I’m sure that at some time in your retail automotive career you’ve been advised not to “chase shiny objects.” And if you attended the 2016 NADA Convention earlier this month, you are certainly aware that the vendor community loaded the exposition floor with what they claimed to be “magic bullets” to overcome the challenges of becoming a better dealer. Were there products and services at NADA 2016 that will help improve your dealership? Absolutely! But “new and different,” by itself, won’t get you anywhere unless you have a solid foundation of performance management. 

As a subject matter expert (SME) in dealership compensation planning, implementation, and management, I continually receive inquiries from dealers and dealership managers who are seeking “magic bullet” pay plans to fix one (or more) departments at their stores. “Uh Uhh! No Way, No How,” I tell them. Just like having the best technology in your dealership, having the best compensation plans never has been, and never will, be a substitute for strong leadership and sound performance management.

I try very hard to convince my clients that before they pursue “shiny objects” and “magic bullets” that they really only need to get better at executing the basics of the automotive retail business. And in my world, as a professional dealership advisor with more than 50 years’ experience in the car business, the performance management basics remain the same:

• Establishing a culture that embraces accountability
• Recruiting and hiring employees that share your vision
• Developing, implementing, training, habitually performing, and flawlessly executing processes that will drive sales, profitability and growth
• Clearly defining, communicating and managing your expectations
• Focusing on employee satisfaction and retention
• Improving and sustaining customer satisfaction and loyalty

Do you feel your dealership has mastered the basics of performance management?  If not, what are your greatest challenges?  If I can’t personally help you, I can certainly point you in the direction of someone who can!

Warmest regards,

Garry House

(561) 339-0043