have the right equipment?” “Do you have the right regulators?” “Do you have the right PSI?” “Do you have the right training?” In simplest terms, Rick believes that KPIs allow individuals “to peel the onion back to find out the root cause of what’s causing an unacceptable KPI.”

CRAFTING THE COMPETITION

Not only can owners and operators seek areas of opportunity to work on, but KPIs can also be reevaluated that don’t align with the industry standards or top 10 percent of shops, according to Rick. From there, benchmarks can be established. “The key point then is we want to dollarize that improvement to show the owner, operator, and the shop that because of your capabilities to improve the application of paint, you’ve now reduced the cost per ticket by X amount of dollars,” Rick says. “That’s huge.” Not only are these friendly competitions instilled between painters within a shop, but they can also foster more competitive and successful workplace 16

“modifications for improvement” are then made, according to Rick.

environments across the board with all shops in a multi-shop organization. “So, what we’ve found works well is that you might give an award for who is doing the best, but you want to also give an award for a pat-on-the-back biggest improvement,” Rick says. “Because now everybody wins. Everybody wins.” Implementing multiple forms of visual competition or incentives, as simple as a gas card, can increase productivity and drive.

PLAYING THE PARALLEL

This belief is like that of the game of football. “I use the analogy of a football team often where there are 11 people out on the field and if one person goes offsides, that one person isn’t penalized, the whole team is penalized,” Rick says. “So, the game of work should always be something geared toward the whole team winning.” Process versus outcome goals is a key component to KPIs in addition to determining whether competition is measurable. A great place to start, according to Rick, is visuals. Before KPIs can be implemented, Rick recommends meeting as a staff to determine things that would be classified as statistical information at which to look. He argues that although people can manipulate stats, they can do so only so far. Once a variable has been tracked,

Shops can also use KPIs to stay in touch with employees by catering to their key factors. “They have to be visual; they have to be agreed upon, they have to be achievable,” Rick says. “They have to be something that is shared regularly, not kept a secret so that people know they’re doing a good job or improving or maintaining and sustaining.” Rick and Axalta staff also utilize SMART goals to ensure that each goal is specific, measurable, achievable, relevant, and timely.

MOVEMENT MEETS MOTIVATION

“One of the things that keeps me very motivated, and people like myself, is when we’re able to share tasks, suggestions, or standard operating procedures, and we’re able to convey it, share it, and help the customer implement it,” Rick says. Once implemented, there is then a result of improvement, according to Rick, as a noticeable difference has been made. He notes that while of course, the company creates success, the true key is helping people.

A PLACE TO START

There’s a Stephen Covey analogy that Rick frequently points to: A man stumbles across a woodcutter cutting wood tirelessly in the woods. He suggests that the woodcutter take a break, get a sip of water, and sharpen his saw and blade. However, the woodcutter persists, claiming he has to get it done. Rick takes Covey’s wisdom to heart, leading by example. “The reality is, we all have to stop, reenergize, look at what we’ve done, look at what we’re doing, and sharpen the saw which will allow us to be more efficient, more productive, more successful, happier, etc.,” Rick says.

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PRO SPOT CONTINUES TO DRIVE VEHICLE COLLISION REPAIR INDUSTRY FORWARD An Industry Update from Ron Olsson, President, Pro Spot International In a year that we continue to press forward and run fast, we’ve achieved a number of exciting milestones so far in 2021. First, we’ve fine-tuned our i4S Smart Spot Welder to make it the best in its class and it leads the industry in technological advancements. We’ve also added an industry first 5-year warranty to the i4S, as we believe it is the best spot welder in the business. We are proud to stand behind this product with this warranty. Additionally, we’re continuing to develop new products and services. We’ve added new authorized distributors in our Northeast Region, opened up training centers in Florida, Tennessee and Colorado, signed, and will continue to sign, new OEM approvals, and strengthened our leadership teams in manufacturing, engineering and marketing at our Carlsbad, CA headquarters. I’m very proud of our team and our current product offerings that have been leading our industry for so many years. Knowing what we have in development and the new technologies that we are working on, we will continue to revolutionize the collision repair industry for many years to come. And it means so much to all of us at Pro Spot to be a “Made in America” manufacturer because of the competitive advantage that this brings. We’ve been through a lot together and today, we’re stronger than ever. We appreciate your business over the last 30 years and know that we are behind you 100%...we will never let you down. Please do not hesitate to contact our team, or me directly, and let’s continue to build the future together! I look forward to meeting with you at one of our upcoming tradeshows over the next few months. Sincerely Ron Olsson, President

