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Essential Insights for Automotive Professionals
AUGUST , 2013
03 07 09 13
Creating Work-Life Balance Growing your Automotive Business Retain your best employees: Give them room to grow Innovation: A path to success or failure?
CONTENT
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CREATING WORK-LIFE BALANCE Good work-life balance in the workplace increases staff morale, produces superior work output and helps attract the best talent in your industry. How can you go about creating a nurturing work environment and balances productivity with recreation?
GROWING YOUR BUSINESS Can success breed failure? Can growing too fast, too soon, hurt your business rather than help it? Yes. If the pace of growth is not sustainable, you are likely to fail due over commitment in resources than competitive pressure.
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RETAIN YOUR BEST EMPLOYEES BY GIVING THEM ROOM TO GROW How do you help you employees grow professional so that they remain engaged in their work and continue to stay with you. This article explores ways to ensure that your best asset does not remain stagnant but grows with your business.
INNOVATION: A PATH TO SUCCESS OR FAILURE What are the conditions for a successful innovation drive? Why is it so difficult to create an innovative workplace? What are the obstacles that prevents innovation in most organisations?
ABOUT US Fusion Business Solutions is a performance-focused consulting group that offers a range of client solutions, including training, consulting and in-business coaching. We also operate a wholly owned software division called Op2ma, which provides leading-edge web-based management and customer feedback tools. With our Head Office in Adelaide, Australia, we operate in most markets throughout Australia, New Zealand, the Pacific and Asia. We have offices in Melbourne, Sydney, Perth and Shanghai (China). Our philosophy is to offer our clients profit-enhancing solutions, both cost-effective and innovative. With the business and retail landscape becoming increasingly complex and challenging, companies must adapt and change, or risk falling further behind. Our clients see an ever increasing need to enhance skills and processes such as pro-active financial management and employee performance management.
AUSTRALIA Sydney Office Suite 14, 1 Chaplin Drive, Lane Cove West, NSW 2066
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August, 2013 Page 2
Creating Work-Life Balance
Many people have little in their lives outside of work. For some, even being home isn’t being “off ” from work due to company-issued smart phones, which serve as a mandate to respond to requests
Single parents often struggle the most with work-life balance. A single income has to be compensated for somehow, and that usually means more hours working. Additionally, all of the household labour falls upon their shoulders. That doesn’t leave much time for leisure or balance. Why is work-life balance important? The problem with poor work-life balance is that it sets employees up for fatigue, stress, and burnout. Countless studies have shown that workers are actually more productive when they work less hours and have healthy work-life balance. In fact, many successful companies take steps to help their employees design and maintain a more balanced lifestyle. For those of us who don’t work for such
enlightened companies, we have to take steps to create the balance ourselves. Signs that you lack work-life balance These include feeling confused, lost, as though you’ve lost your creativity, having a negative attitude, or having health issues. Experiencing chronic fatigue or feeling as though you’ve lost your vigour are indicators that something is out of balance. Many companies and organisations are implementing work-life balance practices both formally and informally. Some of these practices include a reduced work week where employees work fewer than 38 hours a week. Other companies allow employees to have flexible schedules and work from home if needed. There are often on-site day care centres where employees can eat lunch with their child if they would like to, or just pop in to get a hug and give some reassurance. Still other companies offer on-site medical care, and exercise
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In response to this increasing push toward “productivity,” we often hear cries for “work-life balance.” Although this may sound like a new term, the first use of the term is in Britain in the 1970s. The idea behind work-life balance is to have a life while still earning enough to finance it. Your life isn’t just your family. So the answer to work-life balance isn’t just splitting your time between home responsibilities and work responsibilities. You must also make time for yourself.
even when the employee is away from their desk. Others simply log immense hours at their workplace due to demands and responsibility, or due to low wages which require more hours worked to make ends meet.
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The importance of work-life balance In the modern world, work all but defines us. A common question, “what do you do?” really asks, “who are you?” because we so strongly associate identity with job. As we march on toward modernity and progress, we are working more and more hours per week.
