CALL US AT 1.866.756.2620
Adam Robinson

Will Graduating Millennials Want to Work for Your Dealership?

Diverse International Students Celebrating Graduation Concept

In just a few short weeks, countless new college graduates will be entering the workforce, actively seeking job opportunities in a variety of industries and positions. In fact, during the 2016-17 school year, colleges and universities are projected to award nearly 4 million degrees.

This surge in the candidate pool will be made up largely of millennials, who come with their own set of expectations and needs from an employer. This means they will be vetting potential companies just as much as they are being vetted. Will your dealership look attractive to them?

Unlike their predecessors, millennials are interested in working with companies they feel a connection to, that will give them a sense of purpose. They also want to know there will be room for advancement within the company throughout their career and place value on flexibility and a steady income.

Here are some key elements your dealership can focus on to help ensure it stands out to top-tier prospective employees:

Employer Branding

Now a requirement for grabbing the attention of today’s top talent, employer branding reflects a company’s reputation as an employer and how great a place it is to work. Because millennials are looking past the paycheck for enterprises they feel align with their values, it is important your dealership has a good reputation with both your customers and employees.

You can give potential employees an understanding of your company’s message through your website’s career page, which should contain details of your business beyond the typical description. Let prospective candidates know how your dealership is involved in the community, what initiatives are on the horizon, and highlight special perks of the job. Take it a step further and be active on your social media platforms, spreading your dealership’s message to your audience and encouraging them to do the same. Fostering a healthy work environment will also make your employees more likely to share the positives of working for you on their own, lending further credibility to prospective candidates.

Pay Plans

Millennials today are not fans of the traditional commission-based payment models dealerships have employed for decades, instead wanting a consistent, guaranteed income. The pay plan must be worth their while financially to appeal to millennials. Rather than an “all or nothing” approach to sales, dealerships are encouraged to consider offering a starting salary with bonuses along the way. Employees will be able to enjoy peace of mind, which results in an increased chance of your dealership retaining them for a longer period. What’s more, the customer experience improves because the salesperson focuses less on making the sale and more on genuinely meeting client needs.

Dealerships that have recognized the changing landscape, and reacted accordingly, have seen positive results for both their employees and customers. The elimination of the pressure to make a sale has allowed for a more relaxed approach to interacting with the client. Sensing the shift in salesmanship, customer loyalty and trust in the dealership tends to improve as a result.

Career Fairs

We highly recommend that dealerships attend, and even host, career fairs to become top of mind for upcoming graduates. By making students aware of their options before graduation, potential candidates can begin looking at your dealership and taking the necessary steps to be ready for employment consideration as soon as they earn their degree. Through hosting and attending these fairs, your management team will have the valuable opportunity to meet potential candidates in person right away, allowing for informational interviews that can save time and money on a formal vetting process when these candidates are ready to apply.

Career fairs save you time because rather than waiting until after graduation to begin the tedious job search, spending countless hours on cover letters and filling out applications, the right candidates can go directly to your dealership first, providing you with a larger pool for consideration in a shorter amount of time.

Internship Programs

Implementing internship programs at your dealership has a number of benefits, including the ability to test drive the talent, increased productivity, and an increased employee retention rate. Not only will your dealership be front and center for a new graduate, but you will also have the time to train and mold a potential employee long before he or she is ready for full-time employment, giving both the employee and your dealership a head start. This approach saves money and time in bringing a new hire up to speed and helps ingrain a prospective employee into your team and culture ahead of time, allowing them to hit the ground running once officially employed.

Internship programs can be tailored to your company requirements, ensuring you train students for positions your dealership may need most, using the strategies and tactics that translate into results for your demographic and marketplace.

By placing emphasis on what millennials are looking for from potential employers, your dealership can become a prime target for the fresh wave of college graduates polishing their resumes this summer, giving you the opportunity to not only attract the right talent for your team but also to retain them for years to come.

