Everyday should be treated as it is Friday or the last day of the month. If you don’t set the tone of urgency when fixing the issues at hand, and you don’t follow through with consistent inspection of what you expect, your employees will not follow as they will start to think its all talk and no action.
I go to the completed vehicle key locker each morning and write down a list of the key tags for vehicles that were not picked up the day prior. I check in the DMS and find out who the advisors were, when the vehicle was ready, if the customer has a loaner car and the total dollar amount of the invoice. I send each advisor their own list by email with questions such as, “when will the vehicle be picked up, did you have a defined pickup time that was missed and how is the customer paying?”
I always tell my advisors that the loaner cars are our ability to facilitate more appointments which translates into more paying customers and this means more profit for them and the store. If you stay on top of this for a week, maybe two, you should have your advisors focused on timely pickups of completed vehicles. Be consistent! Inspect what you expect!
“Change is the law of life. Those who only look to the past or present are certain to miss the future” - JFK
David
Saturday, September 11, 2010
Friday, September 10, 2010
Presentations – Not Meetings
Today, more than ever before managers need to have meetings with employees that are more presentation than they are a place to discuss issues. Meetings usually consist of one person, in most cases a manager, speaking about the issues, projects, numbers, policies and deadlines. To motivate your team at your next meeting, try involving key members of your team and turn your meeting into a presentation.
A presentation sparks interest and participation from all members and helps to promote memory retention of the discussion.
Make sure the key participants have met to discuss the issues and the planning of the curriculum for the presentation prior to the delivery. Each speaker must be given a time limit and will need to keep to the topic of their portion of the presentation to have impact on the participants.
Ensure that each key note speaker opens their theme with a powerful impact statement to engage the listeners immediately and to hold their curiosity and attention. Using data, facts or the business statistics in a carefully crafted way, causes instant attention that will be held throughout the entire presentation. Use this technique to drive home facts about your business in a meaningful and sincere way.
The main speaker should make a point after their opening statement to highlight in brief the agenda for the presentation and introduce all speakers even though they work at the facility. It is at this time that this person will need to remind all participants that during the presentations there will be no questions, question and answer period will commence when all presentations have concluded.
An important step in the pre presentation planning with the speakers is to devise a system or a method of acknowledgement, so that when one speaker is done the next speaker takes over without missing stride. If there is too much time between finishing and starting another presentation you could risk losing attention. Ensure that each keynote speaker comes equipped with his or her powerful beginning impact statement. Again, hold the attention throughout the entire program. Tie one presentation to the next with words such as, “in a few moments Mark will expand more on this issue”.
For example, if you are having a service advisor meeting and you need to make an impact on your current numbers and the direction you are steering in, invite the GM, Shop Foreman and your lead advisor to speak. When peers are invited to speak at your presentations there will be a greater sense of urgency within the department to improve due to the fact that coworkers want to excel as a team and not let anyone down.
It would be more impactful if the Shop Foreman informed the service advisors that the productivity and efficiency numbers were down last month and the technicians had been coming to him showing him the inconsistencies in the concern line stories, this maneuver will have more impact than anyone else will on the management team stating it. The Shop Foreman represents the talent on the floor which usually outweighs the advisors five to one. If the Shop Foreman comes to the presentation armed with figures and with examples of shoddy concern line recording, it will drive the point home.
Once all key note speakers are finished with their presentations you will open up the floor to Q & A, however remind everyone that there is a time restriction and to stick to the topics of the presentations. Having effective presentations and defining answers during the Q & A will make a lasting impression on all participants thus driving up the retention level for your expectations to be fulfilled.
At the end of all the presentations it is best to wind up with the expectations deadline and close with another impact statement. This should be done by the senior manager attending the presentation. Whoever this person is should tie together the sum of the meeting notes into the closing statement.
Should you want a certain deficiency corrected use this as the window of opportunity to instill a deadline and remind everyone of the expectations. Remember to thank everyone for his or her participation and involvement. Use this method to promote an exceptional award winning number one team because second best is like all the rest!
