I want to give the Automotive Dealers around the country a pat on the back. As a whole, Dealers have process figured out.
If you ask 90% of the Dealer employees what they are supposed to do when a prospective client enters the facility you will get a great response. Amazingly, from coast to coast, it almost identical in theory from store to store.
Greet the client, establish the needs, present product, appraise the trade, tour the service department, agree to figures, obtain financing, delivery vehicle, and finally timely follow up to ensure satisfaction. This has been the mantra for at least 40 years, and has stayed the same for the entire time.
Yes, there are differences in philosophy and execution, but the physical acts as a whole have been remarkably untouched, and are well known.
The answer to improvement and growth is Management. Not THE Managers, but the practice of Self, Team, and Leader management. As a business the highest value target for improvement is the percentage of times we perform the process perfectly.
Does your process happen perfectly 50%, 60%, 70% of the time? Every time steps are missed, or poorly executed is a lost sale opportunity. Our present traffic is our greatest opportunity for incremental growth, and better yet with minimal expense!
The first management technique to talk about is transparency. It is the highest value proposition. High value targets are ones that have the greatest balance of cost against ROI (return on investment).
Transparency, as it relates to business, is the policy of an open flow of information between Clients, Employees, Managers, and Leaders. Management through transparency has to have integrity to be effective. You either have a policy of sharing relevant information or you don’t. Let’s examine the the practice and effect on each level.
Self – What does it mean to practice transparency as an individual employee? When a client asks for $9,000 for his trade, what do you tell the Manager? Is is $9,500, so hopefully the Manager gives $9,000 as a counter-offer to make your job easier, or do you give the total and honest information?
When a client has an issue with their car, do you immediately apprise your immediate supervisor, while taking the necessary individual steps to correct it, or just try to keep it on your own level to avoid being judged for how it is handled?
Are you filling honest and complete information into your CRM (customer relations management) tool, or simply clicking through items and tasks to make it look like you are completing a ton of work?
These are everyday transparency decision points. Each one can derail our perfectly planned processes. By having a policy in place that fosters and encourages complete openness the business gains valuable information, and improves the bottom line.
One method to help this along is to actually post publicly the information as a business you expect your employees to be transparent about. A large sign on every desk that says “We will provide open and honest assistance with your trade value”, “Any issue you have with your car is a concern for every employee from Porter to President”, “Our future relationship is everyone’s highest priority, and we intend to reach out to you to ensure your satisfaction through thick and thin”
Managers – Managers have a heavy burden in this task. What is good an useful information for all? Should everyone know closing percentages for each Sales Consultant, or keep that ourselves until we feel it is a weapon to wield on someone who isn’t measuring up?
Is Department profit relevant? Can you get your staff to see that total department profit, ultimately effects their commission structure? Is it better to keep Sales Consultants on a need to know basis?
I know adding meetings in a car dealership isn’t high on anyone’s agenda, but they are the most effective method for a Management Staff’s transparency. Turn your meetings from long sessions about the needs of the Managers, to lightning information rounds. 5 minutes each day about stats from the entire Sales Department, can boost morale, and create open teamwork.
Leaders – All styles of management become reality when they are upheld by upper leadership. How can Leaders create an environment fostering transparency? Does more information equal more production?
Human resources can be one of the greatest opportunities in the Dealership. Are exit interviews performed, and information analyzed as a staff to help guide future hiring and retain employees? Is it more productive to move forward as soon as possible without this valuable information?
Reviews take time, effort, and require intense communication to work. Do your employees really know where they stand with honest feedback and expectations? Does your store evaluate employees on the fly with small sets of data, like how a Sales Consultant handled their last client?
Next post time to talk about transparency’s older brother, ACCOUNTABILITY…..