It’s Time to Shift from Potential to Kinetic Thinking

By: Chuck Barker

Those of you who know me have heard me tell this story before and I feel it is so worth repeating because of our current marketplace. A few years ago, while I was working in Moscow, Russia, I visited a wealthy friend of mine in Frankfort, Germany. He was a very proud new owner of a Porsche 911 Turbo S. After gawking over the car for some time we decided to take it for a spin on the Autobahn because he couldn’t wait to show me the “potential” of his new ride. As we accelerated quickly getting on, we migrated over into the fast lane and he continued to accelerate until he found a “comfortable” cruising speed of around 135 miles an hour. Frankly, we were both holding our breath a bit realizing that we were really cooking down the road. He then said to me, “can you believe the power of this thing?” Then, all of a sudden, glancing in his rear-view mirror he said, “Oh my gosh are you kidding”? I turned around expecting to see German police lights but instead saw another vehicle bearing down on us in our lane a half-mile back flashing its lights for us to get out of its way. My friend shifted into the next lane to the right of us to give way to this rapidly approaching vehicle.

Here is the interesting point; As this vehicle flashed past us in a blur I happened to notice it was the same model Porsche we were driving but most likely doing somewhere in the neighborhood of 175 miles an hour. Hum, just when we thought we were utilizing the potential of this Porsche we were immediately humbled by someone else who was actually utilizing the car’s potential much greater than we were. We both had to laugh at ourselves for thinking we were the top dog out there. Humbling to say the least.

In my travels around this country, I see the same thing occurring in dealerships all the time. Some stores think they are utilizing their fullest potential while there are stores who are blowing right past their competitors by utilizing contemporary sales development and relationship-building training and methodologies. Many dealers are not challenging themselves to become better than they currently are. I have seen stores who essentially have a very similar sales team, management team, product line and desirable location yet are different in so many ways. In spite of these similarities being in place, some stores sell more units, double and/or triple the gross profits, as the other stores. They also have created a total team synergy platform from which to build upon and a pride themselves on a low attrition rate. Why is it that some stores drive along at 135 and almost identical profiled stores are doing 175? Where does the difference reside? Is it the “comfortable” speed they are attacking their business? We all need to be disruptors and break out of being complacent while pushing towards accelerated business growth.

Go out to your local mall and ask 20 people this question; “What are the first thoughts that come to your mind when I say car salesman”?  Their responses are a reflection of negative paradigms built up over the years from experiences they, a relative or friend had in dealing with a car salesman. The dealerships that are driving to new levels of achievement recognize this “perception” and are affecting a change in the way they do business with their customers by creating a paradigm shift. This shift can only be created when the dealer/principal and all team members are committed to raising employee’s level of professionalism and development to new heights of excellence. When this occurs, you will see dramatic productivity increases. Productivity increases occur as a result of leading-edge paradigm shifting training and result in increased output (units, gross, CSI) being achieved with the same level of effort currently required. No more work required just a better way of doing the same work. In other words, taking potential energies and turning them into kinetic energies.

Examples of productivity increases include:

• Professional sales training priorities are put in place thus reducing the effort and time required to accomplish various tasks required to increase the store’s growth.
• Reaching higher levels of skill set development leading to elevated work quality and growth in professionalism and profit increases.
• Significantly reaching higher levels of employee satisfaction and motivation which leads to willing increased effort and increased teamwork and synergy.
• Leadership, Leadership, Leadership!

When you stop learning new strategies you stop growing. When you stop growing you become a prisoner to high maintenance, problems, and irritations. You become stagnant and complacent. Once you adopt the decision to do things differently, you must consistently be disciplined with your accountability in seeing it through. It is okay to make adjustments along the way but in no way should you compromise your new approach to doing business.

Fact: Every dealer wants to grow the store. Yet few form the habit of doing the things successful dealers do on a regular basis. Recognize that there are two types of pain. There’s the short-term pain of disciplined accountability and the long-term pain of regretting to become accountable.

Good decision planning helps us begin the increased potential journey. Being accountable and consistent with new sales and service techniques and processes encourage and allow us to finish ahead. The pain of disciplined accountability is momentary but the payoff is monetary. Where does it all begin? At the top. The top-down strategy simply means that everyone in management has to be committed to discovering new business strategies, planning, implementation, managing and the leadership of a new sales, service and management approach. Let everyone know how valuable and essential to the store’s success he or she is because quite frankly it is all about your people.

We all need to acknowledge that the landscape of the automobile industry has and continues to change and if you want to be a part of the success stories regarding consistent store growth then you will just have to do things with enhanced professionalism and new training methodologies. What got you here will not keep you here. Corporate America, with a few exceptions, has been doing it this way for quite some time with remarkable results. Yet the automobile industry, for some unknown reason, feels this professional approach is not for us. If your current thinking is taking you towards a “business as usual” shortcut approach then be prepared for a diminishment of everything you have built thus far. We need entrepreneurship to be at its best in this industry right now.

One tremendously important factor in ‘growing to your potential’ is your investment in your employees. If people really are your greatest assets, isn’t it time to look at giving your people an opportunity to reach their full potential? Look at them as investments in your organization’s human capital and not just as an expense. Anyone can be competitive with their capital (such as advertising) but investing in the skillsets of your people develops a stronger store and is priceless. A very small percentage of your advertising budget redirected to growing and training your employees will deliver you much greater short-and long-term benefits than your advertising does. Plus, you are making your team members better and stronger. Advertising does not do that. Don’t wait until you have a flat tire to do something.

Now, more than ever are we required to be people of excellence. In an industry where mediocrity has been the norm for so many dealerships, consumers fed up with this approach are now expecting to develop relationships with professionally acting sales and service representatives. No half-hearted efforts anymore. Full throttle forward in the direction of a well-oiled professional machine. Excellence is doing the right things when no one is watching. Earn respect, sharpen skills, whatever you do – get better at it. Develop a spirit of total team excellence in your dealership and watch your potential begin to increase speed.

The most basic foundation for selling vehicles is building relationships with your customers. If you don’t believe this, stop reading this article and head back out to coerce and hammer on another fresh-up. However, if you’re one of the many dealerships to embrace this concept, behavioral profiling may be the missing link. Several years ago, customer relationship software was touted as the key to building and keeping relationships, and it’s taken most of that time for people to realize CRM software is only a 10% part of the solution. CRM is there to facilitate and help your people and processes. The missing link, however, was, and continues to be, the human element, and more importantly, modifiable interpersonal communication.

So, here’s the solution: train your sales staff to identify their own and each customer’s behavioral profile and adjust their message accordingly. If they can effectively, in a repeatable manner, practice active listening and message modification, everything will increase! Sales will go up because more leads will be converted to completed deals. Gross margins will increase because the focus of conversation will be moved off the topic of price and onto the relationship part of the business. And CSI will go through the roof because customers will be sold directly at the level they are comfortable buying.

Shed a few paradigms. It has become such a cliché for management to claim that ‘our employees are our greatest asset.’ Yet, much to the dismay of most employees, the effort management puts forth into developing this valuable ‘human capital’ continues to be seen as an expense and not as an investment. It’s time for you to turn this around. Start looking at your training programs as if they were capital investments. Develop your very own ‘in-house’ training solution and deliver it consistently twice a month using the new enhanced material. Don’t just settle for the ‘same old stuff,’ make it purposeful and clear. At a time when there are so many exciting new developments in enhanced skill and psychology training and with the market increasing, you’re going to need people at their full potential. Invest in your people and they will invest in themselves, in management and the dealership. You also have to then empower them to make decisions in order to get things done. I like to say if it doesn’t burn the store down, break the law, hurt anyone and we would be proud of it on the front page of our newspaper, then just make the decision. Empowerment, what a great word.

“There is no man living who isn’t capable of doing more than he thinks he can do.” —Henry Ford

As a leader, you must practice over and over what to say to describe where you’re taking your people. After you’ve found the right words, stick with them in emails, in sales and management meetings and in general conversations with the team. Solve the mystery of how we are going to grow the store by reinforcing and understanding that all the small process elements which when unified as one unit will take the store and its people to the next level of growth and success. Remember in the movie The Patriot when the Red Coats are coming down the road holding one of Mel Gibson’s sons hostage? Mel Gibson faces his two young scared sons and on bended knee hands each a rifle then gives them very quick instructions as to how to shoot the red coat officers coming down the lane; “remember, aim small, miss small.” He then looks them in the eyes and says one simple yet profound command to his sons…Steady. I love the way that single word conjures up all the multitude of lessons he could have given them yet he knew that this word steady said it all. So, I say to you, Steady.

Choose your road wisely and navigate well. We can no more afford to spend major time on minor things than we can to spend minor time on major things. Keep your eyes on the road especially when you are accelerating and striving to reach the full potential you are capable of. Need a map for reaching your dealership’s full potential? Send me an email and request ‘The Map.’ Keep both hands on the wheel!

Author: Chuck Barker

CHUCK BARKER is President & Founder of Impact Marketing & Consulting Group, located in Virginia and a Partner with Envision Enterprise Solutions, a Disruptive Technology Company. He has assisted Dealers & Corporations across the country in Sales & Service Development training programs, Management Leadership Workshops and Business Improvement/Analysis Consulting. He is a pioneer in BDC, CRM, Best Processes and Team Member Development since the early ‘90’s. Chuck has held Automobile, Corporate, and International Executive positions for over 27 years. Chuck has been a monthly author/contributor for Dealer Magazine for over 12 years. Email: chuck@impactgroupcrm.com.

