DEALER
NEWS
MASSACHUSE T T S/NE W ENGL AND INDEPENDENT AU TOMOBILE DE ALERS ASSOCIATION
M AY/J U N E 2 019
FINDING GOOD CHEAP CARS PART 3: NEW TECHNOLOGY
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WWW.MIADA.COM MAY/JUNE 2019 DEALER NEWS 1
ACCELERATE | By GWC Warranty
3 HURDLES TO VSC SALES
HOW
TO
CLEAR
THEM
The numbers are in. Consumers have spoken. There are three main reasons customers don’t protect themselves with service contract coverage. The good news is dealers can easily clear these hurdles with the right program in place. A study recently released by Pegasystems surveyed more than 1,000 consumers to understand whether or not they saw value in service contract coverage and what stops customers from purchasing a VSC with their vehicles. Overall, the study found 63 percent of customers do not have a service contract despite seeing the value in one. Why is this? Let’s dive into what stops customers from buying a VSC and how you can overcome those obstacles. Cost Thirty-five percent of customers say
they can’t afford a service contract. But when you compare the small increase in monthly payment to what a major repair could do to a tight monthly budget, it’s easy to see which scenario is easier to withstand. With so many used car buyers on tight monthly budgets, a service contract’s monthly investment can easily pay off in the long run. Not Thinking They Need One Thirty-two percent customers think they’ll never encounter the need for a service contract, but trends say otherwise. A simple question of how long the customer plans on owning the vehicle he or she is purchasing is just what you need to clear this hurdle. With the average length of ownership on the rise, chances are your customers will be in their vehicles for a long time. Used cars are inherently more likely to break down, especially as they approach
and surpass 100,000 miles, making it more likely than ever a customer will need a VSC at some point during his or her ownership. Lack of Availability at the Time of Purchase To solve for the 29 percent of customers who aren’t offered a VSC at the time of purchase, all you have to do is turn to the 300 percent rule. The first step is having a service contract provider that offers the product versatility – from both a vehicle and term perspective – that fits your inventory. Once that’s in place, it’s vital you present 100 percent of your products to 100 percent of your customers 100 percent of the time. You’ll never bat 1.000, but you’ll get better at your presentation as you continue to get real-world practice and you’ll inevitably see the results in your F&I profits.
WWW.MIADA.COM MAY/JUNE 2019 DEALER NEWS 3
MARKET WATCH | By Used Car News
MAY/JUNE INSIDE
CONSUMERS SAY THEY WANT ONLINE FINANCING
FICO
SURVEY
ON
CONSUMER
PERCEPTION
2019
03......................................3 Hurdles to VSC Sales 06................................. Finding Good Cheap Cars 08................ Make Phone Tag a Thing of the Past 09.................. Is Your Reputation In Good Hands? 10................................NIADA Government Report 14...................Be the Coach Your People Deserve
ADVERTISERS INDEX
Alliance Inspection Management....................... 5 Auto Auction of New England ........................ IBC Central Mass AA.................................................. 3 Manheim ............................................................. 11 NextGear Capital ............................................ 8-9 Southern Auto Auction.....................................IFC vAuto................................................... Back Cover Warrantech.......................................................... 7
WHAT’S NEW
LIVE WEBCAST OF WAAC M AY 1 0 O N N I A DA .T V Catch all the exciting competition from the World Auto Auctioneer Championship! Auctioneers and ringmen from across the country will vie for the top titles and you don’t want to miss it. Tune in to NIADA.tv on May 10 for the free live webcast.
OFFICE
For information on how to become a member of MIADA, please contact MIADA at 781-278-0077 or heidimiada@gmail.com.
NIADA HEADQUARTERS
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838
For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. The MA/New England Dealer News is published bi-monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 760065203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views Dealer News or NIADA. Likewise, the appearance of advertisers, or their identification as members of MIADA or NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2019 by NIADA Services, Inc.
STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Jeffrey McQuirk • jeffrey@niada.com PRINTING Nieman Printing
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There is a disconnect between consumers’ finance preferences for current loans and consumers’ finance preferences for future loans – with the largest gap centered on digital. That is a key finding of FICO’s second annual global survey on consumers’ perceptions of their vehicle financing experience. The research looked at how consumers view the financing of their new and used vehicle purchases, as well as how vehicle finance companies are currently meeting customer expectations.
EXECUTIVE COMMITTEE
More than a quarter of consumers (28 percent) listed online financing as their first choice for their next loan, an increase from the number of current online borrowers (13 percent). Meanwhile, 63 percent of consumers applied for their current automotive loans from the dealership, but only 40 percent said dealership financing would be their first choice for their next automotive loan. While dealership financing continues to be the preferred loan option, online loans are gaining traction, driven by changing consumer expectations.
BOARD OF DIRECTORS
PRESIDENT Juan Carlos Mendez JC Auto Sales
Bob Baker Jr. Dorchester Motor Sales
Lou Tedeschi A.S.P.I. Motor Cars
VICE PRESIDENT Pierrot Abiramia Milford Auto Mall
Rich Copponi AutoUse
Ray Daneshmand Choice Auto Center
TREASURER Dan El Dourihi 1A Auto Sales
Harold Proodian Wagner Motor Group
Phil Greenstein Keystone Automotive
SECRETARY Steve Newcomb Royal Administration
Robert Shaw, Sr. Shaw Auto Leasing
Donald McKenna Patriot Motors
Luke Semmelrock Central Mass Auto Auction
Ron Dial Dialworks
John Perro Perros Auto Sales
Gary Innamorati Jackson Motors
CHAIRMAN OF THE BOARD Bob Hayes Auto Town Rentals Inc. EXECUTIVE DIRECTOR Heidi Saad heidimiada@gmail.com
PAST PRESIDENTS
Steven Carnes - Worldwide Preowned LLC Tim Collins - Quincy Auto Auction Eddie Coolbrith - S & E Auto Ron Dial - Dialworks Phil Greenstein - Keystone Automotive
Ernie Wantman Dreamworks Motors
Donald McKenna - Patriot Motors Inc. Fred Moschetto - Moschetto Brothers Inc. Louis Tedeschi - ASPI Motor Cars John Eleftherakis - John’s Auto Sales
AUCTION NEWS
AMERICA’S ADDS GREATER BOSTON’S LYNNWAY AUTO AUCTION
ACQUISITION
SAID
America’s Auto Auction president and CEO Ben Lange recently announced the acquisition of Greater Boston’s Lynnway Auto Auction. Lange said, “We are extremely pleased to welcome Lynnway Auto Auction, and its team led by Jim Lamb, to America’s Auto Auction. Jim and his staff are of the highest caliber with a proven track record in Boston and the New England market.” Lynnway Auto Auction has been owned and operated by Jim Lamb and George Russo, who founded the facility in 1997. Both former auctioneers with more than 30 years of experience in vehicle remarketing, Lamb and Russo have built a thriving auction that draws customers from all points in the Northeast. In 2011 the pair moved the auction to its current location, a new, hightech 8-lane facility on 58 acres, 30 minutes northwest of Boston. “In expanding the America’s Auto
TO
HOLD
TREMENDOUS
Auction brand, we seek out auctions that are successful and high-performing in their markets,” said Lange. “Lynnway Auto Auction is an ‘A-Rated’ operation with a tremendous influence in the Northeast, earning superior marks in facility management, transportation management, reconditioning service, mechanical and body repairs, on-site floor planning and firstrate customer service. “This acquisition supports our footprint in the Northeast, one of the country’s major automotive markets, and puts Lynnway in an even stronger position to serve its dealer and institutional accounts.” Lamb said, “Our relationship with America’s Auto Auction has been four years in the making. During that time, we have not only come to know and admire Ben Lange, but have become acquainted with his associates at the America’s auction
PROMISE
locations and observed the workings of a tremendously successful company. “We are all excited about our future with America’s Auto Auction. This acquisition is a great cultural match between Lynnway and America’s, one that holds tremendous promise for the auction and its customers.” Maintaining a keen focus on both buyers and sellers to nourish healthy local markets and build strong foundations for institutional remarketers, America’s Auto Auction is the third-largest auto auction company in the United States. With the addition of Greater Boston’s Lynnway Auto Auction, America’s Auto Auction now includes 22 locations, with facilities in Alabama, Georgia, Illinois, Florida, Kentucky, Louisiana, Massachusetts, Michigan, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas and Virginia. For more information, visit www. americasautoauction.com.
