!!!!!!!!!!

!!!!!!!!!!

F&I Fundamentals: Unlocking the true potential

of your Finance Department

By: Stephanie "Big Red" Reid

!

!!!!!!

This piece of writing is dedicated to Nadia, Talia, Makana and Isabella. Without you, I would have never pushed as hard as I did to get to where I

was going. I love you.!~Mom

Photo By: Robbie Edwards Photography

To my Hevers,!You are my bestie and the reason I didn't quit. No matter how many bad days I had, you always lifted me up and had my back.

You my ninja.!Love you sister.!

!!About Red

Taken From My LinkedIn Blog Stephanie "Big Red" Reid

!I am Going

to be Legend

! Yes, I left out the 'a' in the title intentionally. I was inspired by the moto material Legend by Muscle Prodigy while writing this. Listen to it on YouTube (I recommend opening in a new tab and listening while reading this). !

So, the above picture was taken three days after I had the right lobe of my thyroid removed. As you can see, I was in a hotel room. I was offered a new position as a finance manager the same day I found out that I may have thyroid cancer. There was NO WAY I was going to let a lump of tissue stand in my way of what I had worked so hard to achieve. Let me take you back before we move forward. ! I fell in love with the auto industry after my first introduction to it in 2010. By 2011, I was a sponge for knowledge. If I was not with a customer, data mining, completing my own email, direct mail, and telephone campaigns, I was training or researching. Not only franchise training, but sales and marketing training as well. Literally, from bell to bell I kept my hustle strong. When I was ready to ascend through the ranks, I met resistance, even though I had

modeled my dedication to personal development and was a proven performer. I am not so much of a take-it-in-stride type of woman. Nice girls (used here in the context of a Stepford wife form. Women are seen, not heard. Not a b***h context, but in a context of taking your own future in your hands) don't get the corner office. I do not believe in finding a window when one door closes.... I believe in building my own door. Nothing has even been given to me or has been even the slightest bit easy. !!! So what did I do to break into the F&I department you ask? I went to work as a Franchise Account Manager for Westlake Financial. As many of you know, their "niche" is primarily deep subprime deals that are characterized by a list of stips and high "discounts" to the dealer in order to roll a deal that otherwise would have to be sent down the street to the local independent competition. I was the top new hire in dealer acquisition having 25% of total new hire, new dealer acquisition. Of those 75% of my dealers were sending at least 10 looks per month (goal was 5), books were a different story. Why is this even relevant? I was able to get the best finance admin training EVER. I worked every deal that came across my desk. I structured and restructered, looked on the dealer's website to see if there was a vehicle that would score out better for this particular customer based on their customer score, vehicle class, and rehashed money scenarios. Tell me your rep does this. When the company started costing me money, my training time was over. ! It took a year getting my resume out there before I was finally picked up by the Ethos Group out of Texas. Wonderful company! Even after I was recruited, the hiring process was about 4-5 months long. I called my rep daily until I was placed in a dealership. So fast forward back to the cancer part of my life. ! A few days before my first interview for the F&I position I had a 3 inch needle jammed and swirled around in my neck. They had rip pieces of tissue out of a nodule that was found in my thyroid to perform a biopsy. I looked like I had a hickey so I threw on a high neck blouse and rocked my interview. Moments after I was offered the position, my doctor called to inform me that it

was suspicious of thyroid cancer and needed to be removed. I set up the surgery for the following Friday so I could pack up my house and move. ! I had not made mention of the issue to my employer because I never really thought it would come back as cancer. I spent Thursday packing, surgery was Friday and I asked for a Tuesday start date, because I had to have my vacuum pack tube removed from my neck on a Monday. I drove 3 hours that night from home to St. Louis with no pain meds so that I could be early (First in, last out) and kill my first day. I threw on a scarf along with my heels and got to work. Three days later my doctor confirmed that it was cancer. I was going to need the other thyroid lobe removed as well as go through radiation. Crap.I had my tubes tied, my neck slit open and was ready to come back to work on Monday, but thankfully they told me I was crazy and let me have a few extra days to recover. When I hustle my hustle is 100%. I decided after my performance and strength began to dwindle during treatment that I needed to move back to be around family to get my health back. I am glad that I did though as I would have otherwise not happened upon this opportunity. ! I have a passion for training and development. While in sales, I wrote a 12 week curriculum that included leadership guidance. In finance I wrote a 5 week program that included getting your admin tight, developing your finance team into leaders, tweaking the sales sector of F&I and the development of lender relations. Larry Feldman, the president of Career Changers USA found me through LinkedIn and I asked if he had any opening available on his team. We communicated a few times and set up a meet. Keep in mind I still had not completed radiation. ! I scheduled the radioactive dose so that I would have a few days for recovery and to be safe to be around the general public again. Four days after treatment I drove 4 hours to meet with Larry to tackle this opportunity and take it. Larry blew me away. I have never met someone that can work circles around me, be a gravitational force that speaks in such a way that you just want to listen, and a true industry giant. I am looking forward to accelerate this opportunity into overdrive and become one step closer to being an industry legend. Ask yourself a few questions after reading all of this..... !!

