The Coaching Crisis in Automotive Leadership

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  • June 9, 2025

 

“Are you coachable?” might seem like a question reserved for rookies. But as this episode highlights, it’s a challenge for every tier of dealership leadership—from lot porters to dealer principals.

According to Gartner, 60% of new managers fail within their first 24 months due to lack of training and leadership development. That stat was the springboard for the episode’s core thesis: your team can’t be coachable if you aren’t.

“If you’re a people leader, make sure you’re taking your one thought cap off, putting another thought cap on, and saying: ‘Feed me. Be coachable.’” — Chris Keene

 


 

From the Locker Room to the Lot: Why Coaching Matters

The team draws heavily from sports analogies, especially football and basketball, to illustrate their points. Whether it’s John Wooden teaching his players how to put on their socks or Belichick quizzing Patriots in the hallway, the metaphor is clear: fundamentals and constant reinforcement build champions.

Dealerships are no different. You wouldn’t put a third-string cornerback in during a critical play unless you knew he was coached up and ready. So why let a barely-trained salesperson handle a $90,000 deal?

“Everybody in the building has to be coachable. I don’t care if it’s your lot porter or your dealer principal.” — Renaldo Leonard

The Peter Principle & The Promotion Trap

Another big issue? Promoting top performers into leadership roles without assessing their coachability or preparing them to lead. The crew invokes the “Peter Principle”—the idea that people rise to their level of incompetence because promotions are based on current performance, not leadership potential.

Hiring or promoting someone without evaluating:

  • Their openness to coaching
  • Their ability to coach others
  • Their alignment with the company’s long-term vision


can undermine the whole operation.

“Are they coachable? And can they now take what they were coached on and go coach the next one?” — Chris Keene

Leadership is a Two-Way Street

John Anderson touched on a critical point: some dealerships thrive with tools like inventory management systems or CRMs, while others flounder. The difference? Engagement and coachability.

The problem isn’t always the product; it’s the partnership.

“You have the same product, but some folks excel and others don’t. Coaching gets tuned out.” — John Anderson

Vendors can’t be expected to shoulder the whole burden. Leaders must:

  • Actively seek support
  • Pick up the phone
  • Request more training
  • Reinforce tools and strategies internally

Chris Palmer: A Masterclass in Coaching Culture

In a powerful guest segment, Chris Palmer from the Casa Auto Group delivered a seven-minute leadership clinic. His approach: set clear KPIs, tie compensation to performance, and define paths for growth—from lot porters to GMs.

Palmer asks his leaders three monthly questions:

  1. Who’s your best player?
  2. Who’s your worst player?
  3. Who’s your replacement?

If they can’t answer all three, they aren’t leading effectively.

“We are responsible for giving the opportunity for growth. They are responsible for the growth.” — Chris Palmer

His example of demoting two salespeople who failed to show up after asking for higher roles proved a simple truth: effort must match ambition.


Key Takeaways for Dealers

1. Coachability Starts at the Top

If you’re not open to being coached, don’t expect your team to be. Invest in your own development first.

 

2. Train Before You Promote

Promote based on coachability and leadership traits—not just sales performance.

 

3. Set Clear KPIs and Expectations

Tie growth and compensation to measurable results. Reinforce them consistently.

 

4. Use Tools as Coaching Aids

CRMs and inventory software aren’t just data repositories—they’re training tools. Use them to monitor and guide.

 

5. Don’t Cut Training—Double Down

When budgets tighten, training is often the first thing cut. Don’t fall into that trap. It’s the most costly mistake you can make long-term.

 

6. Clarify the Vision

Ensure every team member—from leadership to lot tech—understands your dealership’s mission and how tools and training support that.


Final Thought: Are You the Pig or the Chicken?

In one of the more memorable analogies of the episode, the hosts compare breakfast to commitment. The chicken is dedicated—it lays an egg. The pig is committed—it provides the bacon.

So ask yourself: Are you dedicated, or are you committed?

Because in today’s ultra-competitive used car market, only the committed win.


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