David
A presentation sparks interest and participation from all members and helps to promote memory retention of the discussion.
Make sure the key participants have met to discuss the issues and the planning of the curriculum for the presentation prior to the delivery. Each speaker must be given a time limit and will need to keep to the topic of their portion of the presentation to have impact on the participants.
Ensure that each key note speaker opens their theme with a powerful impact statement to engage the listeners immediately and to hold their curiosity and attention. Using data, facts or the business statistics in a carefully crafted way, causes instant attention that will be held throughout the entire presentation. Use this technique to drive home facts about your business in a meaningful and sincere way.
The main speaker should make a point after their opening statement to highlight in brief the agenda for the presentation and introduce all speakers even though they work at the facility. It is at this time that this person will need to remind all participants that during the presentations there will be no questions, question and answer period will commence when all presentations have concluded.
An important step in the pre presentation planning with the speakers is to devise a system or a method of acknowledgement, so that when one speaker is done the next speaker takes over without missing stride. If there is too much time between finishing and starting another presentation you could risk losing attention. Ensure that each keynote speaker comes equipped with his or her powerful beginning impact statement. Again, hold the attention throughout the entire program. Tie one presentation to the next with words such as, “in a few moments Mark will expand more on this issue”.
For example, if you are having a service advisor meeting and you need to make an impact on your current numbers and the direction you are steering in, invite the GM, Shop Foreman and your lead advisor to speak. When peers are invited to speak at your presentations there will be a greater sense of urgency within the department to improve due to the fact that coworkers want to excel as a team and not let anyone down.
It would be more impactful if the Shop Foreman informed the service advisors that the productivity and efficiency numbers were down last month and the technicians had been coming to him showing him the inconsistencies in the concern line stories, this maneuver will have more impact than anyone else will on the management team stating it. The Shop Foreman represents the talent on the floor which usually outweighs the advisors five to one. If the Shop Foreman comes to the presentation armed with figures and with examples of shoddy concern line recording, it will drive the point home.
Once all key note speakers are finished with their presentations you will open up the floor to Q & A, however remind everyone that there is a time restriction and to stick to the topics of the presentations. Having effective presentations and defining answers during the Q & A will make a lasting impression on all participants thus driving up the retention level for your expectations to be fulfilled.
At the end of all the presentations it is best to wind up with the expectations deadline and close with another impact statement. This should be done by the senior manager attending the presentation. Whoever this person is should tie together the sum of the meeting notes into the closing statement.
Should you want a certain deficiency corrected use this as the window of opportunity to instill a deadline and remind everyone of the expectations. Remember to thank everyone for his or her participation and involvement. Use this method to promote an exceptional award winning number one team because second best is like all the rest!
David
Thursday, September 9, 2010
Gimme – The New Normal
Have you noticed that “I want and gimme” are the new catch words for please and “thank you” is becoming extinct! It doesn’t matter where you go or what you do, it is obvious our level of etiquette and civility towards one another has dwindled. One of my favorite movies is, “It’s a wonderful life”, when did we as a society go from the charm and pleasantries of good old George Bailey to what can be likened to that of Dr. Laura Schlessinger?
You see the lack of respect, pleasantries and basic humanity almost everywhere you go to conduct business, shop or when you go out to an evening of entertainment. This attitude is prevalent in our federal, state and local government politics. We see it on the TV shows, in the movies and the attitude persists within the celebrities that grace films and magazines. I am not saying that they are all this way, yet there is a majority of them that I personally wouldn’t invite to my home for dinner… These are the mentors of our next generation. They are demonstrating and instilling these qualities throughout our society by way of example.
