This is the second post on management for all levels of business. In the last post I explored using transparency as one of the base tenets of running a successful Dealership. Now I am moving on to transparency’s older sibling, ACCOUNTABILITY.
Dealerships have become experts on the individual process of handling a transaction. It has been analyzed from every direction, and has remained in a consistent form for decades. While there are many small enhancements available to the process, the physical steps are perfectly functional, and produce excellent results. This means our greatest method for improving within the Dealership is creating an environment where we perform the process properly the greatest percentage of times.
Transparency is one method of management that enhances the chances of process happening at a greater rate, by removing removing incentives to cheat a process by leaving fewer areas to hide missteps.
Now accountability steps in, and in many people’s eyes this is the long arm of the law. Accountability is measuring a performance against a defined set of rules, and reacting on any deviation from the set course. Sounds like a very harsh system, and in most employees eyes this is a very frightening concept.
As I was putting together notes for this post, I asked my cousin’s daughter (if you want true answers ask a child) if being held accountable sounded positive or negative to her. without hesitation she said NEGATIVE! I think this is the view of most people, but frankly accountability can be reinforced with negative and POSITIVE actions. As with most things in life, there has to be a healthy balance to be effective.
Let’s explorer accountability through three levels. Self, Team Leader or Manager, and Organization Leader or Dealer. Management isn’t just a task for the top of the organization, every employee should both learn and display it. To have integrity, management style and principle must flow up and down the chain.
Self:
What does it mean to hold myself accountable? What is the standard I have to live up to, and how do I reward or prod myself as I either ace the process or deviate?
It all starts with a “WHY” list. The tangible goals I have set, that will improve my life or standard of living. Those things which drive people to become motivated at those critical moments when everything is fighting against it. Call it the personal business plan backbone.
Your WHY list should be SMART (Specific, Measured, Attainable, Relevant, & Tracked). Break down the things you want into three groups, Short term (attained in 2 months or less), mid term (2 months to 1 year), and long term (1 year and over). Put actual written figures in as to what it takes to purchase each of these categories in the set time. So if your short term goals are $1,000 then it is $500 per month. Perform this at each level, then total the amount for a total monthly WHY list budget. This should become the reason you wake up.
From here total your bills that are necessary to keep living and add the WHY list budget to it and this should become your base forecast figures. In writing on your person at all times should be a listing of how many cars are needed to sell, and how many people are needed to meet to change the list from a wish to an actual CASHABLE SHOPPING LIST!!
This is the ultimate form of accountability to your own personal future. No other motivation is near as powerful. Better yet you are richly rewarded for simply performing your job, positive accountability. Feel free to email, or contact me for a sample forecast sheet that will help you keep daily tabs on this, it is easy to make.
Management:
Team Leaders are the group most associated with accountability. Typically responsible for punishing those that do not complete follow-up activities, chastising Sales Consultants with below average results, and acting as a general watchdog. What metrics are we chasing, and how what are Managers reinforcing?
My last post was all about transparency, and it is one of the most power accountability tools a Manager has, it creates peer pressure. Published results on key metrics that create success allow the group to work together to find the highest attained level. Two great points to publish are test drive percentage, and percentage of clients that receive a Manager’s quote to purchase. Each percentage is a direct reflection of the Sales Staff’s ability to follow proper process. Your CRM tool has the ability to track each of these steps. Hand out a spreadsheet, once a week, with the top performer on the header in bold type with their percentage and a congratulations. Every other Sales Consultant should be listed with the amount they are behind the person on top. It might look like this:
Salesperson A – 90% test drive percentage – TOP PERFORMER – GREAT JOB!
Salesperson B – <5%>
Salesperson C – <7.5%>
etc……
Executive Leader:
This is the trickiest. How can a top of the food chain leader hold himself and those below him accountable at the same time? The Dealership isn’t a democracy and nor should it be. So without being on equal footing how does a Dealer fall into accountability.
The Sales Consultant leverages his personal life to be accountable, the Manager uses the staff, but the Leader has to take accountability to a higher level. No management philosophy flourishes until it takes hold at the top!
The first key is beginning to see your staff like stock holders. They have their entire financial future hooked to your company, and your financial future is on their back. If you want your employees to care about your business like it is their own, show them why it is.
Have a quarterly meeting, just like a stock holder’s convention. Call it the “Board Meeting”, and make it a requirement for all Sales Staff! During the meeting tell everyone exactly what you are going to do to make their business thrive. Don’t walk in and ask them to work harder, show them how you are working harder for them. Show them what the business is investing to make sure that effort, time, and toil produce results.
Provide them with the same information you would want to know if you were investing in a company. How much inventory are going to bring in, and what will stocking levels be over the next quarter? Planned training, and employee improvement, what will the business reinvest into future success? Advertising guidelines and plans, Dealers spend tons on motivating the public, why not share what is happening going forward? Are there going to be any capital investments in the facility?
Every day your employees are considering your business and their continued relationship with you. Tell them all the great things you do everyday to keep them successful. You are ultimately accountable to your staff.
Next post management through metrics.