The Challenge
A leading automotive maker had developed a certification program for dealership parts and service managers to monitor and enhance fixed operations performance among its automotive distributors. In time, concerns were raised about the effectiveness of the program. Some of the program's criteria required subjective interpretation, which called into question the fairness of the results. The effectiveness of the reporting process (dealerships received data only annually) was also questioned. Although dealership participation was somewhat low, the resource commitment to managing the certification program was disproportionately high.
The company concluded that the design, management and evaluation of the certification program needed the assistance and objectivity of third-party professional services – a task for which they selected ILS.
The Solution
We analyzed and redeveloped the certification program and have since partnered with the client to create a fixed operations incentive program.
We began by analyzing the existing certification program practices and determined that new methods for setting and tracking sales targets were required. Together with the client and its dealerships, we developed a set of criteria that would measure performance in various parts of the business on a monthly basis. These “key performance indicators” would become the main thrust of the training and certification program we designed. Any past criteria that relied on subjective interpretation or personal intervention were eliminated from the new system.
We assumed full management of the new program and created a website – a virtual office – for the maintenance of the program's tasks. We organized all program data into comprehensive, user-friendly reports that are posted for participants on daily and monthly bases.
We continue to manage the certification program and provide ongoing support to all participants via the virtual office. We also assist in facilitating open communication for all client staff by acting as a liaison between dealerships, field staff and the corporate head office.
The Benefits
The client’s dealerships enthusiastically support the new certification and incentives program, with an overwhelming 99% participation rate. An integral part of the program design consists of an incentive program wherein the entire fixed operations staff is rewarded and not only dealer management. Dealerships and their staff are all motivated to achieve best results.
The timeliness of the monthly reports ensures staff remain aware of the client’s business objectives. All interested parties have a snapshot of their performance and can perform month-to-month comparisons of each dealership's progress. Dealership management can, in turn, more effectively and more regularly measure staff performance and productivity gains.
Through our involvement, the client is able to control the costs of the program and reduce the resource commitment that was required under the previous home-grown program.
 |