We read about groups of young adults not giving a seat on a bus or subway train to the elderly or the pregnant. We see people run ahead of elderly people or pregnant woman to beat them to an empty seat or through a doorway. They see you coming with your shopping cart and the put on the afterburners to beat you to the checkout counter. Heck we see people running the cash at grocery stores, clothing stores and pharmacies talking away with their coworkers not paying attention to customers, they sometimes speak about topics which others don’t want to hear.
You see it in your own facility. Your employees and customers answering their cell phones while in the middle of a face to face conversation. I have witnessed employee’s text messaging while engaged in a conversation with peers or other managers, sometimes customers and I feel it shows a lack of respect. You’ve probably observed your employees continue with their conversations while customers are waiting to be served and the worst is when the topics are not related to their work!
Today most people have become complacent to this type of behavior and accept it as the NEW NORMAL or they turn a blind eye to it. Most of us who believe in manners, etiquette and pleasantries quietly continue about our business and hope that somehow, someday our society will turn itself around for the better.
The reason I am writing this is to show you that there is a better way to attract and retain customers to your facility that is COST FREE! A smile costs nothing and can make someone’s miserable day so much brighter. A smile can turn that upset customer back into agreement. A smile will literally turn a frown upside down!
When customers come into your facility they will feel more welcome, at ease and receptive to build a relationship with your business if your employees are smiling, warm and inviting – welcoming them into the facility. You will have less negative issues and more positive results if you can get your employees smiling, greeting and thanking people for their business.
Who are you more apt to deal with, the person with their arms folded having a blank unfriendly look on their face or the person standing in front of you with their arms open and smile on their face while saying, “Welcome to Anywhere Motors, how may I be of assistance today”?
Having the right attitude will literally catch your customers of guard - they are not use to it! They have been exposed to the, “your interrupting my day” syndrome for too long! Try having your employees make a commitment for thirty days to smile, be receptive, be helpful, be gracious, be empathetic and thank customers for their business. I would be willing to wager that your revenues increase and the problem customers decrease.
By instilling this, “can do - we will” attitude you automatically motivate your employees and the atmosphere becomes instantaneously positive. Again, where would you rather do business? I would rather take my business where the people were positive and they all seemed like they were happy to helping each other and their customers. Essentially in anything we do in life we reap what we sow, therefore sow great positive seeds that will sprout exceptional customer experiences and grow your profits. Having a positive attitude costs nothing and the returns can be surprisingly high.
David
You see the lack of respect, pleasantries and basic humanity almost everywhere you go to conduct business, shop or when you go out to an evening of entertainment. This attitude is prevalent in our federal, state and local government politics. We see it on the TV shows, in the movies and the attitude persists within the celebrities that grace films and magazines. I am not saying that they are all this way, yet there is a majority of them that I personally wouldn’t invite to my home for dinner… These are the mentors of our next generation. They are demonstrating and instilling these qualities throughout our society by way of example.
We read about groups of young adults not giving a seat on a bus or subway train to the elderly or the pregnant. We see people run ahead of elderly people or pregnant woman to beat them to an empty seat or through a doorway. They see you coming with your shopping cart and the put on the afterburners to beat you to the checkout counter. Heck we see people running the cash at grocery stores, clothing stores and pharmacies talking away with their coworkers not paying attention to customers, they sometimes speak about topics which others don’t want to hear.
You see it in your own facility. Your employees and customers answering their cell phones while in the middle of a face to face conversation. I have witnessed employee’s text messaging while engaged in a conversation with peers or other managers, sometimes customers and I feel it shows a lack of respect. You’ve probably observed your employees continue with their conversations while customers are waiting to be served and the worst is when the topics are not related to their work!
Today most people have become complacent to this type of behavior and accept it as the NEW NORMAL or they turn a blind eye to it. Most of us who believe in manners, etiquette and pleasantries quietly continue about our business and hope that somehow, someday our society will turn itself around for the better.
The reason I am writing this is to show you that there is a better way to attract and retain customers to your facility that is COST FREE! A smile costs nothing and can make someone’s miserable day so much brighter. A smile can turn that upset customer back into agreement. A smile will literally turn a frown upside down!
