Jim Williamson is General Manager of Williamson Chevrolet Buick Cadillac GMC, in Uxbridge, Ontario a dealership that’s been in operation for 65 years
“A major part of being an effective GM is being involved with your staff,” says Jim Williamson, “including providing hands on support during the sales process and in the business office.”
General managers are increasingly the “go to” people within dealerships. Canadian auto dealer spoke with some to find
out how their roles are adapting.
In modern automotive retailing, we’ve seen numerous changes in the way aspects of dealership operations are handled, ranging from sales, to F&I and fixed operations. The advent of new technology and changing consumer and industry expectations have required many stores to come up with new ideas to operate more effectively and grow their business.
And at the centre of all this, the role of the general manager is also changing along with them. Traditionally, the GM is seen as the linchpin of the dealership, operating as a strategic planner, staff motivator, department coordinator, marketing chief and revenue officer all in one. It’s a mammoth task and one that’s not always recognized, even within the industry.
Given the even greater demands placed on automotive retailers, it would seem, from the GM’s perspective, that it will be increasingly difficult to make long term plans while overseeing day-to-day operations.
At the General Manager level, just what are these changes and how are GMs at dealers across the country adapting to them? Canadian auto dealer decided to find out.
Encouraging innovation
One way to embrace change is to change your own perspective. “By its very nature the car business is entrepreneurial,” says Bill Johnson, General Manager at Wood Motors Ford in Fredericton, NB. “Don’t be afraid to think outside the box, and that applies to all aspects of dealer operations.”
One way Johnson has been fostering this idea is by holding weekly meetings with his staff, brainstorming sessions if you will, where all kinds of ideas are on the table, no matter how radical. “We actively encourage it,” he says. “In this day and age you’ve got to set yourself apart from the competition and that means embracing novel ideas.” One of them, fostered by Wood Motors’ Pre-Owned Sales Manager, was a blue and white chequered parking lot.
“I thought it was a great idea,” says Johnson, “so we implemented it.” Today, the distinctive lot has become a Fredericton landmark. “It also hasn’t hurt our business, our most recent sales years have been some of the best ever in terms of volume.”
In Uxbridge, Ont., Jim Williamson, General Manager of Williamson Chevrolet-Cadillac-Buick-GMC, embodies a similar philosophy. “Even though Uxbridge is a fairly small community, as an auto retailer, there’s always the potential to get noticed. It’s sometimes amazing that dealers don’t always capitalize on the incentive programs being offered by the manufacturers. In our case, with the current Recycle your Ride program being offered by GM, we elected to take it one step further, so we got a dumpster and placed an old, scrap van on top of it. Everybody recognizes us as the dealer with that van outside.”
A ‘people’ role
Innovative promotional ideas are one thing, but a key to a successful store or dealer group as any GM will tell you, is making sure you’re surrounded by the right people. “As a General Manager, I can’t stress that enough,” says Williamson, who at 29 years of age, is among the younger GMs in the business.
“I wouldn’t be able to do my job effectively if it wasn’t for the support and skills of those around me,” he says. “At Williamson Chevrolet-Buick-Cadillac-GMC, we pride ourselves on being one big family and a lot of that has to do with the staff, many of whom have been with us for a long time.”
Yet, to retain staff and motivate them, today’s General Manager also has to perform the role of mentor and coach, be one of the team yet lead by example.
“You’ve got to be involved, there’s no question,” says Williamson. “I liken it to being a coach on a hockey or football team. The dealership only works effectively if everybody participates. That includes the coach (me).”
Service your customers
He says it’s more important for GMs to take a hands-on role when it comes to sales and service, and to meet with customers. “It shows that the dealership at the highest level is sensitive to individual customer’s needs and it also provides support for your sales staff.” On the service side getting involved is also important, especially when it comes to dealing with issues arising from work orders, internal servicing or warranty claims.
“You can win over a customer in sales, but you can lose them in service if issues aren’t resolved,” says Mark Swirla, General Manager at Pfaff Volkswagen in Newmarket, Ont. And it’s often the small things.
“For service staff it’s often good to have a fresh perspective,” says Jim Williamson. “As a GM you’re able to do that because you’re not involved with the process day in and day out; you’re impartial. You can look at both sides of the story and armed with the information you receive, make an informed decision. Most people just want somebody to respect their point of view, so whether it’s the customer or service advisor / manager, being able to listen is important. By doing so you’re providing support to your staff and also your customers.”
