Often in my training sessions I’ll ask the question, “How many of you agree that we do a lousy job of holding people accountable in the automobile business?” Without exception, they will all raise their hands.

Leaders that have figured out how to hold people accountable are the most successful when it comes to developing a culture of leaders and achieving high results.

Holding people accountable doesn’t have to be a negative experience. When people understand the expectations, they will seek to achieve those expectations, goals, objectives, culture or however you might want to frame it.

People tend to do the right thing when they know it’s in their best interest, not when you have to hit them over the head with a baseball bat.

Your job as a leader is to sell the team the idea that the things the organization deems to be in the best interest of the organization is actually in their best interest too. Achieving expectations means they win, we win and we all have more success.

Easy tips:

1. Make sure everyone is reminded of the expectations. Yes, that seems elementary, but the evaporation factor is always in play. Either as a direct message or subliminally, leaders must constantly remind the troops of what’s expected and what’s important.

2. Get on it right now. Far too often when there’s a lapse in achievement, leaders let things drag on and on. The more things are allowed to slip, the more those things become habit, and the more the expectations are lowered.

3. You don’t have to be mean to enforce expectations. People like to work in a well-run, well-disciplined organization. This isn’t about screaming and hollering at someone about their failures. It is about letting them know quickly we’re not on track; you and your team are not getting it done, whatever “getting it done” might mean to you.

At some point there must be consequences for those who cannot live up to reasonable expectations. The ultimate consequence is they get to go to work someplace else.

4. Be consistent in your actions and statements. The easiest way for expectations to fall apart is that you are all over the place. You let some things slide for some people and not for others. You cannot be Dr. Jekyll and Mr. Hyde. Selective enforcement with just a few people will destroy the morale and productivity of the team.

5. There are times when you need to figure out the real root of why expectations aren’t being met. What’s the real problem? Leadership sometimes will set the wrong expectations. Setting the wrong expectations is just as bad as not having any.

6. In order to hold others accountable we too have to hold ourselves accountable. We should make it a daily practice of looking in the mirror and being honest with ourselves.

A part of holding yourself accountable is never to forget, “Familiarity breeds contempt.” The closer you become with people the more difficult you make your responsibility of holding them accountable.

I’m holding you accountable. That’s all I’m gonna say, Tommy Gibbs

While I realize you don’t care all that much about my history, I want you to know I’ve tried it all when it comes to recruiting and training. In the early 80s we had an off-campus training facility with two full-time recruiters and trainers for our three-store group.

I wish I had a perfect fix for you. I can get you close but, in the end, you have to deal with the issues surrounding a major cultural shift.

That’s what it is, a major cultural shift when it comes to today’s recruiting and training of salespeople.

If you’re building a new store from the ground up, you have a much better chance of making it happen. You can write the new rules, hire the right people and change the game.

You can lay out an achievable game plan that will carry you through the next 20 years. I didn’t say it’s not going to change over the next 20 years, just that it will put you in a position to build on as you move forward.

Since you’re probably not building a new store it’s going to be a little more difficult, but if you have some discipline you can do it. It’s going to be expensive but if you think about what you might be investing in a new store given the chance, then it’s probably a bargain.

And, if you think about the cost of turnover, you’re going to win big time. Nothing you can do will eliminate turnover, but how you deal with it and how you restock your shelves can make a big difference.

The size of your store certainly can change the equation, but at some level all of this is doable.

When it comes to training, you have to get committed to something more than “Johnny the new car manager/GSM will handle it whenever we hire someone.” Johnny can close deals, but he ain’t no trainer.

As a matter of fact, it’s a burden and pain in Johnny’s butt to have to deal with it. His lesson plan consists of making sure they know the selling process.

Hiring outside companies to come in and do your recruiting and hiring is a short-term fix at best. It makes you feel warm and fuzzy, but the end result doesn’t change much of anything.

If you have 10 salespeople or more, you need to give serious consideration to having a full-time trainer and you need to invest in their teaching skills and not just base it on “they know what to do.” You have to continue to educate the trainer.

Here’s the secret sauce:

1. Hire a trainer. Give him/her the tools they need to be successful, as in equipment and training for them. (Why do this? Because the way you’ve been doing it isn’t working.)

2. Pick a specific week each month that you are committed to a new recruiting or training class. (Why do this? Because it shows you are committed to building a different and powerful organization. When you only recruit and hire when you need someone, you end up hiring people you shouldn’t. There’s always a need to upgrade and improve your sales team. Stop protecting non-producers and hang-ons.)

