December 2007 Office Technology by Business Technology Association

01OT1207

11/30/07

5:43 PM

Page 1

ITEX ad LHP

11/9/07

2:44 PM

Page 1

ITEX ad RHP

11/9/07

2:07 PM

Page 1

BUILD SOME SALES MUSCLE... Exercise proven strategies that improve your bottom line!

Strengthen Your Business Model at

INFORMATION TECHNOLOGY EDUCATION & EXPOSITION

Partner Sponsor

www.okiprintingsolutions.com

nly $99 (seminars included) — $199 Onsite

February 21-22, 2008 • North Hall 4 • Las Vegas Convention Center

SHOW FLOOR OPEN February 21-22, 2008

Presented By

POWER HOURS SEMINARS February 21-22, 2008

$79

BTA MEMBER DISCOUNT

CODE: G48BTA

04OT1207

12/1/07

10:23 AM

Page 4

CONTENTS Volume 14 No. 6

FEATURE ARTICLES 10

2008 Industry Forecast Manufacturers look to the road ahead

COURTS & CAPITOLS Are You a Workaholic? Prevent chaining employees (& yourself) to work

Compiled by Brent Hoskins Office Technology Magazine

by Robert C. Goldberg BTA General Counsel

The new year is right around the corner. It is certain to be a year that provides BTA Channel dealers many opportunities. What are the greatest among these opportunities? What should be the dealer’s primary areas of focus in 2008? Office Technology magazine asked representatives of 11 of the industry’s manufacturers to share their expectations for 2008. Each was asked to address several questions. Perhaps the insight shared in their responses will help you better position your dealership for success down the road in the year ahead.

December is always a good time of the year to reflect upon the accomplishments of the past eleven months. Although the New Year’s resolutions are long forgotten, we do know how we fared with family, work, social and civic responsibilities as well as overall satisfaction with life.

SELLING SOLUTIONS Managing Complex Sales A five-step plan for the big-ticket deals

by Tom Kramer Strategy Mapping Selling

The competitive battle for success in major account selling is won by those who can create a competitive advantage for their customers. Closing major sales, however, is an art that requires exceptional skills combined with a solid process or plan for success.

‘Day of Disruption’ InfoTrends hosts third annual ODT Forum by Brent Hoskins Office Technology Magazine

Focused on addressing the opportunities resulting from the significant recent changes in the office technology industry, market research firm InfoTrends hosted its third annual Office Document Technology Forum Nov. 7-8 in Quincy, Mass. The event, themed “Day of Disruption,” drew approximately 110 attendees.

PRINCIPAL ISSUES The Labor Shortage A smart manager’s guide to keeping good people

by Joanne Smikle Smikle Training Services Inc.

Even if you did not believe the doomsayers of the past few years, if you have positions to fill, you know that there was truth in their predictions. A 2004 study concluded that the labor shortage in the United States could reach 18.1 million workers in 2020.

BTA Southeast’s ‘Fall Colors’ District hosts education & networking conference by Brent Hoskins Office Technology Magazine

Continuing with its longstanding tradition of bringing dealers together for learning and networking opportunities, the BTA Southeast district’s annual “Fall Colors Conference” was held Oct. 26-27 at the Waynesville Country Club Inn in Waynesville, N.C. The event drew 75 attendees representing approximately 25 dealerships. 4 | www.of ficetechnologymag.com | December 2007

DEPARTMENTS 6

Executive Director’s Page

BTA President’s Message

Advertiser Index

Print Audit ad Dec 07

11/15/07

9:07 AM

Page 1

06OT1207

12/1/07

10:38 AM

Page 6

EXECUTIVE DIRECTOR’S PAGE

2008 Forecast Offers Insight & Guidance n thi s i ssu e, 11 manufacturers take a look at the road ahead in the 2008 Industry Forecast. The intent of this annual feature is to provide readers with insight and guidance direct from manufacturers regarding the expected opportunities and market trends in the coming year. The forecasts provide plenty of interesting comments to help us prepare for the new year. It is my hope that they give you some things to think about that can ultimately help you grow your dealership. I’ve read through these forecasts several times. In my most recent review I highlighted certain items as if reading them from the dealer’s perspective. Following are a few of the things I noticed that I may want to think about for “my dealership.” Canon U.S.A. — I welcome the reminder of billable professional services. Tod Pike lists data capture and conversion, security services, document production analysis and document workflow analysis. I should be charging for these and not giving them away. Hewlett-Packard — It is interesting to learn that 268 billion color office pages were printed worldwide in 2005 and the number is expected to grow to 489 billion in 2010. I need to get my fair share of those 489 billion pages. Konica Minolta — I like this idea of working to transition some of the pages currently produced on commercial printing presses to my MFPs. As Kevin Kern suggests, any of these pages I claim will be new to my dealership. Lexmark — The total percentage of all pap er -handling in th e Unit ed Stat es

6 | www.of ficetechnologymag.com | December 2007

involving 11-by-17 inch paper is only about 4 percent? Now that I think about it that sounds about right. The statistic makes a good case for A4 MFPs. Muratec — I often hear about the typical customer pain points. Jim D’Emidio’s list includes some of these, such as document workflow and security. But he also lists some others, such as the adoption of VoIP and ediscovery. Perhaps I should better understand these pain points. OKI Data — This says, “Dealers can capitalize on the workflow and document management trend by incorporating DMS systems, such as MicrosoftSharePoint, into customers’ IT systems to better manage and service their printers.” We need to give that some more thought. Ricoh — Ricoh’s forecast says it will be introducing several vertically-focused solutions in 2008 for various markets. Ron Potesky says each vertical industry has its own specific document management needs. That makes sense. Sharp — There is a strong emphasis here on customization, with references to Sharp OSA. I know some of the other manufacturers have development platforms as well. This could positively change the nature of the sales process. Toshiba — Here’s another reference to A4 products and the customers’ increased recognition that the bulk of their copying and printing needs use letter and legal, not ledger size. In 2008, I need to pay attention to the trends in A4 and not get left behind. Your list of “things to think about” will be different than mine. In any case, I hope the 2008 Industry Forecast serves as a valuable resource as you look to the road ahead. — 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 Tom Kramer, Strategy Mapping Selling www.strategymappingselling.com www.smsap.com Joanne Smikle, Smikle Training Services Inc. www.smiklespeaks.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 Accounting Clerk mary@bta.org ©2007 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.

Toshiba ad Dec 07

11/9/07

12:07 PM

Page 1

EIGHT WINS I S N ’ T T H AT T H E K I N D O F T E A M Y O U ’ D L I K E TO B E O N ? The people have spoken. And for the 8th time, Toshiba was voted #1 for Overall Performance by the BTA. Maybe it’s because Toshiba offers more than just great copiers. We offer value-added solutions that make businesses more productive and profitable. If you’d like to learn more about what’s made Toshiba America’s fastest growing copier company or become part of our winning team, visit www.copiers.toshiba.com or call 949-462-6165.

08OT1207

12/1/07

10:47 AM

Page 8

BTA PRESIDENT’S MESSAGE ®

BTA Launching Sales Education Programs ducating dealers and th eir employees has always been the cornerstone of the Business Technology Association (BTA). Through the years, thousands of dealers have attended the association’s education courses. In each case, the goal was to help the dealer boost the bottom line. In 2007, the association launched two new education programs — ProSolutions, taught by Darrell Amy, president of Dealer Marketing Systems Inc. (www.dealermarketingsystems.com) and the BTA Print Management Workshop, taught by Tom Callinan, president of Strategy Development (www.strategydevelopment.com). They joined our existing educational offerings: ProFinance and FIX: Cost Management for Service. All four of these courses have been well received by BTA members. I’m pleased to announce that in early 2008, BTA will be launching two new education programs, focusing on sales and sales management. In January, BTA will begin offering Plugged-In, a series of sales team webinars presented by Strategy Mapping Selling (www.strategymappingselling.com). Participants will have the opportunity to take part in nine webinars. These will include such topics as creating customer value, relationship selling and selling to key accounts. The Plugged-In instructors both have many years of sal e s exp eri ence. Tim McMahon, founder and CEO of Strategy Mapping Selling, has held senior positions in sales and management with IBM, Digital Equipment and Dun & Bradstreet. Tom Kramer is an affiliate partner with the con-

8 | www.of ficetechnologymag.com | December 2007

sultancy and has more than 30 years of sales and sales management and marketing experience with IBM, Eastman Kodak Company and Canon U.S.A. Inc. Then, in February, BTA will launch a new two-day classroom course, the “BTA Sales Management Workshop,” taught by Tom Callinan. The new workshop will provide dealer principals and sales managers at all levels a framework and tools that will help them further develop their sales employees and drive new business. The workshop will cover, in depth, such areas as: recruiting and selection; individual development plans; account planning; quality field time; and how to build a proposal that sells. Tom has been in the industry for more than 20 years. In 1987, he founded Copifax Inc., eventually selling the company to IKON. Initially, he was president of IKON’s New York City marketplace, w here he increased revenues from $47 million to $60 million over a three-year period. Ultimately, he served as general manager for the east region where he was responsible for 1,300 sales executives and more than 200 sales managers with a $600 million equipment sales budget. You can register and find more information on the Plugged-In webinars on the BTA Web site, www.bta.org. Click on “Education & Certification” on the left side of the home page. As I write this, the date and location for the inaugural BTA Sales Management Workshop have not been finalized. Watch for details on the BTA Web site. I encourage you to take part in these and the other BTA education programs in the new year. I hope 2008 proves to be a prosperous and rewarding year for your dealership. — Shannon Oliver

2007-2008 Board of Directors President Shannon Oliver 25 Wheaton Circle Greensboro, NC 27406 shannon@bta.org President-Elect Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle Ste. E Irvine, CA 92614 ronellei@msn.com Vice President Bill James WJS Enterprises Inc. 3315 Ridgelake Drive P.O. Box 6620 Metairie, LA 70009 bjames@wjsenterprises.com BTA East Thomas Chin Accolade Technologies LLC 31 Mamaroneck Ave. Ste. 508 White Plains, NY 10601 tchin@accotech.com BTA Mid-America Mike Blake Corporate Business Systems LLC 2018 S. Stoughton Road Madison, WI 53716 mblake@corpbussystems.com BTA Southeast Jerry Jackson All South Copiers (ASC) 1325 Cobb International Blvd. Ste. A Kennesaw, GA 30152 jerry@ascopiers.com BTA West Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. P.O. Box 1170 San Bernardino, CA 92408 rjanecek@burtronics.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkle Newman & Rosenberg Ltd. 222 S. Riverside Plaza Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

Kodak ad Dec 07

11/9/07

12:00 PM

Page 1

Think of it as the “CHA-CHING” button. Give your customers improved productivity in capturing and managing document information with the Kodak Scan Station 100 with AutoStore. It’s your new money-making opportunity. Visit www.kodak.com/go/ChaChingOTM for more details or to have someone call you.

