Shining Example: New York

mm1 Consulting & Management sees the highly successful methods of the New York Police Department as a way of substantially increasing the effectiveness and success of all automotive manufacturers. How the Automotive Industry Can Substantially Increase Its Success!

mm1 Consulting & Management, a Stuttgart-based corporate consulting company, sees the highly successful methods of the New York Police Department as a way of substantially increasing the effectiveness and success of all automotive manufacturers.

As far as mm1 Managing Director, Rainer Lindenau, is concerned, the automotive industry is not tapping anything like its full potential. A study published in the magazine Auto, Motor & Sport in June made this clear. Rainer Lindenau also refers to the results of a study carried out by mm1: “Automotive enterprises are not taking advantage of many of their new business opportunities, and are not making the best use of existing possibilities.” In most cases when potential new customers visit car dealerships, the dealers fail to strengthen buying interest, and do not gain the customer information they need to achieve success in the buying process. Since the automotive industry’s efforts during the past years have often not achieved the hoped-for results, Lindenau is convinced that new approaches are needed: “Why not look at an organization that has a similar structure and that has seen greater increases in success rates than almost any other organization over the past years? I am referring to the New York Police Department.” The figures speak for themselves: Within just a few years, the Police Department succeeded in cutting crime in the city by 70%, transforming the “crime capital” into the safest big city in the US, and making the New York Police Department one of the most efficient and best police organizations in the world.

mm1 Consulting & Management carried out an in-depth study of the model for success used by the New York Police Department for its 76 station houses. The Police Department achieved its outstanding success thanks to an end-to-end concept that optimized the seven key factors for success in branch organizations: quality, customer orientation, responsibility for success, systematic improvement of success rates, competitive advantages, operational processes and systems, and determination. Based on this concept, mm1 Consulting & Management developed a systematic method for targeting similar increases in success rates in other branch organizations – regardless of the specific tasks and structures of the organizations.

In Lindenau’s view, the automotive industry has everything it takes to achieve similar levels of success with this method: “The system is particularly effective for sales and service organizations. We subjected our method to rigorous testing, and developed a concept for one of Germany’s biggest service businesses based on New York’s example. The success of this project proved us right. Within three years of the project’s implementation, the business achieved the biggest increase in customer satisfaction in the German customer satisfaction index, and substantially increased its sales and revenue. This was enabled by the improved performance of the company’s 40 branches for which we developed a similar end-to-end concept.” This success story is described in detail in our article in the May 2005 issue of Harvard Business Manager.

For automotive enterprises, the process begins with a short diagnosis, which takes approximately one month. According to Lindenau, this systematic procedure can pinpoint existing opportunities for improvement, as well as the measures that will boost success rates most effectively, after just one month.

We would be happy to provide you with a copy of our study Vorbild New York: Was der Automobilvertrieb von der New Yorker Polizei lernen kann (Example New York: What the Automotive Industry Can Learn from the New York Police Department) and other information about mm1 Consulting & Management on request.