3. Require other managers to sit in on various phases of the training. Be flexible but do it. With the supervision of your trainer, you can assign them parts of the training to lead. (Why do this? Because they need to know what you are teaching and what to expect when the salespeople hit the floor. And, they might learn something.)

4. Every manager in the front part of the store will be required to personally recruit a person for class each month. They cannot run ads. They have to find them in the wild. If the person they recruit makes it 90 days, pay them a $500 bonus. If I was doing it, I’d fine them $500 if they didn’t have a butt in the class each month. (Why do this? Because when someone personally recruits someone else, they will take a personal interest in their success. You’ve seen it happen over the years where a sales manager takes a liking to a salesperson and helps them succeed. Same deal magnified a bunch.)

5. Change your pay plan to salary and volume based. Do not pay on gross. You can hire a lot of quality people who are happy making $50,000 to $70,000 a year. (Why do this? People today don’t want to be paid on gross. And, the sales people today have very little control over gross. The deal is already a mess because of the prices you’re putting on the Internet for both new and used.)

6. Don’t hire anyone that’s ever sold a car before. (Why do this? If I have to explain this, you’re in a lot more trouble than I can help you with.)

7. Hire some part-time salespeople to help out at peak times. (Why do this? To give you the coverage you need and so your full-time people don’t have to work 12 hour days.)

8. Commit to a 40-hour work-week. (Why do this? People think differently than we did in generations gone by. They don’t want to work 12 hours a day regardless of what the income potential might be. They are willing to earn less if they can have more time off. Their value system is far different than what we have seen in the past. Deal with it.)

9. Incorporate an up-system into your selling process. (Why do this? So, you don’t have the mob standing at the front door waiting on an expensive up. One of the reasons you lose quality people is they hate standing around doing nothing. Keeping them busy should be part of your daily mission. You need to lead the charge for them to be productive and generate their own customers.)

10. For at least 30 days all new salespeople’s deals will be desked by the trainer. (Why do this? Because they can’t say to the trainer “that wasn’t taught to me in class.” Your trainer and your salespeople will become better and better.)

Understand that people are going to come and go. It’s the nature of any sales business. One of your goals is to give them the tools to be successful with your organization or whatever they end up doing in life. When you help others to be better, you become better.

Be aware of your current staff saying they are all in on the outside and sabotaging your new direction on the inside.

There will be current salespeople and sales management that want to see your new direction fail. They will undermine you and point out all the reasons these are bad ideas. Some of them are simply protecting their own turf and will try to make you believe they are looking out for you.

They aren’t.

You have choices to make. Stick with what you’re doing or make major changes. The longer you wait, the more pain you will have and at some point, the pain will be so great that you have to change. That’s all I’m gonna say, Tommy Gibbs

P.S. SEE YOU AT THE CONVENTION!

In sports, you often hear about how powerful momentum and intensity can be. The last two minutes of a football game will frequently determine the outcome.

You will often see players and coach’s greatness shine through in the most helter-skelter moments. There’s a good chance the last two minutes of the Super Bowl upcoming Super Bowl will determine the outcome.

In the automobile business, the last day of the month is like the two-minute drill of a football game.

I have some what ifs for you:

What if you approached the 15th of the month as if it were the last day of the month?

What if you approached every Friday and Saturday as if they were the last two days of the month?

What if you approached every Wednesday and Thursday as if they were the last two days of the month?

What if you approached every Monday and Tuesday as if they were the last two days of the month?

What if you approached every day as if it were the last day of the month?

What day is it? It’s the last day of the month. It’s always the last day of the month.

The clock is aways ticking. You’re running out of time-outs. The end is near. You can do more. Let’s go. That’s all I’m gonna say. Tommy Gibbs

When staff members aren’t doing what you would like them to do it’s not due to ignorance. It’s due to the fact that they don’t care about what you care about.

Getting people to care about what you care about isn’t necessarily about having more meetings and training sessions. Of course that activity is a part of giving people what they need to know.

Knowing something and doing something is what separates the good companies from the great companies.

One of the best things a leader can give to his/her organization is to set the atmosphere for a defining culture.

Everybody has the same product.

Everybody has great prices.

Everybody has technology.

Everybody has trained technicians.

Everybody has good selling processes.

Culture is what will separate your organization from your competition.

Most of the time upper management “gets it.” The breakdown occurs at the next level. Far too often we don’t get enough influence from the core staff to make a real difference.

A few are talking the talk, but most aren’t walking the walk. People have to “see it” in order to start to “believe it.”

