Another look at business culture and its influence

Sept. 1, 2016
The main elements that affect a business's culture include learning, precision and detail, outcome and results, people and collaboration and teamwork.

Anywhere people gather there are expectations, though many are unwritten or even unspoken. For example, we would not dress the same to attend a football game as we would if we were attending a formal business dinner. If you did, those in attendance would likely send signals to you that you are dressed odd or inappropriately. Those recognized as new to a group are expected to learn quickly what is expected of them in the way one acts or in the way they dress and adapt to the “norm.”

Business culture defined

Each automotive repair business has its own unique personality, just as we do as individuals. This personality is its business culture. This culture is often invisible or not recognized by those working in it, but it is a powerful force that dictates the success of the business, including employee engagement and retention, customer service, internal and external relationships and quality of work being produced. It truly dictates whether a business will fail, survive or be wildly successful. When business culture is ideal, it become a sustainable strength, often centered on its willingness to learn and share knowledge.

In their book, Creating a Learning Culture, Marcia Conner and James Clawson describe culture as follows:

“Culture can be defined as a pattern of learned assumptions that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to the problems of survival and integration.” 

Within an automotive repair facility, you can quickly begin to think of possible “learned assumptions” that may be dictating the way its employees dress and how they treat each other and customers. There are number of elements that play deeply into these assumptions and will determine a business’s level of success or ultimate failure.

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Elements of a business culture

The keystone of all elements:  Learning – In an automotive repair business, this single element of its culture truly determines its success. Learning is the only source of a sustainable competitive advantage.  In our industry, everything is changing rapidly, including vehicle technology, repair technology and approaches, tools and equipment, shop layout, management approaches and more. Businesses that can learn the most and the fastest will out-pace and ultimately out-compete its competitors. As you will notice in the AMi Core Belief, knowledge equals competitiveness; learning then is the only source of a sustainable competitive advantage. I-CAR offers a great online course on “Implementing a Learning Culture” that is highly recommended and can be found at www.i-car.com.

There are several additional sub-elements to the element of learning and that is the need to share what is learned. An automotive repair facility that expects its employees to learn all they can and then share what they have learned with one another maximizes their Return on Investment of training. 

Precision and detail – This element determines the business’s quality of work. A business that puts a high emphasis on precision of a repair has better CSI scores and typically understands the need to learn how a repair should be made to me considered safe and proper. 

Outcome and results – A repair business that excludes precision and detail and focuses only on moving cars through the shop, often make quality less important. They will do whatever it takes to get a repair job and get it out the door — even if they are not properly trained or equipped to do so.

People – This element, when placed in proper perspective, relates to a business understanding and appreciating its employees and customers, not just for what they can get out of them, but also for who they are and what they contribute to the business, team and community outside of production. Repair businesses that see employees and customers only from a production perspective struggle with employee engagement and retention as well as customer retention and low CSI scores.

Collaboration and teamwork – Historically, repair facilities often create internal competition between technicians, which on the surface seems to increase production. However, from a cultural perspective, it undermines the business’s overall ability to grow, meet overwhelming demands and create a working environment that exceeds historical beliefs around production, quality and employment satisfaction.  Repair businesses that structure and reward teamwork and collaboration (i.e. rewarding employees who learn and share what they have learned with one another, rather than competing with one another) has proven to be the successful businesses of today and tomorrow.

Most automotive repair businesses place different values on the elements outlined. They may be strong in a positive way in a couple elements, while weak in others. Regardless of how these elements are perceived, they influence decisions and attitudes and always determine the business’s future. Being aware of these elements of your culture and finding the balance and proper perspective between them can really change your organization forever.

It is important to begin to understand organizational culture and as a result, one can better identify and address strengths and weaknesses within the business.

About the Author

Jeff Peevy

Jeff Peevy is the president of the Automotive Management Institute. He is a well-known industry speaker and Learning Culture advocate. In his 35-year industry career, Jeff has held positions from collision technician to president and has been involved in industry training and education for over 20 years. Jeff is a member of the Board of Trustees for the Collision Industry Foundation and Executive Board of the National Auto Body Council.

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