The world of automotive retail has clearly intersected with the digital age. Technology now pervades almost every component, from the products that are sold and serviced, to the marketing channels that are used to disseminate information, to the way customers communicate and share experiences. Despite these revolutionary times, the need for dealerships to develop competent individuals who can engage with customers remains critical to automotive retail success.

1. A COMPETENCE DEVELOPMENT
MODEL FOR THE DIGITAL AGE
APPLYING A DUAL LOOP PROCESS TO THE
DEVELOPMENT OF COMPETENT INDIVIDUALS AND
TEAMS IN THE AUTOMOTIVE RETAIL INDUSTRY
April 2015

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APPLYING A DUAL LOOP PROCESS TO THE DEVELOPMENT OF COMPETENT
INDIVIDUALS AND TEAMS IN THE AUTOMOTIVE RETAIL INDUSTRY
TABLE OF CONTENTS
INTRODUCTION
CONVENTIONAL COMPETENCE DEVELOPMENT
MODEL AND ITS LIMITATIONS
A DIFFERENT APPROACH
CONTACT US
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APPLYING A DUAL LOOP PROCESS TO THE DEVELOPMENT OF COMPETENT
INDIVIDUALS AND TEAMS IN THE AUTOMOTIVE RETAIL INDUSTRY
The world of automotive retail has clearly intersected with the digital age. Technology now pervades
almost every component, from the products that are sold and serviced, to the marketing channels that
are used to disseminate information, to the way customers communicate and share experiences. Despite
these revolutionary times, the need for dealerships to develop competent individuals who can engage
with customers remains critical to automotive retail success.
Customers are not looking to engage with ‘robotic’ individuals’ or to simply lose themselves online, they demand trained and
experienced people who are sensitive to their needs and who understand where they are in the buying process. It is in this
environment that the question must be asked as to whether training and development strategies are keeping pace.
Put simply, ‘what is the industry doing to develop appropriate competencies in this digital age’?
01 INTRODUCTION

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APPLYING A DUAL LOOP PROCESS TO THE DEVELOPMENT OF COMPETENT
INDIVIDUALS AND TEAMS IN THE AUTOMOTIVE RETAIL INDUSTRY
The automotive industry’s commitment to development cannot be questioned. A simple examination
of the broad range of training interventions implemented across the spectrum of functional dealership
areas will attest to this fact. There is however limited data quantifying the impact of these interventions.
In a study of the impact of training on productivity in the automotive industry, Singh and Mohanty (2012) demonstrated a
correlation between productivity improvement and training volume but acknowledged that not all training delivers the same
results and the limitations of the conventional development model need to be taken into account.
In a highly acclaimed TED talk, Anant Argarwal points out that training, as it exists today, has not changed fundamentally in a
hundred years, and suggests that dramatic changes are required. These sentiments hold particularly true in the ever-shifting retail
automotive landscape where the limitations of conventional approaches to training and development are clearly evident.
02 CONVENTIONAL COMPETENCE
DEVELOPMENT MODEL AND ITS LIMITATIONS

