Is a DAC for Me? Proper Motivations and a Willingness to Meet Halfway are Key

It takes a certain type of person to participate in a dealer advisory council. It’s not that one needs to exhibit Clara Barton-level altruism, but it helps to be able to compartmentalize motivation and recognize the opportunity to make a positive impact on the product and service blueprints of the manufacturer that thought enough of you to extend a DAC invitation.

It is incumbent upon the dealer to ensure he/she is approaching the DAC opportunity in a manner that is for the good of the order and less partisan. The question then becomes: Is council participation a good fit for all? Theoretically, yes, but in practice…probably not. As we wrap up our October State of the Industry report on DACs, we asked our dealer panel about the qualities and motivations that can make such groups beneficial for all.

Some frank introspection is productive in approaching the question, points out Sean Mummert, CEO of The Office People in North Charleston, South Carolina. It’s not just bandwidth and the commitment of time. What is your level of caring? Everyone’s moving-forward journey is different: some want to pass on their business to their progeny. Others seek to sell, while many are trying to find growth avenues. Wherever you sit on the ownership spectrum will go a long way toward assessing the value of such a commitment.

“If you want to make a change, you care about the industry and your manufacturer, and you don’t mind working with people that don’t have the same opinion as you, then it’s worthwhile,” Mummert said. “You can’t be afraid to share. A lot of the people in these groups don’t want to share out of fear that they’re going to lose a customer or some service base, that they’re giving away a trade secret. If you’re one of those people unwilling to share 100%, then it’s probably not the right opportunity for you.”

It’s not unlike a regular peer group, he added. “I don’t want somebody to kiss my butt and agree with everything I say. I want to hear why you disagree with me, why you feel the way you do. When you cut through the BS and get down to the heart of what needs to be discussed, that’s when it becomes most effective for you.”

It helps to have a motivation that dovetails with the goals of the council, notes Dawn Abbuhl, president of Repeat Business Systems in Albany, New York. Another question to consider is whether you, as a dealer exec, can materially advance big-picture conversations.

“If there are things that they feel like they can contribute or they’re curious about; to me it has to be a mutually beneficial situation,” she said. “If I don’t have enough knowledge or information, I don’t want to be there and take up a spot for someone who could really benefit the council more.”

It does require a certain temperament to serve on a DAC. For Dean Swenson, CEO of The Swenson Group in Livermore, California, it requires equal parts diplomacy and candidness. Raising one’s voice or resorting to personal attacks serves no beneficial purpose. The other end of the spectrum isn’t productive, either.

“I’ve recruited certain members who are thought leaders and run really good operations, but they aren’t willing to raise their hand,” Swenson said. “I remember starting out on a DAC, looking around the room and seeing $50 million and $100 million dollar revenue dealers. My first thought was doubting that I could bring value to the conversation. Then I realized we all have a lot of the same challenges and we all have certain goals. So if you are willing to be open, willing to share, willing to be challenged yourself as well as challenge others for the common good, it can be beneficial.

“It certainly takes time. I’d hear dealers complaining about an issue, but I know I don’t have any insights that can move the needle for them. But sometimes I can provide counsel and direction for a colleague as to how they can best achieve whatever they want accomplished.”

The best of DACs feature a collaboration driven by transparent conversations, and it’s always better to glean dealer insights on the front end of a project, according to Robert Woodhull, president of Woodhull LLC in Springboro, Ohio. Council relationships in which the manufacturer provides a final decision and then asks dealers for their thoughts on it are counterintuitive. It’s better, he said, to solicit input while programs, strategies or initiatives are still being developed.

“Equally important is closing the loop. Dealers understand that not every recommendation can or will be implemented,” Woodhull said. “But when a manufacturer comes back and says, ‘Here’s what we heard, here’s what we changed, here’s what we couldn’t change and here’s why,’ it creates credibility and trust.

“Ultimately, I think that’s the greatest value of a strong dealer council. It creates a structured environment where both sides can challenge each other, learn from each other and hopefully make better decisions together.”