R. J. James

Company: 3E Business Consulting

R. J. James Blog
Total Posts: 2    

R. J. James

3E Business Consulting

Dec 12, 2018

CHANGE and Your Dealership’s CULTURE

As 2018 comes to a close and you consider what you will do DIFFERENTLY or BETTER in 2019; you might be considering making some CHANGES. 

Whether you are a Team Lead, Supervisor, Manager, Director, GM, SVP, or DP… Here’s several questions to consider as you contemplate making CHANGES:

  1. In 2018, WHY did you try to implement CHANGE?
  2. In 2018, HOW did you try to implement CHANGE?
  3. Be HONEST, did the 2018 intended CHANGE STICK?
    •      That intended CHANGE was implemented EXACTLY as intended?                                                          That intended CHANGE was implemented in a MODIFIED version?                                                        That intended CHANGE was implemented, but ABANDONED?                                                                That intended CHANGE was NEVER implemented?

Whether that 2018 intended CHANGE was People, Process, and/or Productivity was it impacted, positively or negatively by the dealership’s CULTURE?  Quite often, a business’ CULTURE is difficulty to define.  From my 15 years of consulting work with car dealerships here’s a four-tier basic framework I use to define, identify, and coach a dealership concerning their CULTURE: 

  • Traditional Culture... Strongly Resist Change (Quite often they will say something like, “That’s not how we do things around here.”)
  • Conservative Culture... Forced into Change by their OEM (The dealership is subject to penalties or incentives to make the change.)
  • Adaptive Culture... Accept Change to Stay Competitive (They make changes because their local competitors have done so.)
  • Innovative Culture... Aggressively Seeks and Implements Change (The dealership is usually among the first to invest in technology and people to build or maintain a competitive advantage.)

 

When trying to implement CHANGE at a car dealership, here’s the major hurdles I have incurred:

  • LEADERSHIP One… The DP and/or GM are not Active and Ongoing CHAMPIONS for the intended CHANGE (If the Head don’t… the Body won’t!!!)
  • LEADERSHIP Two… The Department Managers are not held ACCOUNTABLE for implementing the CHANGE (Unless it impacts my Pay Plan,  I don’t give a ****)
  • ACCOUNTABILITY… No measureable/monitored/time-bound Metrics to insure the intended CHANGE is being implemented

 

So dealership Leaders, as 2018 comes to a close and you are considering making CHANGE(S)… What are you going to do to insure that CHANGE(S) is actually IMPLEMENTED???

R. J. James

3E Business Consulting

Managing Director

1418

3 Comments

Bart Wilson

DrivingSales

Dec 12, 2018  

This is a perfect time to look back at 2018 and reflect on change efforts. I think one of the main questions that need to be asked before implementing a new process/tool/etc would be "is the change worth the impact it will have on culture?"  This question shouldn't stop you from growing and trying new things, but it is a good exercise on the cost of the solution.

Mark Rask

Kelley Buick Gmc

Dec 12, 2018  

This is great timing for this 

R. J. James

3E Business Consulting

Jun 6, 2017

Managers… Put Your Employees on the RACK

Relax HR folks, we are not advocating the return of that medieval torture device.  Instead, we are suggesting a systematic approach to helping employees be successful.  RACK is an acronym:

  • Responsibility
  • Accountability
  • Coaching/Complimenting/Compensating/Consequences
  • K (Consistent)

As managers, we have all bemoaned the employee that was a bad hire, an under-performer, or that minimal performer (doing just enough not to get fired).  So the question is, why are they still on our Team and what can we do to rectify the situation. 

During my management and consulting work, I have adopted the RACK approach to managing an organization’s most valuable asset… PEOPLE!

RResponsibility:  Start with the premise that most Employees want to be successful.  Too often, as managers, we don’t clarify what success looks like.  In the Interview Process, we need to identify the skills, experiences and attitude necessary to be successful in the job.  As Lori Greiner (Shark Tank) says, “Hire for Character and Train for Skills”.  Make sure the new hire knows what is expected and what SUCCESS looks like in the position they are being hire for. 

A… Accountability:  In the first 30 days, it is our responsibility, as the manager, to ensure the new hire has the orientation, training, and tools they need to be successful.  Also, we need to diligently remove all obstacles that could/would hinder their success.

Hold employees to the standard of performance you outlined in their interview and hiring.  Coach using SMART (Specific, Measurable, Achievable, Realistic, Time-based) Goals that the employee can see for themselves whether they are successful or not.

 C… Coach / Complement / Compensate / Consequences:  The “C” phase requires Objectivity!  As a manager, we should be constantly COACHING our Team: individually, collectively, daily, weekly, and monthly. 

That includes COMPLEMENTS to encourage and reinforce their positive efforts; ensure Top-Performers are appropriately COMPENSATED, and Under-Performers know the CONSEQUENSES.

Personally, I follow a 30/60/90 Day Coaching Cycle for New Hires.  The first 30 days it is on me to ensure they have all they need (orientation, training, tools, equipment, and information) to be successful; and to make sure there are no organizational/cultural obstacles. 

The next 30 Days, the New Hire needs to demonstrate that they can be successful based on the objective criteria set for Minimum Performance.  Personally, I use Weekly/Monthly Performance Reports that EVERYBODY on the Team can see to coach the New Hire and ALL Team Members.

At the 90 Days Mark, a New Hire knows whether they can/will be successful.  Usually, New Hires that have failed to hit the Minimum Performance Standard over the first 60 Days leave on their own.  They leave with their personal dignity intact and that avoids the negative impact on the Team of a firing;     

K… Consistent:  Manage with OBJECTIVITY… Have clearly defined Goals and Minimum Performance Standards!!!

Unfortunately, the Car Business has been prone to subjectivity in managing our most valuable asset… PEOPLE!  Clear and Objective Performance Metrics would make the Team and Managers focus on what’s important and reduce favoritism (true or perceived) that often undermines employee morale, efforts, and success.

 

As managers, we are not perfect.  All of us are “Works in Progress”.  Hopefully, this brief summation of the RACK gives you some insight and inspiration to improve how you manage your Team.

R. J. James

3E Business Consulting

Managing Director

2609

1 Comment

Jun 6, 2017  

This is great advice and an important message that managers need to hear. We have moved more and more in this direction since I have been in the car business where I am, and the more structure like this the better I say as a salesperson! 

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