November 2009 Office Technology

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CONTENTS Volume 16 No. 5 G

FEATURE ARTICLES 10

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Business Color The transition in the workplace continues

PRINCIPAL ISSUES Staff ‘Hats’ How effective are your employees?

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by Brent Hoskins Office Technology Magazine

by Jim Kahrs PPMC Inc.

We are no longer waiting for what was once the elusive “Year of Color.”

Quality is no longer an issue and the cost per page has dropped. Today, business color output in the workplace is becoming more commonplace.

How do we correct people who are not caring or who are being lazy? We can look at this problem on an employee-by-employee basis.

‘Well-Armed’ Dealers It is a great time to be in the copier/MFP business

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Grand Slam BTA East district hosts event Sept. 24-25

by Mike Stramaglio MWA Intelligence Inc.

Today, the dealer community, OEMs and end users have a growing list of productivity tools, asset management solutions and MPS available to them.

by Brent Hoskins Office Technology Magazine

With the goal of providing attendees with an office technology dealer-focused educational and networking opportunity, the BTA East district of the Business Technology Association hosted Grand Slam on Sept. 24-25.

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Building a Help Desk You may already have many of the elements in place

by Mitch Morgan Professional Services Roundtable

With the current trends in the industry, along with the impact of a soft economy, many office technology dealerships are seeking revenue growth opportunities. One of the steps that a dealer can implement quickly is building a help desk.

Office Document Strategy MPS primary focus of recent InfoTrends conference

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by Brent Hoskins Office Technology Magazine

Focusing on the major trends in the market, InfoTrends, a market research firm, recently hosted its annual Office Document Strategy Conference.

MPS STRATEGIES No MPS ‘Silver Bullet’ Instead, hard work is the key to success

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by Ed Carroll Strategy Development

Yes, there are many tools that are available to assist with the MPS process, but there are none that address all aspects of a successful MPS program.

COURTS & CAPITOLS 23

Retaliate & You Pay Proceed carefully when taking an employment action

by Robert C. Goldberg BTA General Counsel

The Legal Hotline rings and the member on the other end wishes to know if he (or she) can terminate an employee who is out with a workers’ compensation claim. The facts are always similar.

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DEPARTMENTS Business Technology Association

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BTA Highlights

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Executive Director’s Page

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BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

Again, BTA Members Advise One Another have seen it many times before — the open dialog between BTA member dealers with the goal of advising one another. Your association has been doing that for years, bringing noncompeting dealers together to ensure each leaves better able to manage his or her business, employees and future.

Recently, I saw this take place at the BTA Southeast district Fall Colors Conference, held Oct. 16-17 in Waynesville, N.C. While the entire conference provided the means for attendees to gain insight and guidance to help them in their businesses, it was the first event on the agenda that especially demonstrated the value of BTA membership. Late Friday afternoon, prior to the conference’s welcome reception, a number of attendees gathered for an open round-table discussion.

BTA President Bill James, who also serves as BTA Southeast secretary/treasurer, and Mike Upchurch, who serves as president of BTA Southeast, facilitated the discussion.

There were three topics at hand: disaster recovery, accounts receivable and leasing. A quick look at one of the topics — disaster recovery — illustrates the type of insight and guidance one member can share with others in a BTA-sponsored setting.

Bill shared his personal experience, recalling the impact of Hurricane Katrina on WJS Enterprises Inc., with two locations in southern Louisiana. Bill serves as systems support manager at the dealership. Encouraging his fellow dealer members to be prepared for any disaster, following are three of the takeaways I wrote down as he spoke: I It is important to have a system in place

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to communicate with employees following a disaster, which proved to be a key problem after Katrina, given the lack of telephone service. E-mail proved to be the best solution. Bill’s suggestion: Set up an employeeonly Web site that provides information to employees in the event of a disaster.

I If the employee who handles payroll is among the employees you cannot contact or locate after a disaster, who will handle payroll in the interim? You do not know in advance which employees are going to be available in the days following a disaster.

Bill’s suggestion: Make sure employees are cross-trained to perform multiple duties to reduce or eliminate the risk of not being able to rely on a single person to perform a key task, such as processing payroll.

