April 2016 Office Technology by Business Technology Association

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CONTENTS Volume 22 • No. 10

FEATURE ARTICLES 10

Document Management Are you letting opportunities pass you by?

COURTS AND CAPITOLS Obligations & Rights Another look at changing employment laws

by Robert C. Goldberg BTA General Counsel

by Brent Hoskins Office Technology Magazine

Many office technology dealerships have at least tried to sell document management systems. Many others have found moderate to great success with the software offering. One could argue that it is the perfect fit for any dealer seeking to generate revenue from both paper and digital documents.

In my February column, we reviewed some employment law changes. Following are additional topics that may require your attention.

P R I N C I PA L I S S U E S Xerox’s ConnectKey Manufacturer hosts ‘smart MFP’ press briefing

Spring Break BTA Southeast hosts event in New Orleans

by Brent Hoskins Office Technology Magazine

On March 10, Xerox Corp. announced that it is expanding what MFPs can do in the workplace through its ConnectKey technology ecosystem.

by Brent Hoskins Office Technology Magazine

BTA Southeast hosted its Spring Break event March 18-19 at the InterContinental New Orleans in New Orleans, Louisiana. The event featured a keynote session by Dr. Steven Shepard of Shepard Communications Group, a dealer panel moderated by David Ramos of InfoTrends and seven additional educational sessions.

The CEO Obstacle A potential contributor to underperformance by Gil Cargill Sales Acceleration Coach

In many of the consulting engagements I have had over the past 39 years, the real sales productivity obstacle was the CEO and/or business owner. I do not pretend for a minute to say that CEOs/owners are deliberately sabotaging themselves. However, their actions sometimes contribute to the persistent underperformance of the sales force.

REFLECTIONS ON 90 YEARS 22

A Time to Celebrate & Reflect ‘We owe a great deal to NOMDA and, now, BTA’ by Frank G. Cannata Marketing Research Consultants

Although some may believe I was there at the beginning of NOMDA, I can assure you I was not. However, 1926 is a year our industry should recognize.

SERVICE CONNECTIONS Stop Devaluing Your Service It can diminish your dealership’s profitability

by Ken Edmonds Service Management Coach

One of the biggest challenges in our industry is achieving the net profit that helps to fuel future growth.

SELLING SOLUTIONS Hire With Your Head It is tough, but to succeed, it is essential

by Troy Harrison Troy Harrison & Associates

Are you hiring with your head or your gut? When it comes to hiring salespeople, the majority of bad hires are caused by hiring with the gut.

D E PA R T M E N T S Business Technology Association

• BTA Highlights

Executive Director’s Page

BTA President’s Message

Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Honoring BTA’s Most Long-Term Members

n this space in the March issue of Office Technology magazine, in recognition of the Business Technology Association’s (BTA’s) 90th anniversary celebration this year, I answered, in part, the following question: Which of our member dealerships have been members the longest? Specifically, given that “90” is the focal point this year, I listed the first half of BTA’s 90 most long-term member dealerships (continuous members, based on the BTA database). To complete the list, below is the balance of our most long-term member dealerships, listed by the year they joined the association. Please join me in thanking and congratulating this special group of member dealerships. 1975: American Office Machines Inc., Metarie, LA; Baker Office Solutions LLP, Florence, SC; Bay Copy, Rockland, MA; Copy & Camera Technologies Inc., Lafayette, LA; Duplicating Consultants Inc., Amherst, NY; Gobin’s Inc., Pueblo, CO; J & H Office Equipment Inc., Bozeman, MT; Memphis Communications Corporation, Memphis, TN; Office Plus Solutions & Supply, Waukegan, IL; Taylor Business Equipment, Chicago, IL 1976: Carolina Business Equipment Inc., Columbia, SC; H.L. Dempsey Co. Inc., West Springfield, MA; Hasselbring-Clark Co., Lansing, MI; Sumner Group Inc., St. Louis, MO; Tri-City Business Machines, Kingsport, TN 1977: California Business Machines, Fresno, CA; Electronic Business Machines Inc., Lexington, KY; James Imaging Systems Inc., Brookfield, WI; Miller Services, Charlotte, NC; Office Copying Equipment Ltd., Milwaukee, WI; Pacific Office Automation, Beaverton, OR

1978: Idaho Business Systems Inc., Pocatello, ID; King Office Service Inc., Mansfield, OH; Merrimack Valley Business Machines Inc., North Chelmsford, MA; Regional Business Systems Inc., St. Michael, Barbados; Specialty Business Solutions Inc., New York, NY; Stone’s Office Equipment Co. Inc., Richmond, VA 1979: Advanced Systems Inc., Waterloo, IA; Commonwealth Digital Office Solutions, Sterling, VA; Koch Brothers, Des Moines, IA; Lockwood Moore Inc., Reno, NV; New England Copy Specialists Inc., Woburn, MA; Ohio Business Systems Inc., Worthington, OH; Standard Office Systems of Atlanta Inc., Duluth, GA; Stratix Systems, Wyomissing, PA; WPS Inc., Hagerstown, MD 1980: Copy Products of San Antonio, San Antonio, TX; Gateway Business Systems Inc., Munster, IN; Purvis Business Machines Inc., Meridian, MS; Shore Business Solutions, Farmingdale, NJ; Topp Business Solutions, Scranton, PA 1981: ABS Business Products Inc., Cincinnati, OH; Data Copy of Louisville, Louisville, KY; Fireside Office Solutions, Bismarck, ND; Modern Office Methods, Cincinnati, OH; Preferred Office Products Inc., Fort Smith, AR We will also recognize these member dealerships at BTA at 90: A Celebration, a special event to take place on June 10 at the historic Kansas City Union Station in Kansas City, Missouri. For details, visit www.bta.org/BTA90. The event will follow the 2016 BTA National Conference, which will take place June 8-10 at the InterContinental Kansas City at the Plaza. For a detailed look at the educational session lineup and exhibitors, or to register for the event, visit www.bta.org/BTANational Event. I hope to see you in Kansas City. n — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Frank G. Cannata, Marketing Research Consultants www.cannatareport.com Gil Cargill, Sales Acceleration Coach www.gilcargill.com Ken Edmonds, Service Management Coach ken.edmonds@CKE-Enterprises.biz Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Harry Hecht, Business Coach harryhecht@gmail.com

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2016 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material. However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

