Ransomware A Response Plan Is Essential for Auto Dealers
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18 ©2025 New Car Dealers of Utah (NCDU) | The newsLINK Group LLC. All rights reserved. Utah Auto Dealer is published four times per year by The newsLINK Group LLC for NCDU and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of NCDU, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Utah Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of NCDU. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. 21 10 CONTENTSPUB. 7 2025 ISSUE 2 6 Ransomware A Response Plan Is Essential for Auto Dealers By Bank of America 10 From Quiet to Loud Vacations Tips for Creating Supportive PTO Policies By Fisher Phillips 14 Zero Cost, Zero Reimbursement — Not So Fast By Jordan Jankowski, Armatus Dealer Uplift 18 NADA Market Beat September 2025 By Patrick Manzi, Chief Economist, NADA 20 2026 NADA Show 21 Leadership in Times of Crisis 4 UTAH AUTO DEALER
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Steve Hood, steve.hood@bofa.com Paul J. Cluff, paul.cluff@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
Ransomware A Response Plan Is Essential for Auto Dealers BY BANK OF AMERICA 6 UTAH AUTO DEALER
High-profile cyber incidents have highlighted the need for auto dealerships to prepare for the impacts due to loss of critical services and theft of sensitive data. Here are some factors to consider when creating an incident response plan. Key Takeaways • Auto dealerships are facing an increasing number of cyberthreats that can debilitate operations and compromise customer and financial data. • Creating a ransomware response plan is a critical piece of any dealership’s preparedness. • By implementing basic controls and best practices, an incident response plan can improve security for dealerships, even those with limited IT and cyber defense budgets. When a software and applications vendor was compromised by ransomware in June 2024, thousands of auto dealerships felt the effects. Essential management systems became inaccessible, sales and financing transactions went manual or stopped, and sensitive customer and business data was compromised. By one estimate, auto dealerships lost over 50,000 new vehicle sales and suffered over $1 billion in damages in the month after the incident was reported.1 Although this was an “upstream” incident that began with a critical service provider, the ransomware event highlighted the elevated risk auto dealerships face. A 2024 study found that 35% of surveyed dealers had dealt with some type of cyber incident in the past year. What’s more, ransomware was rated as the most serious cyberthreat these businesses face.2 In this environment, every dealership needs a plan for what they must do if they’re targeted. Why a Ransomware Response Plan Is Essential Even dealerships that lack the resources to hire security professionals or invest in advanced controls can greatly improve their defenses by constructing a response plan that includes proactive measures such as data protection, raising employee awareness and implementing core best practices. A plan that outlines how a business can prepare against cybersecurity threats and respond to incidents can help limit the damages related to loss of data and operations. It can also improve the chances of avoiding many types of incidents, including ransomware. The following guidelines can help dealerships create a response framework that can be tailored to their specific organization and capacity for planning. Key Elements of a Ransomware Response Plan Ransomware response depends on a timely assessment of a live incident’s severity and impact, clearly defined roles and reactions and a thorough investigation to ensure the threat is neutralized and operations can be brought back to a secure state. To be effective, your strategy must be in place before an incident occurs. Here’s how to get started. Before an Incident 1. Prepare • Educate key personnel regarding current cyber-risks and objectives of cybercriminals. • Appoint the most qualified individual to lead the creation, implementation and updating of the response plan. Alternatively, you can supervise a contract with a professional security vendor that creates the response plan. • Conduct a company risk assessment and be sure to include data inventory. • Create and maintain encrypted, offline or immutable backups of essential company and customer data. • Implement strong protections around identity and access management, such as multifactor authentication on all devices that can access company networks. • Formulate, test and continuously evolve the response plan. It should identify stakeholders and their roles, communication tactics and off-network channels, reporting procedures required by regulatory bodies or local law enforcement, and criteria for restoration of safe states. 2. Backup and Test • Regularly confirm the integrity of backups. • Do not look at backups as the “last line of defense.” No backup method is 100% cybersecure, and stealthy bad actors can corrupt backups even before they launch ransomware. 7 UTAH AUTO DEALER