Thanks to NCM Associates’ partner, Hireology, for sharing their guidance on attracting and managing millennial employees. Learn more about Hireology and join NCM’s experts for more actionable advice on hiring the best people for your team in our Hiring Top Talent and Success-Driven Pay Plans classes.

Permanent link to this article: http://blog.ncm20.com/2017/05/will-graduating-millennials-want-to-work-for-your-dealership/

NCM Associates

#AskNCM: Three Simple Solutions to Employee Retention

Employee retention is an ongoing challenge, particularly in the automotive industry, and we receive lots of questions about this hot topic. Given that 80% of dealership employees churn within 18 months, retention is clearly something we need to address.

NCM expert Robin Cunningham explains the three elements to improve employee retention in this new #AskNCM video. And, while pay plans play a role in keeping good people, it’s not quite as important as you may think.

Have another question for Robin or the other #AskNCM experts? Leave a comment below!

Permanent link to this article: http://blog.ncm20.com/2017/05/askncm-three-simple-solutions-to-employee-retention/

Steve Emery

6 Steps to Control Dealership Expenses

NCM-CD-413 (3)

While most of your managers are driven by sales and gross, volume doesn’t necessarily equal more profits. If anything, pushing more volume through a bloated expense structure typically yields less net profit. And, if your manufacturer is too optimistic and producing excess cars with high volume goals, you face even more problems. Expanded production challenges your gross and leads to increases in the “Big 3” expenses: sales compensation, advertising, and floor plan.

Get a better handle on dealership expenses to make the most of your sales opportunities with an expense review. It’s a fast way to see how you are spending your money and to find the areas where you can cut back.

The Expense Review Process

  1. Get organized. Pull a list of every vendor and get all of your contracts in one place. Categorize your expenses and assign responsible managers. Make “spending management” a top priority for your office manager/controller/CFO.
  2. Vendor review. Sit down with your management team and determine which vendors provide overlapping services and can be reduced or eliminated. Identify vendors that provide services with minimal or no added value for your business and eliminate them as well.
  3. Vendor list. Designate a “preferred provider” in each of your expense categories. These firms may not offer the lowest cost, but they should all offer best-in-category services or products for your dealership. Once the management team has agreed to the preferred vendors, publish the list for staff use.
  4. Purchasing policies and approvals. Limit changes to the Preferred Vendor List and commitment authority (contracts, purchase orders, invoices) to as small a group as possible.
  5. Usage reviews. Usage and process reviews will often reduce your costs more than the negotiating of new pricing. To get started, review all transactions from the last six to 12 months and identify expense categories tied to sales, such as units, services, and parts. Pulling this information can be time-consuming, but if you’re already using LiveAudit it should go pretty quickly. If not, you’ll need to set aside time to get your financials in order. In most cases, dealerships use a vendor item/service when selling something (e.g., credit card processing), so ask yourself, “What are the processes behind each usage?” Evaluate each process: Are you wasting items or needlessly using services?
  6. Sourcing. Organize your contract bids on a calendar according to how far out you need to get competing bids. Nothing is more effective than a good old fashioned RFQ, or Request for Quote, to identify the highs and lows of the marketplace and your target pricing.

Find opportunities and make the most of them.

Try giving every manager a goal to cut monthly expenses by a dollar or percentage amount. Consider giving a bonus to whomever can cut the most. And at your managers’ meetings, have each manager bring an idea to cut expense for a particular item or department.

Learn more about Steve Emery and how he and his NCM colleagues can help your dealership through 20 Groups and in-dealership consulting. Also, check out LiveAudit for seamless, intuitive expense tracking power!

Permanent link to this article: http://blog.ncm20.com/2017/05/6-steps-to-control-dealership-expenses/

NCM Associates

By the Numbers: NCM Data Processing

NCM Associates is known for its industry-leading composites and Benchmark data. But those numbers don’t just crunch themselves! Our Data Processing team works tirelessly to ensure that NCM’s clients get the best possible analytics to make their business decisions. It’s also one of the key reasons our clients trust us—we don’t outsource their data; everything is managed in-house.

