Review Time

Below are 40 fundamental traits of a good leader. These are traits that everyone should seek to emulate regardless of their position on the totem pole.

There are 3 ways you can use them:

1. Evaluate yourself. How’d you do?

2. Evaluate the person above you. Your supervisor, department head, team leader, dealer, GM, person in charge, etc. (You don’t have to tell them, just tell me.)

3. Have someone you work closely with or someone you supervise evaluate you.

If you do all three you’ll become a better leader.

My Top 40 Leadership Traits:

1. Leaders have pep in their step
2. Leaders are disciplined
3. Leaders arrive early, stay late
4. Leaders have a sense of humor
5. Leaders are consistent
6. Leaders follow the golden rule
7. Leaders don’t put themselves above others
8. Leaders don’t show favoritism by hanging out with subordinates
9. Leaders can be counted on
10. Leaders answer their own phone
11. Leaders return phone and email messages promptly
12. Leaders dress the part
13. Leaders show respect for others regardless of position or social status
14. Leaders say thank you…a lot
15. Leaders cut to the chase and get to the point
16. Leaders listen because they know others have great ideas too
17. Leaders use the word “We” vs. the word “I”
18. Leaders pull others up not put them down
19. Leaders don’t work in fear of their job; they coach people “up” to take their job
20. Leaders do what they say they are going to do when they say they are going to do it
21. Leaders pick up after themselves…and others
22. Leaders know what they know and they know what they don’t know
23. Leaders take the blame when something fails and they give others credit when it works
24. Leaders communicate then communicate some more
25. Leaders help establish vision and direction
26. Leaders remove obstacles to production, not create them
27. Leaders attack a problem now, rather than letting grow it into a cancer
28. Leaders seek ways to simplify not complicate
29. Leaders seek knowledge; they learn, then they coach others
30. Leaders make the tough decisions now, not later
31. Leaders don’t tolerate a fearful workplace
32. Leaders are enthusiastic
33. Leaders set the accountability standard
34. Leaders have controllable passion
35. Leader detest the statement “We’ve always done it that way”
36. Leaders accept mistakes as a part of progress
37. Leaders see a problem as an opportunity to “fix it”
38. Leaders guard the processes but recognize when they are not working
39. Leaders are optimistic realists
40. Leaders lead from the front and they push from the rear

The review is over, that’s all I’m gonna say, Tommy Gibbs

Charleston, SC?

I’m going to be in the Charleston, SC area the week of October 20. If you have a dealership or dealerships in that area it would be a great opportunity for you and your staff to benefit from my very powerful used car processes and concepts. I can offer you a discount on the workshop fee and travel expenses. Contact me as soon as possible to work out the details. Thanks for the consideration.

Are You Constipated?

As most of us know, constipation can be a terrible thing. When you are constipated it’s virtually impossible to be as productive as you might otherwise be.

Exercise, drinking lots of water and in some really bad cases taking a strong laxative can often relieve the problem and get you back on your “A Game.”

Having 60-day-old plus units in stock is a lot like being constipated. You can never perform your best when you’re all stopped up.

60-day-old units will make you sluggish and hold back your potential to be as productive as you might be. Your “A game” will never show up when you have used car constipation. Think of it as Poop in the chute.

Dealers will often give their used car inventory a laxative, flush the system and start over. It’s a costly approach that’s never the best way to go.

The problem is that even when they “blow it all out” it doesn’t do that much good in the big picture because they don’t change their diet or exercise, so the inventory continues to be constipated and therefore hold them back from achieving their maximum potential.

A good diet for the used car department would be to have good solid processes. A good exercise program for the used car department would be to understand the role that speed plays toward good health. Good diet and exercise can help you avoid used car constipation.

Constipation makes you stinky. You don’t want to be stinky. Having aged units makes you stinky. You don’t want to be stinky.

It’s not a matter of fixing a one-time constipation issue.

It’s a matter of the right diet and exercise to live a happier and fuller life. If you give a hoot you’ll clean up your poop. That’s all I’m gonna say, Tommy Gibbs

Complaints

There’s a big difference between complaints and whining. I can’t stand whining. But, I love complaints. Complaints are an opportunity to fix something. I love fixing stuff.

When dealing with customer complaints I like to ask the customers, “What is it you want us to do to make you happy?” I try not to tell them what I’m going to do unless I already know exactly what they want.