Kodak ScanStation 100 with NSi Autostore ©Kodak, 2007. Kodak is a trademark of Kodak. AutoStore is a trademark of Notable Solutions, Inc.

10OT1207

12/1/07

10:52 AM

Page 10

2008 Industry Forecast Manufacturers look to the road ahead Compiled by: Brent Hoskins, Office Technology Magazine

he new year is right around the corner. It is certain to be a year that provides BTA Channel dealers many opportunities. What are the greatest among these opportunities? What should be the dealer’s primary areas of focus in 2008? Office Technology magazine asked representatives of 11 of the industry’s manufacturers to share their expectations for 2008. Each was asked to address several questions. Among them: What do you believe will be the greatest market and product opportunities for dealers in the new year? What notable changes in demands/needs/expectations do you anticipate from end-users? Why is it important that dealerships transition to a solutions focus? What do you see as the characteristics of the office technology dealership that is best positioned for success in 2008? Perhaps the insight shared in the responses to these and other questions will help you better position your dealership for success down the road in the year ahead.

Canon U.S.A. Inc. Tod Pike, Senior Vice President & General Manager Imaging Systems Group We see great market opportunities for dealers in 2008. There are several opportunities in the market that we feel dealers can leverage in the new year to grow and be more profitable. These include: the continued conversion to and adoption of color from the small/medium business up to the enterprise and into the commercial print market; the transition to digital print as a cost-effective alternative to offset print; and, finally, the need for integrated document solutions and services surrounding those hardware offerings. As 10 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

a company, Canon is well-positioned to help dealers capitalize on all of these opportunities as well as others that will most certainly emerge in the new year. It is important that dealers continue the transition from the straight “box” seller of the past to delivering solutions that integrate well into the customer’s environment during 2008. The BTA dealers with their local experience and direct access to the customer’s key decision makers are well-positioned to help customers assess their document needs and deploy total digital workflow solutions. These dealers can help incorporate either Canon or third-party branded solutions as well as a customized MEAP application into the customer’s digital workflow and have a positive effect on the customer’s bottom line. Also, surrounding these solution offerings is a host of professional services that dealers can tap into to help customers extract greater value from their office equipment

Print Audit May 07

4/18/07

2:15 PM

Page 1

12OT1207

12/1/07

11:02 AM

Page 1

There are many opportunities for and software technology investments. ... We provide the BTA dealers to remain profitable and grow These services include data capture during the year. With our comprehensive and conversion, security services, docdealers with the tools line of hardware and software offerings ument production analysis and docuto help deliver the and solutions, Canon is ready to help ment workflow analysis. most appropriate dealers make the most of well-established Through our dealer meetings, innosolutions and market segments and venture into new vative service and sales training and professional services revenue markets, such as large-format marketing collateral, such as white for their customers. and production printing, in 2008. papers, we provide the BTA dealers with the tools to help deliver the most Hewlett-Packard appropriate solutions and professional services for their Bill Avey, Director of the U.S. customers. Canon is also dedicated to supporting the BTA Multifunction Printing (MFP) Business dealers with a highly skilled, technical/solution-oriented Capturing more pages is the focus dealer sales team that is dedicated to driving added value for HP in 2008. The copier and printer for both the dealer and customer. markets will continue to converge, From the office desktop to production and large-format and the growth of color devices and printing, Canon has a complete line of color offerings that MFPs will continue to explode. This will serve BTA dealers and their customers well next year. will lead to a continuing increase in In addition to our color imageRUNNER line, we have really established our color presence and enhanced our printed pages and a continued decrease in copier pages. In offerings and services in the areas of production and large- the new year, independent dealers will be able to grow their format printing in 2007. We expect our work in these two business by identifying where and how their end-user cusareas will help uncover new market opportunities that we tomers are printing pages. End-user customers now get the concept of the printerexpect will drive dealer profits and growth for years to come. Currently, we have nine imagePROGRAF models that based MFP. HP’s printer-based MFPs will help us provide address a number of market segments such as CAD/CAM, products that deliver the functionality customers really photography and graphic arts. This is compared to 2005 when need. Examples from HP include an industry-leading, radically simple and intuitive control panel and a robust set of Canon’s large-format line consisted of only three models. On the production side, Canon began shipping our much- market-leading solutions for document capture, job talked-about imagePRESS C7000VP digital press earlier this accounting, security and management. In addition, HP’s year. Customer demand for imagePRESS is high and we expect patented Edgeline technology redefines business printing that to continue in 2008, increasing opportunities for dealers with the combined benefits of ink and laser in a single device: fast printing speeds, excellent print quality for text in CRD, print-for-pay and commercial print environments. In addition to the imagePRESS C7000VP, Canon provides and graphics, a low cost-per-page and HP world-class reliaa number of programs and offerings to complement the bility, opening the door to innovative printing solutions for device and help drive interest in digital production printing. businesses with high-volume printing requirements. In 2008, color in the office will continue to accelerate and They include the imagePRESS Workflow Solutions Program, a collection of Canon branded and third-party solutions that grow. From everyday office documents being printed on focus on key workflows in production printing environ- color printers (both single and multifunction), to color ments and the imagePRESS Essential Business Builder being applied to everything from presentations to marketing Program, a step-by-step approach to help printers develop collateral to communications, the number of color pages the right “go-to-market” strategy for their new imagePRESS being printed is exploding. Lower price points and new solutions are driving color growth in the office (2Q05 IDC, Lyra device and become value-added service providers. This year we have also had tremendous success with our Research Inc. Hard Copy Industry Advisory Service and imagePRESS C1 model for short-run, color production and Hard Copy Supplies Advisory Service, Second-Half 2005 proofing applications. We expect its popularity to continue Forecast) and customers are increasingly deciding that the value of color outweighs any cost. As a result, customers are for the foreseeable future. 12 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

FMAuditadSept07

8/29/07

11:38 AM

Page 1

14OT1207

12/1/07

12:20 PM

Page 1

bottom line margin needs that our partrequiring robust color solutions at It is about providing a ners desire with their HP partnership. every price point — and HP offers the HP is the partner of choice in the color broadest color printing portfolio in the printing solution — one printing space and will continue to industry for every type of business and that can help customers extend its color printers and solutions budget (including color laser printers optimize and manage to this rapidly growing market. HP also starting at $299). their printing and offers the industry’s most complete set With the growing adoption of color in imaging environment and of printer-based MFPs, as demonstrated the workplace, dealers now have the improve their workflow ... by an 80 percent increase in sales in Q1 opportunity to capture existing and new FY2007. HP’s printer-based MFPs will market share. According to Lyra Research, 268 billion color office pages were printed world- help us continue to shift the market away from copiers and wide in 2005 and the number is expected to grow to 489 billion focus on products that deliver the functionality customers by 2010 (Lyra Research, First-Half 2006 Plain Paper Forecast really need. As demonstrated through our partnership with BTA, we Perspective by Device Type, August 2006). As part of HP’s commitment to the channel, we will continue to invest in key parts are committed to the continued support and success of our of our color printing business, extend our color printing lineup partners and are poised to continue our strong competitive (HP has 11 products in the color printing arena alone) and advantage and to extend our reach in the marketplace provide even more resources to support partners who choose through our successful partners. As part of HP’s committo engage and grow their HP business. HP brings technical and ment to the channel, we are investing in key areas and marketing resources to help our partner network better bringing more resources to support partners who choose to understand how to position HP color printers, market and sell engage and grow their HP business. color printing services and maximize their opportunity to Konica Minolta Business create demand to our mutual customers. Solutions U.S.A. Inc. The opportunity for independent dealers to partner Kevin Kern, Vice President of with HP is through our Solutions VIP Elite program (SVIP). Product Planning & Marketing As our SVIP partners have realized, it is no longer just When we look forward to 2008, we about selling a printer. It is about providing a printing do not see a huge paradigm shift in solution — one that can help customers optimize and “go-to-market” strategies for us or for manage their printing and imaging environment and our dealers. However, we should be improve their workflow to reduce costs and increase promindful that our industry is in the ductivity. HP is helping dealers adapt to these changes by offering resources, education and incentives to market and midst of significant change. It seems clear that the business sell printers as systems, as printing services or as solutions. of printers and MFPs are converging at the customer level With HP’s new technology (color printers and MFPs) and dealers need to be well-prepared to handle the changes dealers can help their customers optimize their printing and opportunities that will result. With that said, we see four market-driven opportunities infrastructure and utilize this opportunity to provide services around managing the printing environment and, ulti- for Konica Minolta and our independent dealer channel: helping customers who are looking to rationalize their mately, improving workflow. HP, along with our independent dealer partners, has a output device strategy; solutions and services; transition to tremendous opportunity in 2008 to capture existing and color; and production print. Output device strategy — In most cases, the deployment new market share by offering the largest portfolio of prodof output devices in the office has looked at MFPs and ucts, services and solutions. Our comprehensive solutions and services for document printers from different disciplines within the organization. capture, security, workflow management and output man- The result has generally been to create a haphazard enviagement provide technology leadership and a market- ronment of devices with no real strategy. There is a rich leading portfolio to maximize the value of customers’ opportunity that is driven by the convergence of printers imaging and printing investment and deliver on the and MFPs, mainly by taking a more consultative role with 14 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

