AUTOMOTIVE DEALER MANAGEMENT PROGRAM Enhancing Retail Performance

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1 AUTOMOTIVE DEALER MANAGEMENT PROGRAM

2 01 OVERVIEW 02 PROGRAM OBJECTIVES 03 THE PROGRAM 04 FACILITATORS 05 INTERNATIONAL BEST PRACTICES 06 MORE INFORMATION Sewells is a dealer development agency specialising in enhancing the performance of franchised motor dealers through business management consulting; training and development interventions; outsourced network development services, financial and performance information, management and process tools, performance groups, and assessment services. The University of Melbourne, School of Melbourne Custom Programs is responsible for commercialisation of education services with particular focus on industry requirements. It designs, delivers, assesses, evaluates and confers customised award and non award professional development programs and professional services for industry. The school brings together the resources of the University of Melbourne and industry to meet the specific needs of business and government.

3 Managing an enterprise with five distinct lines of business is a challenge in itself. Throw in the three dimensional components of customer interest versus OEM interest versus shareholder interest and we emerge with a rather complex and intriguing business model called the modern car dealership. Now take these complexities and weigh up the investment in the business (capital employed) against the investment in the manpower charged with producing a return on this capital and we emerge with one of the most intriguing conundrums in the industry. It was a baker from Beechworth in Victoria, Tom O Toole, whose concept of turning a small business into a thriving enterprise set tongues wagging in the region and ultimately across the continent who, when asked what happens if you spend all this money training people and they leave retorted unhesitatingly, what happens if I don t train them and they stay! Doesn t this sum it up so aptly we HAVE to build skills and knowledge if we are to sustain our businesses and even thrive in an industry growing in demands from dealers, OEM s and customers. In short, we have to invest in our key people. General Managers throughout the automotive industry have tended to learn by the process of discovery and the consequences have often been horrendous. More and more the growing emphasis on new vehicle sales has sucked our attention away from the ever shrinking contributions from our used car and parts businesses, placing immense strain on new vehicle levels and leaving dealers with a sense that the only area of profit opportunity lies in F&I and aftermarket. What a sorry indictment! The one that intrigues me most however, is the fact that, against the odds, high performing dealers continue to flourish on every continent. If you were to ask me for the differentiator, my answer would be simple it s all about balance. That s what great dealers do they mix their natural flare with the science of seeking out every available opportunity to exploit the range of potential in their businesses. It s as simple as that! The Automotive Dealer Management (ADM) program sets out to achieve this simple objective - balancing the elegance of high level education with street-wise operational experience balancing vehicle sales with fixed operations balancing profitability with asset management balancing customer demands with OEM demands - balancing the art of the game with science and balancing investment in capital resources with investment in the people resource. At last we have the makings of a high level, intensive Dealer Principal apprenticeship program, where learners can thrive on the successes and lessons from some of the world s most highly experienced and professional operators, academics and consultants. It s a wonderful recipe here s our invitation for you to get on board! But is this a fact, or does it exist merely in the minds of those who would rather hide behind the cloak of inopportunity? My vast travels around the world, substantiated by the Sewells database of over three thousand, eight hundred reporting dealers from various parts of the world, have revealed some interesting findings. Paddy O Brien Chairman Sewells Group

4 The University of Melbourne extends a warm welcome for you to join the ADM program leading to the Professional Certificate in Automotive Dealer Management. This program is offered by Sewells in collaboration with The University of Melbourne. The University of Melbourne, through the School of Melbourne Custom Programs specialises in meeting the education and training needs of business, industry, government and professional associations. This program is an example of tailoring an award course to suit specific industry training and development needs. At the University of Melbourne we have an unrelenting commitment to quality. The staff appointed to conduct the program will do everything they can to provide you with a learning experience that will stand you in good stead for the rest of your career and we will be interested to hear from you as to how well you think that objective has been achieved. Danny Samson Academic Coordinator School of Melbourne Custom Programs University of Melbourne