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Training is treated as an end, not a means to an end
Too often the response to performance problems is to view training as a quick fix. Training, implemented effectively, does have
the capacity to develop knowledge and skills, however this does not guarantee a successful outcome. Performance improvement
is a multi-faceted issue and environmental, structural, technological and motivational elements need to be taken into account. In
spite of this, in most cases, priority is given to the training event itself, whilst insufficient focus is placed on the process leading
up to the training and the crucial period thereafter. Simply put, the training program or event is considered to be the output,
while the impact on the workplace is not taken into account, an issue only raised when organisations are put under pressure to
demonstrate results.
Competence at work is poorly defined
Competence continues to be defined in human terms, ignoring the new technologies which serve as tools and enablers to make
individuals more effective. By way of example, sales consultants are expected to know everything about the products they sell,
yet a sales consultant equipped with a tablet containing all of the information, comparisons and imagery required, would be more
effective. The whole competence paradigm needs to change as it is currently poorly defined and exerts pressure on people to
remember information. More often than not training objectives (and job descriptions) do not recognise the performance outcome
required or the performance gap that needs to be addressed. In these circumstances the link to a competence outcome will be
vague and difficult to measure.
Development is treated as an event and not a process
In 1992, Tannenbaum and Yukl argued that to be effective, development programs should be systematic and continuous, and
that development should be viewed as a long term process. Yet today, we still see training programs implemented on an ad hoc
basis, without any tracking of what happens to individual competence, impact in the workplace, and the attitude and morale of
the individual.
There are limited opportunities to practice newly acquired skills
As any good sports coach will tell you, new drills or plays do not just happen. The new drill or play will be discussed, the coach
will motivate why it is an important addition for the team, practice sessions will be carefully structured, and once the team “get
it” they will practice it again and until it becomes second nature. Only then will it be applied in a match. This is in contrast to
conventional training situations where learners may be given one or two opportunities to practice, often in situations which do not
replicate real life, and are then expected to perform the new skill when back in the work environment. There is a lack of cohesion
between the classroom, the requirement for post training guidance, and coaching.
Performance outcomes are difficult to measure
There are a number of reasons why the measurement of performance improvement is inadequate. For starters, the typical
processes and tools used to measure performance are not reliable indicators of competence. For example, knowledge tests often
fail to contextualise the use of the knowledge or skills, and skill assessments often fall short by only assessing a part of the broader
skillset required. In addition, where learning objectives have not been clearly and specifically stated, measurement is limited to
broad categories of knowledge or skill, and fail to take into account what is required in the real world.
Learner engagement is not given enough attention
Learners are often treated as robots, expected to turn up for the training day with limited preparation or foreknowledge of the
program, acquire new abilities, enjoy the learning process, and return to the workplace, and implement their newly acquired
skills. Training offered on this basis often becomes a dumping ground with different departments trying to cover their areas of
responsibility. The learner is ill equipped to manage all this input and is often left confused. Learners need to be motivated to
aspire for the best results. To achieve this there needs to be honest engagement with the learners before, during and after the
learning event. The role of engagement throughout the process is to provide information, obtain feedback, support the learner
and give feedback on performance to guide the learner’s implementation of the new abilities.

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APPLYING A DUAL LOOP PROCESS TO THE DEVELOPMENT OF COMPETENT
INDIVIDUALS AND TEAMS IN THE AUTOMOTIVE RETAIL INDUSTRY
In recognising the limitations of the conventional competence development approach and the
opportunities offered by SMAC (Social Mobile Analytics Cloud) technologies, a ‘Dual Loop’ model for
achieving demonstrated competence has been developed by the Sewells Group.
The inner or learning loop is all about the actual learning and covers the key areas of curriculum and content development,
training delivery, learning technologies and learning administration. The secondary or application loop is about the application of
the learning, specifically its impact on businesses results. The application loop covers the development of a competence strategy,
the ability to measure the impact, engagement with learners, and the use of application technologies in the workplace.
The conventional approach to learning focuses only on the learning loop, the learning itself and technology applied to the learning.
Combining the application loop with the learning loop allows value to be added by developing a complete strategy for competence
development. The application loop ensures that the learner is engaged all the time, that learners become ‘connected learners’,
and that learning becomes a process and not an event. The two loops are inextricably linked, with the impact being maximised
through an integrated approach.
The Dual Loop model is set in the context of a fast emerging cloud-based environment. This new world order which is driven by
connectivity ultimately shapes a new way of thinking and give feedback on performance to guide the learner’s implementation of
the new abilities.
03 A DIFFERENT APPROACH

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INDIVIDUALS AND TEAMS IN THE AUTOMOTIVE RETAIL INDUSTRY
A white paper by Cognizant (2014) states how the integration of Social media, Mobile appliances, Analytics and Cloud technology
(SMAC) is changing the way businesses are thinking about their core processes. The impact of these SMAC technologies is set to
expand as each grows its reach exponentially. The business of competence development needs to adapt to the benefits of these
technologies in making learning seamless in engaging with the tech savvy generation.
SMAC technologies drive the evolution to a people/technology composite which will lead to effective
training delivery, improved productivity and better performance. This combination will serve as a
catalyst for different outcomes of competence at the customer interface.
The Dual Loop model is also underpinned by a number of key components. These include: the development of a strategic
competency framework, the adoption of technology as an enabler for learning and application, measurement and analysis, learner
engagement, curriculum and content development, administration, and training delivery.
The focus of a training and development strategy needs to be on the competence outcome desired, as opposed to ‘learning’ which
is only a part of the process. Sewells Group guides clients through a process of identifying business objectives and the integrated
competencies required to achieve these outcomes. Integrated competencies are determined through the people/technology
composite. Work is then done to determine the process and the relevant learning which will be required.
The goal of a blended approach to learning is to apply the best aspects of both classroom and cloud-based instruction. Classroom
time is used to engage students in interactive discussion and activities, while cloud-based learning allows for virtual classroom
sessions as well as the sharing of multimedia-rich content. This ensures optimal use of available time and maximisation of
competency outcomes.
Online tools relieve people from the burden of processing unnecessary information places the focus on the development of soft
skills. The reduction on time spent absorbing information allows time for participants to practice their approach and interactive
skills. Through this process learners gain confidence in their ability to implement the new skills.
In application, a ‘technology-enabler’ concept applies. The onus for performance delivery is not placed on the individuals alone
as they are aided with tools and gadgets. People are empowered with tablets, kiosks, smart phones, reckoners etc. The tools and
gadgets are an integrated part of the definition of competence.
SMAC – THE NEW WORLD ORDER
DEVELOPMENT OF A COMPETENCY FRAMEWORK
TECHNOLOGY AS AN ENABLER FOR LEARNING AND APPLICATION
Social Mobile CloudAnalytics