When customers come into your facility they will feel more welcome, at ease and receptive to build a relationship with your business if your employees are smiling, warm and inviting – welcoming them into the facility. You will have less negative issues and more positive results if you can get your employees smiling, greeting and thanking people for their business.
Who are you more apt to deal with, the person with their arms folded having a blank unfriendly look on their face or the person standing in front of you with their arms open and smile on their face while saying, “Welcome to Anywhere Motors, how may I be of assistance today”?
Having the right attitude will literally catch your customers of guard - they are not use to it! They have been exposed to the, “your interrupting my day” syndrome for too long! Try having your employees make a commitment for thirty days to smile, be receptive, be helpful, be gracious, be empathetic and thank customers for their business. I would be willing to wager that your revenues increase and the problem customers decrease.
By instilling this, “can do - we will” attitude you automatically motivate your employees and the atmosphere becomes instantaneously positive. Again, where would you rather do business? I would rather take my business where the people were positive and they all seemed like they were happy to helping each other and their customers. Essentially in anything we do in life we reap what we sow, therefore sow great positive seeds that will sprout exceptional customer experiences and grow your profits. Having a positive attitude costs nothing and the returns can be surprisingly high.
David
Wednesday, September 8, 2010
Focus on Needs before Profit
Dealerships that focus on profit before the needs of the customer are actually doing a disservice to both the business and the customer. The customer is the main source of your revenue, if the customer feels their needs are not being met, they will simply take their business elsewhere.
Have you found this true within your own dealership? Have you lost customers to competitors for failing to meet their needs? What have you done to counteract this problem? Have you made cuts within your departments to enhance your bottom line, all the while cutting your clients service experience short? If you answered yes, you are effectively selling the business and the customer short. Unfortunately some may have the mindset that they are saving to a profit. Instead these owners are missing out on bigger profits of long term customer retention and referrals. To put your dealership back on track and into the black, may take some time and might require the injection of cash. As we all know it takes money to make money. You cannot save your way to a profit!
Growth and profitability should be the main reasons you are in business, however this cannot be your primary focus. Growth and profitability are realized through good customer service which brings repeat business. This is why it is critical that you must lead by example in the mission to provide excellent service. The bottom line here is that profit and growth are linked to good customer service. Have you taken the time to evaluate your own dealership on these points?
David
Have you found this true within your own dealership? Have you lost customers to competitors for failing to meet their needs? What have you done to counteract this problem? Have you made cuts within your departments to enhance your bottom line, all the while cutting your clients service experience short? If you answered yes, you are effectively selling the business and the customer short. Unfortunately some may have the mindset that they are saving to a profit. Instead these owners are missing out on bigger profits of long term customer retention and referrals. To put your dealership back on track and into the black, may take some time and might require the injection of cash. As we all know it takes money to make money. You cannot save your way to a profit!
Growth and profitability should be the main reasons you are in business, however this cannot be your primary focus. Growth and profitability are realized through good customer service which brings repeat business. This is why it is critical that you must lead by example in the mission to provide excellent service. The bottom line here is that profit and growth are linked to good customer service. Have you taken the time to evaluate your own dealership on these points?
David
Tuesday, September 7, 2010
Secrets of Success
Do you really want to know the secret of the successful dealerships that are out there right now racking up CSI and raking in the profits? Would you like to know how they have grown from mediocre dealerships into the multi-million dollar per year players?
The secret my friends, is the relationship building that takes place between the employees of the business and the customers. That’s the secret, that’s it, it seems simple right? It can be if you pay attention to the training aspect of your employees as well as the compensation arrangement for your employees.
Successful dealerships listen to both sides of the coin, the customers and the employees. Successful dealerships and service facilities LISTEN to what their customers are saying and pay attention to what the customer’s needs and wants are and then they give it to them. Dealerships that are highly successful also listen their employee’s needs and wants and strive to give it to them. I will expand on this principle a little further into this article.