FMAudit ad 2 Nov 07

10/29/07

10:08 AM

Page 1

16OT1207

12/1/07

12:27 PM

Page 1

dealers are entrepreneurs who the customer and developing and impleOur dealers are have a good focus on local market menting a plan for deploying output and docconditions. They are agile, responument capture. By taking a more strategic entrepreneurs who have sive and quick to act on opportunirole, the dealer has the chance to capture a good focus on local ties. They are better connected into additional revenue from printers and support market conditions. the business network in their comservices than in the day when the focus was They are agile, munities and have a heightened only on copiers or MFPs. We see many dealers responsive and quick market awareness that no direct creating billable hours from providing these to act on opportunities. branch can hope to emulate. Our services or even taking it to the next level of job as a manufacturer is to listen managed services. In the coming year, we will introduce a range of software products to give our dealers carefully to what our dealers are telling us about their customers’ needs and what is required at their level to meet tools to manage these opportunities. Solutions — The industry has been talking about solutions these needs. for years now, but the success level within the dealer comKyocera Mita America Inc. munity has been quite inconsistent. The MFP makes a great Michael Pietrunti, President & CEO solutions platform and with the availability of application Kyocera Mita America (KMA) has programming interfaces and SDK tools for MFPs, dealers spent the last 12 months growing have the chance to develop a true blended hardware and and evolving its business, with much solutions business. The key factor is the ability to provide the success. In 2008, we look forward to services of discovery, design and implementation, as well as c ontinuin g that mom entum by post-sale support. These services are key to the future as they fo cusing on a numb er of trend s will provide new, profitable revenue streams while deepaffecting our industry and critical ening the dealer’s connection to the customer. Transition to color — The market for color will continue to operational areas of our business. First and foremost, we will continue to strengthen the grow and dealers who have not jumped in should. At the cusrelationships with our dealer network and find opportunitomer level, the transition to color is moving most quickly in the small-to-medium business (SMB) market, but we see ties for parallel growth in their businesses and ours. Our mid- to larger-size accounts slowly beginning to engage goal is to drive change — a change that is dependent on our color. As a manufacturer, we will deliver products that ability to work together and to capture — “even click” — reduce the total cost of ownership and make it more cost ahead of emerging opportunities. In an environment where effective for the customer to replace black-and-white manufacturer-dealer contention is becoming commondevices. Our dealers must become adept at assessing the use place, KMA will instead build a synergistic relationship with of color in the office and showing how consolidating color on our dealers — one that can truly foster mutual growth. To expedite our growth, we are looking to capitalize on an MFP is a cost-effective solution. We have enough data to know that the color business can improve a dealership’s prof- several key market factors to drive increased business. One key market factor affecting our business is the rapid transiitability. The bottom line will drive this business forward. Production print — The dealer community has been quite tion from older monochrome devices to new color printers successful in the production print arena, but there are sig- and MFPs, which will continue to create replacement and nificant growth opportunities ahead. One of the most inter- upgrade opportunities for all KMA dealers. A key area of focus esting is selling digital color to commercial print markets. will center on the rapid expansion of our B2C MFP business. KMA is taking steps to ensure that more of our dealers’ Offset transfer or the concept of taking pages traditionally produced on a printing press to digital is a market we have customers and prospects know that our products are right first touched with our bizhub PRO C6500. While still a small for them. We are optimistic that in 2008 our dealer channel percentage of the digital business, this segment will only will be confident in Kyocera Mita’s strategy to deliver a significantly expanded and more robust color B2C lineup and, grow and represent net new pages to the dealership. Strength of the dealer channel — The independent dealer more importantly, that those products will continue to channel is of critical importance to Konica Minolta. Our deliver what the customer expects from us: easy-to-use 16 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

FMAuditDigitalGatewayad

11/26/07

11:26 AM

Page 1

18OT1207

12/1/07

12:32 PM

Page 1

tactics, enabling our dealers to evolve technology, unparalleled reliability and A dealer who can offer their sales models from standalone to lowest total cost of ownership. In 2007, digitally connected installations. KMA launched four new B2C color customers an integrated We also will maintain our clear focus MF Ps and four n e w mono chrom e package of hardware, on what we define as practical solutions. MFPs. In 2008, we will expand our pressoftware, services and We enjoyed a successful 2007 with the ence in the B2C color market — espesupport will have the introduction of a new version of iTag, a cially in Segments 2, 3 and 4 — and opportunity to gain even scalable, user-friendly document manlaunch a suite of next-generation B2C more ... advantages ... agement solution ideal for small busiMF Ps. We reali z e that to a chi e v e nesses or departmental environments. success in this area, a lot of hard work is needed, as many of our competitors have benefited from an Aside from the incremental profits, the most important earlier start in this area. However, our momentum and value of iTag is to help our dealers make the all-important transition from “box mover” to “trusted business partner.” product offerings are strong. KMA realizes that to sustain meaningful growth, we need This is especially true at the departmental level and among to continually challenge ourselves. A key focus area will be to small-to-mid-sized and enterprise-based companies, where continue to build up our channel and share in the top 25 U.S. the document management opportunities can be the most markets. In 2007, we made significant progress in this area as profitable. From an enterprise perspective, KYOcapture, our we continue to fortify our dealer channel infrastructure. I flagship server-based document capture workflow solution, will state that our primary strategy is to work in tandem with has the opportunity to grow greater profits for our channel. We will look to engage our dealers on evolving their busiexisting KMA dealers to capture new market opportunities. Another important objective will be to implement our nesses toward a consultative sales model that can strategiplan to extend our presence in the printer market. As a cally address the needs of today ’s globally connected company, we recognize the need to drive deeper brand businesses. We recognize that incorporating a consultative awareness in the IT channel and in 2008 we plan to continue sales approach is necessary to increase the connected to increase our mind share by taking our printer business to versus standalone ratio of imaging products among endthe next level. Our printer products are known for perform- user customers. Although this presents a shift away from ance and features, but when it comes to our traditional the traditional mind-set, we believe the value-added insight strengths — reliability and total cost of ownership — we from our dealers will lead to true growth and a new dynamic customer relationship. In order to support this trump our competitors. We will continue to put a significant emphasis on support developing relationship, KMA will provide dealers with the of managed print services (MPS), programs that focus on necessary tools and support required to make these vital increasing a customers’ fleet productivity while reducing business transitions. We are also focusing on offering customized, vertical direct and indirect costs. This is where the real incremental growth opportunity exists for expanding our dealers’ busi- market solutions that focus on aligning document imaging nesses beyond the traditional scope. Dealers who are cur- requirements with market-specific needs. Areas where we rently taking advantage of this opportunity are already see the greatest opportunities for success include: healthenjoying significant revenue gains and we anticipate many care, government, finance and education. To ensure we are within our dealer channel will incorporate the MPS sales properly equipping our dealer network with the best tools, KMA has made a dedicated effort to ensure the proper verstrategy in the coming year. A dealer who can offer customers an integrated package tical certifications. In 2007, we proudly became Cerner and of hardware, software, services and support will have the MEDITECH certified for healthcare, NIST-certified for govopportunity to gain even more competitive advantages, ernment, achieved Microsoft Gold Certification status and received International Standard Organization 14001 Enviwhile enabling customer satisfaction to rise to new levels. KMA is placing greater emphasis on solutions, where we ronmental Management System Certification. ISO 14001 recognize an important customer migration trend in the designation, which is the recognized standard for environmarket. Together, we will develop an effective and sustain- mental management, is a critical benchmark for our enviable system that supports the dealers’ solution selling ronmental efforts. With new certifications in hand, our 18 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

PluggedIn

12/1/07

12:44 PM

Page 1

20OT1207

12/1/07

12:50 PM

Page 1

mately 4 percent. Yet, most dealers only dealers have the opportunity to own have A3 MFP devices available to them “verticals of excellence,” grow their busiWith the multitude of to meet the needs of their customers. nesses organically and maintain profcapabilities found on That said, this year should be a banner itable customer relationships. newer MFPs, end-users year for the influence that A4 MFPs will We believe teamwork and a synerare more inclined to have on our industry. gistic business relationship with our choose those devices While typical page consumption dealers is critical and we cannot stress that are easier to analysis shows that 67 percent of the that enough for 2008. No manufacturer’s understand and use. total page output is printed, 30 percent suite of products and technologies can copied and 3 percent faxed, when endjustify continued actions that are juxtaposed to their dealers’ strategies. We recognize that our BTA users incorporate MFP technology into their daily business, dealers are unique and that our success in the past, and the these percentages change. Printing output grows steadily to success we will experience in the future, is a direct result of nearly 90 percent as end-users find that they can now staple, their efforts. Clearly, our business structure provides us the sort and finish. They have less need to print and then copy, in opportunity to leverage one another’s strengths and we order to receive finished output. Noting that 11-by-17-inch must recognize that we are part of one system, working paper-handling is on the decline and that the total printing together toward common goals — offering our customers output percentage is increasing with MFP usage, many greater satisfaction and success. We strongly believe that all organizations have grown to appreciate the reliability of a of our future plans and strategies can only germinate from printer-based MFP. Dealers who can provide their customers within the type of symbiotic relationship KMA already with A4 printer-based MFPs will have a strong value proposienjoys with its dealers. The year 2008 will bring new tools, tion to offer their customers. End-users will appreciate a products and solutions to KMA dealers, but even more so, a lower TCO, an increased feature set and a smaller space requirement. collaborative approach to ensure our collective growth. Lexmark’s X642e, X644e and X646e series of mono laser A4 MFPs offer speeds up to 50 ppm. All models come standard Lexmark International Inc. Jim Hawkins, Channel Development with PS3, PCL6, 600 to 2,400-dpi, copy, print, fax, e-mail and scan with color scanning. Each of these models allows you to Manager We at Lexmark not only realize scan to and print directly from USB memory. Our X782e that th e BTA Chann el of ind e- color laser A4 MFP offers speeds up to 40 ppm black and up pendent dealers is unique, but it is to 35 ppm full color. This model also comes standard with comprised of a collection of profes- PS3, PCL6, 600 to 4,800-dpi, copy, print, fax, e-mail and scan. With the multitude of capabilities found on newer MFPs, sional and sophisticated businesses that provides unparalleled support end-users are more inclined to choose those devices that are to other businesses. The dealers’ ability to understand their easier to understand and use. They prefer to buy products customers’ needs for document processing requires some of that are specifically designed for their industry and make the most educated sales, service and network professionals their document processes simple. Lexmark makes it easy for of any product and services channel. That is why we have anyone to use our products by allowing the dealer or the just recently introduced our “Business Solutions Dealer end-user to customize our “e-Task” color touch screen panel Program,” a program designed specifically for the BTA with icons for any features or applications that they prefer. Channel. This program offers a unique product pricing and With open architecture becoming more important to satisfy distribution program that you will find has been designed to customer needs and help dealers distinguish themselves help you not only compete, but win in the arena of changes among competitors, Lexmark’s Embedded Solution Framework (eSF) allows Java-based applications to run directly on to come during the next year and beyond. Moving into 2008, our industry is poised to change in many Lexmark products. Solutions can be uniquely tailored for ways. Several third-party industry analysis firms report that each customer and applications can be easily scaled to hunthe total percentage of overall 11-by-17-inch (A3) paper-han- dreds of devices. Dealers who elect to be certified are weldling in the United States has now been reduced to approxi- comed to become Certified Solutions Providers for Lexmark 20 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