Your challenge is to get more of the “next level” involved, engaged, and believing they can make a difference.

Until you do so:

You’ll hold some nice meetings:

Do some nice talking.

Print some nice posters.

Create some nice name badges.

Feel good about yourself.

But, not much will change. That’s all I’m gonna say, Tommy Gibbs

I have a saying and it goes like this, “You’re never as smart as you think you are and you are never as dumb as you appear.” Some of you are feeling pretty smart right now.

It could be that you are really smart, or it could be that you got lucky because of a once-in-a-lifetime market shift in your favor.

And of course, there are times when you feel pretty dumb. Even that may or may not be true. You might be a victim of a bad set of circumstances.

Some of you have had bad franchises in bad locations or it could be that you’re a newer used car manager that inherited a hot mess for a used car inventory.

Or it could be you’re just dumb.

In any given set of circumstances, it’s important to maximize whatever you have. During the last few years, you may have maximizing things in spite of yourself or maybe you were smart enough to make some good moves.

It could have been you didn’t know what to do and by doing nothing you got lucky.

The most important thing right now is recognizing where you are, how you got there, and how to stay on this magical course you’ve discovered.

This business continues to be:

All about the basics.
All about the fundamentals.
All about your disciplines.
All about the processes.
All about understanding the data.
All about common sense.
All about your focus.

Never forget that sometimes when you get to the fork in the road you need to take it. It might be time to make a turn. Or you can just be dumb.

That’s all I’m gonna say, Tommy Gibbs

Why can’t we get it right?

These are questions people often ask when change happens in your organization.

Those are legitimate questions when you’re having people changes.

Changing people once in a while is part of being in business. Too frequent people changes will keep you on a roller coaster to nowhere. If you’re the leader and you’re having too many people changes, the common denominator is looking at you in the mirror.

That said, there are times when if you can’t get people to change, then you do need to change the people.

If you’re struggling when changing processes, selling systems, pay plans, procedures, etc. then it’s likely the culture needed to move you to the next level hasn’t been properly developed.

Besides establishing the right culture, the clearer you can be about the specific change you’re hoping for the more likely it is you’ll actually achieve it.

Getting buy-in is critical to enacting successful changes.

Of course, you may have the power to change anything you want, but that doesn’t mean you should always use it.

You’re not running a democracy, you’re running a business. But…

Most changes should start with a “trial balloon.” Toss it in the air with those that are going to have the greatest influence on the implementation and those who will be impacted the most.

It doesn’t mean you go with the wind.

It doesn’t mean you’re wishy-washy.

It simply means you’re figuring out how hard and how much groundwork you will need to lay in order to have the best chance for a successful change.

The most successful changes you will ever implement are when people think it was their idea.

The least successful changes you will ever attempt to make are when people think it was your idea.

When you’re through changing, you’re through.

That’s all I’m gonna say, Tommy Gibbs

What happened to Southwest Airlines?

(I didn’t write this. I found it. I’m sharing it.)

I’ve been a pilot for Southwest Airlines for over 35 years. I’ve given my heart and soul to Southwest Airlines during those years. And quite honestly Southwest Airlines has given its heart and soul to me and my family.

Many of you have asked what caused this epic meltdown. Unfortunately, the frontline employees have been watching this meltdown coming like a slow motion train wreck for sometime. And we’ve been begging our leadership to make much needed changes in order to avoid it. What happened yesterday started two decades ago.

Herb Kelleher was the brilliant CEO of SWA until 2004. He was a very operationally oriented leader. Herb spent lots of time on the front line. He always had his pulse on the day to day operation and the people who ran it. That philosophy flowed down through the ranks of leadership to the front line managers. We were a tight operation from top to bottom. We had tools, leadership and employee buy in. Everything that was needed to run a first class operation. When Herb retired in 2004 Gary Kelly became the new CEO.

Gary was an accountant by education and his style leading Southwest Airlines became more focused on finances and less on operations. He did not spend much time on the front lines. He didn’t engage front line employees much. When the CEO doesn’t get out in the trenches the neither do the lower levels of leadership.

Gary named another accountant to be Chief Operating Officer (the person responsible for day to day operations). The new COO had little or no operational background. This trickled down through the lower levels of leadership, as well.

They all disengaged the operation, disengaged the employees and focused more on Return on Investment, stock buybacks and Wall Street. This approach worked for Gary’s first 8 years because we were still riding the strong wave that Herb had built.
But as time went on the operation began to deteriorate. There was little investment in upgrading technology (after all, how do you measure the return on investing in infrastructure?) or the tools we needed to operate efficiently and consistently. As the frontline employees began to see the deterioration in our operation we began to warn our leadership. We educated them, we informed them and we made suggestions to them.

