Developing a Performance Improvement Plan

Inefficient and unproductive work habits cannot be ignored, and shop owners and managers should always be working to improve technician performance.

According to Leroy Rush, business consulting services manager at Sherwin-Williams Automotive Finishes, ignoring technician deficiencies is not only a poor staffing practice, it can also create lost revenue—and lead to turnover.

“The cost of turnover is both lost productivity and lost profitability,” he says. “You need to maintain business continuity. Day after day, the business has continuity. Versus with turnover, the business has disruptions.”

Implementing a performance improvement plan can help. A performance improvement plan is used to specify a problematic area for one specific employee, outline a set of steps to improve, create a timeline for improvement, and establish a set of coaching sessions to monitor and track progress.

“When you tell an employee that they’re underperforming or not delivering in an area and you simply verbalize it, it really holds no weight,” says Richard Pannazzo, senior director of vendor relations and field operations at Fix Auto. “But if you sit down and discuss very specifically the behaviors or the actions that are not meeting standards and what the actual standard is and document that on paper, you have a higher chance for success.”

Rush and Pannazzo discuss eight easy steps every shop owner can take to develop and execute a performance improvement plan successfully.

1. Set performance goals.

Rush says it’s nearly impossible to identify performance deficiencies without setting performance goals first. He says those goals are driven by the job description and the key performance indicators (KPIs) your shop tracks. They should then be addressed in an annual performance appraisal, where goals are discussed and performance feedback is delivered. “Within that, we would derive our employee improvement process,” he says.

2. Identify the deficiency.

Pannazzo says to drill down the deficiency as specifically as possible. If possible, use KPIs or customer satisfaction index (CSI) scores to find the root of the problem. Using reports and numbers is also a way to present the problem in an objective manner. For example, Rush says that if the cycle time is lacking, dig deeper into the number and look at the individual technician’s efficiency or CSI scores.

“Let’s say it’s a cycle time challenge. We would identify that through measurement, not just subjectively,” says Rush. “It’s not, ‘It seems like you don’t fix cars fast enough.’ We need to sit down with the employee and demonstrate we have data that is telling us your cars are taking too long to repair based on our expectation.”

3. Meet with the technician.

Pannazzo says there are a couple key steps to nailing the correct tone during the meeting.

“You never make it about the person,” he says. “It needs to be about the car, the quality of the product, and the customer.”

Don’t use the words “you” or “you are” to avoid seeming confrontational or accusatory. Instead, pose the issue as a question to get their buy-in.

“You’re saying, is this something we can work on?” Pannazzo says. “Nobody wants to be a bad technician or estimator. People feel important when they’re needed or wanted. Thrive on that and say, I could really use your help.”

Pannazzo says a disciplinary step should be reached only when all other options have been exhausted.

4. Create an action improvement plan.

Pannazzo says it’s important to first understand the issue completely and then clearly outline the steps to improvement in an action plan. Rush says to develop the plan together and coach the employee. Start by looking at the data together and talking about root causes of the deficiencies. Then, compile everything into a written action plan.

That plan should consist of the following components:

A description of the deficiency. Rush says to outline the underperformance and include a few data points demonstrating the issue.

Answers to the “Five W’s”: What’s wrong, why is it an issue, what happens if it doesn’t get fixed, who does it affect, and who do you need involved to improve? Pannazzo says asking those questions can be an effective way to guide the conversation.

A list of specific action items. Rush says to brainstorm ways together to identify how the objectives can be accomplished. Then narrow those ideas into specific steps, tools and support needed for improvement.

Additional support needed. Rush says to ask the employee what support he or she needs from management. Include any action items needed from other staff members on the plan.

The owner of each action item. Pannazzo says putting a name next to an item creates accountability, for both the owner and the employee.

Due dates for each action item. Set specific time periods for the technician to accomplish his or her goals. If it’s a larger performance issue where KPIs will be measured, Rush says the data needs to have enough time to cycle and refresh. Rush recommends a goal of 30 days to start seeing results and 90 days to accomplish the goal before moving on to the next expectation.

A signature. Have the employee sign off on the process, and sign it yourself.

5. Consider how you can help.

Pannazzo says to take an objective look at the situation and ask yourself if you’ve done everything you can to make that person successful. For example, have you provided all the tools, training and support you can? If not, add any action items you can take on as an owner.

6. Set up coaching sessions.

To monitor progress, set up a series of minimum weekly coaching sessions. When setting up coaching sessions, consider your overall timeline for employee improvement.

“If this is something you’re trying to fix in two weeks, then a weekly check-in isn’t going to work,” Pannazzo says. “I probably need to meet with you every morning.”

The meetings can be brief, but Rush says the key to success is the tone of the message.

“I’m here to help you and coach you, not criticize you,” he says. “We talk about, what can I do to help you? If he knew what to do, he already would have improved it.”

7. Pair them with a coach.

If applicable, Pannazzo says pairing the technician with another employee who could act as a coach can be an effective way to quickly improve performance. He notes that the coach needs to be skilled at working with others or an expert in the specified area of improvement. To get direct feedback on the mentorship process, Pannazzo says to individually check in with both the coach and the trainee on a weekly basis.

8. Utilize KPI reports.

Pannazzo says setting up daily reports to send to the employee allows them to easily track their improvement. During weekly coaching sessions, use the reports as a tool for guided discovery. Take a look at a few specific jobs and discuss what went well, what didn’t, and how the employee could improve performance next time.

Continue the performance appraisal process.

Rush says performance improvement plans should be ongoing and shouldn’t be reserved for technician deficiencies.

Rush says to continue setting goals for employees and to discuss and document those goals during annual employee performance reviews.