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facilities and classes, such as yoga lessons and gym facilities. Avoiding work-related stress Work-related stress is one of the most common and chronic causes of stress in modern society. In Australia, it is the second most common cause of workplace compensation claims. This is commonly brought on by working in an environment where your work demands are greater than your ability to cope. This not only impacts the individual, but the organisation as well. Productivity declines, and it could take months for the individuals to recover from stress related injuries. Signs that you may be experiencing work-related stress include feelings of anxiety, irritation, and depression. You may also notice that you struggle to concentrate, have trouble sleeping, and have lost interest in your work as well as socialising. You may take more sick leave. People who are suffering from workrelated stress often have headaches and muscle tension as well as gastric issues. Your relationships may suffer from mood swings or sudden aggression. You may lose interest in most things, or even turn to alcohol or drugs to relieve tension. Often work-related stress is the direct result of genuine work-place fears. For example, you may worry that you are going to be laid off, or that you will have to pull even more overtime because of layoffs. Today’s worker is often under continual and increasing pressure to meet ever-rising standards. Avoiding work stress can be a challenge since quite a bit of the stress from work is the result of the culture of the organisation or management practices.
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However, it is important for you to determine the source of your stress. What you can change by yourself, tackle. What you cannot you will need to talk to your human resources manager or your boss. There is a plethora of research on the negative impact of work-related stress on the organisation. If you are concerned about approaching your boss or HR person directly, perhaps you can anonymously supply them with some news reports or studies regarding the negative impact on business of stressed employees.
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August, 2013 Page 4
Aside from changing the actual conditions you work under—which may be outside of your control—you need to protect yourself. Make lists of work duties by priority. Arrange your day according to your own personal rhythms so that your period of most energy and alertness are spent doing the most challenging tasks. Refrain from smoking and drinking. While you may think these crutches are helping you cope, they are actually making things worse. They compromise your health long term and cause a rise and fall in your natural rhythms. Eat a healthy diet and eat frequently. Low blood sugar from skipping meals won’t help your ability to focus, increases irritability and causes fatigue. Fuel your body with high quality ingredients in order to help fight off stress. Exercise daily. The power of exercise as a stress reliever cannot be overstated. Cardio improves mood and energy. You feel more focused. You are more relaxed and will sleep better. Aim for thirty minutes daily of cardio where your heart is pounding. Your ability to cope will improve dramatically. Yoga or meditation may be in order if you need more relaxation and stress relief. Even ten minutes a day of quiet meditation makes a big difference. Don’t skimp on sleep. Adequate sleep is critical to good decision making, relationship skills, and sharpness on the job. Underperforming on the job due to a lack of sleep will only create more stress. And you will be less equipped to handle it. If needed, try counselling. When we are in a situation over which we have no control, our stress levels rise. Rather than taking out your frustration on your loved ones, seek out a professional. They can help you sort through your feelings and design specific solutions for your circumstances. It is possible that a career change or company change are in order. You may need to see a career counsellor to figure out options.
Achieving work-life balance Work-related stress and work-life balance are clearly tied. After all, the less balanced your life is, the more likely you are to have work-related stress. It is important to try to balance your inner life with your work life as much as possible. Work-life balance can be tricky because there are only a finite number of hours in a week and some people simply have no control over the number of hours they are expected to work. However, there are still some ways to take control and have some work-life balance. Remove non-value-adding elements from your life Although technology at home has become a staple of modern life to the point that we can’t recall what we did with ourselves prior, it can also be a drain. Internet, television, and video games don’t add value to our lives. Rather, they
Outsourcing isn’t just for companies. Many people are discovering the power of outsourcing through conveniences such as online grocery shopping, for example. Local stores are often offering conveniences as well. Some local grocery stores offer ‘personal shopper’ services, which allow you to phone, email, or submit on the web your grocery list. An employee will gather your items and you can swing by and pick them up. Dry cleaners are often
offering delivery and pick up. Look for ways you can cut down on your errands and outsource them. Often these services are free. In other cases, the charge is nominal. The time saved is invaluable. Schedule “you” time You are the most important element in your life. If you don’t take care of yourself, you are no good to anyone else. Like the flight attendant explains, you must put the oxygen mask on yourself first before putting it on your child. Be sure to schedule time for exercise, meditation, yoga, and just time to think and reflect into your week. It is critical to your wellbeing. Readjust your perspective on weekends The concept of the “weekend” as our downtime is an invented concept, and certainly not one that holds true for everyone. For many people, weekends are prime working hours. Wait staff find
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Schedule down-time for yourself You schedule doctor’s appointments, meetings, and work events. Your family and friends are at least as important. To ensure they remain so—and that they know so—schedule time with them. Many people with fixed schedules will set aside a certain day or evening as family time. This time is viewed as sacred time to spend with their families. It doesn’t have to be a weekend. For those whose
work schedule is the weekend, their sacred time may be a weeknight. If you have a changing schedule, simply schedule your sacred time anew each week, rotating it as your schedule does. Making those appointments with your family—even if it is only an hour for dinner together—communicates love, caring, and respect in a way no words ever could. It also reduces your stress and fatigue and lowers burnout.
