Chief Learning Officer - January 2008 - (Page 47)

case study a dealer’s sales volume appears low, a detailed report is available to indicate which specific models are selling well and which are selling poorly. To provide a normalized basis for comparison, many of the most critical metrics are scored according to algorithms that take into account dealer size. By normalizing scores in this way, they can serve as a basis for comparing two dealers, regardless of whether they are across town or across the country. Performing some statistical analysis on performance data can help rationalize a scorecard and make clear what is important to measure and score. Chrysler analyzed data from all its dealers. This analysis indicated that the Customer Satisfaction Index (CSI) metric — although a small part of the overall dealership score — is the single performance measure most closely correlated with a dealer’s overall score. Not only is CSI a lever to increase overall performance, but it also provides an important indicator of how satisfied customers are with a dealership’s vehicle service experience. A successful service encounter is a team effort, requiring courteous service advisors to ensure that the visit is convenient and pleasant, efficient parts managers to ensure that the required parts are readily available and skilled technicians to make sure that repairs are completed quickly and effectively. In effect, Chrysler can evaluate the effectiveness of a dealership’s service department activity by using CSI as a proxy, even if it can’t directly observe and manage those activities. Performance-Based Certification Chrysler’s Five Star certification identifies customer-friendly, high-performing dealerships. To attain Five Star certification, Chrysler dealerships must first meet specific requirements in the areas of customer satisfaction, employee training and customer follow-up. For example, Chrysler requires a Five Star dealership to have a certain number of certified individuals. The structure of the certification programs addresses Chrysler’s challenge of not having direct management control over the dealerships. Cascading individual, department and dealership certifications encourages managers to promote training for busy dealer employees who might not be interested in taking time out for training or don’t feel they have the time. Five Star certification can be used as a sales tool by the dealership, which encourages owners and sales managers to ensure that the required dealership employees are certified. Certification also can indirectly influence consistent activities at dealerships by enforcing best practices. Service technician certification requirements can increase the technical knowledge at individual and department levels. The collective knowledge at the departmental level is particularly important when considering the complexity of car repair — obviously, most people CASE STUDY continues on page 52 Since dealerships are not directly owned by Chrysler, the company’s ability to manage day-to-day operations, make hiring decisions and maintain learning programs is limited. 47 January 2008 I www.clomedia.com I Chief Learning Officer http://www.clomedia.com

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Chief Learning Officer - January 2008 Editor’s Letter Table of Contents Imperatives Selling up, Selling Down Strategies Take Five Environment Sips of Knowledge at E. & J. Gallo Winery CLO Profile Productivity UST Global: Opening Employees’ Eyes to New Learning Tactics Applying CRM Concepts to E-Learning Human Capital Capital One: Experiences in Innovation Learning Solutions Macy’s: Using Feedback to Develop One Leader at a Time Case Study Business Intelligence Advertisers’ Index Editorial Resources In Conclusion

Chief Learning Officer - January 2008

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