Venturing into visionary change is the cornerstone for true leadership transformation because leaders cast out their sight way beyond the reaches of mediocre shortsighted managers who wait for immediate opportunities and/or problems to occur so they can pounce. These are the fixers and they usually bring people down along with the store. Too little too late. No, true visionaries reach out to the future and envision ideas for improving business, making their team stronger and envisioning a dealership synergy that bonds the team together like Bondo. This is when everyone looks in the same direction instead of each other with finger pointing.

You must visualize your dealership and your people growing to their fullest potential. Then, constantly begin seeing the multitude of improvement areas you can affect in delivering them to new heights every hour, every day, every week, every month and every year. Your reward for this ‘corporate approach’ to running your business will usher into your store a galaxy of opportunities in so many measurable ways. In doing so, you will be certain to experience business enhancement in every area of the store! I was having this very conversation last week with Barry Moore who is General Manager of Haley Automotive Group’s Buick/GMC in Richmond Virginia. Barry is a 35-year automobile veteran and a well-respected visionary leader in his dealership, his State Association and General Motors Corporation. I so respect Barry’s perspective that I asked him if he would consider putting his responses to our conversation in writing with permission to use in this month’s article.

The following is Barry’s take on our industry’s current status:

Circuit City, Blockbuster, Montgomery Ward, Borders and Paine Weber are just a few names we all know but are no longer in business. These once thriving and very successful businesses have been replaced by industry leaders who were more forward thinking; entrepreneurs who could “see” and anticipated changes taking place.The automobile franchise system as we know it will need to change or we too will be a part of the above list. It is this writer’s opinion we are stuck in a rut, we continue doing business the same way. A lot of dealer advertising is slap stick and unprofessional, we don’t encourage our employees to be more professional, pay plans remain unchanged and the hours worked are unforgiving. Finding young motivated employees who want our industry as a career has become near impossible.

We continue to advertise in a way that sometimes can be considered underhanded. We continue to do the same old things but our customers have gotten smarter, our customers are more educated, our customers want a system that is quicker, easier and not as convoluted. That is why our customers are turning to the Internet and could be why we feel threatened by companies like Tesla. Not only do we need to change the way we deal with our customers we need to attract and retain professional employees. We need to adjust to what potential employees of today are looking for; competitive perhaps salaried pay plans and hours attractive to today’s families and of course benefits.

We are all aware of the divorce rate, drug use, and sometimes even dishonesty within our workforce. It is vital to understand what is important to today’s workforce in order for our industry to stay competitive. These changes cannot and will not work on an individual dealership basis; they must be sweeping changes industry-wide, a cooperative effort. We cannot depend on the factories to help us; in fact they have their own self- interests; to stay afloat themselves. They may want to discontinue doing business with us the way it is presently done.

We need to protect ourselves; we need to be smart, forward thinkers. We need to revolutionize the way the car industry does business. It is imperative we take the needs of our customers seriously, that we change with the times. We all need to listen together to what the employee and customer is asking for. We must seek out new ideas, try different techniques and believe it is the customer who knows best. Take their lead; understand how they want to buy a new car. What do they want when they come in for service? Does anyone walk in asking for the best gimmick or what does the fine print say? We need to ask our employees how their lives can be improved and then try to figure out a way to incorporate reasonable ideas into our businesses.

Of course change is slow, at least change that is worth something, change that will last. By cooperating, trying new ideas, bantering back and forth, initializing new ideas through beta sites, exchange of information, trying and failing and then trying again, a new way, a better way, a progressive way of doing business will emerge. Let us not forget the many failures of people like Thomas Edison or Marie Curie whose persistence and pursuit of their ideas ended up changing the world. We must pursue change in our industry; we do not want to witness our demise but the rise of something new and better. The franchise dealer has to become better if we are to survive.

We are hearing that Americans are underemployed and that not everyone has to go to college? Politicians running on platforms saying that we have to get small business going again. The Dealer is doing that each day. What do we have in place to help people see the opportunities in the auto business? Does the community college teach classes in auto sales professionalism?  NO. How about how to be a parts counter person providing great business service? NO.  Do the professional head hunters say your background fits the car industry? No, because we are known as the car business. Everything matters so how we project our image and job role to everyone everyday is critical for this mind shift. The politicians that want the money for their campaign need to know the value of the franchise dealer and the entire team needs to help that person holding a local, state or federal seat understand the value we all play in the business world. I ran for State Senate in Virginia in 2015. During that time, I had my eyes opened as to how some thought of our industry and how little they knew. If you have time, consider getting involved in a campaign and or running for office. If you win never forget where you came from and what you are fighting for. Everything matters!

Barry goes on to say, the franchise system is confused with the consumer and they may see us as a middle step and would rather buy direct. If we spend every day leading, being faithful to our employees then the consumer may have a better feel for what we do for them and the manufacturer. The franchise system was set up for many reasons and one was to give great service to their client’s. We have looked at the old road to the sale and said why are we doing the same old process when consumers are shopping 18 websites? We have implemented an 18-minute sales process. We want the customer to get what they want right away if they come in to the service drive or the showroom.

Over 120 years, our industry has been loved, hated and thought of as court jesters. When we stop and say we are in the car business what does that mean? Have we isolated our industry into a reputation that we are over here away from all the professionals? Does everything matter in your business each day? Each day at our store we have a culture that everything does matter. Time is a commodity and we want to attract, satisfy and retain the best employees and customers. The entrepreneur can do this each day better than a fortune 100 company. Maybe that is what parents and college kids need to know about our business. Train your employees to be in the community and care what is happening to others. If they do, it will be respected and seen and people will come to get their auto needs satisfied with you at a higher rate than saying $1 down or having balloons all over the lot.

As I finish my thoughts I get very excited because I want everyone to win and be their best. I want my words to be so powerful that it changes anyone that is struggling in our business today. I want that consumer to stop thinking we are the enemy and to trust our relationship like we are partners. I want every manufacturer to look at the dealer and their team as true partners and ask questions and then listen to the answers. I know I am not that powerful in writing but in my passion I live it every day. I believe if you have the vision of what a great business would look like and how the employees need to treat each other and clients then everyone wins. The franchise dealer and the benefits are then clear. Make sure the culture is clear and built with a solid foundation. Don’t walk in and break the foundation every 12 months thinking someone else will get you there. Work with the people you have on your team. In their eyes, when we met them they wanted to join our team, don’t give up on them. Find Veteran’s or even some cleaned up felons that need a hand up not hand out. Make a difference as a professional because being faithful is the baseline of life. Coaches and all members on the team need to trust each other and build each other because as one unit of course the consumer will feel and experience the benefit of that franchise dealer.

Barry certainly brings up some intuitive angles for all of us to think about. A particularly common area which contributes to a downturn in dealerships and business failures is complacency. According to Julian Birkinshaw, a professor of strategic and international management at London Business School, “Occasionally, a genuinely ‘disruptive’ technology, such as digital imaging, comes along and wipes out an entire industry. But usually the sources of failure are more prosaic and avoidable — a failure to implement technologies that have already been developed, an arrogant disregard for changing customer demands, a complacent attitude toward new competitors.”

To the casual observer, the collapse of quintessential companies may seem to come out of nowhere, but usually there are glaring signs things are amiss. Plummeting revenue, complacency, leadership changes, panicked shifts in strategy, sudden layoffs/attrition and store closings can all land a company on the corporate deathwatch list.

Of course, predictions of corporate death don’t always come true, and some companies are able to step back from the ledge. Not long ago, electronics retailer RadioShack was in dire straits, having filed for bankruptcy, which resulted in the closure of thousands of its locations. But the chain revamped its remaining stores and is mounting a comeback, aiming to turn itself into the go-to store for “do it yourselfers” seeking parts for their electronics projects. Apple and IBM both made impressive corporate turnarounds despite being written off as irrelevant at one time.

Yet for every success story, there are also those companies that will never be able to get off life support. They might linger in zombie form for a while, but eventually, these doomed companies will fail because of their refusal or lack of appreciation for change. It is said, the only people who like change are wet babies. William James was right when he said, “That which holds our attention determines our actions”. When our attitude begins to change, when we become involved with something, our behavior begins to change. The reason that we have to make personal changes is that we cannot take our people on a trip that we have not made. Too many leaders try to be travel agents instead of tour guides–they try to send people where they have never been. We give them a brochure and a “Bon Voyage!” And off they go and we wave to them, and we ask them to tell us how it was when they come back. A tour guide says, “Let me take you where I’ve been. Let me tell you what I have gone through. Let me tell you what I know. Let me show you what I’ve experienced in my life.”

There will always be challenges for the need of better accountability towards daily business practices, and there will be a continued ongoing need for more flexibility and latitude in making those tough decisions. Some of the lingering old bad habits of retailing obviously (and sadly) are hanging around, but are quickly getting pushed aside by a new style of business and relationship development messages. Sweep away those old cob webs and musty areas and make room for advancements in these new professional protocols. We find ourselves smack dab in the middle of an industry-wide state of transition towards new ways in conducting and operating businesses. With this new improved transition comes awesome opportunity for some who seek it. For those who don’t embrace them, well, these are ones who will in the very near future, be saying; “how do we keep getting blown away by our competitors?” Warning before you continue; this requires constant ‘work in progress.’ The journey however, makes the destination a pretty cool place and is mostly filled with good memories. Become the change artist your operation needs.

