There has never been a time in automotive history when itıs been more critical to get our dealerships to a higher level of professionalism.
Dealerships and manufacturers are putting more money, time and energy into making improvements than ever before. Yet, somehow, around eighty percent of all training programs that dealerships get involved in end up being labeled a mediocre value. Eighty percent of all training videos end up on the shelf, never viewed. Itıs estimated that eighty percent of individuals who purchase products from the self-improvement movement never read the books, listen to the tapes or follow through on the prescribed changes. If you tell me this is just another one of those eighty-twenty things, Iım going to scream! Iım not being negative. The industry is improving, just not as fast as it could.
Weıve found that there are three ingredients to achieving outstanding growth for a dealership. The formula:
1. Skills, well-defined 2. One Operating System, well-executed 3. Leadership (Without this, you can scrap the formula - it wonıt work.)
If things arenıt improving rapidly, check the formula. Youıre probably missing an ingredient.
Major revelation number one: Training alone is not enough. You can train people until youıre blue in the face (or they are). If you donıt have an operating system that fits with the training, very little will change. Iıll use a real life scenario from a service department improvement. The principles may pertain to sales, service or any department you choose. I trained service advisors for one particular dealer group until I was blue in the face. Everything from active listening to conflict management, from proper documentation to selling skills. We made progress, but not my idea of progress. Why werenıt we getting better results? I went to the source. I asked the service advisors why we werenıt improving more quickly. I had overlooked the obvious. One of them told me that what I said went completely out the window after they went back to their department. We didnıt have management agreement on how the department would operate. One example was the service advisors going to the car with the customer before the write-up. Iıd tell them it was critical to go to the car first, to gain rapport and to understand customer needs. What hadnıt occurred is the managers agreeing on the process. We met, we bonded, we agreed (sounds warm and fuzzy, doesnıt it?). We had an operating system! I figured weıd hit pay dirt. Weıd defined the system, we agreed, we conducted skills training and everyone does what theyıre supposed to do, right? Wrong. We made progress both in the workplace and the money. Meeting after meeting. Weeks of agony. We knew the processes worked, we knew the customers were happier and the numbers increased. Still no stellar results. Additional months of agony, slow growth and frustration. Weıve got a system, weıve got the training, where are the numbers?
Major revelation number two: You can have skills and an operating system, but if you donıt have leadership, you donıt have beans. Our weekly management meetings had turned into flogging sessions. ³George, you told them what to do, we defined the process and our service advisors arenıt doing what you told them.² (Iım starting to feel like a baby seal going through a weekly flogging.) Months of training, defining the process, work in the classroom, hands-on in the service lane. Eureka! They think Iım supposed to take responsibility for making people do what theyıre supposed to. If thatıs the case, whatıs the managerıs job? During one of our meetings I pose some well-prepared questions: Have I done a good job training them? Group consensus - yes. Is ³our² operating system workable? Yes. Whoıs making sure that what weıve put in place is actually occurring on a daily basis? ³Theyıre adults, they should follow through with the system.² NOT! People left on their own will go back to what they used to do. Weıre all creatures of habit.
Leadership 101. Meeting after meeting we discuss leadership, supply observation sheets and continue to prod managers to get out of their offices to lead. In an effort to make sure that managers are involved in leading and managing, we decide to make a bold move. Blow up their offices. If they have no office they canıt help but be involved. Construction crews are brought in. Walls are taken down. We build self-contained work areas where advisors and managers work together. I hold my breath. If it doesnıt work Iım a dead man. IT WORKS! Record growth two years, back-to-back. Productivity and efficiency go up. Iım not nuts! If youıre looking for improvement and itıs not happening, go to the formula: Skills, operating system and leadership. Ask yourself, do they have the skills, is there truly a system and is there leadership? If itıs falling down, most likely one of those three essentials is missing. Now you have the formula.