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    Sharpe BMW Case: Presented by

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    Md Masum
    The document discusses interventions to improve customer satisfaction scores (CSI) and technician motivation at Sharp BMW dealership by changing their goal setting and reward systems, such as setting CSI goals for technicians and providing bonuses based on accumulated CSI scores to incentivize focusing on customer satisfaction instead of just job completion. It also considers sharing service facilities with another dealership to reduce costs as a strategic intervention.

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    Sharpe BMW Case: Presented by

    Uploaded by

    Md Masum
    32 views18 pages
    The document discusses interventions to improve customer satisfaction scores (CSI) and technician motivation at Sharp BMW dealership by changing their goal setting and reward systems, such as setting CSI goals for technicians and providing bonuses based on accumulated CSI scores to incentivize focusing on customer satisfaction instead of just job completion. It also considers sharing service facilities with another dealership to reduce costs as a strategic intervention.

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    10990257

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    The document discusses interventions to improve customer satisfaction scores (CSI) and technician motivation at Sharp BMW dealership by changing their goal setting and reward systems, such as setting CSI goals for technicians and providing bonuses based on accumulated CSI scores to incentivize focusing on customer satisfaction instead of just job completion. It also considers sharing service facilities with another dealership to reduce costs as a strategic intervention.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views18 pages

    Sharpe BMW Case: Presented by

    Uploaded by

    Md Masum
    The document discusses interventions to improve customer satisfaction scores (CSI) and technician motivation at Sharp BMW dealership by changing their goal setting and reward systems, such as setting CSI goals for technicians and providing bonuses based on accumulated CSI scores to incentivize focusing on customer satisfaction instead of just job completion. It also considers sharing service facilities with another dealership to reduce costs as a strategic intervention.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 18

    Sharpe BMW Case

    Presented
    By
    Tyler Houska,
    Kris Kennedy &
    Toufiq Khan Majlis
    Case
    Brief
    q
    Sharp BMW is part of Serra Automotive Group

    q
    Only Dealership of BMW within the group

    q
    Service department is primary source of revenue for Sharp
    BMW

    q
    82% absorption rate
    ü
    Service department was targeted to absorb all overhead,
    meaning new car sales are pure profit.

    Organization Industry People


    Sharpe BMW
    Sharpe BMW Automotive Dealership
    Service Department
    Case
    Brief
    Organization Structure of Sharpe BMW
    Case
    Brief
    Revenue Structure of Sharpe BMW
    Case
    Brief
    Open Systems Model
    Case
    Brief
    Open Systems Model

    Environments The accepted way the industry does it

    Customer pay jobs pay more technicians


    Inputs
    than warranty pay jobs

    Transformations Technicians are not motivated by CSI on


    (Social Component) customer pay jobs

    Compensating technicians better, may


    Feedback positively affect CSI score
    Case
    Brief
    Technician Pay Structure
    q
    Hourly rate stays same ($13/hour)

    q
    Two types of jobs: Customer Pay or Warranty Pay

    ü
    Customer Pay = Mitchell Guide to Auto Repair (rate was higher)

    ü
    Warranty Pay = set by dealership (rate was lower)
    Interventio
    ns Change Intervention
    Intervention 1: Strategic
    (Part 6, Page 568) Strategic Alliance

    q
    Share a service facility with a Buick dealership within the Serra group

    Pros Cons
    q Financial savings q Management complexity

    ü Cost savings on rent/ownership of q Facility organization (separating Buick


    facility vs. BMW jobs)

