Since we initiated the Up To Speed blog, I’ve received numerous emails that suggest that one of the biggest road blocks to retail automotive success is the dealership (or department) culture. Because this is our first newsletter of 2012, I decided it opportune to tackle this thorny issue. “Culture” can be defined as the shared values and practices of the company’s (or department’s) employees, and it’s important because it can make or break your dealership. Business cultures change over time, primarily as a result of employees leaving and joining the company. These changes may be positive, or not; they may be intended, or not; they may be major changes, or not.

In assessing your culture, you probably need to ask yourself some hard questions. Here are a few starters:

• Do you accept mediocre performance?

• Do you tolerate negative behavior?

• Do your employees understand your expectations, and are they committed to them?

• Do you inspect what you expect?

• As a leader, do you continually set a good example?

If you like the way the culture looks and feels at your dealership, then all you need do is focus on supporting and sustaining your current values and practices. On the other hand, if you believe your culture needs to change…and you want to change it…you probably have some painful days ahead. Your first step must be to alter the attitudes and behavior of the granfalloons in your organization. “Granfalloons”…isn’t that a great word? It was first penned by Kurt Vonnegut in 1963 in his novel, Cat’s Cradle. It describes a group of people who claim to have a shared identity or purpose, but whose mutual association is essentially meaningless.

What are the characteristics of the type of culture we see in a successful automotive dealership, or department thereof? The list may include, but is certainly not limited to, the following:

The NCM 20 Group moderators, Retail Operations coaches and NCM Institute faculty members are all former dealers or senior dealership managers, with extensive experience dealing with dealership cultural challenges. We're standing by to help if you feel you might need outside assistance to assess or change the culture of your dealership, or in identifying and dealing with your granfalloons. 

To learn more about the professionals of NCM Associates, visit our Team page at www.ncm20.com.  By phone, you can reach NCM Retail Operations Consulting at 877.497.2363, NCM 20 Group operations at 800.756.2620, or the NCM Institute at 866.756.2620.