21OT1207

12/1/07

2:10 PM

Page 1

products. Through the eSF architecture, solutions providers allow both dealers we offer not only solutions by generality and Lexmark to meet the ever-changing Additional areas for like document distribution, OCR proneeds of the end-user. growth, which offer BTA cessing, posters and banners, bar codes Additional areas for growth, which dealers exceptional and data security, but also by industry, offer BTA dealers exceptional revenue revenue opportunities, such as retail shelf tags and bar coding, opportunities, are single-function prodare single-function legal Bates numbering, healthcare ucts and managed print services. Through products and managed patient wristbands and warehouse RFID our Business Solutions program, Lexprint services. printing and programming. mark offers authorized dealers our We have recently stepped beyond the entire laser -based mono and color norm by introducing MFPs designed exclusively for key ver- printer product lines. These are in addition to the mono and tical markets. Based on the Lexmark X646dte laser MFP plat- color A4 and A3 MFPs of which our X945e B2C model rates form, Lexmark now offers the “Education Station,” the speeds of up to 45 ppm black and up to 40 ppm color. Our “Clinical Assistant” and the “Legal Partner.” A highlight from own Lexmark Fleet Manager (LFM) managed print services each of these unique MFPs are: The “Education Station” offering and software just recently received accolades for the offers testing and grading, the “Clinical Assistant” offers “Best Revenue Generator” and “Best Partner Program” at the forms on demand and EMR integration and the “Legal CMP XChange ’07 conference in October. BTA dealers will Partner” offers cost recovery and tracking. Incorporating find LFM available as one of the many channel offerings. Two open architecture through eSF and pairing with our certified other offerings worthy of consideration are the document

w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7 | 21

22OT1207

12/1/07

2:14 PM

Page 1

rel eased by He w l ett-Packard and needs assessment (DNA) and our regLexmark that targeted workgroupional showroom facilities. With hundreds of based document imaging. We believe At Lexmark, our slogan is “Customers workflow, compliance, that in 2008 HP, Lexmark and other trafor Life.” We value our dealers and will security and print ditional printer manufacturers will continue to develop award-winning management solutions expand their product offerings in these products, programs and solutions. Our in the market, it is categories as they continue to shift “Business Solutions Dealer Program” is imperative to be an ... more focus to workgroup document designed to support you and Lexmark educated dealer ... imaging solutions. In order to protect will be available to assist you. This and grow the current installation base, coming year, Lexmark will strengthen its emphasis on BTA Channel development. We hope you will it will be imperative that independent office equipment dealers take heed of these trends and embrace competitive consider Lexmark as a business partner. products to successfully compete for the workgroup user. Muratec recently launched the MFX-4550 Professional Muratec America Inc. Edition — a letter-size, 45-ppm MFP, which enables dealers Jim D’Emidio, Vice President to successfully compete with printer-based MFPs. When of Sales & Marketing Muratec America Inc. believes competing against the traditional printer manufacturers, an that in 2008, independent office independent dealer has an advantage by offering a lower equipment dealers will see con- cost of operation, responsive on-site service and a complete tinued channel conflict from direct portfolio of imaging and workflow solutions. We believe that customers will continue to turn to the and indirect competition, significant independent office equipment dealer to integrate workflow hardware and software technology advancements and an increase in customer demand for cus- and cost efficiencies into their everyday business processes. tomized document workflow and business application solu- This will require dealers to fully understand the customers’ tions. We believe that these trends represent an opportunity pain points, such as color and monochrome output cost, for dealers to accelerate revenue growth, create differentia- device discovery and management, adoption of VoIP, docution in their market and deliver powerful applications and ment workflow, document management, compliance, solutions that will entrench dealers deeper into the cus- network security, e-discover y and more. Muratec is addressing these demands by introducing several new applitomers’ everyday business processes. Over the past nine months, the channel has experienced cations on our MFPs designed to enable enhanced commusome major shake-ups in regard to distribution. The Xerox nication with fax gateways, increased device management, acquisition of Global Imaging was obviously the biggest improved network security, personalized user interfaces and change as it allowed Xerox to make significant headway in our metadata entry from the MFP control panel (document distribution channel. The response from manufacturers has management archiving). Dealers must continue to invest in educating themselves as been both positive and negative as far as the dealer community is concerned. As manufacturers look to replace existing owners as well as their employees. Dealers should not depend Global business, they have increased their direct presence by on a single manufacturer for hardware or to make their docuacquiring dealerships in those markets (at premium prices) as ment workflow and print management decisions for them. well as authorizing new dealers to represent their product With hundreds of workflow, compliance, security and print lines. As this trend continues it will be imperative to diversify management solutions in the market, it is imperative to be an your product offerings, integrate document workflow and engaged and educated dealer owner. It is also important that value-added solutions into your customer’s business processes dealers continue to work on growing their own brand name in the market and not that of the manufacturer. Manufacand focus on growing your brand name. Last year we encouraged dealers to diversify their product turers will continue to expand distribution through acquisiofferings by exploring new high-speed, letter-size multifunction and authorization, so dealers must continue to educate tional devices that were targeted toward replacing tradi- themselves on market trends and technologies, offer a diverse tional standalone printers. This was in response to product line-up of hardware and software solutions and become more 22 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

23OT1207

12/2/07

2:27 PM

Page 1

that will allow them to raise rates up to 10 percent every six months based on the If anything, dealers number of toners used versus rated need to become experts yields by the manufacturer. OKI Data in all areas of print Adding more diversified sales strateAmericas Inc. and document gies, such as offering printers and printerMike Garofola, management in order based MFPs, will not only add to a dealer’s Senior Marketing to profit in 2008 bottom line, but also begin to position the Manager, Color and beyond. dealer as a consultant to the customer — Products not just a salesperson. By taking on a conIt is no longer a competitive advantage for office sultative role, a dealer thinks beyond the products to proacequipment dealers to be solely copier tively understand what resources will run customers’ specialists. If anything, dealers need to become experts in all businesses more efficiently. Partnering with document management system (DMS) areas of print and document management in order to profit in 2008 and beyond. The success of dealers will rely on their providers is an excellent area for a more consultative expanability to understand the full scope of customers’ document sion. Dealers can capitalize on the workflow and document infrastructure and provide solutions that more efficiently management trend by incorporating DMS systems, such as manage workflow. As we move into 2008, portfolio diversifi- MicrosoftSharePoint, into customers’ IT systems to better cation and a more consultative approach toward customers manage and service their printers. Small- and medium-sized become the keys. Dealers need to think a little wider about what customers need and expand their offerings beyond the traditional copier business. Offering printers and printer-based MFPs is a wise starting point. Trends show that compared to copying and faxing, printing has become the most widely used practice within an office; a report from InfoTrends in August 2007 shows that printing is the most commonly used function in color laser/LED MFPs, comprising 53 to 69 percent of usage (depending on whether the device is copier-based or printer-based). In parallel, businesses are bringing color printing in-house for a variety of purposes, including the production of marketing collateral and sales materials. This growth can be largely attributed to the significant technological advances in color printing that have led to outstanding print quality, greater media flexibility, faster speeds and lower operational costs. As a result, the printer has become a tool for end-users to improve their bottom line and enhance workflow efficiencies. In addition to traditional copier programs, offering costper-page (CPP) programs on printer fleets will further expand a dealer’s profitability, while also securing customer loyalty and longevity. Many customers who have adopted color printing for general business are comfortable with an allinclusive cost-per-page strategy since their costs for color are generally fixed, regardless of page coverage. However, in order to protect the profitability potential in CPP programs, dealers should incorporate escalation clauses in customer contracts ingrained in the customer’s everyday business processes in order to succeed.

w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7 | 23

24OT1207

12/1/07

2:21 PM

Page 1

c o st of own ership. Be cause of th e businesses (SMBs) along with vertical breadth of technology Panasonic offers, businesses are ideal customers to target Though we are focused it is easier for our company to offer a with this portfolio tool. These cuson the product, we better solution with a suite of complitomers typically do not have advanced are concentrated on mentary products and allow our dealers IT networks and are not as familiar the needs of our to maintain their margins, rather than with these resources but could benefit customers in specific acquiescing to buying market share. A from the integration. Keep in mind that markets where we know smarter customer requires a smarter for larger customers, a dealer should be our product fits best ... partner — someone who understands savvy enough to incorporate these their business and can help their busiproducts into an existing infrastructure that has already made significant IT investments. No matter ness. Once again, our transition from a hardware-oriented the size of the business, DMS providers will help dealers internal sales force to a value-added dealer sales channel has been instrumental in enabling us to take maximum offer more value to their clients. Some printer/MFP manufacturers, such as OKI Data advantage of this shift in end-user priorities. With our national network of high-quality vendors proAmericas Inc., are developing products to ease integration with DMS providers and utilize consistent software platforms viding a full range of compatible Panasonic products, our that decrease the learning curve and increase ease of use for customers now have one-stop service and support for every both dealers and end-users. The CX3641 A3 Color MFP from link in their document-processing chain. Turning once again to the increased importance of total OKI Printing Solutions features embedded EFI Send-Me Technology and has been designed to create a one-step, paper-to- cost of ownership, we believe that our dealers are uniquely electronic document conversion that easily integrates into positioned to benefit from Panasonic’s legendary leadership existing business workflow processes and provides connec- in the areas of minimizing routine maintenance and maximizing long-term durability because of our industry-recogtors to popular document management systems. As dealers look to diversify their portfolios and take a more nized reliable products. Simply put, relative to industry averages since 2000, our consultative approach to customer relationships, they will be products cost significantly less in both dollars and person able to take advantage of incremental opportunities in the printing industry — an industry that has been recognized for its hours to service and repair. Always one of our dealers’ major growth and proves to be a true supporter of the dealer channel. selling points, that message resonates more powerfully than ever going into 2008. Within a mature market such as document imaging and Panasonic Communications processing, the question of where we go from here cannot be Company of North America adequately answered simply by hyping advancements in core Steve Mullin, President Looking toward 2008 from the specifications. Will our upcoming products be more powerful, vantage point of a successful year, we faster and include more bells and whistles? Almost certainly. But they will also be more refined, more attuned to the see a future in which our dealers continue to grow their businesses smaller picture. We know where our products perform best based on one simple premise: prod- and it is there that we will continue to focus. This brings us ucts and people. Both our products back to products and people. It has always been the philosand our people are a means to an end, a tool with which to ophy of Matsushita to keep the customer close. Our strategy achieve a goal in the most efficient, cost-effective and highly going forward has remained the same as our founder’s; though we are focused on the product, we are concentrated qualitative manner. Ever since turning our company around by migrating on the needs of our customers in specific markets where we from an in-house sales force to a dealer-driven model know our product fits best and benefits the customer best. several years ago we have been able to devote a much Our salespeople are not just there to take an order. They are greater percentage of our resources and energy into deliv- driven by Matsushita’s philosophy to service our customer by supplying them with the proper product that fits their ering a more robust solution to our customer. By working with our customers, we focus on their total specific needs. 24 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