    ü Equipment was shared q Organization and management of


    finances
    q Sharing work force resource
    (technicians were shared on non-
    specialized jobs)
    Interventio
    ns Resource Intervention
    Intervention 2: Human
    (Part 5, Page 422 & 431)
    Goal Setting and Reward Systems
    q
    Goal was set on a group level

    q
    Goals were not discussed/set for technicians

    q
    CSI was means to gauging quality of work service department was
    performing

    q
    BMW rewards dealerships to meet CSI scores -
    ü
    Financially
    ü
    Sport Activity Vehicle (SAV) (Assume it is a desired vehicle)

    q
    Target CSI score is 91 points, lowest allowed by Sharpe BMW
    Interventio
    ns Resource Intervention
    Intervention 2: Human
    (Part 5, Page 422 & 431)
    Goal Setting and Reward Systems
    Pros Cons
    q Gives employees/management a target q This system does not directly benefit
    to achieve those being measured

    q Reward systems in general are q Technicians may work slower, focusing


    motivators too much on quality

    q Reward systems keep employees on q Too much emphasis was placed on CSI
    schedule score (should have equal importance as
    auto sales and overall revenue)
    q Satisfactory CSI rating results in bonus
    for technicians (on some jobs)
    Interventio
    ns Resource Intervention
    Intervention 2: Human
    (Part 5, Page 422 & 431)
    Goal Setting and Reward Systems
    Interventio
    ns
    Inspiration Cases
    Case Industry People Change Concept
    17.1 Customer All employees at Establishing Chapter 17
    The Goal-Setting Relationships Siebel Systems organization’s Performance
    Process at Siebel Management that use Goal- objectives based Management
    Systems Software Setting Process. on it’s core
    values Goal Setting
    (Page 422 - 426)

    Case Industry People Change Concept


    17.3 Catalog The supervisors Improvement of Chapter 17
    Revising the Retailer in charge of the Performance
    Reward System managing the organizational Management
    at Lands’ End performance reward systems
    standards and Reward Systems
    the employees (Page 431 - 446)
    that they are
    used for. .
    Leadership/Evaluation/Institutionalization

    OD & Change
    Steps
    Management Issues

    q Score a CSI for all customers ü Goal Setting


    (Ch. 17, pg. 422)
    Creating q Change the scoring on the CSI
    Vision q Reward employees with bonuses
    ü Reward Systems
    from accumulated CSI (Ch. 17 Pg. 431)

    ü Performance-Based Pay
    Systems
    (Ch. 17 Pg. 438)
    Leadership/Evaluation/Institutionalization

    OD & Change
    Steps
    Management Issues

    q Keep Warranty and Non- ü Method for Collecting Data,


    Warranty scores separate Questionnaires
    (Ch. 7, pg. 125)
    Managing q Inform customers of scoring
    change ü Goal Setting and Reward
    Transition Systems
    q Start bonuses low and increase (Ch. 17, pg. 422 & pg. 431)
    them as fit (2%)

    q Inform all employees on the


    change is CSI scoring and
    bonus opportunity
    Leadership/Evaluation/Institutionalization

    OD & Change
    Steps
    Management Issues

    q Retain employees/technicians ü Employee


    Involvement (Ch. 9
    q Present the adjustments to
    Pg. 154)
    others in Serra Group

    Sustaining q Improve quality of jobs with ü Goal Setting


    bonuses (Ch. 17, pg. 422)
    Momentum
    q More satisfied customers with ü Reward Systems
    better quality jobs
    (Ch. 17 Pg. 431)
    q Increased motivation of workers
    with goals and rewards

    q Higher CSI ranking nationally


    Leadership/Evaluation/Institutionalization

    Measure for Success:

    ü
    Meeting CSI expectations (91)
    ü
    Satisfied employees/technicians
    o
    Survey employees on thoughts with new “system”
    o
    Retain more technicians
    ü
    All customers (warranty/non-warranty) satisfied/happy with their product
    Leadership/Evaluation/Institutionalization

    Step by Step:

    q
    Dunn informs survey company about change
    a) Excellent (100), Very Good (90), Good (80), Fair (60), Poor (0)
    b) Also add Warranty or Non-warranty Customer

    q
    Sharpe BMW begins recording all CSI scores

    q
    End of each month
    v)
    Pay bonuses to technicians with high accumulated CSI score
    ü
    Over 91
    ü
    Bonus begins at 2% for first year

    q
    At end of each quarter (3 months)
    v)
    Survey all employees/technicians on feedback with new system

    q
    After one year
    v)
    Dunn presents this system to other members of Serra Group

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