To gain a competitive advantage and promote sustainable, profitable growth, organizations need to take a holistic approach to CRM and develop bold strategies to win, know and keep their customers. We all know technology is important but technology “only” results are paled by solid people skills. This will only occur with professional process training and implementation of a disciplined approach. All else fails or offers semi-success.

Notwithstanding notable success stories, we have been witnessing a paradox trend. While utilizing and relying upon CRM software, many organizations lose sight of their customers. Their attention centers on ratios and efficiency gains thus, becoming a prisoner of Analysis Paralysis. They focus on single channels, ignore back-end integration needs and get only a limited view of the customer, resulting in missed opportunities and a negative customer experience. Organizations often automate existing bad processes instead of redesigning their customer-facing operations based on the new and improved best practices. It is clearly the time to refocus on what CRM processing is really about, “the customer” in order to achieve the results CRM has promised to deliver.

No business can exist without customers. No matter how good a product is or how efficient an organization operates, without customers there is neither growth nor profitability. Customers make the purchase decision. They bid the price up or drive it down depending on the value they perceive in a product or service. The customer decides which way and when he wants to interact with a dealership and how he/she wants to explore and ultimately buy whether it be online, over the phone, in a store or through any other channel. It’s the customer’s perception of everything a company does and represents that creates an image of its people, brand and dealership and eventually determines its success or failure as a business.  Thus, it is ever so critical for every corner of your store to be radiating these new “relationship building” elements or your store looks just like everyone else and consequently your business will ultimately hinge upon ‘best price’ issues. We have to give customers real reasons to do business with us way beyond just the money factors.

This is why successful companies build their business totally around the customer. They know who their most valuable customers are and they understand their needs and buying habits. They target and tailor their offerings and personalize the interactions with their customers. Successful companies design and continuously improve business processes across their entire ecosystem “including suppliers and channel partners” to respond quickly to changing customer needs. They strive to become fully customer-driven, deliver superior customer value and consistently provide exceptional customer experience across all customer touch points. They make every effort to build long-term relationships with their customers, recognizing that keeping customers is more profitable in the long run than winning new customers over and over again. Essentially this is what CRM without compromise is about.

More than ever, Relationship Building training is so critical to organizational success. What we expose our team members to is exactly what they will become. What have you done lately to grow your team to new heights in learning new things? After more than a decade of harnessing cost-savings potential to remain competitive in an increasingly difficult economy, driving growth has replaced cutting costs as the most important goal for most dealerships. Hence it becomes no surprise that CRM is back on the agenda of many top executives.

To stimulate new growth, wise dealers are beginning to explore a more disciplined approach to exploit untapped opportunities and make the most of relationships with customers. They seek new ways to increase wallet share, deploy new channels, penetrate underserved segments, reach out to new customers and enter entirely new markets. To ensure sustainable, profitable growth CRM processes must take a leading role in the value chain, enabling organizations to excel not only across, but beyond customer touch points and rapidly adapt to changing business needs.

When price and efficiency were the driving forces of competition, many companies focused on increasing their competitiveness by improving their internal processes. Continuous, standardized processes were the key to new efficiency potential and for survival in the market. But the spotlight has since shifted to relationships with customers, employees and partners. Internal efficiency alone is not enough to guarantee market differentiation and competitive edge. Success is no longer determined only by price and product, but by well-designed sales channels and well understood relational sales and service processes.

At first, companies focused on CRM for a single department or function. They often turned to niche CRM software vendors to not only support but be their CRM effort. However, while sales productivity, call center efficiency or marketing effectiveness may have improved, progression to effectively managed customer relationships was often prevented by an internal focus, deployment of tactical departmental solutions and inadequate integration of front-office and back-office systems. Successful dealerships have realized that integration along the entire process chain is the only way to gain a lasting competitive advantage. But so far, few companies have used this profitably, redefining their own strategies and reshaping business processes for a truly customer-driven enterprise.

More and more organizations are beginning to realize that overall CRM success depends heavily upon how they treat their employees. Hiring good people, setting high goals and expectations, providing needed resources, training and developing new skills, and holding people accountable for results seem to be critically important ingredients in organizational success.  Employees who work in organizations with these qualities often exert more effort toward organizational goals, report higher levels of job satisfaction, and are more likely to stay with their company over the next three years than employees working for organizations that do not possess these qualities.  And, for the bonus round – their customers love them and keep coming back.

Although the ingredients for organizational success appear straightforward, few companies appear able to implement them on a consistent and comprehensive basis because many managers believe they do not have time to interview potential employees properly, much less set clear expectations and develop skills. Nor are they much better at holding their employees accountable for results, as many managers do not take the time to conduct weekly one-on-one performance much less annual reviews. If research vibrantly shows us that these leadership activities are related to an organization’s ability to attract and retain key talent and in turn provide us with superior results, and if managers are not doing them, then what other things are they spending their time on that could possibly be more important?

CRM Process Leadership is the required key in order to grow people, processes and customer base. Never a better time to re-invent yourself, your people and your store than today. Say goodbye to the status quo and hello to new processes and relationship principles that will encourage and sustain overall dealership growth.

Here are a few required Skill Sets for Team Member Development to ensure your growth plan will succeed and provide an enhanced Customer Experience:

CRM Team Member Development Training Requirements:

Superior phone skills

Phone guides for every occasion

Personality and behavior alignment understanding

Best practices in objection handling

Securing appointments with high show ratios

Empathy for customers

Discipline towards mission goals

Interviewing/questioning skills

Listening skills

Email/text grammatical and construction skills

Follow-up integrity

Value-added customer experience enhancement

Overall communications skills

Negotiating skills

Product knowledge

Customer-centric attitude

Teamwork

These are just a few of the essential elements required to operate a well-honed operational customer experience. Target these elements into your development program and you will receive an abundance of engaged employees, happy customers and your business will become stronger.

Personally, I like a BDC although I prefer to call it a CRE or Customer Relationship Experience. The theory here is it is easier to “thoroughly” train and develop a 3-to 8-person team than it is to train 15 to 20 people towards excellence. Sort of the Navy Seal vs. Battalion theory. It offers up tight controls, accountability and a discipline towards mission fulfillment. I know the term BDC has a negative connotation attached to it due to the multitude of dealership failures over the years but I conclude, as many others, that it will become the future of our business.

Most of the BDC failures in the past were due to:

Management not appreciating the value proposition

Lack of process training

Lack of leadership overseeing project

Lack of policy and procedures

Not knowing how to pay the team members,

Thinking the costs were prohibited

Etc., etc.

Too bad the failed dealerships did not take the time to investigate deeper the critical elements to drive a successful BDC venture. As the saying goes, you get what you inspect not what you expect.

If you are interested in receiving a few enriching ideas that you can employ now send me an email chuck@impactgroupcrm.com and I will get them out to you. Also, if you have any questions or success stories I would love to hear about them.

One of the most popular things I do in helping dealerships grow is through what I call the Total Dealership Inspection and Analysis. This one to two-day event (depending upon the size of the store) unveils a multitude of profit and cost containment areas for improvement. It inspects; current processes (including all customer touch points), BDC capabilities and/or development, website analysis, HR, employee aptitude and offers up improvement suggestions which otherwise are generally overlooked. Key strategies and problems are identified by interviewing most of the dealership’s team members. The theme here is “you don’t know what you don’t know” and to have an outside experienced eye examining the business provides new and refreshing business enhancements.

These interviews provide an immense amount of facts, processes and the identification of a strategic plan towards the improvement of; various profit enhancers, problem identification and resolution ideas, sales and service training needs, management and individual employee assessment, leadership assets and liabilities, enhanced processes and procedure suggestions as well as cost containment ideas. Additionally, a huge benefit through this process is I have the opportunity to encourage, mentor and provide leadership ideas to team members leaving them more engaged. This subsequently unveils a strategic process road map for the dealer to give consideration to regarding implementation.

“THIS IS THE NEW WAY WE ARE APPROACHING BUSINESS WHICH ALLOWS US FLEXIBILITY AND ADAPTABILITY FOR ANY MARKET CLIMATE.”

Main Benefits: Precise reporting and identification of areas for improvement and an implementation plan for increased profit, processes, team member development, cost analysis/containment, lower attrition through stronger team synergy and business growth.

Recently, I performed this engagement with two different stores in two different states and I want to point out the difference in the two to see if you can more clearly understand what it is you have to do to truly make a difference in growing your store and your team members.

Before I begin this process with a store, I hold a short managers’ meeting to unveil everything we are about to do. Main Point: To obtain buy-in and commitment for these managers to ensure the processes are fulfilled.

On the surface, both of these stores understood the importance in having good business processes in order to more effectively operate their dealerships. They both understood that because of the market, if they were to thrive not just survive, they simply had to adopt new ways of doing business that added differential in the way they did business vs. the way their competitor dealerships did business.  In fact, both stores told me that consumers could purchase the identical product they each sold at over 7 to 9 competitor dealerships within a 45-minute drive. Therefore, we all agreed that it would be wise to differentiate or make their stores stand out as to attract more customers and employees by giving them something different and better. Sure, but how do we do it? After discussions revolving around how this process worked and the benefits to be derived, both stores invited us in to perform the analysis.