WWW.MIADA.COM MAY/JUNE 2019 DEALER NEWS 5
MARKET PERSPECTIVE | By Doug Hadden
FINDING GOOD CHEAP CARS
PART
3:
NEW
COVER STORY
TECHNOLOGY
In the first installment of this three-part series, we looked at how to take advantage of upstream online auctions. Upstream is just a fancy way of saying “before the vehicle is shipped to physical auction.” We focused on OLOCs (One-Owner, Low-Mileage, Off-lease Cars) and learned how to acquire affordable cars your customers want, without having to go to a physical auction. In the second installment, we looked at buying real-time in multiple lanes, at multiple auctions, right from your desktop, laptop or phone! Since these articles, I have received a lot of great feedback and even trained some folks on how to buy cars live online – including easily accessible options like ADESA’s simulcast platform that allows dealers to bid virtually, in real time, on cars in the lane. One dealer said, “I may never go to a physical auction again.” Another dealer I worked with loves going to the physical auction. After training, he was standing in the auction lane bidding on cars as they drove through while also on his phone – bidding on cars at the same auction, at the same time, but in different lanes, and even checking proxy bids on cars at other auctions. Technology is opening new doors of opportunity for dealers, giving them a competitive edge like no other. This month we will look at new technology that is changing the way we buy and sell wholesale vehicles. When I owned my pre-owned lot many, many years ago, besides attending two local auctions every week, I spent every Monday morning stopping at Starbucks buying coffee and pastries I would take to my favorite used car manager who ran a large new car franchise. I usually arrived at the store as soon as the service department opened the front gates so I could look at and book out all the weekend trades before the
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UCM arrived. I would list what I wanted to pay for each car and what it needed for reconditioning on my yellow pad, head to his office and wait. We would grind out prices and two or three hours later I would call some drivers and get my new inventory to reconditioning. Not only did I have to get up at the crack of dawn, pay too much for a couple of rundown cars to get the ones I wanted (the old “package deal”), but I also burnt half a day away from my lot. Needless to say, this wasn’t a very efficient use of my time or inventory dollars. Fast forward to last week. I’m sitting at lunch with a friend who owns a small preowned lot, talking about how hard it is to find good cheap cars. His phone gives off a chirp. He quickly taps his phone, scrolls through a couple of screens, pounds out some numbers on his phone calculator, taps his phone one more time and gets back to our conversation. What was he doing? He was bidding on a car that was traded in at a new car franchise less than two hours ago. That’s right, sitting at lunch bidding on fresh trades and in the time it took to eat his burger, he owned the car! There are a few companies in this stillgrowing, dealer-to-dealer digital auction space. I’m most familiar with ADESA’s sister company TradeRev, a mobile app that sends notifications to your phone as new car franchise dealers launch cars to a 45-minute on-demand, digital auction. You can view multiple photos, watch videos and even listen to the engine run. Settings allow you to customize your experience, enabling you to create alerts for only the types of cars you want – so you spend less time looking and more time buying. Think about the efficiencies this technology brings to the industry. With built-in artificial intelligence and
machine learning, you can find the right car at the right price, in a transparent and fair process, all in about an hour. You can have funding, titling and transport pre-arranged in the app so when you win a car it quickly appears on your lot. And what about the seller? We know the longer you keep a car in stock the less gross you get – the dreaded “lot rot” is real. Even when you hit a home run on an aged unit, if you do the math on a profit-per-day basis, the ROI is weak at best. What would wholesaling a trade the same day it’s brought into inventory do for the average inventory turn time? It’s a win-win for both buyer and seller! The industry is changing, but so is the technology we use to run our operations. If you have not embraced buying cars upstream, live online from your PC, laptop or phone, or the newest app-driven one-hour, on-demand auction, you may want to rethink your business plan. I’m not saying you can’t continue doing what you’re doing now and be profitable. I’m saying there is technology out