August 2014 Office Technology

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CONTENTS Volume 21 • No. 2

FEATURE ARTICLES 10

Managed IT Services Want to be your customers’ superhero?

P R I N C I PA L I S S U E S Customer Focused Konica Minolta outlines its ‘Blueprint for the Future’

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by Brent Hoskins Office Technology Magazine

by Brent Hoskins Office Technology Magazine

Today, a primary goal at Konica Minolta Business Solutions U.S.A. Inc. is to position the company as “an expert on the customer,” rather than simply an expert on products.

Rick Taylor, president and COO, highlighted the goal during an industry press event held July 9.

Here it is in a nutshell: The office technology dealership aligns itself with a third-party IT support provider that, for a monthly fee, remotely monitors the networks of the dealership’s customers via a network operations center (NOC), ensuring everything is running smoothly.

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Handling Objections Learn key steps to remove the anxiety

Employee Engagement Three strategies for building deep commitment

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by Joanne L. Smikle SmikleSpeaks.com

by Melissa D. Whitaker Melissa Whitaker International LLC

Much is written on strategies for building employee engagement. It is thought that engagement positively impacts the organization by retaining valuable employees, increasing productivity and creating loyalty. The root of employee engagement is commitment.

Do you feel anxiety coming on when you think of a customer throwing you an objection? This can be a challenging area, especially for newer sales reps. Fortunately, it does not have to be that way. An objection is a natural occurrence whenever someone is making a decision.

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The Business Checkup You may find it is time to make some changes

by Mike Lecak Collaborative Consultant Group

SELLING SOLUTIONS Compensating Sales Reps Guidelines for salary, commissions & bonuses

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by Troy Harrison SalesForce Solutions

Your yearly checkup allows you to gauge where you are and adjust based on the findings.

When is the last time your business “had a checkup?”

As we pass the halfway point of 2014, how are you doing? As you look at the first half of the year, are you where you thought you would be?

It is one of the most common questions that I am asked: “How should I pay my salespeople?” It is a complicated topic with many particulars that depend on your company and situation. That said, there are certain guidelines for developing a compensation strategy.

COURTS & CAPITOLS 24

Bring Your Own Device It is important to have a policy in place

by Robert C. Goldberg BTA General Counsel

There are several unique challenges that come with having a bring-your-own-device (BYOD) arrangement in the workplace. For this reason, it is important for dealers to have strong policies in place to effectively set expectations between themselves and their employees.

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

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• BTA Calendar • BTA Highlights

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Executive Director’s Page

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BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Curious How Others Rank Their Vendors?

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hank you for casting your ballot in this year’s BTA Channel’s Choice program. We received 356 completed ballots from independent BTA member and non-member dealers. The results of this balloting process, tabulated for BTA by Industry Analysts Inc., determined the winners of our 2014 BTA Channel’s Choice Awards.

Established in 1989, the Channel’s Choice program provides dealers with a means to recognize and honor those vendors that are the most supportive of the BTA Channel. To determine the 2014 award winners, dealers were asked to rate their primary and secondary line MFP vendors in key performance categories. In addition, dealers were asked to rank vendors in two other categories: Third-Party Leasing and Remanufactured Cartridges.

On May 15, during BTA’s Cruise to Success event in Chicago, 2013-14 BTA President Todd J. Fitzsimons announced and presented the 2014 BTA Channel’s Choice Awards.

Congratulations to our 2014 winners, who have distinguished themselves in the industry for their highly regarded dealer support.

Among MFP vendors, KYOCERA Document Solutions America Inc. is the winner of the 2014 Channel’s Choice Award for Superior Performance as a Primary Product Line Provider. In addition, KYOCERA received the Channel’s Choice Awards in the Inventory and Product Line performance categories. OKI Data Americas received the award for Outstanding Performance as a Secondary Product Line Provider. Toshiba America Business Solutions Inc. received the awards for the Corporate Support and Distribution performance categories. The other two Channel’s Choice Award winners:

GreatAmerica Financial Services in the category of Third-Party Leasing and MSE in the category of Remanufactured Cartridges.

BTA provides its members a detailed look at the results. Specifically, the 125-page 2014 BTA Channel’s Choice Report, prepared for BTA by Industry Analysts, provides a comprehensive view of the balloting process and an unparalleled look at how dealers rate their vendor partners. The report is especially helpful to any dealer who is considering adding or switching to another MFP brand. Knowing how other dealers view manufacturers is invaluable when seeking a new manufacturer to represent.

Here is a sampling of some of the information you will find in the 2014 BTA Channel’s Choice Report: n Among primary vendor providers, in terms of availability of sales training, two companies ranked above the industry mean: Kyocera and Toshiba. n Among secondary vendor providers, in terms of effectiveness of controller and supporting software, four companies ranked above the industry mean: Canon, Lexmark, Muratec and OKI Data. n Among third-party leasing companies, in terms of response time, two companies ranked above the industry mean: GreatAmerica and US Bank. n Among remanufactured cartridge companies, in terms of help and support, three companies ranked above the industry mean: LMI, MSE and Supplies Network.

If you are a BTA member, the report is available to you at no charge. Download your copy by visiting www.bta.org/Channels Choice. From the same page, you can also download copies of the reports from 2007 to 2013. Access to the reports is a member benefit. To download them, you will need your username and password. 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 Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, SalesForce Solutions www.troyharrison.com Mike Lecak, Collaborative Consultant Group www.collaborativeconsultantgroup.com Joanne L. Smikle, SmikleSpeaks.com www.smiklespeaks.com Melissa D. Whitaker, Melissa Whitaker International LLC www.melissawhitakerintl.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: Anna Bizon, DragonImages, IPGGutenbergUKLtd, mommayap, Pixsooz, tommasolizzul. Cover created by Bruce Quade, Brand X Studio. ©2014 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 2014-2015 Board of Directors

Join Us in Baltimore for BTA’s Grand Slam

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ave you left the past in the past?

Or are you still operating your dealership as if it was 1994 — or even 2004 — instead of 2014? Have you fully embraced the new opportunities that are best for your dealership? Do you know if you are headed in the right direction? Join BTA at Grand Slam, Sept. 15-16 in Baltimore, Md., to learn from industry leaders who will provide the insight, guidance and tools you need to help ensure your dealership remains your market’s premier resource for office technology and services.