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BTA PRESIDENT’S MESSAGE 2015-2016 Board of Directors

f you are searching for the “must-attend” office technology industry event of this year, I urge you to register for the 2016 BTA National Conference, to be held June 8-10 at the InterContinental Kansas City at the Plaza in Kansas City, Missouri, the home of the Business Technology Association (BTA) since 1985. Hosted by BTA MidAmerica, this event is specifically designed for the independent dealer, with a carefully crafted educational lineup and 50 exhibiting sponsors. The event will also provide a variety of outstanding networking opportunities, including an evening at the National World War I Museum and Memorial. The 2016 BTA National Conference will be held in conjunction with BTA at 90: A Celebration, a special event commemorating the association’s 90th anniversary, which will take place Friday evening, June 10, at Kansas City Union Station. National conference attendees receive free admittance. See page 11 or visit www.bta.org/BTA90 for details. The 2016 BTA National Conference will feature a keynote address, “Combat Leadership: Building High-Performance, Winning Teams,” with former Navy SEAL officer Leif Babin, as well as two panel discussions. The first panel, “The BTA Channel: A Look Ahead,” will be moderated by Robert Palmer of International Data Corp., and will feature panelists from four OEMs: Doug Albregts, Sharp Imaging and Information Company of America; Darren Cassidy, Xerox Corp.; Matt Smith, Samsung Electronics America; and Rick Taylor, Konica Minolta Business Solutions U.S.A. Inc. The second panel, “Beyond Hardware: Opportunities for Diversification,” will be moderated by Frank Cannata of Marketing Research Consultants,

and will feature panelists from five software companies: Mark Hart, Access Control Devices Inc.; Glenn Johnson, PSIGEN; Jeff McWilliams, Square 9 Softworks; George Seymour, Nuance Document Imaging; and Andrew Wade, Umango. There will also be eight additional educational sessions: “Adjacent Opportunities, Recurring Liabilities,” with Bob Goldberg, BTA general counsel; “Sales Metrics for Managed Services — What Good Looks Like,” with Mitch Morgan and Chris Ryne, Growth Achievement Partners; “Tribal Leadership: Because Culture Eats Strategy for Breakfast,” with Mark Taylor, Vistage International; “Are You Prepared to Engage Buyer 2.0?,” with Chris Glover, Ricoh USA Inc.; “Marketing to Make Managed Services Mainstream,” with Darrell Amy, Dealer Marketing; “Sales Manager Certification: Is This the Missing Link to Salesforce Optimization?,” with Tom Cooke and Kim Ward, Learning Outsource Group; “Digital Production Trends & Emerging Opportunities,” with Ron Gilboa, InfoTrends; and “A Strategic Plan: Paramount to a Dealership’s Survival,” with Harry Hecht, business coach. Dealer registration for the 2016 BTA National Conference is only $199, and includes: all educational sessions and panel discussions; Wednesday welcoming reception; Thursday and Friday breakfast and lunch; Thursday tour and dinner at the National World War I Museum and Memorial; and entrance to BTA at 90: A Celebration. BTA member dealers receive 2-for-1 registration. I hope you’ll join us June 8-10 to learn from industry leaders, visit the exhibitors, network with your fellow dealers and celebrate BTA’s 90th anniversary. I know you will leave Kansas City informed and inspired! For more information, see the ad on pages 2-3 or visit www.bta.org/BTANationalEvent. n — Dave Quint

President Dave Quint Advanced Systems Inc. 2945 Airport Blvd. P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com President-Elect Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com Vice President Dan Castaneda International Copy Machine Center 1515 Lee Trevino, Ste. EE El Paso, TX 79936 dan@icmc-elp.com BTA East Greg Gondek ACT Group 20 Commerce Drive Cromwell, CT 06416 greg@advancedcopy.com BTA Mid-America Bob Evans DigiTec Office Solutions Inc. 12560 Reed Road, Ste. 200 Sugar Land, TX 77478 bobevans@digiteconline.com BTA Southeast John Eckstrom Carolina Business Equipment Inc. 5123 Bush River Road Columbia, SC 29212 johne@cbesc.com BTA West Cathy Dimon Northern Business Systems 3526 International Fairbanks, AK 99701 cdimon@acsalaska.net Immediate Past President Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Document Management Are you letting opportunities pass you by? by: Brent Hoskins, Office Technology Magazine

any office technology dealerships have at least tried to sell document management systems. Many others have found moderate to great success with the software offering. One could argue that it is the perfect fit for any dealer seeking to generate revenue from both paper and digital documents. This may be particularly true in a world where many documents are now forever digital. If you think the exclusive focus of selling document management systems is the scanning of documents from banks of file cabinets in order to reduce file space, making documents easier to locate, think again. While that is undoubtedly a goal in many environments, today, the document management software conversation has evolved given the changing nature of the workplace. “If you go back 15 years, it [document management software] was typically used for scan, store and retrieve; it was a replacement for the file cabinet,” says Stephen Young, president and CEO of Square 9 Softworks. “About 10 years ago you started to see ‘workflow’ introduced. Then, probably about five years ago, we started to see this trend toward business process automation. That’s the way that we present ourselves today.” Just a few years ago, there was still a focus on “the four C’s — compliance, collaboration, continuity and, of course, cost,” says Young, noting that the first three attributes are now just assumed expectations. “What we’re seeing is that the conversation is fully centered on how to increase efficiency. ‘How are we going to reduce our operating costs?’ That’s the conversation. They’re coming in asking: ‘How can you improve this process? How can you make it so that, maybe, I don’t have to make another back-office hire?’” Steve Behm, vice president of sales for the Americas at DocuWare, shares similar comments. “Today, the conversation

has evolved into document processes — managing business processes that may involve documents,” he says. “So, workflow is very important at this point in time. That is, how a digital document flows through an organization instead of a paper document. When you start talking about that, it kind of opens this door up to: ‘How does it benefit a company?’ Well, when you are talking about workflow processes, it can benefit a company in a thousand different ways.” While the conversation is changing, so, too, is the method of delivery. As one would expect in today’s world, document management software is no longer simply relegated to being on-premise, loaded on a local server. “Within the last few years, we’ve certainly seen more and more inquiries about Laserfiche’s cloud offering,” says Hedy Belttary, senior vice president of sales at Laserfiche. “We definitely see that as a trend and I don’t necessarily think it’s going to go away. What I do see, though, is that both types of environments are going to be coexisting. Different organizations prefer one over the other for different reasons.” At DocuWare, Behm says, the transition from on-premise to cloud-based has been particularly noteworthy. “This past year, we saw a big change,” he says. “At the beginning of last year, we sold about 5 percent of our deals as cloud and 95 percent on-premise. By the end of last year, we were selling about 25 percent of our deals in the cloud versus on-premise. That trend has continued the first two months of this year; now we’re at about 30 percent. So, it’s really starting to change from this on-premise world to this cloud world.” While he notes that “a lot of people are still very hesitant about putting their documents in the cloud,” given the data breaches occasionally reported by the media, Young says he sees nothing but increasing demand for Square 9’s cloudbased system. “We introduced it about two years ago; there was not that much demand the first year,” he says. “However,