5 1 overview Sewells, in conjunction with the University of Melbourne, are pleased to offer the Automotive Dealer Management (ADM) Program. This is a high level business management program aimed at developing future dealership leaders. What to Expect Highlights of the ADM program include: One hundred and fifty contact hours of intensive, focused management instruction (approximately 6 x 3 day blocks over 12 months) Leading industry and subject matter expert facilitators Exposure to a unique line-up of guest speakers Business visits, case studies and workplace assignments Insight into international best practices An opportunity to earn a Professional Certificate in Automotive Dealer Management issued by the University of Melbourne Articulation Arrangements Recipients of the Professional Certificate in Automotive Dealer Management will gain one subject credit, namely the leadership and management subject in the University of Melbourne s Master of Enterprise degree course. Students wishing to be assessed for the Professional Certificate in Automotive Dealer Management are required to be enrolled and assessed by the University of Melbourne. Students not wishing to enrol will still be exposed to the material delivered by the University of Melbourne but will not be assessed. As this is a University level qualification, students undertaking this part of the program are subject to the entry requirements for the University of Melbourne. 2 program objectives The Professional Certificate in Automotive Dealer Management is designed to equip delegates with the know-how and the strategic tools to enable future dealership managers to successfully achieve a balanced approach to leading and directing automotive retail operations in a way that accommodates the three dimensional requirement of achieving optimum market penetration, providing exceptional levels of service and generating superior returns for the business. Delegates will receive focused tuition and coaching from program facilitators and selected subject matter experts in areas such as: Leadership getting optimal levels of performance from and motivating each member of the dealership team Finance appreciating and interpreting financial data to positively impact on the key drivers of the business Marketing and Sales including new and used vehicles, parts and service Fixed Operations raising levels of contribution from the after-sales area Systems and Processes appreciating, refining and enhancing business processes Developing and implementing effective business plans and strategies Creating and sustaining balance between profitability, throughput and customer satisfaction Exposure to global best practices

6 Who Is Best Suited For The Program? The ADM program s leading-edge curriculum has been designed to accommodate current and future industry leaders. As positions on the program are limited, candidates will be selected against set criteria. Ideally candidates will possess a combination of experience and future potential. Typically the program is aimed at delegates such as: Those who have reasonable automotive retail experience, particularly in departmental management Those who have been identified as future general managers / dealer principals Family members of the owners High potential individuals with automotive experience wishing to gain an in-depth understanding of modern thinking in dealership management principles Current dealer principals wanting to further develop their skills Investment The investment for the program is available on application. The investment includes: course facilitation, training materials, workbooks, assignments, case studies, venue costs, lunch and morning and afternoon teas during contact days. Those accepted into the Professional Certificate in Automotive Dealer Management may be eligible to apply for the Commonwealth Governments FEE-HELP deferred loan scheme.

7 3 the program Module One: Day 1 Department Management Considerations Course introduction, the role of dealer management, fundamentals of dealership management, the rules of the automotive retail game, stakeholder considerations and expectations. Day 2 Finance I Driving dealership performance, accounting fundamentals, analysing and interpreting business results, managing economic trends and strategic action planning. Day 3 Leadership Developing a performance based culture, leadership versus management, leadership styles and principles, managing people and teams, leading from the front. Module Two: Day 1 Day 2 Marketing CRM Automotive marketing fundamentals, consumer behaviour, brand management, market segmentation, targeting and positioning, developing a portfolio management and segment development mindset Customer relationship management, driving customer loyalty, retention and satisfaction, customer equity and customer satisfaction measures, creating a sustainable CRM strategy. Day 3 Culture & Change Management How culture is shaped and driven by dealer management teams, change management how to implement a change management strategy.

8 Module Three: Day 1 Day 2 Human Resource Management Performance Management Training and developing the team, workplace training and assessment, skills audits, certification, coaching and mentoring. Occupation health and safety. Legal rights and obligations. Implementing a performance management system, assisting line mangers to build and motivate the team, fundamentals of human resource management (selecting, recruiting, inducting, terminating, managing disciplining and counselling). Day 3 HR Case Study People management and culture. Emphasis on developing and retraining the right skills in the dealership. Module Four: Day 1 Finance 2 Business health and benchmarking, mastering the key performance indicators that drive your business, asset management, budgeting and forecasting. Day 2 Variable Operations Contemporary showroom management. Institutionalising, structuring and monitoring the sales process, managing the showroom floor and the sales team. Retail developments and industry trends. Creating and developing used vehicle strategies and opportunities. Day 3 Fixed Operations Service management, process and fundamentals, repair order analysis, productivity and efficiency, scheduling, loading, warranties and service retention. Parts management, inventory control, staffing and productivity, ordering parameters, parts marketing, merchandising, retailing and trade activities.

