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INDUSTRY INTERVIEW: MARTIN NORBURY, INNOVATION GROUP
This month, Martin Norbury, Innovation Group's Strategy & Innovation Officer – Motor, discusses a viable alternative to credit hire and sustainable business models.
Q How many repairers do you have on your network?
A We currently operate with 350 repairers throughout the UK for fleet work, cars, bikes, commercial vehicles, specialist and prestige vehicles.
Q How is business at the moment?
A Buoyant. Whilst run rate volumes are down, new business means that overall volume is up.
During an economic downturn, many businesses obviously look at cost savings and outsourcing is a strategy of turning fixed into variable costs, which is good for Innovation Group. As a business we are always looking to differentiate to keep ahead of the curve. This I think we have demonstrated by being the winner of the inaugural Bodyshop Accident Management Award and also the Repairers' Choice at the ABP awards.
Q What is your main focus right now?
A I took on a less operational role in January this year to focus on driving business strategy, product development and innovative customer propositions. Recently, we have been working closely with Enterprise Rent-A-Car to deliver a viable alternative to credit hire that is fairer on the customer and more cost effective for insurers.
Q What has been the biggest challenge so far?
A To not chase the quick buck. Most, if not all, of our competitors have looked to non-risk income such as credit hire to ensure survival and, with referral fees in the hundreds of pounds per non-fault, it was an easy choice. However, we felt that, fundamentally, it was wrong, so we have looked to differentiate our services. This is starting to have many benefits as the general feeling in the insurance market is this is not sustainable and alternatives are actively being looked at, such as the AA/Saga new venture.
Q What is the best piece of business advice you have been given?
A There are the old clichés such as ‘deliver what you promise and never be complacent’, but the one that has stuck with me and one that I had to learn quickly when I took the role of MD at Motorcare is ‘you can only land one plane at a time’. Do it properly, park it, then bring in the next one! If not…
I also passionately believe in The Law of Business by John Ruskin.
Q What effect is bodyshop consolidation having on your business?
A Innovation's repair network and its welfare is always a primary concern. Whilst the problem of eroding capacity is an immediate concern to all, it is perhaps a necessary feature of market evolution.
Innovation is largely viewed favorably by the repairer market and applications to join our network remain high. That said, we will continue to ensure that our relationship with repairers is one of mutual prosperity.
Q What are you advising repairers in your network to do, to enable them to survive the downturn?
A Repairers must look to prepare themselves for future stability and prosperity. This clearly involves examining all aspects of their business, from the valeting bay to the boardroom, to ensure efficient processes from cradle to grave. We are currently in an era of heavy focus on compliance and a repairer must also seek to ensure it is in the best possible shape for the future.
Q Are your engineer assessors all ATA accredited? If not, why not, and if so, how many did it involve?
A We fully intend to ensure all of our engineers achieve the ATA standard and have already started the process.
Q What is your position on the Kitemark?
A Innovation supports the Thatcham/BSI Kitemark and will operate a 100% compliant network in the near future.
Q If you were running a bodyshop, what would you be doing now to safeguard your business's future?
A Certainly compliance would be high on the agenda as this, in time, will become a minimum standard.
Q If you could change one thing in the industry, what would it be?
A Running an outsource business has demonstrated to me the amount of opportunities for change. We are consistently missing these due to historical views, perceptions or just lack of trust in the elements of the value chain. There are areas that we were looking to promote when I was at BodyMaster (12 years ago) that are only just coming into fruition.
Long term collaborative relationships must be cultivated if friction cost and a compromised service to the end user is to be eradicated. Each party must be clear on their responsibility in the relationship and endeavour not to duplicate cost or process.
Q If you were running a bodyshop, what would you be doing now to safeguard your business's future?
A Compliance, processes and training would be high on the agenda as this in time will become a minimum standard across the industry. From my background, attention to estimating accuracy and customer conversion upselling opportunities should be an intrinsic part of the bodyshop operation. Consider diversity of service and strategic specialisation to be like the pursuance of manufacturer relationships, which should also be part of planning for the future. I have been at Motorcare/Innovation for five years and can count the number of repairers that have been to see me to promote their business on two hands. It does amaze me of the lack of self promotion and I assume that is one of the reasons for the emergence of these national/regional repair groups.
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