Maintenance shop managers are trending toward two distinct skill and compensation classes. There are the "haves" and the "have nots."
The "haves" aggressively embrace and implement changes and earn over $100,000 per year. The "have nots" aggressively resist and undermine changes and earn under $80,000 per year.
The retirement of WWII-generation owners and managers and their associated needs to own and control everything has made dinosaurs of many shop managers who still apply these high-cost, out-of-date practices.
These managers perform most activities in-house using excess capacities of assets and labor.
They also apply heavy-duty, brick and mortar business models. This asset-intensive, excess-capacity business model scores very low when measured using the 17 key business ratios and world-class Fortune 500 company management practices, including minimizing investments in non-core and near-core business activities.
These managers tend to resist doing more with supplier-owned assets and employees.
Physically touching assets and paper-driven business management models are being replaced rapidly with electronically touching assets and paperless business management models. Many managers are unwilling to learn how to use these high-tech tools. Managers resisting change risk making their companies financially and operationally uncompetitive in the future. In effect, these managers are more interested in preserving their current collective "lifestyle" rather than the long-term future of their companies.
Most equipment, fleet and shop managers are not optimizing their compensation, decision-making control and careers. Their only job security is between their ears and their documented track records of reducing cost and increasing productivity, quality and safety.
Most shops are reactive and operate in perpetual crisis mode. In world-class shops, 70% of activities are planned and scheduled and 70% of repairs are performed before failure. If you want to make $100,000 as a shop manager with 90% decision-making control, you must structure the shop support function to cope with long-term mechanic skills shortages.
You must also have financial and business management skills.
The integrated fleet and shop management system includes vehicle and equipment end-users, which are a major cause of excess costs and inefficiencies. GPS tracking, onboard monitoring, messaging and performance measuring devices, and shortest/quickest routing software are changing shop managers' job descriptions. The future managers must help senior management improve mobile work crew financial and operational performance by applying these new technologies.
Few shop managers today have 90% decision-making control including control over long-term, strategic decisions and major budget and operational decisions.
Employers are willing to pay up to $80,000 for managers who make up to 50% of the decisions. In reality, these managers are administrators of others' policies, practices and procedures. Employers are willing to pay over $100,000 for managers who make up to 90% of the decisions. These are the true managers who establish their own world-class policies, practices and procedures.
Bottom line: If shop managers prove they can significantly reduce costs while taking on additional responsibilities, they increase their value to current and prospective employers. Proven cost-reduction track records are the most powerful tools when negotiating compensation and control increases and promotions with employers and prospective employers.
Kelly Walker is president of Kelly Walker Associates, a Dallas-based career development firm for equipment managers. He can be reached at kellywalker@kellywalker.com
The "haves" aggressively embrace and implement changes and earn over $100,000 per year. The "have nots" aggressively resist and undermine changes and earn under $80,000 per year.
The retirement of WWII-generation owners and managers and their associated needs to own and control everything has made dinosaurs of many shop managers who still apply these high-cost, out-of-date practices.
These managers perform most activities in-house using excess capacities of assets and labor.
They also apply heavy-duty, brick and mortar business models. This asset-intensive, excess-capacity business model scores very low when measured using the 17 key business ratios and world-class Fortune 500 company management practices, including minimizing investments in non-core and near-core business activities.
These managers tend to resist doing more with supplier-owned assets and employees.
Physically touching assets and paper-driven business management models are being replaced rapidly with electronically touching assets and paperless business management models. Many managers are unwilling to learn how to use these high-tech tools. Managers resisting change risk making their companies financially and operationally uncompetitive in the future. In effect, these managers are more interested in preserving their current collective "lifestyle" rather than the long-term future of their companies.
Most equipment, fleet and shop managers are not optimizing their compensation, decision-making control and careers. Their only job security is between their ears and their documented track records of reducing cost and increasing productivity, quality and safety.
Most shops are reactive and operate in perpetual crisis mode. In world-class shops, 70% of activities are planned and scheduled and 70% of repairs are performed before failure. If you want to make $100,000 as a shop manager with 90% decision-making control, you must structure the shop support function to cope with long-term mechanic skills shortages.
You must also have financial and business management skills.
The integrated fleet and shop management system includes vehicle and equipment end-users, which are a major cause of excess costs and inefficiencies. GPS tracking, onboard monitoring, messaging and performance measuring devices, and shortest/quickest routing software are changing shop managers' job descriptions. The future managers must help senior management improve mobile work crew financial and operational performance by applying these new technologies.
Few shop managers today have 90% decision-making control including control over long-term, strategic decisions and major budget and operational decisions.
Employers are willing to pay up to $80,000 for managers who make up to 50% of the decisions. In reality, these managers are administrators of others' policies, practices and procedures. Employers are willing to pay over $100,000 for managers who make up to 90% of the decisions. These are the true managers who establish their own world-class policies, practices and procedures.
Bottom line: If shop managers prove they can significantly reduce costs while taking on additional responsibilities, they increase their value to current and prospective employers. Proven cost-reduction track records are the most powerful tools when negotiating compensation and control increases and promotions with employers and prospective employers.
Kelly Walker is president of Kelly Walker Associates, a Dallas-based career development firm for equipment managers. He can be reached at kellywalker@kellywalker.com
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