October 20, 2023

61. Fixed Ops 5- Old leadership VS New leadership with Tully Williams Parts and Service Director with The Niello Company

27 minutes

. Tully Williams acknowledges that change can be hard but emphasizes the need to prove that the old way is not effective. He explains the importance of focusing on driving more customers into the service drive as it pays the bills. Tully also highlights the significance of doing what is right, selling technician recommendations they would give their own family members. They discuss challenges in getting everyone on board with this new approach.

Tully shares examples of their success in selling maintenance services rather than unnecessary repairs, which drives repeat and referral business. He mentions facing resistance from OEMs who prioritize high labor rates rather than customer satisfaction. Corey draws a parallel between Tully's ideas and "Moneyball," where unconventional strategies were initially criticized but eventually proved successful.

They discuss setting up advisors for success by understanding technician capacity and adapting back counter ratios accordingly. The conversation concludes with Corey asking about Tully's evolution into this leadership style, which he attributes to Randy Brinkman breaking down traditional metrics like gross profit into hours-based focus.

Tully Williams has been advocating for a new way of thinking about dealership operations for the past 20 years. He emphasizes the importance of knowing your hours capacity and tracking it daily to stay on pace. Tully believes in paying technicians for inspections and videos to ensure quality work and increase efficiency. He also discusses the impact of younger employees on the auto industry, emphasizing the need for respectful work schedules and clear succession plans.

Tully Williams emphasizes the importance of showing young people a pathway to success and how they can earn $55 an hour in their careers. He discusses different career paths within the company, such as service technicians and parts department employees. Tully also advises focusing on hours capacity and using pay plans based on the hours forecast. Corey Smith appreciates Tully's insights and asks for three takeaways from this episode, including knowing the monthly hours capacity, having written plans for all positions, and aligning pay plans with the hours forecast.

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