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second thought. Howas we continued to develop ever, I think the office the product, adding business “The transition to providing technology industry as a process automation and Web solutions can actually be whole has done a pretty forms, I think people became quite easy, as selling good job of it. I would more and more comfortable document management guesstimate that 75 to 80 with it. We are starting to see it software is complementary to percent of our partners take off; it’s probably about 20 to what they’ve been doing for are in the BTA Channel.” 25 percent of our business right Behm says he can now. I wouldn’t be surprised to years. Most office technology understand the logic of see it increase to 40 or even 50 dealerships are sitting on a gold mine.” those dealers who have percent of our business over the — Hedy Belttary not moved forward with next two years.” Laserfiche document management. With the changing conversa“They sell office equiption and the transition to cloudbased delivery — both perhaps presenting dealers avenues ment; that’s what they do and they’re dedicated to it,” he to further ramp up their services-led approaches and dis- says. “That’s how they make their money. I don’t fault them tinguish themselves from competitors — are more dealers for that focus. But, looking at the facts and figures out there, now jumping onto the document management bandwag- things are kind of flat. Page counts are OK, but they’re dropon? “There’s a wide range of adoption in the BTA Chan- ping. The dealerships that we deal with, the ones that get nel,” Behm says. “There are some who are very well orga- into the solutions business, are the dealerships that want to nized and very dedicated to it and some who don’t give it a be more holistic.” Those dealers who have not embraced the document management opportunity understand its value — they simply have not yet moved forward, Belttary says. “I don’t know if it’s necessarily a reluctance to adopt; I think most dealers realize that it’s something that should be high priority,” she says. “It’s a matter of dedicating time and resources to it. I Excellent haven’t come across any dealer who has said, ‘Well, none of Customer my customers are asking for this.’” Service Most of the dealers who have spoken to Laserfiche personnel “are telling us that their existing customer base is Quality asking for document management,” Belttary continues. “So, Best Focused the question for the ownership is: ‘How soon should I come Value on board and add this offering to what I already do?’ The reality of it is that if it’s not offered by a dealership, another IBPI Unique Approved company is going to come and offer it to that dealership’s Cost Great Vendor Saving customer base. So, it’s a matter of prioritizing and dedicatTeam Products ing resources to it. The common objections are: ‘My plate is too full,’ ‘We’re too busy right now,’ ‘We don’t have the reAccessible Best Prices Every Day: eAutomate Owners sources to dedicate to it’ or ‘Our sales staff isn’t there yet.’ No quotas or Vendor Will NOT But if you think about it, there never really is a perfect time. rebates Partner sell to end You just have to jump into it and do it. The dealers we’ve seen users succeed are the ones who embrace it.” When dealerships do move forward with document Q2 is a supplier of management, there is usually someone who champions the OEM and compatible cause internally, Belttary says. “They’re very hands-on with consumable products for it and they lead it to success, bringing the others on board,” office imaging machines. she says. “The transition to providing solutions can actually be quite easy, as selling document management software is complementary to what they’ve been doing for years. Most office technology dealerships are sitting on a gold mine.”

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“Dealers who successfully It appears that the payoff sell our products do it befor dealers who offer docu“When you have a cause they know the imporment management systems document management tance strategically,” he says. extends beyond simply an system in place, you’re pretty “They know the impact it’s additional source of revinvolved in that account in a going to have on driving enue. It opens the door to lot of different ways. For that equipment sales. We rounew hardware placements company to buy a piece of tinely see that pull through as well, Behm says. “When equipment from you now is on sales where a small docuyou have a document manment management system is agement system in place, a fairly easy thing for them.” the deciding factor in a large you’re pretty involved in — Steve Behm equipment sale. You will see that account in a lot of difDocuWare a $10,000 to $20,000 docuferent ways,” he says. “For ment management solution that company to buy a piece of equipment from you is now a fairly easy thing for them. drive several hundred thousand dollars worth ‘Yeah, these guys are helping us and we like the whole docu- of equipment. So, that’s why they do it more ment management system that they put in. The workflows than anything; it’s a strategic position.” n Brent Hoskins, executive director of the are going great; everything is good. Oh sure, yeah, we can Business Technology Association, is editor use a couple of printers or an MFP over here, no problem.” of Office Technology magazine. He can be Actually, Young says, most dealers take on document manreached at brent@bta.org or (816) 303-4040. agement with the specific goal of placing more hardware.

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Spring Break BTA Southeast hosts event in New Orleans by: Brent Hoskins, Office Technology Magazine

TA Southeast hosted its Spring Break event March 18-19 at the InterContinental New Orleans in New Orleans, Louisiana. The event featured a keynote session, “The Dance of Generations: Leading the Multigenerational Workplace,” led by Dr. Steven Shepard of Shepard Communications Group, and a dealer panel, “Emerging Technologies — Impact on Sales & Service Operations,” moderated by David Ramos of InfoTrends. The panelists: David Lynch, Repeat Business Systems, Albany, New York; Chip Miceli, Des Plaines Office Equipment Co., Elk Grove Village, Illinois; Doug Pitassi, Pacific Office Automation, Beaverton, Oregon; and Ken Staubitz, Modern Office Methods, Cincinnati, Ohio. There were also seven additional educational sessions led by Jerry Newberry and Jeffrey Kelly of Pros Elite Group; Mat Wolfgram of The Office Technology Group; Miceli; Mike Fleetwood and Renee Bergman of SYNNEX; Jim D’Emidio of Muratec and Kraig Kubicek of Avatara; Lindsay Dick of Collabrance; and Andy Slawetsky of Industry Analysts Inc. The exhibiting sponsors: Agent Dealer, Balboa Capital, BEI Services, Buyers Lab, Carolina Wholesale, Clover Imaging Group, Compass, ConnectWise, Continuum, Crawford Thomas, DCS, Digitek, ECi FMAudit, EDA, Epson (March 18 lunch sponsor), ESP/Ametek, EverBank, Evolved Office, GreatAmerica, Gwentaa (March 18-19 breaks sponsor), HMB, Hytec, Image Star, Impression Solutions (March 19 World War II museum/dinner sponsor), Innovolt, Katun, Laserfiche, Laser Pros International, LCA, Lexmark, LMI, Muratec, NA Trading and Technology, Nuance, OKI, Panasonic (March 18-19 breakfast sponsor), Parts Now, PHSI, Polek & Polek, Print Audit, Q2, Sentry Insurance, Supplies Network, SYNNEX, Tesseract, TonerCycle/InkCycle, Toshiba, TSAworld, Wells Fargo and Xerox (March 18 reception sponsor). BTA’s next event, the 2016 BTA National Conference, will be held June 8-10 in Kansas City, Missouri. For more information, visit www.bta.org/BTANationalEvent. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at (816) 303-4040 or brent@bta.org.

Clockwise from top: Attendees fill the ballroom during the keynote session as Spring Break gets underway; Ramos moderates the dealer panel; Craig Fitzpatrick (left) of ECi FMAudit visits with Mike Gray of On Demand, Houston, Texas; Nicole Hughes (left) of Carolina Wholesale visits with Janie and Chip Gautreaux of Bayou Office Machines, Larose, Louisiana; Shepard presents the keynote session.

