Notes on Apprenticeship Program

Move to Houston

• CEO and corporate staff were mostly in Houston, prompting a potential company move.

• The speaker initially commuted to Houston for a year and a half.

• Family considerations, particularly the speaker's daughters' education, influenced the decision.

  • Younger daughter was a freshman in high school, older daughter a freshman in college.

• The speaker's wife pointed out that his time in Dallas was often spent traveling elsewhere.

• The family lived in Houston for four and a half years.

Selling the Company and Choosing a New Home

• After deciding to sell the hospital company, the speaker and his wife, Andrea, considered where to live.

• With their younger daughter in college, they had an empty nest and more flexibility.

• The speaker, a finance professional, created a spreadsheet to rank the 50 states based on their preferences.

  • Ranking criteria: 1 (love to live there) to 4 (absolutely no way).

• Colorado emerged as a top choice after visiting friends and appreciating the scenery.

Career Change Considerations

• Andrea challenged the speaker to consider what he would do if money were no object, prompting self-reflection based on "What Color is Your Parachute?"

• The speaker wanted to be closer to the end user/customer, work with his wife, and avoid working for distant investors.

• Dissatisfaction with venture capital/private equity, where decisions were made by inexperienced individuals.

• He considered auto repair and landscaping due to positive childhood experiences and appreciation for the outdoors.

Exploring Franchise Opportunities

• Looked into landscaping franchises but found the valuations unreasonable.

• Investigated auto repair franchises (Amco, Midas, Meineke) but didn't find any that aligned with their values.

• They had been customers of Christian Brothers Automotive for over a decade.

• The speaker discovered Christian Brothers Automotive franchising while browsing business brokerage sites.

  • Andrea was away, planning an event in Dallas.

• He contacted Christian Brothers Automotive and connected with Josh Wall, who handled development.

• The speaker expressed interest in opening a franchise in Denver or Colorado Springs.

• Colorado was a key market for Christian Brothers, leading to further discussions.

Focus on Development and Apprenticeships

• Driven by the difficulty of finding talent in the automotive industry.

• Belief in building talent internally rather than hiring from other shops.

• Desire to maintain a "nice difference" by instilling good habits and mindsets from the start.

• Mentoring and developing young people is seen as fulfilling.

• Example of Robert, a long-term employee, providing opportunities for sharing faith and influencing life choices.

• Gabe, another technician, started as an intern and progressed to a 60-hour/week technician.

• Robert (Deuce) also improved significantly after joining from a dealership.

• Creating a comfortable environment that challenges and invests in individuals.

• For every success, there are typically two failures.

• Internship program (first six months) focuses on basic tasks like oil changes to assess work ethic.

  • Interns must prove they can work hard before the company invests in them by making them an apprentice.

  • Two-thirds of interns don't make it past this stage.

Program Length and Structure

• The program is nominally 12-24 months long, but this has been affected by COVID-19 and other factors.

• Formerly, the program aims to have all Automotive Service Excellence (ASE) certifications completed by graduation.

• The internship lasts 3-6 months.

• Exceptional interns can move to apprenticeship sooner if there's a need.

• After 24 months, apprentices should be able to work independently.

• Graduates become "line techs" or "productivity techs."

• Line techs are paid either their hourly rate or a flat rate (\$32), whichever is greater, to incentivize productivity.

• Transition to independence is gradual and based on individual capability.

• Goals: 6-month internship, 24-month apprenticeship.

Sourcing Interns and Apprentices

• Primarily from schools, particularly through advisory board involvement in auto tech programs in the Denver area.

• Word-of-mouth referrals from current employees.

• Emphasis on providing meaningful work beyond basic tasks like oil changes and shop cleaning.

• Apprentices are encouraged to learn alongside senior technicians.

Incentivizing Mentors

• Finding willing mentors is crucial.

• Eric Waterbury was initially reluctant due to past negative experiences.

• He was persuaded by giving him the authority to decide whether to keep an apprentice.

• Appealing to technicians' desire to give back, sharing their own development experience.

• Importance of apprentices showing gratitude and willingness to learn.

