Jiffy Lube CEO: Keeping a Well-Oiled Machine

Abstract

"If this is Wednesday," Jim Hindman says, scratching his head, "then this must be Springfield." The confused look lingers on Hindman's face only for a moment, then melts into a grin. He's very much aware of his surroundings, thank you. To prove it, he rattles off a list of nearly a dozen cities stretching from Iowa to Wyoming, all from memory. They comprise an itinerary that will keep the founder and CEO of the world's largest (and fastest growing) chain of oil change and lubrication centers traveling state-to-state via private jet for the next few days. (excerpt)

"If this is Wednesday," Jim Hindman says, scratching his head, "then this must be Springfield."

The confused look lingers on Hindman's face only for a moment, then melts into a grin. He's very much aware of his surroundings, thank you.

To prove it, he rattles off a list of nearly a dozen cities stretching from Iowa to Wyoming, all from memory.

They comprise an itinerary that will keep the founder and CEO of the world's largest (and fastest growing) chain of oil change and lubrication centers traveling state-to-state via private jet for the next few days.

It's the brief "fly by and drop in" visit, like the one Hindman paid to his company's two franchise locations in Springfield recently, that helps keep Jiffy Lube International a well-oiled machine, he says.

"This is the fun part of the job," Hindman says, settling down for an interview in the office of Jiffy Lube/Auto Magic, 630 W. Sunshine St.

The Sunshine Street location also serves as office headquarters for the Jiffy Lube/Auto Magic center at 1248 E. Battlefield St. The franchises, both locally owned by Bill Barclay, are two of 841 now in operation worldwide.

"We're in Canada, we're in Great Britain, France, Switzerland, Australia, New Zealand and the Philippines . . ." Hindman says, ". . . and in Springfield."

The company was founded in 1979 when Hindman, a former college football coach and hospital administrator, bought an eight-store Jiffy Lube chain based in Salt Lake City, Utah.

Hindman had already made his first million at age 35 by way of building and developing a group of nursing homes and other businesses, including an Atlantic City hotel and a Sioux City garbage collection company.

But it was one of his football players at Western Maryland College who challenged Hindman to "prove that it's as easy to make a million dollars today as it used to be."

What he ended up proving, he says, "is that it is easy to make a million dollars, if you're willing to work hard for it."

Jiffy Lube's niche in what industry observers refer to as the "automotive aftermarket" was destined to grow for several reasons, Hindman says:

* Public awareness of the time-saving potential of quick lube services "isn't anywhere close to what it should be," he says. "Time-saving services are becoming almost as important as money-saving services. That goes for a lot of businesses, not just ours."

* More and more cars are being manufactured, sold and driven each year. "And sooner or later, the oil in those engines has to be changed. Our job is to convince the consumer that we are the best people to handle that job."

* An increasing dependency on smaller cars with smaller engines that require more frequent oil changes and lubrication should boost the overall demand for the industry, Hindman says.

"The quick lube business is a $10 billion business in the U.S. annually, and we only have a 5 percent market share," he says. "We know that we are capable of growth with that kind of potential in the market."

Growth is already happening, as evidenced by Barclay's purchase of Springfield's two Jiffy Lube franchises. Most city franchises are held in such a manner, Hindman says.

"We like to keep the control of the day-to-day operations in the hands of local people who know the market and its special needs and demands," he says. "Bill Barclay is really an archetypical example of what we look for in a franchisee. He's rooted here, he's well respected, he knows the community, and he knows how to treat people right."

A management philosophy that mandates personal attention to employee needs and ambitions puts morale at most Jiffy Lubes well above that of their competitors, Hindman says. "Every one of our employees is given the chance to make the most of themselves with our organization. Of course, we're always going to strive to keep the customer first, but right behind him or her comes our own people."

Somewhere in there, too, are scores of satisfied investors. Jiffy Lube, traded publicly for almost two years now, reported profits of $3.46 million in fiscal 1987.

"There's not a lot of difference between running this company and coaching a football team," Hindman says. "You've got to have the competitive spirit, you've all got to be team players, and you've got to want to win.

"I don't care what business you're in, if you've got those things going for you, you'd better watch out. You will succeed."