Grand Slam, hosted by BTA East, begins at 12:30 p.m. on Monday, Sept. 15, with three-on-one dealer/vendor meetings.

These meetings will give dealers the opportunity to meet in small groups with exhibiting sponsors and earn up to $120 cash back ($30 for each meeting attended).

At 2:45 p.m., the event will kick off with welcoming comments and the keynote address, “Growing Dealer Revenue in the ‘Less-Print’ Era,” presented by Scott Maccabe, president and CEO of Toshiba America Business Solutions Inc. Following the keynote, the dealer panel “What is Your Diversification Strategy?” will be held. The panel will highlight three dealerships that have diversified their revenue streams to gain additional customer spend and increased market share. A welcoming reception will follow the dealer panel, giving attendees time to network with peers and the 25-plus exhibiting sponsors.

The second day of Grand Slam begins with breakfast on Tuesday, Sept. 16. Following breakfast, three vendor representatives will participate in a manufacturer panel, “Navigating a Changing Office Landscape.”

The panel will focus on what dealers should do to drive future success in a changing market, and will provide a manufacturer perspective on overall market direction, hardware and technology trends, and the future of the office equipment industry.

Following the manufacturer panel, five educational sessions will be held: “The Shifting Office Technology Industry,” with Robert Palmer, chief analyst, BPO Research, and managing partner, BPO Media; “3D — The New Wild West of Printing,” with Mark Mathews, president, Airwolf3D; “Benchmarked Sales & The Future of Selling Excellence,” with Steve Rolla, partner, Pros Elite Group; “Five New Ideas Using Technology to Secure Net New C-Level Meetings,” with Kate Kingston, founder and president, Kingston Training Group; and “Service Delivery Structure: What Works & Why?” with Ken Staubitz, national sales manager, BEI Services. During the day, lunch and breaks will give attendees time to visit with peers and exhibiting sponsors.

The event will wrap up on Tuesday evening with a Toronto Blue Jays versus Baltimore Orioles baseball game at Oriole Park at Camden Yards. Attendees will watch the game from the vantage point of a private suite in the stadium.

BTA dealer member registration for Grand Slam, including the baseball game, is only $199; member dealer registrants who sign up by Aug. 15 will receive a second employee registration at no charge.

Non-member registration with the baseball game ticket is $249.

Join us in Baltimore and hit a grand slam for your dealership. For additional information or to register, see the ad on pages 2 and 3 or visit www.bta.org/BTAEastEvent.

I look forward to seeing you there. n — Ron Hulett

President Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com President-Elect Dave Quint Advanced Systems Inc. 2945 Airport Blvd.

P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com Vice President Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA East Mike Boyle BASE Technologies Inc. 23 Francis Clarke Circle, Ste. 1B Bethel, CT 06801 mboyle@baseinc.com BTA Mid-America Dan Castaneda International Copy Machine Center 1515 Lee Trevino, Ste. EE El Paso, TX 79936 dan@icmc-elp.com BTA Southeast Gerry Purvis Purvis Business Machines Inc. 4505 Highway 39 N. Meridian, MS 39301 gerry.purvis@gopurvis.com BTA West Mike Ehlers Yost Business Systems 685 E. Anderson Idaho Falls, ID 83401 mike@yostonline.com Immediate Past President Todd J. Fitzsimons Automated Business Solutions DBA Network Imaging 122 Spring St., Ste. B3 Southington, CT 06489 tjfitzsimons@ni-ct.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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Managed IT Services Want to be your customers’ superhero? by: Brent Hoskins, Office Technology Magazine

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ere it is in a nutshell: The office technology dealership aligns itself with a third-party IT support provider that, for a monthly fee, remotely monitors the networks of the dealership’s customers via a network operations center (NOC), ensuring everything is running smoothly. In addition, the third-party company provides help-desk support when a customer needs to talk to someone on the phone about an IT-related problem. The third-party company and the dealership share in the revenue.

Sound good? There’s more. The thirdparty provider can handle nearly all of the IT-related problems the dealership’s customers may experience. “In 2013, we received about 11.5 million alerts and 86 percent of them were resolved by our NOC without intervention by our partners,” says Michael George, CEO of Continuum Managed IT Services LLC, which is working with a growing number of office technology dealerships to remotely monitor their customers’ networks. “Ninety-two percent of those alerts were resolved without our partners having to go on site at customer locations.”

Lindsay Dick, director of sales for Collabrance LLC, a subsidiary of GreatAmerica Financial Services, cites a similar percentage of IT-related issues handled by her company’s NOC for the customers of Collabrance dealer partners.

“Depending on whether they are on the technology stack recommended by Collabrance, it has been as high as 92 percent,” she says. “The more of the recommended technology stack the dealer sells into the customer’s environment, the more we can help them remotely, rather than getting the dealer involved, because we are subject-matter experts on those technologies.”

Technology stack? “That would be the hardware in the customer’s environment,” Dick says, noting that it is also important for Collabrance personnel to understand all software that is in the customer location. “We are pushing our

partners to standardize their approach.

If you are promising the customer, ‘We will take on the liability if anything goes wrong to resolve any IT issues at no additional cost,’ then in order to deliver high-quality service in a way that is profitable, you have to be an expert on all of the technology in the environment.”

Does revenue sharing on IT support where the third-party vendor does most of the work sound interesting? If so, there’s more. The dealer’s customer does not need to know that it is the thirdparty vendor that is providing its IT support services. “We answer our calls with ‘Help desk,’” says Marco LaVecchia, vice president of sales for AVG Technologies, regarding the company’s help desk, which provides IT support alongside its NOC to dealers’ customers. “We don’t want the customer to know that AVG is in the background.

We want to be an extension of the office technology dealer’s business. That allows us to deliver the service that dealers are seeking.”

The nature of the relationship between an office technology dealership and a company like AVG, Collabrance or Continuum is that the dealer gets the credit in customers’ eyes when IT-related problems are resolved. “We make them look like heroes,” George says. “In fact, we can make the dealer the ‘superhero’ because we have all of the technology, technicians, know-how and expertise to fortify a dealership’s sales force. And while it is a market model that is different from what dealership sales reps are accustomed to, it is far more common to the way they do business today than they ever imagined.”