Whether entering operational data—sometimes even keying numbers by hand—or verifying benchmark results, this nine-member team makes sure it all happens accurately and on-time. Get to know this unsung NCM hero with the infographic below.

dpinfo

Permanent link to this article: http://blog.ncm20.com/2017/05/by-the-numbers-ncm-data-processing/

NCM Associates

#AskNCM: How many tickets should a service advisor have each day?

Service advisor Robert wrote to #AskNCM about daily workload, asking: “How many customers per day is too many for a service advisor?”

Depends on your business structure, explains NCM expert Steve Hall, and how you’re staffed. Variations across dealerships mean there is no cut-and-dried answer to the question. However, he explains, NCM does have a recommended customer interaction-to-service advisor ratio.

Get Steve’s recommendations:

Have another question for Steve or the other #AskNCM experts? Leave a comment below! For more service advisor training, check out our NCMi courses.

Permanent link to this article: http://blog.ncm20.com/2017/04/askncm-how-many-tickets-should-a-service-advisor-have-each-day/

Lindsey Quinn

NCM Case Study: How Darin Wade Saved Power Ford

Power Ford

When Darin Wade purchased a Ford dealership in Albuquerque, New Mexico, in 2012, there was no question that he was facing a challenge. “Nobody ever says,” he jokes, “‘Hey, our dealership is doing so well that we just want to give you a piece of it!’”

New employees, new challenges

So it wasn’t a big surprise when Wade realized that his new staff had no idea just how poorly they were performing. A big part of it, he clarifies, was the preexisting culture.

“I’m one of those dealers who believes in sharing all of the numbers with my team,” he explains, “because I have found that if you don’t share the numbers, they typically make it up. And they usually don’t make up the numbers in your favor.”

“Sure enough,” Wade adds, “most of the employees that were over here … the numbers weren’t shared with them. So, they had a pretty good idea that they weren’t doing very well, but they didn’t know.”

Quick solutions for a high-performing culture

“There was some lack of training,” Wade says. “So, when my NCM moderator called and thought that our store might need help … well, he knows me, and he was dead-on correct!” Wade made arrangements for Lee Michaelson, one of NCM Associates’ consultants, to evaluate the store and develop an improvement plan.

Michaelson and Wade began working together to address the dealership’s most pressing concerns. (They continue to work together to this day.) And, because the consultant came to the dealership each month, the approach had minimal impact on the overall operation. “This whole concept of bringing a trainer to your store is great because our number one challenge anytime we take people out of our store is that not only do we struggle with production going down, but we also struggle with the expense of getting them somewhere. Especially in Albuquerque, New Mexico: I mean, it’s a plane flight for quite a bit of distance wherever you want to go!”

Get the most from every expert visit

Success takes more than having the consultant onsite, Wade explains. Like any improvement process, consulting requires commitment. Here are Darin Wade’s must-do steps to bring an expert onsite.

  1. Make it mandatory for your team. “You just can’t have any interruptions,” Wade explains. “We know when Lee is coming in, and it breaks down to four hours tops, maybe three. You have to have an environment that’s a locked door deal, and you have to have the rest of your staff able to cover the positions. And it will be three hours very well spent.”
  2. Be there. “The general manager or dealer principal needs to be in the meeting 100% of the time because it shows his people that he’s serious about it.”
  3. Take advantage of goal setting. “NCM’s format is great on goal setting and commitment time,” Wade comments. “Every department head will be asked to do a commitment plan, and write it down. The sheets will be turned into not only the dealer and GM but also to the consultant. And I think the best use of the time is that every 60 days that you do the consulting, we also start with the commitment and did we get there or not? I think if you do that, you’ll grow your store.”

A powerful combination

While Wade was already a long-term NCM 20 Group member, adding consulting to the mix was exactly the right combination to bring Power Ford back to benchmark. “The format for the NCM deal,” he says, “is phenomenal.”