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A clear link between learning and performance can be established through measurement and reporting. Dashboards are created
to measure and evaluate on three different levels, namely input, output and impact.
Each learner is assessed and certified. This necessitates competence indexing whereby at department, dealership, regional and
national level, certification levels are aggregated and scores are determined. Benchmarking can also be applied, allowing for
comparisons between dealerships and regions, creating transparency and identification of areas for improvement.
All the data is available in real time through the cloud, accessed through mobiles and tablets facilitating real-time tracking of
certification levels and scores for management, and identification of next steps required for learners.
As part of the focus on competence Sewells Group believes that learners who are engaged understand the need for learning, the
process to be followed, and accept that the onus for learning is on the learner. This is facilitated by an understanding of what
motivates adult learners and the methods required to achieve this.
The dual loop model uses technology to continually engage with learners throughout the process. Opportunities for learner
engagement prior to, during and after the learning event are planned in advance.
In order to effectively deploy blended learning elements, Sewells Group has the ability to integrate different elements of a learning
pathway into a structured learning curriculum. This includes the delivery of ‘best-in-class’ customised content, developed by
consultants with a high level of subject matter expertise and business focus.
MEASUREMENT AND ANALYTICS
LEARNER ENGAGEMENT
CONTENT AND CURRICULUM

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It goes without saying that an administrative system should use SMAC technologies to support the competence development
process. The following elements are taken into account:
• Management of general training, competency and qualification records, as well as the monitoring and reporting of training.
• Management and scheduling of training events.
• Deployment of learning events, including reference material, videos, virtual classroom sessions, SCORM compliant content
and online assessments.
• Creation of online assessments from a range of question formats.
• Communication with the learners and other stakeholders throughout the competency development process.
High standards are established for facilitators and consultants. The process of accreditation requires in depth subject matter
expertise, and the appropriate skill sets to conduct a learning intervention, including facilitation and coaching skills.
To complete the cycle, the agreed measurement of the learning and application loops takes place and feedback is provided to
all stakeholders. Ultimately this fulfils the objective of overcoming the limitations of previous approaches enabling a more direct
impact on performance.
The Sewells Group is committed to shaping the future of automotive retail, and our passion for developing competence and
sharing best practices continues to grow. Our Dual Loop model is applied in a number of clients across SE Asia, Africa and the
Middle East, ensuring they remain at the cutting edge of this important business imperative.
Singh, R. & Mohanty, M. (2012). Impact of Training Practices on Employee Productivity: A Comparative Study. Interscience
Management Review.
http://www.ted.com/talks/anant_agarwal_why_massively_open_online_courses_still_matter.
Tannenbaum S.L. & Yukl G. (1992). Determining a Strategy for Evaluating Training: Operating within Organizational Constraints.
Human Resource Planning.
http://www.cognizant.com/InsightsWhitepapers/dont-get-smacked.pdf
http://www.cogno-sys.com/cognosys-technologies-partners/social-mobile-analytics-cloud-smac-technology-business/
SETTING UP AN ADMINISTRATIVE BACKBONE
LEARNING DELIVERY
REFERENCES

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CONTACT US
Sewells Group is a global consulting and
outsourcing firm which specializes in the
automotive retail industry. Our very reason
for being in the business is to improve the
performance of individuals and organizations in
the automotive retail industry. We operate across
the Asia-Pacific, Africa and Middle East regions.
Our in-depth subject matter expertise in this area and our
deep engagements with many leading automotive brands
make us a leader in our business. Our Integrated Dealer
Performance Management Model has delivered exceptional
success to leading OEMs across the world. Through our
business management, competence development and process
efficacy initiatives, we contribute meaningfully to our clients’
businesses.
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To know more, visit us at sewellsgroup.com
or write to us at info@sewellsgroup.com

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info@sewellsgroup.com
© 2014 Sewells Group
Disclaimer: The information in this brochure is correct at the time of production. Sewells Group reserves the right to make changes at its sole discretion.
V1/2014
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