Let’s examine the customer’s needs and wants in a little more detail. First and foremost it is a great marketing tool to advertise your facilities amenities. Most company’s flyers, print advertising, pamphlets, commercials, blogs or website advertising fail because the theme is usually only about how GOOD they are.
Successful dealerships succeed because they have listened and observed the customers and then focus only on the customer. Successful dealerships show understanding, compassion and empathy for the issues their customers are having and they go out of their way to provide REAL SOLUTIONS to remedy the issues. Remember always fix the customer first - once that is accomplished you can fix the vehicle.
Instead of focusing on the words such as “Me, We, I, My” within the context of your marketing you should focus on words like, “You, Your, Our”. The more you can emphasize that your dealership is always there for the customer’s needs and wants, the better your marketing will be and the better your customer service will be. (Example - You are our number one priority, our mission is to have 100% satistisfaction for you, our most valuable asset.)
Some may ask, how do we really create an exceptional relationship with our customers? It’s very simple, “Start taking an interest in your customers and listen to what they are telling you”! I remember twenty years ago working for a dealership that sent out birthday cards, wedding anniversary cards, vehicle purchase anniversary cards, thanksgiving cards and Christmas cards to their customers. This little step goes a long way keeping a customer and it keeps your name in front of your customers in a positive light throughout the year. Really, what does it cost?
You could also give out incentives or small bonuses for being a great customer such as the first anniversary of their vehicle purchase, the customer receives a complimentary express detail of the vehicle. Again, what does it really cost? Looking after your customers is a priority. If you ignore them they will eventually ignore you.
Let’s now look at the employee in this scenario. When drafting your employee’s compensation plan, base a large portion of the plan on CSI and reward your employees according to the CSI score as individuals on a sliding scale. The higher the CSI score, the bigger the compensation reward.
Remember to incorporate a team CSI compensation package as well. The reason I say this is to promote everyone to work as a team, giving every customer that WOW experience. Let’s suppose Bill is away on vacation and Larry is looking after Bills customer for the redelivery of the vehicle, I would want Larry to give that customer the same attention and treatment as Bill would have, had he been present.
I know this works because it worked for me at a facility where the CSI was at the bottom of the region, we focused our attention on each CSI question and paid according to the CSI score attained, individually and team. Within three months we were number in the region and held that spot. Our factory rep was thrilled that I was posting our scores in the service drive with a caption that read, "Working to Serve You is Job One - Succeeding Keeps Us Number One".
When spending some of the DAP or CSI money that dealerships receive from manufacturers on employees to boost CSI, this should not be seen as just boosting CSI, this is building a business that will be viable into the future. The amount of money spent from the CSI bonus may be deemed as part of the business revenue stream, however if you spend this on your employees to promote and create exceptional CSI, you will build a customer base that will easily bring back a higher ROI then you will spend on CSI employee bonuses. Profits should not be looked at in the short term, always look to the future with the mindset of growth and expansion and you will win the day, month and year.
It takes money to make money!
David
The secret my friends, is the relationship building that takes place between the employees of the business and the customers. That’s the secret, that’s it, it seems simple right? It can be if you pay attention to the training aspect of your employees as well as the compensation arrangement for your employees.
Successful dealerships listen to both sides of the coin, the customers and the employees. Successful dealerships and service facilities LISTEN to what their customers are saying and pay attention to what the customer’s needs and wants are and then they give it to them. Dealerships that are highly successful also listen their employee’s needs and wants and strive to give it to them. I will expand on this principle a little further into this article.
Let’s examine the customer’s needs and wants in a little more detail. First and foremost it is a great marketing tool to advertise your facilities amenities. Most company’s flyers, print advertising, pamphlets, commercials, blogs or website advertising fail because the theme is usually only about how GOOD they are.