How so? Because, George explains, selling IT support services to customers is not the high-technology sale that some may assume, noting that it is not only a selling process that is similar to what office technology sales reps are accustomed to, but it also gives them a competitive edge

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over the IT support industry’s seen have changed their historic leading sales channel core rep compensation “It really starts with the — managed services providplan to include managed business owner. He or she ers (MSPs). “You are selling to services quotas and inis the driving force — the business users,” he says. “The ofcentives,” she says. “The one who is saying, ‘We have fice technology dealership is far core rep compensation to make this transition, better configured and far better is critical.” follow the programs and equipped to deal with them beGeorge agrees. He cites cause it is not a technical discusthe response he someput all of the necessary sion; it is a business discussion.” times receives when askpieces in place to be successful.’”

George says Continuum proing a dealership principal — Marco LaVecchia vides the sales reps of its partto identify the person AVG Technologies nering dealerships with six busiresponsible for “checkness-oriented questions to help ing the quotas” for sales them qualify candidates for IT support services. “They are reps who are selling IT support. “Some have responded: ‘We such questions as, ‘Have you ever been in a situation where didn’t add additional quotas,’” he says. “Well, you have to you couldn’t access your customers’ records?’” he explains, add quotas. Dealerships are quota-oriented organizations. noting that the office technology dealership sales rep is com- Reps don’t sell things if they don’t have a quota and they pletely comfortable asking the question. “The sales rep says, don’t sell things if they are not getting a commission. That is ‘I can ask that question; I know about that.’ That’s all the central to what drives this whole industry.” business customer cares about; it’s not a technical discusBeyond having quotas and the right compensation plan, sion. The sales rep will talk about things like business con- there is another important characteristic of the dealership tinuity, security and compliance. Those are the things that that is ideally suited to sell managed IT support: commitment really matter, that the typical buyer understands, wants to from the top. “It really starts with the business owner,” LaVectalk about and will make buying decisions around.” chia says. “He or she is the driving force — the one who is sayThe “six questions for sales reps to ask,” provided by Con- ing, ‘We have to make this transition, follow the programs tinuum, is just one example of the type of guidance dealers and put all of the necessary pieces in place to be successful.’” can expect from third-party IT support providers. “We have Dick says the model that Collabrance has established rewhat we call our Enablement Program,” LaVecchia says. quires “commitment, focus and discipline” on the part of the “This program is focused on helping dealers develop the dealership owner and senior management. “We are trying to marketing strategies, pricing models, collateral and content help our partners and potential partners understand the difthey need to sell this to their customers. I want dealers to ference between ‘dipping their toes in the water’ and being be able to say, ‘I can go to AVG and get everything I need in successful in managed services,” she says. “They are two diforder to leverage the company’s services for my customers ferent approaches. So, instead of opening the door to just any and they are going to support me from a sales and market- dealer interested in partnering with Collabrance, we are realing standpoint so that I will be successful.’” ly focused on making sure they will be successful. We require While the third-party IT support provider will be taking them to make a pretty high level of commitment up front. We care of most of the IT-related work for the dealership’s cus- have said ‘no’ to more people than we have said ‘yes’ to who tomers, the partnering dealership does need to be prepared want to partner with us.” to take care of any IT issues that require an on-site customer Someone within the dealership has to “own” the IT supvisit. Says LaVecchia: “I recommend that office technology port business and “lose sleep over it” to get it done, says dealerships either hire their own technicians or establish a George, noting that the high level of commitment is necesrelationship with a local IT shop that can make the on-site sary because using a tools-only approach to providing highvisits.” Says Dick: “Dealerships definitely need technicians quality IT services is not as easy as some may have been led who can assist with the on-boarding process and also pro- to believe, despite the dealership guidance of and leading vide those ‘boots on the ground.’ We suggest that dealer- role played by the third-party IT support provider. “We don’t ships have certified technicians and subject-matter experts say, ‘This is really easy. Jump on in; the water is fine.’ We tell to work with core reps to close deals.” them this takes work. It is not difficult work, it is just work.

Dick emphasizes that it is particularly important that deal- If you are willing to work at it, you will be wildly successful.” erships compensate their sales reps to generate managed IT What sort of revenues can dealers expect? “We just showed support business. “The most successful dealerships we have one of our prospective customers that if we penetrated 12 | ­w w w. o f f ic et ec hno log y m a g.c om | Aug ust 2 0 1 4

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of their time and energy just 1.5 percent of his curto relationships that have rent base, which would “I realize that not all the highest level of impact be 39 customers, and sold dealers are going to sell on their businesses. When those customers a managed IT support services, but I think about that, there is services contract at $3,000 they need to at least ‘make no doubt that the IT servica month, he would have friends’ with an IT provider, es provider — the company an additional $1.4 million because that provider is controlling the network in annual revenues,” Dick going to be the more critical and data — is going to get says, noting that $3,000 per more attention than the month is typical for a 20-tovendor to the customer. ” MFP dealer. I realize that 25-user company. “So, we

— Lindsay Dick not all dealers are going helped him to see the big Collabrance LLC to sell IT support services, picture; that he could book but they need to at least this business and be really successful and profitable. However, again, it takes disci- ‘make friends’ with an IT provider, because that provider is going to be the more critipline and focus.”

Should you be looking at aligning your dealership with cal vendor to the customer.” n Brent Hoskins, executive director of the a third-party IT support provider? Dick shares a viewBusiness Technology Association, is editor point that dealers may want to consider. “One of the inof Office Technology magazine. He can be dustry experts we work with helped me see this in a new reached at brent@bta.org or (816) 303-4040. way,” she says. “He says customers devote the majority

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Handling Objections Learn key steps to remove the anxiety by: Melissa D. Whitaker, Melissa Whitaker International LLC

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o you feel anxiety coming on when you think of a customer throwing you an objection? This can be a challenging area, especially for newer sales reps. Fortunately, it does not have to be that way.

An objection is a natural occurrence whenever someone is making a decision. People resist buying out of fear of making a wrong choice and being blamed for a poor deal. We all have hopes, fears and apprehensions based on past experiences and doubts. A prospect may be reluctant to change an established and known vendor, or he (or she) just may not like to make decisions. Frequently, he is almost convinced he should buy and wishes the salesperson would help him make a decision. Do not disappoint him.

