Texas turnaround: New owner arrives; staff thrives
Photo credit: TONY VALADEZ FLASHBOX PHOTOGRAPHY
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Automotive News -- October 18, 2012 - 12:01 am ET |
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ReprintsPLANO, Texas -- In 2009, his first year working at Jaguar Plano in suburban Dallas, service writer Garry Shewbirt could see the dealership's business slowing. The store was embroiled in a legal dispute with Jaguar, which had accused the owner and some employees of warranty-claim fraud.
"I was on the verge of looking for something else because I didn't know what was happening," Shewbirt says.
Then in May 2010, Park Place Dealerships bought the store. Employees saw the new owner spend $1 million on a sparkling new showroom and other renovations. In the shop, broken machines were repaired and new tools and equipment were added, speeding repairs. Workers were sent to training classes, including technicians who previously had paid for some of their training out of their own pockets.
"It helped get this place rolling again," says Shewbirt, now lead service valet, where he oversees four employees. "Business picked up. It's like the environment changed. Instead of everybody being their own person, the team came together."
Just more than two years after Park Place acquired the store, the turnaround is clear: Jaguar Plano ranks No. 1 on Automotive News' list of the Best Dealerships To Work For. For Park Place Chairman Kenneth Schnitzer, the ranking validates a business model that he says revolves around employees.
"It's important to take care of your people because they're the ones who get the job done every day. They interface with the clients; they repair the cars," Schnitzer says. "You can have the prettiest buildings in the world and the best cars in the world, but if you don't have people who are knowledgeable and well trained to deliver outstanding client service, then you're wasting your time."
Schnitzer, who bought his first dealership, a Mercedes-Benz store, in 1987, now runs a group of 16 luxury-brand dealerships in Texas and Nevada.
During Schnitzer's regular Saturday stops at the store, his attention to detail ranges from pointing out worn-looking equipment that should be replaced to making sure the electrical cords under desks are tidy enough, employees say.
And Schnitzer has a trademark question he asks every employee he sees on those visits: "What else can I do to help you do your job?" Some take him up on the offer.
Photo credit: TONY VALADEZ FLASHBOX PHOTOGRAPHY
Parts Manager Angela Adams recalls Schnitzer saying, "Get what you need," after she told him that her warehouse was too small to hold her parts inventory. They got a storage container to go on the back lot for those extra parts.
"I hit him up quite frequently," Adams says. "It's always for stuff that's truly needed. And he's very supportive if it's going to make our jobs easier and help us be more productive."
That philosophy is mirrored in the dealership group's approach to training.
That was central to Adams leaving her prior job to join Park Place in July 2010. She says she always wanted to work for Park Place in part because "the training is insane."
"Most dealerships are not known for having long-term employees. It's sort of a revolving door," says Adams, who aspires to be a fixed-operations director. "Park Place has a reputation of long term, and you can truly, truly have a future in the automotive industry with Park Place."
Each month Park Place typically gets 8,800 applications for 25 to 60 openings, says Sherry Miller, Park Place vice president of human resources.
Though Park Place is known for competitive pay and benefits -- it offers health insurance on the first day of employment, a rarity among dealership groups -- the training and career opportunities are a bigger draw, Miller says.
About 98 percent of managers are developed from within, Miller says. New hires get about 160 hours of training during their first year and 50 hours annually thereafter, including training provided by the manufacturers. Employees deemed to have management potential get additional leadership training.
"It says something about your organization when you're able to put your money where your mouth is," Miller says. "This is what we're all about. We have a career path we promote. This is proof. Here is where you can go if you put your mind to it and perform."
Jason Feuerberg, new-car sales manager at Jaguar Plano, is a good example. He started as a porter at a Park Place dealership in 1997 while in college.
"They allow you to grow," says Feuerberg, who wants to be a general manager someday. "I came from what you'd consider the bottom and have moved my way into management. At some companies, that's difficult to do."
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Says Jason Feuerberg, who began as a porter and worked his way up to new-car sales manager: “They allow you to grow.” Photo credit: TONY VALADEZ FLASHBOX PHOTOGRAPHY |
Customer focus
Feuerberg also says his job satisfaction is increased because he has been empowered to do the right thing for customers. Nonmanagement employees at Jaguar Plano get $150 to spend quarterly to resolve customer concerns. And with management approval they can fix problems that cost more.
In June, a customer returned with the used car he recently had bought complaining about a scratch on the bumper. Instead of arguing about the origin of the scratch, Feuerberg authorized the $200 repair on the spot.
Standing in the dealership's showroom on a quiet August morning, Feuerberg recalls another recent complaint that cost the dealership a bit more. A first-time customer who lives three hours away reported the service lights activating in the used Jaguar he had just bought.
General Manager Mike Cuzzo authorized sending a tow truck to the customer's home to drop off a loaner vehicle and haul his vehicle back to the dealership for repair. It cost the dealership $1,000 for the tow truck, plus the expense of repairing the shorted-out wiring that was causing the problem. The customer "was shocked" by the responsiveness, Feuerberg says.
"The philosophy is, if the client needs help, you help them," he says. "We make sure the clients come first, and that comes down from the senior leadership team."
To reinforce the philosophy, employees are sometimes surprised with spot rewards such as a $50 gasoline card for doing the right thing for a customer.
Parts manager Adams' loyalty to Park Place was cemented after she was diagnosed with thyroid cancer just two months after being hired.
Managers quickly allayed her initial fear that her job might be jeopardized by the absences required for treatment. During treatment, Adams and her family received a flurry of cards, texts, e-mails, flowers and food from colleagues. And she had as much flexibility as she needed for follow-up doctor visits.
"It was amazing," says Adams, whose cancer is in remission. "I know a lot of people who have gotten ill. I have never seen the support with anyone that I got from this place, especially being on the job for two months."
Technician David Woodard experienced that compassion when his wife required treatment for breast cancer in 2011. He was able to take the time off he needed to take her to doctor appointments and care for her after surgery.
Employees at Park Place dealerships raise money for fellow employees in need. The Jaguar Plano staff recently pitched in to help cover funeral expenses after a colleague at another store was killed in a motorcycle accident. Employees at Jaguar Plano also volunteer together at a nearby homeless shelter.
Photo credit: TONY VALADEZ FLASHBOX PHOTOGRAPHY
More work, more loyalty
Recognizing employees is important, Miller says. The dealerships hold frequent celebrations. Cash awards are given to department members of the month, quarter and year. Employees get birthday and anniversary cards, plus occasional thank-you cards for going above and beyond.
Those soft touches help employee loyalty. But the dealership's improved performance since the Park Place acquisition may be the most important retention tool in the eyes of longtime employees at the once-troubled store.
Woodard, 60, says he was afraid for his job during the sale. He and other technicians, along with the then-owner and some managers, had been named as co-defendants in Jaguar's lawsuit alleging warranty fraud. But the dispute was settled just after the sale, according to court documents. Park Place kept Woodard and other technicians who were exonerated.
Woodard, who has worked at the dealership for 10 years, says the shop now is taking on more jobs, turning them faster and generating more income for technicians. He saw repair jobs increase after Park Place management brought in a new machine to repair air conditioning, added diagnostic equipment and installed computers and printers in every service bay.
He also points out how a new nightly cleaning crew keeps the shop -- and customers' cars -- cleaner.
"It's better for all of us," Woodard says, "and it gets customers their cars back sooner."
You can reach Amy Wilson at awilson@crain.com.
