Almost all new car franchised dealerships post daily new and used unit sales somewhere in the dealership. Some dealerships place a board in the conference room or in the Sales Manager’s office. Some dealerships track units, gross profit, F&I penetration, Credit Life sales, Extended Service Contracts, Gap Insurance and many other items that are sold through the F&I Department. In some dealerships, they assign points to each item that is posted. In addition, the top three sales persons that have the best overall score receive an extra bonus for their performance for the month.
Very few dealerships track and post the performance of the productive staff in their fixed operations. I have found that the few that do track and post the staffs’ performance, have some of the most productive employees. In these dealerships, training is much less of an issue.
I know of a very profitable an productive dealership that has posted the performance of each productive employee in their Service and Parts Departments for a number of years and the results has made them the number one dealer in their market for that particular franchise and their CSI is above market average.
Here is what they do: the results are posted early in the morning and include the numbers from the day before and for the pay period. For the advisors, they show the number of repair orders, customer and warranty, total sales by repair order type and gross profit by repair order type. The latest CSI is posted for the dealership and advisor. The dealership also includes the individual’s objective for the pay period and percent of accomplishment. Each Lateral Support Group is listed and their total hours produced for the previous day and for the pay period. The dealership also includes the Lateral Support Group’s objective for the pay period and percent of accomplishment. The individual technician’s performance on that Lateral Support Group is next, with the hours they produced the day before and for the pay period. The dealership also includes the individual’s objective for the pay period and percent of accomplishment. The clock hours available for the Lateral Support Groups and for the individual techs are also posted. The Parts Department counter staff that waits on over the counter customers and the staff that waits on the technicians are also included. Their sales for the previous day and for the pay period are posted. The dealership also includes the individual’s objective for the pay period and percent of accomplishment.
Many times when the subject of posting the individual performance of the Fixed Operations’ staff is brought up, there is a lot of resistance from management. The most common excuse is “we give them their individual performance privately” This is better than nothing, but when the individuals can see what their fellow employee is doing, most of the time they will try harder to improve. The next excuse is “I do not want to be criticized for the way work is distributed in the shop”.
To improve performance in the Parts and Service Departments, everyone should be paid primarily on the hours produced. This includes the parts counter people that wait on the technicians, even though their pay still comes out of the parts department. With everyone focused on producing hours in the Service Department, the overall performance improves.