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IDEA SHOP

How to Increase Employee Engagement

6 EASY WAYS TO CONNECT WITH YOUR TEAM Connecting with employees is key to creating bonds amidst navigating a larger workplace. That’s according to Erica Phillips, a marketing and employee experience manager. Phillips has been with D&S Automotive Collision and Restyling for nearly five years. The role consists of catering to the company’s marketing and HR needs at their three locations, while her home office is located at headquarters. D&S currently has around 80 employees, three of whom work under Phillips. From scheduling employee-based learning opportunities and incentives to encouraging all coworkers to embrace one another’s ideas, Phillips says she wears a lot of hats. However, it’s clear that in every role she fulfills that she goes above and beyond, no matter the circumstances, to build meaningful and genuine connections with her employees.

UTILIZE AN OPEN-DOOR POLICY.

A S T O L D T O E L L A S C H U LT E

IMPLEMENT WEEKLY OR MONTHLY CHECK-INS.

I try to make a point to get to know my employees on a more personal level by checking in with them at least once per week to get to know more about them and see how their families are doing. It can be significantly more difficult to keep in touch with a large staff at multiple locations. However, making a consistent effort to talk with employees about topics other than work for a few minutes each week or month is a great way to get to understand and learn more about them.

CREATE A CULTURE COMMITTEE.

We have a culture committee here at D&S, consisting of a group of volunteer employees that are from a variety of departments. Once per month, we meet to discuss potential different employee events and anything pertaining to culture. Typically, aside from the pandemic, each month an employee social event is held. Some examples include bowling, a cornhole tournament, Lake County Captains game, axe throwing, trunk-ortreating, and Friendsgiving. While some events include spouses and kids, others are employee-only, opting for variety. The committee is beneficial in the sense that it brings together a diverse

mistakes at work, but if you’re honest and upfront about them, that’s going to turn out better than if you try to hide or work around them. Respect is also huge. We spend so much time together, sometimes more than we spend with our families, so it’s important to appreciate and listen to each other. Taking the time to define your values in addition to sharing them with coworkers is a great way to express your roots without offending the beliefs of others. Unlike opinions, which can be formed, values are desirable traits one holds and has always held from within.

group of employees who share what they think everyone would enjoy. It also helps to plan activities that appeal to many of our staff members while creating culture-building initiatives through motivating and increasing engagement.

INCENTIVIZE EMPLOYEES.

As a result of the culture committee, we also have an employee of the month. In addition, we celebrate birthdays with cupcakes. These small additions make all the difference. Not only do they help foster a tightly knit community within the workplace, but they give everyone something to look forward to, as well. I try to include that personal touch with my employees, too. For instance, a coworker of mine had a daughter, so I made sure to get him a little gift basket for her. Creating a monthly or yearly calendar to organize and guarantee the recognition of upcoming employee milestones, such as work anniversaries and birthdays, helps ensure that everyone is included. Although staying on top of everything isn’t always easy, especially when being a part of a larger company, there are simple efforts such as these that add up.

VOCALIZE YOUR VALUES.

Honesty is a big one for me. We all make

My door is very rarely shut. I encourage new ideas. I tell my employees all the time that if they have an idea, I want to hear it because that’s why we hired them. Their fresh perspectives and diversity in opinions are highly valued. So, I make sure to reiterate verbally that they can come and talk to me about anything. If your employees give you an idea, give it a shot if it’s something that sounds beneficial, and you haven’t tried before. When you never actually act on anything, then you can say you have an opendoor policy as much as you’d like, but employees won’t continue to come to you with ideas if they consistently get shut down.