9 Module Five: Day 1 Franchise/Brand/Legal Considerations The franchisor / franchisee partnership, expectations of brand representation, legal franchise and business management considerations. Day 2 International Best Practice Global trends and leading practices. What s working and how to get ahead of the game Day 3 Cultural Due Diligence Theoretical and practical considerations of the cultural due diligence framework. Cultural due diligence driving organisational effectiveness. Module Six: Day 1 Decision Making Decision making in an uncertain environment. Dissecting complex factors impacting on the decision making process, understanding your risk taking profile. Day 2 Full Dealership Case Study Applying theory in practice working case study of an actual dealership, group presentations and action planning. Day 3 Business Plan Presentations Business planning, strategic planning, budgeting and cost analysis, dealership economics and influencing factors.

10 4 facilitators Paddy O Brien International experience and world-class credentials make Paddy a highly sought-after consultant, facilitator and industry commentator. He regularly addresses dealer conventions in Australia, New Zealand, South Africa, Malaysia and the United States of America. His ability to assist motor retailers to improve their businesses, coupled with his strong sense of devotion to the operational and financial aspects affecting dealership returns and profitability, place him at the top of his field. Greg Strydom Greg s proficiencies and interests in performance improvement consulting, statistical business analysis and planning combined with his global experience with several major automotive brands allows him to add value on various levels. As part of the Sewells global team, Greg works with strategic clients, assisting them with performance enhancement initiatives, implementation of training strategies, new vehicle launches, customer satisfaction and business management initiatives. His insights and all-round skills add tremendously to the ADM delegate experience. Errol Fernandes Errol s ability to challenge participants on what is best practice is well documented. With over ten years consulting experience in commercial vehicles; Errol s insights into how best to address current challenges faced by business owners and managers, keeps him constantly in demand. Professor Danny Samson Professor Danny Samson specialises in leadership, management,production and operations management. Danny has consulted to senior executives in most manufacturing industries and numerous service sector organisations during his academic career. He regularly provides industry and executive seminars and has participated in a number of committees and industry bodies including appointment as a member of Australian Manufacturing Council and the Commonwealth Government Industry Task Force on leadership and management. Professor Samson has conducted many short courses in engineering and manufacturing management, executive seminars in decision analysis, total quality management, logistics and statistical analysis. Professor Mike Ewing As Professor of Marketing and Director of Research in the Faculty of Business & Economics at Monash University and having headed up Ford Motor Company s marketing research department in South Africa, Mike is a leading academic, facilitator, business consultant and automotive marketing authority. His global insights and ability to bridge the gap between academia and industry set him apart as a key member of the Sewells team. Tomm Stanley Tomm has held international management roles in aftermarket, manufacturer and dealership organisations as diverse as General Motors, Hyster Forklift, Caterpillar and the US Antarctic Program. Having over 25 years experience in the automotive industries and specialising in Parts and Service Department Operations, Tomm also works at a strategic level assisting companies with planning; from long range corporate plans to departmental business and marketing plans.

11 David Lowrie David worked for 20 years in the transport and logistic industry in Australia and overseas. His final few years within this industry saw him take a greater role in a specialised business improvement capacity. This role focused on areas such as process improvement, best practice, technology and efficiency, project implementation and employee training and development. David was much sought after in this area for his strong leadership and his ability to think laterally when problem solving. In 2004 David moved into the automotive industry working for a consultancy firm that manages training for a major manufacturer in Australia and New Zealand. Roger Stephens As principal of his own customer marketing firm, Roger s core competencies and interests lie in customer relationship marketing, customer retention, loyalty, customer research and the development of customer handling and marketing strategies. His background with key clients such as Isuzu, Nissan, Ford, Iveco and Holden adds tremendously to the program. Paul Clark Before joining the world of dealer consulting and training, Paul spent twenty-three years working in various roles in dealerships from sales through to general management. Within that time Paul qualified with a UAM in Dealership Management & Development and won several awards, including national number one sales person for a major manufacturer. Paul specialises in sales and management facilitation, product knowledge, process improvement and dealer health checks. He has taught extensively in Australia, New Zealand, South-East Asia, the Middle East and South Africa and has a reputation as an effective and highly communicative instructor. Professor Bryan Lukas Professor Bryan Lukas is one of Australia s leading marketing experts. He is accredited as a Certified Practicing Marketer (CPM) by the Australian Marketing Institute. He is also an Associate Fellow (AFAMI) of the same institute. Bryan regularly provides executive seminars to senior managers. He has consulted to firms in many industries and his expertise has been relied on numerous times in marketing-related litigation.

12 in sewellsgroup.com australia - New zealand - south africa thailand - indonesia - china - india info@sewellsgroup.com 2012 Sewells Group Disclaimer: The information in this brochure is correct at the time of production. Sewells Group reserves the right to make changes at its sole discretion.