Do not interrupt the prospect and assume his objection.

If you assume the wrong objection, you may have just given him a second objection to be concerned about — which may possibly be more significant than his original objection. Also, prospects can give up to five false objections before the real one comes out. With that in mind, be aware of body language, i.e., crossed arms, cupped chins, index finger resting on the side of the nose, etc. Do not expect to eliminate all objections through preparation, but do expect to close more deals more quickly by planning for probable objections.

Acknowledge the Objection Often, a prospect will throw an objection on the table just to see what kind of reaction he gets. It is usually an outlandish reaction that may include panic, stuttering and sometimes even anger. If the intention of the buyer is to disarm you — mission accomplished. If, however, the objection is a sincere obstacle and you react with panic, you might lose the confidence your client has in you. Clearly, panicking does not support you in reaching your goal.

Look at an objection as feedback or a request for more information, like a pilot views the instruments in the cockpit.

The instruments let the pilot know how he is doing. If the instrument gives the pilot feedback that he is going the wrong way, would he try to convince the instruments that they are

wrong? Certainly not. Instead, the pilot acknowledges the information, interprets it, takes corrective action and looks for new feedback to let him know he is now on track.

Objections are valuable feedback that tell you how you are doing. Do not react. And, as mentioned, showing panic and talking too quickly may damage the confidence your client has in you. Instead, rely on the effective listening skills you have learned. Too often, a sales professional jumps in to overcome an objection, only to create a new one because he did not actively listen.

Before responding to any objection, see the concern through the prospect’s eyes and express empathy for his position. Nod or shake your head as you say something like: “I totally understand” or “I can appreciate that.”

Isolate the Objection Having acknowledged the objection, the next step is to make sure you are dealing with the true objection. Many

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concerns uncovered so you can resolve sales professionals try to solve all objecRemember, the objection each one and move on. There is no guartions the moment they hear them. You antee that a positive response means may have great answers to each objection, “belongs” to the there are no more objections; others but shooting back answers in a rapid-fire prospect. Include him may arise. However, you are more likely response to each item is not what is needin the solution process to target the right objection if you use ed here. Why is that? Because you have (co-create). After all, this isolation technique. not answered the real objection. he is likely to prefer There is nothing more frustrating than Clarify the Objection going through the process of handling an his own solution.

Now that the true objection is isolatobjection, only to find out that it was not ed, it is time to ask clarifying questions. the real one. How do you know what the real objection is? Set the objection aside. Take it away and Sometimes the objection is resolved in this step because the ask the client: “If that was not an issue, would you go ahead prospect thinks more about the objection and comes up with a solution, or decides that it is not really an issue at all. with this?”

If the answer is “yes,” you have discovered the real objec- Ask open-ended questions to get general information. For tion. Get all of the prospect’s issues on the table. You will example: “What do you mean by X?” or “Tell me more about X?” Ask closed-ended questions to clarify a point. save yourself time and aggravation.

If your prospect’s responses to these questions indicate you are the choice, you can move on to clarify and solve the Problem Solve At this point, the objections are out, have been acknowlissue. If not, continue to probe and re-isolate until you have the real objection(s). Your goal is to have all of the prospect’s edged, have been set aside or validated, and have been clarified. The only thing left to do is come up with a solution.

Remember, the objection “belongs” to the prospect. Include him in the solution process (co-create). After all, he is likely to prefer his own solution.

Below are five ways salespeople problem solve. Make sure you are working toward the fifth item, co-creating a solution with your prospect, instead of focusing on the other four: (1) Telling — Dictating the solution (2) Selling — Convincing the other party that this is the right solution (3) Testing — Trial and error (4) Consulting — Asking for feedback on a proposed solution (5) Co-Creating — Partnering to develop a solution Implementing these steps will build trust and confidence with your prospects. This will also reduce any unnecessary anxiety you may be feeling as a sales professional. Take one step at a time, remember to breathe and guide your prospects to increased results. n Melissa D. Whitaker is a sales and management expert, business consultant and published best-selling author who helps executives and their teams achieve alignment and drive profitable sales. After 17-plus years of proven sales and management results with leading organizations — Impact Networking, Toshiba America Business Solutions and Chicago Office Technology Group — Whitaker founded Melissa Whitaker International LLC. She can be reached at (847) 845-4922 or melissa@melissawhitakerintl.com.

Visit www.melissawhitakerintl.com.

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The Business Checkup You may find it is time to make some changes by: Mike Lecak, Collaborative Consultant Group

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f you are like most of us, your last visit to the doctor for a checkup was a chore. You felt fine and had too much to do. While it is difficult to find the time, your yearly checkup does allow you to gauge where you are and adjust based on the findings. It may not always be what you want to hear, but as they say, knowledge is power.

What about your business? When is the last time it “had a checkup?” When is the last time you really stepped back and looked at what you have built? As we pass the halfway point of 2014, how are you doing? Many of us start the year out with great anticipation of a fresh start.

This is the year you will get to really move to the “next level.” As you look at the first half of the year, are you where you thought you would be? More importantly, do you know where that is?

There are many ways to gauge this. You can look at hard numbers as a start. Pull out your business plan (I will assume you have one) and check yourself against your targets. Have you met or exceeded your metrics? If so, the important thing is to continue down that path and keep doing what is making you successful. If you are not, it is time to look back, be honest with yourself and adjust. Sometimes pushing the rock uphill does not make sense anymore and it is best to stop.

There are several areas that a business owner should look at when giving his (or her) business a checkup. Here are a few to highlight: n Leadership and leadership development n Management n Process n Sales structure n Recruiting As you look over the landscape of your business and measure your most important (and expensive) assets — your employees — have you developed leaders to take you to the next level? Many business owners simply do not have the time or the know-how to develop their leadership teams. We work “in” our business far too much and do not have the time to

work “on” our business. If this is something you have not had a chance to look at, chances are there is a significant skills gap that needs to be addressed. Short of cloning, this is the only way businesses can grow at an acceptable pace. You need to develop your next generation of leaders.

Do you have a formal leadership development plan in place? If not, why not?

