How to Properly Assess and Reinvent Your Retail Dealership
By Ted Ings, Executive Director
To reinvent your dealership in the age of Covid-19 you will need to make changes, and if you have any doubts about this, I would like you to consider the words of the great W. Edwards Deming:
“It is not necessary to change. Survival is not mandatory.”
The 20th Century was the age of industry, the 21st Century is the age of information technology, and it is service industries that drive the economy of our time. The rise of technology has changed the way we do business, not just because it has given us new tools, but because it has changed the way the consumer does business. And it's coming into clear focus right now. The modern consumer has higher expectations, and you need to meet those expectations if you want to remain viable as a retail business and provide a safe environment for employees and consumers.
What Better Time Than Now?
Things will likely take a lot longer than we expect right now before we can return to "normal" - if there will be such a thing again. To move forward as a retailer, you will need to assess what you have, in order to identify what you need. Start by critically examining what your current organization looks like and asking "can I do more with less?"
Moving Forward
Think of it as a giant puzzle that you are trying to put together. You may well have all the pieces on the table but they are just not in the correct places in this new era. Or there may still be a few missing pieces that you need to go and look for. You need to decide where you are going and how you intend to get there.
“It is not the strongest or the most intelligent who will survive but those who can best manage change.” - Charles Darwin
The first step in the process is the most basic, yet it is vitally important; you need to make a conscious decision to change.
Successful change is not a passive process, it is all about taking control of the wheel and driving the car.
Once you have decided on a course of action, you need to set goals, and your goals need to be S.M.A.R.T, i.e. specific, measurable, actionable, responsible, and time-based. Include dates, your vision, what you want your dealership to look like once the process is complete, and the impact that this will have on your business.
This will enable you to create a comprehensive action plan that will be your blueprint for change. Make sure you include all the steps you intend to take and determine the people and organizations that will be involved.
During this process, it is important to assess your entire dealership structure, from top to bottom. Take a close look at yourself, your team, your processes, your technology, and your facilities. Decide who and what needs to be improved, altered, or replaced.
Know Yourself
Successful change in an organization works from the top down. If you don’t have confidence in what you are trying to create then your employees won’t buy into the process. Before you can roll out your plan you need to be on the right road.
You cannot understand others until you understand yourself. Asses your management style and take a close look at your strengths and weaknesses.
How are you going to handle the challenges and react to your employee's reactions? Not everyone responds well to change and you need to have a plan to handle pushback and criticism from your employees. But these are not reasons to put a stop to the entire process, they are just consequences that you need to be prepared for. Remember you are going to have to champion your cause, encourage buy-in, and offer support.
Know Your People
“You can’t build an adaptable organization without adaptable people – and individuals change only when they have to, or when they want to.” - Gary Hamel
Your people are the most important part of your dealership. You can have the best premises and the latest technology but if you don’t have the right people, it will mean nothing. To reinvent, you need to know and understand the people that are working alongside you. This includes understanding their goals, strengths, personalities, and capabilities.
WHO NEEDS TRAINING AT YOUR DEALERSHIP?
In moving forward you'll need to identify who to keep, in what positions, who is flexible and open to change, who is going to come forward with ideas and recommendations, and who is going to resist the process, and how you are going to handle them.
You will have to make some tough decisions, there will be people who will not be able to adapt and you will have to accept that and deal with it.
The important thing is that you need to get your team to support your decision and you can’t afford to have anyone undermining your plans.
Assess Your Processes
Once you have assessed your people, you need to assess your processes. Take a close look at how each department operates and at your written policies and procedures.
You'll need to adapt to "touchless" and "contactless" with a clearly-documented digital sales processes, financial services process, and service process. If you haven't done this, then getting them in place has to be a priority.
Look at every process critically. Draw flow diagrams and do internal audits to ensure that the process at the dealership, matches the one on paper. If not, decide where the changes need to be made.
Your processes need to be customer-focused so that you can consistently meet the needs and expectations of highly demanding and well-informed customers. Make sure that what you are doing is proactive and not reactive. If your processes are reactive, you will always be playing catch-up. Make the necessary changes to your process to improve not only your customer service but also your planning and training.
Assess your Technology and Premises
We live in the age of technology, so make sure that your technology is up-to-date. Does your equipment hinder or enhance your employ’s ability to function effectively and efficiently in this new age? What needs to be upgraded and what needs to be replaced?
Start with your digital presence and tools to the physical dealership. Are you taking advantage of all the solutions available? There are a lot of special offers from great suppliers right now, so be sure you're taking advantage of these solutions.
WHO IS TED INGS?
What about your facility? Look at it through the lens of the consumer - making sure it is safe in accordance with CDC guidelines and compliant. You only get one opportunity to make a first impression. Your reputation is riding on it. Cast a critical eye because the look of your dealership says a lot about you, and customers will judge you on what they see.
Reinvent
Finally, you are ready to implement your vision. There will be concerns, pushback from staff and resistance to change, it’s normal. You can lessen the shock by first introducing your plan to your key managers. Let them know what you want to do and why you are doing it. Ask them for feedback. Once your management team is on board, get them to sell your vision to their departments. Once again, ask for feedback and listen to their suggestions. The more you involve your employees in the process of change, the easier it will be for them to accept it.
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