CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
One of my favorite comedians is Bill Engvall, who does the “here’s your sign” gags. (i.e. A buddy and I went fishing. When we got to the dock I pulled out a big string of bass. Some guy on the dock asks, “Hey, y’all catch them fish?” I said, “Nope. We talked ‘em into giving up. Here’s your sign!”)
As business managers and/or owners, we all like to think we’ve got a pulse on employee morale, which is a critical component to how successful a business is. As someone who makes a living knowing what makes customers loyal, I know for a fact that if a dealership’s employees aren’t happy, chances are that dealership will not have happy customers. Front line employee interactions with customers can make or break those customer experiences. Unhappy customers lead to fewer repeat customers and referrals, which eventually impacts the bottom line.
Yet occasionally, even the best business owners and managers are guilty of becoming overly absorbed with a particular issue, burying their head in the sand in response to a problem, or just being too darn busy to pay attention. They may miss those signs that should warn them when dysfunction is stealthily creeping into their corporate culture, ready to apply a long, slow chokehold that will lead to revenue decline.
So, in case you haven’t been paying attention to your corporate culture lately, here’s your sign!
1) If you haven’t changed with the times, here’s your sign! If the higher-ups at your dealership continue to do things because that’s the way they’ve always been done, or if they refuse to consider a new technology or marketing program because “we sold plenty of cars twenty years ago without that,” they need to get with the times. Today’s marketplace is very different than it was twenty years ago.
2) If you change with the times every week, here’s your sign! In contrast to never changing with the times, some managers change direction every week based on an article they read, a suggestion from a friend, news that a competitor is doing something, or even just on which way the wind blows. Sending employees scrambling in a different direction every week is counter-productive. Set long term goals, set programs and processes in place, and stick with them for at least six months to give them a chance.
3) If it takes too long to get stuff approved, here’s your sign! Efficient businesses demand efficient processes. If it takes a committee to get anything approved, or if employees aren’t following the processes in place, it’s a problem and there’s probably a reason. Do your processes need to be reviewed? What’s really slowing down employee productivity?
4) If you’re not rewarding your employees for innovation or hard work, here’s your sign! In general, it’s fair to expect employees to do their job without complaint. But if someone comes up with an innovative idea, or if an employee delivers results that you know must have taken extra hard work, reward them! Nobody wants to work somewhere if they don’t feel appreciated.
5) If you have high turnover, here’s your sign! Now I realize the retail automotive industry has higher turnover than most, but why is that? If you have more employees quitting than are leaving because of lay-offs, chances are there’s something wrong with your corporate culture. What is it? Conducting exit surveys is one way to find out; or it may require a little digging.
Fostering a positive work environment makes for happy employees, which in turn leads to happy—and loyal—customers. Have you taken a close look at your corporate culture lately? What do you think are signs of poor employee morale?