During an Incident 3. Detection and Assessment • Use security tools to monitor network traffic for evidence of an adversary’s presence or movement and issue alerts. • Assess which systems are easily compromised by ransomware and isolate them. Coordinate a shutdown of all devices that cannot disconnect from the affected systems. • Reset all credentials and passwords connected to affected systems. 4. Communication and Reporting • Inform all internal teams and stakeholders on a preselected communication channel to ensure individuals essential to the response are engaged. • As needed, report the incident to affected third parties or vendors that assist your dealership with security and incident response. • Notify cybersecurity agencies and/or local law enforcement to maintain regulatory compliance and to receive additional assistance or guidance. • Communicate with third parties and clients to ensure they have not experienced financial impacts after the incident. 5. Containment and Remediation • Disable any system involved in the initial breach, as well as connected systems that malicious actors could use to access other parts of the company network or data systems. • Analyze network traffic and endpoints for evidence of the malicious actors’ persistence. Remediate vulnerabilities. • Rebuild the systems that are most critical to business operations. • Reset passwords and permissions. After an Incident 6. Recovery and Response Plan Update • Complete a thorough forensic analysis of the incident and document all steps taken to eliminate the ransomware or remove footholds the threat actor established. • Confirm that backups remain uncorrupted and don’t contain malicious payloads. Restore affected systems. • Inform all relevant third parties and oversight agencies of the steps taken and the removal of the threat. • Make improvements to company systems based on forensics. • Continue to maintain vigilance. Update security systems regularly and adapt employee training to reflect lessons learned. To learn more, visit business.bofa.com. “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities Inc. is a registered futures commission merchant with the CFTC and a member of the NFA. 1Anderson Economic Group, “Dealer Losses Due to CDK Cyberattack Reach $1.02 Billion.” 2CDK Global, “The State of Dealership Cybersecurity 2024.” 8 UTAH AUTO DEALER
BY FISHER PHILLIPS The trend for workers to hide their time off from their managers — known as “quiet vacationing” — has taken a sharp turn. Employees are now “loud vacationing” by openly sharing their travel plans and using their paid time off (PTO) without hesitation. While this should be a welcome shift for employers, it also highlights the importance of creating supportive policies that balance employee well-being with workplace productivity. How can you help your employees and your business thrive this summer and beyond? Here are seven tips to help you refresh your PTO policies. 10 UTAH AUTO DEALER
1. Start by Reviewing the Latest Employee Trends Here’s why you should consider revisiting your organization’s approach to PTO and start encouraging loud vacationing: • 85% of employees believe that vacations boost their happiness.1 • 46% don’t use all their allotted PTO in a year.2 • 47% feel guilty about taking a vacation.3 • 68% say they work during vacation.3 2. Create a Plan To Revamp Your PTO Program There’s no one-size-fits-all PTO plan, and your policies will depend on the unique needs of your business. However, as you consider updating and modernizing your program, you can start by asking yourself the following questions: • How do your PTO policies stack up against offerings from your competitors and other businesses in your area? • Are you providing enough time off each year for employees to disconnect as needed? • Do you have an adequate system for tracking and approving PTO use? • Do you have clear procedures for handling requests at popular times or during your busy season? • Have you asked employees for feedback about their experience requesting or using PTO? • Have you identified any patterns of underuse organization-wide or in particular departments? • Do you have a legally compliant cap on accrual of paid time off or a legally compliant PTO policy? • Do your policies comply with all applicable federal, state and local leave laws? 3. Consider Different Types of PTO Models To embrace loud vacationing, you may need to think outside the box. But first, let’s talk about unlimited PTO models, which have become popular in recent years. Under these plans, employees don’t have a set number of PTO days, accruals or caps. Instead, they request paid time off as needed or desired, and managers use their discretion to approve or deny such requests. These policies place no cap on the amount of time an employee can take off. 11 UTAH AUTO DEALER
https://www.fisherphillips.com/en/ news-insights/unlimited-pto-great- resignation-concerns-practical-tipspolicy.html The benefits of an unlimited PTO policy include: • More flexibility for employees to take the time they need, when they need it, rather than waiting for PTO to accrue. • May be a good recruiting and retention tool, as it promotes autonomy over the employees’ own work-life balance. • May avoid employee burnout. • Reduced administrative costs for employers in tracking PTO. • Cost savings, as in some states there is no need to pay out unused PTO days at the end of the employment relationship if the employer truly has an unlimited PTO policy. But watch out for these potential pitfalls of unlimited PTO policies: • You may have employees who prefer to “earn” accruals rather than use their discretion in taking time off. • Some employees may request less time than they need, while others may request excessive time off. • Managers may not apply and enforce policies