I When a regional disaster strikes, like Katrina, it obviously affects employees’ personal situations as well, with the loss of homes, etc. Consequently, their focus may exclusively be on addressing their personal losses. Bill’s suggestion: While taking care of one’s family and personal situation should be a person’s first priority, employees should be encouraged to have a personal disaster plan in place. With such a plan, the employee will be able to return to work more quickly to help the business as well.

Welcomed advice? Those participating in the BTA Southeast conference round-table discussion thought so. After Bill shared his story and advice, others did the same. And everyone left the room better prepared for any future disasters. Once again, BTA members advised one another.

Watch for additional coverage of the BTA Southeast Fall Colors Conference in the December issue of Office Technology. I — 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 Ed Carroll, Strategy Development www.strategydevelopment.org Robert C. Goldberg, General Counsel Business Technology Association Jim Kahrs, Prosperity Plus Management Consulting Inc. www.prosperityplus.com Mitch Morgan, Professional Services Roundtable Mike Stramaglio, MWA Intelligence Inc. www.mwaintelligence.com

®

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership & Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org ©2009 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material.

However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

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BTA PRESIDENT’S MESSAGE

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2009-2010 Board of Directors

Expressing Thanks for Our Association haven’t met a person yet who doesn’t enjoy the Thanksgiving holiday. It’s a break from work. It’s a time to enjoy a little extra at meal time that we work to avoid the rest of the year. And, it’s a time for family members — often ext ended family m emb ers — to com e together away from the sometimes hectic pace of their normal routines. Of course, it is also a time to be thankful.

With the arrival of November and, as I write this, Thanksgiving a few weeks away, I can’t help but consider what we, as BTA members, should be thankful for in regard to our association. It has endured the ebbs and f low s of our industr y and , ye s, a number of recessions — even the Great Depression. The association was founded in 1926, so we are now in our 83rd year.

Here is my list of what I am thankful for as I consider BTA: I Eighty-three years is a long time for any organization to endure. I am thankful that the founders of BTA, then the National Typewriter and Office Machine Dealers Association, had the foresight to structure the association in a way that it would remain a member-dealergoverned organization. That has ensured that BTA has always remained focused on serving its core member — the dealer.

I None of us really knows how many volunt e ers have ser ved th e ass o ci ation through the years, but it is certainly in the thousands. Just in the years that I have been a volunteer there have been hundreds. I am thankful that all of these individuals have stepped forward to give back to BTA by helping to guide the association and serve

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their fellow dealers. Of course, I am particularly thankful for the commitment and hard work of my current fellow volunteers.

I Along with an appreciation for the volunteers comes appreciation for our staff members at BTA’s headquarters in Kansas City, Mo. Under the leadership of our executive director, Brent Hoskins (whose 23rd anniversary at BTA occurs Thanksgiving week) the staff members — and our general counsel, Bob Goldberg — are dedicated individuals who enjoy working to serve the office technology industry. I am thankful for their dedication.

I The leadership and guidance of the current and recent volunteers and the efforts of our staff have led to a revival of BTA in recent years. We have added to our education and benefit line-up in order to better serve dealers. We have ensured that BTA is present at virtually all manufacturer dealer meetings and key events, such as the ITEX show. We have begun hosting more BTA district educational events. We have also recently maintained the best membership retention rate in more than 10 years. I am thankful to see BTA thriving.

I And, saving the best for last, I am thankful for each of you, the members of BTA. Every member plays an important role in further strengthening the independent dealer channel of distribution. BTA is your advocate, the industry’s leading champion of the dealer channel. Consider that the dealer channel is known industry-wide as the “BTA Channel.” Without all of you as members, there would be no association.

I am sure you share in my thanks for our association. Certainly, I wish all of you a Happy Thanksgiving. I — Bill James

President Bill James WJS Enterprises Inc. 3315 Ridgelake Drive Metairie, LA 70002 bjames@wjsenterprises.com President-Elect Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 rjanecek@burtronics.com Vice President Tom Ouellette Budget Document Technology 251 Goddard Road Lewiston, ME 04240 touellette@bdtme.com BTA East Todd J. Fitzsimons Network Imaging LLC 122 Spring St. Southington, CT 06489 tjfitzsimons@networkimaging.biz BTA Mid-America Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA Southeast Terry Chapman Business Electronics Corp.