INTRODUCE ‘LUNCH AND LEARNS’

Sometimes the “Lunch and Learns” I schedule are specific to work tasks, such as discovering more about Microsoft Office, but other times they’re regarding more personalized skills, like stress or time management. These lunches are scheduled monthly and consist of catered food. In addition, they bring in a professional aspect while also allowing employees the opportunity to bond over learning new things together and talk about subjects they might not normally discuss during typical work hours. SEPTEMBER 2021 | THE MSO PROJECT

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SNAP SHOP

SNAP SHOP: FIX AUTO ANAHEIM NORTH

OWNER DAVID CAULFIELD TAPS INTO INNOVATION TO ENSURE HIS SHOP EXCELS B Y E L L A S C H U LT E P H O T O S C O U R T E S Y O F F I X AU T O A N A H E I M N O R T H

David Caulfield always thought he would be where he is now. However, his journey to get here hasn’t always been easy. Caulfield has been the owner of Fix Auto Anaheim North since February 2018 and Fix Auto Express Anaheim North since August 2020. He feels that curb appeal, cleanliness, transparency, and process set apart Anaheim North from other businesses in the area and across the country. As a franchisee for Fix Auto, Caulfield sold his previous ownership in Fix Auto Yorba Linda, Fix Auto Orange, and Fix Auto Santa Ana in 2017 to create a new take on the auto body industry. “I love the business. I love the people that work here,” Caulfield says. “We’ve built off all of that, and it’s a pleasure to be in this business. You don’t hear that all the time, but it’s 45 years later, and I’m still in it, and I’m grateful for it.” So, let’s break down the specifics of what sets this business apart.

Transparent Transactions “Customers and adjusters are caught off guard regarding how clean and organized it is and how transparent we are,” Caulfield says. Transparency is huge. “We have lots of glass and don’t hide anything from anybody,” Caulfield says. “We feel that transparency is a great marketing tool because people know that you’re not shy to share the ingredients of what you’re doing.” With a clientele of all demographics, Caulfield and his team put their best foot forward to cater to the community’s needs. “Anaheim has been really good to us and people that live in Anaheim are very loyal to local businesses,” Caulfield says. Advanced Technology Eliminates Worry From CCC ONE utilized as a management system and CCC and Mitchell RepairCenter for estimating, to the Sherwin-Williams Collision Core Quality app, Caulfield knows his way around the certifications and technology his staff utilizes daily. According to Caulfield, “Collision Core Quality is used to verify the existence and the quality of the products and services that we sell on every single car, for every single item.” The Sherwin-Williams Collision Core Quality app is available to all collision shops, regardless of whether they use Sherwin-Williams products. Together, these systems ensure that each customer’s experience runs smoothly. 20

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Sleek Meets Practical Design Caulfield is also responsible for designing the building. Not only does he aim to be transparenty with the community, but he also created a new floor plan, breaking from the traditional layout. Instead, the cars serviced at Fix Auto Anaheim North can come in and experience a first-come, first-serve service by using a plethora of advanced technology. Understanding the Shop Floor “Only vehicles with an authorization to repair can enter the plant floor,” Caulfield says. “Be it an initial teardown or a full repair process; the plant is designed to repair vehicles, not store them.” Vehicles first enter the shop through a customer care check-in process. After, all vehicles are immediately pre-detailed and sent back to the main lane, according to Caulfield. “The process starts with loading the vehicle on a set of four skates that then slide along the built-in floor tracking sysSPECIALIZED tem,” Caulfield says. COLLISION CENTER Not only was this system installed (high severity repairs) within the disassembly lanes to allow for, LOCATION: “first come, first served compliance conAnaheim, Calif. trol,” but the workplace is then able to be OWNER: David Caulfield expanded as needed, depending on the SIZE: specifics of each repair. 20,351 square feet “Once disassemble is completed, the veCYCLE TIME AVERAGE: hicle will move backward to the mechani12.9 cal department which is the most likely AVERAGE RO$: next phase,” Caulfield says. “From there, $5,645 the vehicle moves backward once more to EXPRESS another set of tracks that it can hop on to COLLISION CENTER slide itself to either a structural, frame, cut (Low severity repairs) fit and weld, or metalsmithing stall.” LOCATION: Anaheim, Calif.

The Final Touches After vehicles are repaired in such a way that quality is assured, Caulfield says they are then painted in one of two drive-thru spray booths, both of which have exits leading back to reassembly. “The disassembly and reassembly process on a high severity repair consumes at least 50 percent of the vehicle’s actual repair time,” Caulfield says. “It’s these two processes that make or break proficiency in a repair shop.”