there that can and will help you be more efficient – which leads to higher profits with less effort. Mastering these new, high-tech systems and apps is so easy there is no reason not to give them a try. I’ll even help you get started. Email me at Doug.Hadden@ADESA.com and I will set up some time for training you on one or all of the new technologies discussed in these articles. Once you get comfortable using the new tech, not only will you be more efficient and profitable, you may also have time left over to do other things you haven’t been able to do, like spending more time with family and friends! Until next time – have fun and sell cars! Doug Hadden is executive director of dealer consulting services for ADESA Auctions Inc. He can be reached atDoug. Hadden@adesa.com.
MARKETING MATTERS
| By Christopher Leedom
MAKE PHONE TAG A THING OF THE PAST OPTIMIZE COMMUNICATION WITH SMS
How many of you are frustrated by the volume of voicemail – both left and received – during the average workday? Whether it is for sales, service or collections, your staff leaves dozens, if not hundreds, of voicemails every day. It has probably become one of the biggest drains of productivity and labor – though nevertheless necessary – until now. Do I have you scratching your head a bit? First, let me issue a challenge. Identify one employee in your dealership or finance company that interacts with your customer base on a daily basis – for instance, a salesperson, collector or service advisor. Next, identify 20 customers you need to communicate with that particular day. If you are a working with a collector, pick 20 accounts that just became delinquent. If you are in sales, pick 20 customers that need follow up. Take 10 of these customers and send them an SMS message initiating communication with them. Sales, service, or collections – it doesn’t matter. Call the other 10 customers, leaving a voicemail initiating communication if you don’t reach them. By the time you get done calling the 10 “phone call” customers, chances are 50 percent
of the SMS customers will have already texted you back! Why? Because 93 percent of SMS messages are read within 10 minutes and a return text is usually sent within 20 minutes. How does that compare to the voicemails? It’s no contest. You probably will connect with two or maybe three of the outbound phone calls and will likely leave seven or eight voicemails. I have observed this exercise with countless operations. Our organization has worked with thousands of dealers and finance companies over the past 20 years. When we started Textmaxx Pro four years ago, I could not have predicted the impact on productivity. We see it not just in the auto space, but across virtually every industry we serve. In today’s world everyone returns an SMS message well before returning a voicemail. There are countless studies that prove this. So how do you optimize your SMS messaging strategy? First, think of it the same as your phone system. You need a tool that is proprietary and resident to your business that will serve your SMS communication needs, and ensure compliance. I hear too many dealers say, “My employees are really good at texting – they use their
personal phones.” I cringe. Think about it, would you utilize your salesperson’s personal phone number when advertising on the web or in television commercials? Would you give each employee a copy of their entire CRM activity when they leave your dealership to work elsewhere? That is precisely what you are doing if you do not have a product that allows you to store, monitor and control all SMS activity. It doesn’t matter whether it is sales or collections. You need to retain and control those conversations for a host of reasons, not the least of which is compliance – but that is a topic for an entire article itself. If you want to eliminate – or at least greatly reduce – the wasted time and effort of phone tag, implement a well thought out customer contact strategy where SMS communication is your first form of communication. You will be amazed at the impact it will have on employee productivity. It is an incredibly effective way to communicate with your customers. In my opinion, it is even more effective in collections or service, where you already have a relationship with the customer. Studies show SMS messaging to be the preferred method of communication of most customers, across virtually every demographic. It is hands down the most efficient mode for just about every conversation. Chris Leedom is the CEO and founder of the Leedom Group. The Leedom Group includes Textmaxx Pro, a complete SMS messaging solution for small to medium businesses with a custom design for the automotive industry. You may reach Chris at chris@leedomgroup.com.