!WILL SHE PREFORM FOR MY

BUSINESS? HAS SHE EARNED HER WORTH HERE?

!I WILL NEVER EXPECT ANYTHING

LESS OF MYSELF, MY WORK ETHIC, AND MY PURSUIT OF

SUCCESS WILL NEVER BE WATERED DOWN NO MATTER MY STATION,

TITLE OR WHERE I AM. ! !

~Red !

!!!

Chapter 1: You have not arrived !

Congratulations! You have finally made it to the F&I office! Wether this has been an advancement from the sales floor or you find yourself in a career conversion, welcome to servant leadership! What, you thought you had arrived and now there is nothing left to do but reap the rewards of a desk job? Sorry, far from it there Haus. I have seen this position be rewarded to many under qualified individuals. It never fails that the majority of the employees that hold the title think that this is their meal ticket. Basically they are those that feel all they need to do now is sit back and collect a paycheck. This lackadaisical approach to the foundational leadership role is where most dealer models begin to fail. The approach of "Well, Bob has been here for 5 years, he is next in line" approach is well, a load of crap. Other than the sales staff, business managers are the most important people on the sales team. ! Put it in the back of your mind that it is the department with the lowest overhead in the whole dealership. Throw away the fact that the it is the only way that a customer can legally walk away with a vehicle. I don't even want you to think about the fact that it is the only way to provide your customer with every ownership need that they may come across. Thanks Captain Obvious, great job reading the job description. Where most F&I managers (and their "leaders") fail in the industry is not taking the time to develop their gray area; all of the other "stuff" that is required to run an effective department. Leadership development seems to be like the rickets of the automotive industry, with just a little bit of sunlight anyone can flourish. ! This is why the entire first day of this workshop is dedicated specifically to the development of you as a leader. It is the determinate factor of your future success as you ascend not only the pay grades, but the gradients of team development.

Servant Leadership ! !! As an F&I Manager, you have no authority. Even though you do not have legislative power over anyone, your leadership style is already underway and lack thereof can be felt on the floor. ! There is a degree of positional based leadership as a Business Manager, but for the most part it is a servant leadership. The following passage is a snippet from Gosling et al, A Review of Leadership Theory and Competency Framework. ! !!!

! 4.4 Leaders and Followers!! The models discussed so far have dwelt on the leader as some frontal figure who stands out from the rest as being somehow different and “leading” the rest of the people. The discussion now moves to recognition of the importance of the leaders’ relationship with his/her followers and an interdependency of roles. No longer the hero or solo leader but the team leader. Not the leader always out in front but the leader who has the capacity to follow. Not the master, but the servant. !!!

Photo retrieved from johnmaxwell.com

4.4.1 Servant Leadership !The notion of “Servant Leadership” emphases the leaders’ duty to serve his/her followers - leadership thus arises out of a desire to serve rather than a desire to lead. Robert Greenleaf, founder of the Center for Servant Leadership describes it as follows: ! “The servant-leader is servant first… It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. He or she is sharply different from the person who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions. For such it will be a later choice to serve – after leadership is established. The leader-first and the servant-first are two extreme types. Between them there are shadings and blends that are part of the infinite variety of human nature. ! The difference manifest itself in the care taken by the servant- first to make sure that other people’s highest priority needs are being served. The best test, and difficult to administer, is: do those served grow as persons; do they, while being served, become healthier, wiser, freer, more autonomous, more likely themselves to become servants? And, what is the effect on the least privileged in society; will they benefit, or, at least, will they not be further deprived?” Taken from the Servant as Leader published by Robert Greenleaf in 1970. !Characteristics of Servant Leaders are as follows: ! “Servant-Leadership is a practical philosophy which supports people who choose to serve first, and then lead as a way of expanding service to individuals and institutions. Servantleaders may or may not hold formal leadership positions. Servant-leadership encourages collaboration, trust, foresight, listening, and the ethical use of power and empowerment.” Taken from the Center for Servant Leadership web site, April 2003. !

http://business-school.exeter.ac.uk/documents/discussion_papers/cls/mgmt_standards.pdf !

Self Assessment !!!! First things are always just that, first. The best way to create a map of where you are going is to know where you have been. ! Just as you would forecast your sales numbers, you are able to rate your skill level and forecast where you could be professionally over a rolling period of time. ! On the next few pages is a Performance Radar for you to evaluate where you are currently. This is for your own knowledge so don't short yourself by giving yourself a big fish. There are

four areas to which these skills are categorized: ! ! ! ! !!!!!!!!!

