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performance groupsDriving your business forward through an action learning environment
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overview
the sewells group approach
a participant’s perspective
more information
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index
Here’s the benefit whether you’re an OEM or a dealership:
As an OEM, we’ll provide a framework in which your franchised dealers are able to review the performance of their businesses and identify areas for improvement. Performance Groups are best utilised by OEM’s to increase the level of support and coaching to franchisees, leading to improved business performance, greater market share and motivated franchisees.
As a Dealership, this is a framework in which you can review current practices within your dealership or dealership group, asking yourself ‘why do we do this?’ Through the group facilitator and your co-participants, you will understand how to improve processes, practices and skill sets required to implement reforms which ultimately lead to improved business performance, and making your investment in the franchise a rewarding business venture.
V2/2012
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Dear Colleagues,
Here’s why you should invest in Performance Groups.
The automotive retail environment can be a challenging one in which to succeed. Yet experience shows us that those business leaders who are focused and who truly understand the drivers of dealership performance rise to the top.
Our Performance Groups are designed to equip participants with the knowledge and skills required to succeed; challenging them in a positive peer-group environment to further improve business results.
Our unique approach sees the development of business management skills as a process across all departments. We focus on identifying the ‘causes’ of business success and strive for a clear understanding of automotive retail ‘drivers’. This results in clearly articulated goals, in an environment that encourages learning and understanding of the inter-relationship between process, people, assets and business systems. The environment of common opportunity encourages open communication and trust where performance levels can be pushed and personal and professional growth can be stimulated.
Performance Groups are an incredibly effective forum for driving performance, and if you haven’t experienced that drive in your business, here’s our invitation for you to get on board. Contact one of our global offices included in this document or connect with me direct at [email protected].
Paddy O’BrienChairman of Sewells Group
overview
What are Performance Groups and exposure to the elusive how to factor.
At the core of Sewells Groups dealer focused philosophy are world class Performance Groups.
Peer-group forums where dealers are able to identify the financial drivers, processes and practices that lead to superior business results.
Facilitated by a senior Sewells Group Consultant, leading practices are identified through the use of industry benchmarks
Dealership processes are assessed and analysed in an action-learning environment in order to understand high levels of workplace performance.
Sessions are designed to be engaging and interactive through the discussion of real life problems and opportunities.
Participants are encouraged to openly exchange and articulate ideas, which will assist in enhancing performance and identifying untapped sources of additional profit.
Groups are typically made up of 10 to 12 Dealer Principals / General Managers of similar sized businesses, sometimes representing multiple franchises and ideally non-competing in nature
Sessions are held over one or two days, usually including a dinner and dealership facilities tour, subject to location and logistics.
The dynamic of inviting fellow participants into one’s own dealership provides a unique opportunity to network, form fellowships and interact in the most productive way.
The intensity of the analysis and the exposure to the elusive ‘how to’ factor combined with the opportunity to strategise at a high level, yielding almost immediate results.
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performance groupsSummary of Benefits
These groups create a positive pressure dynamic which serves as motivation to achieve constructive outcomes. The informed provide guidance for those seeking answers and the progress gained by the collective serves to inspire and build momentum for everyone.
© The Sewells Group Performance Model (MRA) is the intellectual property of Sewells Group and is only available through direct services. All rights reserved
facilitated action learning
Made possible by using participants own data and by articulating their own unique
circumstances will equip participants with the know-how and structure to enable
assessment of their own performance.
application of a tried and tested
performance model
Sewells Group’s automotive retail performance model
MRA© encourages participants to apply it to
their own business leading to better decisions lead to better
results.
structured performance
analYsis
Within each performance group, dealership analysis
takes place against a structured framework,
enabling participants to lay the foundation for implementing reforms.
powerful peer dYnamics
To help drive positive change, participants are able to
connect with others who have found themselves in the same situation and who are able to provide real-world guidance.
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the sewells group approachWhat differentiates the Sewells Group approach?
The focus on a performance model versus a focus on benchmarksWhile benchmarks form a useful indicator of comparative performance and are the driver of competitive group offerings, they are simply the conduit by which we monitor results.
We are focused on the drivers of performance and in getting participants to understand and apply them. In this regard we have a unique way of identifying the drivers that really count in enhancing results. This includes analysing results beyond the income statement and making specific reference to the balance sheet and the importance of activity and asset management.