“I think NCM does a good job of recruiting people that have done things before,” he adds. “I mean, Lee Michaelson has run a dealership before. And, when a vendor comes in and speaks the same language and can actually walk the walk, not just talk the talk, people in the retail industry can see into that very quickly.

“When you have a 3rd party who’s validated like that … and saying the same things that you say … it adds another layer of credibility to how you run your business.” And your employees pay attention.

At Power Ford, consulting got the staff quickly up to speed and transformed how management and employees communicated: “Suddenly you’re having business conversations instead of guessing, even at lower levels, whether a department head or even just a manager. It helps them connect the dots between what their daily routines do and how they affect the financial statement and the numbers.”

Laying the foundation for success

About a year after taking ownership, Wade reported to Albuquerque Business First that sales were up 300 percent over the previous year, with car sales up more than 50 percent and trucks up 6 percent.

Four years later, Power Ford continues to be a top-seller in the area. While his new leadership clearly was the driving force behind the dealership’s transformation, Wade is quick to praise his partnership with NCM consultant, Lee Michaelson. “It was our moderator being the catalyst for change. Sometimes the general manager and dealer principal can say it, and everybody understands that. But when it comes from a different source, sometimes that’s the extra thing that’s needed that can help your team realize that they need to … they actually need to do the action in order to get the results.”

See how NCM 20 Groups and in-dealership consulting can help your dealership improve, just like Power Ford.

Permanent link to this article: http://blog.ncm20.com/2017/04/ncm-case-study-how-darin-wade-saved-power-ford/

Doug Austin

Profit Drain – How many dollars are slipping away from your operation?

auto mechanic with clipboard at car workshop

If you keep up on recent automotive news, you have probably come to the conclusion that new car sales in 2017 are forecasted to plateau. Sales will flatten out, and margins are likely to continue on the same trajectory—flat or shrinking. These realities will challenge most of the dealerships who try to improve profits by only selling more new vehicles as their primary profit driver. That top-line sales strategy has worked well for many dealers since the downturn, but many have successfully focused on working both sales and expenses to enhance profitability issues when sales flatten out. In fact, many dealers have realized the untapped potential for big profits right in their own dealerships that are available today.

In the spend management space, we are accustomed to working with dealership spend data, supplier pricing for supplies and services, and multitudes of benchmarks. The following was true eight years ago and according to our internal calculations, it is still true today, though the data has changed slightly:

  • Dealerships spend money in up to 130 expense categories every month.
  • Single-point dealerships average 400+ suppliers to support those 130 expense categories.
  • Multiple-point dealerships can have 800+ suppliers supporting the organization.
  • Dealerships will spend between 4.5% of sales to 9% of annual sales on services and supplies.
  • 94% of dealerships do not have a formal purchasing department.
  • Aberdeen Group (procurement authority) says that if you centralize sourcing and purchasing, you can save up to 25% of your spend in new found savings through leverage and focus.
  • Our internal metrics demonstrate 23% cost savings to validate Aberdeen research in the dealer space.
  • Supplier reductions of 45% of total suppliers are quite common—reducing back office support.

What does this all mean?

  • Dealerships are spending too much on supplies and services.
  • Supplier pricing is generally too high, which accounts for the 23% savings opportunity year-after-year.
  • Dealers are using too many suppliers, impacting price and back office administrative costs.
  • The de-centralized purchasing strategy—using managers to fill the role of purchasing—is not working.
  • Unless dealerships re-think and alter their current purchasing strategy, they will continue to pour money down the drain every day and lose a great source of new profitability.

New profit opportunities.

