By Loyd Rawls, President & Chairman, The Rawls Group
After several unproductive and frustrating coaching visits with Jimmy, I was returning and also meeting with his dad, Robert, a succession planning client for several equally frustrating years. Robert, the second-generation owner of the five-dealership, midwestern group, had engaged us primarily to help matriculate his children into dealership management and leadership. Over the last 18 months we had addressed a diversity of very important succession planning issues but as Robert had initially forecasted, preparing his oldest son for management and leadership was a formidable task. To that point, I had asked Dr. Merlot to be my wing-man on this visit to help me iron out what appeared to be some very formidable wrinkles.
“Hi Robert,” I greeted stretching out my hand for a hardy shake. Being the ultimate host and politician Robert ingulfed my small frame in his big hug.
“Great to see you, Loyd. Welcome to our fair city!” Then in a chuckling jibe, he continued, “Who’s this old fart you have in tow? Oh, I recognize him, it’s the headmaster of hangover, Dr. Merlot! Good to see you!” The 67-year old rotund and jovial Robert offered, extending his hand. “Grip of the Grape to ya Doc,” he greeted with a big smile.
“Thanks for the hospitality,” Doc acknowledged, “May the grape be with you,” he continued with a bowing reverent tone.
Responding to Robert’s gesture, we sat down across from the big desk and after a few more pleasantries we moved across the spacious office to his conference table. “So, Robert, Doc and I have a coaching session with Jimmy this afternoon and I wanted to drop by to see how things are going.”
“Well, Loyd for the most part, I am doing fine and the part of me that’s not doing fine is what you are doing this afternoon. Chevy is giving me hell about Jimmy. Not only will they not approve the stock transfers that you guys have promoted, but they have also put him on notice that they would not approve transfers to him from my estate. They are mighty upset with me, him, and I suppose our whole management team. I don’t get it!” he expressed shaking his head in frustration. “We do great with Ford, Subaru, and all the other franchises.”
“Yes, I know that is frustrating,” I responded. “I heard about the letters and I know that as a Chevy dealer for almost 75 years, you are at your wit’s end. I am meeting regularly with Jimmy trying to change the tide. At this point, I really cannot offer you significant encouragement other than to say I think he is listening.”
“By God, he better be listening!” responded Robert venting his frustration. “Up until recently that store was our profit leader and now, we are working like hell to break even. It’s bewildering! Doc you have any thoughts?”
I was pleased Robert asked Doc a question because we needed some straight conversation. However, Robert was very proud, so I did not want the Doc to knock him off his rocker with an emotional hand-grenade. We needed Robert to start leading, not get depressed and give up hope. Doc leaned back, crossed his leg, and began to respond while gazing into his coffee cup as though it was the source of wisdom.
“Robert, you know that I never decline a glass of wine or a question,” Doc responded with a smile back at Robert. He then took a deep breath and continued, “This ship was sinking before Jimmy ever came aboard and you appointed him to be the captain of a battleship that he was not a qualified first mate.”
Robert just stared at Doc for a moment dumbfounded, and then looked over at me raising his open palms in confusion and wonderment. “Loyd, could you translate?” he pleaded.
I quickly jumped back insisting, “Doc, English! Straight talk. Dispense with the metaphors.”
Doc seemed put-out as he predictably thought everyone could speak the ‘merlot’ dialect. After a few seconds, he gathered himself and refocused on Robert. “Yes, going back 10 years, Chevrolet was a big earner, but the entire world, especially Chevrolet knew where you were making your money; pimped up used trucks. However, the market was growing every year, and without even trying, your renegade, disrespectful sales manager sold enough new cars and trucks to keep Chevy off your back. About two years ago the market stopped expanding, and Chevy started to rip your butt because apparently, you had forgotten how to market and sell. About a year ago, you fired the renegade, felt it was time for you to retire, and against Chevy and Loyd’s recommendations, put Jimmy in as the GM. Having been a disciple of the renegade you fired, under Jimmy’s oversight, the culture of the store did not change, and the performance of the store continued in free-fall.”
Doc paused briefly to let Robert absorb what he said and then continued, “I know you are an optimist Robert, but in all due respect, if Jimmy had turned that store around, it would have been a miracle that should be reported to the Vatican.”
“Doc!” Robert responded in rebuff. “As usual, you are blowing things out of perspective to fit your narrative. Jimmy had been working in management for 20 years. He attended all the schools, and he had been a successful GM of the Subaru store. I don’t think this is Jimmy’s fault. That Chevy store may be cursed.”
“Yes”, blurted Dr. Merlot, “It’s cursed because Jimmy’s the GM. And if you don’t step up and start leading with the right purpose, you are going to lose the store!” responded Doc without hesitation. “He was a successful GM at Subaru, but what you overlooked was for the year and a half he carried that title, he rarely came out of his office because he was obsessed with the internet. The demand for the product was so high that you were getting full sticker plus all the floor mats you could stuff in the trunk.”
Robert was at a loss for words. Pondering the brash comments, he walked over to the nearby bar and poured himself another cup a coffee before returning to his seat. Then looking over at me to avoid releasing Doc’s emotions again, “OK, Loyd. I asked you to coach my son. Are you making any progress? Are you the wrong guy? Is he a brick? What’s the story?” Before I could answer, he started complaining again about Chevy, Pelosi, and the tight economy, apparently trying to divert the discussion from Jimmy.
I am listening to him whine and looking for an opportunity to answer his question, when Doc just stopped him in mid-sentence, “Robert, at the current pace of change there is not enough time to teach Jimmy how to manage that store. He spends more time telling us the things he is not willing to do than what he will do. And two things he has made it clear he is not going to do is work 50 hours a week and spend time at the desk.” Doc paused for a moment to gather his thoughts and continued, “You need to come to grips with the reality that Jimmy will never be ready to operate the Chevy store. His mind, his speak, his feet do not move fast enough to create a new culture of confidence and competence. If you are going to insist on him being the dealer, you better hire an operator that Chevy will approve and hope we convince Chevy that he can be an acceptable dealer.”
Looking back to me with a sparkle in his eye, Robert was visibly excited, “Hey Loyd, that’s the smartest thing I have ever heard Doc say. Would you see if Jimmy will accept that plan, and if so, we will get to work on finding an operator.”
“Accept the plan!” barked Doc in disbelief. “Who is leading, and who is following around here! How about we say to Jimmy, this is what’s coming down; cooperate or start looking for…”
I knew where this was going, so I interrupted, “Doc I’ve got this! Please let me respond. Robert, good idea. We’ll meet with Jimmy this afternoon and get right back to you. Doc, zip it. Let’s go.”
What’s the moral of the story here?
If you are in a position of leadership – lead. Your people are looking for someone to set the culture, drive a plan with purpose and lead them to the promise land.
Are you being honest with yourself when you evaluate your people or making excuses because they are loyal or family? Take a hard look to see if you have the right people, in the right places, and if not, it doesn’t necessarily mean you have to let them go, but you may need to strategically recruit around them for you, their, and your organization’s success.