I Have Questions For You

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, the 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.

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

How did you score? That’s all I’m gonna ask, Tommy Gibbs

The Elephant In The Room

There’s always an elephant in the room. They come in different colors, sizes, and shapes. Some are purple, red and green. Some are fat and some are skinny. Some are wide and some are narrow. Some are sort of cute, but most are ugly. They are always there.

You know they are there. Your staff knows they are there. But, you, yes you, the leader, you keep ignoring them. The more you ignore the elephant, the more your staff rolls their eyes in disgust and disbelief. The staff knows you have the power and weapons to slay the elephant, but you keep ignoring the elephant in the room.

You seem to think that if you ignore the elephant it will just go away. How silly of you. The elephant is grazing on your resistance, getting fatter by the day. The elephant ain’t going anywhere on its own.

If you really wanted to fix things, you’d get a stick and run the elephant off. But, Nah, you like pretending the elephant doesn’t exist. You like living in fantasyland. Don’t be surprised if one day the elephant sits on your lap and crushes you.

Your staff will be so sad when that happens. They wanted to tell you the elephant was there, but they wanted to keep their jobs even more.

Are you ignoring the elephant in the room? That’s all I’m gonna ask, Tommy Gibbs

Are You Eliminating Excuses?

One of the constant themes/issues that I come across in my travels is PIC (Person in Charge); the dealer, general manager, owner-operator who doesn’t listen to those in the trenches when it comes to what’s working, what’s not and what can be done to fix something.

Often it’s not just that they don’t listen, it’s that they don’t bother to ask. Even when they do ask they won’t act on the information they have been given because they (the PIC) has been there and done that.

Sometimes they have over-analyzed the information to a point where they are convinced that whatever the thought or suggestion that was served up will not work.

I think far too often in the car business, or any business for that matter, we become convinced that something can’t be done and when we do that we are no doubt right.

And, we are just as right when we become convinced that something can be done.

Business and life is such a head game. The better heads win. Often as we go up the APG (Authority Power Grid) we start to believe that due to our success we have all the answers.

And as brilliant as we may be, we need to value and act on those ideas that come to us from those who are immediately dealing with the problem.

You need to listen to those under you and you need to let them try some of the things they believe will help your business. Take the handcuffs off and turn them loose once in a while. What you think doesn’t matter as much as you think.

One of my favorite techniques as a dealer was to ask the members of the management team what they need in order to fix whatever problem they felt was getting in their way of performing to their maximum potential. (That’s big, read it again.)

My message to them was “Tell me the problem, tell me what you think the fix is and let’s get on with it.” I loved eliminating excuses. Now the ball is in their court. Game on!

When all the information comes from the top down in the power grid, those on the lower half of the grid become very unhappy.

Unhappiness leads to frustration. Frustration leads to throwing one’s hands up and giving up.

When people give up they go through the motions and the organization never reaches its full potential. I want you to reach your full potential. Ask questions. Eliminate excuses. That’s all I’m gonna say. Tommy Gibbs

Who Owns It?

Did you ever wonder why you can’t achieve and maintain maximum success in your used car department?

When you analyze it, you have a pretty good inventory. You’re not short on operating capital.

The amount of space you have is ok and most of the management staff seem to have a pretty good understanding of the importance of having a good used car department.

You have great software that you use to stock and price your inventory and you do a nice job of reconditioning your inventory.

Until you or somebody takes ownership, it ain’t gonna happen. I realize every dealership has some restrictions on the amount of management staff that can be allocated to any one department, but far too often used cars are an add-on for someone on the team.

Maybe it’s sorta the GM’s responsibility.
Maybe it’s sorta the GSM’s responsibility.
Maybe it’s sorta the Desk Manager’s responsibility.
Maybe it’s sorta the Sales Manager’s responsibility.
Maybe it’s sorta the combination used car manager/sales manager’s responsibility.

See what I mean? Nobody owns it. Yes, the duties of a used car manager today are far different than they were 20 years ago. There are some situations where we are asking some “used car managers” to do things they don’t have the skills to do. Just because someone understands the wholesale market doesn’t mean they understand the retail market.

When somebody owns the used car department they come to work every day on a mission:

On a mission to make it happen.
On a mission to get people excited.
On a mission to ensure units aren’t aging.
On a mission to get units through the system.
On a mission to make sure the inventory is turning.
On a mission to get cars online and on the line ASAP.
On a mission to build a team that gets after the used car market.
On a mission to study the best of the best and make the department the best it can be.
On a mission to identify and have a strategic plan in place to make the problematic units go away.
On a mission to sell everyone on the role the used car department plays in the overall success of the dealership.

Who owns your used car department? That’s all I’m gonna ask, Tommy Gibbs

The First Taste?

Ice Cream and Coffee are absolutely two of my favorites, but not necessarily together. Is there anything better than the first lick of an ice cream cone or the first sip of coffee?

The first of everything in life is the best. Your first love, your first computer, your first car, your first job, your first house, your first management position.

The more you eat the ice cream cone and the more coffee you drink the less enjoyment there is. The first taste of anything is always better than the second and so on.