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Managed IT Focus M

Spring Break included seven educational sessions led by industry experts, many of which focused on managed IT services. Top row, left to right: presenters Newberry, Kelly and Wolfgram. Second row, left to right: Miceli, Fleetwood and Bergman. Third row, left to right: D’Emidio, Kubicek and Dick. Left: Slawetsky.

Above left, left to right: Scott Saltzman and David Sansenbach of ESP/Ametek visit with Jason Banks and Bryan Lewis of Copy Zone LLC, New Orleans, Louisiana; Above right, left to right: Dale Rachal of ABM, Alexandria, Louisiana, visits with Christian Pepper and Jaryd Lafordarde of LMI Solutions; Left: BTA Southeast Administrator Linda Alwood and Spring Break Emcee and BTA Southeast President-Elect Tim Renegar announce the winners of the exhibitor and BTA prize drawings.

ost of the Spring Break educational sessions provided attendees with insight and guidance to help them move into — or claim a greater share of — the managed IT services opportunity. Among them was “Building a Managed IT Services Division,” presented by Mat Wolfgram, vice president of sales for The Office Technology Group, Milwaukee, Wisconsin. In his session, Wolfgram shared some of the details of his dealership’s development of its managed IT services division, built using an outsourced model. “I am going to tell you our story,” he said. “I’ll tell you why we went into managed services, how we are doing, some of the steps we took, the things that worked and the things that didn’t. I will also give you some recommendations on things that I think will help you.” The BTA member dealership started looking at managed IT services “because of the buzz that we were hearing,” Wolfgram said. “Obviously, we could see the numbers. Our top-tier business was going down and our MPS business was flat. We figured that we had to move, so we started looking at managed services.” While the process began with the acquisition of a small managed services provider (MSP), the dealership later expanded its IT team with new hires, Wolfgram said. Today, the dealership’s IT staff is composed of a director of IT, lead engineer, project manager, systems engineer, IT tech, help-desk tech, onsite tech and two subject-matter experts (SMEs). As candidates were being interviewed for the IT team, The Office Technology Group leaned on current customers for guidance, Wolfgram said. “We took people we were interviewing to our really good current customers to get some honest feedback on whether they would be comfortable working with them on the IT side,” he said. “We created a win-win situation.” Outside of acquiring an MSP, Wolfgram noted that good IT employees can be recruited from local MSPs. “They are way underpaid,” he said. “Some of the top people in our area make about $65,000 to $70,000. In our business, obviously our top people can make a whole lot more than that.” As noted, the dealership has embraced an outsourced model, akin to the facilities management strategy within large central reprographic departments, Wolfgram said. Specifically, the dealership has hired some of its IT employees away from current or prospective customers and then “resold” those employees’ services back to the customers. “Our IT director and our lead engineer are both former IT people from companies that we used to prospect or work with,” he said. “It has gotten us some high-level people and it has created a situation with the customers that is pretty positive, because we are ‘selling them back’ for about half of what they normally cost. This win-win can help you build up your team pretty quickly.” Wolfgram shared several customer success stories to demonstrate the benefits of building an IT services division. Among them was the story of a small local school district in a community of only 1,200 people. It started with the sale of a block of 55 hours, in part to assess the district’s IT infrastructure, he said. That initial engagement led to the sale of 40 PCs, the placement of five MFPs, implementation of a cloud backup solution and a dealership employee onsite three days a week. “They then hired us to write their five-year technology plan,” he said. “To date, in the past two-and-half years, we have done a little over a halfmillion dollars in revenue with this school district.” n —Brent Hoskins www.offi cetechnol ogymag. c om | Ap ri l 2016 | 17

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The CEO Obstacle A potential contributor to underperformance by: Gil Cargill, Sales Acceleration Coach

n many of the consulting engagements I have had over the past 39 years, the real sales productivity obstacle was the CEO and/or business owner. I do not pretend for a minute to say that CEOs/owners are deliberately sabotaging themselves. However, their actions sometimes contribute to the persistent underperformance of the sales force. Following are actions I have seen that contribute to this, as well as recommendations to cure them. n Hiring — It all starts with hiring. If you hire incorrectly, you will have poor or no sales results. CEOs/owners frequently hire based on the “likability” of a salesperson. Make sure that anyone you hire is not only likeable, but has been successful selling in the form and fashion that your market requires. Do not hire someone who has sold shoes to sell software, for instance, regardless of how likeable he (or she) may be. n Creating factions within the company — The CEO/ owner who allows any team member to disrespect other members of the team (regardless of their positions) is allowing a very negative environment to surface and, tragically, flourish. Sales is a team sport. When the CEO/owner treats sales like a team sport, productivity blossoms. Do not make the mistake of letting a salesperson bully a non-salesperson or vice versa. n Top-level criticism — I have seen many CEOs/owners publicly express frustration and/or anger with the sales results produced. These same CEOs/owners frequently make a habit of criticizing salespeople. One of the first management rules is “praise in public and criticize in private.” Violating this rule reduces morale and inadvertently causes management to overpay for continued underperformance. Many companies respond to poor salesmanship or lack of activity by overpaying. They overpay in order to get and keep salespeople, but they should be managing more effective sales processes as opposed to paying more for suboptimum work.

n Allowing inconsistent demandgeneration activities — Team members other than salespeople should be involved with demand-generation activities (i.e., prospecting). In today’s market, gaining access to decisionmakers is extraordinarily time-consuming and dramatically reduces the productivity of an outside salesperson. If you make your salespeople prospect, they will underperform relative to optimum standards. n Measuring against history — This is a common business problem. When I hear statements like, “Sales are up 15 percent versus last year,” I obviously congratulate the entrepreneur, but I always wonder if it could be better. If so, what will it take to be better? One of the benchmarks of a worldclass sales force is the fact that it has a huge database (literally everyone in the demographic sweet spot) and it touches that database frequently with educational messages. n Unequal treatment — Many small sales forces have a “favorite salesperson.” This person is similar to a teacher’s pet — the one who irritated all of us at some point in our education. If you have a teacher’s pet in your business, make sure he performs in the same form and fashion as everyone else. Maintaining a teacher’s pet damages the morale of your other employees and reduces their productivity. n Inconsistent policies — There is nothing worse than a CEO/owner changing his mind regularly. This causes the entire team to wait for the next change of mind. Consequently, the team waits and management fumes because sales results are not forthcoming. Set a course and stick with it long enough to know that you have to change. If change is required, let your team members know why you are changing, how you are changing and, most importantly, help them understand what is in it for them to work with you as you go through the process of change. n Not conducting sales training — The CEO/owner who does not conduct sales training/practice is the entrepreneur

