Are You Confusing 1:1s with Performance Reviews? Why It’s Hurting Your Dealership Culture

In the fast-paced world of automotive retail, communication is everything. But recently, I’ve seen a common mistake—even among seasoned dealership managers (myself included at times): letting regularly scheduled 1:1 meetings morph into performance reviews.

It sounds subtle. But this confusion can damage trust, reduce employee engagement, and actually work against the high-performance culture you're trying to build.

Let’s break down the difference—and more importantly, what to do about it.


1:1s Are Not Mini Performance Reviews

A 1:1 meeting is a scheduled, recurring check-in between a manager and an employee. According to SHRM and HBR, these meetings should focus on engagement, support, and understanding what's impacting your team members—personally and professionally.

They are about lead indicators: the factors that influence performance before it happens.

Ask yourself:

  • What’s on their mind this week?

  • What’s helping or hurting their momentum?

  • Are there any internal frustrations or blockers I can help remove?

Done right, 1:1s are proactive coaching tools, not evaluations. They’re your opportunity to strengthen trust, build psychological safety, and get ahead of problems before they show up on a P&L.

Performance Reviews Are About Lag Indicators

Performance reviews, on the other hand, are structured conversations centered on results. They look backward at metrics like:

  • Sales volume or units sold

  • CSI and Google review scores

  • Appointment-to-show ratios

  • F&I penetration or product sales

  • Fixed ops KPIs

These reviews are critical. But when you start turning your weekly or biweekly 1:1s into mini scorecard sessions, you blur the lines—and that’s where leadership effectiveness drops.

The Dealership Analogy: 1:1s Are Like a Walkaround, Not the Final RO

In fixed ops, we don’t wait until a blown engine to talk about maintenance. Service advisors check in early and often, addressing squeaks before they become breakdowns.

It’s the same in management.

In fact, I’ve made it a policy in my stores:

No employee gets a formal disciplinary write-up unless they’ve had at least three 1:1s in the past 100 days (excluding fireable offenses, of course).

Why? Because most issues are coachable long before they become critical. This approach has helped my teams feel seen, supported—and accountable.


Top Mistakes GMs and Managers Make with 1:1s

If you’re a general manager, GSM, or department lead, here are some common traps to avoid:

  • Mistake #1: Turning 1:1s into “check-the-box” reviews

Don’t just review last week’s numbers. Dig deeper. Ask what impacted those numbers.

  • Mistake #2: Skipping documentation

A quick note from each 1:1 helps track trends and show your team you’re listening.

  • Mistake #3: Letting the meeting become one-sided

Let the employee talk. This isn’t about your updates—it’s about their experience.

What’s Working for Me (And Could Work for You)

Here’s my simple playbook for better 1:1s across sales, service, and admin teams:

Set a consistent cadence – Weekly or biweekly, locked into the calendar
Use a loose agenda – 70% their world, 30% yours
Start with curiosity – “How’s everything going this week?” is a powerful opener
Track change over time – Revisit notes and follow up
Save performance metrics for the review – Don’t blur the conversation goals

Why This Matters for Dealership Culture and Retention

According to a Qualtrics study, employees who have regular, meaningful 1:1s are:

  • 2.8x more likely to be engaged

  • 3.4x more likely to stay at the company

  • 2x more likely to exceed performance goals

At a time when retention in the auto industry is more fragile than ever, keeping people connected to their leaders is the single best investment you can make.

Recommended Resources for Automotive Leaders

Want to level up your leadership conversations? These expert-backed resources are a great starting point:

Final Word for Dealer Principals and GMs

If you want higher performance, better morale, and a stronger leadership culture, start by separating your coaching moments from your evaluations.

  • Use 1:1s to connect

  • Use performance reviews to assess

  • Don’t confuse the two—or you’ll lose the benefits of both

Great leaders don’t just talk. They listen, adapt, and develop their people over time. That starts with better conversations.

What About You?

How do you structure your 1:1s? Have you fallen into the “mini-review” trap?

Drop your experiences or tips in the comments—or join the conversation on LinkedIn using:
#dealershipleadership #automotivemanagement #teamdevelopment


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