At the core of Sewells Groups dealer focused philosophy are world class Performance Groups.
Peer-group forums where dealers are able to identify the financial drivers, processes and practices that lead to superior business results.
2. 2
overview
the Sewells Group approach
a participant’s perspective
more information
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index
Here’s the benefit whether you’re an OEM or a dealership:
As an OEM, we’ll provide a framework in which your franchised dealers are able to review the performance of their
businesses and identify areas for improvement. Performance Groups are best utilised by OEM’s to increase the level of
support and coaching to franchisees, leading to improved business performance, greater market share and motivated
franchisees.
As a Dealership, this is a framework in which you can review current practices within your dealership or dealership
group, asking yourself ‘why do we do this?’ Through the group facilitator and your co-participants, you will understand
how to improve processes, practices and skill sets required to implement reforms which ultimately lead to improved
business performance, and making your investment in the franchise a rewarding business venture.
V2/2012
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Dear Colleagues,
Here’s why you should invest in Performance Groups.
The automotive retail environment can be a challenging one in which to succeed. Yet experience shows us that those
business leaders who are focused and who truly understand the drivers of dealership performance rise to the top.
Our Performance Groups are designed to equip participants with the knowledge and skills required to succeed;
challenging them in a positive peer-group environment to further improve business results.
Our unique approach sees the development of business management skills as a process across all departments. We
focus on identifying the ‘causes’ of business success and strive for a clear understanding of automotive retail ‘drivers’.
This results in clearly articulated goals, in an environment that encourages learning and understanding of the inter-
relationship between process, people, assets and business systems.
The environment of common opportunity encourages open communication and trust where performance levels can be
pushed and personal and professional growth can be stimulated.
Performance Groups are an incredibly effective forum for driving performance, and if you haven’t experienced that
drive in your business, here’s our invitation for you to get on board. Contact one of our global offices included in this
document or connect with me direct at pobrien@sewellsgroup.com.
Paddy O’Brien
Chairman of Sewells Group
4. overview
What are Performance Groups and exposure to the elusive how to factor.
At the core of Sewells Groups dealer focused philosophy
are world class Performance Groups.
Peer-group forums where dealers are able to identify the
financial drivers, processes and practices that lead to
superior business results.
Facilitated by a senior Sewells Group Consultant, leading
practices are identified through the use of industry
benchmarks
Dealership processes are assessed and analysed in an
action-learning environment in order to understand high
levels of workplace performance.
Sessions are designed to be engaging and interactive
through the discussion of real life problems and
opportunities.
Participants are encouraged to openly exchange and
articulate ideas, which will assist in enhancing performance
and identifying untapped sources of additional profit.
Groups are typically made up of 10 to 12 Dealer Principals
/ General Managers of similar sized businesses, sometimes
representing multiple franchises and ideally non-
competing in nature
Sessions are held over one or two days, usually including
a dinner and dealership facilities tour, subject to location
and logistics.
The dynamic of inviting fellow participants into one’s own
dealership provides a unique opportunity to network,
form fellowships and interact in the most productive way.
The intensity of the analysis and the exposure to the
elusive ‘how to’ factor combined with the opportunity
to strategise at a high level, yielding almost immediate
results.
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6. 6
the Sewells Group approach
What differentiates the Sewells Group approach?
The focus on a performance model versus a focus on benchmarks
While benchmarks form a useful indicator of comparative performance and are the driver of competitive group offerings,
they are simply the conduit by which we monitor results.
We are focused on the drivers of performance and in getting participants to understand and apply them. In this regard
we have a unique way of identifying the drivers that really count in enhancing results. This includes analysing results
beyond the income statement and making specific reference to the balance sheet and the importance of activity and
asset management.
A belief that cause deserves more scrutiny than outcomes
We believe that outcomes are indicators of strategic decision making and that managers/leaders need to understand the
causes behind the results. We endeavour to bring understanding and focus to these dynamics.
An emphasis on education over comparison
Our approach is developmental in nature and we seek to ‘equip’ rather than ‘inform’. In practice this means teaching
people how to apply the Sewells Group Performance Model (MRA), how to affect the key drivers and how to interpret
results at a strategic level.
