the President of the United States is given a report that outlines the most active international and domestic threats against the United States. This document is called the Threat Matrix. To combat these threats, the President, through the Department of Homeland Security, has created a highly specialized, elite task force whose mission is to keep our country safe from enemies determined to destroy our way of life. Are you aware of the threats that can destroy your profitability?

As Dealer Principal or General Manager your daily decisions may not protect the people of the United States, but those decisions should protect the livelihood of your staff. Do you receive a "Threat Matrix" daily? You may ask, what is this threat matrix? It is a daily report of profit bench marks and how well you match them. So you ask who supplies the report. An elite task force of employees!

The task force is comprised of staff members from each area of your operation (Sales-Service-Parts-Body Shop- Administrative- F&I). A member of the task force is selected as "point person" and required to collect and deliver the daily threat matrix. Each member completes a one page summary report for your review. With just a quick review you will recognize threats and know where to invest your time and efforts.

Data Management Systems (DMS) offers a daily DOC report for profitability reporting. But that report only reflects sells and cost. A matrix report will drill down into the "core" of your numbers, your staff! Your staff's performance level determines your profitability. Continual training determines your staff's level of performance.

Example of data revealed in a threat matrix: Gross profit percentage of each labor category. The bench mark is 70-75 percent gross profit to sells. If one of the labor categories was at 64 percent gross to sells, it would create a threat to your profit and need to be addressed.

But what caused the drop in gross percent? The matrix reveals each service salesperson's (advisor's) bench mark numbers including repair orders written daily, effective labor rate, labor hours per repair order, etc.  This information divulges deficiencies in performance levels. The one page service threat matrix used in our example reveals a deficiency in service salesperson As customer effective labor rate.  That deficiency is the cause of the 64 percent gross retention.

This threat matrix works the same with all areas of your operation, focusing on your "key profit indicators". In a matter of minutes you can make decisions on who needs more training or counseling. You will be able to make the indicated adjustments throughout the month to reach your desired "month end bottom line", rather then wonder how your month end bottom line came to be.