Management has a great deal to do with the process. Processes that are sound and easy to follow will yield results. Effective managers can manage to a set of metrics and rules. They are transactional and will get the job done. Every organization needs good managers. I often see organizations promote their best salesperson to the role of manager. More times than not, this is an exercise in futility.

Great sales results do not always equate to great managerial skills. It is a totally different skill set, and let’s be honest here — they are your best salespeople because they do it their way; rules are for everyone else.

Leaders, on the other hand, drive results through people.

They can inspire others to do great things. Willing to take risks and live with the results, most leaders take ownership of the results while sharing the praise along the way. As effective leaders, they will not wait to be told it is time to change, but will recognize the need and react accordingly, without fear.

In these turbulent times, the danger is not in the turbulence, but to act with yesterday’s logic. We have all heard, and many of us have said, “We do it that way because we’ve always done it that way.” Are you developing forward-thinking, fearless leaders? They are your future. A strong leadership development initiative will help you identify skill gaps and prepare your next generation of organizational leaders to step in.

Another area to focus on developing is your recruiting process. Recruiting has always been one of those things where, when sales is hitting on all cylinders, seems to get the least amount of attention. However, when sales slump or we experience some unforeseen turnover, we circle the wagons and react. Most of the time, this desperation will

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yield less-than-desirable results and will as if he made the right decision to join Make sure you know be expensive. Turnover not only costs you. There is no magic to this, only efcompanies time and money, but imfort and attention to detail. You only get what you want out pacts both our customers as well as our one chance to make a first impression. of a certain role staff. The cultural impact of working for What is a good first step? Once you and then test your a “revolving-door” company is difficult have decided to take a look, there are candidates to match to overcome and the “rep du jour” leads primary areas to focus on. A good jumpskill and behavioral your customers and prospects to wonder, ing-off point would be a SWOT analysis.

“What’s going on over there?” Studies Get your executive team together for a traits to that role. show that over the next five years, turnday and really open up to each other. No over rates are expected to rise from 21 to holds barred. This requires open com25 percent. What is your defense for this trend? munication and no pride of ownership. The reason for the I submit that a sales manager’s recruiting funnel is as im- SWOT is to identify your strengths (do not spend too much portant, if not more important, than a sales rep’s sales fun- time here) and weaknesses, as well as the opportunities and nel. We need to constantly be recruiting to ensure that we threats ahead. This should be the basis for your strategic plan. are not caught off guard. We also need to develop a culture Once the SWOT is complete, you can begin to analyze your of success that is fueled by results. Results keep your reps staff. This analysis will allow you to look for opportunities to excited and financially whole. They also show the rest of improve performance, not get rid of anyone. Once you have adthe staff that expectations are high and your dealership is a dressed gaps between skill and performance, you will be able home of high achievers. Developing a process for recruiting to set forth a plan to assist every employee with the right focus. is of utmost importance today.

This can take place by instituting expanded training opportuAs Gen Y hits our front doors, we must remember one nities or, for your leadership team, a mentoring program. thing: They all received participation trophies. Their shelves As in any sales organization, compensation continues to be are lined with awards for 8th-place finishes. Recruiting and the driver. I suggest you take a hard look at your comp plans. retaining this new work force will take patience and skill, Do they drive the behavior you are looking for? Can you manand chances are they will still leave for a better opportunity. age the types of activities you need with your comp structure?

Studies show that more than 90 percent of Gen Y employees Are your reps and managers aligned (care about the same would leave their current employer for an employer with a things)? Is your comp plan competitive in your market? better reputation. Why fight this? Why not do your best to There are many things that come from a checkup, but one get and keep them, but also be prepared if the time comes thing is for sure: Sometimes you have to take your medicine. when they seek greener pastures?

For us, that usually means some type of change. Change is difAnother way to hedge your bet is to make sure the op- ficult; it is uncomfortable and takes time. We live in a “30-day portunity fits the person. There are many tools available to world” of quotas, commissions, vendor pressure, etc. The improperly profile candidates. I believe it is equally important portant thing to remember is change is a process, not an event. to profile the position. A role behavior analysis will allow you Remember, the external environment in which we operto outline the strengths and behavioral characteristics you ate constantly changes. We must respond in order to remain deem necessary to be successful. Make sure you know what competitive. Best of luck. n you want out of a certain role and then test your candidates Mike Lecak has been in the industry since 1983, to match skill and behavioral traits to that role. You will drastarting with ComDoc in Pittsburgh, Pa., then the largest matically increase your chances of hiring the right fit. independent dealership of both Ricoh and Lanier copier/ The age-old saying “actions speak louder than words” has MFPs in the East. After a successful 15-year career, never been more meaningful than when we onboard a new he joined Toshiba as a district sales manager. employee. Ask yourself these questions: Does someone own Later, Lecak joined Print Inc. in 2004 to manage sales for the the onboarding process? Does this process align with how company’s channel-focused PrintValue Solutions program. we sell ourselves during the interview? Does it represent In 2009, he joined Konica Minolta to your company culture? This is the “real” first date. Like it or manage its West region for managed print. not, this is how you will be judged. How are you doing? This Lecak currently serves as president of is an area most companies can improve on. I suggest you Collaborative Consultant Group. outline your process and include every department head.

He can be reached at Each should have a role in bringing on your newest employmlecak@collaborativeconsultantgroup.com. ee. It should be personal and should make the person feel Visit www.collaborativeconsultantgroup.com.

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COURTS & CAPITOLS

Bring Your Own Device It is important to have a policy in place by: Robert C. Goldberg, General Counsel for the Business Technology Association

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ecently, I was playing golf with a friend and his son when my friend became extremely angry with his son. Had he hit a bad shot, ignored golf etiquette or committed some other fairway infraction? No, he was texting on his cell phone. No matter where you are these days, it appears people are glued to their mobile devices. Many individuals also use these same personal devices in conjunction with their employment. Where does that place you as an employer?

An employee often connects his (or her) personal smartphone, tablet and/or laptop to his employer’s email system and other applications. This allows an individual to choose his own device and also saves the employer the cost of purchasing the device. There are, however, several unique challenges that come with having a bringyour-own-device (BYOD) arrangement in the workplace. For this reason, it is important for dealers to have strong policies in place to effectively set expectations between themselves and their employees.