ACCELERATE |
By GWC Warranty
IS YOUR REPUTATION IN GOOD HANDS?
CHOOSE YOUR SERVICE CONTRACT P ROV I D E R W I S E LY
Unfortunately in the used car business, your reputation after the sale can sometimes be out of your hands. Once that aspect of your business is out of your control, you need to be sure it’s protected in the hands of someone you trust. If you’ve been in the business long enough, you know that despite the best reconditioning and the best inventory selection, you’re bound to run into vehicles that encounter issues after the sale. When this happens, it’s your reputation on the line. How these fragile situations are handled can have long-lasting impacts on your reputation in your market. Partnering with a service contract provider that has the tools in place to take care of your customers the way you’d want them treated is perhaps the most important thing you could do to protect your reputation when your customer’s experience is out of your control. That’s why you need to know some specifics about what your service contract provider has to offer so you can be sure your customers are in good hands after they drive off your lot. Coverage Lookup A simple online coverage lookup tool is a great way for customers to learn details about their contract on a moment’s notice. Whether it’s start or end mileage, expiration dates, component coverage or a look at the contract itself, having this in place helps customers know exactly how they’re covered.
Find a Shop A customer’s nightmare is a mechanical breakdown far away from home. A nationwide network of service facilities is one thing but being able to easily find a shop in an unfamiliar area is another. This online application takes the worry out of an out-of-town breakdown. Quick Answers These days, consumers demand answers, and they demand them quickly and on their terms. Having a service contract provider that allows customers to submit questions via online forms, live chat or social media gives customers multiple options, so they can get answers in whatever way suits their busy schedules. Good Reviews Online reviews in today’s automotive industry are vital to success. The same goes for service contract providers. Stick to trusted sites like Google (sometimes hidden in the maps section), Facebook, or Consumer Affairs and look beyond just star ratings. While overall ratings are important on the surface, looking at how often a service contract responds and the frequency with which customers leave reviews will give you a sense of how that provider cares for your customers.
WASHINGTON UPDATE | By Shaun Petersen
GOVERNMENT REPORT NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities.
LEGISLATIVE Privacy a priority: Privacy issues have become a high priority on Capitol Hill in the wake of a recent report from the Government Accountability Office that recommended Congress consider enacting a federal Internet privacy law. The GAO found no comprehensive U.S. Internet privacy law governs private companies’ collection, use or sale of users’ data and said Congress should take action to protect consumers. Andrew Smith, director of the Federal Trade Commission’s Bureau of Consumer Protection, testified last month before the House Oversight and Reform Committee’s Subcommittee on Economic and Consumer Policy, describing the FTC’s role in overseeing the data security practices of credit reporting agencies and enforcing data security laws. Those laws include the FTC Act, which prohibits unfair or deceptive acts or practices, the Fair Credit Reporting Act, which requires CRAs to provide consumer reports only to entities that have a permissible purpose for receiving them, and the Gramm-LeachBliley Act, which requires CRAs and other institutions to safeguard nonpublic personal information. Smith testified that the FTC favors comprehensive data security legislation that would give it additional tools such as civil penalty authority, jurisdiction over common carriers and nonprofits, and targeted rulemaking authority. Small business advocate: On March 27, the Senate Committee on Small Business and Entrepreneurship unanimously approved the nomination of David C. Tryon as chief counsel for advocacy of the Small Business Administration. If approved by the full Senate, Tryon will be responsible for educating lawmakers and regulators as an advocate for small business in the federal government’s agencies and rulemaking processes. NIADA was among 30 small business organizations that signed a letter sent to committee chairman Marco Rubio (R-Fla.) and committee members in support of Tryon’s nomination. The Small Business Administration is an important ally to NIADA and independent dealerships within the federal government. SBA has participated in the NIADA National Policy Conference and has worked with NIADA on a number of issues relevant to dealers. With Tryon in the advocate role, SBA will be better positioned to advance the interests of independent dealers and small businesses.
