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Achieving Excellence at Your Dealership
For the past 22 years…
What does this mean to me?
How can I use this idea?
What can I do right away?
Organization Effectiveness Audit
Page 2Be “Brutally Honest”
Scale of 1 – 10
The Four – I’s
• Ignorance• Inflexibility• Indifference• Inconsistency
2
How to avoid the Four I’s
• Aggressive external market focus.
• Ridiculously high level of customer focus.
• Keep the “Main Things” the main things.
• Bullish on knowledge sharing and learning.
• Teamwork / communication is mandatory – not optional.
• Passion and commitment at all levels.
• Foster a healthy paranoia.
• Revel in change.
3
1 - 10
The Pattern of Business Success
(T + C + ECF) x DE = Success
3
Talent
Talent + Culture
Cecil Van Tuyl
“It is all about people, people, people. You can kid yourself about a lot of things in your business, but at the end of the day it will always come down to people.”
The level of highly satisfied and engaged EMPLOYEES in your business.
The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…
4
Key Drivers of Customer Satisfaction and Loyalty
Financial Performance
Quality P&S&
Customer Relationship
EmployeeSatisfaction
Empowerment High Standards
Long-termOrientation
Enthusiasm, Commitment,
Respect
Training &Development
Fair Compensatio
n
CR= 104.12% increase in profits
CR= .404
CR=.334
CR=.277
CR=.275CR=.249
CR=.280 Coaching
CR=.285
CR=.371
CR=.365
CR=.191
CR=.247
TolerateNothing
Less
From: Practice What You Preach by Maister
Global study:16 countries529 companies15,589 respondents
4
Workshop Page 41 - 10
Customer satisfaction drives customer loyalty… and customer loyalty drives profitability
100%
90
80
70
60
50
40
30
20
Extremely Dissatisfie
d
SomewhatDissatisfie
d
SlightlyDissatisfie
dSatisfied
Very Satisfied
Zone of Defection
Zone of Indifferenc
e
Zone of Affection
Loyalt
y
Customer Satisfaction
Terrorist
Evangelist
A 5% increase in loyalty among your best customers…
Can produce a profit increase of 25% – 85%
I hate you
I don’t care about you
I love you
NITB
Actively disengaged employees can reduce revenues by up to 22%, while highly satisfied and engaged
employees can drive profits up by as much as a 189%
Culture = Cash
What do engaged employees look like?
1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization.
Page 51 - 10
5
The Goal: Become a Category of ONE
Key Competitive Advantages
Products People Process
Trusted Advisor
Perceived Value
LOW / NO
MEDIUM
TRUSTED ADVISOR
John Spence Team Model
• D• M• C• C• M• D
irection – vivid, clear, inspiring --- shared
easurements – specific, observable, focused
ompetence – very good at what they do
ommunication – open, honest, courageous
utual Accountability – all team members
iscipline – do this every day
Extreme Customer Focus
Web of Value: VOC + MOT + WOM
VOC
How Many of these do you employ?
Moments Of Truth
Moments Of Truth
MOT Practice Round
Dry CleanerHair SalonTailorPlumber
Workshop: MOT
9
43% - 74% of purchasing decision = WOM
WOM = Your BEST form of advertising!
78.9%23.4%
You MUST have a Referral PROCESS
Identify Ideal
Customer
ReferIdeal
Customer
From John Jantsch: The Referral Engine
The Evergreen Project
10 year study of 160 top companies
40 distinct industries
200 management practices
Winners, climbers, tumblers, losers
Winners had an average Total Return to Shareholders of 945%...
The Losers only averaged a TRS of 62%
From: What (really) Works by Joyce, Nohria, Roberson 6
The Four Primary Practices:
1. A sharply focused, clearly communicated and well-understood strategy for growth.
2. Flawless operational execution that consistently delivers the value proposition.
3. A performance-oriented culture that does not tolerate mediocrity.
4. A fast, flexible, flat organization that reduces bureaucracy and simplifies work.
From: What (really) Works by Joyce, Nohria, Roberson 6
The Secondary Management Practices:
• Talent = find and keep the best people.• Key leaders show commitment and
enthusiasm for the business.• Embrace strategic innovation.• Master the power of partnerships.
From: What (really) Works by Joyce, Nohria, Roberson
Score yourself on the 1–10 scale for all eight practices on page 6
Non-negotiable Standards + Fanatical Discipline
Very Clear Expectations Specific and Measurable GoalsNecessary Systems & SupportRobust CommunicationConsistent Tracking of
PerformanceRegular Performance ReviewsRefuse to Tolerate mediocrity
Page 71 - 10
If you have any questions at all please do not hesitate to send a note or call. My email address is: [email protected]
My twitter address is: @awesomelysimplePlease feel free to “friend” me on FB
Also, you might find value in the ideas I share in my blog. You can sign up for it at:www.blog.johnspence.com
Lastly, these slides have already been uploaded to:
www.slideshare.net/johnspence
Thank You