consistently, which could lower morale or lead to discrimination claims. • Although the purpose of a vacation allowance is to encourage employees to disconnect and recharge, they may be frustrated if they can’t cash out unused vacation time upon separation — especially if your old policy allowed it or state law requires you to pay out accrued vacation at termination. • Combining vacation and sick time off may run afoul of various state and local sick leave laws. • Some states may still classify unlimited PTO as “earned wages” depending on how the policy is structured and applied — so check with your attorney on the legal nuances for your locations. Scan the QR code to read about issues all employers should consider. To address some of the concerns with unlimited vacation programs, some employers are setting “minimum PTO” or “mandatory vacation” policies — meaning they require employees to take at least a certain amount of time off a year. The benefits of this type of policy include: • Helping prevent burnout and encouraging better work-life balance by ensuring employees take breaks from work. • Helping managers plan for absences and schedule work assignments accordingly. • May be a good recruiting and retention tool. • You can be flexible in your approach. For example, an unlimited policy can be combined with a minimum requirement to reap the benefits of an unlimited PTO plan and address some of the pitfalls (like the fear of taking time off that’s not “earned”). You can also combine minimum PTO with accruals or other policies that provide a set number of earned vacation time per year to avoid high cash-outs or rollovers at the end of the year if offered by your company or required in your jurisdiction. However, it’s important to be vigilant of state-specific requirements. • You can still award employees with extra time off based on tenure, for example, by raising the minimum for employees with seniority. A word of caution: You’ll want to ensure your written policy is developed and implemented carefully so that the minimum doesn’t unintentionally become the maximum. We’ll discuss corporate culture in more detail next. 12 UTAH AUTO DEALER
4. Work With Employees To Reduce Anxiety According to Glassdoor’s research, 77% of employees feel anxious about the workload they’ll face when they return from vacation. You can help assuage their fears by: • Scheduling a 1:1 meeting prior to their vacation to go over any projects or tasks that will need to be reassigned to other employees during their absence. • Encouraging them to truly disconnect while on vacation and reassuring them that you have an adequate work-coverage plan in place. • Following up when they return to work to help prioritize tasks and manage their workload. • Offering words of encouragement to enjoy their time off and welcoming them back when they return. 5. Create Metrics for Managers You’ll certainly want to train your managers on your PTO philosophy and policies. But you can go a step further in the spirit of loud vacationing by developing performance metrics for managers based on time-off objectives for their teams. Consider doing the following: • Analyze team PTO use to ensure sufficient time is being taken by all employees. • Address patterns of underuse. Is the manager discouraging vacation use, or are employees hesitant to take time off for some reason? Get to the root of the issue. • Assess whether PTO is being approved and used equitably across the team. If not, find out why and address any disparities. • Ask employees for feedback. You can periodically survey employees to find out what is and isn’t working for them. Just remember that if you ask employees for their input, it’s important to follow up and address their concerns. 6. Don’t Forget the Legal Stuff • Ensure your PTO policies align with all applicable federal, state and local leave laws — including paid family leave, paid sick leave and accrual requirements. Note that some states have banned “use-it-or-lose-it” PTO policies or require employers to pay out accrued but unused PTO at the end of employment. • Employers with multiple locations may need to make jurisdiction-specific adjustments. • Be sure to create a clear and objective process for approving or denying vacation requests, whether based on performance issues, busy seasons or seniority during popular vacation times. • Document your legitimate business reasons for denying requests. Make sure decisions are made consistently and fairly to reduce the risk of discrimination claims. Consult with legal counsel, if needed, to ensure the denial doesn’t interfere with protected leave. • Train managers on PTO policies and basic leave-law compliance and let them know who to contact on your HR or legal team when issues arise. 