My grandfather was a Buick dealer in downtown Los Angeles in the 1950’s-60’s. His majority partner was Charles S. Howard, a pioneer car dealer and early Buick distributor, who turned to horse racing and became internationally known as the owner of Seabiscuit. My grandfather was the CFO at Howard Buick, which was on Figueroa Street, just south of what is now Staples Center (yes, I will always call it Staples).
Even though he passed away before I became of working age, I somehow found my way to following in my grandfather’s career footsteps.
I became a manager quickly in the car business. I started in sales, moved to accounting office management (when I asked the controller for more work because sales was boring), and I helped open a new store as the Operating Officer. Then, a friend called me to say he was opening a dealership and asked if I could join them. We opened the dealership with myself, my friend and a few salespeople and technicians. I worked in every job position in that store (except technician), and often worked 7 days a week.
I used to joke about how I had a hand in every step of the sale: I ordered the forms, sat in on advertising meetings, ordered cars, sold them, desked them, papered them (F&I term), washed my own deliveries, followed up with the customer, posted the deal to accounting, managed the deal funding (to the point of often visiting the local captive lender’s office) and filed the deal jacket in the cabinet.
The same was true for service and parts. Today, when I talk about the “blood, sweat and tears” I experienced, it’s not anecdotal.
I’ve always had a sixth sense about dealership profitability.
I was describing this phenomenon to someone the other day: it’s not something I learned – but something I guess I was born with. It took me a long time to figure out why certain opportunities were not available to me when they were for my male counterparts (and even some of my subordinates). I am a Los Angeles native, inclusive in my thinking, and my parents always taught us to be strong, self-sufficient women, so with this lack of opportunities for females in car dealerships, I believe I was subconsciously minimizing it in an effort to cope.
But what I did know then, as I know today, is that women like me make a huge impact on car dealership management and I sincerely want the culture to favor women more. We do bring a lot to the table.
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Impact of Female Leadership in the Automotive Retail Industry
How does female leadership shape operations, especially the organizational environment?
How do automotive female leaders influence decision-making processes, drive innovation, and cultivate a more inclusive and diverse workplace culture?
Influence on business operations
Female leaders often introduce new management styles that emphasize collaboration and communication, which often lead to more cohesive team dynamics and improved problem-solving capabilities.
“Wait. Are you saying the sales floor can still be competitive without being adversarial?”
- In a competitive sales environment like a dealership showroom, where salespeople view their fellow team members as adversaries, this behavior can indeed spill over into customer interactions. This phenomenon is supported by several studies and analyses on sales behavior and internal marketing.
“You mean it’s possible to have a more balanced approach to retail operations? Where people can work less than 60+ hours per week without sacrificing their income and their mental health?”
Approximately 71% of employees consider work-life balance crucial when searching for a new job, often ranking it above compensation and growth opportunities (Clockify). Women are likely to implement policies that focus on employee well-being, work-life balance, and ethical business practices, leading to enhanced employee satisfaction and retention.
Driving technological advancements
Women in leadership positions have the potential to drive innovation by bringing diverse perspectives that challenge traditional approaches to technology and product development. (Do you know anyone else besides me who’s written a book on AI in auto retail?)
Female leadership encourages a more thorough understanding of market needs, particularly in demographics that might be underrepresented in both automotive design/functionality and in the vehicle purchase or service experience.
Cultivating workplace culture
Female leaders often prioritize creating an inclusive environment that values diverse opinions and backgrounds. This leads to a more engaged workforce and a culture that supports creativity and innovation.
I’ve spoken before about my time working in Beverly Hills at a particular high-line store. We were number one in sales, service, parts and CSI. We could not have achieved that without a culture that included all the voices in the dealership – from our “lot gentlemen and ladies” to senior-level managers.
Women tend to be more open to implementing anti-discrimination policies, training programs, and initiatives that promote gender equality and diversity, which enhance the organization’s reputation and attractiveness as an employer. This is not to say that men are not open to updated policies, they just possess alternate implementation drivers.
- Male Leaders generally support the implementation of anti-discrimination policies as a means to ensure compliance with legal standards and improve organizational reputation. They may view these policies as part of a broader strategy to mitigate risks and enhance corporate governance.
- Female Leaders advocate for anti-discrimination policies as essential tools for creating a fair and equitable workplace, which attracts the talent needed to achieve sales goals. Women often emphasize the importance of these policies in addressing systemic issues and providing equal opportunities for all employees, thereby creating a positive workplace with less obstacles impeding success.
Shaping decision-making processes
Females in auto retail typically incorporate a more consultative and participative decision-making process, which not only enhances transparency but also ensures that a broad range of employee insights is considered.
This inclusive approach to decision-making often results in more well-rounded and effective business strategies that are responsive to rapidly-changing market dynamics.
Enhancing customer engagement
With a focus on understanding and meeting the needs of a diverse customer base, female retail automotive leaders can help tailor products and marketing strategies to better appeal to various consumer segments, including women, who are a significant (ie: the majority) demographic of car buyers.