The notion of strategy versus keeping score
The Sewells Group approach is about the application of strategic thinking, not simply a mechanism for comparing
results or keeping score. We prioritise action planning and are passionate about making a difference. We want every
participant to be better informed the next time we meet.
7. a participant’s perspective
While members may experience the group environment in slightly different ways, in
our experience they are likely to mention the following highlights of the Sewells Group
approach:
These are without doubt the most powerful learning and performance enhancement
forums available to retail dealers.
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1. Exposure to, and starting to master the key financial ratios and measurements that create excellent results.
2. Participation in a regular forum that explains the ‘causes’ of business performance and link the operational processes
which drive these ratios and results.
3. Benefits of progressive action planning and positive peer pressure, causing participants to not only see that best practice
is achievable, but also gain positive commitment to improving quarter on quarter.
4. Personal and professional growth as management education is blended together with practical performance improvement.
5. Gain confidence by doing and achieving whilst working with like-minded professionals
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Our Dealer Performance Management Model
Sewells specialises in enhancing the performance of Automotive Dealers through an integrated
approach, applying the products and services in this framework.
Outsourced Dealer Development Services
Delivering a business function or functions to a client, thus providing specialist or unique expertise whilst reducing
head count and other business implementation costs.
integrated solutions
9. 9
a case in point
The combination of facilitated learning, structured performance
assessment and positive peer dynamics can certainly pay dividends.
Having worked with numerous Performance Groups over the years, the greatest reward comes when performance is
positively impacted. Working with a group of dealers in conjunction with an OEM, for example when fixed operations
contribution improves by 85% over a period of 12 months or when service department gross profit shifts upwards by
30% over the period of a financial quarter, we know we are making a difference*.
Whether it’s focusing on improving gross profit per employee from $7,500 to $9,000 or exploring practical ways to
increase hours per repair order from 1.7 to 1.9, we find it is the small things that make a big difference to the business.
Our experienced facilitators help participants understand what causes these results and find solutions that will work in
their dealerships.
Performance Groups are offered as a means of improving automotive retail performance. While primarily focusing on
financial outcomes, emphasis will also be placed on strategic and operation enablers that drive success.
These include focusing in one way or another on the broad spectrum of the dealership. Our approach across these areas
includes:
Dealership Operations - New & Used Vehicle Sales
Retail sales drive the automotive business as we know
it. The generation of throughput consumes dealers and
manufacturers alike, providing a critical mass which the
business feeds off in a number of ways. The balance
however is a fine one, under the guise of market share,
there is the need to maximize sales numbers, at the same
time there is a desperate need to maximize gross profit
(despite the fact that margins are perilously thin) and
finally there is the need to service customers to the highest
possible level in a bid to drive loyalty and advocacy.
All this is driven by process, people and product. The
Sewells Group approach focuses on all three, ensuring
that solid repeatable processes are in place, that frontline
staff are trained and suited to the role that they perform
and that product benefits are communicated in such a
way as to engage and excite all consumers.
Dealership Operations – Parts & Service
Fixed operations, by its very nature, are measurable and
our scalable returns model ensures sustainable returns
through examination and action at a business and
departmental level. Our track record in helping dealers
generate better returns from parts and service is without
peer. This success in developing fixed operations (service
or parts) also comes from our singular focus on the
measurable improvement of the individual’s competence
and the business results. The service department lends
itself to this kind of approach, by virtue of the process
structures and levels of control required to run a successful
service department.
Financial Management
Our approach to retail finance is underpinned by the
Sewells Group Performance Model (MRA). This multi-
tiered model focuses on margin and asset management,
establishing clear performance parameters for generating
a return on investment. Our model is about driving balance
throughout the organisation, providing management
teams with a clear understanding of what it takes to be
successful and assisting them to put actions in place that
make a real difference to the bottom line. The linking
of business processes and retail business strategy to
the management of assets; resources and planning is
what produces rich learning experiences for those who
participate in our Performance Groups.
*actual results from participating dealer groups