25OT1207

12/1/07

2:56 PM

Page 1

Our strategy has been and continues to be to become the best and easiest company with which to do business. We believe in diligently servicing our customers and strive to do so on a daily basis. Our goal is to create partnerships with dealers who share in and aspire for the same. This is a mature market and our customers are looking for more than just product, which is why we lead with people and extreme customer satisfaction.

familiar with the trends and challenges of vertical industries. The demand for state-of-the-art MFPs combined with high-tech solutions in vertical markets continues to grow as compliance issues become more and more prevalent. With accountability acts such as HIPAA and Sarbanes-Oxley, new MFP technology is essential for keeping documents safe, secure and in the right hands. Ricoh has developed real solutions, such as eCabinet, a secure network document repository, and Data Overwrite Security System (DOSS), a system that reduces the risk of information theft by overwriting data on MFPs, that meet accountability and security standards and provide a solid document management infrastructure. On the horizon — While it is important to focus on vertical applications, it is also vital for dealers to be armed with strong horizontal applications that are designed for a broad cross-section of users. In Ricoh’s case, this broad crosssection is small- to medium-sized businesses and one example of a horizontal solution the company offers is Transaction Link. With the Transaction Link application, users of Sage MAS 90 and MAS 200 accounting systems for businesses across all industries can use their Ricoh MFPs to scan supporting documents and link the resulting electronic files to specific transactions for auditing purposes as well as reporting on missing documents. By providing Transaction Link to customers, dealers enable them to improve document workflow efficiency, compliance (internal and with Sarbanes-Oxley), customer satisfaction and profitability by integrating with existing business processes. Transaction Link supports the current customer demand for easy-to-use, yet advanced solutions. It relies on th e fami li ar int er faces of MAS 90 current accounting systems and Ricoh MFPs so installation is fast. However, the results are long-lasting as it is designed to increase cash flow while streamlining a wide range of document processes and enhance the return on investment (ROI) for existing business-critical accounting systems. Above and beyond — Given that the industry has been shifting toward solutions, it is imperative that anyone selling MFPs and printers begin with a solutions-based focus, whether it is vertical or horizontal. Customers are looking for more value-add expertise and services that can move them beyond just creating output to developing efficient and secure document workflow that affects their bottom line.

The biggest challenge ... for dealers in 2008 will not just be keeping up with these rapidly changing requirements and requests, but staying one step ahead ...

Ricoh Americas Corp. Ron Potesky, Vice President, Corporate Product Marketing In today’s ever-expanding digital age, customers are increasingly b e c omin g more educat ed and sophisticated in regard to their technology needs and wants. The biggest challenge, as well as opportunity, for dealers in 2008 will not just be keeping up with these rapidly changing requirements and requests, but staying one step ahead of the game. First and foremost, the demand for color and advanced document management solutions will continue in 2008. In addition, a specific customer need that will be prevalent this coming year will be the demand for very specific vertical and horizontal solutions. To keep up with this demand, Ricoh’s focus will be on delivering easy-to-understand and easy-to-sell solutions that small- to medium-sized businesses need and dealers will want to sell. Getting vertical — Vertical market applications are a hot territory for dealers today and there is a real opportunity to capitalize on this industry trend that will only become hotter as we move into the new year. Ricoh will be introducing several vertically-focused solutions in 2008 for various markets (e.g. real estate, healthcare, legal, etc.). This effort aims to supply dealers with all the tools necessary, such as proper training, collateral and advanced products, to target and capture small- to medium-sized business in specific vertical markets. Since each vertical industry has its own specific document management needs, it is critical that the solutions provided to help streamline workflow are available in a range of market-specific document management applications. Ricoh prides itself on maintaining a dedicated and experienced support team that is intimately

w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7 | 25

26OT1207

12/1/07

2:44 PM

Page 1

fied on the products and solutions and Successful dealerships are those that not By blending divisions, veteran reps can get certified on new only sell and service systems, but also products and continue to grow their possess technical expertise in areas such we can provide insight knowledge base. as document management and netabout technologies that In 2008, Ricoh will introduce many worked services in order to maintain we might not have had new black-and-white and color prodvalue for customers and meet a wide insight into before, ucts from low- to high-volume along range of needs from basic to advanced. enabling us to tap into with new solutions to go with these new Ricoh recognizes this dichotomy of broader market trends ... systems that cater to the vertical and customer demand and has developed horizontal markets. Meeting the current technologies surrounding security, workflow management, scanning and more. For example, industry demand for specific vertical and horizontal soludue to the security-focused landscape of our country today, tions will not only set Ricoh apart, but also help Ricoh dealmany more companies are recognizing the need to be able erships set their customers apart from the competition. The to scan files, create back-up documents, and send docu- overall value proposition must be clear and concise — help ments to a more centralized location to ensure business customers to save money, improve workflow and, ultimately, continuity in the face of a disaster. Ricoh is able to create move their ideas forward. these mature solutions that meet sophisticated customer Sharp Imaging and needs due to the alliances it creates with document manInformation Company agement organizations and the dedicated engineering of America resources it has around the world. The ability to offer these Ed McLaughlin, President advanced capabilities and resources will elevate a dealer’s Since we last spoke, Sharp has value and increase revenues and profit. combined all of its business products Dealerships can also market themselves as value-added into one cohesive organization with resources if they can go into a prospective client’s business the goal of having a broader underand access what equipment the organization is currently standing of our customers’ needs and using, evaluate how it is being used and then make appropriate recommendations on what hardware and software requirements. The Sharp Imaging and Information Comsolutions would be the most beneficial for the company’s pany of America, as we are now known, encompasses not needs in order to save them time and money and increase pro- only the copier division, but business projectors, POS prodductivity. If dealers can do the latter, it will ultimately drive ucts, professional displays and educational calculators. This more sales and lead them to greater success. However, this will empowers our organization to provide a broad-based, wellnot just happen overnight; training is the key to transforming tailored solution for many business needs. By blending divisions, we can provide insight about techa dealership into a document management consultant. Enlightenment — In an effort to not put the cart before the nologies that we might not have had insight into before, horse, Ricoh recognizes the need to properly train dealers on enabling us to tap into broader market trends, like the power various solutions/new technologies before sending them out of personalization. For example, we ran a program this past August/September with Sharp’s Quiz Calculators that opened into the document management wilderness. Ricoh offers advanced support and training programs to the doors into perspective accounts in existing school disdealers through its proprietary Ricoh University program. tricts for many copier dealers. As a result, instead of thinking In addition, a large focus for 2008 will be on continuing to of the dealership as a copier vendor, schools are looking at develop online dealer training tools. Today, Ricoh has Ricoh Sharp dealers to provide a host of products that meet their Connects, a sophisticated online multimedia training needs. This lends itself well to the idea of customization. As we discussed last year, customization is critical to this portal. The portal allows dealers to take virtual tours of hardware and software solutions in order to really explore industry and we see this continuing in the coming year. We the products, become well-versed in the technology and be previously outlined the potential for the success of Sharp better equipped to sell. The portal is a win-win for both the OSA, a development platform for MFP applications that new and the old, as new sales representatives can get certi- brings the power of customization closer to the customer. 26 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

PrintManagementFP

11/30/07

5:06 PM

Page 1

28OT1207

12/1/07

2:43 PM

Page 1

awareness and demand for green prodThis has proven successful over the past ucts. We see this trend moving into the year, and continues to be a strong focus They have become commercial arena, as customers are for us. trusted advisors in looking for manufacturers to be responSharp OSA is a development platform customer accounts, sible with recycling programs that conthat integrates network applications working together to ... serve natural resources and lower ozone seamlessly to create a personalized MFP create a solution that emissions. As a company that aims to be that can meet your customers’ specific will grow with the environmentally advanced, Sharp is business needs. Ideal for dealerships, account’s business. well-positioned in this respect. Many of any developer can use the Sharp OSA Sharp’s copiers are EnergyStar complatform because it is based on XML and SOAP — industry standard programming protocols that pliant and we look forward to announcing a comprehensive, are widely used. When we came to you last year, we had 50 environmentally friendly program early in the new year. As we look ahead to 2008, we will continue to expand into developers in the OSA program and now we have close to markets we are not yet actively supporting. We introduced 100. We have been selling an average of 600 OSA kits per month, showing that our dealers are seeing the true value of the high-speed Hercules series midway through last year Sharp OSA. They have become trusted advisors in customer and experienced a 15 percent growth in just the first accounts, working together to address account needs and quarter. We look forward to providing continued advancecreate a solution that will grow with the account’s business. ment for dealers, through new products and applications, It is important that dealerships transition to solutions- and most importantly, our commitment to customization. focused thinking. Quite simply, any dealership not adopting Toshiba America Business this will be left out in the cold. Copier manufacturers are Solutions Inc. quickly moving toward providing networked appliances that Rick Taylor, President & CEO are key to document workflow and not simply a “box” that As we close the book on 2007, makes copies. Sharp has been working with local dealers to Toshiba has maintained its position educate them on the value this can provide to their cusas the fastest growing copier comtomers. Sharp Academy, an online resource, helps dealers pany in the United States, far outbecome fluent in product features and capabilities. Sharp pacing the industry in non-retail unit dealers are also encouraged to learn more about the power sales. This achievement is no fluke in of customization through Sharp OSA by joining our regular our flat market; instead, it is a direct result of the programs webcasts on the Sharp Independent Dealer Network Channel. In addition, My Sharp, an innovative platform for and strategies we have developed and executed specifically individually tailored product support and training allows to help our dealers attain maximum growth and success. Toshiba sees three key areas of opportunity for savvy dealers to help customers get the return on their technology investment. It features helpful demonstrations about using dealers who want to grow their business: Color — Year after year, Toshiba continues to set new the scan, copy, print and fax capabilities found on Sharp office products as well as using related software solutions to records in color unit sales and monochrome-to-color conversion rates. Customer adoption of color products will continue virtually order and refresh supplies. The value that independent dealers have always provided to present a significant opportunity for dealer growth both in to the market is knowledge of the customer. An entrepre- hardware and aftermarket sales, with color being an area of neurial business is inherently more flexible and able to Toshiba’s product line well poised to meet customer demand. Software solutions — For the past several years, Toshiba has adapt to changes in the industry. This customer knowledge is critical in providing the best possible support and specific been encouraging dealers to make the transition from “selling features and application answers for their customers’ busi- the box” to developing partnerships with customers to provide more comprehensive “business solutions.” Increasingly, the ness needs now and in the future. In addition to customization, we have tracked a growing average selling price of hardware has decreased. In order to end-user expectation for environmentally friendly products. offset that loss, it is imperative that dealers bundle solutions There has been a surge over the last few years of consumer with their equipment sales. Not only will they differentiate 28 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