Executive Presentation LeadershipBank Relations

!!!Executive GRADE !

NOTES

Overall Portfolio Performance

CIT Handling / !Getting Bought

Funding Package Completion

Bank Relations GRADE !NOTES

Knowledge of Each Lenders Stips

Lender’s Niche/ Knowledge of Programs

Lender!Relations

Presentation GRADE !NOTES

F&I Greeting

Presentation!

Handling !Objections

Time !IN/OUT

Road to the Sale!

Using!Key Words

Record Yourself

Body !Language

Common !Variations

Assuming the !Sale

Training for !Success

!

!

leadership GRADE !NOTES

Active Listening-!Giving full attention to others without Interrupting

Negotiating- !Finding common ground between opposing parties

Conflict Resolution- Bringing people together and reconciling differences

Service Orientation- Actively looking for ways to help others

Persuasion- !Persuading others to change their mind of behavior

Delegating- Matching tasks to people with the appropriate skills and interest to do them

Coordination- Adjusting actions in relation to the actions of others as necessary

Instructing- Teaching others to do something and making sure they comprehend

Speaking- !Talking to others to convey information effectively

Writing- Communicating effectively in writing as appropriate for recipients

Monitoring- Assessing performance and stepping in to make improvements

E-mail Etiquette- Taking time to write clearly and respond appropriately

!!Leadership

!Why Your

Boss Sucks !

First off, every one has heard the difference between a boss and a leader. I would like to add to that cliche by pointing out that it is not simply because the leader gets his hands dirty, where as a boss points in the general direction and says "do this." Yes

those are the "hows", but they are not the "whys". ! Showing the crowd what to do, truly leading them to goal completion and celebrating the outcome begins to build what is known as influence. In John C. Maxwell's book, The Five Levels of Leadership, Maxwell explains what it takes to become an effective leader. Influence is the common denominator of all of the ways to ascend through the leadership ranks (separate from the job title ranks). Earning the respect of your peers and subordinates, then building them up to take over your role all while balancing job function is a simple act of time management and personal development. You would think with the lack of true leadership in most establishments that it is rocket science, but it's not. So if all of this information is so easy, why are most bosses still bosses rather than leaders? ! It is much easier to stay on the "because I told you so" level- In an industry that is known for high turn over ratios, it can become way too

easy to not even try to remember anyone's name. Ascending to the "I want to follow you because I like you" rank is as simple as asking someone how they are doing today, giving a high five (my personal favorite) or asking if they need any help with anything (phone calls, putting plates on, etc). !Your boss is not a teacher- Let's face it, most automotive professionals lack proper training and it is not due to the fact that it's unavailable. It is typically because your boss is not a teacher and will not address the issue as an actual issue. The truth is this boils down to my next point. !Personal development ends as soon as the person feel that they have "arrived"- From the bottom, each employee dreams of what it would be like "at the top". What usually happens is when they get to the title that they have pondered, that's whenever the coasting begins. Unfortunately yet again, this is a business with a high turn over ratio, so even though they have stopped developing they still get promoted. The aforementioned view can be remedied by admitting that your teaching skill set may be at a novice level and asking for training. Then again, this is also an industry known for large egos and is why most leaders delegate this task or simply keep working an untrained staff. !Your boss pigeon holes A+ workers- This stems from a gray area of all of the deficits combined. Since this boss has failed to create a strong connection with the team they will not effectively listen, he/she can not teach others (nor do others want to be taught by this person), he/she has failed to personally develop themselves and their team. Finally, this boss certainty does not want to have anyone around that could make them look bad. They would rather surround themselves with C+ workers to make themselves look like they are the hustla extraordinaire. !!!!!!!

!!!Fear not, my overachieving amanuensis'! !Keep your head down and continue trudging through the trench. If the door closes don't wait for a window, build a new door!! !!To the bosses that are offended by this, !Grab a tissue. It is never too late to begin developing yourself. The next generation will soon be the majority rather than the exception to the rule. If you do not adapt, you will be rooted out. You will not be able to pigeon hole forever. We comin' like the Zombie Apocalypse! !!To the leaders that are already kicking a**, !Keep that s**t up! You are da man/woman! Keep building the next guy up and you will have an empire of true success. !!!!!!!

The following is an excerpt from summary.com. It gives a brief synopsis of John C. Maxwell's first level of leadership: Position. !