Know your people
Yet just as pivotal in the role of managing people is being able to read them. “Buying a car is an emotional experience for the consumer” says Bill Johnson, “yet it some respects, it’s just as equally emotional for the person selling that vehicle.”
Williamson agrees. “You have to be intuitive. As a General Manager you want to know what makes your staff tick, what excites them, what are their hopes, desires and worries, if they have a good month you want to know what made it possible, if they’ve had a bad one, ditto. At our store, on the sales side, we have 16 representatives; so that means 16 different ways of selling vehicles to customers along with 16 different viewpoints and 16 different personalities. Today, I believe, it’s more important than ever to work as an integrated team and that means trusting your staff and getting to know them.”
Contests are another way of getting staff motivated. “Competition is always healthy,” says Swirla. He says you can set targets and when sales goals are met you an award prizes such as NHL tickets, a weekend getaway, or even raising a specific amount for charity. It can be great for business and morale. “If your staff are happy, customers often sense that and they’re more likely to do business with you.”
Yet besides being a coach and mentor, the General Manager’s role is also increasingly becoming one of a headhunter as well, especially as the industry grapples with a shortage of new blood.
“It’s a reality,” says Williamson. “Unfortunately for many young graduates the car business isn’t seen as a ‘sexy’ career path, like going into medicine or law.” Yet the irony is, for those with the right skill set and attitude, the rewards, in the long term can potentially be far greater. The trick, Jim says is, “convincing people from outside the industry to take a look.”
For those that do and understand it, many GMs, perhaps because they’ve gone through similar experiences during their careers, can relate and provide the new recruits with the tools and training they need. “It’s probably more important now than ever,” says Swirla. “Our business is fairly complex and is constantly changing, which means those that work in the industry need to be prepared and equipped to succeed.”
Social networking
The advent of tools such as social media and smartphones has radically changed the way people communicate, as well as shop for goods and services. “Having Facebook pages and even individual apps is going to become increasingly important and as a General Manager you’re going to need to take an active role in this aspect of the business,” says Williamson.
“We’ve had our Facebook page for about six months and it’s proved to be a great way to interact with our customers on a personal level. It’s a great way for getting feedback as well as adding content to keep them engaged and also notifying them of promotions or special events happening at the dealership.”
Facebook also serves another function as perhaps the most effective word-of-mouth network going. Whereas before, dealers would often get referrals from within the local community, now there’s the potential to reach a much larger audience.
Day to day operations guy
A foundation of the General Manager’s role is dealing with the day-to-day operations of the business, and finance and inventory are major components. “Keeping a lid on costs is critical, perhaps more so today than ever,” says Williamson. “You’ve got to keep an eye on allocation of funds and financial goals; if you have a plan stick to it!” Another challenge facing many General Mangers concerns financial institutions; including banks which today have high demands.
“Documentation is required and lending rules are tighter,” says Williamson, “which means that it’s harder than before to purchase vehicles, that’s why you need to understand the regulations and be flexible as well as prudent.”
Fixing the problem
Such an approach is also required when it comes to inventory management. For many GMs it comes down to striking a balance, between having enough vehicles available, but not too many and also the right product mix. Today’s sophisticated inventory management tools are a big plus.
Stephane Morin, General Manger for Trento Kia in Toronto, Ont. believes that taking a pro-active approach when it comes to inventory management is critical in terms of customer satisfaction and retention. “If a customer wants to do business with you, then you need to do the best you can to find the vehicle that’s right for their needs. That can sometimes be a problem, especially if you have to rely on vehicles that are imported from overseas. Supply and demand fluctuates and while you can never predict exactly what customers want and when, you can make safeguards, such as working with other dealers and vendors to find a vehicle, should it not be available through normal channels.”
Such an approach can also be particularly advantageous, especially for GMs working within multi-franchise dealer groups who can often have easier access to a potentially larger pool of vehicles than standalone stores. “Although we’re all in business together,” says a GM at a prominent Calgary retailer, “If we can acquire or reduce some of our inventory via non traditional methods, such as in the case of manufacturing or transportation strikes, economic slowdowns or spiking fuel prices, then so much the better.”
Jim Williamson concurs. “Inventory is always a challenge, but if you run leaner it’s easier to adapt to any changes than when you’re fat with stock; the General Manager who is able to fix an inventory situation quickly, whether it’s the result of a parts shortage, strike, natural disaster or sudden drop in demand, is the one that is going to come out on top.”
