The Stockdale Paradox was a term first coined by author Jim Collins in his book Good to Great. Named after a US Admiral, Jim Stockdale, who was held captive and tortured brutally over an eight-year period during the Vietnam War. Jim explained that those imprisoned, who were optimistic about getting out early, ended up never getting out. Whilst those who remained realistic about the fact that they would be imprisoned for a long time but kept faith that one day they would get out, ended up better off.

So, what has that got to do with our industry?

It has been a challenging time for many, with difficult economic headwinds affecting the consumer, in turn impacting on car sales. Business leaders need to acknowledge this, but at the same time maintain faith in there, and their industries, ability to overcome the challenges.

Acknowledging the issues, we are facing, sets you up to tackle the challenges by doing something about them.

Maintaining faith that you will be able to deal with them gives you and your teams the momentum and energy to prevail, without underplaying the fact that things are difficult.

What can dealers do? Remain positive despite the undoubted challenges

The market is in constant flux, the economic climate is uncertain, and the automotive landscape is increasingly competitive. However, we could all benefit from adopting Jim Stockdale’s approach to life, by accepting and facing head-on the current challenges that impacting the market: The digital challenge; supply chain issues; rising petrol prices; inflation; interest rates; and the fear of not remaining relevant, which are all disrupting the automotive industry right now. Dealers must embrace and analyse these factors. We should also remain optimistic that as an industry we have the ability to adapt and change, and to emerge from the process more efficient and effective as businesses than we were before.

Enjoy the paradox!

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