Digital Dealer - August 2018 - 9

A LEADER ALSO UNDERSTANDS THAT IN ORDER
TO GROW ANYONE, HE/SHE HAS TO BE GROWING
THEMSELVES."
and so on.
Key Point: You can only
lead someone as far as you
have gone.
This business along with
most businesses is highly
dependent upon people.
People are the real value in
any company that wants to
succeed. The new market
economy is totally driven by
human capital. You might
not be able to spend human
capital, but it is much more
valuable than all the gold in
Fort Knox.
Too often owners /GMs
do not see what is truly
valuable to their business:
The most important
asset is human capital
Most undervalue experience
Most undervalue
initiative
Most undervalue
integrity
Most undervalue loyalty
Most undervalue
continuing "new school"
education
"I think what coaching is
all about is taking players
and analyzing their ability, put them in a position
where they can excel within
the framework of the team
winning. And I hope that I've
done that in my 33 years as
a head coach."
- Don Shula
Dealers need to understand their employees as
well as themselves better,
so they can understand
their customers in order to

design a work environment
and experience that will
drive higher engagement
and performance. It is fair
to view your employees as
"customers" You motivate
customers to buy from you
by engaging with them,
treating them with courtesy, professionalism and
anticipating their wants and

copy or $480,000 in gross
revenue a year. Can you
easily replace that? I don't
think so.
Human capital is the collection of resources-all the
knowledge, talents, skills,
abilities, experience, intelligence, training, judgment,
and wisdom possessed
individually and collectively

WHAT'S THE POINT
IN TRYING HARDER IF
THERE'S NO ENDGAME
IN SIGHT?"
needs. Well, it's not much
different from those you
manage; you motivate your
staff to achieve at a higher
level through the same exact process. The challenge,
of course, is you must do it
with daily "consistency" not
here today, gone tomorrow.
Many refer to people as
"human resources" and this
in my mind is a derogatory
way to look at things. Are
people no more valuable a
resource than a chair or a
desk? Are they more valuable than a computer?
If your best salesperson
sells 20 cars a month quits
and moves to your competitor; is the impact the
same as if you dropped a
computer on the floor and
smashed it? The computer
can be replaced for $700 or
less, but the person who left
sold 20 cars a month at an
average gross of $2,000 a

by individuals in an organization. These resources
are the total capacity of
the people that represent a
form of wealth which can be
directed to accomplish the
goals of the company thereof embodied in the ability to
perform labor as to produce
economic value.
"There are only three
measurements that tell you
nearly everything you need
to know about your organization's overall performance: employee engagement, customer satisfaction,
and cash flow."
- Jack Welch
To most people, capital
means a bank account, a
hundred shares of Apple
stock, assembly lines, or
steel plants in the Pittsburg
area. These are all forms of
capital in the sense that they
are assets that yield income
and other useful outputs
D I G I TA L D E A L E R . C O M

over long periods of time.
But such tangible forms
of capital are not the only
type of capital. Schooling,
a training course, expenditures on medical care, and
lectures on the virtues of
punctuality and honesty are
also capital. That is because
they raise earnings, improve
health, or add to a person's
good habits over much
of his lifetime. Therefore,
economists regard expenditures on education, training,
medical care, and so on as
required investments in human capital. They are called
human capital because
people cannot be separated
from their knowledge, skills,
health, or values in the way
they can be separated from
their financial and physical
assets.
Education, training, and
health are the most important investments in human
capital. Many studies have
shown that high school and
college education in the
United States greatly raise a
person's income, even after
netting out direct and indirect costs of schooling, and
even after adjusting for the
fact that people with more
education tend to have
higher IQs. Similar evidence
covering many years is now
available from more than a
hundred countries with different cultures and economic systems. The earnings of
more-educated people are

Continued on pg. 10

AUGUST 2018

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