Women buy 54% of the cars in the United States, and influence 84% of all vehicle purchase decisions. Yet most women dread the car buying experience, with good reason. Study after study shows that women are often ignored, patronized and/or charged more than men when buying a car.
When it comes to getting their vehicle serviced, women dislike dealership service departments because of a failure to meet their needs. The National Institute for Automotive Service Excellence states that women represent between 65% and 80% of automotive service customers. This means the female customer experience is directly related to service department revenue.
Transforming automotive retail under the guidance of female leaders
The presence of women in automotive leadership roles is not just about promoting gender balance but about leveraging their unique perspectives to drive the industry forward in innovative and socially responsible ways. This transformation under the guidance of female leaders can significantly impact everything from the product developed to the way cars are marketed and sold, to service and repairs, ultimately influencing the industry’s long-term sustainability and success.
Strategies for creating an inclusive culture in car dealerships
The auto retail industry has been slow (or perhaps stuck) in shifting the prevailing male-centric culture within car dealerships towards a more balanced, inclusive and supportive environment. We need a shock to the system that actively encourages the participation of women in all aspects of daily operations, ensuring that they are not only included but also appreciated for their contributions.
Leadership commitment
- Top management should visibly support and drive the cultural change. This involves clear communication about the value of diversity and the expectations for an inclusive environment.
- Leadership training should incorporate diversity and inclusion principles to ensure leaders are equipped to manage and promote these values.
Policy revisions
- Review and revise existing policies and procedures to eliminate any gender biases. Ensure that hiring, promotion, and compensation practices are fair and transparent.
- Implement policies that specifically protect against harassment and discrimination, creating a safer workplace for everyone.
Diversity training
- Conduct regular training sessions for all employees that focus on diversity, inclusion, and sensitivity. These programs should help employees recognize unconscious biases and understand the importance of a diverse workplace.
- Promote an understanding of different perspectives and the benefits of a diverse team through workshops and interactive sessions. Offer spiffs or perks for team members who excel in these initiatives. Keep in mind that we are trying to change something that’s literally part of dealership DNA.
Mentorship and support networks
- Establish mentorship programs where experienced leaders, regardless of gender, mentor female employees. This can help women gain valuable insights and build networks within the company.
- Support the formation of networks and groups for women in the dealership to share experiences, offer support, and foster professional growth.
Inclusive recruitment strategies
- Determine staffing goals for each year, including an increase in the ratio of females to males.
- Use inclusive language in job descriptions and ensure that the recruitment process is welcoming to women. Consider using platforms that target women in the automotive industry.
- Partner with organizations and educational institutions that advocate for women in automotive careers to widen the recruitment net and show the dealership’s commitment to diversity.
Work-life balance
- Provide flexible work arrangements such as remote work options, flexible hours, and family-friendly policies. This not only supports women but is a benefit that all employees value.
- Ensure that these policies are actively promoted and utilized without stigma.
- Real life examples: Most of the work I do is done remotely. I’m happy to travel if it’s imperative to the success of the project, however, remote saves money and time and it’s proven to be just as effective – and often more effective – than traveling to dealerships across the country.
- I just completed a project where I provided an accounting and expense control/benchmarks assessment to a dealer several states away from me. The controller was instrumental in providing me the reports I needed and she cheerfully answered my questions.
- I completed the assessment and delivered the report. The dealer was pleased as the information I provided mirrored what he and his CPA believed about the status of the store. The dealer asked me, “How were you able to determine all this without being here physically?” I said, “When you’ve worked hundreds of cases, seen certain patterns and behaviors, and know the right questions to ask, the answers easily reveal themselves.
- Counterpoint: I recently had a potential client require that I work onsite 3,000 miles from my office.
- It was for one-on-one coaching/training for a dealership controller who had never received any training for her job. This is the type of work I love.
- I shared the stats on in-person vs remote with him, illustrating that remote was more cost effective and often had better outcomes as it isn’t as disruptive to daily operations. The client still maintained that he needed someone onsite everyday.
- I respectfully declined the project, simply because spending 30+ days away from my home and business was not possible for me.
- FACT: There are already massive shortages of dealership accounting experts and requiring mandatory travel for long periods of time likely shortens that list to zero.
Recognition and inclusion in decision-making
- Actively involve females in decision-making processes and strategic meetings. This inclusion not only makes them feel valued but ensures diverse perspectives are considered in business decisions.
- Recognize and celebrate the achievements of female employees regularly to boost morale and demonstrate their valued contributions to the company.
Cultural change initiatives
- Host regular events and meetings to discuss the progress of inclusivity efforts and gather feedback from employees on the workplace environment.
- Celebrate diversity milestones and cultural events that emphasize the importance of an inclusive workplace.
By implementing these strategies, car dealerships can create a more inclusive environment where women are not only present but are active, valued participants in all aspects of the organization’s operations. This shift is a welcome benefit for female employees and it also enhances the overall workplace culture, leading to improved performance and customer satisfaction.
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