Editor’s Note: This article was originally published in the September/October edition of Dealer magazine
Great dealerships are built by great people. Great people are a result of great leadership. You grow a great company by growing great people.
Great people will not work for lousy leaders. If you have a high turnover of techs and advisors, then the problem might be you!
Over the last 40+ years I’ve observed two types of leaders: Authoritarian Leaders and Servant Leaders.
Leadership Styles
Authoritarian Leaders rule their team with an iron fist. “My way or the highway…”, “Because I said so…” They curse and yell and rant all day to intimidate their team. It’s really a defense mechanism because they are trying to hide their incompetence.
Because they don’t know anything, they are unable to mentor, coach, or teach – or grow their people.
Servant Leaders care about the well-being and success of their team members. They follow an ancient principle that says “the one who rules must be like the one who serves.” Servant leadership.
This group of men and women know the importance of integrity, which is playing by the rules. Living the core values. Submitting themselves to the same non-negotiable behaviors that they require of their employees.
Example for Employees
Remember, your employees more attention pay to what you do than what you say.
I recently saw this lived out at a suburban Toyota dealership in the upper Midwest. I’d spent three days doing advisor training. The advisors were bright, engaged, and genuinely interested in getting better at their craft. A very impressive group of people.
The next week I was back to continue the training, and met the service director for the first time. (He had been on vacation the previous week.) Now, I understood why the service drive team was so professional – it flowed from the top.
Actions Speak Loudest
The core values and performance standards of the dealership were not taught, they were caught. The service director was living the core values, leading by example, and leading the team by serving the team. They caught it from him by observing him.
He didn’t just send his people to training, he attended with them. He asked questions, he contributed his insights, and he firmly communicated to his team that he expected them to DO what they had been taught.
The parts director was also in the training from start to finish – sending a message that he supported the mission of the serviced director; they were a united team.
And – are you ready for this – the dealer himself even attended the training. Sitting together with his service sales team; learning, supporting, encouraging, and letting them know how vital they were to the success of the dealership. There’s a word for that – it’s called leadership!
Results Follow
All this sounds great, but can you take it to the bank? Oh yeah, that’s the best part.
This Toyota store is part of a small group of dealerships. This store sees twice as many customer-pay vehicles; but what is more impressive is their maintenance sales penetration is 200 percent higher than all the other stores.
In other words, they are twice as good at playing the hand they were dealt.
Leadership from the dealer, the service director, and the parts director resulted in a greater CSI, greater retention, and greater profitability!
If you want to be great, be a servant of all!
Related stories:
Dealer Magazine: The Critical Importance of the Sales to Service Handoff
Dealer Magazine: He Who Is Faithful with Little Will Be Entrusted with Much!