After the analysis was complete in both stores and recommendations were made, I was invited back to put on a sales and management workshop. In the first store, we had 15 sales people and 5 managers split into two different classes, morning and afternoon so we had coverage on the floor.  Everyone was engaged and on point with the pre-agreed upon curriculum material. There were great questions, great roll playing, and great enthusiasm for the newfound business elements that just make perfect sense. Everyone was eager to learn more and to begin utilizing the techniques/processes because they could clearly see how these business practices were going to give everyone a raise in pay. The managers from the first store actually said they were very impressed with the sales team and the maturity in which they learned the material. Similarly, the sales team mentioned that they were really impressed with the questions, answers and synergy submitted by the managerial team. Wow, we have connection going here. You see, the managers and sales professionals were all on equal turf in the workshop and working as a team by embracing new techniques they know will make themselves, each other and the store better and that is a good feeling of hope because they are learning new material together as a team. And, everyone had some fun along the way.

Now, the first day of the second store’s workshop rolls around and we have 16 sales people and 5 managers signed up, again split in a morning and afternoon session. The enthusiasm is the same, the questions are similar, roll playing and eagerness are all the same except for one huge thing. The managers at the last minute decided not to attend either of the sessions. When I would look out to the tower it was the same old thing; look busy even though you’re not and perhaps a little “I know everything anyway why have someone teach me something that I know anyway?” The GM made a fatal mistake by not requiring that the managers attend. Hum, see something wrong here? You bet you do.

Here is the way the story unfolds. The first store implemented and accepted the responsibility of fulfilling everything to the tee and as a consequence began converting opportunities into sales, closing percentages went up because they knew how to communicate to customers in new ways not explored before, the team worked as a team enjoying the new processes, follow-up calls now meant receiving appointments for a re-visit, the internet department now had new ground upon which to stand on and the improvements took hold. Great first month, better second month and the improvements keep coming because this store built these new processes into their new store “culture.” Meaning; this is the new way we are approaching business which allows us flexibility and adaptability for any market climate. One team looking in the same direction. Word got out that there was an enhanced place to work too.  Candidates for positions began clamoring for jobs within six months.

The second store’s sales people were very excited for about three weeks and then reverted back to doing whatever they felt like. Why? Because there was not one manager who could mentor the team much less even speak on or answer questions regarding the process involving these new techniques. Four sales people left after three months and business is just about where it was. The managers are continuing to berate sales people into submission and killing their spirits.

There is a vast difference between manipulating and influencing others. Manipulation deliberately uses and abuses other people to act out your own intentions. Influence, on the other hand, requires buy-in on the part of the person being influenced and a willingness on their part to support your goals. You cannot influence another without that buy-in taking place. People respect other people who have the power to positively influence others and get things done. Manipulation is the dark side of management. When you manipulate others, you give away any chance of gaining respect from others. It doesn’t matter whether the manipulation is overt or covert; manipulation has no role in a true managerial skill set…influence does. A simple review of Dale Carnegie’s age old best-selling book, “How to Win Friends and Influence People” expands on this.

Process implementation of “anything” is only as good as the culture the managerial ‘discipline’ of the store makes it. So many managers believe they are “doing all the right things” by belonging to the right clubs, associating with the right leaders in the community, attending highly visible community functions, or belonging to the right professional associations. That’s just the persona. It’s not the person. Unfortunately, there are way too many managers with “manufactured” images rather than real ones. People can tell the difference. When you peel off the veneer, you often find a different person hiding behind the “professional” image. Sometimes the real person underneath isn’t a very nice person. Leaders who command the greatest respect are those who are “themselves” 24 hours a day, seven days a week. There are no Dr. Jekyll/Mr. Hyde surprises with a real person. You will command a deeper level of respect when you let your human-ness show. It demonstrates to others that you are not afraid to let your true colors show and your vulnerability is open to all.

Respect is something you must earn. You cannot demand it from anyone. The only person you can demand respect from is yourself. Demand that you become a better manager to the individuals you are charged with developing. When you respect yourself and others, people will respect you in return. Examine how your actions can enhance your ability to influence others and earn their respect, not just demand it. A title does not automatically give you respect. Also, if you expect subordinates to be accountable you must exhibit accountability yourself and inject it into your dealership’s culture as well.

Speaking of accountability, one of the biggest challenges I see in our industry is obtaining accurate information regarding up traffic, effective and consistent follow-up and identifying owners in a timely fashion as they visit to name a few. Why?  Feel free to disagree with me but most stores tell me it is because the sales consultants do not take the time to enter the guest information.  Whether it is because they are lazy, don’t want to admit a guest left without purchasing (and experiencing the berating of a manager), lost the guest information or simply forgot. We live in a data-driven world and as a manager, data should be your number one priority for information in order to grow the store. Imagine this for a moment, I recently discovered a company who has developed a super cool device that acts as a receptionist, sales manager and “up-counter” all in one and can connect this data to your existing CRM. It will tell you who they are when onsite and identify where all guests and employees are at all times while on campus. Plus, they allow a dealership to “push” ads to visiting guests like “Thanks for visiting with us today Mr. Johnson, we want to let you know we are having a 10% discount in accessories and tires today” or text messages like, “Mr. Johnson, your car will be ready in service for pick up in 5 minutes.” To make it even sweeter, it allows a dealership to send texts and emails to guests not only during visits but also as a follow-up after they leave and even sell ads to surrounding business like Starbucks for a discount on a cup of coffee while the guests are waiting in your service lounge. Wow, technology is really coming along to enable managers to do their job even better.

As a leader, the choice is to either stretch yourself towards new horizons or stay put. Staying put is not the way of a real leader. If you would like to receive more information on developing a process culture or the latest technology component shoot me an email requesting either and I will promise to get it out to you. Start your day tomorrow with the thought that you can and will develop an enhanced dealership culture for yourself, your people and the dealership. You will be glad you did.

This response leads me to ask a few dealers & managers how they felt about this.  Everyone I spoke with agreed. One, in particular, a well respected North Carolina based General Sales Manager by the name of Jason Pies whom I have known for many years was excited about expanding on this very subject. His observations from first-hand experiences over his 27-year career lead me to share with you these observations from a perspective everyone reading this could align with.

Below, Jason provides some solid input observations from the “Manager’s” standpoint as well as the “Leader’s” standpoint on this article’s title “Enthusiasm on fire is 10 times more effective than knowledge on ice” as it relates and exposes problems as well as solutions to Don’s response – “people.”

All too often “Managers” hire perceived equals or subpar individuals for fear of being “outshined” or outdone by their new recruits. This creates a mediocre team when the “Manager” is just managing to recruit an average team and keep them in this status.

“THIS WILL PREVENT THE ETERNAL HAMSTER WHEEL OF HIRING AND MOVE TOWARDS GROWING A POWERFUL FORWARD THINKING TEAM.”

Jason held a totally different mindset when approaching the management vs. leadership role in his recruiting efforts. As a leader, I wanted the most talented individuals he could find. He did find it better to hire individuals without experience as a result of the subpar standards of most dealers in the industry creating bad habits and a “slacker” culture. Slacker meaning: smoking on premises, leaning on the receptionist tower or anywhere else in the store, walking in the showroom while on their phones or tablets, not addressing the “Guests”(not customers) properly and promptly, hawking the lot while hanging out in the “huddle of doom,” chewing gum while carrying their Taco Bell cup to the closing table and so on. You get the picture. Creating a culture of professionalism was and is priority number 1. This was easier with “green” recruits or extremely pliable and humble inexperienced individuals.

You must find that WINNING is a habit and talent which is apparent in the individual’s successes in their personal and prior professional lives. If, as a recruiter, you look to spot these individuals you can create a store full of energy and enthusiasm, not to mention a group of soldiers championing the leaders cause. This is the quickest way to increase volume, CSI, and gross. Recruit winners and lead with direction and culture that sustains itself subsequently launching the team to want to be bigger and better. If you are hiring winners they are naturally competitive and the rest takes care of itself. Keeping in mind the direction and culture MUST be in place prior to hiring these winners. And, you must have a well thought out and professional “onboarding process” to attract the best of the best else, you will continue to attract average people. Well above average onboarding facilitates well above average employees.

Most dealers have “Managers” who hire the enthusiastic individual and considers themselves beneath the manager. This is why the manager chose them in the first place. Right?  The Enthusiasm lasts around 90 days at most. The sales consultant came out on fire and produced sales and the managers helped them because the enthusiasm is contagious and the consultant usually leaves the manager no option but to smother them…yet. This “Enthusiasm on Fire” is very powerful and produces sales for most new hires entering the industry as has been the case since I can remember dating back to April of ’93. This Enthusiasm results in knowledge, experience and a “know all” mentality which ultimately turns to “ICE” or “Knowledge on Ice.” Now that the salesperson has greeted 40, 50 or 60 guests they feel they have seen it all and can pre-judge situations in advance of knowing facts. They can “horse trade” with the guest on their trade in and the price of the car they are selling. They can quote payments because they know the “20.00 per 1,000.00 financing rule. They can tell them all about how the manager is going to try to make money but they will get them a good deal. This “knowledge on ice” sickness is usually the end of the “90-day wonder.” The managers then get upset with the salespeople for not being as good as they are or once were. The salesperson is no longer enthusiastic as a result. This is the cycle. Then the General Sales Manager must go recruit more subpar individuals to beat down and do it all over again. We all know that if a salesperson has 2 or 3 bad months in a row there is a 90% chance they will find another way to make a living and move on.

