In the world of automotive dealerships, there’s a recurring phrase that rings alarm bells: “I just can’t get my people to do it.” Time and time again, this statement underscores one critical issue—dealership leadership. It’s not about the talent you lack; it’s about how well you lead, motivate, and hold your team accountable.
This problem isn’t unique to a single dealership or market segment. As highlighted in a recent LotTalk podcast episode, dealership leaders often face significant challenges in effectively managing their teams, fostering accountability, and cultivating a culture of success. The good news? These challenges are solvable with the right leadership practices.
The Problem: Inmates Running the Asylum
Dealership leadership often falls into a reactive cycle. Leaders focus on solving daily crises but neglect the big picture. This creates a vacuum where team members aren’t aligned with the dealership’s vision, leading to inconsistent processes, low morale, and poor results.
One of the key takeaways from the podcast was how many dealership leaders feel powerless, expressing frustration that they “can’t get their people to follow processes.” However, the issue typically stems from a lack of clear vision, inadequate training, and inconsistent accountability.
Key Areas of Leadership Improvement
1. Set a Clear Vision
Dealership principals and general managers must articulate a clear vision for their team. Without this, staff are left to guess at priorities or, worse, create their own. Employees need to understand the why behind their daily tasks and how their work contributes to the dealership’s success.
As one podcast contributor eloquently stated, “If you don’t have clear direction or vision from ownership down, your staff will flounder.” Leaders must take the time to cascade this vision throughout the organization.
Pro Tip: Write down your dealership’s vision and goals for the next quarter, year, and beyond. Share this with your team during meetings and keep it visible.
2. Train Consistently
A significant leadership gap lies in inconsistent or insufficient training. It’s not enough to onboard a new hire and assume they’ll figure things out. Training should be ongoing, interactive, and tailored to individual roles.
The podcast emphasized the importance of training, with one analogy standing out: “If you put salt in a horse’s oats, he’ll drink all day long.” This means creating an environment where employees feel equipped and motivated to succeed through continual learning.
Pro Tip: Conduct monthly training sessions focused on real dealership scenarios. Use tools like role-playing customer interactions or inventory management exercises.
3. Accountability: The Missing Ingredient
Accountability is a two-way street. Leaders must hold their team accountable for results while also being open to employee feedback. If a sales manager avoids tough conversations or lets poor performance slide, it sets a precedent that mediocrity is acceptable.
One contributor on the podcast likened accountability to biblical stewardship: “You’ve been blessed with this responsibility. It’s up to you to hold people accountable to deliver their best.”
Pro Tip: Schedule regular one-on-one check-ins to review progress, address challenges, and ensure everyone is aligned with dealership goals.
4. Hire for Culture, Not Just Skills
In an industry where turnover is high, it’s tempting to hire the first warm body to fill a position. But the wrong hire can be detrimental to your dealership’s culture. Leaders need to prioritize cultural fit and long-term potential over immediate needs.
One podcast participant stressed the importance of hiring slowly and firing fast: “If you do your due diligence upfront, you’re assured you’ve got the right person. If they’re not a fit, don’t hesitate to move on.”
Pro Tip: During the interview process, ask questions about the candidate’s values, work ethic, and long-term career goals to ensure alignment with your dealership’s mission.
5. Lead by Example
Employees mirror their leadership. If you’re not demonstrating the behaviors you expect from your team, why should they take you seriously? As one guest put it, “Remember where you came from. You were once on the lot, pounding pavement, sweating through deals.” Leaders need to stay connected to the front-line experience and set the standard for excellence.
The Bottom Line: Leadership Starts at the Top
Whether you’re a dealer principal, general manager, or department head, leadership is not a passive role. It requires vision, discipline, and a willingness to have tough conversations. Your team looks to you for guidance, structure, and accountability. If you fail to provide it, the “tail wags the dog.”
As dealerships face increasingly competitive markets, those with strong leadership and clear processes will rise above the rest. It’s not just about selling more cars—it’s about creating a sustainable, thriving culture that empowers every employee to excel.
So, take a moment to reflect: Are you leading your team with purpose, or are you simply managing the chaos? The choice is yours.
Great article John
Ed French