Dealership Receives Help Complying
With Manufacturer's Programs

This auto dealership had a variety of problems that the George S. May International Company solved, helping the business to operate more effectively. Their two primary concerns for the business owner were, complying with a new manufacturer-recommended customer satisfaction program and organizing the business to allow the owner more time off.

However, each of these general concerns was accompanied by a host of additional issues, discovered by our Survey Analyst. Included among these were:

• Variable expenses out of control.
• Hiring and retaining qualified help.
• Management team not getting the job done.
• Inconsistent or under-performing profitability.
• No accountability to budget net profits.
• No measurements to gauge departments' performances.
• Managers not understanding budgeting.
• Pay plan outdated, based on wrong measurements.
• Advertising effectiveness not measured or allocated properly.
• No training program for employees.
• Sales team not proactive in searching for customers.

With those points as the diagnosis, the Management Service team targeted the elements that allowed the problems to develop. These actions were followed with specific recommendations and implementation to cure the problems.

To help solve the training problem, the consultants implemented the Managing and Supervising (MSP) Training Program, including the use of MSP manuals, from May International. To make sure that the program got started properly and continued, the consultants held twice-weekly meetings with the managers.

Workflow identification was completed. This was correlated to the requirements of the manufacturer's recommended program and corresponded to the program for training purposes and certification.

An overall budget was developed, then converted into a flexible budget. This allows variable budget levels for various costs tied to sales volume. In addition, a series of reports were created. These give managers the ability to track the performance of their departments based on measurements that were developed.

"Burdened" labor costs were calculated to reflect the true cost to the dealership of an individual employee.

An incentive plan format was created to reward key managers for overall store performance based on target goals. The format allows the owner to tailor the program for key managers and to promote teamwork.

The implemented recommendations from May International amounted to more than $100,000 total annualized cost savings. They also provided a more efficient and effectively organized and operating auto dealership.

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