A belief that cause deserves more scrutiny than outcomes We believe that outcomes are indicators of strategic decision making and that managers/leaders need to understand the
causes behind the results. We endeavour to bring understanding and focus to these dynamics.
An emphasis on education over comparison Our approach is developmental in nature and we seek to ‘equip’ rather than ‘inform’. In practice this means teaching people how to apply the Sewells Group Performance Model (MRA), how to affect the key drivers and how to interpret
results at a strategic level.
The notion of strategy versus keeping scoreThe Sewells Group approach is about the application of strategic thinking, not simply a mechanism for comparing results or keeping score. We prioritise action planning and are passionate about making a difference. We want every participant to be better informed the next time we meet.
a participant’s perspective
While members may experience the group environment in slightly different ways, in our experience they are likely to mention the following highlights of the Sewells Group approach:
These are without doubt the most powerful learning and performance enhancement forums available to retail dealers.
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1. Exposure to, and starting to master the key financial ratios and measurements that create excellent results.
2. Participation in a regular forum that explains the ‘causes’ of business performance and link the operational processes which drive these ratios and results.
3. Benefits of progressive action planning and positive peer pressure, causing participants to not only see that best practice is achievable, but also gain positive commitment to improving quarter on quarter.
4. Personal and professional growth as management education is blended together with practical performance improvement.
5. Gain confidence by doing and achieving whilst working with like-minded professionals
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our dealer performance management model
Sewells specialises in enhancing the performance of Automotive Dealers through an integrated approach, applying the products and services in this framework.
Outsourced Dealer Development Services
Delivering a business function or functions to a client, thus providing specialist or unique expertise whilst reducing head count and other business implementation costs.
integrated solutions
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a case in pointThe combination of facilitated learning, structured performance assessment and positive peer dynamics can certainly pay dividends.
Having worked with numerous Performance Groups over the years, the greatest reward comes when performance is positively impacted. Working with a group of dealers in conjunction with an OEM, for example when fixed operations contribution improves by 85% over a period of 12 months or when service department gross profit shifts upwards by 30% over the period of a financial quarter, we know we are making a difference*.
Whether it’s focusing on improving gross profit per employee from $7,500 to $9,000 or exploring practical ways to increase hours per repair order from 1.7 to 1.9, we find it is the small things that make a big difference to the business. Our experienced facilitators help participants understand what causes these results and find solutions that will work in their dealerships.
Performance Groups are offered as a means of improving automotive retail performance. While primarily focusing on financial outcomes, emphasis will also be placed on strategic and operation enablers that drive success.
These include focusing in one way or another on the broad spectrum of the dealership. Our approach across these areas includes:
Dealership Operations - New & Used Vehicle SalesRetail sales drive the automotive business as we know it. The generation of throughput consumes dealers and manufacturers alike, providing a critical mass which the business feeds off in a number of ways. The balance however is a fine one, under the guise of market share, there is the need to maximize sales numbers, at the same time there is a desperate need to maximize gross profit (despite the fact that margins are perilously thin) and finally there is the need to service customers to the highest possible level in a bid to drive loyalty and advocacy.
All this is driven by process, people and product. The Sewells Group approach focuses on all three, ensuring that solid repeatable processes are in place, that frontline staff are trained and suited to the role that they perform and that product benefits are communicated in such a way as to engage and excite all consumers.
Dealership Operations – Parts & ServiceFixed operations, by its very nature, are measurable and our scalable returns model ensures sustainable returns through examination and action at a business and departmental level. Our track record in helping dealers generate better returns from parts and service is without peer. This success in developing fixed operations (service or parts) also comes from our singular focus on the measurable improvement of the individual’s competence and the business results. The service department lends itself to this kind of approach, by virtue of the process structures and levels of control required to run a successful service department.
Financial ManagementOur approach to retail finance is underpinned by the Sewells Group Performance Model (MRA). This multi-tiered model focuses on margin and asset management, establishing clear performance parameters for generating a return on investment. Our model is about driving balance throughout the organisation, providing management teams with a clear understanding of what it takes to be successful and assisting them to put actions in place that make a real difference to the bottom line. The linking of business processes and retail business strategy to the management of assets; resources and planning is what produces rich learning experiences for those who participate in our Performance Groups.
*actual results from participating dealer groups
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disclaimer: the information in this brochure is correct at the time of production. sewells group reserves the right to make changes at its sole discretion.
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