Dealer Governance, not anymore an option!

Governance

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The crisis and even more the false recovery of last two years, have made it immediate the need of a true company/Dealer governance to be independent of the property.

Several times on this blog, in my opinion, we talked about the real “lack” that affects the medium-large Italian Dealer; the existence of a clear governance, defined and above all totally released from ownership.

It seemed to me that the lessons coming from the crisis, which devastated the sector, plus the weak recovery (I repeat, to me it’s a false one) of the last two years, has taught us nothing.

So many gurus, influencers, “old” wise men and accredited logicians have been bustled among the digital Dealer, the 4.0 workshop and the Lead Generation; forgetting that without solid bases it is like building sand castles.

If we take into account the Dealers that have been rewarded in the last 5 years, considered models of innovation to emulate, they have all miserably failed or acquired by other new Mega Dealers.

Then the question immediately comes: “Those who brought to the closure of these realities, where are now? Well the answer is easy; they are doing damages in other places, using their CV more attractive“.

boss

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But let’s take a step back!

It seems fair that dealers with incomes of tens or hundreds of millions of euros a year, can only be called companies and as such they need a “government” that is as effective as possible.

Administration, HR, Purchasing, Marketing, Commercial departments must be managed by guidelines with adequate objectives and resources; which only a management that is independent of the property can guarantee … as it happens in all companies!

This is the theory, but the practice is very different!

What the “great” entrepreneur does is finding a friend of his friend on the market, who has the great quality of being satisfied with the pretentious role but who cannot move a finger without the “Boss” had already decided everything … and if he doesn’t understand anything about the automotive, so much better!

This is the lack of his sector… a ruling class that is truly such; independent of ownership, focused on the decisions approved in assembly.

How many dealers have given full delegation to their own managers regarding their roles?

And so here it happens that one after the other, all the levels, are managed from people who muddle on just because they are affordable or “of confidence“.

Governance

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Italian dealers are part of that group of Italian SMEs that represent the true Italian industrial handicap because they are anchored to the logic of the owner/boss who cannot leave this position to become a true entrepreneur.

Unfortunately the economic cycles have become very fast, and with more and more expensive and immediate exposures / returns, itÕs easy to find difficulties if one doesnÕt have skilled people in one’s own company.

Are there skilled people around? A lot, and at all levels!

Usually they are people, who being focused on being rather than friendly and submissive relationships don’t chose the right sponsors.

Dealers who care about the future of their companies cannot ignore these skills members, who are the only ones that can let them make the leap in a Governance based on Leadership and flexibility.

Unfortunately, the only skill of the Dealers seems attending conferences and summits with the same people, where people always say the same things in the same way ready to comply with the applauding public (ie the same Dealers).

It is no longer time to commit our resources listening to characters good for all seasons or from the doubtful past.

The Dealer, which in Italy is one of the most complex and strenuous job, needs to be an entrepreneur and give a clear Governance to his structure by relying on a management free to operate with its own objectives and resources.

Until this won’t be implemented, the chances of having leading companies in their sector will be only a mirage!

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