219 Oxmoor Circle Birmingham, AL 35209 tchapman@businesselectronics.com BTA West Lokke Patrick Docutxt Corp.

11110 E. Artesia Blvd., Ste. B Cerritos, CA 90703 lokke@docutxt.com Ex-Officio/Immediate Past President Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle, Ste. E Irvine, CA 92614 ronellei@msn.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

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Business Color The transition in the workplace continues by: Brent Hoskins, Office Technology Magazine

e are no longer simply waiting for what was once the elusive “Year of Color.” Quality is no longer an issue, the cost per page has dropped and end-user demand has increased. Today, business color output in the workplace — from both MFPs and printers — is becoming more commonplace. So, rather than the “Year of Color” this is the “Year of the Continued Transition to Color in the Workplace.”

It is a welcomed growth area in an otherwise generally flat industry. InfoTrends, the market research firm, forecasts that the compound annual growth rate (CAGR) for U.S. color MFP and single-function printer placements will be 12 percent through 2012. That includes laser, solid ink and page-wide inkjet. In contrast, the firm forecasts the CAGR for monochrome MFP and single-function printer placements will be -2.3 percent through 2013.

Market research firm IDC offers a similar forecast for color, at least for color MFPs (including laser, LED and solid ink). The firm forecasts a 9 percent CAGR through 2013.

However, the firm forecasts a -12 percent CAGR during the same time period for single-function color printers. IDC’s forecast for the total monochrome market is -6 percent through 2013.

“Color printers get hit hard from two fronts,” says Keith Kmetz, vice president of Hardcopy Peripherals Solutions and Services at IDC. “The lowest cost option is typically a black-and-white printer versus a color printer and any color MFP. So, some customers may opt for this kind of configuration based on the lowest available hardware cost. On the other front, a color MFP offers the ability to consolidate document functions [copy/fax/print/scan] into one machine versus a single-function printer. Overall, this MFP approach helps customers save money by consolidating the number of devices, supplies and maintenance requirements, while still

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offering color capability.”

Despite InfoTrends’ projection of growth for color MFPs and printers, it should be noted that by 2012, the firm forecasts that color devices will still claim less than half of the total market share — 39 percent. “What we’ve seen over the past three years is that the monochrome business is not going away as quickly as we thought,” said Robert Palmer, director of the firm’s Digital Peripherals Solutions advisory service, in a presentation during InfoTrends’ annual Office Document Strategy Conference in September. “The monochrome ‘tail’ is long. This is an important business and a very good business for a number of vendors. It is one that we cannot ignore as we continue to drive the shift to color.”

Even with the continued dominance of the monochrome market in at least the next few years, many would say that the forecasted growth of the color market should have the attention of all office technology dealers. Is your dealership actively selling color devices? Are you reaching your full potential? Certainly, many end users today have a preference for a color MFP or printer.

Rory Fox, a senior product manager for Toshiba America Business Solutions Inc., confirms the preference for color based on his own experience in presenting product demos for prospective customers. “Once I am done with the color demo, nine times out of ten, they don’t even want to have a black-and-white demo,” he says. “I cannot even recall the last time somebody just wanted to see a black-and-white demo.”

It is not a difficult task to make the case for a color document as compared to a monochrome document. Like others in the industry, Xerox Corp. shares some statistics — from a variety of sources — that illustrate the impact of color over black-and-white pages. For example, cites Xerox: Color makes an impression that is 39 percent more memorable;

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the payment response rate If everyone knows color is “People are resisting color for an invoice increases up better, then why isn’t evebecause of expense. to 30 p erc ent w h en th e ryone buying color output amount owed and the due d e v i c e s? “ Pe opl e are reThey know color is better. d at e are hi g hli g ht ed in si stin g c olor b e cause of They want to print in color. color; and color can boost expense,” says Bates. “They But some are not willing survey participation by 80 know color is better. They to pay nine times more percent. The list goes on. want to print in color. But for color. So that has Are end users motivated some are not willing to pay been a barrier. ” by such statistics? “We have nine times more for color.