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take time from our lives that we could be spending with the people in our lives. For example, if during your downtime you are on the couch in front of the television, you are not outside playing with your children, communicating with your spouse, or sharing a drink with your friends. Even when we watch television “with” someone, studies show we are actually engaging in a private experience in the company of others. That isn’t providing you work-life balance, or enhancing your relationships.
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weekends to be the most lucrative of their workweek. Often graduate students and professors find their weekends to be the most productive without the burden of interruptions to go teach or attend courses. Those who work retail are typically scheduled on the weekends because so many more shoppers are out and about. If weekends are actually work days for you, then you need to adjust your lens. Use your days off during the week, or your pockets of time off to schedule time for yourself and your private life. Figure out how you’re really spending your time How can you eliminate “time sucks” if you don’t know what they are? For a week, track how and where you spend your time. Analyse your data and see where you are expending time on things that don’t line up with your values, goals, and objectives. Take steps to eliminate those things.
Don’t fall into the multi-tasking trap We have gotten so used to thinking we can do multiple things at once that we don’t realise how we are sabotaging ourselves. You truly cannot focus on more than one thing at a time. Studies show it is more productive to focus on one thing at a time.
Set boundaries Learn to say no. Set aside time for yourself when your cell phone is turned off and you don’t respond to work requests. By allowing yourself to read and respond to work emails on your phone, you are effectively placing yourself “on call” around the clock. That isn’t healthy.
Each day, do one thing you love Your schedule each day should have at least one thing you love to do on it. It does not have to be extravagant or time-consuming. Maybe it’s some time to read. Perhaps it is coffee with a friend. Whatever activities you enjoy give you something to look forward to.
Check in with yourself Don’t find work-life balance and then continue on in autopilot mode. Check in and re-evaluate regularly. Put it on your calendar to ensure the check in.
Find a ‘mentor’ for balance Perhaps it is someone you know. Maybe it is a celebrity. But find a model for work-life balance and see what you can incorporate into your own life.
Work-life balance is hard won in our fast-paced world. But it is critical to strive for and achieve. If you continue to allow work to swallow you whole, there will be nothing left. You cannot burn the candle at both ends forever. Take steps today toward more balance.
Sick of working on weekends?
Our Group is currently looking for suitable F&I and Sales Professionals with experience in the automotive industry to join our team of Business Development Managers. Your role is to deliver new business sales and maximise opportunities with existing clients - only Mondays to Fridays. If you’re looking to apply your current skills and experience working with the automotive industry, call Tim McGrath on 1300 807 177 for a confidential discussion. Reclaim your weekends!
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Sydney • Melbourne • Adelaide • Perth • Brisbane
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Maximising Performance
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BUSINESS COLLEGE
Growing Your Automotive Business
Growing too fast? Most businesses, especially start-ups, are often guilty of trying too hard. They want to be much bigger, have more profits, and do everything faster. Everyone will be cheering, full of enthusiasm and working for growth. All seem happy and motivated. After all, growth is good and working hard for it is
Certainly, growth is an important part for any businesses, but growing too fast can become a real problem for any enterprise. Managing limited resources so that you do not over stretch is as important as maximising returns on investments. The importance of preparation Preparation for growth means finding resources, and studying the factors that affect growth and its effect on resources. Avoiding the danger of over extending requires care and a sustainable rate of growth. So how can you tell if your business is growing at a sustainable rate? Is your rate of growth sustainable? Does your business model allows you to locate, or acquire more customers? Is the cost of acquiring each new customer lower than the lifetime value of that customer? Can you grow efficiently or does your cost escalate with each new acquisition?