Level 1: Position ! Leadership traditionally begins with Position. Someone joins the Army, and he or she becomes a recruit, working to earn the rank of private. A person gets a job, and along with it comes a title or job description: laborer, salesperson, waiter, clerk, accountant, manager. Position is the starting place for every level of leadership. It is the bottom floor and the foundation upon which leadership must be built. Real influence must be developed upon that foundation. There was a time when people relied heavily on position to lead, which is no surprise when you consider that at one time, hereditary leadership positions were handed down from father to son

(and sometimes daughter) within families. Princes became kings and their decisions were law — for good or bad. In most industrialized nations, those days are gone. True, there are still nations with kings and queens, but even in most of those nations, such as England, monarchs rule with the permission of the people, and the real leaders are usually elected. Position gives you a chance, but it usually carries with it very little real power, except in systems where the penalties for not following are dire. ! There’s nothing wrong with having a position of leadership. When a person receives a leadership position, it’s usually because someone in

authority saw talent and potential in that person. And with that title and position come some rights and a degree of authority to lead others. ! Position is a good starting place. And like every level of leadership, it has its upsides and downsides. !The Upside of Position !Just as there are positive and negative aspects in every season of life, there are both positive and negative aspects to every level of leadership. If you are new to leadership and you receive a position, then there are things to celebrate. Here are four of them: !1. A Leadership Position Is Usually Given to People Because They Have Leadership Potential. !Most of the time when people enter a leadership position, they do so because it was granted or appointed by some other person in authority. That probably seems obvious. But think about the implications: It usually means that the person in authority believes that the new leader has some degree of potential for leading. That’s good news. So if you’re new to leadership and you have been invited to lead something, then celebrate the fact that someone in authority believes in you. If you have a new leadership position, then welcome to the first step in your leadership journey. You have a seat at the table and have been invited to be part of the “leadership game.” You will have opportunities to express your opinion and make decisions. ! Your initial goal should be to show your leader and your team that you deserve the position you have received. !!2. A Leadership Position Means Authority Is Recognized. !! When an individual receives a position and title, some level of authority or power usually comes with them. Often, in the beginning, that power is very limited, but that’s OK because most leaders need to prove themselves with little before being given much. As the Infantryman’s Journal (1954) says, “No man is a leader until his appointment is ratified in the minds and the hearts of his men.” ! As a new leader, you must use the authority you are given wisely, to advance the team and help the people you lead. Do that and your

people will begin to give you even greater authority. When that happens, you gain leadership, not just a position. !3. A Leadership Position Is an Invitation to Grow as a Leader. !! There should always be a relationship between receiving a leadership position and fulfilling the requirements demanded by it. One of the main requirements is personal growth. I learned this early in my life from my father, who loved to quote, “To whoever much is given, much shall be required.” He believed that each of us had received a lot in life, and we had a responsibility to learn and grow so that we could make the most of it. ! The journey through the 5 Levels of Leadership will only be successful if you dedicate yourself to continual development. If you believe that the position makes the leader, you will have a hard time becoming a good leader. !4. A Leadership Position Allows Potential Leaders to Shape and Define Their Leadership. !! The greatest upside potential for people invited to take a leadership position is that it affords them the opportunity to decide what kind of leader they want to be. The position they receive may be defined, but they are not. ! When you first become a leader, your leadership page is blank and you get to fill it in any way you want! What kind of leader do you want to be? Don’t just become reactive and develop a style by default. Really think about it. Do you want to be a tyrant or a team builder? Do you want to come down on people or lift them up? Do you want to give orders or ask questions? You can develop whatever style you want as long as it is consistent with who you are. ! As you think about the way you will define your leadership, take into consideration what kinds of habits and systems you will consistently practice. What will you do every day when you arrive at work? How will you treat people? What will be your work ethic? What kind of example will you set? Everything is up for grabs. It’s up to you to define it. And the earlier you are on the leadership journey, the greater the potential for gain if you start developing good habits now. ! The bottom line is that an invitation to lead people is an invitation to make a difference. Good leadership changes individual lives. It forms teams. It builds organizations. It impacts communities. It has the

potential to impact the world. But never forget that position is only the starting point.

Five Downsides of Position

1. Having a Leadership Position Is Often Misleading. !Once you have a position or title, people will identify you with it. However,

positions and titles are very misleading. A position always promises more than it can deliver.

2. Leaders Who Rely on Position to Lead Often Devalue People.! As a result, departments, teams or organizations that have positional leaders

suffer terrible morale.

3. Positional Leaders Feed on Politics. !When leaders value position over the ability to influence others, the environment

of the organization usually becomes very political. Positional leaders focus on control instead of contribution.

4. Positional Leaders Place Rights Over Responsibilities.! Inevitably, positional leaders expect their people to serve them, rather than

looking for ways to serve their people. This does nothing to promote teamwork or create a positive working environment.

5. Positional Leadership Is Often Lonely.! If you’re atop the hill alone, you may get lonely. If you have others alongside

you, it’s hard to be that way.

Soundview Executive Book Summaries® www.summary.com!!Published by Soundview Executive Book Summaries®, 500 Old Forge Lane,

Suite 501, Kennett Square, PA 19348 USA © 2012 Soundview Executive Book Summaries® • www.summary.com!!

