One fine summer morning on the farm, the pig and the chicken were arguing about who was more committed to making breakfast food for the farmer. The chicken made his case by stating: “Pig you just don’t get it, I am absolutely more committed than you. Every morning 365 days a year, I focus on laying eggs so when the farmer comes into the hen house there are eggs waiting for him. Now that’s commitment!” The pig listened most intently. And when the pig had finished, stood up and made his case short and sweet; “That’s very interesting pig, but let me ask you a question, how do you think they make bacon? Now that’s commitment!
A funny story indeed, but let me ask you a question- how does your entire Dealership staff view the issue of commitment? Most people when asked will state they are committed by engaging in a program that is successful due to its implementation.
To accurately define the issue of commitment, we must recognize the difference between Program and Process and the gravity of confusing the two. A Program is a brief understanding lacking depth, detail, or action. Webster’s Dictionary defines the term Program as: “a brief outline of the order to be pursued or the subjects included”. In comparison, when we use a Process we commit to a way of life, a dedicated path if you will. The definition of Process is: “a series of actions or operations directed toward a particular result”. Simply put, a Process is goal oriented while a Program is not.
In comparison, when we use a Process, we commit to a way of life, a dedicated path if you will. Webster’s dictionary defines process as: “A series of actions or operations directed toward a particular result.” Quite a different approach in solving the question- how can we be more successful?
What’s the point? It’s this; if you rely on a Program to be more successful, there’s not enough dedicated direction to achieve real, measurable, and sustained improvement. A Process, however, will give everyone concerned the tools necessary to achieve the goals set forth. Logic also dictates with the correct Process in place accountability is measurable and fair. The ability of employees to blame the Program for their ineffectiveness is removed. Following the Process allows everyone to stick to the “road map” and learn to become more effective by utilizing their strengths and improving weaknesses. Accountability will help you assess if you have the right people in the right jobs and if not, what changes need to be made. A good job fit produces happy employees with a better understanding of what is expected of them.
Let’s look at this concept further. If they were well written, defined, and trained Processes in place, it would be much easier to reward employees based on their success instead of paying them for failure. Or even worse, continuing to pay them just to show up. The “Pay For Performance” process has been around for many years, but is becoming more valuable as we need to motivate employees to become more profitable and customer driven than ever before. Dealership companies are taking the baton from corporate America, and utilizing process follow-through as the benchmark to monetary reward. Here’s where the accountability issue becomes a tool instead of a weapon. Employees learn to forget playing “who shot Charlie” and start looking at their own performance as compared to the Process given them to perform. Professional athletes do it all the time. They watch the game films, and compare their performance with the playbook or- Process. Interestingly, you never hear post game comments like- I would have done a better job if I had a more defined playbook.
So, where do we go from here? Let’s start by looking at the “playbooks” we give our employees. Do they have a well-defined process? Remember, I’m not talking about Job Descriptions. I am referring to the Process that should be so well defined, the specific employee has a way to get from start to finish with a guest of your dealership so they are able to do a better job with the market you already own. It always costs less money to do this than to attempt to buy the market with huge advertising budgets.
For example, do your vehicle, parts and service salespeople have a true Process in place to sell their products for the highest possible gross profit in a customer driven manner? Is it so well defined, that there is no room for short cutting or attempting to make a sale “out of bounds?” Are there enough steps to cover everything necessary to “WOW” your guest to come back to your store again, and tell everyone they know about their experience? Ask yourself this- Can you cut your ad budget in half next month and enjoy an increase in business due to your company employees following the correct process steps? If you can, then with the proper advertising in place, you will be well over the top in all department projections.
In the vehicle sales departments, we should consider the current sales process in place for our sales staff to use to their advantage. Is it complete enough to achieve high gross per unit averages, high closing ratios, and high C.S.I./S.S.I. scores? Is there a continuous improvement process in place stressing training as the solution to complete improvement?
When it comes to generating business in any department, we all know there are only two ways to achieve any measure of success, buy the market, or do a better job with the market you already own. The key phrase to remember is- measure of success.
Have you ever looked at your marketing plan for all departments and wondered why it’s just not “successful”? I know I did when I was a dealer, and still do when working with a client. More often than not we find that the marketing plan is just fine. Then what’s not working? Program or Process?
