Tag: The Road to Consensus

Overcoming Objections: Find Consensus for Your New DMS

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The old saying goes, “Change is good.” But, the reality is, “Change can be really uncomfortable.” When organizations switch technologies, make broad structural shifts, or roll out new policies, the decision is never made lightly. Your dealership, like most, relies heavily on technology to run effectively. With two out of three car buyers preferring to complete most of the buying process online¹, the switch to digital sales is fueling the need for faster, more integrated technology within major franchise dealerships. So, the saying really should be, “Change might be scary, but it’s absolutely necessary!” Making the decision to switch your dealership’s Dealer Management System (DMS) is a big decision, and dealers often begin the process of consideration up to two years before their contract expires. So, when you’re ready to move to a new DMS, finding consensus among your team can ensure a successful launch. Overcome objections with the following tips before you make the move to a new DMS.

Prepare for Pushback

The more prepared your dealership team feels about an upcoming DMS switch, the less likely you’ll encounter pushback. “The more you can get people ready for change, and get them to the point where they’re open and ready to move on with life before you make that change, the more effective that’s going to be,” shares Bryan Baer, General Manager of Budd Baer Auto Group. Still, though, it’s best to be prepared to encounter some level of pushback from even your most flexible and agreeable team players. Ensuring your dealership staff is in the right mindset by the time you’re ready to launch your new DMS may require some flexibility on your part as well. Check your own mindset and make sure you’re prepared to hear some rumblings of discomfort.

“The more you can get people ready for change, and get them to the point where they’re open and ready to move on with life before you make that change, the more effective that’s going to be.” – Bryan Baer, General Manager | Budd Baer Auto Group

Reach out to Nay-sayers

Basic Change Management advice will tell you to find your advocates—anyone excited and willing to embrace the new change you’re bringing forth. That’s really good advice because, as Performance Manager Mark Gabriella points out, “If you don’t have a champion that wants to take the reins, you’re gonna be fighting an uphill fight.” But, that doesn’t mean Dealer Principals and Managers should ignore anyone who isn’t 100% on board simply because they have a handful of eager participants backing them up. Often, when management is ready to make a switch to a new DMS, there’s a good reason. Lack of easy integration, high fees, and clumsy user interfaces, and lack of customer support are some of the top reasons dealers have made the switch. “But, also,” Gabriella warns, “look for those who don’t (embrace new technology). It’s easy to find those who do, but it’s sometimes better to look for those who do not and turn them around.” Ignoring the team members who aren’t ready for change, or don’t understand your reasons, can cause long-lasting resentments that fester long after you make the change.

Validate Concerns by Backing Up Your Decision

When making the decision to switch to a new DMS, your dealership will have time between the decision date go-live to prepare the team. During that time, it’s your job as a leader to field concerns from each department and reiterate the business decision for change. Any organization that intends to grow and adapt to the changing market conditions and changes in buyer habits simply cannot abide by the mentality that “what we have now works just fine,” or “that’s the way we’ve always done it.” Listen, validate, but remember to communicate to your employees the core reasons behind your decision.

Call On Your Partners to Step Up

One major objection dealers are likely to encounter from team members is that their staff is simply too busy to take on a DMS switch. Fears of “downtime” and lost productivity due to training are very real concerns. This is a reminder that the vendors you work with do not get a free pass to disperse as the ink is drying on the contract. Call upon your partners to manage the heavy lifting of training, and ensure that process efficiency is understood as the intended outcome from the switch. Your team is already busy. Let your vendors do the work.

Resistance to change is perfectly normal. Leading your dealership through a DMS change, overcoming objections, and building consensus is the sign of good leadership. Your dealership is destined for growth. Take the next step and download the full guide, The Road to Consensus, to get everyone on board before the big day.

Get your copy of the guide, The Road to Consensus, here.

¹Cox Automotive COVID-19 Consumer and Dealer Impact Study

Best practice tips for transitioning to a digital dealership

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Dealers are currently beating the odds in the face of economic unrest and uncertainty. According to the Cox Automotive COVID-19 Consumer and Dealer Impact Study, dealerships who have implemented digital sales models are exceeding predictions and can expect to see success in the long-term. In fact, 73% of dealers surveyed have a digital retailing solution in place, and just over 70% of those dealers are seeing buyers complete more of the purchase process online. Still, though, 2020 is only halfway over and Dealer Principal Owners (DPOs)and General Managers (GMs) are looking to their partners for advice, insights, and guidance moving forward. According to Performance Manager for Dealertrack DMS, Mark Gabriella, having the right technology in your dealership has never been more important. “The pandemic has been horrible for both individuals and businesses. Right now, dealers are discovering the opportunities within their business to make it through, but also to survive beyond.” Gabriella and his team of Performance Managers are working side-by-side (virtually for now) with their dealers to hold them accountable for the business goals set for the year. Below is his advice for making the transition to a digital dealership.

Solo Decisions Don’t Equal Strategy.

When thinking about digital sales strategy or integrated technology solutions, Gabriella warns DPOs and GMs to be team players. “If you don’t involve your management team, you don’t have a strategy. “You’re probably going to be fighting them down the road,” he explains. “You have to show your team what the advantages of a new software are, what your strategy looks like, how you’re going to implement it. And then you have to be open to meet after the implementation on a weekly and ongoing basis.” The true key to a successful launch of anything new within a dealership, is simple: feedback from the team. Are there tweeks that need to be made? Can the team make adjustments? As Gabriella explains, “It should never be just one person’s idea. Make sure your rollout has a plan.”

Find Your Advocates.

