By Myril Shaw, Chief Operating Officer, Dealer Profit Services
The Mission Statements, the Targets needed to execute that Mission, and the Processes that will be enforced to meet those Targets are defined by Senior Dealership Leadership.
The techniques, conversations, and behaviors needed to successfully execute the Processes can be trained and to some extent discussed with the team to find what look to be the most likely to succeed in those areas.
To be clear, Mission, Targets, and Processes can be modified as learnings occur. Similarly, the techniques, conversations, and behaviors needed to successfully complete the Processes and to achieve the Targets can and should be adjusted as it becomes apparent what is not working, what is working, and what can be done better.
They key here is that Mission, Targets, and Processes MUST be defined by Senior Dealership Leadership – reaching out quietly for some Process advice may be okay on a very limited level, however, the leadership should educate themselves through 20 Groups, Dealer Organizations, and other training opportunities so that they feel comfortable defining them. They should also feel confident enough to observe what is happening and make adjustments themselves.
Start with the Mission. This is the statement that defines what the Dealership aspires to be and deliver at the 100,000 foot level.
“We will deliver the most profit in our particular class and product set while also achieving the highest Customer Satisfaction Score in that class. We will do this in both sales and service.”
This has to be adjusted to fit the store’s specific areas and true mission objectives.
The Targets are the specific measures that will achieve the Mission:
“
· Average Unit Sale Price will exceed $xxx (this is clearly specific to the blends and prices of units at the store)
· Net F&I Profit will contribute 50% of the store’s Net F&I Profit
· Net F&I Profit will exceed 5% of F&I on Unit Sales
· F&I Profit on Amount Financed will exceed 8.5% of Amount Financed
· 50% of Units Sold will be financed
· CSI will be greater than 95
“
Of course, the Targets must align with the actual Mission.
Once the Targets have been defined, the enforceable Processes must also be specified.
“
· 95% of Units are sold at MSRP or better if new, or 95% or more of NADA Suggested Retail
· 100% of Customers meet with the Business/Finance Manager and presented with an initial offer of 100% Reserve (if relevant) and will always be presented with a complete package of potential Protective Products
· Sales, marketing, and advertising will be structured to ensure that EVERY customer knows about financing opportunities
· Every customer receives a CSI questionnaire and a follow-up if not answered
“
As before, the Processes must align with the Targets.
The key element here is that it the responsibility of Senior Leadership to define, monitor, enforce, modify (as needed), the Mission, Targets, and Processes. These are not “group negotiable”, they are “group deliverable”. These define the store and what it wants to be.
Once these are set, training and tracking needs to be put in place for delivering on the Processes that will achieve the Targets and achieve the Mission. That training can be defined and delivered at many levels, and can be in many areas, and can be modified quickly as weaknesses or best practices are identified. Training is discussable at all levels.
Mission, Targets, and Processes are not group discussions, except among Senior Leadership. The team needs to know that the purpose and function of being on the team is to deliver and not debate on Mission, Targets, and Processes.
Need help with setting out, or figuring out the Mission, Targets, and Processes – or how to deliver the message?
We can help you do that – either through training or by taking it over for you (which will be cheaper than in house!)
Contact us today at info@dealerprofit.com. We will help!
About Dealer Profit Services
As a premier F&I Services Provider, Trainer, Consultant, and Comprehensive Compliance Program supplier, Dealer Profit Services, a member of the Brunswick family, is about improving a dealer’s F&I profit and then providing the tools to ensure that profit is protected. As a Service Provider, Dealer Profit Services provides complete F&I services and delivers industry-leading F&I Profit Results. As Trainers and Consultants, we help dealers improve their in-house F&I departments. Through the Comprehensive Compliance Program, Dealer Profit Services provides an online, on-demand, Compliance Program with documents, training, and tools to make F&I Compliance a process that helps protect the dealer against potential risks from compliance issues. Learn how to use Dealer Profit Services F&I Delivery Services – Click here. Get your Comprehensive Compliance Program here - just click. Learn more by visiting dealerprofit.com, email info@dealerprofit.com, or call (470) 326-0966.
