There have been some great conversations lately on the DrivingSales community regarding the importance of dealership metrics. Metrics give leaders the data they need to objectively coach their team to success. Metrics should measure both the performance of the employee and the effort they are exerting to reach that level of performance. By measuring and prioritizing the tasks and behavior that lead to success, dealers can get a deeper understanding of the performance of their people.

So metrics are important, really important! But how do we choose the right metrics? How do leaders know that they are focusing on the correct actions that lead to success? Unfortunately, there isn’t a one-size-fits-all solution that will work for every store. Every team and organization has unique needs and challenges that will need to be addressed differently. There are certainly some tried and true metrics that will apply to many dealerships, but it’s the responsibility of the leadership team to ensure that the right metrics are in place for their team.

So here are five rules that you can use to test that your metrics are a good fit for your team. Use these rules to filter out metrics that might not help you coach your people to success.

1: Are they Measurable?

Starting with the most basic filter, are you actually measuring this behavior? This might seem like a no-brainer but it’s important that you are objective with your metrics and avoid any subjectivity. You should be using data and facts to objectively lead and coach your people. If you aren’t actively measuring this behavior already, either create a process to collect this data or consider removing this from your list of metrics. 

2: Are they Easily Accessible?

Can your people easily access these numbers?  Your people shouldn’t have to dig through a series of confusing reports in the CRM to see their progress towards these metrics. These numbers should be available for everyone to see and internalized by the entire team. There’s no shortage of dashboard solutions today that allow dealers to easily communicate their numbers to everyone. Make sure that everyone on the team, including new-hires, understands how to access these metrics.

3: Are they Within their Control?

The employees on your team must be able to impact these metrics through their own efforts. This is a challenge that many organizations deal with. Only 21% of employees strongly agree that they have performance metrics that are within their control*. Your people should feel empowered to make a significant impact on the metrics they are held accountable to. Conversely, if they don’t feel like they can make an impact, this will negatively affect your employee engagement. Make sure that any metrics you prioritize are within the control of the individual.

4: Are they Fixable?

Are you able to sit down with an employee, ask them a series of questions, and get to the bottom of a gap in performance? Any metric you prioritize should have a clear path to achieve success. Whether the solution is to prescribe training, role-play or one-on-one coaching, etc, you need to have the ability to tweak and modify employee behavior in order to make an impact on these metrics.   

5: Are they Consistent?

Avoid setting up a moving target for your employees. The metrics you choose should have some longevity to them. It’s probably not a good idea to prioritize something that changes month-to-month. The real power in these metrics is being able to establish benchmarks for your employees that allow you to clearly understand their progress and compare data. Without that longevity, you are unable to have that clarity as a leader.

These rules should help you filter out metrics that don’t add value to your team and give you confidence that you are focusing and prioritizing the right behavior. The right metrics will be the framework for you to effectively engage and motivate your team to success.
   

*Gallup. State of the American Workplace