— David Bates a bit of a debate among ourSo, that has been a barrier.”

Xerox Corp. selves about whether these Part of the problem is the statistics move people or lack of an understanding not,” says David Bates, vice president of Xerox Office Mar- among customers who have yet to purchase a color device, keting Programs. “I think we really like the stats because we says Bates. “The broadest perception of color is what they think they are proof points that people should use color … see in the window at office supply stores and copy shops,” he Personally, I’m not a big advocate of trying to tell people that says. “It is usually 50 cents a sheet or, if it is on sale, it is 35 color is 59 percent more this and 55 percent more that. Every- cents a sheet. Meanwhile, the general perception is that body knows that color is better.” monochrome is one penny no matter how much coverage.”

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Of course, the cost of last month and identified “Plus, the image quality is color for an MFP is far less more than 70 dif ferent so good on these highthan 50 cents or even 35 models that offer color at 45 cents a page, so Bates’ point pages per minute or higher,” end models that we are demonstrates the need for says David Murphy, vice getting into some markets dealerships to educate propresident of marketing for that we haven’t been in spective customers. The reRISO Inc. “The quality looks for a while. This includes ality is, on average, the cost about the same on most of graphic arts firms, of a color page on a color them; I think most users recmagazine publishers and PR firms.”

MFP is typically quoted at ognize that color looks good — Rory Fox seven to eight cents a page. on all of the MFPs on the Toshiba America Business Solutions Inc. Fox notes that this pricing market today. So, what haphas been about the same for, pens is, there is not much perhaps, seven years or so. “It has migrated down to about differentiation among them.” five and sometimes six cents in some cases, but it hasn’t gone Today, says Fox, differentiation is particularly important. very far,” he says. “So, the CPC for color has not changed a For Toshiba, differentiation comes in the form of certain capawhole lot as color MFP sales have gone up exponentially.” bilities among its color MFPs — such as the ability to print on Add to that the reality that many laser MFP products on thick paper, print a 12-by-47-inch banner and print from a USB the market are similar in performance. “I took a look at this key (these features not available on all Toshiba color MFPs).

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one cent per page, the same The company now also offers “If it is a half cent for as monochrome; Everyday several high-speed color black and five cents for Color, such as a page of a models — up to 70 pages per n ew slett er with a single minute (ppm) — that have color, that’s 10 times photo or a color bar across helped to further differenmore expensive ... What the top, is at three cents per tiate the company’s product we are able to do is break page; and Expressive Color, offering in many selling situadown that barrier and such as a PowerPoint slide tions. “Plus, the image quality show that color doesn’t with multiple photos, is at is so good on these high-end have to be 10 times more expensive ... ” eight cents a page. models that we are getting — David Murphy “ We believe that someinto some markets that we RISO Inc. where around 10 percent of haven’t been in for a while,” color pages in the office fall says Fox. “ This includes into the Useful Color category, and about 65 percent fall into graphic arts firms, magazine publishers and PR firms.”

Xerox and RISO have pursued differentiation with an eye on the Everyday Category,” says Bates. “This is 75 percent of the both technology and a low CPC. In June of this year, RISO intro- pages offering a huge cost reduction over the current marduced its ComColor® series of oil-based pigment inkjet printers. ketplace CPCs.” Bates adds that the goal is to move people to print more With industrial-grade Piezoelectric inkjet heads, ComColor’s five models range from 90 ppm to 150 ppm. They are being color. “The vast majority of all documents on your PC have placed in high-volume workgroup environments as well as in color in them of some kind,” he says. “We just believe that production environments. Murphy notes that the use of Com- you should print what you see on screen.”

It should be noted that the ColorQube it not currently Color often replaces that of two devices in the customer’s location — the use of a high-speed color MFP and a high-speed available to the independent dealer channel. It is only sold monochrome MFP. “If you have a 90- to 135-ppm monochrome direct. Bates says Xerox has plans to expand distribution of device, you are paying about four-tenths of a cent per page; the ColorQube to other channels in the first half of 2010. you’re going to pay the same on our device,” he explains. “But, Xerox does currently offer a number of other low-end color with color, you don’t have to pay five to seven cents. On a Com- MFPs and printers through its dealer channel, including two Color you are able to print the color jobs for anywhere from solid-ink MFPs with print speeds up to 30 ppm in color.