Successful dealerships succeed because they have listened and observed the customers and then focus only on the customer. Successful dealerships show understanding, compassion and empathy for the issues their customers are having and they go out of their way to provide REAL SOLUTIONS to remedy the issues. Remember always fix the customer first - once that is accomplished you can fix the vehicle.
Instead of focusing on the words such as “Me, We, I, My” within the context of your marketing you should focus on words like, “You, Your, Our”. The more you can emphasize that your dealership is always there for the customer’s needs and wants, the better your marketing will be and the better your customer service will be. (Example - You are our number one priority, our mission is to have 100% satistisfaction for you, our most valuable asset.)
Some may ask, how do we really create an exceptional relationship with our customers? It’s very simple, “Start taking an interest in your customers and listen to what they are telling you”! I remember twenty years ago working for a dealership that sent out birthday cards, wedding anniversary cards, vehicle purchase anniversary cards, thanksgiving cards and Christmas cards to their customers. This little step goes a long way keeping a customer and it keeps your name in front of your customers in a positive light throughout the year. Really, what does it cost?
You could also give out incentives or small bonuses for being a great customer such as the first anniversary of their vehicle purchase, the customer receives a complimentary express detail of the vehicle. Again, what does it really cost? Looking after your customers is a priority. If you ignore them they will eventually ignore you.
Let’s now look at the employee in this scenario. When drafting your employee’s compensation plan, base a large portion of the plan on CSI and reward your employees according to the CSI score as individuals on a sliding scale. The higher the CSI score, the bigger the compensation reward.
Remember to incorporate a team CSI compensation package as well. The reason I say this is to promote everyone to work as a team, giving every customer that WOW experience. Let’s suppose Bill is away on vacation and Larry is looking after Bills customer for the redelivery of the vehicle, I would want Larry to give that customer the same attention and treatment as Bill would have, had he been present.
I know this works because it worked for me at a facility where the CSI was at the bottom of the region, we focused our attention on each CSI question and paid according to the CSI score attained, individually and team. Within three months we were number in the region and held that spot. Our factory rep was thrilled that I was posting our scores in the service drive with a caption that read, "Working to Serve You is Job One - Succeeding Keeps Us Number One".
When spending some of the DAP or CSI money that dealerships receive from manufacturers on employees to boost CSI, this should not be seen as just boosting CSI, this is building a business that will be viable into the future. The amount of money spent from the CSI bonus may be deemed as part of the business revenue stream, however if you spend this on your employees to promote and create exceptional CSI, you will build a customer base that will easily bring back a higher ROI then you will spend on CSI employee bonuses. Profits should not be looked at in the short term, always look to the future with the mindset of growth and expansion and you will win the day, month and year.
It takes money to make money!
David
Monday, September 6, 2010
Compensation Expectation
Recently I spent some time with a colleague talking about his service facilities need to GET STABLE. I asked him what he meant by the term, “GET STABLE”. He started telling me that during the last few weeks he was receiving more and more telephone calls from prospective employers wanting references for current employees at his dealership.
We spoke at length about how this will affect his ability to conduct business should he start losing his current talent. I listened in wonderment as he spoke non-stop about having to hire new employees, retrain them and teach the policies and procedures all over again to a new group of people. After ten minutes or so of his ranting, “That this seems to be a common dilemma that his dealership endures about every six months or so”, I was asked what I would do in his situation.
I had to ask the question, “Does this have anything to do with how the employees are compensated or treated”? My friend informed me that most of the non technical employees are all paid exactly minimum wage and during their employment the senior management piles more and more work on them. He indicated to me that most if not all of these people were underpaid and overworked for each of their positions. I asked him what he thought should be done about the situation and his reply was to over pay for each position by a fair amount, he indicated a dollar or two more then minimum wage would make a huge difference in retaining quality people.
Then he went on to say that he wasn’t the only manager in his facility having the same issues of retaining individuals or of feeling the same way. He stated as a manager within this facility it was becoming harder and harder to go into work each day feeling pumped and he indicated that this feeling was infecting most of the management.