If it costs more and more as you expand your operation or increase your customer base, that is a clear sign that you have reached the stage of diminishing returns. How can we grow? Just because you are not ready for growth does not mean that you should not plan for growth. One of the key factors that you should keep an eye on is maintaining a healthy financial statement. Here are a few indicators that can help identify diminishing returns before it happens: Cash Burn: Growth will influence and increase capital spending Cash burn rate is not a complex concept; how much capital you spend each month compared to how much cash you are receiving is one of the most important indicators of sustainable growth. You need to know what the cash burn rate is to avoid spending more than you have. Growth tends to amplify cash burn rate in the form of investments and expenses. Problems you might have had with working capital or cash flow can quickly get out of hand, and blown out of BUSINESS SOLUTIONS
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But growing too much or too fast can also lead to failure. What many businesses do not realise is that growth, while essential for success, must be sustainable. In this article, we look at what is sustainable growth, and how to achieve growth that is not counter productive. We will also investigate why pushing for too much growth, too fast, often leads to disaster.
rewarding: Let’s get there quickly‌ who cares what the consequences are, we live for the here and now!
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A desire for growth; more sales, more income, more profit, is natural, and this desire is necessary if the business is to prosper. Without a strong desire for success, business will stagnate and possibly fail. Growth, therefore, is important.
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proportion. Keeping a close eye on cashflow statements is therefore an essential way to control expenses. Tightening your belts after over investing is usually too late; it is better to prevent over extension in the first place. Hiring: A significant cost During the growth stage, hiring more staff is necessary to support new customers and the growing infrastructure. However, it is always beneficial to hire only if you absolutely, positively, need to. Because hiring involves significant costs, it is important to keep in mind that payroll is not the only component when expanding your headcount. Other costs as recruitment, provision of training, and retention policies and practices can quickly add up. Alternatives such as outsourcing and contracting can also help keep operational costs in check. Such arrangements tend to have more flexibility built in, allowing your business to scale up or down depending on current needs. Realistic targets with realistic timelines Sustainable growth must be driven by realistic goals and targets. This usually means understanding that future growth must be sustained by current cash flow, and so targets must be aligned with the current ability to generate positive cashflow. An overly aggressive sales forecast or unrealistic expectations often lead to over commitment in terms of inventory or investment. Biting off more than you can
chew often leads to indigestion; and in the case of a business, inevitable failure.
measures, and the customer takes second place to shareholders and investors.
While goals and targets are important to help keep a business on track, pursuing them at all costs can often bring disaster to the business.
At different stages of an organisational lifecycle, it will need different types of leaders and administrators. Unless a business is able to recognise these changes as it grows, it will find that many of its practices and policies that brought about success will evenutaully bring about failure.
Limited talents to cope with growth Existing management infrastructure can also play an important role in restricting growth for a business. This can lead to situations where a business takes on incompetent managers and employees in a hurry to meet growth demands. In such situations, failure is usually a matter of time. Sometimes, it is difficult for the management of a business to recognise its current limitations in terms of talents and capabilities; success can bring about overconfidence, and business owners begin to believe they are invincible. Within (current) success lies the seed of failure This is one of the biggest irony; that often the reason we become successful is also the same reason that will lead to failure in the future. As a business grows, it changes, and its organisational structure evolves to take on new internal and external challenges. Where it was once adaptable and agile, it may now become bureaucratic and slow to respond to market conditions. Where it once depended on the instinct of its founders to make decisions, it now relies on policies and procedures for making those changes. The number of employees grow exponentially, product and service quality may suffer due to cost-cutting
Are you ready for growth? What needs to be done before accelerating the rate of growth is to ask these questions: 1. Is your business model feasible? 2. Are all your processes sustainable? 3. Is your organisational structure able to adapt to growth? Sustainable growth is a healthy consequence of planning and investing in the business. Knowing yourself is often more important than knowing your opponent, and once you begin to accelerate the growth process, it is not easy to change direction midway. It is better to take time to establish the chosen dealership model and processes, and gain full understanding of all matters, including current cash flow/ burn rate, expanding headcount, setting realistic goals, etc... before embarking on a growth campaign. When it is a well-considered, carefully planned and prepared, growth can ensure the long-term prosperity of your business. Too much, too soon, and too fast is often dangerous to say the least, and can lead to ultimate failure.