Whether the color MFP is differentiated by features or one to three cents a page, depending on coverage.”

When accustomed to color MFPs (which, incidentally, technology, it is also important for dealerships and their RISO does not expect to replace in many situations but sales reps to differentiate themselves in the selling process, rather augment for many print jobs, since ComColor models says Bates. “The sales strategy that I prefer and that I have do not print on glossy paper), users think in terms of a color seen used successfully is don’t try to talk them into ‘all color’ page costing ten times more than a monochrome page, says today,” he explains. “Instead, go to them and explain that Murphy. “If it is a half cent for black and five cents for color, you are a color expert and that you know the products and that’s 10 times more expensive,” he says. “That is a big hurdle want to help them transition to color.”

Bates suggests a line of questions and comments for the and is a great advantage for us because what we are able to do is break down that barrier and show that color doesn’t sales rep: “‘You can see that color page output is coming to have to be 10 times more expensive, but maybe just another the workplace. What is your plan? How do you plan to manage this transition in your office? Let’s talk about the half cent or one cent more.”

As noted, Xerox officials have scrutinized the barrier of the next three years. What is your plan for color? Let’s be careful CPC on color laser MFPs as well. In May of this year, Xerox about buying a monochrome machine today if you think launched the ColorQube 9200 series of solid ink-based A3 most of your people are going to be using color in two years.’”

He adds: “I think the way to sell color is not to try to tell MFPs — three models ranging in color output speeds from 38 to 50 ppm. Based on certain coverage thresholds, color pages people that color is better; everybody knows that. Instead, are printed in one of three categories and are priced accord- work with clients on their plan. People agree that they ingly: Useful Color, such as a page with a company logo, is at need a plan and they need you to start helping with that 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 | N o v e m b e r 2 0 0 9

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transition. Then, once you of cases, we have some of “In a lot of cases, we have get the color in place, they these devices in applicasome of these devices in recognize its value and it betions where customers have c om e s increasin g ly imvery little color print volapplications where portant to them.” ume,” he said. “The focus customers have very little Mur phy a g re e s that a needs to be on shifting to a color print volume. The consultative approach is page-oriented focus rather focus needs to be on always better. Five years ago, than a unit focus. We want shifting to a page-oriented he says, RISO was selling the to put our devices in those focus rather than a unit focus.” speeds and low cost of its applications where there is — Robert Palmer earlier generation of color high color volume and high InfoTrends inkjet printers. “It is not as value for those pages.” simple as that,” he explains.

Whatever their dealer“We are now taking a consultative approach and are not ships’ sales strategies, it is paramount for dealers to aggresrestricting ourselves to just counting pages. We take a look sively pursue the color opportunity if they are not already doing at the applications and listen to the customer, categorizing so, says Bates. “Clearly, the demand for color is increasing,” he their applications and making recommendations as to says. “If you are not pushing color, somewhich applications should go on which devices. This body else is going to beat you to it.”

Brent Hoskins, executive director of approach has been very well received by customers.” the Business Technology Association, Selling based on customer needs is important for success is editor of Office Technology magazine. in the color market, said InfoTrends’ Palmer in his recent He can be reached at brent@bta.org.

Office Document Strategy Conference presentation. “In a lot

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www.tomorrowscareer.com The answer to Staffing in the Office & Digital Technology Industry 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 | N o v e m b e r 2 0 0 9 | 17

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Grand Slam BTA East district hosts event Sept. 24-25 by: Brent Hoskins, Office Technology Magazine

ith the goal of providing attendees with an office technology dealer-focused educational and networking opportunity, the BTA East district of the Business Technology Association hosted Grand Slam on Sept. 24-25, which featured six education sessions, 15 exhibiting sponsors and an evening at Yankee Stadium to see the Boston Red Sox take on the New York Yankees. The event was held at the Ritz Carlton Hotel in downtown White Plains, N.Y. “Developed and hosted by BTA member dealers, the Grand Slam event was intended to provide our fellow dealers with an event that would give them meaningful insight, practical advice and valuable guidance to help them in their businesses,” said BTA East President Todd J. Fitz simons, presi d ent of Netw ork Ima gin g LLC, Southington, Conn. “The feedback we have received indicates that we accomplished that goal. In fact, based on that feedback and the success of the event, plans are underway to return to White Plains in September 2010 with a great speaker line-up, another opportunity to visit with some of the industry’s leading vendors and the chance to once again attend a game at Yankee Stadium.”

