1. Define and Explain the Dealerships "Corporate Culture" In many instances new special finance managers are hired and are not explained the corporate culture of the dealership and senior management. Corporate Culture is the rules any company lives by. These rules include the corporate policy pertaining to customer service, compliance, false statements, misrepresentation, fraud, hold checks, promissory notes, spot deliveries and customer service. Once the new employee understands the way a dealership is operated it is easy for everyone to co-exist and become successful for a long time.
2. Make Special Finance Manager a Part of Management Team: One of the biggest problems facing new special finance managers is not being part of the management team. This serves to increase the rate of failure and makes the transition process very difficult. Special finance managers should be involved in management meetings, planning sessions and take an active role in each sales meeting. When special finance managers are treated as "step-children" by management it sends a clear message to other staff members that this department is unimportant and is managed by a "lame duck". Dealerships who involve special finance managers in areas such as advertising, inventory and training always succeed in building another profit center. With over 60% of the buying public credit impaired this department is no longer an afterthought. Today lenders offer very lucrative finance and lease plans for customers with less than perfect credit and dealerships must recognize this valuable member of management.
3. Training: All special finance managers need on-going training. The sub-prime market is changing daily and managers must be properly trained to insure success. I believe the same problems exist today that did in 1994 because dealers fail to recognize the need for professional training. When a new manager is hired consider why a change was made, either the previous manager did not accomplish the goals set by management or it is a start up department. In either case training will eliminate constant turnover and poor production.
4. Define levels of autonomy: During each training session I ask attendees if they know their levels of autonomy. Less than 10% knows exactly what they can and can't do in various situations. Special finance managers should be given guidelines in order to alleviate this problem before it starts. Areas that need clarification include who the person reports to, minimum gross on a per deal basis, authority to hire staff, lender issues, advertising and inventory. Once these areas are defined the process is much easier to manage from a senior management level.
5. Provide Special Finance Manager with Necessary Tools: Often time's new managers are hired and do not have the tools for success. These include an office that is private enough to conduct interviews, computer systems, fax machines, daily inventory list, good lenders, advertising and most of all proper inventory.
6. Require Daily Reports: New finance managers should be explained what reports senior management requires. It is much easier to implement reporting procedures in the beginning than it is later. Often new managers fail to keep accurate reports because they are not sure what management wants or requires.
7. Develop Business Plan: New managers should be instructed to develop a business plan during the first 30 days of employment. Plan should be reviewed by senior management and approved or modified. Once plan is in place it should be reviewed each month in order to monitor success.