DALLAS -

It happens every year. In January, the gym is full of people making New Year’s resolutions to lose weight or get in shape. But by February or March, the crowds have died down. Those who are still plugging away are committed to their resolutions.  And their efforts have become a habit, making it easier to achieve their goals.

Making New Year’s resolutions are a great tool for achieving your business goals as well. Did compliance slide off your radar last year? Are you paying the price today, as you try to get those deal folders in order and send reports to lenders? With the 2017 business climate in question, now is a good time to make a few New Year’s resolutions. Let’s put compliance at the top of the list.  

Upping your compliance quotient is a very achievable resolution. If you follow a few simple steps with each sale, then compliance will become a habit. And once it becomes a habit, your dealership will be in a better position to build profitability — both with customers and your lender partners.

Let’s start at the beginning by building a compliance culture. Compliance does not reside solely in the F&I office. From the moment a customer sets foot on your lot, calls your receptionist or researches a deal online, each team member who engages with the customer owns a piece of the compliance pie. Make sure every team member clearly understands their compliance roles. And make it a part of your employee reviews, weekly team meetings and quarterly sales goals. The more your team demonstrates good compliance behaviors, the faster it will become a habit.

Impress upon your team that compliance is not some fluffy HR strategy designed to boost sales by working harder on needless tasks. There are serious consequences when a dealership — and its employees — are found to be out of compliance. While not intended as a scare tactic, team members should be well aware of the repercussions to being out of compliance.

Now granted, there are a lot of details involved when it comes to compliance requirements. Not every team member needs to be an expert — nor do you want them to neglect their primary responsibilities. Consider designating a compliance officer — or compliance lead if your dealership has less than 10 employees. A compliance officer’s role is to have an intimate knowledge all of the requirements. And to serve as a guide for the other team members. 

Habits are easily formed when tasks are performed the same way every time. Work with your compliance officer to create processes for each department that clearly guide team members through the necessary tasks. Allow a short period of time for each department to review those processes. Encourage team member feedback during the review period. Team members are more likely to establish good compliance habits if they have input on how each task is performed.

Processes also ensure that all tasks are performed the same way — regardless of which team member is performing the task. Make sure everyone is establishing the same habit.

Now that you have good processes in place and everyone is in agreement, document those processes. Remove any ambiguity or confusion by listing each task and the steps required. This step is critical – not only for longtime employees but for any new employees who join the team. Keep everyone on the same page by creating those documentation pages. And once the documentation is complete, don’t put it in a drawer to be easily forgotten. Out of sight-out of mind does not support a good habit. Keep your documentation visible and accessible.

As with any new habit, team members may forget or slip up every once in a while. Get back to the task by enforcing compliance. Remember, establishing compliant practices protects consumers, the dealership, and individual employees from any potential legal repercussions. During the process review period, discuss appropriate actions for process violations. Be sure to include those actions in the process documentation.   

And speaking of new employees, a compliance discussion should be part of your hiring process. Is the candidate detail oriented with strong ethics and a team-focused mentality? Or are they willing to cut corners to make the sale — and boost their commission? Do they have a working knowledge of compliance criteria or will you need to provide training before they assume full responsibility for their job function? Do they support the spirit of compliance?

Do they have good habits? These types of behavioral questions can be invaluable when hiring new staff. Including compliance in your hiring process also demonstrates to your existing employees that you’re serious about the dealership’s compliance quotient.

So make some New Year’s resolutions for your business. Set some attainable goals. And make compliance a habit in 2017. For more information on creating a culture of compliance, watch my video series here. 

Steve Roennau is the vice president of compliance EFG Companies.