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David C. Tryon
REGULATORY On March 7, the Department of Labor issued a notice of proposed rulemaking that would make more than a million more American workers eligible for overtime. The new rule would increase the salary threshold for employees to be exempt from overtime requirements by almost $12,000 per year, to $35,308 per year ($679 per week). Currently, employees with a salary of less than $23,660 per year ($455 per week) must be paid overtime if they work more than 40 hours per week, while workers making at least that salary level can be eligible for overtime based on their job duties. The new rule is intended to update the threshold – last set in 2004 – using current wage data projected to Jan. 1, 2020. DOL is seeking public comment on the rule, and specifically on its proposal calling for periodic reviews to update the salary threshold. DOL said it developed the proposal with extensive public input from six in-person listening sessions held around the nation and more than 200,000 comments as part of a request for information in 2017. The proposed rule maintains the current rule’s overtime protection for police officers, firefighters, paramedics and nurses, as well as non-management productionline employees and non-management employees in maintenance, construction and similar occupations. The proposal does not include automatic adjustments to the salary threshold. NIADA is reviewing the details of the proposal and will submit appropriate comments. We encourage dealers to consider commenting as well. For more information, visit www.dol.gov/ whd/overtime2019. Comments about the proposed rule can be submitted at www. regulations.gov, in the rulemaking docket RIN 1235-AA20.
PAC NIADA-PAC hosted Rep. Patrick McHenry (R-N.C.) at a business roundtable April 25 at Big Tex Auto Mart in Dallas. A contingent of about 20 dealers and association leaders gave Rep. McHenry a tour of the dealership, explaining how the used car business works, the services it provides and the obstacles faced by independent dealers every day, and discussed many of the issues currently being considered by Congress that impact the industry. McHenry is the ranking Republican on the House Financial Services Committee, whose jurisdiction includes oversight of the Consumer Financial Protection Bureau. NIADA and our PAC encourage association members to invite your elected representatives – at the federal, state and local levels – to visit your dealership. It is the single most effective thing you can do as a dealer to educate those representatives about what you do, how your business works and how the laws and regulations they create affect you and your business in the real world. Erika and Robert Blankenship
GRASS ROOTS Texas IADA is supporting a bill that has been introduced in the state legislature that would eliminate a form that limits a customer’s choice of where to title a vehicle and give dealers the authority to transfer the vehicle’s title in any of the state’s counties. As part of TIADA’s lobbying efforts, Erika Blankenship testified before the Texas House’s Transportation Committee in support of the bill. Blankenship and her husband Robert are owners of RLB Texas Auto Center in Austin – winner of NIADA’s National Quality Dealer award in 2017. She serves as chair of TIADA’s legislative committee and is a member of the NIADA legislative and regulatory affairs committee. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
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WWW.MIADA.COM MAY/JUNE 2019 DEALER NEWS 13
BE THE COACH YOUR PEOPLE DESERVE MANAGEMENT MATTERS | By Dave Anderson
ARE
YOU
A
CRITIC
Ken Blanchard called feedback the “breakfast of champions,” and rightfully so. We all need feedback to grow and develop to our fullest potential. When done properly, coaching those on your team and giving them quality feedback is one of the highest return uses of your time. However, when it comes to giving feedback, many leaders today are more of a critic than a coach. They point out what’s wrong without offering the individual any coaching that would allow them to adjust and bring better performance day in and day out. Criticism without coaching doesn’t elevate people – it frustrates people. What follows are some key principles of coaching, and some steps to make sure you’re the coach your people deserve, and not just a critic of them. But first, let’s discuss what it means to be a critic and what it means to be a coach so you can better assess your style of giving feedback. A critic is defined as “one who expresses displeasure or an unfavorable