The Chain Of Command

If you were in the military you know what the “chain of command” means. Even if you weren’t in the military I’m thinking you have a pretty good idea of what it’s all about. The chain of command is critical to success in the military, sports or business.

How often does the chain of command get broken in your dealership? It’s not unusual for the Dealer, GM or owner operator to have a special relationship with those who answer to others in the store. A breakdown of the chain of command and discipline occurs when they are allowed to do an end run on management.

How many times have you seen upper management allow the sales people to run off a good manager for no reason other than they don’t like the systems, processes and disciplines that manager is attempting to bring to the table? Upper management allows this to happen due to some special bond created over a long period of time with certain sales people or favorite employees.

That’s not to say that some of these managers shouldn’t have been shown the door in the first place, but to allow it to be done based on the tail wagging the dog is totally wrong. It is insanity to allow the inmates to run the asylum. A good friend of mine who referees in the NBA often uses that term to describe how the players run the league.

If you’re in upper management and aren’t going to support your management team, then why hire them in the first place? Everyone performs better when there is a solid chain of command. The management team needs to be allowed to succeed or fail on their own merit, not based on the likes and dislikes of those who answer to them.

That doesn’t mean you can’t have an open door policy. You can, but be smart enough to know when to say you need to go speak with your supervisor about that issue.

You cannot run a successful business when people are allowed to break the chain of command. The reality is the chain of command is actually broken by those in command. That’s all I’m gonna say, Tommy Gibbs

Suppose You Had To Explain It?

I’m a baseball fan. One of the things I find interesting about baseball is after the game is over the manager of the team is required to hold a news conference and explain what happened.

Win or lose they have to talk about it to the media and people like me in the world of sports. When they win, it’s much easier. When they lose, not so much.

When they lose they try to sugar coat it a bit by talking about the things they did well. When they lose they say things like:

A. “We couldn’t get the timely hits.”
B. “Our starting pitcher had trouble locating the strike zone.”
C. “We had a couple of mental mistakes in the field.”
D. “Our bullpen let us down.”

Often the news media will press them to elaborate on this and that. Once in a while a manager will say, “We just really sucked.” Maybe not exactly like that, but that’s what they are saying.

Then they will talk about what they have to do in tomorrow’s game to get better.

Suppose you had to explain your performance today? For the week? For the month? For up to this point in the year?

What would you say?
What would you fix?
What would you change?

Suppose you had to explain it? That’s all I’m gonna ask. Tommy Gibbs

The Big “D Word…”

Being a former Marine, part of my core values as an individual comes from my Marine Corps training. And no doubt a large part of my success in life comes from being well disciplined.

Many of my disciplines have come from being an athlete where you cannot achieve any level of success without discipline.

Without question people with a military and/or a sports background make better employees/team members because they are well disciplined.

Discipline shows up in many forms in the workplace including being on time, achieving assignments, how you dress, how you talk, what you say, how you say it and who you say it to.

It’s pretty much a sure bet that if you are un-disciplined in your work life that your personal life is no different and chaos has become your best friend.

Discipline is about controlling will power/self-control over one’s desires to do the wrong or easy thing. It’s about doing the right thing when the wrong thing keeps screaming “why bother.”

Focus on improving your discipline regardless of where you have come from and where you might be today. Observe others around you who you deem to be well disciplined and start to emulate them. Pretty soon others will start to emulate you and now the tribe becomes very powerful.

“The pain of discipline or the pain of regret.” You get to pick. That’s all I’m gonna say. Tommy Gibbs

Is Business Good?

Most would agree that the automobile business is very good these days.

When business is good we often pound our chest and become lax in paying attention to some of the more important things. When you’re generating some decent profits, it’s easy to take your eye off the target.

There’s an old saying that selling cars, which equates to gross, will hide a lot of sins.

When business is good, that’s the time to amp it up. That’s the time to dial it in. That’s the time to go for the jugular.

On a daily basis you should ask yourself:

1. Are you letting certain expenses get out of line?
2. Do you have too many people?
3. Do you have too few people? Sometimes too few is just as bad as too many.
4. Have you accepted that the average gross profit that you’re getting is all the gross profit you can get?
5. Do you have the right pay plans for today’s market? For today’s sales people and sales management?
6. Have you gotten lazy about holding people accountable?
7. 50% of your advertising dollars are wasted. Do you know which 50%?
8. Are you looking under every possible rock to find used cars to sell?
9. Have your processes started to get sloppy and evaporate?
10. Are you truly engaged in the business or are you just staring at your computer?
11. Have you put training and coaching on the back-burner?

Business is good. The worm will turn. Be ready. That’s all I’m gonna say. Tommy Gibbs

Setting The Example

One of the best leadership skills to focus on is to set the right example by always doing more than is necessary.

When in doubt as to whether you’ve given enough, give some more. As a leader it’s up to you to set the pace, to set the example. It should always be about “do as I do, not do as I say.”