7. Lead by Example We’ll end with one of the most important aspects of a thriving workplace culture: Remember that your senior leadership team sets the tone for the entire organization. To embrace loud vacationing, your leaders must prioritize and value their own time away from work — and they should let your employees know about it. To set the tone, think about taking these actions: • Encourage senior leaders and all managers to mention in their internal out-of-office message that they are on vacation and disconnecting while away. Be sure they designate a point person for critical issues in their absence. • Talk about PTO in team meetings. Give space for employees to share their vacation plans or post-vacation stories — but also be sure to respect their privacy. • Create a space on your internal portal or team site where employees can voluntarily share their vacation photos. (You can designate someone in HR to upload submissions and ensure professionalism.) Conclusion Fisher Phillips will continue to monitor developments in this area and provide updates as warranted, so scan the QR code to subscribe to Fisher Phillips’ Insight System and get the most up-to-date information. For further information, contact your Fisher Phillips attorney. https://www.fisherphillips.com/en/Subscribe.html Sources 1https://www.empower.com/the-currency/work/pursuit-of-pto-research 2https://www.pewresearch.org/short-reads/2023/08/10/more-than-4-in-10u-s-workers-dont-take-all-their-paid-time-off/ 3https://www.glassdoor.com/blog/ why-employees-dread-returning-to-work-after-pto/ 13 UTAH AUTO DEALER
Zero Cost, Zero Reimbursement — Not So Fast BY JORDAN JANKOWSKI, ARMATUS DEALER UPLIFT Manufacturers supplying warranty parts at zero cost or on an “exchange” basis is a practice that has been around for a long time. However, this continues to be a misunderstood topic in terms of how the manufacturers actually compensate for these parts, versus how they are required to compensate the dealer under various state laws. This practice, where manufacturers supply high-ticket parts to dealers at no cost, has become more common. While this approach might appear beneficial to some on the surface, it often results in financial challenges for dealers, who receive minimal handling allowances instead of a retail markup. The following article explores the complexities surrounding zero-cost parts, focusing on the legal landscape nationwide, where specific provisions exist to ensure dealers are compensated fairly. We delve into the process, the challenges dealers face, and the potential strategies you can employ to secure the retail mark-up dealers are entitled to by law. Zero-Cost Part Provision Concept Manufacturers sometimes supply warranty parts to dealers at zero cost or on an exchange basis. This can vary from manufacturer to manufacturer, but typically includes high-ticket parts such as radios, navigation units, transmissions, engines and EV batteries. When it comes to these “exchange components,” manufacturers have historically only paid a handling allowance, 14 UTAH AUTO DEALER
which can range from approximately $25-$450, depending on the part. However, there are currently 27 states that mandate both warranty parts reimbursement at retail rates and have a specific zero-cost parts provision. This statutory mandate requires a manufacturer to compensate for ALL parts at a retail mark-up, and therefore, only providing a handling allowance is in contravention of such mandate. Of course, these states have enacted a specific provision because of the manufacturer’s reluctance to pay on these parts. Nationwide, 49 states have legislation for retail compensation on warranty parts, and there is a logical argument that dealers are entitled to retail on zero cost parts, even if a specific provision is not in place. The concept is simple: If a warranty part is provided at no cost, the manufacturer is still required to compensate the dealer at their retail mark-up based on the cost of the part as listed in the manufacturer’s price schedule. The realization of this reimbursement can be anything but simple, depending on the manufacturer and state. While certain parts may be supplied at no cost due to legitimate factors, there is a growing concern among dealers that many high-cost parts are being supplied at no cost solely to circumvent paying retail mark-up. The Process Unfortunately, the process is all over the board depending on the manufacturer and state. Some manufacturers have procedures in place that allow the dealer to easily submit their claim and receive retail reimbursement. Of course, some manufacturers may be willing to pay on most zero-cost parts, but may balk with respect to EV batteries, which have been a huge point of contention nationwide. Many also seem to have nearly no formal process in place, and will often make it difficult to obtain information on how to properly submit the warranty claim. This may be by design in many cases. A good starting point for a dealer would be to reach out to their regional representative in the process of determining how to submit for retail reimbursement on exchange parts. Most likely, this will be some form of manual submission. A point of caution would be to ensure how the claim is characterized by the manufacturer, so that it doesn’t impact your warranty expense report (EPVS/CPVS), which could affect your warranty expense calculation and could ultimately lead to an audit. Reimbursement Example The following is an example of a radio that a particular manufacturer supplies at no cost. The wholesale cost of this part is $995, but the handling allowance is a measly $25. In many states, you are entitled to your full retail markup on ALL parts. Meaning, a dealer with a mark-up of 80% would net $771 in additional gross profit on this part alone. When you consider all exchange components, a dealer could be looking at many thousands per year in additional profit that could be put to good use, such as helping to pay and retain quality technicians. ON AVERAGE, UT DEALERS ADD $105,996 IN PARTS UPLIFT ANNUALLY ARMATUS HAS COMPLETED OVER 205 SUBMISSIONS IN UTAH ON AVERAGE, UT DEALERS ADD $95,100 IN LABOR UPLIFT ANNUALLY ARMATUS WORKS WITH 73% OF UTAH DEALERS OUR COMMITMENT TO OUR CLIENTS: ÙYou Won’t Lift a Finger: Armatus does all the work for you. ÙFully Contingent Fee: You only pay when you are approved. ÙSpeed and Accuracy: No one completes a submission faster. ÙOptimization: Proprietary software guarantees you the best result. (888) 477-2228 | info@dealeruplift.com WWW.DEALERUPLIFT.COM If you have already completed a submission in-house or with another vendor, you may still have significant opportunities to gain more. If we can’t improve your results, you owe us nothing. Between our scientifically proven optimal results, and our speed of processing, we will literally pay our own fee. Reach out today for a no-obligation evaluation of your parts and labor rates. PREFERRED PARTNER OF 15 UTAH AUTO DEALER
The Bottom Line for Dealers In the 27 states with a zero cost provision, the law is clear that you are entitled to retail reimbursement on exchange components. But while this particular provision in the law is designed to be self-effectuating, many manufacturers will interpret it otherwise, meaning you must “ask” for the reimbursement to receive it. For some lucky dealers, their experience is that if they ask, their manufacturers may simply comply. In other cases, dealers have had to send in a letter on their letterhead or attorney letterhead. Some who took this step have found success. Others have indicated that “it’s impossible”; in such cases, where you have exhausted all your practical resources, you will need to make a business decision as to whether to pursue your rights legally. While suing your manufacturer, or at least threatening to do so, is neither desirable nor preferable, there may be no alternative with respect to a manufacturer who is not complying with the law. But there’s clear evidence that some dealers are receiving retail reimbursement on many or all exchange components — with the possible exception of EV batteries — without resorting to litigation or the threat thereof. Some dealers asked for reimbursement and are collecting significantly more gross profit without pushback or retribution from their manufacturers. While the process of securing fair reimbursement for zero cost parts can be complex and varies widely depending on the manufacturer and state, by understanding your statutory rights and taking the necessary steps to request retail reimbursement, dealers can potentially significantly enhance their profitability and ensure they are compensated fairly for the parts they provide during warranty repairs. Jordan Jankowski is the chief operating officer at Armatus Dealer Uplift. He has played a key role in consulting on 21 warranty reimbursement laws across the country and is widely considered a subject matter expert in this highly technical arena. Jordan manages a team of over 60 people who produce thousands of retail warranty reimbursement submissions each year. 16 UTAH AUTO DEALER
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New light-vehicle sales in September 2025 reached a SAAR of 16.4 million units, up 3.5% year over year. September was a solid sales month as many consumers headed to dealer lots before EV tax credits expired on Sept. 30. Battery electric vehicle (BEV) sales hit an all-time high in market share and accounted for 11.8% of all new vehicles sold. This market share was up nearly two percentage points from August 2025, which was also a strong month for BEV sales. Year-to-date, BEV sales accounted for 8.4% of all new vehicles sold, an increase of 0.7 percentage points compared to the same period last year. And for third-quarter 2025, BEV sales increased 24.1% year over year. Plug-in hybrid electric vehicles (PHEV), which were also eligible for the tax credits, didn’t perform nearly as well as BEVs. PHEV sales in September 2025 accounted for just 1.7% of all new vehicles sold, which is right in line with their year-to-date market share of 1.8%. The average discount on a new vehicle increased slightly from August to September. According to J.D. Power, average incentive spending per unit should total $3,116, up just $24 compared to August 2025. J.D. Power notes that more incentive spending was targeted at EVs. Expressed as a share of the average MSRP, overall incentive spending is expected to be 6.1%, while incentive spending for non-EVs should reach just 4.8%. New light-vehicle inventory on the ground and in transit totaled 2.65 million units at the end of September 2025, up by 6.2% compared to August 2025 but down 5.9% year-over-year. Looking ahead, we expect inventory levels to end the year slightly below their levels at the end of Q3. New light-vehicle sales have been solid so far through the third quarter, with a year-to-date SAAR of 16.4 million units — an increase of 4.7% year over year. We believe there has been some significant pull-ahead volume, as consumers rushed to dealer lots earlier in the year before tariffs took effect and in recent months as consumers purchased EVs before the end of tax credits. The big question now: Will volume hold in the final quarter of the year and into next year as 2026 models arrive on dealer lots? We have already seen several OEMs release price increases in the mid-single-digit percentage range for 2026 models, and we are watching closely to see how much — and when — OEMs will pass along tariff-related price increases. Given the strong sales performance so far, we have increased our 2025 sales forecast to 15.9 million units. September 2025 BY PATRICK MANZI, CHIEF ECONOMIST, NADA 18 UTAH AUTO DEALER
