Academy of Excellence
The Academy of Excellence is a 4-day development program for Dealer Principals, Financial Controllers, General Managers and Managers marked for succession.
Operating a dealership is an exceptionally complex operation. This program is designed to give participants a more ‘all round knowledge’ on the things that matter in a dealership. It provides an overview of the financial dynamics of a dealership, the key drivers of profitability and the financial interrelationship between dealership departments. The Academy then takes a detailed look at each of the departments and addresses the key profitability drivers for each department and best practice actions to achieve these profit targets. Our industry experts address current industry challenges and use the comprehensive Deloitte benchmarks and current best practice to provide practical solutions for your Dealership.
The aim of this program is to equip attendees with the knowledge and tools to:
- Analyse a dealership to realise its current situation and what is possible
- Develop an understanding of each department, the operations and key KPIs that will make an impact and drive profitability.
- Identify areas of opportunity in each department and develop action plans to address those areas
- Develop a basic understanding of dealership accounting
This is a practical, actionable program that is based on actual dealership experiences and practical solutions which participants can implement in their dealerships.
After attending the Academy of Excellence, participants will have an understanding of:
- The financial dynamics of a dealership, including:
- The ideal contribution from each department and the impact of how getting this wrong will affect the bottom line
- How to analyse a dealership using benchmarks and industry composites to:
- Identify areas of opportunity within the dealership and develop action plans
- Identify and isolate areas of concern and establish corrective measures
- The key KPIs that will drive profitability in each department
- The operations and best practice actions in each department
- The financial management of a dealership, including :
- How to improve cash flow and expense management
- How to increase profitability in all five businesses within your dealership
- Dealership fraud, what to be aware of and how to detect and prevent it
- The importance of an effective CRM system and how to maximise CRM activities for improved customer retention and new customer uptake
- The opportunity to share best practice ideas and network with other participants
A. The financial dynamics of a dealership
- The ideal contribution from each department to maximise return on investment
- The impact on the dealership bottom line of getting departmental contribution wrong
- The implications of not optimising all opportunities
B. Introduction to benchmarking using profit focus data
- Where do the financial numbers come from?
- How to interpret a Profit Focus report
- What are benchmarks and how can I use them to:
- Identify good from bad numbers
- Compare a dealership as a whole and as individual departments to benchmark dealers to realise potential and what is possible
- Identify areas of opportunity within the dealership and its departments
C. The big picture case study
- This case study is based on an underperforming dealership. Each group will use benchmarks to analyse the dealership to calculate the current contribution from each department, identify areas of opportunity and calculate the dealership’s potential if it was a benchmark dealer.
D. New Vehicle Department
- Strategic objectives in the new car department
- Exercise - Breakeven analysis
- Importance of maximising gross profit
- Managing key costs and stock
- The new road to a sale
- Maximising your Lead Management
- The changing nature of the new vehicle market
E. New vehicle case study
- This case study is based on the new vehicle department of the underperforming dealership. Each group will use the benchmarks to identify areas of potential within the department and utilise what they have learned to develop a strategy and action plans to rebuild the new car department.
F. Used Vehicle Department
- The current market and trends for the used car department
- Understanding the fundamentals of the used car department
- What is ROI?
- ROI for total stock and one car
- Holding costs per unit
- Gross V Holding Costs
- Ideal stock mix
- What to stock
- Pricing Stock to sell it
- What does the future hold for used cars?
G. Used vehicle case study
- This case study is based on the used vehicle department of the underperforming dealership. Each group will use the benchmarks to identify areas of potential within the department and utilise what they have learned to develop a strategy and action plans to rebuild the used car department.
H. The importance of customer retention
- The cost of a new vs repeat customer
- The CRM Funnel
- Maximising the investment from your CRM activities in each department
- The importance of service retention.
I. Service Department
- Service process and basic operations
- Assessing potential and key KPIs in the Service Department
- What your service managers should be doing
- What benchmarks should you set for service?
- Best practice actions in the service department
J. Service case study
- This case study is based on the service department of the underperforming dealership. Each group will use the benchmarks to identify areas of potential within the department and utilise what they have learned to develop a strategy and action plans to rebuild the service department.
K. Parts Department
- Understanding the parts department
- Assessing potential and key KPIs in the parts department
- Internal and external parts sales
- What benchmarks should you set for parts?
- Best practice actions in the parts department.
L. Parts case study
- This case study is based on the parts departments of the underperforming dealership. Each group will use the benchmarks to identify areas of potential within the department and utilise what they have learned to develop a strategy and action plans to rebuild the parts department.
M. Finance and Insurance Department
- Understanding the F&I department
- Find out what drives this highly profitable department
- Assessing potential and key KPIs in the F&I department
- What does the future look like for F&I?
N. The Balance Sheet and Dealership Cash Flow
- Understanding your balance sheet
- Don’t let the 13th month surprise you
- How to better manage your cash resources
- Is there hostage cash in your dealership?
- Keeping expenses under control
O. Dealership fraud
- How to prevent and detect it
- Recent happenings in dealership fraud.
P. Bringing it all together
- Review of what has been covered
- Resulting action plans from each participant.
For more information contact our ProfitFocus Training team.