Regardless of what they say they want, a good leadership technique is either to give them all of what they want or nothing at all.

Let’s say you have a dispute about a service bill. If they say they don’t think they should be charged anything and you offer up 50/50 you have just wasted your 50%.

They may very well take it but they are still mad, they hate you and they are going to say ugly things about you and your dealership to their friends and relatives.

I have another leadership tip I want to share with you along these same lines and it goes like this: If you get a complaint, you own the complaint. Seems easy enough, doesn’t it?

What I mean by that is, you will often get a complaint but it’s not necessarily your responsibility to handle it, so you hand it off to the person or department whose responsibility it might be.

A good leadership technique for you, and for you to teach your staff, is that whoever first got the complaint “owns it.” Meaning they should take the responsibility to follow up on it to ensure that the person you or they handed it off to has handled it.

These are two very simple leadership disciplines:

1. When it’s your responsibility to fix it, give the
customer everything they want or nothing at all.

2. You own the complaint. Follow up and make sure it is taken care of.

That’s all I’m gonna say, Tommy Gibbs

Maybe I Shouldn’t Say This

And what might that be? Well, it would simply be an opinion on the subprime business.

Is it fair to say that in many cases a subprime customer actually pays more for the vehicle than a non-subprime or cash buyer?

I’m not talking about the additional high risk interest rate. I’m talking about the fees that get added back to the retail price of the car that go back to the lender’s bottom line.

Isn’t it illegal to charge more for the car when you finance it than when you don’t?

Dealers who do a decent amount of subprime constantly struggle with the pricing of their vehicles in order to cover the subprime fees. It’s not the dealer’s fault. The lenders are the ones that have set the rules for this game.

I’m not at all saying you shouldn’t be in the subprime business. But, it’s a really bad bet to hang your hat on the subprime business continuing as business as usual.

The Feds are coming. The Feds are coming. The Feds are coming. That’s all I’m gonna say, Tommy Gibbs

History

When I’m working with a client, one of the first things I want to know is the history of the store.

How did we get to where we are today? Who started this? Who put the original sweat in this deal? Who grinded it out during all those really tough years? Who took the risk? Who took the challenge? Who’s been carrying the mantle up to this point?

As a leader, you are responsible for the history of your business. Maybe you didn’t create all the history but you’re now part of it and you’re responsible for sharing the history.

Some of it may be rich history. Some of it may be even a bit bleak. It doesn’t matter. You’re a leader, you’re responsible for knowing the history and even more important, you’re responsible for sharing the history.

If you want your organization to grow, share the history.

If you want your organization’s culture to expand,
share the history.

If you want to build a powerful team, share the history.

Share the history. Be part of the history. Make some history. History starts with you. That’s all I’m gonna say, Tommy Gibbs

Raising Expectations Might Be Stupid

I heard a great quote recently and it goes like this, “You should go to work for a company that has high expectations.” I like that, I like that a lot.

So, let’s turn it around. You should hire people who you have high expectations of and you should reinforce your expectations on a daily basis.

As a leader in your organization you are responsible for helping to raise the expectations of yourself and those around you.

If you accept a sales person selling 6 cars a month I’m thinking you’re gonna get a lot of 6 car sales people. What you are willing to accept has now become the standard.

If you accept the used car department selling 75 cars a month then that’s what you’re gonna get.

You might be wishing for 100 but everyone in the store knows your real expectation is 75, so you hover around 72 to 77 and that’s it. Everyone goes away happy. Sorta.

There is a direct relationship between expectations and the way people are treated. If they are treated well, they generally will perform well. Part of treating people well is educating and coaching them well.

Why do the workers at Chick-fil-A perform better than those at Burger King? Because management treats them better. They go to work at Chick-fil-A knowing full well what the expectations are.

The same at the Ritz, the same at Apple, the same at Starbucks, the list goes on and on.

Management’s error is that it often takes the approach of, “It is what it is; we are a victim of the market, so let’s just do the best we can.” Never let doing the best you can be your rev limiter.
People will stretch themselves to achieve the level of expectations that have been set. Every leader should seek to create and build high expectations to improve the performance of everyone in an organization.

People will respond when challenged in a positive way and rewarded with positive reinforcement. Positive reinforcement includes training, praise, celebrating results and acknowledging individual and company successes.