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Cargill Apr 16.indd 1

3/31/16 8:52 AM

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After concluding a sales and management who has no idea what his salespeople Having a comp plan career at IBM, Gil Cargill launched his are doing in the field. He assumes that own consulting practice in 1978. He has his comp plan will motivate salespeople that rewards handsomely spent the past 39 years as a consultant, to perform at levels that are significantin an environment speaker and trainer, helping thousands of ly higher than the levels at which the where the salespeople businesses achieve dramatic and salespeople may want to perform. do not want to earn permanent improvements in sales n Misaligned compensation — more money is a waste productivity. Cargill has taught Remember, you cannot make an adult salespeople across diverse industries the want to make more money than he of time and energy. importance of developing sales processes, wants to make. Having a comp plan that the advantages of implementing new rewards handsomely in an environment technology and the benefits of tracking sales performance. He where the salespeople do not want to earn more money is a is a frequent speaker at national conventions and meetings of waste of time and energy. I could go on with this list, but I hope you are getting the Vistage International, formerly The Executive Committee (TEC), drift. Compare your behaviors as the CEO/owner of a busi- and has been a consultant to such organizations ness to the those described above. If some or all of them as Toshiba, ComputerLand, Micro Age, Apple, Borg Warner Weyerhaeuser and many match your behaviors, you can get tremendous improvements from your sales team, as well as a reduction in your thousands of growing small-to-medium-sized businesses. Cargill can be reached at personal stress, by embracing the possibility of changing (310) 305-7198, ext. 111 or gil@gilcargill.com. some or all of the ways that you recruit, hire/fire, train, deVisit www.gilcargill.com. ploy and coach your sales team. n

The State of the Hardcopy Industry in 2016 This webinar will provide a detailed look at the current state of the hardcopy industry. Included in the presentation is a roundup of recent OEM activities and key market trends along with an assessment of how the leading hardware manufacturers are performing financially. The presentation also offers analysis of the current supplies market including a review of recent M&A activity, lawsuits, and other factors shaping the competitive landscape for both OEM and non-OEM supplies vendors. Join us for a one-hour webinar presented by Charles Brewer, the founder and president of Actionable Intelligence, the industry’s premier market research firm, along with Christina Bonadio, executive editor of www.Action-Intell.com, as they provide their unique insights into the industry’s most important news stories and events.

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engage ‘n exchange 20 |June w w w.Webinar o f f ic et ec2016 hno loFinal.indd g y m a g.c om1 | Ap r il 2 0 1 6

Cargill Apr 16.indd 2

3/22/16 2:53 PM

3/31/16 2:19 PM

MWAi ad Apr 16.indd 1

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REFLECTIONS ON 90 YEARS

A Time to Celebrate & Reflect ‘We owe a great deal to NOMDA and, now, BTA’ by: Frank G. Cannata, Marketing Research Consultants

lthough some may believe I was there at the beginning of the National Office Machine Dealers Association (NOMDA; now BTA), I can assure you I was not. Nor was I even on the globe in 1926. However, it is a year our industry should recognize and commemorate. My first appearance at a NOMDA convention was in 1973 when I was a Saxon DSM and the convention was held in New Orleans, Louisiana. I had heard much about the event and it was definitely the place to be for a few hot and muggy days in July, especially if you were already in or hoping to be in the copier business. The vast majority of dealers making up NOMDA in those early years sold typewriters and calculators, but had picked up copiers from companies such as Old Town, APECO, 3M and Dennison along the way. In the 1970s, the rush was on. Canon, Mita, Konica and Sharp rushed in to join Minolta and Toshiba marketing copiers. During each of the next six years, I continued to attend the NOMDA convention, welcoming the opportunity to meet with dealers and do my best to sell them the products I was representing. I made the rounds from Saxon to Canon to APECO to Royal, until one day I realized that if I was ever going to do anything of consequence, it would be as an entrepreneur. In January 1979, I began a journey that I am still enjoying 37 years later. When I arrived in Las Vegas, Nevada, for that year’s NOMDA convention, all I had were some business cards and a dream. I left Las Vegas with my first two clients — Minolta and Konica. It is important to understand that during this era, the transition was toward plain paper and all dealers wanted to be in the plain-paper business. Royal had introduced the RBC-1 (manufactured by Konishiroku [Konica] back in 1973). Canon followed with the NP-70/L7 in 1974. Savin had the Ricoh-manufactured 750. Prior to the introduction of these products, it was just Xerox. If dealers were serious about getting into the business, the place to make that decision — and where they could see everything — was the NOMDA convention. The intrinsic value of NOMDA to the growth of dealers in the copy, fax and print arena was that it provided an agnostic forum for dealers to attend and see it all. At the same time, the convention provided both sales and service training, legal advice and the opportunity for dealers to

share best business practices with their peers. In 1982, I realized that I needed to publish my thoughts and analysis on what was happening in the industry to gain recognition, and for dealers and manufacturers to better understand my message. I created my “Report,” brought it to the NOMDA convention and began building a subscriber base of dealers from across the country. At the same time, I was invited to present at various NOMDA regional meetings and, ultimately, the big convention in July. NOMDA also introduced other new products, such as word processors, electronic typewriters and the biggest of them all for dealers — the facsimile machine. Sharp was the leader in fax, followed by Canon. Soon, smaller companies such as Murata (Muratec) joined the fray. Once again, dealers were discovering the new “hot box.” Technology was raising the bar and soon after, we had the analog-to-digital transition which introduced the burning question of the day: “Can dealers sell and connect devices to a computer and to a network?” I don’t have to tell you that whenever something new came along, the common (yet incorrect) observation by the resident geniuses of the day was that “dealers cannot sell it.” They could not sell plain-paper copiers, they could not sell console copiers, they could not sell word processors, they could not sell facsimile machines and they could not sell into network environments. And with the rise of the mega dealers — Alco (which eventually became IKON), Hillman and Danka — the independent dealer was said to be doomed. Of course, all of these assumptions were incorrect. Throughout, the steadfast strength that withstood all of this was NOMDA. It was NOMDA that helped dealers negotiate equitable contracts with suppliers, provided them education on new technologies and, most of all, gave them an opportunity to learn from their peers and share best practices. In 1986, my company, Marketing Research Consultants, held its first Cannata Awards Breakfast at the NOMDA show in New Orleans. We based the awards on our first dealer survey, which was conducted in 1985. Two Japanese executives, Mr. Murase and Mr. Yuasa, representing Canon and Ricoh, respectively, attended that event. Both took home awards that morning. They also thanked me and said, in an almost identical way: “You should do this every year.” I will never forget that. As Marketing Research Consultants prepares to host its