A best-practice solution for implementing change in any organization is to identify key champions within the organization who can help their coworkers with their personal experience and willingness to embrace change. Gabriella has over 20 years of retail automotive experience. He worked as an executive manager over nine stores, and the Chief Financial Officer over 18 stores. Identifying who is—and who isn’t—on board with a technology change now comes second nature. “I always try to identify that one individual that embraces new technology and change,” he explains. “ Then, I use them to get other people involved. If you don’t have a champion that wants to take the reins, you’re gonna be fighting an uphill fight.”

Don’t Discount Your Opposition.

Playing devil’s advocate, Gabriella offers the opposite advice next. “But, also look for those who don’t (embrace new technology)” he shares. “It’s easy to find those who do, but it’s sometimes better to look for those who do not and turn them around.” It feels good to have people in your corner, always agreeing with your decision. However, good leaders spend the time to understand the concerns of their team, to make certain everyone is heard, and not to rush a decision.

As dealers move forward, those willing to embrace digital disruption are primed for the ‘new normal.’ Gabriella offers advice for those making the transition to new DMS integrations to enhance their digital dealership: “there’s always a small valley of despair. As employees become more proficient with the technology, it gets better,” Gabriella states. “The Performance Managers can provide a bridge over that valley.”

Download your copy of our guide, The Road to Consensus, here.

 

Master Your Upcoming DMS Transition

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Learn the 4 Steps Dealers Need to Know Before You Roll Out a New Dealer Management System

 

Your dealership relies on technology to drive innovation and meet changing buyer expectations. Finding a right-sized Dealer Management System (DMS) is a big step. But, the transition to your new DMS is a big step on its own. Now that you’ve made the decision to move to your new DMS, make sure you’re ready to launch and hit the ground running with your brand new technology by following these four steps from our Performance Management team.

There’s More to a DMS Transition than New Technology…

Dealertrack DMS Performance Manager Michael Panozzo began his career in retail automotive twenty years ago. He’s experienced the ups and downs of a DMS transition from various roles in the dealership and tells his dealership partners, “Yes, you’re changing technologies, but it’s about more than that.” There are countless fears that hold business leaders back from adopting a new DMS. Eventually, though, when it’s time to switch to a DMS that fits your goals, your budget, and your dealership’s needs, taking the next step can be done well if you follow a few best-practices.

Step One: Be Prepared for Change

It sounds simple, but according to Panozzo, it’s the little things your team wasn’t expecting that become a big deal later. “Understand how the DMS and other departmental tools are used and integrate together, then develop a plan for adoption,” Panozzo explains. “A DMS change is a change to how people do their everyday tasks. Staying prepared and ahead of this is essential!” Being mentally ready for change can help everyone succeed.

Step Two: Operational Efficiency Starts with People

So, you’ve decided to change your DMS. You’re pretty excited and looking forward to the new functionality of the new system that touches every corner of your dealership. But, keep in mind, “you’re changing your technology, but it’s about a whole lot more than that,” Panozzo states. You can’t roll out a shiny new system and expect everyone to embrace it simply because it works better, or because it’s easier to learn. Your organization runs well because of deep-rooted operational efficiencies that rely on people. Make sure you include them in the transition at every step. And, speaking of including your people…

Step Three: Communicate Again and Again

According to Panozzo, Dealer Principals and Managers cannot over-communicate when it comes to preparing the dealership for a new DMS. If you’ve just signed on for a transition, you likely have time to prepare the team. “Don’t waste it! Communicate often and encourage good performance. Find out what motivates your team and go from there.”

Step Four: Master the Mindset

In his experience, Panozzo knows that to be truly successful with your upcoming DMS implementation, your dealership’s leaders must learn to master a bit of psychology. “Something like seventy-five percent of learning a new DMS is all psychology,” he states. “It’s a total mindset shift.” Helping your team adapt to change begins there, so “begin early and help shift the way your team operates before launch, not after.”

Dealertrack DMS has mastered the art of installing your new technology at the dealership. Our team is with you every step of the way to ensure a successful launch. Prepare your dealership staff for change with steps in our guide, The Road to Consensus.

Six Guiding Principles for Change

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Choosing a new Dealership Management System is a big decision. Your dealership may have outgrown its older technology, or it may simply be time to let go. Whatever the reason, finding consensus from key stakeholders will ensure a smooth transition.

Every dealership is unique. However, the formula for building stakeholder consensus is straightforward. Here are the Six guiding principles for bringing change into your dealership.

Start Early

Experts agree that dealers begin the process of making a DMS switch at least 18 months in advance. It may feel like a long time, but there can sometimes be years and years of legacy data to dust off. “All too often, however, fear of change can hold you back from sorting through your outdated technology, cleaning up data or taking that first step toward a DMS switch,” says Susan Moll, Senior Director of Installations for Dealertrack DMS. Don’t wait and put your team in a rush.

Let Go of Old Habits

It’s tempting to continue working with your current provider because “this is the way we’ve always done it.” Keep in mind that the temporary discomfort of change pays off in the long-run.

Empower Leaders

No single piece of technology impacts every department within your dealership like your DMS. So, be sure to involve as many department leaders as needed to ensure its success. “The more you empower people to help, the more they’re going to own the new DMS,” according to Jennica Kresbach from Van Horn Auto Group.

Communicate

This should go without saying—but that’s the golden rule—nothing goes without saying! Share updates, status reports, meetings, timelines and more with your staff. Keep that “open door policy” going and engage with anyone who may be rattled by change.

Teamwork

Teamwork makes your DMS switch work. Don’t isolate decision-making to just a few high-level people, or else some key stakeholders will feel left out. Especially for multi-store groups, collaborate on decisions.

Remember Why You Started

Don’t forget to keep your North Star insight when you hit a speedbump or encounter a rough patch. Reward your team for the progress they make and remember that success is shared across the organization.

Get your whole dealership onboard with a DMS switch. Get your copy of the The Road to Consensus here.