Vol. 34, No. 4 (3 parts), Part 2, April 2012 • Order #34-10

!!!

!!!!

*Phone Calls are a very simple way to help sales. Sometimes all it takes to turn a customer into a be back is having someone with or perceived to have a position of authority. One more

T.O. could make the difference in getting a customer to come back through the door. A few examples of different types of

calls to make could be: be-backs, lease-end, and limited warranty expiration. !

*Role Playing gives you the opportunity to not only get in front of your colleagues, but it gives them the opportunity to

sharpen their skills. !! *Invent or look up games to build teamwork. The key to

these games are to not tell anyone that it is a learning moment (haha). There are also other games that you can create that integrate skill sets such as Jeopardy, Bingo and a Grab Bag. !!

On the following pages are examples of a few games to play to get you started. Rules and breakdown outline are included as

well. !

Examples of Servant Based Activities to

Build Influence

The Minefield !

Mine Field is a popular, engaging game involving communication and trust. It is a hands-on activity from which team members and new team can gain leadership insights as they get to know one another. We will have Tuesday and Thursday Leadership Teams lead the game. !Duration: 30 min !!Goal :This activity is primarily intended as a team building !!Equipment Needed: Blindfolds or Bandanas Colored paper checkered within the squares of the delivery area. All cars must be pulled out of the area. !!!PART 1: INTRODUCTIONS 10 min !Divide into two teams and have them draw a paper out of a cup to see who will have to answer a question (introduction questions to "get to know you" more) and who will be the minefield operant. Each team leader will explain to their team how the game is played. !!!!PART 2; GAME PLAY: 20 min !Participants can begin by trying to cross the minefield by themselves. In a second round, participants can then ask someone else to help them traverse the field by "talking" them through the field. One person is blind-folded and (optional) cannot talk. The other person can see and talk, but cannot enter the field or touch the person. The challenge is for each blind-folded person to walk from one side of the

field to the other, avoiding the mines, by listing to the verbal instructions of their partners. !!!Be wary of blindfolded people bumping into each other. The team leaders can float around the playing area to help prevent collisions. Decide on the penalty for hitting a mine. It could be a restart (serious consequence) or time penalty or simply a count of hits, but without penalty. Allow participants a short period (e.g., 2 minutes) of planning time to decide on their communication commands. It can help participants if you suggest that they each develop a unique communication system. When participants swap roles, give participants some review and planning time to refine their communication method. Allow participants to swap over and even have several attempts, until a real, satisfied sense of skill and competence in being able to guide a partner through a minefield develops. !!Debriefing !Time permitting, discuss the leadership aspects of this activity with the teams. !Suggested discussion questions are shown below. !• How much did you trust your partner (on a scale of 1 to 10) at the start? !• How much did you trust your partner at the end? !• What is the difference between going alone and being guided by another? !• What ingredients are needed when trusting and working with someone else? !!• What could your partner have done to help make you feel more safe/secure? !• What communication strategies worked best? !The facilitator plays an important role in creating an optimal level of challenge, e.g., consider introducing more items or removing items if it seems too easy or too hard.

Grab Bag Word Tracks !

This acting exercise is another great way to refresh and energize your team. It doesn’t require much time but does need some word tracks. Between all of us managers we have an entire library of training manuals. We shall go through and select 10 possible word tracks for the groups to present. Form groups composed of two to three sales consultants per manager team.

!Duration: 30 min !Goal: To further develop an influential circle as well as taking this as an opportunity for training. !

Equipment Needed: Training Word track reproduced, paper bags !PART 1: THE FLOOR, DIVIDED 10 min !Each team chooses a paper sack with the word tracks inside. Teams have 5 minutes to go practice and then meet back by the circle in the middle of the showroom. !!PART 2: GAME PLAY 20 min !Each group performs. !Groups will vote for which group they thought had the best performance. The winning group gets lunch bought from management. !Tip: It’s important that all group members are present for the other group performances. !!!This exercise is a great way to encourage people to step out of their comfort zones. It encourages teamwork, collaboration, and helps people feel more comfortable with their colleagues.

Goal Setting !

The statement to the left is exactly why I feel that "S.M.A.R.T." goals are bullsh*t. For anyone reading this it stands for:

S- Specific M- Measurable A- Attainable (Achievable) R- Relevant

T- Time Bound ! It is true that they need to be somewhat specific, but there also needs to be some flexibility in the "how" portion of attainment. Simply put, don't beat Plan A to death and give up on the original goal. Plan B might may be the thing that you need! Don't worry about planning all of the contingencies up front, but if reasonable effort has been applied and is not working, don't beat a dead horse. !

! Measurement is a constant. It is the basis for, well, everything. Measuring your successes will give you a quantifiable assessment for qualitative action. In English, it will tell you if Plan A is working. Numbers are your friend, keep as many as you can chart. This industry is full of puffed out chests and big fish stories, numbers will back up your game and keep you moving forward professionally. !