He listed the sales department as having a revolving door for the position of receptionist, lot porters and billers. Even the service warranty administrative position was becoming harder to keep someone employed in because there was more than enough work, not enough compensation and the senior management expected whoever had this position to take a meager salary and work ten or more hours per day. Apparently the positions of shuttle driver and swap driver they cannot keep enough resumes to satisfy the demand that is being created internally.
So let’s look at the effect this problem poses on the dealership and its ability to provide service.
1. Each time you hire a new employee, you will spend precious valuable time in the process to pick the right person. There is a certain amount of time that must be invested when hiring and training any new employee, ensuring they meet and exceed your expectations is a top priority. Training is ongoing for an unspecified amount of time until you as a manger feel they are performing at your level of expectations and providing your customers with a WOW experience.
2. There is also a cost factor involved when hiring a new employee and we all know from our own experience what those costs can be.
3. Constantly having employee turnover in any business creates havoc for your customers; the customer will not have the opportunity to establish and build a relationship with your employees and remember that building relationships builds trust. The more trust your customers have in your business the more likely you are to succeed on numerous levels.
4. If your business is a revolving door your customers may lose credibility with your business. Customers may start to wonder WHAT internal problems exist within the business behind closed doors and this is a damaging effect as you may lose customers as you lose credibility.
5. Having a revolving door has a detrimental negative effect on all employees of the business, they become cynical and this opinion may be voiced in private corners of your business. The negative attitudes of some employees crying foul over the constant turnover rate can and will lead to creating negative cancer within your facility. When it comes to cancer we all want it cut out before it infects the rest of the body, therefore we shouldn’t let the cancerous effect even start to permeate into our business. The only way to avoid these detrimental affects is by retaining the quality people you have, this means paying them a proper compensation package for the work they perform.
If you pay your employees what they are worth you can retain them! Retention gives the business the opportunity to effectively and properly train each employee, molding them into the employee you want and need to represent you. Having awesome representation sets the stage to give each customer a WOW experience. If your customers are getting a WOW experience each and every time they come to your facility obviously by the laws of business, word will spread about HOW GREAT YOU ARE! This leads to more business and soon you won’t be thinking of how little you can pay somebody to perform a particular job function, you will be thinking of hiring more individuals to meet the needs of your ever growing customer base.
If you look at negative steps one through five above, you begin to see that this issue is cyclical, each problem compounds the next, this is a vicious cycle of workplace cancer that needs be cut out and eliminated permanently to grow any facility.
David
We spoke at length about how this will affect his ability to conduct business should he start losing his current talent. I listened in wonderment as he spoke non-stop about having to hire new employees, retrain them and teach the policies and procedures all over again to a new group of people. After ten minutes or so of his ranting, “That this seems to be a common dilemma that his dealership endures about every six months or so”, I was asked what I would do in his situation.
I had to ask the question, “Does this have anything to do with how the employees are compensated or treated”? My friend informed me that most of the non technical employees are all paid exactly minimum wage and during their employment the senior management piles more and more work on them. He indicated to me that most if not all of these people were underpaid and overworked for each of their positions. I asked him what he thought should be done about the situation and his reply was to over pay for each position by a fair amount, he indicated a dollar or two more then minimum wage would make a huge difference in retaining quality people.
Then he went on to say that he wasn’t the only manager in his facility having the same issues of retaining individuals or of feeling the same way. He stated as a manager within this facility it was becoming harder and harder to go into work each day feeling pumped and he indicated that this feeling was infecting most of the management.
He listed the sales department as having a revolving door for the position of receptionist, lot porters and billers. Even the service warranty administrative position was becoming harder to keep someone employed in because there was more than enough work, not enough compensation and the senior management expected whoever had this position to take a meager salary and work ten or more hours per day. Apparently the positions of shuttle driver and swap driver they cannot keep enough resumes to satisfy the demand that is being created internally.
So let’s look at the effect this problem poses on the dealership and its ability to provide service.
