When the dealership grows the brain must change

Whether you want to open a new branch, add more spare part inventory or variety, expand the workshop, or create a new merchandising area, you will surely face different types of problems.

Whether you want to open a new branch, add more spare part inventory or variety, expand the workshop, or create a new merchandising area, you will surely face different types of problems.

Not only will the dealership begin to manage a much greater number of transactions, but you may also need to address new requirements such as dealer quality certification, staff training and possible requirements from manufacturers.

To tackle these issues, oftentimes the brain of the dealer (i.e., the brain of owners and managers) needs to change.

Consider this new way of thinking:

• From feeling success to measuring results. Previously the owner knew the company was doing well mainly because their lifestyle improved. Now it is important to understand exactly how much money the business makes, and how. The dealership’s success must be measurable.
   
• From evaluating people to evaluating performance. Go from having an idea or impression of how people are performing, to having effective performance measurements based on objective data.
   
• From improvising to planning. At its inception the company always lived on the move, focusing on day-to-day issues. With growth this is not possible. Managers must find the time to stand back from the daily routine to look at the medium term, develop plans and make decisions accordingly.
   
• From acting intuitively to managing by objectives. Intuition must be placed in the service of plans and objectives that dealership management outlines, so that it is guided by and works in conjunction with these goals.
   
• From informal to formal staff organization. Start designing each role with clear requirements and profiles; organize what specific tasks each person in the organization must perform.
   
• From few written records to reliable information. Managers must have reliable information in a timely manner, instead of having to look through drawers or remembering key figures. For example, many times a manager realizes a product is out of stock when they tour the warehouse. This creates major problems when the organization grows. Ideally dealers will have a management system to provide timely information.