Attainable or Achievable goals are for the weak. Set a monster goal that still makes sense. You obviously can't say "I'm going to sell a billion dollars in product this week." However, creating a goal that is barely above the current number allows you to just coast. If your PFU (Per Finance Unit) is $1,250, don't just set it at $1,300 for next month. Make your goal a monster and then figure out what it will take to get there! The road map will be outlined later. ! Relevant goals are important, but are pretty common sense. I never understood the point of listing this one, Captain Obvious. On a mildly serious note, your goals should help you to achieve professional milestones, but goals in your personal life are important too. If you want a SHORT mind break from what is going on, who is to say that planning your zombie apocalypse fort isn't relevant. Brain vacations for 5-10 minutes actually make you more productive and give you a fresh set of eyes when you get back on task. ! Time bound goals are definitely important. They allow you to not only gauge if the actions you are taking are ensuring your completion of your target, it wards off the pesky bug of procrastination until the last minute. The time tic marks should have many milestones to ensure that the actions taken are proving to be effective. This allows your Plan A to be assessed and alert you if a Plan B is necessary. ! This may sound like common core math, but really it is simple. Most people write goals like this: !"I will hit $1,300 PRU this month with a VSC at 50%.....etc" ! That's great but how are you going to do it? What actions are you going to take? If you keep doing everything that you did to get to $1,100 it sure isn't going to happen. What are you going to do differently?

!!

!

!

!

!!

!!

More on Goal Setting !

Determine the Outcome

Effective Actions

Stop Wasting Time

Timeline Evaluation

Underestimation Kills

Note Successes

Set a Timeline

Determine what the desired outcome will be. What to you want to achieve? Pretty self explanatory.

Take a look back at what you have been doing. See what has been working and plan on taking new action to incrementally

increase completion of the outcome.

Set 3 types of goals: Short, Medium and Long Term Goals. This can work for ANY timeline. If the actions that you are

taking aren't working, your short term mile marker will be the deadline to come up with Plan B.

What is working? You want to be able to replicate success, so if there are things that work, write it down!! You will be able to

share it with others and will build influence amongst your peers.

At your timeline tic marks evaluate your actions. If you change the actions that it will take to achieve your goal, change your

timeline to reflect your new deadlines as well.

You have no one to blame but yourself if you don't achieve your goals because you procrastinated. It's not the goal, it's

you at this point.

Goal Setting

Set goals like a boss !

I remember as a child, as a girl anyways, all gains and contracts were a direct result of the negotiation of "Please! I'll be your best friend!" Where was the commitment? There was time frame, there was no recourse if the action wasn't followed through on and I am pretty sure we both forgot about the transaction by the time Jem and the Holograms came on. Unfortunately, most modern day goal setting is not much different than my childhood camaraderie. !!!

There is no short term gain, medium term outcome or long term results. In fact I believe that in a report I just presented it stated that by the end of six weeks 75% of people abandon their goals. This is truly a chaotic career killer. It literally can make the world of difference, especially when the time comes for you to stand out. !There is nothing, and I mean NOTHING that is a more deadly weapon than someone who can set and achieve goals. !I am NOT talking about "reasonable and achievable" goals. Those are for the AVERAGE thinkers and doers. Real level, achievement level, Hustler Extraordinaire level goals make your stomach turn just a little. They make you stay on your game and NEVER ignore your ride to success. They make you think of EXACTLY what amount of action is necessary to keep moving towards those goals. My line of thinking is quite in tune with that of big daddy GC; I would rather come up short on a monster goal, than to just meet an AVERAGE production goal. !!!!!!!SET GOALS LIKE A BOSS !!

!1.) Track EVERY activity to get a base line strategy. You can't know where you are going if you don't know where you have been. Forecasting is not wizardry, sorry for letting you down, no Dumbledore beard for you. All it is, is noting an action log to get you to the mathematical equation of your current AVERAGE. !!!2.) With these derivatives, INCREASE your AVERAGE actions by 33%. You now have the direct means to quantify your work day and build a game plan around it. All you have to do is just add hustle. !!!3.) Create short term, medium term and long term projections. These will allow you a framework reference to keep referring to so that you know all of your actions are in line with your goal. !!!4.) REVIEW YOUR GOALS MULTIPLE TIMES PER DAY!!!! You have to think of this as a mantra. Your actions are the only things that segregate you and your success. Reviewing, writing and rewriting multiple times per day helps me to LIVE my goals not simply just say them and forget about them. !!!5.) Have others hold you accountable along with yourself. I have the 10x Planner and even though it is not a requirement for me to "Check In" with my higher ups, having them sign the book everyday is a means to hold myself accountable for the actions I did or did not take during the day. !!!6.) Reward yourself when you reach a station on your map. I never once claimed that any of this was going to be easy. In the beginning it is pain staking and tedious, but just like any skill, if you commit at LEAST 20 minutes per day, it will become second nature; just like guys taking off their socks and leaving them right by the clothes hamper! Guess what you zany zealots; I PROMISE YOU IT WILL BE WORTH IT!!! !Chapter 2: Follow the Red Brick Road

!! Just like in sales, finance has a "Road to the Sale" that you must follow in order to create a strong presence in the F&I world. ! Each trip milestone is a vital step to closing the customer and creating another source of revenue for the dealer. Again, just like in sales training, each step can be broken down for investigation and skill set improvement.