Call it the “The Point of Diminishing Return of Satisfaction.” (I made that up; I make lots of things up, just work with me.)

Used cars are no different. Think of the first day that you own a used car as if it’s the first taste of coffee or ice cream. It tastes a lot better if you sell it on day one than it does on day 61.

The longer your coffee sits the colder it gets. Not so good. The longer ice cream sits the more it melts and the less ice cream you get to enjoy. The longer a used car sits the less you make on it. The less you make on it the less enjoyment you get to have.

But even if the coffee stayed warm, and the ice cream stayed cold, your second taste of either is never as good as the first.

You’re going to hear a lot about the “Life Cycle” of your used cars this year. My definition of “Life Cycle” would be how long you allow a car to hang around and more importantly, what elements impact and extend your “Life Cycle?”

The management of “Life Cycle” is the most important element of maximizing the potential of your used car department. (Up Your Gross Software Coming Soon!)

Doesn’t it stand to reason that if you can shorten the Life Cycle of your used cars that you’re going to enjoy them a whole lot more and make more money?

Dealers and used car managers are always looking for that magic bullet. We all know there is no magic bullet, but if there was one it would be called the bullet of “Life Cycle Management.”

Poor “Life Cycle” management impacts:

A. Slow Turn
B. Aging
C. Volume
D. Gross
E. Poor ROI
F. Attitudes
G. Ability to Trade at the Door
H. Future Acquisitions

When you shorten the life cycle of your used cars, you make more gross, sell more used cars, your coffee is warm, your ice cream is cold and the taste doesn’t get old.

That’s all I’m gonna say, Tommy Gibbs

Are You Showing Up?

The Philadelphia Eagles crushed the Minnesota Vikings in the NFC playoff game on Sunday, January 21, 2018. The Vikings showed up for the first quarter, but left town in the second and weren’t seen or heard from again.

On Monday I was chatting with a dealer who happens to be a big Vikings fan and the phrase the dealer used was that the Vikings “didn’t show up.”

That got me to thinking; do you or some of your team members sometimes fail to “show up?” I don’t mean in the physical sense, but I do mean in the “have your head in the game” sense.

Football is a tough game. The automobile business is a tough game. If you’re going to have sustained success you have got to show up every day and “get after it.”

Getting after it means guarding the processes.
Getting after it means creating high energy.
Getting after it means holding yourself and others accountable.
Getting after it means removing those obstacles that keep your team from reaching their goals.
Getting after it means making those tough personnel decisions that you know you need to make.
Getting after it means amping up your training to be the best you can be.
Getting after it means paying attention to what’s going on around you.
Getting after it means not ignoring “the elephant” in the room.

Don’t be a Viking. Get your head in the game. Show up. That’s all I’m gonna say, Tommy Gibbs

Are You #43?

Even if you’re not a football fan, it’s a good bet that by now you’ve seen the dramatic catch by #14, Stefon Diggs, of the Minnesota Vikings and the missed tackle by # 43, Marcus Williams, of the New Orleans Saints in the last 10 seconds of the NFL playoff game on Sunday, January 14, 2018

A lot of people have analyzed the missed tackle and put the spin on it that he didn’t want to take a chance on a pass interference call.

I played defensive safety in college. The number one rule is don’t let anyone get behind you. The number two rule is to make the tackle and/or take the penalty. This ain’t rocket science.

Let me give you an old-school rule. Don’t duck your head. When you duck your head, you might miss your target, and even worse you might break your neck.

This is no different than the business you’re in. All the computers, all the software, all the social media and all the bells and whistles you can muster are null and void if you can’t block and tackle. Just as in football, you have to stay focused on the fundamentals of the game or it will eventually catch up with you.

People often feel training is redundant. It isn’t redundant until you’re perfect. You’re not perfect.

Here’s another little spin for you. As a leader, you should always be focused on blocking. Blocking, as in removing obstacles that get in the way of your team performing to the best of their ability.

Every day when you hit the hole (front door) you should be looking for something to knock out of the way. The more obstacles you move, the more you give your team a chance to win.

Rules for the day:

1. Don’t duck your head. (As in ignoring the issues.)
2. Make the tackle. (Stick with the fundamentals.)
3. Remove the obstacles. (That’s what leaders do.)
4. Don’t be #43.

That’s all I’m gonna say, Tommy Gibbs

Do You Have The Numbers Yet?

By now you have seen your December statement, which of course includes your year-to-date numbers. So, rock star, how do they look? I’m thinking you’ve had one of three reactions to them:

1. They look great. Could have even been better, but a little pat on the back is in order.

2. They are ok. Kind of pleased, but you know you could have done a lot better.

3. Not happy at all. What a wasted year. You are super disappointed and know you have to do better.

While you have that statement out, take a look and see if you have any used units over 60 days old. Even one is too many.

That being said, the odds are pretty good that you’ve not made as much money as you think you have, and if by some chance you lost money for the year, you’ve lost a lot more than you thought you did.

I hope the reasons are obvious, but if they aren’t, let me enlighten you a bit.

If you had to liquidate your used car inventory today, your bottom line would take a real hit. The fake news is you think you’ve made money. The real news is you haven’t made any, or at least not as much as you thought.