OWNER:

David Caulfield SIZE:

4,500 square feet CYCLE TIME AVERAGE:

4.6

AVERAGE ROS:

$2,218

Annual combined sales for the startup model currently are $4.8 million

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DJ MITCHELL GROW TH PL AN

The Reality of Selling

3 WAYS TO AVOID A COMPLICATED SALE B Y DJ M I T C H E L L

Well, as you might have heard by now, my dad and I sold MITCHCO Collision Repair. They’re officially part of the Classic Collision family at this point. It’s funny, despite our history in the industry, we had no plans whatsoever to sell these shops. We bought really nice facilities, we have a great team and we put a lot of money into them. As we expanded, though, it became less and less feasible for us to be on the road so much—especially after I got married last November. As we were trying to figure out a solution, that’s when Classic Collision came along and reached out to us. It was out of the blue, but we clicked right away, and we were able to put together a deal and close pretty quickly.

conversation, it’s never as bad as it is in your head. My recommendation is to tell people as early as you can. We’ve bought shops where we walked in and somebody said, “What are you doing?” And the owner goes, “Well, they just bought the shop. Here are the keys.” That’s probably the worst way to go about it because it raises so many questions. The earlier you tell them, the shock kind of wears off. Then they can sit and realize, “OK well, it’s super hard to find people; they’re probably not going to fire me and replace me with somebody else.” I can say this with experience, by the way, because my dad and I do get picked on. We’ve gotten a reputation for building up shops and then selling them. This last time at MITCHO, everybody we hired said, “When are you going to sell us?” We try to be honest with everybody. You might not believe me, but we’ve never once sat down in a room and said, “OK, let’s buy five shops in this area and then

DJ MITCHELL is the vice president and co-owner of MITCHCO Collision Repair, a regional MSO in Florida. He also hosts a podcast for FenderBender’s The MSO Project. E M A I L : D J M I T C H E L L @J H C C . C O M COURTESY DJ MITCHELL

So, here I am, 31 years old, figuring out my next move. It’s funny, my dad’s always been into real estate and I asked him one day, “Do you ever get sad when you sell? Are you going to miss this house or this shop?” And he told me to take the emotion out of it. A business, a building, a property—it serves a purpose and when it’s served its purpose, it’s OK to move on. We see that a lot with shop owners: I’ve put my heart and soul in this place. I’ve been coming here every day at 6 a.m. and I haven’t taken a day off. This is my pride and joy. When you do that, you tend to overvalue. Just because it means so much emotionally to you doesn’t mean it’s worth as much as you think it is. And that puts shop owners in a bad spot because now they want too much for something and they can’t always sell. A lot of times, shops do things that muddy up their books. If your numbers are not right, then you can’t value the business properly. You know, we’ve bought shops before and the owner will pull out a notebook from their desk and go, “These are all the cash jobs.” Well, that’s great, man, but it’s not in your books. There’s a saying, and it’s kind of a joke, that you don’t have to get ready if you stay ready. Even if you don’t want to sell it today, start trying to clean all that up. Because you never know when somebody is going to call you. You never know when a change in your life is going to happen. Having conversations with staff after selling is hard, for sure, but like any hard

sell them.” We try to buy good shops, run them properly and profitably. If you have something that’s good and making money, people want to buy it. And most people can understand that. If somebody called you up and said, “Hey, listen, I’ve got this great place at a great place; it’s a perfect opportunity for you and your family”, you would consider it. So when we explained it like that, most people understood it. As soon as we had an agreement in place, we told our employees right away. We made a list of people to call, split it up and started calling. We asked them not to say anything until we distributed an email to everyone and from there, we started taking phone calls from anyone who had questions. We also tried to make everyone on the leadership team from Classic Collision as available as possible to the team. I mean this with all of my heart when I say that the last two times we sold, we thought about every single person and how it was going to affect them. We always say, “What are you going to do with our people? This person does this. This is a position that’s specific to our company. Do you have something like this? Where will you put this person?” It’s important, for anything you do, to show genuine care for your people and that will pay dividends in how it plays out.

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