!!!!!!!!!!Attitude - Attitude is can be the number one reason that you are not meeting your PRU goals. A negative attitude can make or break an entire team. In an industry that is not known for being rainbows and kittens, it can be a daunting task to stay in a Mr. Rogers mood. Here are a few tips: * Review your goals multiple times per day- Knowing that there is a picture bigger than the negativity can be your most motivating asset. ! *Look up motivational quotes- Everyone has been in your situation before. Everyone has had moments where life just seems to be caving in on them. Look up motivational quote meme's and put the one that speaks to you on your desktop. !

The Road to the Sale

Expectations- This is where you introduce yourself to the customer and set the expectations for your portion of the buying process. This step will draw out any unknown objections or alert you if the sale is indeed closed. There are three main points that this step informs the customer of: ! *You will be getting their information (credit application) for the paperwork and legal purposes. If the sale is not closed the customer will say something to the effect that they have not agreed to anything. At this point, you will go back to the Sales Manager and let them close the sale. ! *You let the customer know that another main portion of your job is to explain the manufacture's warranty. This is done to lay the ground work of receptive listening when the customer is signing in the business office. ! *Getting the customer as quick as possible is always their favorite. Never set an exact time frame though, as you may not be able to deliver. ! Credit Application- This is pretty straight forward, Captain Obvious. Do not leave spaces blank! The more information that you have filled out, the less you will have to go back and forth getting information from the customer! There are a few pieces of additional information you should highlight in order to create a custom tailored financing program suited to the customer's personal driving habits: ! *Reiterate the customer's closed buying terms (monthly investment amount and term of the loan). Write this at the top of the page. ! *Ask the customer if they bought their vehicle new. If it was preowned, ask when they bought it and how many miles they have put on their trade. ! *When you get to the banking information, ask how much they keep in savings and checking. This will allow you to ask for more money down later to get to a more agreeable payment. ! *Ask the customer if they have ever had to claim the total loss

of a vehicle. This is a set up question to create a need for GAP Insurance. Lender Function- Depending on how big your dealership is, at this point you or your finance director will submit the credit application and wait for lending institutions to offer and counter offer lending options. At this point it is a great time to ask sales if they have given the customer a tour to include a tour of the service department. Have the sales staff member introduce the customer to a service advisor and get a card "just incase they have any issues." This builds value in the dealership and creates a need for the service department in the future. !! F&I Greeting- At this point you have yet to build much rapport with the customer. The F&I Greeting allows the customer to get more

information on the "Why" become a part of your dealerships family. A few pieces of information that you want to include in this monologue are: !*A brief synopsis of the business history *Community involvement !*Amenities that your dealership offers !*Any awards that your dealership has earned !*Reiterate that your

finance department is the way that you are able to guarantee a worry free ownership experience !! *Include the words "lifetime ownership" many times !!! Trade Cycle Presentation- This is used when describing the MFG warranty and it's limitations. The white space is left intentionally for notes. This is where you are stating that the manufacturer makes a great product, but that there are some holes in the coverage that they provide.

!!!!!!NOTES:

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! Handle Any Objections- In a perfect world, you will given a five star

presentation and the customer will say 'yes' on the first menu pencil.

However, we live in a world where people have had bad experiences or

their uncle's friend's grandmother's cousin twice removed had an opinion

on how they should purchase a vehicle. Below are some word tracks that

are based on the main objections you will encounter in the business

office. I encourage you to get creative and write a few of your own by

researching closes based on

your local market needs.

!

!!!!!!

It costs how much? I'm not paying that's way too much!

And that's exactly why you should do it! Just think over the lifetime

ownership of your vehicle, the price of parts and labor are NOT going to

get any cheaper.

List a few features and the cost for parts and labor ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

! Just as our manufacturer takes pride in building each and every vehicle they put on the market, we honor

ourselves on selling the best new/preowned vehicles on the market. In fact our reputation depends on it. However, in

order to guarantee a true worry-free ownership experience, we have designed this program to protect you from

unforeseen costs for the lifetime ownership of your vehicle.

!!

!!

!

!!!!!!!!!

Well that's why I'm buying a ______. They are

dependable, I won't need it.

