In the first of our two-part series, we present an Insider’s View of how to get the best results from a Performance Group
The first time I attended a Performance Group, or 20 Group as they are sometimes called, I was the youngest General Manager in the room by far.
I showed up far too early of course, sat down in front of my name card and started to get things out of my laptop bag. The moderator was still setting the room up and seemed slightly annoyed by my eager over-punctuality. He strongly advised me to go grab a coffee and some breakfast in the hallway.
As I fumbled around with the scrambled eggs and bacon, the hallway started to fill up with more attendees. Many of these people were in sharp sport coats and suits, had graying hair at the temples, and watches that cost as much as my company car. They all knew each other and seemed excited to trade industry gossip and war stories. I wasn’t ignored, there were handshakes and introductions, but it was clear I had some catching up to do with this crowd.
Lesson #1 – Know the room before you get there
Review the list of dealers attending the meeting. See where they are from and what brands they represent. Identify dealers who may be good comparables in terms of size, brand, market and seasonality. This will help you find people that are going through some of the same challenges you are facing as well.
With the hotel breakfast dispatched, we were finally allowed into the meeting room.
Identify dealers who may be good comparables in terms of size, brand, market and seasonality. This will help you find people that are going through some of the same challenges you are facing as well.
At my assigned seat I now found a thick coil-bound book, plastic ruler, lined notepad, and a funky highlighter / pen combo thing. It appeared that school was about to be in session.
As everyone else continued to rap with each other, I opened the performance group book, which I quickly learned had a very serious sounding name: “The Composite.”
The pages were peppered with an incredible amount of columns, lines, and numbers. As I flipped through, I became instantly worried that I wouldn’t make any sense of it at all. Luckily, I soon deduced that the columns were the individual dealers and lines were different key performance metrics, some of which I had heard of, and many I had not.
Lesson #2 – Study and do your homework
Often, the performance group composite is sent out in advance or available online before the meeting.
Make sure you take some time to review it and highlight areas that your dealership has some opportunity to improve. This will help you speak confidently to these points and ensure you draw on the group’s experience for help. As you progress through a few meetings, you’ll get more adept at the often discussed points and also learn how to quickly look for supporting information.
The moderator called the meeting to order and announced me as a new member. I introduced myself and my (then) limited history in the business. There were muted nods of welcome and then the agenda was reviewed.
We would tackle fixed operations today and variable tomorrow. There was an oddly long conversation about the group dinner that night and how many people were going to come. One participant made a point of letting everyone know he thought we should try some place new instead of the “same old steakhouse.” I was just excited at the prospect of sharing a meal with all these accomplished people.
Lesson #3 – Maximize the group dinner
The group dinner is a great way to get to know your performance group partners in a more casual and unstructured setting. It also allows for follow up conversations about ideas and topics brought up during the meetings.
Sometimes you can get some helpful information one-on-one that perhaps someone was shy about bringing up in front of the whole group, or the opportunity didn’t come up.
Just make sure to watch your wine consumption as well as the clock. You want a good night’s sleep and a clear head for the next meeting day.
Tune in next issue for the second half of Performance Group 101, where I explore how to get the most out of the meeting and bring effective change back to the dealership.