• Financial incentives:

  • Override on total shop productivity for mentors.

  • Flagging apprentice hours under the mentor's name, with the mentor getting paid for those hours in addition to their hourly wage.

• Example of Robert, who flagged 100 hours.

  • The speaker feels that if you have a top technician flagging a hundred hours and you are paying him, for instance, (\$42), that is significantly below what you would pay for a top level ATEC technician.

• Apprenticeship/internship program viewed as an investment.

Return on Investment (ROI)

• Investing in apprentices on the front end.

• Payback comes when apprentices graduate and are paid less than market rate.

• Technicians like Gabe are paid below market value but are highly productive (50-60 hours/week).

Biggest Obstacle and Solutions

• Seeing the program as an expense rather than an investment.

• Commitment to a long-term (2-3 year) investment without immediate payback.

• Easier for Christian Brothers Automotive to take a long-term view than other businesses focused on short-term results.

• Recognizing that for every success, there will be 2-3 failures.

• Importance of cutting losses early on failures.

• Identifying whether someone has the work ethic to be a quality technician.

• Can't fix laziness; releasing those individuals to find their happiness elsewhere.

• The number one challenge for Christian Brothers Automotive owners is finding technicians.

• No magic pill; must be committed to growing their own talent.

• Young technicians like Gabe and Robert have the highest average written in our Castle Rock shop.

• Taught good habits from the start, leading to thorough inspections and disciplined work.

• They may not be the most productive, but they have much higher averages and fewer comebacks.

What Would Be Done Differently

• Being more diligent and structured in the program.

• Currently, the program outlines: 6 months internship, 24-month apprenticeship, and ASE certification by the end.

• Be more organized and disciplined in the program because currently it is more lenient.

• Need more structure and discipline around that program.

• Being continually reminded that by the end of the 2 years, there should be eight ASEs completed.

Compensation Structure

• Starting wage: (\$20) per hour.

• Increases of 25-50 cents per hour for each ASE certification passed.

• Tool allowance given when moving from internship to apprenticeship (500 - 1000 dollars).

• Allowance amount depends on existing tools.

• Tool allowance for each ASE passed ($250 tool credit).

• Encouraging apprentices to purchase tools at Harbor Freight.

Tuition Reimbursement

• Generally not a big deal because the tech schools here in Colorado are community colleges, so the cost is not as high.

• There is Pickens Technical College, where the person whom the speaker spoke with stated that he did not need the help because there were plenty of COVID assistant for these students.

• Lincoln Tech exists in the area but the speaker would rather take students from the other two schools around there.

• Post COVID, there is a lot more tuition assistance programs.

Measuring Program Success

• Efficiency and productivity (hours flagged).

• Growth in the technician's skillset.

• Average written indicates thoroughness in inspection.

• Tracking these metrics ensures progress.

• Apprentices in tech school write modules on a whiteboard to connect learning with hands-on experience.

• They are often walked over by a senior technician for additional advice.

• Robert was tasked with a rear main seal on a f one fifty to further his knowledge.

• The speaker wants others to be able to learn in person as well as be there is they need help.

Support Center Assistance

• A pathway in the flywheel.

• Initial assessment test.

• Step-by-step instructions tailored to the individual.

• Progression through ASE certifications.

• Training modules and practice tests.

• Assessment to see if they can actually get it done.

• Must be able to get the ability to track people's progress in progress.

• An app would be fantastic because going into these takes up a lot of time to track if someone actually did it.

• Reporting back would be perfect as well.

• Have a standardized checklist of the skills that they should have.

Important Understanding

• Every program is different because every person is different.

• With structure, when it meets peoples, it gets messy.

• Test anxiety is a real thing.

• There needs to be some flexibility, not too harsh or concrete.

• Learn from your mistakes.

• Invest in young men and women.

• Recognizing a structured program is great but people still need flexibility.

• Potential corporate relationship with UTI's might be a good plan with joint ventures and expanding in the Denver area.

• Encouraging female candidates to join

• Make the job that much more attractive.

• They have great attention to detail.

• Publicize female technicians and publicize a comfortable and safe workplace.