The first issue to establish is who is going to pay for the employees’ devices. Some employers do not pay for personal devices, while others may pay a portion, or provide employees with a monthly amount toward the purchase of and charges for the device. A policy should address who is paying for the device and the monthly bill. If the employer pays for the device, there is no question that the employer owns the device.

But what is the ownership status in those situations where there is only partial payment? The employer should make it clear in the BYOD policy that any software utilized to access company material is the property of the dealership. This is also the case with any company information stored on the device.

Such provisions will permit the employer to access company information as needed. Partial payment does not establish ownership, but control of the company information on the device must be made clear.

Protecting company information is an employee responsibility regardless of who owns the device. Dealerships should insist that all devices be password protected and that passwords are changed at reasonable intervals. Dealerships should install encryption software on the devices and provide updates

as required. Employees should be obligated to immediately notify the employer if the device is lost or stolen.

Employees should be advised to frequently back up any personal information on the device so in the event it is lost or stolen, the device can be wiped clean remotely.

Employers should be cautious in contacting employees on their personal devices (or any device) during non-business hours. Frequent contact or requiring access can result in a claim for overtime compensation for non-exempt employees.

Another potential drawback inherent in any BYOD arrangement is that employees will have access to their personal content, including social media, while working. It is idealistic to believe that a dealership can prohibit access to social media during working hours. A better approach is to address social media expectations in the BYOD policy. A dealership can set time restrictions on access to social media, such as during breaks or lunch.

Limitations should be narrow, as the courts and the National Labor Relations Board have found that overly broad social media policies may infringe on an employee’s ability to engage in a protected activity or freedom to express himself. Dealerships should consider a separate social media policy to address what can and cannot be posted regarding the company.

Every employee who utilizes a personal device must agree to the company policy prior to connecting to the system. This can be done by written consent or by having the employee’s connection to the system signify consent. The policy should be discussed with staff by sharing the reasoning for such a policy, and the need to protect the company’s valuable information and systems. Sample BYOD and social media/networking policies have been posted on the BTA website in the Legal Documents section. These policies provide several options for a dealership to consider and the formats for a proper statement of policy. Of course, if you have any questions, the BTA Legal Hotline is available to all members. 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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EDUCATION CALENDAR September 10-11 BTA Strategic Sales Workshop Hartford, Conn.

From equipment to software, managed print services (MPS), managed network services (MNS) and everything in between, today’s dealership has more to offer clients than ever before. But how effective is the dealership in selling all of those things? Is there a perception that each opportunity has a different sales process — either by the solution type or by the rep? Today’s sales professionals not only need an updated sales approach to be successful today and into the future, but also a repeatable sales process that provides a consistent framework for all that they sell. This workshop is a sales transformation course focused on understanding, utilizing and implementing this sales process. This workshop, taught by Mitch Morgan and Chris Ryne of Growth Achievement Partners, provides a time-tested strategic sales process that works. Visit www.bta.org/StrategicSales to register.

10-11 ProFinance 2.0 Las Vegas, Nev. Over the last 12 years, the principles of ProFinance have dramatically improved the performance of hundreds of dealerships. But with the introduction of color, connectivity, software, MPS and MNS, the business has changed — and ProFinance has changed with it. Taught by John Hey and Todd Johnson of Strategic Business Associates, ProFinance 2.0 incorporates these changes into the new industry model, including benchmarks for MPS. With more than 30 key benchmarks, this management tool will help you and your team achieve double-digit operating income. Visit www. bta.org/ProFinance to register.

15-16 BTA’s Grand Slam District Event - Hosted by BTA East Baltimore, Md. Have you left the past in the past? Or, in some ways, are you still operating your dealership as if it was 1994 — or even 2004 — instead of 2014? Have you fully embraced the new opportunities that are best for your dealership? Have you positioned your sales, service and marketing efforts to ensure your ongoing success? Are you headed in the right direction? 2014’s Grand Slam, open to dealers from across the country, is all about learning from recognized industry leaders who will provide the insight, guidance and tools you need to help ensure your dealership remains your market’s premier resource for office technology and services. The event will feature a keynote by Scott Maccabe, president and CEO of Toshiba America Business Solutions Inc. (TABS), a dealer panel, a manufacturer panel, five additional educational sessions and a trip to Oriole Park at Camden Yards to see the Toronto Blue Jays take on the Baltimore Orioles. Visit www.bta.org/BTAEastEvent to register.

For more information, visit www.bta.org/Education or call (800) 843-5059.

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

Dealer Members M-C Business Solutions, Chatham, Ontario, Canada National Office Products & Printing Inc., Sault Ste Marie, MI Superior Business Equipment Co., Great Falls, MT Vendor Associate Members Epson America Inc., Long Beach, CA IT Solution Alliance, Baltimore, MD KIP America, Novi, MI For full contact information of these new members, visit www.bta.org.

The Business Technology Association’s (BTA) annual Channel’s Choice Report is now available for download on the BTA website.

Free to BTA members, the 125-page report offers a detailed look at the results of the BTA Channel’s Choice balloting process and provides comparisons of how dealers rate the performance and support of each of the industry’s leading hardware vendors, as well as remanufactured cartridge vendors and third-party leasing companies.

Previous years’ reports are also available for download on the BTA website. You will need your member username and password to access and download the reports.

For more information, visit www.bta.org/ChannelsChoice.

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 Print Audit, established in 1999 and headquartered in Calgary, Alberta, Canada, develops print tracking and auditing software that enables organizations to analyze, reduce and recover their printing volumes and costs. Print Audit not only helps members remotely manage their printer fleets, but it has also developed a variety of tools that enable organizations to monitor and control user printing behavior.