1. Each time you hire a new employee, you will spend precious valuable time in the process to pick the right person. There is a certain amount of time that must be invested when hiring and training any new employee, ensuring they meet and exceed your expectations is a top priority. Training is ongoing for an unspecified amount of time until you as a manger feel they are performing at your level of expectations and providing your customers with a WOW experience.
2. There is also a cost factor involved when hiring a new employee and we all know from our own experience what those costs can be.
3. Constantly having employee turnover in any business creates havoc for your customers; the customer will not have the opportunity to establish and build a relationship with your employees and remember that building relationships builds trust. The more trust your customers have in your business the more likely you are to succeed on numerous levels.
4. If your business is a revolving door your customers may lose credibility with your business. Customers may start to wonder WHAT internal problems exist within the business behind closed doors and this is a damaging effect as you may lose customers as you lose credibility.
5. Having a revolving door has a detrimental negative effect on all employees of the business, they become cynical and this opinion may be voiced in private corners of your business. The negative attitudes of some employees crying foul over the constant turnover rate can and will lead to creating negative cancer within your facility. When it comes to cancer we all want it cut out before it infects the rest of the body, therefore we shouldn’t let the cancerous effect even start to permeate into our business. The only way to avoid these detrimental affects is by retaining the quality people you have, this means paying them a proper compensation package for the work they perform.
If you pay your employees what they are worth you can retain them! Retention gives the business the opportunity to effectively and properly train each employee, molding them into the employee you want and need to represent you. Having awesome representation sets the stage to give each customer a WOW experience. If your customers are getting a WOW experience each and every time they come to your facility obviously by the laws of business, word will spread about HOW GREAT YOU ARE! This leads to more business and soon you won’t be thinking of how little you can pay somebody to perform a particular job function, you will be thinking of hiring more individuals to meet the needs of your ever growing customer base.
If you look at negative steps one through five above, you begin to see that this issue is cyclical, each problem compounds the next, this is a vicious cycle of workplace cancer that needs be cut out and eliminated permanently to grow any facility.
David
Sunday, September 5, 2010
What?
My question today for all you managers out there is this; “What is it that you want to become, or the business to become – What is it”?
Maybe you want to create exceptional experiences with Customers or you want to be more creative or marketing savvy. Maybe you want to be a better team builder or team leader or you want to learn something new today. Possibly you have some new ideas to help grow the business!
It really doesn't matter WHAT your "WHAT" is! The secret to success depends on repetition to improve and change, as well as the stick-to-itiveness ideology and a passion to grow. No matter what your idea, the formula remains a constant.
Step 1 - DECIDE
Step 2 - DO
Step 3 - KEEP DOING IT
Step 4 - KEEP DOING MORE OF IT
If you know “WHAT” your “WHAT” is! You need to take STEP 1 and decide to do it!
Now is the time for your own call to action to cause a positive reaction! Remember to succeed you always need to ignite the passion!
This success formula is simple and timeless. It's time to take action and decide to do and then keep doing more of it, when you think you’re done do it again!
David.
Maybe you want to create exceptional experiences with Customers or you want to be more creative or marketing savvy. Maybe you want to be a better team builder or team leader or you want to learn something new today. Possibly you have some new ideas to help grow the business!
It really doesn't matter WHAT your "WHAT" is! The secret to success depends on repetition to improve and change, as well as the stick-to-itiveness ideology and a passion to grow. No matter what your idea, the formula remains a constant.
Step 1 - DECIDE
Step 2 - DO
Step 3 - KEEP DOING IT
Step 4 - KEEP DOING MORE OF IT
If you know “WHAT” your “WHAT” is! You need to take STEP 1 and decide to do it!
Now is the time for your own call to action to cause a positive reaction! Remember to succeed you always need to ignite the passion!
This success formula is simple and timeless. It's time to take action and decide to do and then keep doing more of it, when you think you’re done do it again!
David.
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