29OT1207

12/2/07

2:44 PM

Page 1

As we look to the year ahead, Toshiba themselves from the competition, but sets itself apart in an oversaturated they will gain incremental revenue and Offering solutions will industr y through the strength and margin. Offering solutions will be espebe especially critical ... breadth of our complete hardware and cially critical in 2008 as customers are as customers are faced solutions product line and the wide faced with achieving multiple business with achieving multiple array of value-added support programs objectives such as security, hardcopy business objectives ... and professional service resources that scanning, file conversion and electronic when considering aid dealers in building and maintaining file management when considering their their ... needs. solid business relationships with their document management needs. customers. In addition, Toshiba’s worldOver the past year, Toshiba has added several strategic solutions to its product lineup, including the class training programs are second to none, ensuring our proprietary Re-Rite, a highly advanced scanning and elec- dealers are best prepared for any and all industry challenges. 2008 looks to be an exciting year for Toshiba as we prepare tronic file management software. For customers, it provides to unveil a host of new products and business enhancement the ability to convert documents to one of 17 editable file formats. For Toshiba dealers, it is an ideal introduction into tools; and we are excited to share them all with our dealer selling solutions, as it is proving itself to be easy to both learn partners at our National Dealer Meeting in March of next year. Just as we encourage our dealers to serve as valued business and to sell. Print management — As hardware and CPC rates con- partners to their customers, Toshiba also strives to provide tinue to be squeezed, print management provides a solid that added value to our dealer partners and we look forward opportunity for cost recovery. Toshiba offers dealers valu- to continuing that relationship for many years to come. able tools to help them compete in this area, including Encompass and Total Print Management. To capitalize on these areas of opportunity, dealers must invest in training for their sales force. Toshiba recognizes that the transition to selling solutions is not an easy one, so we have created a new training program called Solution Selling System (S3). This program focuses on a 10-step selling model that includes identifying solutions that will best help the customer, best practices for presenting those solutions and then managing the account afterward. In addition to the above-mentioned areas of opportunity, dealers also should be aware of some key areas where customers’ demands are beginning to shift: A4 products — Increasingly, customers are recognizing that the bulk of their printing and copying needs use standard letter- and legal-sized papers and they are demanding machines that solely focus on meeting those specific needs. Toshiba has anticipated a growing emergence of this demand and has launched products that focus on these customer requirements. Single suppliers — Customers also are beginning to recognize the value of partnering with a single supplier to meet all their printing, MFP, wide-format, high-speed scanning, software solutions and print management needs. Toshiba has been preparing for this customer shift over the past several years and is well poised to fully support its dealers in meeting their customers’ complete product line needs. w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7 | 29

30OT1207

12/3/07

2:40 PM

Page 10

‘Day of Disruption’ InfoTrends hosts third annual ODT Forum by: Brent Hoskins, Office Technology Magazine

ocused on addressing the opportunities re sulting from th e si gnificant re cent changes in the office technology industry, market research firm InfoTrends hosted its third annual Office Document Technology (ODT) Forum Nov. 7-8 in Quincy, Mass. The event, themed “Day of Disruption,” drew approximately 110 attendees, including dealers and representatives of both hardware and software companies. “The theme this year is all about disruption,” said Charlie Pesko, president of InfoTrends, as he welcomed attendees to the first day of the forum. “And disruption leads to opportunity. So, we are going to talk about that, both from the hardware Above: The third annual Office Document and software side of the industry.” Pesko cited several “disruptive things” that Technology Forum drew have occurred in the three years since the first approximately 110 ODT Forum. “There is a lot of disruption on the attendees. Right: channel side of this business,” he said. “We’ve got InfoTrends President Charlie Pesko; Far Right: vendor consolidation, vendors buying dealers and InfoTrends Group vendors building their own direct organizations. Director Jon Reardon. So, the mix of distribution is changing.” Among the other disruptive changes are the “inkjet move- ware side of the business has come up very dramatically ment” from the desktop to the workgroup and the “true con- in the last three years.” Pesko noted that InfoTrends’ database currently includes vergence for the first time in the marketplace between the printer and copier business,” said Pesko. “It is a single close to 200 ISV (independent software vendors) in the U.S. market today. It is no longer ‘printer-based MFPs’ and market. “So, the number of opportunities and number of ‘copier-based MFPs.’ It’s one buying decision now. That’s a solutions out there has grown pretty dramatically and it will continue to grow,” he said. “When I look out there in the big change we’ve seen over the last three to four years.” And, finally, said Pesko, there has been the disruption marketplace, we’re going to see hundreds — perhaps thoucaused by the rise of software-based solutions. “ We sands — of solutions opportunities, if you look at all the horbelieve we’ve crossed the chasm between the ‘early izontal and vertical opportunities.” Jon Reardon, a group director at InfoTrends, echoed growth stage’ and the ‘rapid growth stage’ of the marketplace,” he said. “It [the installation of software-based solu- Pesko’s optimism for the opportunities software-based solutions] has really become a priority both on the dealer and tions provide. “We see increased adoption at the solutions vendor side of the industry. Its ability to drive the hard- level moving forward,” he said in “A Day of Disruption — An

30 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

31OT1207

12/3/07

7:51 AM

Page 1

Outlook on Opportunity,â&#x20AC;? his keynote 22 percent compound annual growth â&#x20AC;&#x153;From a customer address. â&#x20AC;&#x153;From a customer perspective, rate [CAGR] forecasted through 2011 for adoption rates seem to be gaining some color copier/printers and a 19 percent perspective, adoption traction. Almost every vendor now has a CAGR forecasted for production color); rates seem to be gaining suite of solutions they offer in combina The 7 percent CAGR since 2003 for some traction now. tion with their hardware offerings.â&#x20AC;? the print-on-demand production markAlmost every vendor However, said Reardon, solutions will et, which is forecasted to increase 2 now has a suite of present at least one challenge going percent (to a 9 percent CAGR) in 2007 solutions they offer ... â&#x20AC;&#x153; forward. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a question of metrics and through the 2011 forecast period; how we measure solutions activity and A continuation of the decline of solutions success,â&#x20AC;? he said. â&#x20AC;&#x153;The industry has a long way to go prices across the board, with the 3 percent decline experiin this area. We think there will be continued focus on metrics enced in 2006 continuing at the same percentage each year and how we measure the contribution of solutions to the through 2011. well-being of hardware manufacturers. Some vendors are The agenda for the ODT Forum included 18 education doing a much better job than others, but no one has actually sessions. In addition, the event featured the products of 14 figured it out in its entirety.â&#x20AC;? exhibiting companies, primarily software vendors. Reardon cited a number of other trends that contribute to Brent Hoskins, executive director of the the â&#x20AC;&#x153;Day of Disruption.â&#x20AC;? Among them: Business Technology Association, is editor of Office The transition from monochrome to color output (with a Technology magazine. He can be reached at brent@bta.org.

% "" & ddd Qb]Y\b`N P\Z

w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7 | 31

BTA Southeast Dec 07

11/28/07

3:28 PM

Page 10

BTA Southeast’s ‘Fall Colors’ District hosts education & networking conference by: Brent Hoskins, Office Technology Magazine

ontinuing with its longstanding tradition of bringing dealers together for learning and networking opportunities, the BTA Southeast district’s annual “Fall Colors Conference” was held Oct. 26-27 at the Waynesville Country Club Inn in Waynesville, N.C. The event drew 75 attendees representing approximately 25 dealerships. “The BTA meeting in Waynesville was a time to recharge our batteries, learn from our speakers and share with our colleagues,” said attendee Mike Upchurch, president of Business Machines Inc., Raleigh, N.C. “I would like to encourage all of our members to take advantage of this annual meeting. There is no better location for the fall meeting than the mountains of North Carolina. I look forward to another record-breaking meeting in 2008.” The agenda included two education sessions. Tom Callinan, president of Strategy Development, Bryn Mawr, Pa., presented “Implementing a Print Management Strategy.” The session provided attendees with insight to help them develop a strategy to capture all of a customer’s printed pages, ultimately fully transitioning the customer to the dealership’s MFP and printer brands. The second speaker, BTA PresidentElect Ronelle Ingram, vice president of technical service for Steven Enterprises Inc., Irvine, Calif., presented “Past — Present — Future,” providing ideas on claiming previously missed sales opportunities and methods of motivating all employees to help boost company revenues. In addition, the agenda included an opening reception and closing banquet. During the banquet, the association recognized BTA 2006-07 National President Dan Hayes, who had previously served as president of the BTA Southeast District. “BTA extends its sincere gratitude for your many years of exemplary service as a volunteer at the local, district and national levels,” said current BTA President Shannon Oliver, as he presented the award. “Your leadership and commitment to the association and its programs have served to strengthen the office technology dealer channel of distribution.”

32 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

Above: Ronelle Ingram leads one of the conference’s education sessions. Left: During the closing banquet, Dan Hayes (left) accepts an award recognizing him for his many years of volunteer service to the association from current BTA National President Shannon Oliver. Dolphin Capital and Color Imaging were both exhibiting sponsors. Following the conference, Bob Banks, business development officer for Dolphin Capital, commented on the event. “We enjoyed participating in the conference,” he said. “We were able to meet with current customers to receive their feedback and to network with prospective office products dealers to discuss opportunities to partner together. The location was beautiful, with the mountains surrounding Waynesville, the golf courses, the fall scenery, perfect weather and the nearby restored downtown.” The next BTA Southeast conference will take place April 4-5 at the Embassy Suites — International/Jamaican Court in O rl ando, Fl a . Watch www.btas outh east.org and www.bta.org for details. Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org.