But to no avail. The focus was on finances not operations. As we saw more and more deterioration in our operation our asks turned to pleas. Our pleas turned to dire warnings. But they went unheeded. After all, the stock price was up so what could be wrong?

We were a motivated, willing and proud employee group wanting to serve our customers and uphold the tradition of our beloved airline, the airline we built and the airline that the traveling public grew to cheer for and luv. But we were watching in frustration and disbelief as our once amazing airline was becoming a house of cards.

A half dozen small scale meltdowns occurred during the mid to late 2010’s. With each mini meltdown Leadership continued to ignore the pleas and warnings of the employees in the trenches. We were still operating with 1990’s technology. We didn’t have the tools we needed on the line to operate the sophisticated and large airline we had become. We could see that the wheels were about ready to fall off the bus. But no one in leadership would heed our pleas.

When COVID happened SWA scaled back considerably (as did all of the airlines) for about two years. This helped conceal the serious problems in technology, infrastructure and staffing that were occurring and being ignored. But as we ramped back up the lack of attention to the operation was waiting to show its ugly head.

Gary Kelly retired as CEO in early 2022. Bob Jordan was named CEO. He was a more operationally oriented leader. He replaced our Chief Operating Officer with a very smart man and they announced their priority would be to upgrade our airline’s technology and provide the frontline employees the operational tools we needed to care for our customers and employees. Finally, someone acknowledged the elephant in the room.

But two decades of neglect takes several years to overcome. And, unfortunately to our horror, our house of cards came tumbling down this week as a routine winter storm broke our 1990’s operating system.

The frontline employees were ready and on station. We were properly staffed. We were at the airports. Hell, we were ON the airplanes. But our antiquated software systems failed coupled with a decades old system of having to manage 20,000 frontline employees by phone calls. No automation had been developed to run this sophisticated machine.

We had a routine winter storm across the Midwest last Thursday. A larger than normal number flights were cancelled as a result. But what should have been one minor inconvenient day of travel turned into this nightmare. After all, American, United, Delta and the other airlines operated with only minor flight disruptions.

The two decades of neglect by SWA leadership caused the airline to lose track of all its crews. ALL of us. We were there. With our customers. At the jet. Ready to go. But there was no way to assign us. To confirm us. To release us to fly the flight. And we watched as our customers got stranded without their luggage missing their Christmas holiday.
I believe that our new CEO Bob Jordan inherited a MESS.

This meltdown was not his failure but the failure of those before him. I believe he has the right priorities. But it will take time to right this ship. A few years at a minimum. Old leaders need to be replaced. Operationally oriented managers need to be brought in. I hope and pray Bob can execute on his promises to fix our once proud airline. Time will tell.

It’s been a punch in the gut for us frontline employees. We care for the traveling public. We have spent our entire careers serving you. Safely. Efficiently. With luv and pride. We are horrified. We are sorry. We are sorry for the chaos, inconvenience and frustration our airline caused you. We are angry. We are embarrassed. We are sad. Like you, the traveling public, we have been let down by our own leaders.

Herb once said the the biggest threat to Southwest Airlines will come from within. Not from other airlines. What a visionary he was. I miss Herb now more than ever.

This should be a really great week.

It will only be a really great week if you make it a great week. It’s not going to be a great week if you stay in your seat acting like a computer geek.

You can make it a great week by getting up and moving around. You should be like a bumblebee on a pollination mission.

You’re here. You’re there. You’re everywhere.

You can’t just flap your little wings in place and think someone’s gonna sell a car. You have to move around.

You have to create the buzz.

You have to go from being weak and meek in order to make it a great week.
I don’t like things to be all about you, but this is all about you. This week is all about you. It’s about you making things happen.

It’s about you contributing as much in a week as you sometimes do in a month. It’s not about you giving 100 or 110%. It’s about you giving 200%.

It’s not about asking others to do it. It’s about you doing it. You sometimes think you’re important. Well, you are important. You’re even more important than you think. At least this week you are.

You may have to sting a few people this week. That’s ok. Some of your team could probably use a sting or two. A little stinging pain for a whole lot of car selling gain.

This is not the week for the meek and certainly not a week for a geek. It’s the week of the bumblebees. Let the stinging begin.

That’s all I’m gonna say, Tommy Gibbs

I’m thinking you already know a lot about “Prime Time,” Deion Sanders.