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Cannata Apr 16.indd 1

3/31/16 8:10 AM

General Counsel Bob Goldberg to our in31st Annual Awards & Charities Dinner, I dustry with the announcement last year of reflect on what has transpired over these My company ... could the Bob Goldberg Scholarship Fund. He is a many years. I am grateful most of all for never have been as dear friend and valued confidante not only the NOMDA organization and the opporsuccessful as it has to me, but also to the dealer community. I tunity to build a sustainable business. At been without the will also add that BTA Executive Director every speaking engagement I was given, I incredible start given Brent Hoskins has steered BTA through left with new subscribers. My company had some difficult times and he has done so in little in the way of financial resources and to me by a group a manner that brings great credit to our incould never have been as successful as it of dealers ... dustry — so thank you Brent. n has been without the incredible start given Frank G. Cannata is president of Marketing to me by a group of dealers who only asked Research Consultants and publisher of for me “to tell like it is.” The Cannata Report, which was first published in 1982. I have tried my best to do that and I can tell you this — my The magazine now enjoys a readership in 14 countries. son, CJ Cannata, understands and highly values our legacy In 1985, the electronically distributed and is committed to doing the same. LIVE WIRE was launched. Cannata has been in We owe a great deal to NOMDA and, now, BTA. We will the business more than 40 years and is a continue to volunteer to speak at any meeting the association well-known presenter in the office technology would like us to attend, absent of any fee. It is our way of giving industry. He can be reached at back to an organization that did so much to build an industry. fgcannata@cannatareport.com. Allow me to add that we could not have been more pleased Visit www.cannatareport.com. when BTA recognized the enormous contributions of BTA

Leading ECM Technology Profit from a Partnership with a Future

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Cannata Apr 16.indd 2

3/31/16 8:10 AM

COURTS & CAPITOLS

Obligations & Rights Another look at changing employment laws by: Robert C. Goldberg, general counsel for the Business Technology Association

n my February Courts & Capitols column, we reviewed employment law changes regarding paid sick leave, mileage rates, same-sex marriage, overtime compensation and medical marijuana. Your response clearly indicated that employee policies and procedures are areas that are often overlooked or postponed for updating. Many dealers are also seeking to modify their policies to address the employment expectations of millennials. Following are additional topics that may require your attention. Equal Employment Opportunities Lawmakers on the federal, state and local levels have continued to enact laws providing employment protections to new and emerging classes. New laws prohibit discrimination and harassment against lesbian, gay, bisexual and transgender individuals; pregnant women and women who breastfeed; and victims of sexual assault, domestic violence and stalking. The easiest revision is to include the phrase “and any other classes protected by federal, state or local law” in your equal employment opportunity section. Safe Driving Policy As we become an increasingly mobile society in which employees are always on the go but need to be connected for business and personal issues, it is absolutely essential for every dealer to draft, implement and enforce safe driving policies that prohibit distracted driving while driving a company vehicle or while on company time. By taking safety on the road seriously, a dealer will protect the health and safety of employees as well as third parties, and minimize the potential for employer liability. Many states have specific laws regarding hand-held devices, so be sure to check your jurisdiction for requirements. Smoke-Free Policy Smoke-free policies were developed to promote employee health and make the working environment more pleasant. Most states have specific laws prohibiting smoking in the workplace and enclosed public spaces. The city of Chicago just prohibited chewing tobacco at sports stadiums. Most smoking policies were prepared prior to the introduction

of e-cigarettes, so it is likely that your company’s smoking policy needs to be updated to include them. Violence and Weapons Under the “General Duty To Care” clause of the Occupational Safety and Health Act, a dealer has the obligation to protect employees from violence. This includes physical violence, harassment, intimidation and disruptions in the workplace. Prohibiting weapons in the workplace and on company property is consistent with a dealer’s obligation to protect employees. A policy should specify reporting criteria and procedures in the event workplace violence is experienced or observed. Same-Sex Couples The U.S. Supreme Court ruled that all states must license same-sex marriages and recognize same-sex marriages that are lawfully licensed and performed out of state. Same-sex married couples cannot be denied the same employment benefits enjoyed by opposite-sex couples. Dealers should revisit their policies and practices regarding equal employment opportunities and discrimination, employee benefits, family and medical leave, other leaves of absence and tax information to ensure the language is inclusive of same-sex marriages. Social Media More individuals now communicate on social media than they do via telephone. Dealers should have social media policies that establish what can and cannot be communicated. These policies must be prepared so as not to interfere with protected rights such as free speech. Avoid overly broad and ambiguous language. Dealers must be knowledgeable regarding their employment obligations and employee rights. Policies and procedures need to be reviewed and updated regularly. The BTA Legal Hotline is always available to answer member questions at (800) 869-6688. n Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com.

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Goldberg Apr 16.indd 1

3/30/16 3:34 PM

PRINCIPAL ISSUES

Xerox’s ConnectKey Manufacturer hosts ‘smart MFP’ press briefing by: Brent Hoskins, Office Technology Magazine

n March 10, Xerox Corp. announced that it is expanding what MFPs can do in the workplace through advancements to its ConnectKey technology ecosystem, a set of software and solutions designed to address the increasingly mobile workforce and the need for more advanced IT security across connected devices. The company now has 14 ConnectKeyenabled i-Series MFPs equipped with Jim Rise apps to speed up paper-dependent business processes, making it easier for users to collaborate and work more effectively. The day before the announcement, Xerox executives met with office technology industry editors and analysts at the company’s Gil Hatch Center in Webster, New York. The media briefing agenda included several sessions focused on the industry’s transformation to embrace such realities as the ascension of mobility, the Internet of Things and the number of millennials in the workplace. Jim Rise, senior vice president of the Office and Solutions Business Group at Xerox, was among the presenters. “I want to start by acknowledging that this is a pretty mature industry,” Rise said, likewise acknowledging that “we’re facing some headwinds” in the industry. “We see it in the Wall Street analysts’ reports. We’re seeing some page volume erosion out there. Nothing dramatic, but people are moving more to display technologies, to their mobile phones and tablets — that sort of thing.” Rise also referenced the price erosion experienced in hardware sales, emphasizing that it “is nothing new.” He recalled, for example, when a desktop color laser printer cost up to $10,000, now available for as little as $500. However, he added, even with price erosion, from a revenue perspective, there remain some “important areas of growth” on the hardware side, including color printers, color MFPs and A4 MFPs Today, broadening their reach beyond the industry’s hardware heritage, Rise said many in the industry are now largely focused on the solutions market, currently at $3.7 billion in North America and Western Europe with a compound annual growth rate of 4 percent forecasted through 2019. He cited the strides Xerox has made with solutions, noting that 2,300 resellers are now actively using the Xerox App Studio, a resource that facilitates the creation of customized workflows and apps that can be used with ConnectKey-enabled MFPs to make workers more productive. In addition, he said, Xerox has found success