Looking to grow profit? Introduction to Finance & Insurance 100% Online Course • Combines industry knowledge with proven selling skills • Ideal for new F&I employees or those aspiring to move into dealership F&I sales • Complements supplier onsite training. Call 1300 807 177 or click on this ad for more information.
Accredited Training for Sales, F&I, Parts, Service, and Management also available
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Retain your employees by giving them room to grow
What employees want Employees want one thing more than any other: All employees, including the top 20%, want a genuine, productive and personal relationship with their manager. They want to know the work they do matters. They also want to know, accurately, what is their influence on the
someone else will find them and offer them what they need.
Throughout your organisation, each employee wants the same basic recognition and appreciation for what they do, although these might be termed differently. Pay is certainly important, but the fundamental need for recognition and appreciation is common to all.
Helping employees grow Your best employees are invaluable because they take on new things, discover how things work, solve workplace problems, and jump the hurdles customers and competitors throw at them.
The top 20%, though, needs something more, and meeting that need will decide whether they will continue to stay or move on to greener pastures. We are talking about the need for growth, both personally, and professionally.
They possess initiatives and contribute to your growth. They work independently so you need not give direction at every decision point. They can be trusted to act in the interest of your business. These employees also shine because they excel at collaboration, connecting you, your suppliers, their peers and the entire team into a single productive unit.
Even the best employees will lose enthusiasm, engagement and energy without a real opportunity for growth. They will also lose the desire to work. If growth opportunities cannot be found while working for your company, they will move elsewhere. If they do not find such opportunities, then chances are
Meeting of the basic needs of your employees is usually not enough in this day and age; as an employer, you must also identify ways to ensure that they keep growing, and becoming better
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So what would you do if you discovered 20% of your employees are looking for greener pastures? What would your response be? How will you handle the migration?
business as a whole; the contributions they make to the team.
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Imagine this: At any time, 20% of employees might be looking for a new job, as leading Human Resource surveys suggest. This is not necessarily because of redunduncies; this 20% might be your cream of the crop, those who deliver the most value day-in, day-out. They may not be the layabouts since research also show that poorer-quality employee does not usually start looking for new employment, unless there is an immediate danger to their position.
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at what they do. Job satisfaction and engagement is one of the most effective retention strategies for any company.
the workplace can degenerate into a toxic environment for every one including bosses.
There are numerous ways to help your employees grow. Here are some proven methods that you might consider:
It is necessary to constantly work on creating a culture that is built on mutual trust, teamwork, and helping others succeed instead of one-upmanship. Well-defined workplace behaviour and expectations can also help set the rules for what is and isn’t acceptable.
1. Helping them to learn and master tasks that may be completely different from what they have been doing. This gives a sense of achievement when they succeed in pushing their personal limits to achieve bigger goals. 2. Give them greater responsibility or more autonomy in their daily work. This sends the message that they can be trusted to take on more important roles and responsibilities. 3. Create opportunities for community involvement and give time for charitable causes. This adds meaning to their daily activities and gives the a strong sense of personal worth and meaning. Another way of looking at how you might maximise your employees’ influence and reach is to consider how you can help them achieve their personal ambition or life goals. How you can challenge them to step out of their comfort zone, and take risks that could bring personal or financial benefits to a new level? Creating a nurturing workplace One of the biggest challenges for any organisation is to create a nurturing and engaging workplace. As an organisation increases in size, friction between individuals and ranks becomes more frequent. Egos and personalities take over common sense and good manners, and
The Importance of Training While it is important to work in a feel good environment with nurturing supervisors and managers, employees need to be trained so that technical skills and knowledge improve over time. Relying just on previous experience is a sure way towards obsolescence. For employees to grow with time, learning must be go beyond classroom environment and be built into their day-to-day activities. Employees must find opportunities to learn holistically from formal training, self development and work experience; all of which helps to internalise new knowledge and make them more valuable to your business. As the business environment evolves, your employees have to keep pace with new technologies as well as changes in customer preferences and demographics. Training allows them to gain new knowledge and perspective into their work in relation to new business needs. It helps them stay relevant, and boost their confidence when dealing with new situations. Good managers, bad managers It is said that employees do not quit an organisation; they quit poor managers.