The company has achieved an average of 362 percent annual growth over the past 10 years and has 1.5 million installations worldwide. www.printaudit.com

BTA Service Associate member ACDI has been serving its dealers since 1994. The company’s flagship product, PaperCut, is print management software that has helped more than 50,000 organizations in 100 countries reduce their print costs and their environmental impact. PaperCut MF extends the print, capture, billing and charge capabilities of PaperCut, enabling organizations of any size to manage all copying and printing produced across their entire fleets using a single low-cost software application. ACDI also offers hardware, professional support services and on-site training to the dealer channel. www.acd-inc.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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PRINCIPAL ISSUES

Customer Focused Konica Minolta outlines its ‘Blueprint for the Future’ by: Brent Hoskins, Office Technology Magazine

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oday, a primary goal at Konica Minolta Business Solutions U.S.A. Inc. (Konica Minolta) is to position the company as “an expert on the customer,” rather than simply an expert on products. Rick Taylor, president and COO of Konica Minolta, highlighted the goal as he provided a closer look at the company’s current transformation during an industry press event held July 9 at Rick Taylor the Konica Minolta Business Regional Customer Engagement Center in New York City.

While the event also focused on the announcement of the company’s bizhub PRESS C1100 and C1085 color digital presses, Taylor took the opportunity to share the company’s “blueprint for the future.” He illustrated the changing focus of the company by reading aloud Konica Minolta’s Vision Statement: “To be acknowledged by our customers as a leader, utilizing innovative technology, quality services and unique solutions to add unmatched value to the global society, always focused on protecting the environment for a prosperous future generation.”

Taylor emphasized that while the Vision Statement does include words like “leader,” “innovative,” “services” and “solutions,” the word “hardware” is not included. “So, the transformation of our company from a pure hardware provider with break/fix resources has been happening for a long time,” he explained. “We are far along in that journey, which has served us very well in terms of our growth in the market. What is our business situation? We are trying to change the DNA of our company from a hardware provider to a provider of linked services, solutions and hardware that can bring unmatched value to our customers.”

A primary component in that unmatched value, Taylor said, is providing applications and services that address the unique needs of customers in vertical markets. Although Konica Minolta has a “lot of salespeople in the field — direct and dealers — who are really good hardware people,” he said, today the focus must change. “We are transforming our business to be a much more services-oriented company that is an expert on the customer and not just the product. The product is a small cog in a big wheel that we are trying to deliver to our customers.”

Taylor added that the value to Konica Minolta’s growing

emphasis on being “an expert on the customer” is already apparent. “We track our gross margin where we have expertise,” he said of the vertical markets currently pursued by the company. “We get more gross margin on the benefits that we bring to our customers when we are vertically aligned and have expertise in those areas.”

Taylor pointed to other companies that are setting the standard for the type of customer relationships that Konica Minolta is striving to achieve. Citing the examples of Starbucks and Apple, though not known for inexpensive products, “they are earning the right to extract the appropriate value from their customers, based upon the experience of those customers,” he said. “Long-term, it is not about doing [customer] surveys; it is about mapping the customer journey, looking at every touch point of that customer along the way and making a much more ‘consumer-like’ relationship with that customer.”

As Konica Minolta continues its transformation, Taylor said the strides will take place within what he described as the three “pillars” that will define the company’s brand in the future. The first pillar, he said, is information management. “We have been managing documents for a long time, but printed documents were the focus,” he explained. “Today, we don’t care what form that document exists in — we want to manage workflow, the ability to collaborate on documents, creation of the document, etc. That’s the business of information management.”

The second pillar of Konica Minolta’s brand is IT services, Taylor said. “I think this capability, especially with mobility today, really speaks to what our future is,” he said. “We have 85 people just in the IT department at Konica Minolta in the U.S. and a 1,000-plus more IT professionals at All Covered.

That’s a lot of people. Companies that have both on-site engineering and especially remote capabilities like we have, including our world-class cloud services [through All Covered], will have the edge in the future.”

The third and final pillar of Konica Minolta’s brand — technology — means that “we are not abandoning hardware,” Taylor said. “So, MFP technology, server technology and other types of hardware that we might bring are an important part of the equation to the customer.” 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 | Au g u s t 2014 | 27

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PRINCIPAL ISSUES

Employee Engagement Three strategies for building deep commitment by: Joanne L. Smikle, SmikleSpeaks.com

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uch is written on strategies for building employee engagement. It is thought that engagement positively impacts the organization by retaining valuable employees, increasing productivity and creating loyalty.

Engaged employees typically feel that their work has significance in the larger organization and that the organization is a worthwhile employer.

The root of employee engagement is commitment. This article explores three strategies for building deep commitment that will invariably lead to a highly engaged workforce. Whether your company is a small dealership or a very large one, the strategies presented will help you refine your approach to managing your valuable human resources.

Commitment is a stabilizing force in the dealership. It not only ties people to you, as the employer, but to the work of the industry. Committed employees have a mindset that makes them genuinely want to obligate themselves to an employer.

This desire supersedes their economic need to be employed. It is a desire to be part of something that has meaning and value.

Three Strategies for Building Commitment There are three strategies that leaders can use to build high levels of commitment. The first is to create meaning in the work. Some jobs in the office technology industry may become routine after a few years of tenure. It is up to you to find ways to create meaning in the work done by your employees.

This will require you to have conversations with people about why their work matters, how their individual contributions add to the success of the dealership and the value they, as individuals, bring. These conversations need to be sincere.

It also helps if you have a system for celebrating successes.

Successes can be more than financial — they can be whatever is most important to your team. Celebrations do not need to be large, formal affairs. Small, sincere gestures will go further in touching the hearts and minds of your employees.

The second strategy for cultivating an environment where high levels of commitment are the norm is to create a culture.

Some cultures evolve, others are intentionally created. Taking the lead on creating a culture reflective of the mission, vision and core values of the organization requires thoughtful, comprehensive effort. Not only will you have to analyze current services and systems, but you will also have to deconstruct

policies and procedures to be sure they are in alignment with the culture you seek to create.

For example, an organization that touts a coaching culture but uses only annual performance reviews for performance management does not really support coaching. Coaching is a critical piece of the performance management system. It should be integrated into human resource policies so managers know it is an expected requirement. This expectation should be supported by education that teaches managers and supervisors coaching best practices. Culture creation requires a fearless analysis of what you say, what you actually do and the incongruities between the two.

The third strategy requires attention to the environment.

Leaders are responsible for creating a motivating environment. Not to be confused with cheerleader camp, a motivating environment pays attention to what noted psychologist and business management expert Fredrick Herzberg refers to as an employee’s need for psychological growth. This type of environment pays attention to the factors that provide intrinsic motivation. Those factors include: achievement, recognition, responsibility, growth and advancement. A motivating environment has career ladders, opportunities for employees to develop new skills and allows employees to own their work without micromanagement. A motivating environment encourages employees to try new activities, explore aspects of the business outside of their assigned duties and contribute to the larger industry. All of these efforts combined are a vote of confidence in employees and their abilities.