We do pride ourselves on selling quality vehicles, just as the manufacture takes

great care in building them.

Unfortunately, none of us are able to say with 100% certainty that we will have zero issues throughout the

lifetime ownership of your vehicle. That's why we offer the program that we do that is tailored to you. We base it on your driving habits and ownership needs to truly ensure

that you have a worry-free ownership experience.

I had before and it was a waste of money. I didn't use it and they wouldn't

give me my money back.

I had one before and every time I brought it in, the fix

wasn't covered by the warranty. I had to pay for it

out of pocket. OR

Here at _________________ we make sure that if we are

able to enhance the purchase that you made

with us, we do (Give a run down of benefits). Bob, the service advisor that you met earlier is the

person you will call if the need arises.

List of your stores aftermarket benefits ___________________________________________________________________________________________________________________________________________________________________________________________________

!

!!

List a few features and the cost for parts and labor _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

If anything happens, I'll just pay for it myself.

There are a few of my customers who do choose to pay for any fixes out of their own pocket. However with the rising costs of parts and labor, not to

mention the increasing amounts of electronics added each model year, the majority choose to give themselves the option to have a truly worry-free

ownership experience.

Isn't that why the manufacturer has a

warranty? I'll just use that.

*Pull out the Trade Cycle Timeline

Just as I have illustrated, based on your average trade cycle, the manufacturer only gives you comprehensive coverage

for the first 12 months and 12,000 miles. After that, they are only liable for defects found in their own mistakes in the parts and workmanship. That means if the the defect is not found to be the fault of the manufacturer, the fix would be 100% your responsibility. This program is the only way to ensure

that you are able to truly enjoy a worry-free ownership experience.

! Negotiating

!!!

!!!!!!!!!!!!!!!!!!!!!!!!!

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More Money Down

Adjust Coverage

Knock Down Rate

Discard Coverage

Course of Loan

Decline

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!

!

BELL 2 BELL GAMEPLAN

8:309:009:30

10:0010:3011:0011:3012:0012:301:001:302:002:303:003:304:004:305:005:306:006:30

Keeping a Bell 2 Bell Game Plan is just as important as it was in

sales to ensure productivity. Remember you have not arrived, the fun is

just getting started!

Chapter 3: Nighty

Night, Keep Your

Admin Tight

!

CIT LIST

! Somedays, sitting in the business office is going to feel like you are climbing a papyrus

palisade. Unfortunately, the majority of Business Managers drop the ball when it comes to proper paperwork handling resulting in a monster of a CIT list. ! For those of you new to the business office, CIT's are Contracts In Transit. Simply put, all of the contracts that have not been funded because of administrative mistakes, missing stips, or because the lender "did not receive" a portion of the documents for them to release funds to the dealer. It is solely the responsibility of the F&I Department to ensure that CITs and Admin Errors are corrected in a timely fashion. There are easy ways to ensure that all of your deals are funded before accounting gets a hold of those bad boys. Here are some tips on proper CIT Handling. ! *Check your Franchise, Dealertrack/Route One Lender

Platforms EVERY morning. Print out ALL contracts with

issues.

!

*Gather

necessary corrections

and make copies of

them to

keep in a CIT

Correction folder.

Lenders will lose them

more

than once, so have it

ready.

!

!*Use a fax cover sheet

with the dealer number,

department you are

trying to reach,

customer name,

application ID, what you

are correcting, and the

total number of pages.

This will eliminate pages getting left at the printer, mishandled

corrections and highlights the corrections completed. Also if another

funder has made an exception, notate that on the cover page.

! *If you work better with a certain member in the funding

department, get their extension. Just like in any workplace,

there are those who are great at their job, and those who show

up for a paycheck. It's usually the first in rotation, but if you

have a great rapport built and make their jobs easier YOU CAN

GET MORE DONE!

!

!!

*I typically showed up early to begin working on the list before

morning meetings so that I could follow up after them (We had

meeting until 11:00 A.M.). This way anything that didn't

require customer resign was tightened up before the end of the

day.

! *Keep a log of any CITs that are not funded. If your accounting

department does not issue you a digital CIT log, create one to

share on Google Docs. This makes for easy inter department

sharing so that the entire team can see what has been

completed.

!!!

Amount Customer Name Business Manager Lender Status Notes/Date

Funded Change

Suspended with every

Returned entry.

Booked

$$ Missing

In Transit

***** The easiest way to avoid ALL of this mess, is to double check

that all of the figures are correct with the Sales Manager BEFORE going

into the business office. Also taking a quick once over while the customer

is taking delivery or even while they are still sitting there will reduce the

number of resigns you will have to complete. Lastly, RECHECK

EVERYTHING WHILE PACKAGING!! Whether you have an admin office or

you are the last stop before it goes to a lender, double check the stip list

before sending the contract off. *****

Don't forget about an activity log!!!