Fitzsimons expressed appreciation for the support of each of the exhibiting sponsors. “The sponsorship of each of these companies helped to make the Grand Slam event a success,” he said. “We greatly value their commitment to the independent dealer channel and their support of BTA.” The Grand Slam event sponsors: Kyocera Mita America (Red Sox/Yankees game sponsor), MWA Intelligence (welcome reception sponsor), Image Star (Sept. 25 breakfast sponsor), Compass Sales Solutions (Sept. 25 lunch sponsor); Color Imaging, DocuWare, ECi, Electronic Systems Protection (ESP), Falcon Technology Solutions, FMAudit, LEAF Dealer Solutions, Muratec America, Supplies Network, Wells Fargo and West Point Products.

Following the event, an e-mail message that was sent to

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Clockwise from top: Representatives of sponsoring exhibitor DocuWare alongside attendees; presenter Mitch Morgan of the Professional Services Roundtable; and attendees listen intently to one of the six education session presenters.

BTA East Grand Slam Sponsors

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all attendees from “Please allow me to Mike Stramaglio, president and CEO thank you and applaud of exhibiting sponyou for your enthusiastic sor MWA Intelliparticipation in the gence, captured recently held BTA East the spirit of the Grand Slam event Grand Slam expein White Plains, N.Y.” rience. He wrote: “Please allow me to thank you and applaud you for your enthusiastic participation in the recently held BTA East Grand Slam event in White Plains, N.Y. It was a pleasure for MWAi to join such a great group of dealers, industry experts and other software vendors and manufacturers. There were great presentations

by Frank Cannata, John Hey, etc., and congratulations to a BTA favorite, Ronelle Ingram. I appreciate the opportunity to work with such a refreshing group of people. Great job BTA!” The event’s six education sessions provided a broad range of topics from some of the industry’s leading presenters. The education line-up: “An Industry Undergoing Radical Change,” with Frank Cannata, Marketing Research Consultants; “You & Your Business in This Economy,” with John Hey, Strategic Business Associates; “Best-in-Class Service Organizations: What Great Looks Like,” with Mike Woodard, Strategy Development; “Make More Meetings: Guaranteeing Your Dealership’s Ability to Flourish,” with Kate Kingston, Kingston Training Group; “Professional Services: From Adjacent to Core Business,” with Mitch Morgan, Professional Services Roundtable; and “What is My Dealership Really Worth?” with Jim Kahrs, Prosperity Plus Management Consulting. In addition, BTA’s ProFinance, led by Hey and John Hanson of Strategic Business Associates, was held as a front runner to the event.

The event also provided the opportunity for BTA to recognize long-time volunteer Ronelle Ingram, who served as 2008-09 national president. Ingram also serves as instructor for the association’s “FIX: Cost Management for Service Workshop.” Current BTA President Bill James recognized Ingram for her years of service, announcing that a BTA scholarship would be presented in her honor for the 20102011 school year. At the event, James announced that BTA had made a $1,000 contribution to the BTA Scholarship Foundation in Ingram’s honor.

Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org.

Clockwise from top: John Hanson and John Hey lead the front-runner education program, ProFinance; David Sansenbach of exhibiting sponsor ESP asks an attendee to assist with his company’s prize drawing, one of many held at the event; attendees had several scheduled opportunities to visit with exhibiting sponsors; ProFinance attendees; and presenter Frank Cannata of Marketing Research Consultants.

