Monday, October 22, 2012

How to Create Knowledge, Ownership and Accountability Among Managers in 5 Steps

How to Create Knowledge, Ownership and Accountability Among Managers in 5 Steps

The success of your dealership relies on everyone working toward the same goals. The most successful dealerships align their department goals with their overall dealership goals, involve department managers in setting goals and hold managers accountable for tracking their department’s progress. By making your department managers an integral part of the planning and goal setting process, they will feel a sense of ownership for their role in the dealership’s––and their department’s––success. However, the only way they can track their progress is if they have access to the right information.

For example, one dealership’s parts department came within $500 of meeting its monthly goal for the first time. When asked about it, the department manager indicated she had not been tracking daily progress against the department goal. She further explained that if she had known she was so close to meeting her goal, she would have done whatever it took to sell that additional $500 worth of parts.

Even though it may be uncomfortable to share company goals and financial information with others, it’s important to trust that your managers will use this knowledge to increase the power of your business.

Create Knowledge, Ownership and Accountability Among Managers

1. Make sure your department managers know, on a daily basis, how they’re doing against monthly goals.

2. Provide managers with weekly reports from the accountant/controller showing them their progress against monthly goals, as well as progress against gross profit goals.

3. Provide managers with weekly reports from the accountant/controller showing them their progress against monthly goals, as well as progress against gross profit goals.

4. At the end of each month, give managers departmental profit and loss statements; have them discuss the results in detail with the Dealer Principal and/or the General Manager and then do a review with the overall management team.

5. The end result will be additional power to keep your dealership on the road to success.

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