opinion about someone or something.” Simply put, criticism without coaching is merely expressing displeasure and leaving it at that – not exactly the balanced feedback “breakfast” necessary to grow, develop, and invest in the people on our team. A coach, on the other hand, is “someone who gives private teaching, a trainer or coach.” Make no mistake, a coach will also express displeasure concerning poor behaviors or performance, but the difference is he or she will also provide instruction on how to improve. With a better understanding of what it means to be a critic and a coach, let’s look further at the differences between them. To improve performance, a coach will provide feedback concerning poor performance and immediately follow it up by redefining a performance expectation. The coach will do this both conversationally and sincerely, without getting personal, profane, loud, or reminding the offender of their past flaws and faults as the critic does. To improve performance a good
14 DEALER NEWS MAY/JUNE 2019 WWW.MIADA.COM
OR
A
COACH?
coach will show the person what good performance looks like. By redefining the performance expectation with the individual, you’re setting the standard. By modeling and demonstrating the good performance you’re looking for, you’re setting the example. To further reinforce his or her point, the coach will explain why it’s important to perform the task or duty in the manner prescribed. A great demonstration of what you’re looking for, by itself, is not enough to help coach the individual to greater levels of performance. This is why the best leaders in any field explain the “why” behind it. They understand people are more likely to apply the “how,” and live with the “what,” if they first understand the “why.” To test the individual’s comprehension of the feedback and the example demonstrated, a coach will ask the person to perform the task again to demonstrate their understanding of the proper technique. The only way you can know for sure that people get it is to test them, and let them show you they’ve got it. If the person requires further training to be able to perform the task or create the desired outcome, the coach will provide the resources necessary to support the person. Strong cultures understand talent doesn’t arrive fully developed, and a ferocious dedication must be made to training, coaching, and mentoring employees. Identifying and resourcing a team member’s growth by providing tools, experience, mentors, training or additional practice are key ways the coach supports and helps build the skillset necessary for the person to perform well. Once the performance improves, a coach will reinforce the change or improved behavior. This is because behaviors that are reinforced and rewarded are more likely to be repeated. But remember, the longer you wait to reinforce the behavior, the less impact it has. Reinforce often and quickly when you’re trying to influence behavioral and performance changes.
If necessary, the coach will establish consequences for the performer if the poor behavior or performance continues. If you want to change a behavior, you must change the consequence for that behavior. As the saying goes, “If nothing changes, nothing changes.” Even when establishing consequences, a good coach will affirm belief in the performer and his or her ability. This is because the coach understands the consequence being established is something they’re doing for the person, not to the person. The sole objective of a consequence is to improve performance. In summary, a critic is good at finding and pointing out faults or flaws. While a coach does likewise, his or her primary objective is to create the structure and tools necessary to eliminate the flaws. The coach is not just a “finder” but a “fixer.” With these points in mind, are you more of a critic or a coach? If you were to randomly survey team members on your coaching and feedback abilities, would they agree? If not, or if you’re unsure, the good news is you can fix that by bringing more focus to applying the principles shared here and adding value to your people, so they in turn can add more value to the organization. If you have good people who are being hamstrung by criticism without coaching, don’t expect them to endure or stay in your ranks for long. They won’t put up with the abuse, nor should they. Step up and be the coach they deserve – don’t wait until it’s too late to do so. Dave Anderson, “Mr. Accountability,” is a leading international speaker on personal and corporate performance improvement. He is also the author of 14 books and host of the podcast, The Game Changer Life.