33OT1207

12/2/07

4:11 PM

Page 26

COURTS & CAPITOLS

Are You a Workaholic? Prevent chaining employees (& yourself) to work by: Robert C. Goldberg, General Counsel for the Business Technology Association

ecember is always a good time of the year to reflect upon the accomplishments of the past eleven months. Although the New Year’s resolutions are long forgotten, we do know how we fared with family, work, social and civic responsibilities as well as overall satisfaction with life. As I reflect this December, it is not difficult to conclude that my professional responsibilities surpassed all other goals and responsibilities. Am I a workaholic? A workaholic has a compulsive need to work at the expense of everything else in his (or her) life. Fueled by laptop computers, cell phones and BlackBerries, one can be anywhere in the world and work. A recent University of North Carolina research study estimated that one-quarter — one in four — of U.S. employees fall within the workaholic definition above. Devoting one’s entire life to his work is unhealthy in many respects. Are you or is anyone in your business a workaholic? The same study cited above found that the trend of workaholism costs U.S. businesses $150 billion each year. Not only is this phenomenon costly to a workaholic’s family and a cause of increased rates of divorce, but it also results in lost productivity, increased health costs, stress, disabilities and wage and hour claims for overtime compensation. In fact, workaholism has gotten so bad that there is a twelve-step program, Workaholics Anonymous, that has been developed in an attempt to solve the problem. Groups like this have been formed to assist workers in developing a complete life and not just a working life. The first thing an individual can do to cut back on work is to take charge of technology rather than letting technology be in charge of him. Having a BlackBerry or Nextel phone does not mean one has to be available 24 hours a day, seven days a week. Sending e-mails in the evening, being the first, last or both at the office, having difficulty delegating, exhibiting excessive perfectionism, skipping lunch, being tired constantly and being depressed or exhausted are signs of a workaholic.

Workaholics are typically “star performers” and remain incredibly productive until they crash. As managers, we often reward these “star performers” with flattery, promotions and raises. In years past, our fallen stars were described as “burnt out,” but now it may be possible to keep that outstanding salesperson productive by managing his workload or your own. The issue is not working hard, but being able to turn it off and enjoy life. It is essential that we set boundaries. The first thing to do is to monitor employee hours. Have all employees (as well as yourself ) clock their time regardless of whether they qualify for overtime or not. Once you are aware an employee is w orkin g more hours than h e shoul d and that employee is entitled to overtime, you must compensate him for the time. The fact that overtime is not authorized does not mean an employer does not have to pay for the hours. If an employer receives the benefit of the work performed, he must pay for it. Attorneys are using new technology to prove the hours an individual has worked. Detailed call and e-mail logs show every minute an employee is working on these devices. These records can be used in court to establish the entitlement of overtime compensation, penalties and interest. Workaholics may also qualify as disabled employees entitled to disability benefits or a workers compensation claim. Just as “BlackBerry Thumb” has been recognized as a disability, workaholism may reach the same level as increased research and study continues. If one can no longer earn a living due to the effort put forth at work, he is going to look to his employer to compensate him for the loss. Life is not limited to work alone. Make sure you and your employees take time to enjoy all life has to offer. I know that I am going to try. Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com. w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7 | 33

34OT1207

12/2/07

4:14 PM

Page 29

SELLING SOLUTIONS

Managing Complex Sales A five-step plan for the big-ticket deals by: Tom Kramer, Strategy Mapping Selling

he competitive battle for success in major account selling is won by those who can create a competitive advantage for their customers. Closing major sales, however, is an art that requires exceptional skills combined with a solid process or plan for success. We all want to close bigger deals, but selling to larger organizations can be a daunting task to new, as well as experienced, sales representatives. Big-ticket sales require a different approach and unique skills. They require a process of thinking, diagnosing, extensive planning, patience and the coordination and application of resources from all over the company. They involve a longer sales cycle, meeting with sophisticated and cross-functional purchasing committees and, more often than not, they offer limited access to the real decision-makers. Nonetheless, if you are successful you will accomplish two major goals of effective account management. That is, you will bring profitable business into your organization and position yourself as a highly valued (some might say, invaluable) business partner to your customer. If your sales reps are like most, they do not like to call on higher levels in their accounts. They are more comfortable calling on the purchasing agents or office managers. Large deals, however, require higher level approvals and, in the past, sales reps liked to communicate their proposals through lower level or middle management contacts. To compete more effectively for the big deals today, both your new and experienced reps must be equipped to call higher and wider in their accounts and understand the complexity of the purchasing landscape from a 360-degree viewpoint. In short, they need to plan more extensively and understand the art of the complex sale. Here is a five-step process to help your reps manage all the elements involved in closing the big deals. The process addresses customer needs, goals, competitive strategies, contact buying motivations and account obstacles. It puts the emphasis on opportunity planning and provides salespeople with a “strategy

34 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

map” that lists all the critical steps involved in preparing for and closing the major sale. Let us take a look at each step. Plan to meet your customer’s stated needs with transactional value — Needs are the stated or implied “transactional” requirements of the customer (product specs or performance expectations, pricing, etc.). Combined, they are the necessary “ticket to play.” In this step, you should prepare a clear presentation of transactional value propositions that meet or exceed the customer’s stated needs. In addition, the message should be directed to the target contact(s) who are most responsible for assuring that these needs are met, such as the transactional buyers (users and purchasing agents). Prepare to address the customer’s performance goals with relationship and business impact value — Performance goals are results the customer will derive from the vendor relationship. These goals can be either the impact your product and service will have on the customer’s operating performance (increased productivity or increased sales to their customers) or the relationship value (trust and loyalty). The job of the sales rep is to uncover the customer’s goals and define the

35OT1207

12/3/07

2:43 PM

Page 1

Determine which obstacles must be potential impact that your technology and Determine which resolved in order to achieve the sale. Create service will have on the customer’s bottom a realistic and workable solution for each line. This is where you define your unique obstacles must be critical obstacle that can be implemented. and compelling value proposition. Finally, resolved in order to Identify the resources that you will need. you should focus your message of “busiachieve the sale. Create That is, what will be required to implement ness impact value” directly on the target a realistic ... solution for your solutions or who, from management contact(s) most responsible for assuring each critical obstacle that or tech support, will be needed to support that these goals are met, such as middle or can be implemented. and implement your plan. upper management or those concerned With these solution plans in place, will with ROI. Find a competitive position of strength — It is imperative to you be able to resolve the critical obstacles sufficiently to understand your competitor’s true value proposition. That is, address the concerns of the customer? If not, revisit your soluwhy would your customer want to deal with your competition strategies or make the go/no-go decision. This concise, five-step process is particularly effective tors? What are your value propositions (both transactional and relationship) that will effectively offset each of the com- because it takes a 360-degree look at all the critical aspects of the major sales opportunity. It is a way to think about and petitor’s value propositions? Now you are ready to rate the relative strength of the com- create a comprehensive opportunity strategy that will lead to petitor and the anticipated effectiveness of your “offsetting” the development of a “Next Best Action Plan.” This practical value propositions. Remember to also consider the com- plan considers all the elements that need to be addressed to achieve success. petitor’s transactional as well as relationship/impact value. I realize that this process is considerably more involved In addition, you should identify your competitor’s “power than your typical sales process. If managed properly, however, advocates” — those who are known supporters of each competitor and who will have a significant influence (direct or it will train your reps to think more strategically, plan more effectively and coordinate your company’s resources more effiindirect) on the buying decision. You are now positioned to make a go/no-go assessment. Ask ciently. The end result will be that your people will be better yourself if you are in a position to compete and win this busi- prepared with a consistent, disciplined and repeatable frameness. If not, you should revisit your value propositions to see if work to close major deals at more profitable levels while increasing your strategic standing with your customers. you can strengthen your case or make the go/no-go decision. Tom Kramer is an affiliate partner of Connect to individual buyer requirements and personal Strategy Mapping Selling (SMS). He has more than 30 years of wants — Your “contact list” should contain individuals identisales, sales management and marketing experience with IBM, fied as: (a) part of the needs evaluation; (b) responsible for the Eastman Kodak Company and Canon U.S.A. Inc. achievement of the identified “goals”; or (c) the competitive He can be reached at info@strategymappingselling.com. power advocate. Visit www.strategymappingselling.com or www.smsap.com. Buyer roles also need to be sorted out. What is the role that Strategy Mapping Plugged-In is designed for an each contact will play in the buying process? Will they be an entire sales team to join online for a single price. approver, decision-maker/final recommender, high or low Based on the Ten World Class Sales Standards that influencer or observer? Do they support you or are they “open” define top sales organizations both large and small, SMS or against you? Plugged-In teaches right thinking — making the Now you should create a development plan for each contact right call on the right contact at the right account at the right to move those against you to “open” and those who are “open” time with the right message to get the right results. to supporting you. With this information in place, ask yourself SMS has significant experience in the office equipment industry if you have sufficient support from the contact list to win the and can help ensure reps receive the best in opportunity. If not, revisit your contact development strategies business thinking and advanced professional or make the go/no-go decision. selling skills. See page 19 for details on the Find solutions to critical obstacles — Frequently there are launch of a new BTA program providing its general obstacles that need to be addressed such as customer dealer members with the opportunity to take history and previous dissatisfaction levels, product competiadvantage of SMS’s Plugged-In program. tiveness and significant price differentials, T & C’s, etc. w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7 | 35

36OT1207

12/2/07

4:25 PM

Page 26

PRINCIPAL ISSUES

The Labor Shortage A smart managerâ&#x20AC;&#x2122;s guide to keeping good people by: Joanne Smikle, Smikle Training Services Inc.

ven if you did not believe the doomsayers of the past few years, if you have positions to fill, you know that there was truth in their predictions. In a 2004 study conducted in partnership with the Employment Policy Foundation, consulting firm Watson Wyatt concluded that the labor shortage in the United States could reach 18.1 million workers in 2020. This is due, in part, to the aging population. The Bureau of Labor Statistics estimates that, from 2005 to 2012, the annual growth rate of the 55 and older population will be four times greater than that of the overall workforce. This labor shortage, while still in its early years, presents se veral probl ems for employers, particularly small businesses. We operate on smaller profit margins than huge, multi-national corporations. Our recruiting resources are limited. Many small businesses rely on newspaper ads and the occasional online posting for new hires. Larger employers have the ability to take regular advantage of career fairs, far-flung Web-based advertising and any number of other outreach efforts aimed at getting the best talent available. The other disadvantage that small employers often face is that there are fewer people doing the work. This takes multitasking to the highest level. In most dealerships, it is not uncommon for people to occupy double roles; the office manager may double as the HR representative and the CFO may also manage employee benefits.