If you’re the owner or GM, keep in mind someone’s paycheck has been impacted in a positive way from that stuff that’s been sitting. The company’s paycheck, not so much.

A simple New Year’s resolution for you is to fix it. Fixing it doesn’t mean dumping stuff at 60 days old. Fixing it is understanding there’s a retail buyer out there at some number. Retailing early at some price is far better than dumping or retailing late.

I’ve been doing this a long time and for the life of me, I don’t understand the mindset of keeping aged inventory. I’m sure you have a great excuse for doing so. Keep in mind, there’s not a unit in your aged inventory that you couldn’t have already retailed at some number. Think retail, retail, retail.

The choices you have are to keep on doing what you’re doing or do something that will dramatically improve what you’re looking at this time next year. Enjoy your numbers. That’s all I’m gonna say, Tommy Gibbs

Are You Running?

Successful dealers have a different view, a different attitude, a different swagger about them and a different way of managing accountability.

It’s always a good feeling when we are kicking off a new year.

This time of the year sort of reminds me of spring training for major league baseball. Optimism is running high, as it should be, but in a few months, reality will start to set in.

The stronger teams will have started to pull away and the weaker teams will be asking themselves, “What happened, where did we go wrong?”

A number of my articles recently have been prodding you to get ready for the New Year. Here are a few thoughts to get you moving a little faster toward your goals and some suggestions for changes you might need to make.

Observe-Spend a Saturday just sitting in the tower observing. Say nothing. Take notes. Of course, you’re not going to see the true picture, but you will see enough to give you an idea of where the loopholes are.

Ask Questions-Meet with your GSM/Sales Manager and ask him/her to review with you what the selling process is. Better yet, prior to the meeting, ask them to write out the selling process to bring to your meeting. Make this a regularly scheduled activity.

Get After Them-Tell them what you observed and how far off track they are compared to the list and the discussion you just had. Of course, first, tell them all the things you observed that they are doing well. Do your best to end the meeting on a positive note and create a plan of action to improve. That last sentence would seem to be common sense and something I shouldn’t have to say. I said it because we all need to be reminded of what’s important once in a while.

Re-Commit-Get them re-committed to what they say they are supposed to be doing. Reviewing the processes is the single most effective way to do this. A lot of people talk-the-talk, but very few walk-the-walk.

Re-Deploy-get them on a mission to get back on track through renewed focus, training, disciplines and processes. Get a commitment for the training they intend to do with the sales force over the next 30 days. Training requires an investment of money. Invest some money.

Create Accountability-create a daily checklist to review what they are doing as compared to what they said they were going to do. Continue to observe and whenever it’s not right go back to step one and start over again. Your number one job is to “Guard the Processes,” and therefore eliminate evaporation.

Raising expectations is in part about raising your level of intensity and creating accountability within the team. Human nature being what it is, people will do what little they have to do to get by.

I hope you’re off and running. That’s all I’m gonna say, Tommy Gibbs

Is Your Forecast Done?

I’m betting you’ve either got a lot of numbers already laid out on a spreadsheet for 2018 or you’re scrambling to get it done in the next few days.

I’m a big proponent of forecasting. It lays out a map as to where we are going. Although there are detours along the way it gives us a chance to get to our final destination.

I’m an even bigger proponent of department head meetings. I believe your job as a leader should be to teach, educate, coach and encourage your team to seek ways to improve your operations.

I tend to take a common sense approach to most things in life and I approach forecasting and monthly management meetings no differently.

Dealers, or any business for that matter, tend to forecast based on what they would like to do in the upcoming year. Often it’s based on statements such as “we need to increase our sales by 10%” and/or “we need to reduce expenses by 15%.”

Saying you want to increase your business by 10% sounds good, but if you don’t have a plan to get there what good is it? I’ve always been baffled by annual forecasting.

One of two things usually happens:

1. Someone is overly optimistic and/or they are blowing smoke up someone’s butt.

2. Someone serves up a low ball because they don’t want the pressure of hitting an unrealistic number.

Although dealers want to see an improvement in the next year’s numbers, what they really want is a number they can take to the bank.

In order to do a realistic forecast, you have to take into account staffing, inventory, and market conditions. How can anyone do a forecast and predict what those three pieces of the equation are going to look like 3, 6 or 12 months down the road?

I’m not saying you shouldn’t do an annual forecast, but doesn’t it make more sense to adjust that forecast monthly or quarterly based on those three fundamental elements?

Because most leaders don’t make those adjustments it frustrates the management team and defeats whatever good intentions there might have been. Everyone eventually loses respect and confidence in any type of forecasting and concludes “Why bother?”

While it makes good sense to do a monthly or quarterly review of the actual numbers, managers become disillusioned with these reviews in that they become a “beat up” session rather than trying to figure out what went wrong and how “we” can fix it.

People know when they didn’t perform. What they want from upper management is leadership that gives well defined ideas and direction on how to “fix it” or make it better.

Using more common sense with your forecasting and monthly management meetings will help you grow a solid organization that generates consistent profits and sustained growth.
That’s all I’m gonna say, Tommy Gibbs