A quick highlight of his career:

He’s one of the few people that have played two professional sports.

He played 14 years in the NFL, 9 years in MLB and was voted into the Football Hall of Fame in 2011.

“Prime Time,” is the only man to play in both a Super Bowl and a World Series. He’s the only man to hit an MLB home run and score an NFL touchdown in the same week, and to have both a reception and an interception in the Super Bowl. 

Most recently he’s been the head coach at Jackson State University. Sanders led Jackson State to a 27−5 record during his three seasons at the helm. Within the last month he was named head football coach at University of Colorado Boulder.

I’ve attached a couple of videos of “Prime Time” meeting the members of the current Colorado team and saying his goodbyes to his players at Jackson State.

There are several takeaways in these video that I believe are critical to a leader’s success.

In the Jackson state video, it’s obvious how much his players love and respect him and the same from him to them. He’s able to have humorous moments and be able to get right back on task and talk about serious things.

When I owned dealerships, I often said to our new team members, “If you don’t have a sense of humor, you’re going to be very unhappy working here.”

A sense of humor combined with discipline is a powerful tool for a leader.

In the Colorado video he lays down the law. He’s dead serious and they know he ain’t kidding.

I love it when he says, “Some of you won’t make it here. Some of you will be gone.” Many leaders of today bend their rules so much that they end up with no rules and a list of meaningless processes.

No hats. No earrings. No Hoodies. His intent is to break them down just like they do in the Marine Corps.

The message is clear:

It ain’t about you.

It’s about the team.

We don’t need individuals.

We need strong teammates who are on the same page.

Say what you mean. Mean what you say.

At the very core of people respecting you is to do what you say you’re going to do when you say you’re going to do it. It cannot be any simpler than that.

“Prime Time” is smart.

“Prime Time” is a leader.

Be smart and lead like “Prime Time.” That’s all I’m gonna say. Tommy Gibbs

Did you notice that you are getting really comfortable with having aged units around?

You’ve justified in your mind that it’s ok because you convinced yourself during the pandemic that you could sell anything at any time and make money on it. Since you think that’s a brilliant plan, please let me know how the ROI turns out for you when you let crap age on you.

Did you notice that the selling processes you think your team is using, aren’t the selling processes you’re using?

Some members of your management team are doing their “own thing.” If you don’t believe it, sit down individually with your sales people and ask them how each manager starts and works a deal.

Did you notice that you are no longer doing a “save-a-deal meeting” and “trade walk” each day?

You’ve accepted it as fact that everybody is so busy that they don’t have time to do it. You’ll be surprised at how many more deals you will make by doing a “save-a-deal meeting.” And, how many more used cars you will end up keeping and retailing when the management team does a “trade walk.”

Did you notice that the management team doesn’t understand Life Cycle Management?

Life Cycle Management starts on day one, not day 61. If you are having aged units and/or losing money on units wholesaled at the end of the life cycle it’s because they are not using “Early Warning Radar.” If you don’t think Life Cycle Management is important, go ahead and tell me the story on your oldest unit in stock. Yep, they all have a story. You ignored the story on day one so now you get to the rehash the story on day 61. Had you been focused on Life Cycle Management, that unit would have been gone long ago with little or no loss and maybe even a profit.

Did you notice that the sales and management team doesn’t do lot walks anymore?

Did you ever wonder why your sales people don’t sell more used? It’s because they don’t know the inventory. Know the difference between a lot walk and a trade walk. Now do them both.

Did you notice that you get lots of lip service on those processes you know need to be followed in all the departments?

Guarding the processes is one of the most important functions of leadership.

Did you notice that the average cost per used car in stock keeps creeping up and up?

The reason it’s happening is because you are not paying attention to it every day. Pressing the average cost down is a fundamental discipline. If every manager doesn’t know the number, you’re not doing your job. The pain of discipline or the pain of regret.

Did you notice that you’re back to selling vehicles for less than what you have them posted online?

That’s because the sales team isn’t sold that you have the best product at the best price. Before you can make the customer a believer you have to get the sales staff to believe. Tracking GAP will create a focus that forces you to hold more gross profit.

Did you notice that a lot of your problematic used cars in stock are either high dollar or purchased at an auction?

If you would print out a list every day of your 10 most expensive units in stock, and distribute to your management team, you would eliminate most of these problem children.

Did you notice that sometimes you just don’t notice? Your job as a leader is to notice what’s going on. My job is to keep reminding you. That’s all I’m gonna say, Tommy Gibbs