Earlier this month I listed my normal series of response questions when I’m asked, “What should I pay for (this position)?” Those questions focused on five areas…your competitive market, your organizational structure, your processes, your gross profit level, and your performance expectations. I also wrote about, and provided, compensation guidelines and discussed how they should be used in helping you determine what to pay…rather than how to pay!

Unfortunately, the guidelines relate only to the four very general compensation “categories”… Supervision, F&I, Sales Personnel, and Other Personnel. And this really does makes sense, because the answers to my five questions subjectively control the compensation for any departmental position within these general categories.

The majority of the reader feedback to my message took the form of, “OK, but how do I easily look at my department’s organizational and compensation structure while keeping in mind the other four questions that you asked?” I developed a Microsoft Excel application that I use to do just that for the Variable Operations Departments, and I’m going to provide it to you at no charge.

The workbook, named “Organization & Compensation Structure_Variable.xlsx,” is available by going to http://garryhouse.com/products.htm, finding the listing for “An Application to Help Plan Your Organization and Compensation Structure - Variable Operations…Validate Your Headcount, Productivity, and Compensation at 4 Different Performance Levels,” clicking on the “Download” command, and saving the file. In addition to ready-to-use worksheets for your dealership, the workbook contains instructions and completed worksheets for a sample dealership.  

I hope this application will help you plan your sales department organization and compensation structure and also demonstrate my qualifications as a Subject Matter Expert (SME) in Organizational Lifecycle Management (OLM). Among numerous other professional services, OLM includes structuring dealership departmental organizations, personnel (headcount) levels, and management, sales, and administrative compensation. If you would like to further discuss the use of this application, please contact me at ghouse@garryhouse.com or 561-339-0043.

Warmest regards,

Garry House

Sound processes that become disciplined habits produce consistent, predictable results.

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