Take a Gemba Walk

To truly understand what was happening on the factory floor, Taiichi Ohno, the creator of the Toyota Production System, advocated for something called the “Gemba Walk.”

The idea was for managers and leaders to regularly walk around the factory and look for examples of waste, or inefficiency. During the walk, they observe everything, and in a non-accusatory fashion they ask questions of team members about why things are done the way they are, with the goal to constantly seek better ways of doing things.

In an article in the online journal Six Sigma Daily, the author illustrates that the true power of a Gemba Walk can be understood by watching any episode of the reality TV series Undercover Boss. The leader of the organization gets disguised and goes “undercover”, and typically encounters all sorts of issues and gains useful insights about how to run a better organization.

The beauty of a Gemba Walk is that you don’t have to hire a high-priced consultant to do the walk for you — to learn from your own employees.

So how does this all relate to our readers — car dealers and their senior leadership running the dealerships? Plenty!

For the most part, the car dealers I talk with are active at patrolling their showrooms, and their service departments.

All dealers understand the car business is a people business, and are always keen to interact with their senior leaders and their customers.

But, there are a few blind spots.

For example, for dealerships that are now part of larger groups, their senior management layers can get pulled away from the front lines and further into the boardrooms and corporate offices.

To truly deliver the elevated customer experience the industry now demands, leaders will need to spend a little less time in the boardroom and more time in the showroom.

How are your customers being treated? How long are they waiting for your basic processes to unfold? How are test drives being done? What is the F&I experience really like?

Is your Wi-Fi working and is it easy to find the password? Is there fresh coffee available? Are the bathrooms clean? Is there an area for children to play? Is there digital media or digital signage to watch so customers can stay engaged?

What are the conversations like on the showroom floor? Are your sales advisors up to speed on your products and the competitors? Is there information available on other products you sell like parts and accessories, merchandise or F&I products?

Are your in-dealership marketing and your posters and seasonal offers up to date? Does your digital signage network reflect those changes?

How are the service conversations going? Are customers frustrated? How are complaints being dealt with?

And if you really want to have an eye-opening experience, then do a digital Gemba Walk and visit your website and try to line up a service appointment, test drive, or make an offer on a specific vehicle in your online inventory.

You don’t have to wait until you read a host of negative reviews online to know what’s happening in your dealership. It plays itself out every day, and a pair of skilled eyes, with experience, perspective, and the power to fix things that are broken can make a world of difference. Those eyes are yours.

About Todd Phillips

Todd Phillips is the editorial director of Universus Media Group Inc. and the editor of Canadian auto dealer magazine. Todd can be reached at tphillips@universusmedia.com.

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