One of the biggest misconceptions in our business today is that "manager" and "leader" are interchangeable terms. They're not. Management and leadership are completely different functions. Both require their own set of skills and mindsets. A balance of management and leadership is necessary for optimal performance in any dealership. The fact is, however, that in our business managers are a "dime a dozen"; leaders are where the true future of your organization lies.
The ramifications of poor leadership in a dealership are devastating. Employees today are expecting more from the workplace than at any time in history. They are better-educated and more skilled than ever before. They don't want to be managed, they want to be led. When people are not led, developed and motivated, when they are not shown vision and direction, they leave. Excessive turnover is a direct result of poor leadership. When employees decide to stay in spite of poor leadership, the result is low morale and consignment to mediocrity.
The number one complaint I heard while holding seminars last year was that it was "so tough to find good salespeople" and that "most salespeople produced only average results." My answer was and is that, while it may be tough to find good salespeople, it's even tougher for salespeople to find good managers who are leaders. The reason there are so many "average" salespeople selling cars is that there are so many "average" managers leading them.
Managers in any function would be well-advised to realize that the title of "manager" or "leader" does not make them one. It affords them the opportunity to become one. What a foolish notion to believe that competency is somehow enhanced by virtue of a promotion. Becoming a better manager and leader is a process, not an event.
The good news is that regardless of the current state of leadership in your organization, it can be improved. This is because leadership is developed, not discovered. It can be taught and learned. Improvement begins with recognizing that both management and leadership are vital. The key is that leadership must come first. Why? Because leadership deals with vision and direction, and management deals with the plan for how you'll reach the vision. You have to know where you want to go before you start to figure out how you'll get there.
Here are some differences between managers and leaders. Notice which mindset you and your key people are most heavily inclined to. This will help determine your status as a leadership-oriented organization. You may find that you are on the right track in many areas, but deficient in others. The deficient areas don't improve on their own; they need attention and correction.
1. Management and leadership are both important. Management focuses on doing things right; leadership focuses on doing the right thing.
2. Management is about efficiency; leadership is about effectiveness. You must be efficient with things and effective with people.
3. Managers want to be "served"; leaders are into serving.
4. Managers see themselves as "administrators"; leaders see themselves as coaches.
5. Managers get things done by directive; leaders get things done by influence.
6. Managers wait for their people to come and "connect" with them; leaders go out and connect with their people.
7. Managers motivate by rules; leaders motivate by relationships.
8. Managers believe the people working for them belong to the managers; leaders know they belong to their people.
9. People work for a manager; they work with a leader.
10. Management is making sure that others do their work; leadership is empowering others to do better work.
11. Managers react to the tempo of the day; leaders set the tempo for the day and make it respond to them.
12. Managers see people as they are; leaders see people as they can be.
13. Managers fix their eyes only on the "bottom line"; leaders also fix their eyes on the horizon.
14. Managers get caught up with the cost of training and developing their people; leaders realize the cost of not developing them is staggering.
15. Managers are obsessed with production; leaders are obsessed with improving the capacity to produce.
16. Managers see their position as a perk; leaders see their position as an awesome responsibility.
17. Managers immerse themselves in paperwork; leaders immerse themselves in "people-work".
18. Managers seek security in an impressive title; leaders know their security is an impressive team.
Don't misunderstand "manager" is not a four-letter word. It's just that when managers become too enamored in the management traits and tendencies listed here, they begin to smother their people and organization. Their competitors don't beat them; leaderless organizations simply beat themselves.
There has been very little leadership training over the years in our business. There are plenty of "management schools," - but few schools that teach anyone what it really means to be a leader. Assess those in leadership positions within your organization. Which of the mindsets listed here do they favor? Which do you portray? What's the ultimate cost of continuing in today's rapidly changing market without making improvements? Everything rises and falls on leadership. Leadership is not a weekend trip it's a lifetime journey.
Dave Anderson has been a car salesman, GSM and GM. Currently he works as the Director of Training for the Anderson Dealership Group in Palo Alto, CA as well as the GM of Anderson Honda-Isuzu. He is the author of Selling Above the Crowd - 365 Strategies for Sales Excellence, set for publication in the spring of 1999. If you have specific questions or require more information about this subject, please check the appropriate box on the reader response form on page 3.