Hire winners, teach and train culture, treat the salespeople as professionals because that is what you need to see them as. Pay them accordingly for performance, monitor that performance Daily, Weekly, Monthly and Yearly with reviews offering your assistance/guidance to make them better than before. Harness the enthusiasm and promote the energy it brings. This will prevent the eternal hamster wheel of hiring and move towards growing a powerful forward thinking team.

Jason has in his personal experience, been able to raise the bar at multiple franchises. The latest being a Lexus store which was producing between 75 to 85 new cars a month in 2012 and most recently produced 300+ new cars in December of 2016. This was a concerted effort in hiring and developing winning, dedicated and enthusiastic salespeople. Over four years we were able to build a team and train them to be part of the mission to continually win the day, the week, the month. Our belief in each other and the dedication to culture resulted in a very powerful enthusiastic group which supported each other in all conditions. We ended our meeting with “WE CAN, WE WILL” and always did. We did not miss a single objective in the last 16 months even though some of our objectives were set at 120% of the previous year’s same month.  Somehow the belief in themselves and the team always prevailed over rainy days, slow market conditions, state fair week, winter months with short days and other less than desirable conditions.  Our mission was to uphold culture and keep the days fresh. Be present 100% of the time. The “present” term meaning be aware and on point always. In lieu of the lack of experience some may have had, they showed up, set a daily goal and charged like Rhinos through the day to accomplish the necessary results required to make it happen. This is the enthusiasm on fire methodology. After all, sometimes your best is not good enough. You must do what it takes to succeed or, in other words, simply follow through.

Jason delivered some fairly potent observations and corrections in dealing with team member and dealership development as well as the realignment of managerial attitudes towards new and current hires. The biggest problem I see as preventing improvement will be determined by the self-esteem and forward thinking of the manager. I personally experience this at some dealerships.  I suggest a few good ideas, processes or training initiatives and the one manager who “thinks he knows it all” will be the one who is not of favor.  Not in favor of increasing 20% revenues, not in favor of increasing team member skill sets, not in favor of stronger everything?  Why? Well, the reason lies deep beneath the surface.  He/she does not want to be superseded in knowledge, experience, rational solid development and frankly one of the biggest…insecurity. These managers will very consistently keep you, the store and its people down. Time to switch horses if the aforementioned describes any of your managers. Don’t be a prisoner to a 1985 business model in a 2017 marketplace.

I think the following pretty well sums it up. The South Carolina Basketball Coach, Frank Martin was recently asked by a young reporter the following question; What’s more important to you when you coach and teach, your players’ technique or their attitude?  His reply was; Attitude comes first. We have to have guys who believe in our mission. They have to believe in what we want to do and when they believe we can show them the technique.

Always be improving with everything you do then sit back and watch the difference it makes. If you could use a couple additional ideas in developing your team, shoot me an email.

Sporting Clay Shooting is one of my favorite things to do. It is like golf but with an over and under shotgun. If you have ever done it you know the joy of getting outdoors with a few buddies, smoking a cigar, laughter, the smell of gunpowder and the exhilaration and high fives by “dusting” clay pigeons. This past weekend, having super nice weather here in Virginia as we were shooting we stopped at a couple of stands whereby the trapper sends out a pair of clays simultaneously. It is called Simo. They fly so fast you have to think very quickly as to the best position and timing of the shot to make. It first appears easy but it is actually quite difficult because your senses are so magnified in making sure you hit both birds going in different directions that you sometimes overeagerly shoot too quickly or too late at one and/or the other bird before formulating your plan. If you are patient, however, you can actually shoot both birds with one shot because there is a point in time where both birds actually intersect as they cross on their pathway in different directions. This requires calm, confident patience in carefully planning your shot to get both birds. I track the birds with both eyes open and when I see the intersection getting ready to occur I close my non-shooting eye, take aim and at that precise moment and take action by pulling the trigger. It is quite rewarding to see both clays reduced into “dust” with one shot. The formula; having vision (seeing it happen before it happens), planning, patience, timing, and action.

This reminded me of many dealerships out there where the formula gets mixed up so often it resembles a three-ring circus. Action, action, action without the vision, planning, timing, and patience required to afford their people the skill sets to accomplish their tasks and consequently their goal attainment.

When you don’t know what to do, try doing something.

Breakdown of the formula:
Vision:
A number of years ago, when she was still alive Helen Keller who was blind at birth was interviewed. The interviewer asked her “What could be a more de-habilitating handicap than not having your eyesight?” Helen Keller quickly responded, “Oh, that’s easy, it’s not having vision.” You see, sometimes you can see more with your eyes closed by envisioning what and how you want things to happen.

Vision is a cornerstone for true leaders because they cast out their vision beyond the reaches of mediocre shortsighted managers who typically wait for opportunities and/or problems to occur. True leaders reach out to the future and envision business getting better, their team getting stronger and envisioning a dealership synergy that bonds the team together like super glue. That is when everyone looks in the same direction instead of each other. Some of you know that my roots were well planted in Corporate America with Harris Corporation way before the car business. The thing that struck me about that work environment, first, as a salesperson and all the way up to an Executive was that we were trained every month and sometimes weekly to sharpen our leading-edge abilities, knowledge and self-confidence. We had to because our greatest foe was IBM. We owned the markets we wanted because we were provided with the ‘extra measures’ to become our best.

“IF YOU TAKE ACTIONABLE STEPS TO MAKE CERTAIN IMPROVED CHANGES TO YOUR STORE, YOU WILL REAP AWESOME BENEFITS FROM DOING SO.”

As an executive I was promoted quickly several times because of three things; I hired right, I trained my people right and showed care and concern for them all the time. That’s it, plain and simple. Like the tide coming in, when my people rose to new ranks so did I. Because of my background, I have been given a gift of seeing things in a dealership way beyond just being a ‘car guy.’ Certain aspects of dealership business are readily recognized and changes implemented to repair and/or improve. Why is it we in this industry don’t have the same vision? Ready, shoot, aim comes to mind. Due to the changing marketplace and economic conditions, statistics now indicate that in 1-2 years, half of what a salesperson knows about selling is obsolete for the current changing market. And, some of us are still using old material and the same tired word tracks. This will give you progressive deterioration if left unchecked along with high attrition, lost deals, team disintegration and lower profits because your team members are not growing. Put on a new pair of glasses and enhance your vision by taking your team to new heights of skill achievement. Do not confuse short-term motivational ‘raw raw’ locker room sessions, product or technical skills with sales training enhancement. None of these help your sales team or service advisors skillfully sell or build customer relationships or your managers become true leaders.

The pressure on business managers to deliver consistent, improving financial results is relentless – and often unrealistic. We must visualize our store and our people grow to their fullest potential. Then, constantly begin seeing the improvement areas to take them there every hour, every day, every week, every month. Your reward for this corporate approach to running your business will be rewarding in so many immeasurable ways. The galaxy of opportunities will surprise you.

Planning:
The challenges of modern business are so intense and ever-shifting, managers need all the help they can get. Most managers will spend more time planning to advertise than providing their all-important team members with ongoing ‘high quality’ personal skills training. I know a few GSMs who are much more concerned about what color balloons go up on the lot Saturday morning than about the care, well-being and personal growth of their team that produces (or not) his or her income every month. Go figure. I see dealers all the time spending $20,000-$80,000 a month on advertising and at the end of the month cannot, for the most part, give a clear analysis of the ad sourcing to determine the real ROI on their expenditure. Like buying swamp land in Florida in my book. What is the unrecovered ad expenditure? Guarantee it’s a ton of money that goes wasted and they don’t even know it. Am I just not getting it or would it make perfect sense to consider taking a small percent of the ad budget each month and place it into a ‘value building effort’ to increase the abilities and skill sets of your team members including management? Call it the “synergy fund” and let it build value then plan event training. You know, major league baseball players make millions of dollars but still get into the batting cage and take grounders or fly balls to improve their skills. Most, if not all of them, have personal trainers to fine tune those abilities even further. But many dealers are too busy counting deals and complaining about gross profits instead of utilizing their vision to see there are better ways to grow and develop their business.

Mr. Trump gets it and refuses to be pulled down by old-school paradigms which are perpetuating the continuing madness in our industry. Every dealership is saying the same things. Most websites look the same. And, most dealers do nothing to improve the skill sets of their management team to promote solid leadership. Nothing limits achievement more than small thinking! When you start your car, you should know the direction you are heading. Therefore, let your passion pull you forward and your planning give you direction for processes and training which endure the down times as well as the up times.

Patience
It takes time and effort to heal a sick or wounded work environment. In laying the groundwork one must first recognize that a commitment towards making improved changes is most important. Without this, nothing happens and everything defaults to business as usual very quickly and you lose credibility as complacency sets in. I do not agree with the notion that in order to create an improved effective change in the way you do business takes a long time. In fact, it can occur very quickly given a few cornerstones like empowering your people, sharing the plan with the team and giving them the economic results as they occur so everyone knows where they stand. Secrecy breeds fear and worry. It sends a signal to your people that you do not trust them or think they are incompetent in absorbing the information. Next, is investing in your people by investing in training and skill development which ultimately makes you more money. Investing in your people over an extended time frame says to them “you are important to me and a valued asset to this organization.” The moment you clearly recognize that you really do achieve a competitive advantage through your people, everything else falls in place nicely. Loyal customers are incubated through loyal workforces who are exhibiting new relationship building techniques which energize them towards customer-centric skills.