Great Leaders:

1. They do more than they know is necessary.
2. They do more than they know is fair.
3. They do more because it’s the right thing to do.
4. They do more not expecting anything in return.
5. They do more even when they know it still may not save the day.
6. They do more even when they know it may not save the customer.
7. They do more because they know it’s a teaching moment.
8.They do more because they don’t want to leave this earth owing anything.
9. They do more because they can.
10. They do more because they see the big picture.
11. They do more because if not them, who? Maybe you!

Never forget everyone is watching you, that’s all I’m gonna say, Tommy Gibbs

The Truth Appears

I’m not always right, but I’m often right because I pay attention and I study the car business every day. I’m not a numbers genius, but there are some numbers in the car business that even I can understand and that can’t be denied.

A few months ago I introduced my readers and clients to my 30/30 spreadsheet. Dozens of dealers send me a copy of their spreadsheet at the end of each month.

As you can see from the below examples it’s very telling. If you weren’t a believer in selling units fast there’s a pretty good chance you will be if you start tracking 30/30.

Your goal each month should be to improve the percentage of units being sold in your first 30 days of ownership VS those being sold after 30 days.

Let the convincing begin. That’s all I’m gonna say, Tommy Gibbs
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Three To Five Years

That’s about it. Five max. That’s about the number of years a person can be productive and feel challenged in any given job.

Yes, there are exceptions, but for the most part somewhere between 3 and 5 years you need to move your managers around.

I know that’s hard to do especially in smaller dealerships. But, for those not in a small dealership you need to give it some thought.

Real leadership means making hard choices. Real leadership means giving people a chance to grow.

People can’t grow when they are not challenged. Doing the same job day in and day out can suck the wind right out of you.

Yes, there are some people who do an amazing job in one position for 10 years and beyond. That’s all they are interested in doing and there’s nothing wrong with that. Pay them well and give them a pat on the back.

Real leadership is always looking for opportunities to push people along. The more the team learns the easier the leader’s job is. The more a team is challenged the more fulfilled the team is. When the team is fulfilled, it’s win, win.

Lead from the front and push from the rear. That’s all I’m gonna say. Tommy Gibbs

Too Smart?

Could it be that you’re too smart for the car business? No really, I’m convinced that some people are just too smart for this business.

I’m not going to deny that to be in the business today requires a much higher degree of thinking and intellect than it did 30 years ago.

But, there are some people who over-analyze, over-think, over-chart, over-spreadsheet to the point where they forget we’re in the car selling business.

One of the best dealer operators I ever met would take a chance, throw it against the wall and bam, lots of cars got sold.

He didn’t overthink it. He just went for it. Oddly enough he was right more often than not and he didn’t need a spreadsheet to tell him to “let ‘er fly.”

I love being around smart people. I always learn something from them. Sometimes I learn what not to do as much as I learn what to do.

Don’t overthink it. Just sell cars. That’s all I’m gonna say. Tommy Gibbs

Opportunities Of Leadership

1. Being up when you are down.
2. Picking others up when they are down.
3. Doing the right thing when it’s easy to do the wrong thing.
4. Being respectful when your instinct is to do the opposite.
5. Getting after it when you feel drained.
6. Making changes when staying the course is comfortable.
7. Doing what you have asked others to do.
8. Speaking softly when you’d rather make a lot of noise.
9. Making a lot of noise when you’d rather speak softly.
10. Showing up early when you know you can come in late.
11. Making tough decisions that others can’t and won’t make.
12. Delegating authority so others may learn and grow.

What great opportunities you have as a leader. That’s all I’m gonna say,
Tommy Gibbs

Not Going To Make You Happy

For some of you this isn’t going to be pleasant. Or at least it may not be if you do what I’m going to suggest.

Regardless of your position in the dealership, owner, new car manager, BDC manager, used car manager or even if you’re not a manager, go click on your website… right now, yes right now go look at your website.

Even if you think your website looks great, I dare you to go look at it. (Don’t be chicken.)

I’m only going to pick on used cars, but if you take the time to click on all your buttons I’m betting you’re going to find some things that will drive you nuts. We all need to pretend to be our own customer and see what works and what doesn’t.

Click on the used car section and tell me what you see. Take it a step further and scroll through a few used cars…keep scrolling…

1. How many photos per car do you see?
2. How many lousy pictures do you see?
3. How many are taken outside?
4. How many have shadows?
5. How many have a factory photo?
6. How many have no photo?
7. How many don’t have a price?

Depending on what you just looked at there’s a good chance you are saying, “What the heck are we doing? No wonder we’re not selling enough used cars. No wonder we’re not making much gross per car.”

Can we all agree that somewhere between 80 and 90% of all customers who shop for used cars look on the Internet? If that’s even close, how do you think you’re gonna drive traffic with photos that look like what you’ve just viewed? (Did you see any with snow on them?)

The concept of a photo booth has been around for years now. Progressive organizations that understand the real world have a photo booth.

You won’t come close to maximizing your sales until you maximize your exposure. You will never maximize your exposure by taking photos outside.

I’m exposing you by daring you to look at your website. Don’t like what you see? Don’t be sad. It’s going to be ok. Just fix it. That’s all I’m gonna say. Tommy Gibbs