Based on the data and benchmarks available, dealerships can get a pretty good idea of new potential profits—or lost savings—by reviewing the data in the chart below:

 

Annual Revenues

$25MM

$50MM

$75MM

$100MM

$150MM

Supply/Service Spend as % of Sales

 

8.0%

7.5%

7.0%

6.5%

6.0%

Annual Spend for Supplies & Services

 

$2,000,000

$3,750,000

$5,250,000

$6,500,000

$9,000,000

*Savings Opportunity at 20% – Year One

 

$400,000

$750,000

$1,050,000

$1,300,000

$1,800,000

*Savings Opportunity at 20% – Year Two

 

$400,000

$750,000

$1,050,000

$1,300,000

$1,800,000

Total Savings Opportunity

 

$800,000

$1,500,000

$2,100,000

$2,600,000

$3,600,000

*Year One and Year Two savings are achieved by negotiating a competitive price, then locking those rates in for 24 months or more. Contracts are not necessarily required to achieve this.

Reasons for doing nothing.

I have scratched my head over the years wondering why only 5% of dealerships centralize their procurement and 95% of them still do nothing. As best as I can tell, dealerships do not change their approach for the following reasons:

  1. Owners and management do not realize the potential benefits of changing their approach.
  2. Not enough time to attack their expenses in a methodical manner.
  3. Unsure of where to begin—expense management can be complex with many moving parts.
  4. Too focused on top line sales to drive profits—sales-driven companies are not comfortable in the operations space.
  5. Perceived internal threat—if new savings are generated, those responsible might appear as ineffective managers.

Reasons for taking action, now!

  1. Margins are being compressed and profits are or will be shrinking, therefore it is the obligation of management to be proactive and move.
  2. Taking action today will protect the business when the next downturn occurs—and it will occur.
  3. The cost savings achieved are not transitory; they can be sustainable if approached correctly.
  4. The cost savings dollars are significant, as demonstrated above, and can have a positive impact on the business.

Suggested next steps.

If you and your management team are ready and serious about generating new profitability and stemming the loss of profits, consider the following actions:

  • Leadership: Meeting of the minds. Gather your management team together and get some consensus around your objective of improving profitability and how you can achieve the results outlined above.
  • Assess your spend. Identify how much you spend annually for supplies and services (see above) from your DMS data and then determine who in your organization is managing that spend.
  • Gap analysis. Review your processes and controls today. Do you have purchasing policies? Do you track contracts? Do you have a list of preferred suppliers for each category? If not, you need those tools in place to guide the organization.
  • Develop a plan. You are not going to manage 130 expense categories effectively and generate the profit potential without a plan—let’s be honest. You need to centralize your procurement function; either hire someone—or some group—to assist you in organizing your internal resources so that they have matrix responsibility for generating cost savings. Assign each category to someone on your team and assign a due date to get your resources aligned and your plan established.
  • Execute the plan. Business school taught us the fundamentals of management: Plan, Organize, Direct, and Control; you do this every day in other parts of your business. Now might be a good time to do the same thing with your expenses.

Expenses: The last business goldmine.

Based on the research of outside consultants and what we see in our spend management practice, that statement is true. If you are serious about driving new profitability in your business, now might be a good time to do so. If it is not a good time, then just realize that you are pouring dollars down the drain every month and will continue to do so until you change your approach and strategy.

Permanent link to this article: http://blog.ncm20.com/2017/04/profit-drain-how-many-dollars-are-slipping-away-from-your-operation/

NCM Associates

#AskNCM: How can I get more out of my paint booth?

A student recently asked this question during our Collision Center Management class: How can I get more efficiency out of my paint booth?

Great question! Steve Hall explains, “You can never produce more vehicles out of a collision department than you can get through your paint booth system.” Steve explains his simple solution to increase paint booth cycle time and the number of vehicles you can get through collision in the video. The best part? No capital improvements needed!

Have another question for Steve or the other #AskNCM experts? Leave a comment below!

Permanent link to this article: http://blog.ncm20.com/2017/04/askncm-how-can-i-get-more-out-of-my-paint-booth/

Tony Albertson

The Resilience Checklist

Car salesman

Recently, I was invited to moderate a session at a DrivingSales Conference in Miami, Fla. The topic at hand was dealer resilience. The meeting asked dealers in the room, “How would you handle a 20 percent decline in volume or a 50 to 100 basis point rise in interest rates and what about a labor shortage?” Think it can’t happen?

