In auto dealerships when managers hear the question "How's your week going?" they know it's not always a personal question. Someone--usually the General Manager--wants to know whether they're on track to hit goals.

The most reliable source to find out how it's going is to drill down into Key Performance Indicators (KPIs). We all know the usual; gross profit,…

As consumers increasingly shift their shopping online, choosing to skip visits to traditional retailers, it’s become difficult for businesses to get that all important relationship-building face-to-face time.

In the automotive industry, a similar shift is happening. Industry disrupters are taking the whole purchasing process online, forcing major automotive…

Brand Awareness is Meeting Brand Reputation

Opinion Elites are growing in numbers.  Opinion Elites use online brand reputation websites before they make a purchase.    Researching your brand reputation is especially important to Opinion Elites if they have no prior knowledge of your business.   In other words, word of mouth…

Since it is that time of year, here are some ideas for commitments you may wish to make for 2013. As you’ve heard me say many times, “If you measure it and then scoreboard it, performance will improve!” Many of you are probably measuring and scoreboarding some of the following key performance indicators, but I doubt if any of you are measuring all 11 (a “lucky” number) of them:

1. Actual flat rate hour Productivity per Technician against objective on a daily,…

Last week I attended NCM’s semi-annual meeting of all its divisional directors, 20 Group moderators, Retail Operations consultants, and NCM Institute faculty members, who, along with our CEO set aside two and a half days to dialogue about what’s happening around the industry and within the company, and how best to address the needs of our clients.  As usual, it was a great encounter, with far too much agenda content and discussion for the overall time allotted.

One of the topics that…

The NCMi faculty members and the NCM Retail Operations field consultants have learned that managers who effectively manage the elements of “controllable profitability” within their respective operating departments normally produce a significant departmental net profit. This, of course, assumes that the majority of dealership expenses (limited-control and fixed) are fairly distributed to each operating department.

Many managers, however, lack the proper focus on controllable…

As I’ve written previously, the two most important elements of effective Accountability Management are 1) measuring what you need to manage and 2) inspecting what you expect. In the Service Department, the repair order analysis process is one of the essential steps in executing these two accountability elements.

The R.O. analysis is intended to provide information about Customer-Paid (C-P) sales that is supplemental to that available in the typical DMS. The proactive Service Manager…