Competent leadership is one of the most important factor in attracting and retaining good employees. But more importantly, competent leadership take upon themselves the responsibility to ensure that employees in the organisation grow with your company so that they remain motivated and relevant in the years to come. There is nothing more harmful for an organisation than bad leadership; an incompetent leader can turn over the entire organisation, losing excellent employees and years of experience in the blink of an eye. Sometimes, bad employees were good employees promoted beyond their level of competence. A top selling car sales person can be an incompetent sales manager, and an excellent sales manager can be an indecisive Dealer Principal. There is no easy solution to this challenge. A well-designed performance appraisal process could help identify managers and leaders who have become a hindrance to the organisation. What if they have outgrown your organisation? Sooner or later, some employees will outgrow your organisation and make for green pastures. Others may move on to bigger roles with bigger companies. When it happens, it is good to remember that while they were being employed, they made contributions to your growth and success, and that their leaving is not necessary a bad reflection on your part. What is important is putting in place initiatives to ensure that your current employees continue to grow with your organisation in the years to come.
We help you scale new heights Fusion Business College is Australia’s No. 1 automotive-focused Registered Training Organisation (RTO), providing leading-edge training solutions to dealers, manufacturers and financiers. Our team can help tailor and customise programmes to help you achieve your goals. Call Tim McGrath on 1300 807 177 to find out how.
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Accredited Training for Sales, F&I, Parts, Service, and Management
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August, 2013 Page 10
BUSINESS COLLEGE A division of Fusion Business Solutions
S E L A S T E CAD GRAMME PRO
n i I I I e t a c i f i t r Ce omotive Sales Aut
Our programme will increase your sales teams closing rates!!! According to NADA, hiring a new salesperson can cost up to $30,000*. Advertising, management time, lost productivity, lost sales – it all adds up. If your frontline sales team are supposed to deliver results, then give them the best chance they can have to be successful by enrolling them in our FAST-TRACK Sales Programme. A range of state and federal incentives could be available to participating employers. Federal Rebates of up to †$4000 for Certificate III programmes could be available for new employees. Eligibility for these incentives depends on each participant’s prior education history. Fusion can help you access goverment incentives for this programme.
• Modern qualifying and profiling skills • Selling for increased profit • What to do when the customer says “No” • Controlling the negotiation • Prospecting in an internet-based world • Time Management • Plus much more
For New Sales Employees! Complete 8 workshops Packaged with Certificate 3 in Automotive Sales † $4000 available to eligible NEW employees who are employed for less than 90 days! Total cost is just $3000 up front, or $600 per month for six months. .
* NADA dealer study, 2009
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To book now, visit www.fusionbusinesscollege.com. To find out more, call 1300 807 177 to speak to a Course Consultant today.
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AUSTRALIA’S LEADING AUTOMOTIVE SALES TRAINING
1-DAY NEGOTIATION & CLOSING COURSE The ability to close effectively and overcome objections separates the top performers from the rest. How sharp is your team in their closing techniques? Can they use a customer’s objection to close? Do customers walk away when a deal should have been done? And do your sales people lose at the negotiating table? Why do customers seem to win more often than we do? How often have you heard sales people justifying a trade-in and the customer controlling the negotiation? Many sales people just do not know how to negotiate a deal! This 1-day course deconstructs the close and negotiation process, giving your sales people the skills to win more deals.
NEGOTIATIONS Learn the critical question that maintains control Overcoming the 6 big justifications for the trade-in: • “The Redbook/ internet told me…” • “This model is selling on Carsales.com for…” • “Another dealer has offered me…” • “My Insurance Company…” • “I could sell it privately for…” • “You have one on your yard…” Learn how to stop them from asking for more
CLOSING Understand why objections occur Learn trial closing beyond “if I could, would you…” Applying the six key trial closing techniques Learning to overcome key objections How to Clarify/ Isolate/ Rephrase…
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How to respond to the “I need to talk to my…”
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August, 2013 Page 12
Innovation: A path to success or failure? For a business to succeed, it must overcome an intimidating range of diverse factors, constantly challenging and making it difficult to create a sustained and winning strategy. Factors such as market competition, diverse personalities in leadership, and the organisational structures can keep the management team busy and distracted from what’s truly important in the long run. One of the most important criteria of maintaining an edge over time is to ensure that your organisation put in place the conditions for onging innovation.But what is innovation? And how can it bring about long term success for your company? What are the key ingredients when it comes to creating an innovative culture where every employee plays a role in generating ideas and solutions? What is innovation? Innovation is not something you do; you do not just decide to spend Friday afternoon being innovative, hoping to generate breakthrough ideas that will take your business to new heights. Innovation is more a condition; a process of constantly looking at day-to-day situations and generating creative ideas to do things faster, better or differently. The
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process may be formal or informal, but it has to be able to capture these ideas and test them for feasibility.
