Playing a proactive role
MSX is helping a leading OEM reinforce and strengthen the performance of its Asia Pacific-based dealer network with a comprehensive, face-to-face dealership consulting program.
It includes dealer coaching to equip employees with a better understanding of the business, and dealer performance improvement programs (DPIPs) which involve deep-dive discussions.
MSX helps dealer staff to take a more proactive role in business management and performance, helping them to understand issues and opportunities, develop action plans, and set priorities. MSX technology, Insight BM, generates financial reports that help the team identify which dealers need the most support and in what areas of business.
Creating informed decisions
The OEM wanted to educate dealer employees on how to use business management data to drive performance.
Employees understand their roles, but don’t always know how to prioritize the often-overwhelming numbers of tasks they undertake. The organization understood that by making information such as financial data and key performance indicators (KPIs) easier to access and more transparent, employees would better understand how their decisions and actions can influence different areas of the business.
The OEM turned to MSX to help employees understand operational, financial, and management information, and to teach them how to interpret the numbers that support the business. The team identifies dealerships that need the most support, and then empowers employees with information, helping them make more informed decisions that drive performance.
Giving dealers direction
MSX deployed its Performance Consulting Program within the organization in 2021.
It includes an educational component, in which the MSX team offers face-to-face consulting to educate dealers and middle managers on the foundations of KPIs and how they affect performance. In addition, MSX dealer performance improvement programs (DPIPs) offer employees an additional four meetings a year. During these sessions, the team performs an in-depth examination of the dealership’s performance and KPIs – from financial KPIs to process, satisfaction, and people-related KPIs – and identifies issues and opportunities. The program’s competence enhancement element helps the team create highly targeted action plans and set objectives, which are measured for effectiveness and adapted later if needed. The team also trains staff in managing expenses and operational assets with greater efficiency.
The MSX Insight BM platform supports the program by generating performance reports that enable the team to identify the dealers they need to focus on, track KPIs, and monitor the outcomes of dealers’ activities.
Key Components of the Consulting Program
Thorough Performance Analysis
Actionable Insights
Competence Enhancement
Discipline and Focus
Expense Management
Asset Optimization
Observations and Results
Dealerships enrolled in the consulting program exhibit notable improvements compared to their non-engaged counterparts.
Discipline and Focus
Financial Resilience
Balanced Contribution
Expense Management
Supporting stronger dealerships
The OEM has seen a considerable improvement in performance across its networks.
Better financial insight has enabled the delivery of targeted, customized strategies for improvement precisely where they’re needed. Stronger business understanding and common goals have helped improve relationships between the OEM and dealers, and upon experiencing the benefits to their teams, many dealers have become advocates of the program, bringing it to a wider audience within the network.
With the layers of education now in place, the OEM and its dealers are fully prepared for peaks and troughs in performance, and the OEM has already been able to mitigate losses throughout the unfavorable economic periods of the last few years. In fact, enrolled dealers have achieved some significant improvements, and while those not taking part in the MSX program have seen a decline in some areas, the organization has still managed to protect and increase its overall return on sales (ROS).
Impact on Dearlership Network Health
Fast facts
Customer: Leading automotive manufacturer
Business Challenge: Consultancy and coaching help dealer employees gain financial and operational knowledge to improve network performance.
Geographical coverage: Asia Pacific
Solutions implemented: MSX Performance Consulting Program, supported by Insight BM
Enrolled dealers have become
more resilient.
Enrolled dealers improved ROS by
1% in 2022 and in 2023.
Enrolled dealers have increased
fixed operation absorption.
Enrolled dealers have become
more resilient.
Enrolled dealers improved ROS by
1% in 2022 and in 2023.
Enrolled dealers have increased