A dealership can, unlike the Titanic turn things around for the better much faster than most actually believe. How many times have you seen a sports team way behind in the game only to shock everyone by coming back strong when the chips were down to win the game? The patience element comes into play because you have to first give your team constant encouragement and pasture running room to build their skills and then continue allowing enough time to build them. If you corral (micromanage) them they will get unused organs atrophy and never run again because you crushed their spirit and creativity. I have found that almost every dealership employee I have ever spoken with would eagerly accept the opportunity to grow through effective personal development and enhanced training strategies. Sadly, most never receive it as they wait for their next job opportunity to appear.

Timing
No Dealer or GM starts out intending to build a lousy store culture, or even a just an average one. Most dealers would like their team’s productivity to be born out of a passion for the job and team synergy. Yet in this maddening marketplace, many dealers fail to see the value they can receive from well-trained people. About the timing, I guess the question you must ask yourself is when do you want to make a whole bunch more money? If later or next year is ok then that is your timing course of action. If you want to make more right now then now is it. Now is always better than hemming and hawing around “until next quarter” because the stores that choose to implement now will blow right past you.

Start a new agenda at the beginning of next month. Start your plan for doing so now. The job never started takes the longest to finish. Just don’t get fooled into thinking, like so many, that everything will work out without a plan. Be the entrepreneur you are intended to be and do it now. Breathe new life into the dealership and your people. Plant the seeds now for growing and reaping a harvest of opportunities down the road a bit. Sometimes the pursuit of the almighty dollar leads to selfish incorrigible activity ala VW’s willful skirting of emission requirement. Timing must coordinate with a well-thought-out plan.

Action
Sometimes we are more comfortable with activities that make us feel like we’re doing something opposed to actually achieving a goal. In order for the action step to succeed, the aforementioned steps need to be handled first. No more ready shoot aim. You are now taking all the planned steps to reap an abundant harvest of increase. Of course, to win the battle you must have good well-equipped soldiers. Winning is virtually impossible if your soldiers are weaponless, cold and starving. Three things must occur for any great action achievement; purpose, persistence, and patience. One tiny spark can ignite a raging forest fire and you can ignite enthusiasm for individual and team member growth the same way. If you take actionable steps to make certain improved changes to your store you will reap awesome benefits from doing so. If this is not a priority it will be like having a flat tire; then one day in the future you have to take care of it at a most inconvenient panic-stricken moment.

Three thoughts;

1. If you are the smartest person in the room, you haven’t hired right.
2. It is easy to get into a routine, complacent way of conducting business. If you don’t actively disrupt that and put new ideas in front of your people all the time, they and you will lose creative muscle.
3. Stay focused and don’t try to win a popularity contest.

Here are some action steps I would begin running my dealership by; Provide short and long-term company outlook to every employee, abide by the golden rule, create an atmosphere where the business was like family, constantly be developing employees and finally challenge yourself to be the best employer in your marketplace. The latter will attract the best future employees from your marketplace.

Faith that you can do something without action is useless. If you would like some help to starting a new direction shoot me an email requesting “action” and I will send you some ideas.

My last two articles covered conversations I had with Don Hall the CEO of Virginia Automobile Dealers’ Association which provided a multitude of revealing insights regarding our industry. If you missed Part I and Part II, you should check them out because they are filled with innovative topics you should be aware of. Don and I have a very similar alliance in looking at dealerships and one, in particular, is the lack of “corporate planning” at the store level. Sure, the big guys do it but most small to medium size stores don’t. My corporate background taught me valuable lessons about the importance for this critically valuable element in order to develop and grow any business so I thought it a good idea to share a simple approach any store can implement.

You cannot occupy leadership space without insisting on and build a solid foundation. This is still a good time to look forward and initiate new foundational plans for Business Development and Growth solutions.  Remember though, ninety-one million Americans every year make ‘New Year’s Resolutions’ and after only one week, seventy-one million of those who committed to a new resolution – break them.  If you need confirmation on this just go to your local gym the first couple of weeks after the first and you can nary find a parking place.  Then go back next month and you can pull right up and park at the front door.

Equally, if not more important is to first understand that there is still time to reflect on the year just completed and along with your ‘entire’ management team write down and discuss every mid to major adjustment affecting ‘certain processes’ you implemented. This could range from technology enhancements to people placed into more appropriate leadership roles to the design and installation of a Customer Relationship Center. It really does not matter what you speak about because what matters is the simple fact that you are communicating with your team members.

Going over the good things your store accomplished throughout the year always stimulates new concepts and ideas for moving forward especially when you recognize those who were responsible. You may even point out some of the difficult trials you may have encountered and how they were solved and who was involved in those solutions.  Henry Ford many years ago astonished his assistants by always responding to bad news delivered to him by responding with a “Great, thank you.” When approached as to why he always responded to bad news this way, he told them “You can always find good in any given bad situation if you are able to look for the good.” Then he pointed out an example whereby the bad news had to do with production being down. Upon examination Ford was able to replace a couple of key machines which in turn then increased production beyond the original levels achieved. Look for the good.

“GOING OVER THE GOOD THINGS YOUR STORE ACCOMPLISHED THROUGHOUT THE YEAR ALWAYS STIMULATES NEW CONCEPTS AND IDEAS FOR MOVING FORWARD ESPECIALLY WHEN YOU RECOGNIZE THOSE WHO WERE RESPONSIBLE.”

An important place to invest time and energy is to begin moving in the direction of a strategic-based business and marketing plan. Many of my clients have initiated a more focused and cohesive plan of attack after going through these exercises and I know you will too if you stop, take a breath and plan a couple of meetings with your management team. My friend Dave Wadsworth invited me along recently to participate in management meetings with eight different dealerships who were all on board with this concept. Each store was experiencing consistent growth due to the investment of getting the management team together monthly and assessing all the numbers and ideas. It works if you want to experience real consistent growth. But, you must want it.

First step is to combine all managers together, for in doing so, you will yield cross departmental suggestions to allow everyone to step out of their box and just maybe hear new ways of doing business. Below are the first steps to getting control of your growth and developing leaders to get you there. Adjust them to fit any particular needs you may have then print them so you can distribute the sheets at your first meeting. Start out with the easy stuff then ramp up to the meat which will drive the processes and inspire your people.

Here is an outline of the topics to focus on in your meetings. The items I write about here are on worksheets that meeting participants would complete at your sessions. If you would like me to send you the actual worksheets, send me an email requesting them.

2017 Management Planning Workshop
Initial focus is on how your dealership and its people can become better. Start the discussion and ask for specific suggestions regarding overall ideas from each participant.  Then, look at how each individual department can improve. Next you want to see how each of your managers can personally improve their own performance.

Now for some strategic planning:

1. Ask each manager to develop a Vision Statement for their department. This is where; if you had a magic wand you would visualize and put down in writing a ‘utopian’ department including personnel, tasks, functions, training needs and growth potential.
2. Develop objectives for each department:
   Objectives could and should be inclusive of personnel needs, financial expectations, technical solutions, organizational programs you wish to implement, cost containment plans, improvement of problem areas and general improvements which can be affected by yourself or with the assistance of other management personnel.
3. Identify your target market and business strategies:
   Think about: Who is your customer, who needs to be your customer, how would you go about locating and attracting more customers, how would you go about marketing and eventually selling those prospects, what do you think customers want, how would you advertise to attract more customers, what could your department do to enhance the “customer service” attitude, are you prepared to take on more customers, and what elements would go into you being prepared?
4. Next, you want to discuss what manager’s think is the single biggest problem in their departments and what is their solution to fix the problem.
   Now that you and the group have identified some target markets and strategies you need to focus on identifying what roles the management team will fill and what their duties should be.Managers need to manage group dynamics, run productive meetings, facilitate joint decision-making, and unify individuals into a single-minded cohesive team. Duties should include leading, coaching, teaching, training, advising and reinforcing the team. Not directing, deciding or dictating. Total “Consensus Style Leadership.” In this way, you can draw out strong opinions and effectively funnel them into equally strong collective “buy-in.”Dealership management should have an initiative to develop and implement a Strategic Marketing Plan including an: Executive Summary, Vision Statement, Objectives, Target Markets, Market Segmentation, Segment Strategies, Needs and Requirements, Competitive Forces, Communications, Success Keys, Service /Support Strategies, Relationship Emphasis, Expense Budgeting and Sales Forecasting, Measurement and Comparisons, Marketing Organization, Critical Issues and Management Summary.  Be facilitators and designers of guidance with clear instructions which will be necessary to develop the plan.  And, don’t forget to create an environment where your team members can come up with other ideas to enhance performance and efficiency.Having a Master Plan will help provide guidelines and principles to your leadership team and greatly improve the overall organization. Put an emphasis on team building, strong teamwork and continuous improvement.  Effective organizations also incorporate a Problem-Solving Resolution Plan. This will help recognize, analyze and solve problems that come up throughout the year. Develop multiple solutions if possible and try as many as you need to solve these issues. Keep your teams involved in deciding which solution is the best, and work together to implement the solution.There you go. By following most of the aforementioned guidelines for a Strategic Business and ESM (employee relationship management) plan you will most certainly engage your management team into a new way of thinking. And, you just might rouse some of those latent ideas stuck deep in the minds of your team. Communication is a wonderful thing and can launch you towards a more productive and growth-oriented pathway.  If you choose not to implement this initiative, you will most likely end up at that far away place called ‘Someday I’ll.’ You know, someday I’ll do something that radiates making a solid plan of attack, someday I’ll engage my management team in good thinking skills, someday I’ll utilize consensus style leadership, etc. Because, if you continue to do the same things day in and day out and hope for a different result, then you are dreaming.  Good fortunes can come your way by strengthening your team.