Increasing interest rates

The last few years, we have seen the government prop up the nation with prolonged stimulus and loose monetary policy while impairing sustainable growth. In December 2015, the Federal Reserve raised rates by 25 basis points; this was the first increase since 2006. The Fed has recently increased it another 25 basis points, and the projection is for 2 to 3 more increases next year. How will this affect your profitability, your property values, rent factor, or your ability to acquire new stores?

Changing marketplace

What of other external threats to our business, such as negligence from the manufacturers, disruptive markets, or the state of consumer finance? Internally, dealers may suffer from a poor reputation in customer experience, labor inefficiencies, and a stagnant business model that can ruin net worth. A 2015 Customer Experience Research report by DrivingSales stated that only 26 out of 4,000 consumers prefer the current car buying process. As they explain—and I agree—the Apples and Amazons of the world have trained modern shoppers to seek out a different buying experience.

Experian has reported that auto loans reached an all-time high in Q1 of 2016. The debt totaled over $1 trillion, up 10 percent from Q1 2015, and they are watching delinquencies closely. According to the Federal Reserve Bank, the average length of a new car loan is 64.6 months.

A 2015 Cox survey had some good news for dealers despite the abundance of those disruptive market sites capitalizing on direct-to-consumer transactions: 81 percent still prefer to buy in-person versus online. The customer still doesn’t like the process, but they want to deal with a real person and be able to touch and feel the vehicle.

Rising labor costs

Operationally, the automotive industry’s biggest expense is labor. According to NADA’s Chief Economist, dealers often pay 15 percent more than US averages for labor and have been increasing wages at twice the rate of comparable sectors all while experiencing turnover rates up to 3 times the US average. On the topic of expenses, David Spisak, President of ReverseRisk and one of the speakers at the conference, stated that “many dealers fail to quantify their true costs when manufacturers redistribute margin on their financial statements.” So what happens when the OEM pulls the program?

The Resilience Checklist

Despite the brilliance of the speakers at the conference, none have “THE ANSWER” to all of the questions we face in today’s car business … I don’t believe anyone truly does have all the answers. However, I think this short resilience checklist is a useful tool for your dealership:

  1. Stress test your profit and loss (P&L) and balance sheet for a 30% SAAR drop and/or interest rate increase of 3-5%.
  2. Secure long-term financing while rates are low, if possible.
  3. Develop and track a “true” P&L independent of OEM incentives and financial manipulation. Wean yourself off dependency on manufacturer programs. Operationally, modernize your labor practices. Build and implement an attractive employment ‘brand’. Culture, compensation plans, internal policies, and positive impacts of the organization externally should be optimized to attract and retain a more diverse, more cost-effective talent pool that can deliver a superior customer experience.
  4. Re-engineer inefficient departments and processes. Streamline organizational structure to provide a seamless customer experience to remove hand-offs and overhead. Used cars and fixed operations are huge areas of opportunity to recover lost margin in new cars and execute a customer retention strategy.
  5. Future proof your business by exploring how to position your dealership to benefit from changes in how consumers purchase mobility.

So many questions in so many areas. The truly great news is that—almost to a man (or woman)—car dealers can adapt and overcome challenges. Well, some faster than others. Make sure you’re one of the fast ones!

Learn more about Tony Albertson and how he and his NCM colleagues can help your dealership through 20 Groups and in-dealership consulting.

Permanent link to this article: http://blog.ncm20.com/2017/04/the-resilience-checklist/

Kendall Rawls

Generational Tensions: 4 Barriers to Automotive Leadership

Stressed boss and her female colleagues posing in office

Ensuring the future success and sustainability of a dealership is not based solely on operational knowledge and efficiencies. In addition to creating robust processes, identifying and developing future leaders is critical to building sustainable dealership value. But first, you must overcome the leadership barriers that sabotage your goals.