Attendees had the opportunity to see the Boston Red Sox take on the New York Yankees at Yankee Stadium. 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 | N o v e m b e r 2 0 0 9 | 19

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Building a Help Desk You may already have many of the elements in place by: Mitch Morgan, Professional Services Roundtable

ith the current trends in the industry, along with the impact of a soft economy, many office technology dealerships are seeking revenue growth opportunities. One of the steps that a dealer can implement quickly that offers both revenue enhancement and profit improvement is building a help desk, also known as a call center. A help desk is a place that a user of information technology can contact to get help with a problem. This communication can take many forms, but the most common is inbound telephone calls.

A high-performance help desk should be a profit center, bringing in annuity-based service revenue. This revenue is adjacent to our current business and represents a natural extension to our current operations. The primary drivers of this strategy include: Connectivity support related to MFP devices that are sold. I have clients who are generating tens of thousands of dollars in monthly annuity revenue for connectivity support alone. For several of my clients, the help-desk technicians are the most profitable technicians in their business.

Printer support as an “add on” to your MPS offering.

Many companies roll out an MPS offering as a hardware “break/fix” and a supplies revenue strategy. These dealers are leaving revenue opportunities on the table. In addition, they can differentiate against MPS competitors and truly solve the managed print challenges for IT. IT services. The opportunity for managed IT services can be the icing on the cake for a help desk. The IT services or network services market represents a segment that is growing at a fast pace and is increasingly seen as an attractive business for dealers.

Remote support tools are common in many dealerships.

Tools such as GoToAssist, LogMeIn and Bomgar allow the help-desk personnel to do everything they can do on site for

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connectivity support except hardwarerelated issues. The advantages are reduced service calls and a faster response to the customer. In addition, some dealerships are even using remote capabilities to do initial connectivity installations. The defensive strategy associated with a help desk will allow dealerships to enhance service profit margins and increase the service level with customers.

Technology is a Key Driver Two of the trends that are irreversible and accelerating are the following: Utilization of remote tools and technology to resolve issues. The technology has improved to the point that MFP dealerships can apply technology to “do more with less.” In addition to the commonly used support tools described above, there is a growing set of tools that allow further efficiencies to be built. These strategic tools include monitoring, alert notification, remote assist tools, knowledge bases, scripts and automation.

An equally important trend is the acceptance of IT departments in allowing technology-based tools inside their environments. Many IT departments are encouraging this practice and even include it when they are evaluating service level agreements (SLAs) from their vendors. In short, customers are increasingly evaluating service providers by their capabilities in this area. The trend is increasing for your customers to allow trusted support professionals to access their systems to provide preventative, proactive and incidentbased support.

What is a World-Class Help Desk?

First, let me describe what a world-class help desk is not. It is not a tag team of MFP technicians passing around responsibility for inbound calls. It is not a dispatching operation,

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although a number ... A world-class help of my clients are combining dispatch desk requires careful, with the help desk. It up-front planning for also does not require implementation, as well a huge investment of as policies, procedures time and money. and tasks surrounding Instead, a worldthe help desk. class help desk: Requires careful, up-front planning for implementation, as well as policies, procedures and tasks surrounding the help desk.

Features dedicated personnel with job descriptions and industry certifications. As an example, CompTIA (www.comptia.org), the Help Desk Institute (www.think hdi.com) and the Resource Center for Customer Service Professionals (RCCSP) (www.the-resource-center.com) offer courses and certifications designed for all levels of the helpdesk operation.

Has standards for the call center itself in areas such as internal processes and external service levels. A help desk can achieve independent certification through an internationally recognized support center certification (www.think hdi.com/scc).

Utilizes key metrics and key performance indicators (KPIs) to measure performance and drive improvement.

Common metrics include: call volume, calls per agent, type of call, first-call resolution, cost per call, average talk time, system availability and revenue per help-desk agent to name just a few.

Is constantly developing and enhancing knowledge management capabilities to allow for the best possible interaction between your customers and the help desk.

The reality is a help desk or call center is not likely to achieve all of these characteristics at inception. While it is critical to adopt certain standards, tools and processes from the beginning, most dealerships have many of the elements in place already. As an industry, we certainly have the right customer service orientation and service discipline to be successful. The key is to get started and get started the right way.

In 2001, Mitch Morgan formed the Professional Services division for IKON. Through CEO Focus (www.ceofocus.com), he has been consulting with CEOs on strategy, operations, organizational development and sales since 2005. He formed the Professional Services Roundtable in 2007.

