How Dealership Performance Circles Drive Culture and Success

Performance and Culture at a Dealership

In every dealership, the performance of salespeople can be visualized in three concentric circles that represent distinct groups. These groups not only reflect the sales performance but also play a significant role in shaping the culture of the dealership.

The Three Performance Circles

1. Top Performers (Top 10%)

   • Description: This group is often the smallest in the dealership, sometimes consisting of just one person. These individuals excel in sales and consistently hit high-performance targets.
   • Behavior:
     • They are typically self-sufficient, doing what is required and focusing solely on their work.
     • They have little to no direct impact on the overall culture of the dealership unless actively engaged.
   • Impact on Culture: Neutral by default but can be a powerful positive influence if involved in training or mentoring others.

2. Average Performers (Largest Group – Heart of the Dealership)

   • Description: The majority of the sales team falls into this category. Within this group, there are subgroups with varying motivations:
     • Aspiring Top Performers: Those striving to move up to the top tier. They are worth your time and effort.
     • Steady Performers: These individuals consistently show up, do the work, and contribute to the dealership’s success.
     • Easily Influenced Performers: These are stuck between average and below-average performance. They are susceptible to influence, often from negative peers, which can lead to a decline in their performance.
   • Impact on Culture: This group determines the overall culture. Positive influences can elevate the dealership, while unchecked negativity can cause significant harm.

3. Below-Average Performers (Smallest Circle)

   • Description: Often just one or two individuals. They consistently underperform and harbor a negative attitude toward the dealership and their work.
   • Behavior:
     • They frequently blame external factors (e.g., lack of traffic, the dealership itself) for their poor performance.
     • They aim to pull others down, especially from the average group, to avoid being isolated in their misery.
   • Impact on Culture: Highly detrimental. These individuals can amplify negativity and consume disproportionate management time and resources. Addressing this group should be a top priority.

Key Dynamics Within and Between Circles

1. Top Performers and Their Role:

   • Rarely interact with or influence others unless actively encouraged to do so.
   • When engaged in training or meetings, they can inspire and elevate average performers.

2. Average Performers – Internal Dynamics:

   • Positive Influencers: Some average performers genuinely want to help their peers improve, but they may lack the skills or authority to do so effectively.
   • Negative Influencers: Others in this group may foster resentment or negativity, blaming top performers or management for perceived inequities.

3. Below-Average Performers’ Influence:

   • Their negativity is infectious and can pull average performers down into their mindset.
   • Positive efforts to help these individuals often backfire, as they resist change and drain energy from those trying to assist.

4. The “In-Between” Groups:

   • The individuals between average and below average or between average and above average are critical.
   • They can either elevate the dealership’s culture by striving for improvement or harm it by dragging others down.

Managerial Insights and Strategies

1. Remove Negativity Quickly:

   • The below-average performers who resist improvement and spread negativity must be addressed immediately. Their presence can have an outsized impact on the dealership’s culture.

2. Identify Key Influencers:

   • Focus on the small circle between average and above-average performers. These individuals have the potential to either positively or negatively influence the broader team.
   • Encourage and empower those who show a genuine willingness to help others improve.

3. Leverage Top Performers:

   • While they naturally focus on their work, involving them in training sessions or team meetings can inspire others and foster a culture of excellence.

4. Align Everyone Toward Improvement:

   • The ultimate goal is to have all circles pulling in the same direction—toward above-average performance.
   • This alignment creates a culture where individuals strive to improve while supporting one another.

5. Invest in Aspiring Performers:

   • Time and resources should be directed at those in the average group who show the desire to improve. These individuals are most likely to deliver a positive return on investment.

Final Thoughts

The culture of a dealership is a direct reflection of the attitudes and interactions within these performance circles. By understanding these dynamics and proactively managing each group, dealership leaders can create an environment where everyone is motivated to improve, negativity is minimized, and the overall performance of the store consistently grows.