Mikelle Barnhart, compliance officer for the McCarthy Auto Group in Missouri and Kansas, has found that making compliance a collaborative, engaging experience can significantly improve dealership performance. Barnahrt joins Shannon Roberts of AFIP on this episode of Compliance That Works to further elaborate on how McCarthy Auto Group drives the compliance culture.
Through initiatives like “Cookies and Compliance” and “Donuts and Don’ts,” Barnhart hosts short, informal sessions at each dealership location to make regulatory education more approachable while reinforcing key compliance practices. The meetings are designed to shift the perception of compliance from a punitive audit process to a coaching resource that supports dealership teams.
Building a culture
Barnhart said the goal was to transform compliance from a checklist-driven program into a companywide culture supported by leadership. The effort required strong backing from dealership owners and leadership, who encouraged Barnhart and finance leadership to hold regular, on-site training sessions at each store rather than centralized meetings.
The sessions typically last 30 to 60 minutes and include employees from several departments, including finance, accounting, service, and office management. By involving multiple teams, the program addresses compliance issues across the entire dealership operation, from buyer’s guides and addenda to registration and payoff documentation.
Changing perceptions of compliance
Before the initiative, Barnhart said compliance was often viewed as an internal auditor role focused primarily on identifying mistakes. She noted that dealership staff typically associated compliance visits with audits, write-ups, and discussions about potential financial risk.
By making herself more accessible and focusing on coaching rather than discipline, Barnhart said the perception has shifted. Employees now regularly reach out for guidance before making decisions, helping the organization move from a reactive compliance approach to a proactive one.
While the group meetings focus on trends and process improvements, individual performance issues are addressed privately.
If repeat compliance issues arise, Barnhart and the finance director meet one-on-one with the employee to provide coaching and address the issue directly. Formal disciplinary steps are used only if problems continue. This approach allows the group sessions to remain collaborative and educational while maintaining accountability.
Measurable operational improvements
According to Barnhart, the initiative has produced several measurable improvements across the organization.
The dealership group has seen increases in per-vehicle retail (PVR), fewer chargebacks, and faster deal approvals and funding times. Improved documentation and processes have also helped reduce compliance risk with regulators, including federal agencies and state enforcement bodies. Barnhart said the improvements have also strengthened customer trust and increased retention.
The McCarthy Auto Group currently operates nine dealership rooftops representing multiple manufacturers, each with different compliance requirements and operational challenges.
To address those differences, Barnhart conducts location-specific audits before each visit, reviewing 25 deal jackets per store and analyzing reporting data from dealership management systems and compliance tools. The sessions then focus on trends identified in the audits as well as manufacturer-specific issues such as incentives, advertising practices, and product penetration.
Career built on compliance expertise
Barnhart began her career in the automotive industry after being recruited by Zurich Insurance directly out of college, where she investigated fraudulent dealership funding practices.
She later worked with Vantile, gaining deeper experience in compliance processes and regulatory standards before joining the McCarthy Auto Group in 2012. Barnhart credits the dealership group with allowing her to grow and build a compliance culture that supports both employees and dealership performance.