In Summary Engaged employees are committed employees. They highly regard their work and their employers. This attachment is not accidental. It happens when employers make the conscious effort to add meaning to the work, build a strong culture and tend to the motivational needs of employees. n Joanne L. Smikle is an author, consultant and speaker specializing in leadership development, collaboration and customer satisfaction.

She serves leading corporations and associations. She can be reached at (301) 596-3140 or joanne@smiklespeaks.com.

Visit www.smiklespeaks.com.

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PRINCIPAL ISSUES

Compensating Sales Reps Guidelines for salary, commissions & bonuses by: Troy Harrison, SalesForce Solutions

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t is one of the most common questions that I am asked: “Troy, how should I pay my salespeople?” Most of the time, I demur, because paying salespeople is a complicated topic with many particulars that depend on your company and situation. That said, there are certain guidelines for developing a competitive and fair compensation strategy.

First of all, understand this: Straight commission is dead as a sales compensation policy. There are numerous reasons for this, and maybe one day I will write an entire article to deal with them, but for now, it is enough to say that a straight commission pay plan will not allow you to compete effectively for sales talent. That leads to a discussion of the objectives in developing a quality sales compensation plan.

First, we want to compete effectively for the right sales talent. Make no mistake — hiring is competitive. We want salespeople who are good enough to be able to choose where to work, rather than having to “settle” for your job. Second, we want to reward sales achievement appropriately. Good compensation policies incent and reward sales achievement.

Finally, we want to generate a fair and acceptable profit for the company. Sales compensation is a balancing act; while we want to incent and reward achievement, as noted above, we also need to leave enough meat on the bone for the company P&L; after all, we are in business to make profit.

Let’s start with this as a guideline: The total sales compensation paid to a sales rep at quota should be somewhere between 25 and 40 percent of the total gross profit generated by that salesperson’s efforts. That leaves a lot of leeway, but typically, the more commission-slanted the compensation, the closer to 40 percent the overall comp should be. Again, there are many variables here, but I have found that this range allows you to achieve all three of the above goals.

A good compensation plan should have three components: A salary, a commission component and a bonus for high achievement. The salary component is probably more important than you think. Most business owners I have encountered want to believe there is a large pool of applicants sitting out there, just waiting to go to work in an environment where there is “huge potential” for big earnings, but a pittance for a salary. Sorry to tell you, it is just not that way anymore. Today’s

skilled sales rep understands that he (or she) is a valuable commodity and looks for a company that will invest in his success; he views his salary as a big part of that investment.

At its lowest, the salary should cover the basic necessities and cost of living, i.e., the salary should be sufficient enough that the salesperson should not have to worry about paying his rent, keeping the utilities on and putting food on the table. That is the basic level.

In my home market of Kansas City, Mo., a salary should be at least $30,000 per year; adjust from there to cover the difference in cost of living to your market.

It is important to understand that your salary “buys” you admission to different applicant pools, depending on your needs. Do you need your applicant to have a degree? That will cost extra. Need a specialized degree (such as engineering)?

Extra. An especially successful track record? Extra. You get the idea. Research what companies in your area are paying by looking at job boards (like CareerBuilder and Monster) and create your salary accordingly.

Now it is time to figure commission, which, of course, is the percentage of the sale that varies depending on the salesperson’s achievement. Commission percentages vary widely, but you can begin by figuring out an overall commission amount at quota (the difference between your overall compensation at quota and the salary that you have elected to pay). Now, figure your commission percentage by finding the gross profit generated at quota and dividing the overall commission amount by the gross profit generated.

Notice that I did not reference paying on overall revenue, but on gross profit. That is because you should always pay on gross profit generated, not on overall revenue. That gives your salesperson a stake in your profitability and will result in generating stronger profits.

Finally, the best compensation plans include a bonus. A bonus, as the word implies, is extra pay that is earned by overachievement. I would recommend not paying a bonus until the salesperson has achieved at least 10 percent over quota for the year. Your bonus should be at least 10 percent of the salesperson’s annual earnings in order to be large enough to get the salesperson’s attention, but probably not more than 20 www.offi cetechnol ogymag. c om | Au g u s t 2014 | 29

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the existing commission for high levels of percent of annual earnings so as to keep sales can be a real incentive to reach high the company’s profit intact. ... The best compensation sales levels. Keep the 25 to 40 percent rule There are, of course, other components packages are simple in mind here. that you can include, but I prefer to keep enough that the Fade-aways: This is where the salary compensation packages simple. Complicasalesperson can fades away to a smaller amount over time. tion breeds distrust; the best compensation calculate his commission Do this and you have lost most of the benepackages are simple enough that the salesfit you were trying to achieve through payperson can calculate his commission when when he wins a piece ing a salary; the salesperson will perceive he wins a piece of business. Some additionof business. the job as a straight commission job — and al components and my thoughts on them: not apply.

Draw against commission: I am only Paying your salespeople really does not have to be that difin favor of a draw as a short-term measure designed to help a new salesperson ramp up (and even then, the draw amount ficult or that onerous a task. Just keep the guidelines above in should be small). A draw is not a substitute for a salary. Draws mind, and any company can develop a compensation policy can work against you; a salesperson can dig a “hole” through that is fair to the company and fair to the salesperson. n Troy Harrison is the author of “Sell Like You Mean It!” a draw, perceive that he cannot get out of it and you can lose a and a speaker, consultant and sales navigator. salesperson who might have been very successful.

He helps companies build more profitable and productive Guarantee against commission: Again, I am only in favor sales forces with his cutting-edge sales training of these as a short-term measure for ramping up. The differand methodologies. For information on ence between a guarantee and a draw is that the guarantee is booking speaking/training engagements, non-recoverable, i.e., you are not going to charge the guaranconsulting or to sign up for his weekly e-zine, tee amount back. call (913) 645-3603 or email Commission caps: I hate them. Period. troy@troyharrison.com.

Commission “kickers” or accelerators: Here is one that Visit www.troyharrison.com.

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