In the coming months we will examine this and other issues together with a focus on the sales department. Don’t forget to listen and download the 5-minute sales meeting. Feel free to play it for your staff at your next meting to help roll some iron!
Thank you for your time...Carpe Diem (seize the day)!!
To accurately define the issue of commitment, we must recognize the difference between Program and Process and the gravity of confusing the two. A Program is a brief understanding lacking depth, detail, or action. Webster’s Dictionary defines the term Program as: “a brief outline of the order to be pursued or the subjects included”. In comparison, when we use a Process we commit to a way of life, a dedicated path if you will. The definition of Process is: “a series of actions or operations directed toward a particular result”. Simply put, a Process is goal oriented while a Program is not.
In comparison, when we use a Process, we commit to a way of life, a dedicated path if you will. Webster’s dictionary defines process as: “A series of actions or operations directed toward a particular result.” Quite a different approach in solving the question- how can we be more successful?
What’s the point? It’s this; if you rely on a Program to be more successful, there’s not enough dedicated direction to achieve real, measurable, and sustained improvement. A Process, however, will give everyone concerned the tools necessary to achieve the goals set forth. Logic also dictates with the correct Process in place accountability is measurable and fair. The ability of employees to blame the Program for their ineffectiveness is removed. Following the Process allows everyone to stick to the “road map” and learn to become more effective by utilizing their strengths and improving weaknesses. Accountability will help you assess if you have the right people in the right jobs and if not, what changes need to be made. A good job fit produces happy employees with a better understanding of what is expected of them.
Let’s look at this concept further. If they were well written, defined, and trained Processes in place, it would be much easier to reward employees based on their success instead of paying them for failure. Or even worse, continuing to pay them just to show up. The “Pay For Performance” process has been around for many years, but is becoming more valuable as we need to motivate employees to become more profitable and customer driven than ever before. Dealership companies are taking the baton from corporate America, and utilizing process follow-through as the benchmark to monetary reward. Here’s where the accountability issue becomes a tool instead of a weapon. Employees learn to forget playing “who shot Charlie” and start looking at their own performance as compared to the Process given them to perform. Professional athletes do it all the time. They watch the game films, and compare their performance with the playbook or- Process. Interestingly, you never hear post game comments like- I would have done a better job if I had a more defined playbook.
So, where do we go from here? Let’s start by looking at the “playbooks” we give our employees. Do they have a well-defined process? Remember, I’m not talking about Job Descriptions. I am referring to the Process that should be so well defined, the specific employee has a way to get from start to finish with a guest of your dealership so they are able to do a better job with the market you already own. It always costs less money to do this than to attempt to buy the market with huge advertising budgets.
For example, do your vehicle, parts and service salespeople have a true Process in place to sell their products for the highest possible gross profit in a customer driven manner? Is it so well defined, that there is no room for short cutting or attempting to make a sale “out of bounds?” Are there enough steps to cover everything necessary to “WOW” your guest to come back to your store again, and tell everyone they know about their experience? Ask yourself this- Can you cut your ad budget in half next month and enjoy an increase in business due to your company employees following the correct process steps? If you can, then with the proper advertising in place, you will be well over the top in all department projections.
In the vehicle sales departments, we should consider the current sales process in place for our sales staff to use to their advantage. Is it complete enough to achieve high gross per unit averages, high closing ratios, and high C.S.I./S.S.I. scores? Is there a continuous improvement process in place stressing training as the solution to complete improvement?
When it comes to generating business in any department, we all know there are only two ways to achieve any measure of success, buy the market, or do a better job with the market you already own. The key phrase to remember is- measure of success.
Have you ever looked at your marketing plan for all departments and wondered why it’s just not “successful”? I know I did when I was a dealer, and still do when working with a client. More often than not we find that the marketing plan is just fine. Then what’s not working? Program or Process?
In the coming months we will examine this and other issues together with a focus on the sales department. Don’t forget to listen and download the 5-minute sales meeting. Feel free to play it for your staff at your next meting to help roll some iron!
Thank you for your time...Carpe Diem (seize the day)!!