Build a High-Performance Team Approach by adopting the following guidelines:
Total Team CRM/ERM Management Guidelines:

1. Team Support:
   Maintaining it for the long haul.
2. Diversity:
   Using it to benefit the whole team.
3. Communication:
   Improving skills for team efficiency.
4. Change:
   Breaking way to new opportunities.
5. Trust:
   Building and maintaining it.
6. Creativity:
   Use it in solving complex problems.
7. Decision Making:
   Process improvement.
8. Leadership:
   The power of flexibility.
9. Positive Options:
   Resolves team conflict.
10. Team Success:
    Recognition & celebration; the greatest motivators.
11. On Track:
    Follow-up strategies for continuous improvement.
12. Technology:
    What technology elements will facilitate the aforementioned?

Ok, so where do we go now?   We start at the top of course. The top-down strategy simply means that everyone in management has to be committed to the business strategy, design elements, planning, implementation, managing and leadership of new processes. This includes the dealer/principal. This first process is the inter-relationship with your management team. They have to work together by looking in the same direction toward dealership goal attainment. If you need a few additional ideas, send me an email.

Every now and then you meet someone who simply stands out as an impressive individual who radiates confidence, intelligence, charm, respectfulness and ties it all together with an infectious genuine personality. Don Hall, the CEO of the Virginia Automobile Dealers Association, for the last 30 years is one of those rare individuals.

I recently had the opportunity to spend time with Don in gathering his response to several automobile related questions and came away with enough detailed information to fill this entire magazine. In the spirit of limiting this piece to a few pages I chose the following interview questions to highlight as Part I of a two-part piece (Part II will be published in an upcoming issue of Dealer magazine). Don’s perspective should hopefully enlighten dealers to encourage their respective State Associations to play a much larger part towards their mission in assisting their dealership community.  

Don, walk me through your history, what brought you to VADA, and what benefits VADA renders to the Virginia dealership community.
Right out of the Marine Corp I worked for a bank while attending college. I clearly recognized that I was not well suited for a large corporate environment. I needed an area where I could flourish, and utilize leadership and initiative. The automobile industry provided that opportunity. I went to work with Carter Myers in Richmond, learned the business and did a pretty good job.

We all have a calling in life to do something. Most of us never find it. I found my calling was to work with car dealers. It’s an industry that needs representation and gets painted with a very broad brush about its negatives. It’s a growth industry still affording opportunities to lots of people. In Virginia, there are approximately 30,000 people working in the car business with thousands more indirectly involved. It’s a big business. So, what better way for me to serve the industry? Like being called to the ministry if you will, for me, this is like doing the Lord’s work. It’s a calling I felt. The calling involves smart decision-making and very difficult maneuvering with boards of directors, legislators, lawyers and coming up with the right answers to benefit our dealer community.

The fact is…dealers deserve to have people who care about them representing them. The Associations, if they have the right staffing in place, become the dealers’ lifeline in this business. It’s the one entity that really cares about whether you succeed or fail. It’s the one entity that is going to help dealers in any way possible as long as it is legal, ethical and moral to do what you need done. The Association is a place where you can truly be open because we are here to serve you and never take advantage of the relationship.

Every dealer in America has a responsibility to work with and help grow his or her State Association. As I said earlier, in working together we are a stronger industry. Be a leader because if you don’t then you will end up with whatever happens.

What does the recent presidential election mean to the automobile industry?
Whether you are a Democrat or Republican the lesson that should be acknowledged regarding this past election is that when a group pulls together great things can occur. The facts are that everyone said Trump could never happen and he did happen. Our lesson is if all Dealer Associations across the nation pull together as a team and develop structural changes that will make dealer business better and make for a better consumer experience it will make a difference.

“THE REALITY OF OUR JOB IS NOT TO SIT BACK AND TELL YOU WHAT YOU WANT TO HEAR TO MAKE YOU FEEL GOOD OR BECAUSE YOU CAN’T HANDLE THE TRUTH.”

 

Congress works for us, the American citizens. Many have lost sight of that and have adopted a “Let me keep my job in government” versus a Warrior Spirit representing the people. They often make decisions that make no sense at all and set regulations way beyond what was originally intended.

It is time for serious leadership not follower-ship. They and we have to bargain from a position of strength. From our standpoint and the dealer community, to protect our business lives as well as all aspects of our lives we have to be emboldened that our voices do matter and it is a time to standup. Better than ever this can happen with a pro business administration coming in.

We have a unique opportunity with this new administration to right the ship and make some major changes to things that are so ridiculous and make no sense. My favorite quote from a fellow marine, General James Mattis, which is tattooed on my arm, is “There is no better friend no worse enemy.” I am willing to risk everything for the people I work for and our government should feel the same.

What would you consider VADA’s biggest challenges to be?
Of course battling Tesla has been consuming a lot of our energy and continues to do so. But I feel another challenge we have is getting mega dealers who are coming into Virginia to understand how beneficial we can be when it comes to VADA’s services we render. We have worked very hard over the years to develop relationships with groups who help us provide the very best offerings. Unlike large brokerage conventional companies who provide similar services, we roll profits back into programs the dealers are not going to have to pay for. I can give dealers things for free that other companies are going to charge you for. We have no shareholder pressure or exorbitant bonuses requiring increasing profits. We cover our overhead to keep things running and pass on the savings to our dealer community through various programs.

Recently we had a large dealer tell us he felt we were too small to handle his needs. After some discussion he agreed to at least look at what we could do for him so we submitted a proposal. After a few days he called and said “Oh my gosh, I had no idea of the services you provide and the things you can do.” Needless to say, we got his business. I have dealers all the time tell me they are so impressed by the services we can provide.

Some out of state large dealer groups have told me they don’t see the benefit of joining their association. Here is the problem, the mistake people make is assuming that all associations are alike. We are not all alike. And, I don’t want to be like everyone else. Often times we suffer as an association because of a culture that exists elsewhere. We are different because our mission and culture are well developed and designed to benefit our dealers.

What would you recommend Dealers across the country expect from their State Dealers’ Associations? 
One, first and foremost is make sure you hire the right people. Give that executive the opportunity to hire his or her staff and pay them properly. At the end of the day this is what you should expect; A tenacious fighter who is willing to take on any and all issues to protect you and your right to sell and service cars in your respective states. To fight against bureaucrats and others who might try to stand in the way of you having a good experience selling consumers.

Dealers should also expect total honesty from their Association… meaning there will be times where they may tell you things you don’t want to hear. The reality of our job is not to sit back and tell you what you want to hear to make you feel good or because you can’t handle the truth.  What dealers expect from me is the truth. What you are paying for is leadership and an Association whose mandate is to protect the consumer and the relationship with the dealer. And, that relationship continues to be strengthened and continues to grow, and to make sure dealers are not left by the wayside as technologies are enhanced so we don’t become dinosaurs. Make sure they remember to keep consumers first.

Over the years I have had many dealers tell me they are just too busy to be involved. I don’t have time. My comment to them is you take time to do many other things because there is much more social attention given to those things or your friends think it’s cool to be on this board or that board. All those things are great but there is only one entity that can impact your life and if you don’t get that then you haven’t been paying attention. I can tell you right now that every state in this country have passed so many laws to make a difference in balancing the manufactures’ and your business to a level playing field. It’s a fact and if you don’t know it you haven’t been paying attention. Dealers have to be an active player in the Association world. If you don’t see the value then get involved and create the value because the many things you take for granted are the direct result of many other people across the Nation working for you behind the scenes. There has never been a more critical time to become involved.

In your opinion, what do dealers feel is their biggest challenge?
People, people and people.

How do you think dealers should target, attract, hire and retain solid employees to head off the roughly 70% industry attrition rate?

The reality is this. Dealers are always looking for people they can hire and retain. And, in my view what better place to look than the veterans who are getting out of the military service? I don’t care what branch of service or what their job was but these are the people you want to seek out. Individuals with a military background are used to a sense of discipline, they understand protocol and loyalty, follow processes, have a work ethic and appreciate an opportunity to provide for their families.

They understand leadership by example. They have seen it in action. When given the chance, they want to give their best. Military people are wired to stay with you for the long-term commitment and fit into a dealer’s culture.  They may not have the educational background you are looking for but they can learn anything. These young men and women who served in the military whether or not they served in harm’s way is immaterial need to be looked at.  The fact is, they all had responsibilities beyond whatever you can imagine involving people, team work, money, detail, equipment, strategies and danger all at a young age. They have been given responsibilities beyond what normally would be given to a twenty year old. So, they are already ahead of the game. Having said that, they will not work for you unless they know you treat your people well, have a mission statement, a solid culture and have a leadership style in place that’s worthy of following. Dealers also should be considering retiring vets as well due to their tremendous leadership experience.

Our industry should be the number one hallmark place our veterans look to when coming out of the military.

Lack of true leadership principles appears to be a huge roadblock for small to medium size dealerships. What would you recommend as an offset to this staggering problem?
Certainly not all dealers subscribe to this but we see a lot of dealers have a tendency to do this, and it’s a weakness not strength but has been a fact for a long time that dealers hire people who agree with them. I have watched management teams do this year after year and then cover for that owner (i.e. making comments such as Well, that’s not what he meant, this is what he meant). Most managers were 20+ cars a month sales people but when they get promoted into management we all forgot to give them the “leadership” skills, training and tools to become leaders so you end up with a bunch of ‘yes folks’ and nothing gets done properly. The team members don’t grow and as a consequence, the store doesn’t grow.