with its Personalized Application Builder Program for channel partners. “These people take our software development kits and develop more sophisticated workflows and solutions that are customized to solve particular business problems,” he said. “We have 162 channel partners now involved in that program.” With the interest and efforts of such partners in mind and the growing focus on solutions, Rise said the new capabilities of Xerox’s ConnectKey will help to further provide a value proposition for so-called “smart MFPs” that allow users to experience a more productive workplace. “ConnectKey is really an ecosystem that has many elements to it,” he said. “One of those elements is this network of partners who are creating content and helping each other, making our equipment and solutions more relevant for today’s business problems, the Internet of Things and collaboration.” In its March 10 press release, Xerox announced the new capabilities of ConnectKey-enabled i-Series MFPs “that are adapted to the way businesses work — on-the-go, virtually and through the cloud — allowing companies to meet today’s business trends, challenges and opportunities.” Among them: n The new Xerox Easy Translation Service, which allows a user to scan a document through an MFP, snap a photo from a phone or upload it to a Web portal. The service can then securely and quickly translate information to more than 35 languages. n The @PrintByXerox App, a free mobile cloud printing solution that allows employees and visitors to securely print from any mobile or network-connected device to an MFP by way of a single email address, without IT support. n The QR Code App, which lets users connect and pair to a ConnectKey-enabled MFP with a simple scan of a QR code from their phones or tablets to effortlessly print and scan documents. n The Xerox App Gallery, which is pre-loaded directly on the user interface to give users easy access to a variety of apps from Xerox and its partners. The new ConnectKey-enabled MFPs are a “nice step forward in our evolution,” Rise said. “This isn’t the end, certainly, but we’re adding significant new capabilities; you can imagine other types of cloud services that we might be able to add to this. We’re going to continue, at Xerox, to bring innovation. We’re going to continue to develop this ecosystem — our answer to what’s happening with the trends in the marketplace.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org or (816) 303-4040. www.offi cetechnol ogymag. c om | Ap ri l 2016 | 25

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BTA HIGHLIGHTS BTA would like to welcome the following new members to the association:

Dealer Members A & E Office Machines, Morgan City, LA Advanced Digital Solutions, Mattoon, IL Advanced Document Solutions, Louisville, KY Albuquerque Image Products, Albuquerque, NM Aztec Inc., Middletown, CT Business Equipment Service, Loveland, CO CopyCorp, Melbourne, FL LaGrange Blueprint, LaGrange, GA Service Associate Member RemanResource.com, Pflugerville, TX Vendor Associate Members Imaging Solutions Direct, New Hyde Park, NY For full contact information of these new members, visit www.bta.org.

Industry Analysts Inc. Industry Analysts Inc. offers BTA members a 10-percent discount on subscriptions to its DataMaster Online (DMO) competitive sales tool, which provides product specifications, pros and cons, photos, videos and side-by-side comparisons of products and solutions. In addition, Industry Analysts offers BTA members a 10-percent discount on its MFP Reliability Widget, which allows dealers and sales reps to compare the reliability of thousands of color and monochrome MFPs. Visit www.bta.org/IndustryAnalysts for more information. For information on BTA member benefits, visit www.bta.org/MemberBenefits.

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space. BTA Vendor Associate member Cartridge Warehouse International (CWI) is a national distributor of imaging supplies for all makes and models. CWI specializes in remanufactured and compatible units while continuing to supply a full line of OEM products. Shipping is available from CWI’s California and New York warehouses — 70,000 square feet fully stocked with more than 10,000 different SKUs to drop ship your orders. With more than 20 years of industry leadership, CWI is positioned to become a preferred premier vendor and a trusted resource. www.cwitoner.com

BTA Service Associate member TotalPrint USA has one simple goal in mind — to help businesses reduce their printing costs through page volume reduction, price reduction and asset optimization. The company focuses exclusively on its customers’ business printing output while relieving IT departments of the burden of dealing with the printer fleet. Offering a suite of services designed to optimize document output costs and methodologies, it is a full-service MPS provider. TotalPrint USA monitors your network, manages your supply replenishment process and provides historical data to ensure further optimization over time. www.totalprintusa.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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Highlights Apr 16.indd 1

3/30/16 4:29 PM

SERVICE CONNECTIONS

Stop Devaluing Your Service It can diminish your dealership’s profitability by: Ken Edmonds, Service Management Coach

ne of the biggest challenges in our industry is achieving the net profit that meets the needs of the dealership principal and helps to fuel future growth. One practice that is rampant in the industry and has a strong negative impact on the net profit of dealerships is discounting service. In many ways, our industry is becoming like the airline industry right after deregulation. I had the dubious pleasure of being in that business for a brief stint. Every airline tried to have the cheapest flights in its market. The result was the loss or bankruptcy of most of the major airlines. The airlines learned their lesson and the price of seats has gone up significantly, along with their profits. The Profit Engine In one of the financial models used widely in our industry, the goal is for sales to operate at a 4-percent net loss while service operates at 54-percent profit, resulting in approximately 12-percent net profit on the bottom line. To achieve those numbers, service cannot be an item that is discounted. In any dealership, service is the engine that provides the profit for the company. You sell equipment to generate service and supply revenue, and to make the manufacturer happy. Look at home inkjet printers for proof. In many cases, you can buy a new printer for less than the price of an ink cartridge. Or look at the razor industry of days past — give away the razor to sell the blade. Yet, on a regular basis, dealerships discount their service. Ask the typical salesperson why he (or she) could not close a deal and he will claim the service rate was too high. In most dealerships, sales reps will go to their sales managers on a regular basis to get reduced service pricing so they can get deals. The Impact of Discounting Your Service In the examples on this page, I used the retail sales price compared to the equipment cost and show the relative impact of discounting service by just one mil. Example A shows the revenue at $.0085 and Example B shows the revenue at $.0075. The one-mil drop in service pricing costs the dealership $9,000 over the life of the contract. When you think about the total number of copies generated in a dealership and multiply that by your average discount, that number is the profit you are giving up. You Do Not Have to Be the Cheapest I can prove this point very easily. How many of your customers drive Yugos, Chevettes or Pintos? Those were among the cheapest cars and, yet, I would venture that none of the business

owners, CEOs or purchasing agents you deal with currently have driven one of those cars. I would venture to guess that all of the individuals you typically deal with drive much more upscale vehicles. Why? They see the value in spending more for their vehicles of choice. Build Value in Your Service This means that you need to make sure your service product is more valuable than the service product of your competition. How does your response time compare? How does your technician training level compare? How does your parts availability compare? Do you participate in your manufacturer’s service excellence programs, if available? What do your technicians do on a service call that make them more valuable to customers than your competition? www.offi cetechnol ogymag. c om | Ap ri l 2016 | 27