to be considered, and this discourages employees from sharing new ideas on how to improve or solve problems.
If it is proven to be feasible, resources must be made available to implement the idea so that the organisation can enjoy the tangible benefits of the innovative ideas. Without implementation, all ideas are just good intentions - and ultimately a waste of time.
Another variation of this problem is when a leader or manager refuses to listen to an idea unless he or she comes up with it. In other words, the only acceptable innovation comes from them; and employees are not capable of innovation.
Why is it important to innovate? An innovative idea can put miles between you and your nearest competitor, giving your business an advantage that adds significantly to your bottomline.
Time and resources Most employees are constantly busy, and distracted by the demands of dayto-day work that there is no time set aside for reflection. Innovation may also be frowned upon unless it constantly produces concrete results so that any employee not engaged in productive work is marked as lazy. In such an environment, the potential risk associated with developing creative ideas may outweigh the benefits of coming up with a possible solution.
Innovation can also be out of necessity, for survival. Innovate or die; when customers’ expectations change, or when you need to differentiate your product and services, or when you find your competitors leaping ahead of you with their innovation, you may find that you have no choice but to change radically to stay in the game. What prevents innovation? For innovation to work and for business to expand, the management of dealerships must take steps to remove barriers that prevents employees from coming up with innovative ideas. While these barriers may seemed obvious initially, they are common reasons why innovation efforts fail. The Management Team This is one of the most common obstacles when trying to build an innovative organisation; when a leader or manager is not open to new ideas. In such organisations, new ideas are shot down before they are given a chance
If you can conceptualise that half of Google’s 25,000 employees are directly engaged in R&D, you can appreciate the importance of innovation in this day and age. Unless a company recognises that innovation requires an investment in time and resources, and commits to it without unrealistic expectations, it cannot hope to benefit substantially from such a process. Lack of Direction Effective innovation has to be guided by clear direction and purpose. While it is important to commit resources and give employees freedom to be creative, it is equally important to provide a structure to help them focus on results that will help the organisation move forward.
How to turn your F&I department into the most awesome, money-spinning, moolahspitting machine for your dealership group using only a Swiss Army knife.
Ultimately, innovative ideas for the sake of innovation are useless unless they serve a practical objective or solve a known problem. Why is innovation so difficult For innovation to be effective, there are conditions that must be in place before embarking on an innovation drive. Without these critical drivers, efforts to be innovative will fail, often making the organisation worse off than before they took the initiative. It is not easy for most organisations to take on an innovative approach toward generating new ideas and processes to meet the needs of the future. It requires leaders and managers to put aside what is urgent and focus on what is important. For many, the day-to-day demands for profit and sales targets usually blind them to long term goals and objectives. Organisations also have to encourage employees to set aside valuable time and resources to explore new ideas, often at the expense of yesterday’s deadline. And allocating resources, especially financial resources, to test new ideas that may not always deliver breakthrough results. Conclusion Organisations who do commit to investing in innovation will have the opportunity to leap ahead of the competition and change the rules in their markets. They stand to benefit from ideas that could change their fortune forever. They are also likely to attract and retain talent by providing the space for them to be creative. Ultimately, innovation can benefit your organisation in more ways than you can imagine - if you have the courage to embark on it whole-heartedly.
OK. Maybe not a Swiss Army knife but something just as easy and handy. Finance Accelerator™ is Australia’s leading F&I Sales Management tool that is proved to increase dealer profit. Call Op2ma on 1300 807 177 and let us show you how you can do it too. We promise you’ll be impressed.
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