Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Jared Hamilton

Jared Hamilton Founder - CEO

Exclusive Blog Posts

Stop Multitasking in the BDC. Learn to Delegate and Say No.

Stop Multitasking in the BDC. Learn to Delegate and Say No.

There are many opinions on whether or not one can truly multitask. However, for those of us who work in the BDC, multitasking is a quintessential part of o…

ACT YOUR WAGE

ACT YOUR WAGE

The average automobile salesperson wage was (As of Jan 10, 2020) in the United States is $42,950 a year [sourced from Salary.com].  I personally know …

When Service Advisors Say, “Hey, That’s MY Customer!”

When Service Advisors Say, “Hey, That’s MY Customer!”

To say that the dealership I worked at was Dog Eat Dog would put it mildly. It wasn’t just a competition to be at the top of the figurative servi…

In 2020, Resolve to Change Pay Plans

In 2020, Resolve to Change Pay Plans

New vehicle sales are slowing and increased pricing transparency is eroding front-end sales margins. I predict that increased F&I pricing transparency …

Set Goals for the Year Not Just the Month!

Set Goals for the Year Not Just the Month!

Planning and setting goals for the year ahead is hard considering we tend to plan month by month especially when it comes to measuring success. So instead …

WOW! The video below is a sad but somewhat familiar occurrence in the auto industry.  It's video of a real sales meeting where the manager is insulting his people into motivation.  He tells his people they suck, failure is their fault and that he, the manager, refuses to be part of the problem. Unknown to the manager, one of the sales people whips out his phone and records the incident, then posts it to YouTube for all to see. No doubt we will write about the social media implications to the dealership's brand, but for now I want to talk about the huge gap in management skills that are demonstrated in the video. What do you expect? We have all been in meetings similar to this.  Most of us promised that when we became managers we would do a better job.  Sadly, without being taught the skills of proper management many in the industry become a product of the environment and poor management perpetuates itself. I will be the first to say a manager's job is to hold his/her team accountable.  However, there is a right and a wrong way to do it. By chewing the team in such a fashion without offering any solutions the manager becomes a problem creator, not a problem solver.  This is simply bad form that produces bad results.  Would you work harder for your managers if they treated you like this? Understanding Managements Power: There are three types of power a manager can have: (adapted from Steven R Covey) Coercive Power- This power comes as a result of fear in the subordinate. Because the employee has fear of a consequence, he or she will acts in a certain way to avoid the punishment.  Managers often fall back to Coercive power because it is easy to exercise and requires no skill.  All one needs to exercise Coercive Power is authority from a title.  Sadly, this management style often reveals character flaws in the leader, causing the team to lose more respect, starting a downward spiral.  Think of some of the great dictators in history and you will find extreme examples of coercive power. Greatness is never achieved through Coercive Power because the subordinates never strive to do great things; they simply try to stay out of trouble. Coercive power is not the way to build a lasting team of greatness. Utility Power- This power stems from the exchange of goods. The followers have what the leaders want, like a sales person's time and talent. The leader has something the follower wants, like commissions. A deal is reached and the parties exchange goods in defined roles.  "You sell cars for me, follow my rules, and Ill give you commissions" as an example.  The relationship is mechanical but usually fair.  Regardless, it lacks heart. Motivation based on utility power is better than coercive power because at least both parties are willing to participate.  However, Utility Power is still not the optimal form of motivation. Legitimate Power-this comes when the follower believes in the cause of the leader and trusts the leader can take the follower in the right direction.  Legitimate power will not come from a title, but is earned through service and performance by a leader who honors his or her team, works to serve the greater good and produces results.  When your team believes in your cause, and your managers have legitimate power, your team will be transformed to a whole new level. Sadly the manager in the video displayed no vision, had no connection with his team and only relied only on coercive power to try and destroy his team into motivation.  I sincerely hope he is a better manager than the video showed.  There was no building of greatness in this sales meeting, only destruction of the team. What could this manager have done different? 1.     First, he should have separated out those who did perform from those who didn't.  There is no need to rip your best performers for something they are not a part of. 2.     This was nothing more than an emotional rant.  Managers need to stay composed and in control so to avoid mistakes, especially during serious discussions around poor performance.  If you can't control your emotions don't try and lead your team when you are angry, you are likely to do more damage than good. 3.     The manager 100% separated himself from his team, blaming them for everything while washing his hands of any wrongdoing.  He showed no loyalty to the team and they have no reason to return any loyalty.  This manager should have diagnosed the problems, said we've got our work to do and together we are going to get items A, B &C done!  You are more likely to dig yourself out of a ditch if you are working together. 4.     He offered no evidence of his claims.  When you are trying to win the team over always offer evidence, especially when you are being negative people are going to be slow to take what you say at face value. 5.     He should have acknowledged management's failures and outlined the solutions to fix them.  If the team sucks, they didn't get the training they needed.  If the sales people are not capable of success they should have been let them go.  Ultimately managers need to manage, there was no management taking place in the meeting. 6.     The biggest task in being a successful manager is to be a problem solver.  The manager offered only complaints, no corrective direction or advice.  This manager should have had solutions prepared to offer the team a path to success and to lead them out of trouble. What else can we learn from this post?  What would you have done differently?
Eric Miltsch
When did "The Situation" from The Jersey Shore start managing a car dealership. Why on Earth didn't anyone get up and walk out?
Jared Hamilton
What i think is the most sad is that, like joe said, this is kinda par for the course and semi accepted in our industry. We cant accept this, not if we want our industry to progress. We are only as good as our leaders are, and as long as the industry accepts this type of behavior from the top we will suffer from huge inefficiencies and a bad rep. Its good the manager apologized publicly. That's a start.
Robert Wolf
the best revenge is now this guy is a YOU TUBE STAR!! Way to walk out on your team before building the back up. If they suck at building rapport, I wonder how often he trains daily??? I wonder how many engaging questions he has taught his staff?? My guess is zero. If his staff is that bad he should have just fired everyone.
Stanley Esposito
Those of you who are not in the business of selling cars get a peek at something that goes on in this business. People in the business stopped telling people about these things because the average person does not believe meetings like this occur. Do management types get up and act like this guy did in any other business?
Chuck Barker
Unfortunately, this is becoming the 'state of the union address' at more stores than we care to believe. I see it all the time. Small managers keeping their people smaller due to a variety of problems the managers are in possession of. Would you ever speak to your kids that way after a baseball game where they struck out 4 times? No, you encourage them by telling them they are good, they will do better next time and to keep getting stronger through training. And, I am going to help you get there. Here is the deal: If your sales people are losers then you are a loser because they are only as good as you develop them. The role of a leader is to grow his or her team towards greatness. Thumper managers are a dime a dozen. Strong leaders are rare. That manager should be removed from duty and engage himself in 21st Century Leadership Workshops. His behavior is a disgrace to our industry and one of the many reasons the general public has such embedded paradigms about auto dealerships. It is a great day to awaken leadership and begin growing your people towards greatness.

 Unlock all of the community & features  Join Now