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company you want to be. If you want to build value in your service For new customers, you can ask if they department, then everyone on the manIf you want to build would like to have better response times, agement team needs to work toward that value in your service fewer failures and faster resolutions to goal. Look at areas where you can improve, department, then problems. They are almost always going including training, car stock, attitude and everyone on the to see value in those items. Let them know service practices. As you evaluate and immanagement team that your company is committed to achievprove each of these areas, your service will ing those goals. n become more valuable. needs to work Ken Edmonds is currently employed as a One way to add credibility to your value toward that goal. district service manager for a major copier/ proposition in service is to have data to MFP manufacturer. He has an extensive back it up. Surveying your customers on a frequent basis provides data that can be used to prove how background in the imaging business, having owned a successful dealership, served as service manager for multiple dealerships your clients feel about your service. Survey Monkey is a free and as a document solutions specialist for Sharp Electronics. service that you can use for this purpose. Also, testimonials Additionally, Edmonds has more than 40 years of from your customers can have significant impact as well. experience in the electronics and computer fields. He has attended BTAâ&#x20AC;&#x2122;s FIX: Cost Management for Service workshop, Sell the Value of Your Service Pros Elite service manager training and the Once you identify the areas where your service has real Service Managers Achieve Results training value, you need to include that in the conversation. When conducted by John Hey and John Hanson for you are dealing with current customers, you want to review Sharp Electronics. Edmonds also completed the these items and ask your customers if they want to give up University of Wisconsin training program for what you provide. Point out that these are things much of the technical trainers. He can be reached at competition does not provide. Identify that if you did not proken.edmonds@CKE-Enterprises.biz. vide them, you could be cheaper, but that is not the kind of

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Edmonds Apr 16.indd 2

3/31/16 9:46 AM

SELLING SOLUTIONS

Hire With Your Head It is tough, but to succeed, it is essential by: Troy Harrison, Troy Harrison & Associates

re you hiring with your head or your gut? When it comes to hiring salespeople, the majority of bad or mistaken hires are caused by hiring with the gut rather than the head. Why is this? To be honest, I am not sure. Some of it may come from a belief that hiring salespeople is a bit of a “black art.” Some of it simply comes from misconceptions about hiring for attributes that do not correlate to actual sales success. Let’s look at a few of those misconceptions and how they can ruin a hiring process: n Misconception One: “I hire athletes because they’re competitive.” This is one that I have heard a thousand times. I am not sure how this misconception became part of the sales hiring knowledge base, but it definitely has. The problem is that athletic prowess does not correlate to selling prowess. Selling is an activity of thought and persuasion. Athletics are a pursuit of physical prowess and feats. Yes, I know there is a mental aspect, too. However, if you are wondering about the correlation, let me put it this way: If a past football player can demonstrate that he (or she) was able to take the ball in his hand and, using his words and personality, persuade the other team to let him cross the goal line, then I will buy into the idea that there is correlation. I heard this one a few years ago from a recruiting client. He proudly said to me, “I want you to hire someone who has played team sports. They’re competitive. All my successes have come from hiring athletes.” Well, I did a little investigating and discovered that he exclusively hired athletes, which meant that all of his failures had also come from hiring athletes and his success ratio was 40 percent. So, I recruited a nerdy woman for him. She was very cerebral, a big Star Trek fan and played role-playing games on the weekends. It took her all of eight months to become his top salesperson. Why? Because she was so cerebral that she was quickly able to grasp what her customers needed, figure out the right products for them and persuade them to buy. That is sales. And, she changed his hiring patterns; he is far more successful now. n Misconception Two: “We need industry experience in our hires.” If there is anything that is a predictor of a failed hire, it is a search for “industry experience.” One of my clients used to have a very basic hiring system. If you walked into his

office and said that you worked for one of his two biggest competitors, you were hired — period. The result was that he had the worst sales force in the market because his two biggest competitors were taking care of their good salespeople. My client was getting the people they were happy to get rid of. The reason “industry experience” is so seductive is that it presents a shortcut. “Aha,” the hiring manager thinks, “I can bypass all the time I would otherwise spend teaching this salesperson my business and get right to the selling.” It is tempting. The trouble is that, normally, you are getting the people your competitor is glad to get rid of, which means that their potential (and yours) is limited. You are far better off getting people who have the potential (in terms of skills and traits) to be top performers in your industry and living with the short-term period of getting them up and running. n Misconception Three: “If they interview well, they’ll sell the same way.” This one is particularly seductive because it is so logical. An interview is a sales call, right? So, why wouldn’t we see a mirroring between someone’s behavior during an interview and during a sales call? Well, it has to do with mindset. More accurately, how someone behaves during an interview is the best-case scenario of how he will behave on a sales call. When you are trying to gauge how he will behave on a sales call, dial your expectations back about 10 to 20 percent. n Misconception Four: Hiring in your own image. This might be the worst and most dangerous of the misconceptions. We love to look for ourselves in our employees, protégés and applicants, and when we see those traits, we forget everything else. Full disclosure: I did this early in my sales management career. I interviewed a guy who looked so much like me it was like looking in a mirror — and it was one of the worst hires in the history of sales. Turning the Bad Into Worse Once we have committed one of the mistakes above, we almost always make it worse. We double down on the misconception and hang onto the person long after our head tells us that it is time to let him go. I kept the guy I referred to above for a year, even when I knew that it was not going to work. Why? Because I was emotionally involved. That is what defines hiring www.offi cetechnol ogymag. c om | Ap ri l 2016 | 29

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We fail because we seek to include first. with your gut. You get emotionally involved Through the first interview, be like the in the hire and cannot make the intellectuFirst, be the bouncer bouncer — and your clipboard is blank. al decision to cut bait. ... The bouncer has a Second, use a psychometric profile. The So, how can we keep ourselves safe from very simple philosophy. very best human judgment is still that — these misconceptions and move toward When someone walks human and fallible. If you really want to get hiring with our heads? Here are two quick up, he first seeks to to know your new candidate, use some sort techniques you can implement immediateof a psychometric profile to reveal his traits. ly that will improve your hiring. exclude — rather than A quality profile should include the ability First, be the bouncer. Have you ever include — the person. to match the success patterns of your job been to one of those velvet-rope nightto the traits of the employee. By doing this, clubs where they have a big guy wearing a suit and holding a clipboard who determines who gets in and you can again divorce “gut” hiring from “mental” hiring. Hiring with your head is not easy. It is tough. But to succeed who stays outside? The bouncer has a very simple philosophy. When someone walks up, he first seeks to exclude — rather in hiring, it is also essential. n Troy Harrison is the author of “Sell Like You Mean It!” and than include — the person. The bouncer has a general idea in “The Pocket Sales Manager.” He is a speaker, consultant and his head of which people he wants to let in — and he evaluates sales navigator who helps companies build more profitable and new additions to the line based on how they do not live up to that standard. If that is you — unless your name is on the clip- productive sales forces with his cutting-edge sales training and methodologies. For information on board — you will not get in. booking speaking/training engagements, So, to start, look for red flags — reasons to exclude applicants consulting or to sign up for Harrison’s weekly from the hiring process. Make a list of deal breakers that are ine-zine, call (913) 645-3603 or dicative of traits that will lead to failure in the job. Then make a email troy@troyharrison.com. list of questions designed to reveal those deal breakers — and Visit www.troyharrison.com. when you spot one, pay attention and exclude the candidate.

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