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Leadership in Times of Crisis A crisis within an organization can happen at any time, whether it be a new piece of legislation that turns the industry on its head, a pandemic that brings society to its knees or something in between. Effective leadership during a crisis can significantly influence the eventual outcomes for your team and organization. It goes without saying that when faced with a crisis, normal routines are disrupted. If a company is not prepared, policy and procedures often go out the window, leading to confusion and a breakdown of communication lines. Even the best employees can become reactionary, making decisions based on what they think is best to solve the problem that is happening in front of them. Additionally, a crisis can cause a far-reaching domino effect of challenges. For example, if a supplier within a supply chain is disrupted, retailers in turn may not be able to meet customer demands, leading to poor customer satisfaction. And with today’s tech-savvy consumers, bad news can spread fast. We all know how a few poor online reviews can affect the financial bottom line. As a leader, the way you handle a crisis sets the tone for the entire team, good or bad. If you are prepared for the unexpected, it can significantly reduce any fear and anxiety that your employees might be feeling. There are real benefits to being proactive and having a “just-in-case” backup plan ready to roll out at a moment’s notice. 21 UTAH AUTO DEALER
Proactive leadership involves meticulous planning and preparation. It allows an organization, in the event of a crisis, to move from plan A to plan B and implement the necessary changes smoothly. And the good news is that you don’t have to make these plans alone. Involving the management team — and employees when appropriate — helps to foster a sense of commitment and plan ownership within your organization. By not having a crisis management plan in place, employees can and most likely will lose trust in leadership. Believe it or not, leading by influence on a day-to-day basis can help a company’s upper management prepare for a crisis. This type of leadership guides and inspires others through actions, words and ideas as opposed to solely relying on title, authority or position. It involves skills like active listening, setting a good example and building strong working relationships with the team. Attention to and development of these skills is absolutely vital. The idea that a leader will be forged in a crisis — that they will rise to the occasion with skills previously unseen — is simply unrealistic. But if you have the skills that keep you involved and show a true interest in employee well-being, and you are consistent in your behavior, you’re more likely to conduct yourself in the same way during a crisis. Taking a proactive and strategic approach to crisis management involves a number of core elements: • Identification: Conduct risk assessments to help identify potential crises before they occur. • Planning: Develop plans and procedures that specifically address various scenarios, including resource allocation and communication protocols. • Communication: Establish strong lines of communication. Without clear, transparent Effective leadership during a crisis can significantly influence the eventual outcomes for your team and organization. communication, no plan, no matter how good, will work. It’s been said that communication makes the world go round, and to that point, in a crisis, effective communication is vital to making it through difficult times successfully. Communication can make the difference between your business weathering the storm or suffering operational and/or reputational damage. • Response: Assign roles and responsibilities to implement your plan in the case of a crisis. This may involve taking immediate action to protect your people and property, as well as informing stakeholders. Leaders should be open to new approaches and willing to adjust strategies as the situation evolves. • Recovery: Assess your plan once normal operations are restored. What parts worked? What can be done better? Take this opportunity to learn and improve preparedness plans. However, it’s important to remember that even the best plan can fail if people are not prioritized, both employees and leaders alike. Strong leadership in action can help employees understand that a crisis does not have to lead to the destruction of the organization or the loss of their jobs. In fact, the ability of those in charge to be agile and make decisions may give employees hope as they realize that their leaders were prepared for the event and competent enough to get them through it safely. Equally as important is self-care, especially during times of crisis. Leaders should take time to eat healthy and make sleep a priority. When possible, try to find a moment to step back from the situation, refocus and find perspective. And, don’t try to do it all yourself. After all, you’ve spent time planning and preparing your team — give your plan and your employees the chance to make things work. Crises are bound to happen, but with a little planning and a lot of teamwork, you can successfully navigate the storm instead of bracing for impact. 22 UTAH AUTO DEALER
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