Running a service department is challenging. It requires a mix of leadership, strategy, and solid systems to succeed. Yet, many service managers struggle because they fall into common traps. Here’s a breakdown of the nine reasons why service managers fail—and how to avoid them.

1. Choosing Comfort Over Challenges

Many service managers stick to what’s safe and familiar, avoiding challenges to stay under the radar. While this may feel secure, it limits growth and potential. Success requires stepping out of your comfort zone and seizing opportunities that push you and your team forward.

2. Managing Instead of Leading

There’s a big difference between managing and leading. Managers focus on tasks, while leaders inspire and motivate their teams with a shared vision. If you often find yourself asking, “How do I get my people to do this or that?” it’s a sign you might be managing instead of leading. Great leaders create an environment where people are eager to follow, not just comply.

3. Relying on Tribal Knowledge

Too many service managers operate based on “tribal knowledge,” learning from predecessors without questioning or updating practices. This approach becomes less effective with each passing generation. Instead, invest in structured training and continuous learning to bring fresh ideas and strategies to your department.

4. Not Understanding Financials

Running a service department without understanding finances is like driving without a steering wheel—it’s nearly impossible to navigate effectively. Many service managers only grasp gross profit but miss the full financial picture. Learn how to read and interpret financial statements so you can make informed decisions that boost profitability.

5. Hiring Just to Fill Positions

It’s tempting to hire quickly when you’re short-staffed, but hiring just for the sake of filling a role can hurt your department’s performance. Hiring “for a pulse” might put a body in a seat, but it won’t elevate your team. Focus on hiring people who align with your goals and can positively contribute to your team’s culture and productivity.

6. Overlooking Technicians

Technicians are the backbone of any service department. Without them, there’s no production. Great service managers spend time in the shop, get to know their technicians, and build trust. This engagement boosts morale and helps retain top talent. Listen to their feedback—they’re your frontline experts and can provide valuable insights.

7. Lacking Boundaries

Service managers often take on every task, from fixing showroom issues to handling personal favors. This can spread you too thin and lead to burnout. Your main priorities should be creating excellent customer experiences and driving profit. Set boundaries and ensure your focus stays on what truly matters.

8. Seeing Themselves as Secondary

The automotive industry often puts sales above service, which can impact the self-esteem of service managers. If you see your role as less important, it’s easy to lose motivation and not push for improvement. Shift your mindset and recognize the crucial role service departments play in customer retention and dealership success.

9. Sticking to What’s Comfortable

Some managers double down on familiar methods even when they’re not working, avoiding new approaches due to fear of failure. This stubbornness stifles growth. Be open to change and willing to try new strategies. Remember, repeating the same actions and expecting different results is a path to failure.

Bonus Tip: Systems First, People Second

One key to success is knowing that systems come first, followed by people. Without solid systems in place, even the most talented team will struggle. Implement efficient processes for appointments, customer interactions, and workflow. Good systems empower your team and create a foundation for success.

Avoiding these pitfalls can transform your service department from surviving to thriving. Embrace leadership, deepen your financial understanding, and continually seek improvement to create a department that excels in both customer satisfaction and profitability.

The path to hitting and surpassing these goals is simple. But only when you have the right system in place to make it happen. In Service Drive Revolution OnDemand, You’ll Learn the Exact Systems THAT HAVE MADE THOUSANDS OF SERVICE MANAGERS IRREPLACEABLE!

If you want to implement these strategies in your Service Department, let’s talk. Book a 15-minute strategy session with our team. We’ll explore how to unlock your Dealership’s real value.