Generational tensions

In the past, when someone took on the position of “dealer,” it was assumed employees would fall in line and follow the owner’s lead. Today, with up to five generations working together at the same dealership, this expectation doesn’t hold true. Instead, good people check out or leave after a transition in leadership if they don’t feel respected for their contributions and see opportunities for growth.

Generation X and even the up-and-coming Gen Y/millennial leaders have to navigate an additional barrier that can be awkward and uncomfortable. These up-and-comers must earn the respect of the team around them for them to be seen as a true leader. This is a drastic shift in leadership from previous generations where moving into the dealer role was an expectation given tenure and relationships in the dealership.

Contributing to the problem is that the automotive industry has changed so much. No longer is real-life knowledge and experience enough to sustain and lead a dealership into the future. Innovations in technology, a lingering fear of economic uncertainty, ongoing regulatory changes and generational perspectives of “old school” and “new school” way of thinking can build organizational tensions, impacting performance. Put simply, what may have been good enough previously is no longer good enough to lead your organization into the future—instead, formal education, operational training, and a thorough understanding of best practices will be key.

The “old school” versus “new school” issue often causes Gen X and millennial team members to conflict with their baby boomer leaders and employees about fundamental issues impacting the business, such as:

  • What work means. Perspectives of how work fits into our lives—the type of work culture one finds inspiring and the gratification they want from their career—are in constant flux. It’s not uncommon for Gen X and millennial workers to want more time outside the dealership, and older employees/leaders may interpret this as poor work ethic.
  • The nature of leadership. Generational perspectives on who should be considered for leadership may differ. Some feel leadership positions should be earned through tenure, while others think it is earned through performance.
  • How the pecking order works. When performance is rewarded over tenure, older staff may struggle with accepting the authority of younger personnel in more senior positions. (This is especially problematic for employees in family business—heavily scrutinized, your advancement may be viewed as favoritism.) This volatile mix can send an entire dealership into chaos. Loyal employees feel betrayed, and rising stars can find that they lack the buy-in to make changes. After all, the best operations person in the world can’t accomplish a thing without employee support!
  • How to lead effectively. Differences in leadership styles can damage relationships. There are some leaders who feel that motivating others is best done through a directive approach – “Do what I say because I hold the power.” Others appreciate and are driven more by personal influence – “I feel respected for my contributions. I understand the mission; so, I am on board.”

Although they can be subtle, these dynamics impact you and your developing leader’s ability to build respect and trust, as well as motivate and inspire your team to commit to the organizational mission and vision.

Leadership challenges derail performance

If you want to ensure your dealership is driven by strong leadership—today or in the future—knowing how to inspire a variety of people and having the necessary skills to stay operationally cutting-edge are two critical leadership barriers you and any developing leader must overcome.

However, you cannot address these problems simply by working in or “growing up” in the dealership. That’s why The Rawls Group partnered with NCM Associates to create the NCM-Rawls Dealer Executive Program™. The NCM-Rawls Dealer Executive Program™ combines NCM’s operational excellence and Rawls’ deep understanding of how to develop a high-performing dealership culture. Our collaboration allows us to go deeper into leadership development and tackle some of the harder issues and topics that most programs are afraid—or do not have the knowledge and expertise—to offer.

Whether you work with NCM-Rawls or pursue learning on your own, I urge you to think differently about how you want to lead. Choose to invest in yourself, as well as future leaders, to build solid leadership skills based on knowledge and real experience gained working in the dealership. If you do so, I’m confident that you will not only overcome these leadership barriers, you’ll create a thriving dealership for years to come.

Learn more about the NCM-Rawls Dealer Executive Program and how it can prepare you and your successors to lead your dealership into the future.

Permanent link to this article: http://blog.ncm20.com/2017/04/generational-tensions-4-barriers-to-automotive-leadership/

Older posts «