It’s not enough to just raise your expectations and treat people well. You have to raise the level of education and coaching you give your staff in order to give them the tools they need to achieve the expectations you have placed on them. To do anything less is just plain stupid.

Don’t be stupid. That’s all I’m gonna say, Tommy Gibbs

Absolutes vs Exceptions

Absolutes are a powerful tool toward creating a disciplined organization. As an example, an absolute would be saying “no cars over 60 days old” and meaning it.

The down side of absolutes is it chokes off the potential to have an acceptable exception.

Exceptions break the rule of discipline. Exceptions soon become the norm.

When exceptions become the norm chaos breaks out. The type of chaos I’m referencing isn’t actually like a bomb going off. This chaos is slow and gradual, often not recognized, and then – whamo – there it is, its ugly face screaming at you, “What the heck happened?”

Now here’s the real deal for those of you looking to become better leaders. You can have absolutes and exceptions in the same house. They can actually
hang out with each other once in a blue moon.

True leaders can use them both and chaos will never show its ugly face. Granting an exception and going back to absolutes is very doable. The problem with

leadership is that very few leaders have the skill to make effective use of them both.

Most people in leadership positions are stuck with one or the other.

At any given moment one is just as bad as the other. That’s all I’m gonna say, Tommy Gibbs

Choices We Make

You’ve made a choice and the odds are pretty good that you may not be happy with the choice you’ve made. You may have chosen to do volume or shoot for a high average gross profit.

Your struggle may be that you’re not generating enough total gross profit based upon your choice.

Let me remind you that the only thing that is really important is how much total gross you are generating. I always say, “You cannot spend average gross profit. You can only spend total gross profit.”

It’s a contradiction to say to your staff that you expect both high volume and high gross per unit. They stay confused and frustrated when you keep pounding them over the head with this misdirection and sleight of hand marching orders.

I’m sure somewhere out there someone is making it happen on both ends, but it is certainly the exception and not the rule. So, you need to get over it.

It’s a given that more than 80% of the people shopping for a used car shop the Internet. If you think you are going to post high prices or no prices out on the Internet and traffic is going to show up then you are dead wrong. The Internet is a “game changer” for all of you regardless of your new car franchise or set of circumstances.

You have to decide if you want to play the game. More importantly you have to decide if you want to win the game.

It’s a game. There are winners and losers. As Dr. Seuss said, “You have brains in your head. You have feet in your shoes. You can steer yourself in any direction you choose…”

Taking this leap into the volume world means rewriting your overall strategy from acquisition to staffing, pay plans, reconditioning, marketing, and pricing.

Failing to address any of these will result in frustration and poor production and you may find yourself worse off than you are right now.

The bottom line should be to increase your total gross profit. It’s not done by improving your average. It’s done by maintaining a respectable gross and substantially improving
your volume. Small market or big market, it doesn’t matter.

The Internet has opened the world up to you and you have to decide if you want to be in either that world or your own little world. Your little world has limitations.

The Internet world does not. That’s all I’m gonna say. Tommy Gibbs

Breaking Resistance

Resistance is everywhere. It’s all those people yelling at you that it can’t be done. It’s you thinking, “I could never.”

It’s those around you throwing out the caution flag saying, “Are you sure, do you really think you can do that?”

It’s those friends, relatives and co-workers saying, “Hey, don’t leave us here, we like you being a part of our woes, please don’t run off and leave us.”

You have faith in yourself. You know you can do it. But, resistance keeps yelling at you from the far left hand lower corner of your brain, “Have you lost your damn mind? You can’t take such a chance.”

Momentarily you overcome the yelling, but then the yelling starts again, even louder, “You’re too old, you’re too young, you don’t have the experience, you don’t have the education, you haven’t been there and done that yet.”

Resistance is fear. It’s you being scared. It’s you being afraid to take a chance.

Resistance is as natural as the sun coming up each day.

Resistance is you being afraid to swing from your heels and go for the fences.

If you’re going to ever have your break out moment.

If you’re going to make it happen.

If you’re going to climb the mountain.

If you’re going to control your destiny.

If you’re gonna kick ass and take names.

All these ifs…

At some point you need to tell resistance where to go and get on with it. You’re smarter than resistance. I believe in you. A lot of people believe in you. You believe in you. Let’s go.

That’s all I’m gonna say, Tommy Gibbs