Staffing Challenges The fact of the matter is that there do not seem to be enough well-qualified people for the positions. Managers across the country are lamenting their inability to get and keep the best people. Whether you own the dealership or are managing a department, you have undoubtedly felt the effects of the labor shortage firsthand â&#x20AC;&#x201D; not enough applicants, little or no loyalty from new employees and perhaps a sense of entitlement from older staff members. These are persistent complaints from managers struggling with the effects of the shortage of competent, committed staff. 36 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

It should first be noted that an unfilled position is better than a poorly filled position. It is far wiser to be selective in hiring than to hire the first warm, breathing body you find. The work that it takes to deal with an incompetent, uncooperative or uncommitted employee is more taxing than waiting for the right person. Think about the amount of effort that managers put into bad hires. Not only do these employees create extra work for managers, they also often make life difficult for the rest of the team. Their colleagues are forced to suffer through the pain of working with a person ill-equipped for the job. Team members are called upon to fix and fill-in for these bad hires. In extreme cases, good employees will leave because of the extra burden brought on because they are overworked and underappreciated. These staffing problems are real and trying for even the most savvy leaders. But they are not insurmountable. John Kuchta, president of Omaha, Neb.-based Solution One, uses a thorough approach to finding the right people. He believes that one bad employee can cost you a customer that you have had for many years. Rather than risk a customer defection, Kuchta uses a well-planned approach to hiring. He makes sure that the message is clear â&#x20AC;&#x201D; they will not settle for just a warm body. He has high standards and a tough screening process, but neither

37OT1207

11/28/07

10:28 AM

Page 1

leads, but community papers are often recruitment nor retention are problems for read by people looking for part-time and his company. Kuchta attributes this to the Welcoming workplaces short-term work. fact that his company uses a detailed are characterized by Strategy #3: Flexibility — Keeping your process on the front-end. His process open communication best employees requires flexibility. Each begins with a screening interview and an that flows up and business defines flexibility differently. In assessment. The results are measured down. Employees want some companies it will mean creating flexagainst the job description. The subsequent to be able to voice ible work schedules to accommodate the interview is typically three hours long. It their suggestions ... needs of part-time employees. In other allows the candidate to get to know the organizations, flexibility may be defined as company and vice versa. Each and every hiring manager is trained for the screening process. Kuchta job sharing between two part-time employees. And yet, in other organizations, flexibility may mean allowing telecommuting for approves every hire and is active in the recruitment process. appropriate positions. Ask your employees to find out where you could become more flexible and accommodating. Catching & Keeping the Right People Flexibility is especially important if you are going to utilize Recognizing the fact that there are fewer well-qualified people for jobs in many regions of the country, it is necessary for man- the talents of semi-retired seniors or stay-at-home parents. agers to implement smart recruitment and retention strategies. They have built full lives and will work if the work can meld Reevaluating your approach to getting and keeping good people with th eir exi sting commitm ents. It i s important for will enable you to feel less of the pain of the labor shortage. employers to develop sensitivity to these needs. When There are five strategies that, when consistently implemented, employees see that you are willing to work with them, they will work with you. You will engender commitment by being reawill enable you to skillfully staff your organization. Strategy #1: Look where you have never looked before — If you sonable and responsive. Strategy #4: Create a welcoming workplace — If you intend to typically hire from the newspaper or the Internet, consider unusual places. This new terrain can include local graduate keep solid new and old employees, you must give serious considschools. Masters programs draw mid-career professionals, eration to your organizational culture. Is your workplace one many of whom may be looking for the next challenge. It is sur- where people want to work? Is your lunchroom bright and prising how many people enter graduate programs with the pleasant? Do you make small gestures like providing snacks in the hope of making a career transition. This is the prime location break room? Welcoming workplaces are celebratory environments where people are the focus. Birthdays and other significant for finding your next managers. Since the population is aging, it makes sense to hire older events should be remembered and acknowledged formally or people. The “Grey Brigade” comes with experience and a strong informally. These are the small things that have big payoffs. When work ethic. While you may think that everyone over 60 is looking people know that their managers care about them and their lives, for a Florida retirement, many within that population are opting they are more willing to invest in the work and the company. Welcoming workplaces are characterized by open commuto stay in the workforce. We are living longer and healthier lives, so there are fewer reasons to reach for the rocking chair on your nication that flows up and down. Employees want to be able 60th birthday. Contact AARP, local senior centers and your local to voice their suggestions, bright ideas and concerns. Companies that have regular staff meetings where employees have government’s office of aging to seek out seniors. Strategy #2: Offer seasonal opportunities — If your business time to question, discuss and share are typically more sucexperiences predictable peaks, plan to use seasonal employees cessful than those that do not. These companies emphasize to fill those positions. Rethink your business model to deter- what is most important — listening and learning from the mine where and how you can use limited-term workers to fill people who do the work. Strategy #5: Coach and mentor — Coaching and mentoring gaps in your current staffing. Consider which projects lend themselves to seasonal workers. Perhaps it is order fulfillment are performance management tools that should be used with all that is consuming too much time. Or, it may be managing employees, new or old. Use these tools with new employees to major mailings and marketing campaigns. Once you identify get them in sync with the work and the workplace. Assign a projects that lend themselves to seasonal or temporary mentor to new hires to help them learn about the job, the employees, begin advertising in community newspapers. Yes, industry and the company. Making people feel welcome extends the major newspapers in your metropolitan area can yield to providing them with a mentor as soon as they come on board w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7 | 37

38OT1207

12/2/07

4:35 PM

Page 1

and using this mentoring system immedidefined and a plan must be created to ately connects new hires to the company. address them. Creating a human They have an instant support system that The final step, “Work & Weigh,” occurs connection is vital to they can turn to with questions and conas th e employe e w ork s on th e pl an successful coaching ... cerns. This is a simple retention strategy created in the prior step. The coach is The more the coach that keeps human connections growing in th ere to supp or t and gui d e as th e and the employee can the company. employee works on improving performrelate ... the better the Coaching helps employees, regardless ance and productivity. relationship will be. of their tenure with the company, to reach Coaching and mentoring establish susth eir ful l est p ot enti al . It cannot b e tainable partnerships. They create a assumed that managers know how to coach — most need to higher level of connectedness that keep people invested in the be taught. The DRAW Model is an easy-to-use approach. The work and workplace. They also create more opportunities for first step, “Distinguish & Define,” focuses on creating clarity dialogue throughout the enterprise. about the relationship. The effects of the labor shortage are becoming evident. In this step, the coach identifies who will be coached and There are fewer well-qualified people for the available jobs. We why. Coaching should be used to reinforce positive behavior have a large graying population rapidly nearing retirement. and correct negative behavior. These realities make it important for employers to use creative In the second step, “Relate & Route,” the employee and his staffing strategies. They must also be focused on retaining (or her) coaching mentor begin to build bridges with one talent within the company. These mandates make it essential another. Creating a human connection is vital to successful for leaders to be conscious of culture and environment as they coaching relationships. The more the coach and the employee are determinants of employee satisfaction. Wise leaders will can relate to one another, the better the relationship will be. put forth the extra effort to create a welcome workplace that During the third step, “Address & Assess,” the coach gets to attracts and keeps the very best talent. the nuts and bolts of dealing with performance issues. When the Joanne Smikle is an author, consultant and coach is using this model to reinforce, this step is used to highspeaker specializing in leadership light best practices that the employee can use to continue development. Visit www.smiklespeaks.com to making great strides. When the coach is using this model to read more articles on current business topics. remedy performance problems, the issues must be clearly Smikle can be reached at (301) 596-3140.

ADVERTISER INDEX 23 • Ames Supply Company

13, 15, 17 • FMAudit

5, 11 • Print Audit

(800) 323-3856 / (630) 964-2440 / www.amessupply.com

(573) 632-2461 / www.fmaudit.com

(877) 412-8348 / www.printaudit.com

29 • BEI Services

40 • GreatAmerica Leasing Corp.

19 • Strategy Mapping Selling Plugged-In

(307) 587-8446 / www.beiservices.com

(800) 234-8787 / www.greatamerica.com

(800) 843-5059 / www.bta.org

27 • BTA Print Management Workshop

2-3 • ITEX 2008

7 • Toshiba

(800) 843-5059 / www.bta.org

www.itexshow.com

(949) 462-6165 / www.copiers.toshiba.com

39 • Business Products Council Association

9 • Kodak

(800) 897-0250 / www.businessproductscouncil.org

(800) 944-6171 / www.kodak.com/go/ChaChingOTM

31 • Duplo

21 • Niche Equipment

(800) 255-1933 / www.duplousa.com

(877) 446-4243 / www.roto-shredders.com

38 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | D e c e m b e r 2 0 0 7

31OT0107

12/18/06

2:51 PM

Page 1

Piecing Ideas Together.

The BPCA was founded in 1963 with the vision of forming a best practices organization that unites leaders of independently-owned office equipment dealers. The concept is quite simple - bring the leaders of these companies together so that they can share ideas, learn from each other, and take their businesses to the next level. Our members will attest that it’s well worth the investment by making each of them better leaders and bringing more value to their dealerships. Feel like there’s something missing from your organization? Let BPCA bring together all the pieces of the puzzle.

“Better Dealers Through Learning and Idea Exchange.”

If you’d like more information about our organization and how to join, please send us an email or give us a call. Phone: 800.897.0250 Email: info@businessproductscouncil.org Website: www.businessproductscouncil.org Membership Director BPCA c/o BTA 12411 Wornall Road Kansas City, MO 64145

Great America June 07

5/14/07

10:04 AM

Page 1

)PX %P :PV (FU 5IFSF

Which Way?

One Way.

â&#x20AC;&#x153;GreatAmerica always works closely with us to meet our business needs. They create custom programs that exceed a traditional leasing relationship. We also use the GreatAmerica FleetViewÂŽ product which provides many beneďŹ ts to the sales and administration side of our business.â&#x20AC;?

Steve Jacobs Infomax OfďŹ ce Systems, Inc Des Moines, IA

)&-1*/( :06 (&5 5)&3& (3&"5".&3*$" [Now offering FleetViewÂŽ, the perfect solution for remote meter and device monitoring.]

800.234.8787 | www.greatamerica.com

Office Technology Magazine Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.officetechnologymag.com www.bta.org

PRSRT STD U.S. Postage Paid Easton, PA 18042 Permit #31