When you acquire a dealership, you will want to manage it according to the principles and procedures that have been successful for you up to this point. Often the best people to execute on this are the managers who have helped you to get to this point, and who are already working for you in your current locations. But how do you avoid the problem of spreading your management talent too thin when there’s an extra rooftop to add to your domain?
A big challenge presented by an acquisition is having enough skilled managers on hand to run your new location, along with your existing points. Yet the opportunity here is that, by expanding your portfolio, you can put efficiencies in place that allow your dealerships to be competitive on pricing or more aggressive on marketing while growing you profit margins.
The best way to manage your talent toward these goals is to have an ongoing process in place to train, retain, and promote your best performers with the right skills into management roles. This process needs to start long before you make an acquisition.
Once that this process is in place, you can develop a “deep bench” of managers who can be “called up to the majors” when an opportunity presents itself. Today’s salesperson can become tomorrow’s operations manager, with some time, attention, and training. Promoting from within tells your motivated employees that there is an established path to better opportunities when they stick with you. It’s not only good for your business, it’s also better for your employees who have the desire to succeed and advance, so this approach can improve the performance of your team.