Chuck, I do like your approach to developing dealerships by introducing them to the principles of leadership first because that is what is really needed in our industry. But this can only happen when you have a dealer who is open to new things, takes in suggestions and is not stuck in 1991.

Thank you Don for sharing your background, and perspective on how dealers can overcome challenges, and can play an active role alongside state associations in creating positive change for their own store as well as the dealership community as a whole.

What’s Next…
Stay tuned for Part II of this interview, which will appear in an upcoming issue of Dealer magazine. I’ll share how Don envisions the future developing for the automotive industry, as well as what he believes you can do to differentiate yourself from your competitors (while still adhering to OEM mandates), and much more. In the meantime, both Don and myself welcome your comments and/or questions so please take the time to email me and we will team up to get back with you.

Author: Chuck Barker

CHUCK BARKER is President & Founder of Impact Marketing & Consulting Group, located in Virginia. He has assisted Dealers & Corporations across the country in Sales & Service Development training programs, Management Leadership Workshops and Business Improvement/Analysis Consulting. He is a pioneer in BDC, CRM, Best Processes and Team Member Development since the early ‘90’s. Chuck has held Automobile, Corporate and International Executive positions for over 27 years. Chuck has been a monthly author/contributor for Dealer Magazine for over 11 years. Email: chuck@impactgroupcrm.com.

 

In taking a detour this month I want to share with you something I have been observing in some dealerships which frankly are holding back business achievement. This article will be a living testament as to why it is so

important to establish certain things first. Just this past month, I spoke with several dealerships regarding their latent and unfulfilled attempts to establish a solid CRM strategy and see business growth.  Actually, it astonishes me to see what some stores think the answer is and what is involved in establishing a disciplined  solution.

Go slow, yet be deliberate with your quest to identify processes and training needs, locate solutions, purchase elements, implement them and finally, put in play developing your store’s growth potential.   Just like writing a book; one word at a time (or step) is the best method. Of course, before all this occurs you remember we do have to develop certain processes for every nook and cranny of CRM and then maintain a vengeance in adhering to those principle processes.

Let’s take store number one for now; Wow, newly upgraded CRM software tool. They just went out and purchased everything they possibly could which looks, smells and tastes like it has anything to do with how “I define” technology and CRM. I mean this store was ‘wired up’ with every gadget, software, camera, monitor, wireless headset and computer you could wildly imagine. Initially, I felt like I was in Best Buy but then migrated quickly over to  more like CIA headquarters as they began boosting about and showing off the sundry of ‘stuff’ they had acquired to really take this initiative towards a successful solution. With pride, the Dealer sat back as he rattled off technical narrative descriptions of all the ’stuff’ which he espoused would deliver his store to the promised land of eternal enhanced business. Well, gotta tell ya, he won’t see that promised land for a while due to the fact that he sinned on his conquest towards it. How do I know this?  Upon the conclusion of his orchestrated, well rehearsed symphony of harmonic technical descriptions of the specific products and ‘what it can do,’ I asked a few questions.

Well, Mr. Dealer, (We were not yet on a first name basis, yet)….

Question:
To what degree have the new products rendered a Return on Your Investment and how are they assisting your team?

Answer:
Well, I really can’t tell you that yet because we are still attempting to figure out what all this stuff is and everything it can do.   It is really remarkable what all this technology can do. 

“YOU CANNOT SIMPLY TURN ON TECHNOLOGY AND EXPECT REFRESHING RESULTS WITHOUT A SOLID PLATFORM FROM WHICH TO BUILD UPON.”

Question:
I see, well who or what company is responsible for training your team on the proper usage?

Answer:
There was not one company who could deliver all the products so we have different vendors for most of them and they offer their services.  And, of course that creates a problem because of various scheduling problems and making sure everyone who should be working is working so they get trained.  I know we need to get on that.

Question:
So, who in your organization coordinates this training?

Answer:
That’s a good question.  I think it should be the GSM or one of the managers but they are just tooooooooo busy to really get around to it so we are winging it right now. 

Question:
How’s it going overall in your opinion?

Answer:
I can sort of tell how many telephone inquiries we are getting and how many appointments we are making and who shows and who doesn’t and which ones sold.  It will also tell me who calls and how long the conversations were and lets me listen to a recording of it. But honestly speaking, even though I do love all the new toys  our numbers really have not changed.  That part is a little disappointing.

Question:
Why do you think that is?

Answer:
Not sure.  But if I had to guess it would be because my managers haven’t’ quite bought in yet.   

Question:
How about their subordinates?

Answer:
No, they are the same way.  Kind of waiting for someone to make them do it I guess.  I don’t really think everyone is putting in the information all the time.

Question:
What elements went into your decision making process to purchases these various products?

Answer:
I wanted everything I could get my hands on to help us grow this business.  We had all kinds of vendors with stuff you would not believe.  We just selected the ones we felt could work for us.

You can see how this was going, right?  I wanted you to get a feel for what is going on out there in some stores.  If we continued this conversation, Q & A by Q & A, Dealer Magazine would have to allocate a full magazine for its content so let’s abbreviate it to the messages which needs to be heard. In the few questions and answers above, you should be able to construct what was going wrong and what measures should have been taken to get the ship righted.

What would you say is the number one reason for failure at this juncture?  You got it; Lack of Leadership or better yet, a Champion for the processes cause who was in possession of Leadership skills.  Sounds like too many Indians and not enough Chiefs to me.  What would be next?  Right again; No Plan of Attack.  Ready shoot aim seems fitting here. You have to be developing people and processes to make it fly; product selection team, training manager, leadership, monitoring and then reaping the benefits, right? Simply stated, if you don’t have a map to get you to where you want to be then you will usually end up somewhere but not where you want to be. Then, tomorrow just becomes today but a day later.  Most of the managers in various stores essentially do not feel it is their job to get off the tower and actually “develop” their team. Sitting and waiting for someone to approach them with a deal is usually their ideal job description. Manager’s limitations are not what they don’t have its what they are not doing. One cannot occupy leadership space without seeing and building a solid foundation of growth for their team.  When you succeed at one level you either keep going or stop.

Key Point: Don’t stay where you started if you are not growing. An Oak tree planted in a pot will only grow as far as the pot allows.

I, along perhaps with you, sensed the excitement of implementing new technology by this Dealer yet a blatantly absent sense of excitement  revolving convicted leadership to make things happen and improve his business.  The tell tale sign was “my managers haven’t quite bought in yet.” Not bought in yet, give me a break.  Who runs the show and should have established buy-in a long time ago and made them a part of the process?  No, this is not the way I speak to my clients, just what I am thinking.  Usually I prepare a diplomatic delivery for the problem resolution.  I do believe in being candid with folks and identifying the unspoken harsh truths but in a professional deliverable.

This Dealer actually went on to tell me stories of how he cannot get his managers or employees to do things.  He tells them, they acknowledge,  and then they do whatever they want (business as usual). We all call it the ‘Can Do’ vs. the ‘Will Do’ ‘Can they,’ the skill set side and the ‘Will they do it,’ is an age old problem in this business. Lots of talented unsuccessful employees out there. Please don’t misconstrue my approach to this problem as using Gestapo tactics because we have all witnessed over the years how awful and unproductive that can be. And, it only produces temporary short-term, fear-based tactical results.

I would begin with the “Can Do.” Let’s make sure we, as the management team clearly understand all the necessary training, reasoning, processes, technology, buy-in and procedure pathways for attaining the best overall strategy towards the successful fulfillment of where we want to go. Then, and only then is the management team ready to deliver the same quality understanding and education to the team. The key will be what I call the “who’s watching” theory. Meaning, the managers of the store have to develop an unwavering devotion to monitor, check, assist, suggest and develop the individuals under their helm.  Don’t just tell – do. Let the team clearly see and understand the importance and benefits of following processes and accomplishing timely tasks.

We must all suffer one of two things: the pain of discipline or the pain of regret or disappointment. – Jim Rohn
In the dealership I described above, essentially there were no clear cut processes and everyone including managers went along with a ‘business as usual’ approach with nary an appreciation that there were new production tools around that just happen to be costing the store thousands of dollars. There is no quick fix or short cuts because most short cuts I have seen are really the long way around and not short cuts at all. You cannot simply turn on technology and expect refreshing results without a solid platform from which to build upon. The good news for today is; always, always begin with the tightest controls possible because you can always loosen them but if you start loose it is very tough to tighten those control standards and procedures. Be strong in your Leadership roles. They will eventually thank you and it will grow your business.

If you would like a few “processing guidelines” email me and I will get them out to you and your team.

Author: Chuck Barker for Dealer Magazine

Chuck Barker is President & Founder of Impact Marketing & Consulting Group, located in Virginia. He has assisted dealers & corporations across the country in sales & service development training programs, management leadership workshops and business improvement consulting. He is a pioneer in BDC, CRM, Best Processes and Team Member Development since the early ‘90’s. He worked in Corporate and International Executive positions. Chuck has been a monthly contributor for Dealer Magazine for over 11 years. His recently published project is a comprehensive ‘in-house’ sales/leadership training solution program for dealership entitled The Dealership Success Guide. Email: chuck@impactgroupcrm.com