Morgan can be reached at mtmorgan@kc.rr.com or (913) 269-7255.

Build, Buy or Partner?

For many dealers, offering network services capabilities is a natural next step. It can bring a deeper relationship with the customer through managing their IT infrastructure. In addition, when the business is approached in the right way, it can bring annuity-based revenue that contains attractive margins when the business reaches maturity. Some options for entering this lucrative market: Build It Yourself — This is an alternative that dealers choose when they have a strong desire to control the delivery of the service.

The biggest advantage is controlling the customer experience and having a direct line of supervision over the personnel. This alternative brings an investment in a managed services platform (such as N-able or Kaseya), as well as an investment in a professional services automation package (ConnectWise and Autotask are options).

This, combined with hardware infrastructure, represents a sizeable investment for some dealers. The fixed costs associated with dedicated personnel and the hardware/software mean it will take some time to break even on the offering. While the platform is stable and the monitoring tools work well, the ramp up will likely be slower than some other options. According to Brian Chancey, CEO of The Scarlett Group in Jacksonville, Fla. (and a member of the MSP [Managed Services Provider] 100 group of elite providers): “It literally takes months to develop the tools and processes needed to be efficient as a service provider, and even longer to develop the workflow, templates and integration to deliver truly proactive service.”

Acquire a Network Services Company — Some dealers seek to acquire a company that is currently in the network services business. This allows an immediate entry and, hopefully, a customer base. It is important to ensure that the acquisition candidate has built the tools, processes and automation that are traits of a highperformance MSP. According to N-able, less than 15 percent of the network services companies in the United States have fully transitioned to a remote services-led business model. Many are still in a reactive service or a project-based business model. In addition, when reviewing an acquisition, dealers should ensure that the pricing to the customer fits with the revenue and margin requirements that the dealer is seeking. A big portion of the acquisition is the technical capabilities of the personnel, and retention of personnel is a critical aspect of any acquisition of this nature.

Partner with an Existing Managed Services Provider (MSP) — The fastest way to enter the market, with the smallest initial investment, is to partner with an existing MSP that provides these services today. There are a number of companies that provide these services to dealers that mark up the services to the customer. The dealer usually offers the local on-site support, which usually represents 10 to 20 percent of service incidents. The ability to scale up quickly is an advantage and the gross profit margin is positive from the first sale. The reality for dealers is that if they choose to enter this market, partnering will be a fact of life. As an example, if a dealer was planning to offer remote data back-up services, the smart decision would be to utilize an infrastructure and services delivery platform that has already been built. Even the largest MSPs utilize partnering in this manner where it makes sense.

If you choose a partner approach, you can see exactly what the service offering will be for your customer.

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BTA HIGHLIGHTS The following new members joined BTA during the month of September:

Dealer Members Dick Roundtree Copiers, Baton Rouge, LA Laser Technologies Service Inc., Concord, MA Midwest Business Products, Dubuque, IA Netwise Resources, Indianapolis, IN Office Dynamics Inc., Hawthorne, NY TBS/NY, Rochester, NY Town Business Systems, Norwood, MA Service Associate Members b2b sales coach, London, United Kingdom Vendor Associate Members Azerty/A Division of United Stationers, Deerfield, IL DocuLex Inc., Winter Haven, FL For full contact information of these new members, visit www.bta.org.

For the benefit of its dealer members, each month, BTA features two of its Vendor or Service Associate members in this space.

BTA Service Associate member Equipment Data Associates is a provider of market intelligence and UCC filing and purchasing data for the copier/MFP industry. They can provide the detailed purchasing histories of 26,319-plus buyers nationwide. These companies have financed more than 95,971 units of copier/ MFP equipment since 2008. A customized summary of this information is available that shows the complete purchasing history of financed equipment for a specific buyer. This information also identifies brand loyalty, buying cycles and type and age of equipment. www.edadata.com

Sentry Insurance Member Benefit Sentry Insurance is one of the nation’s leading insurers of distributors and retailers. The company provides a full line of business insurance for BTA members. Sentry’s experience in the copier/ MFP industry means it knows how to insure your business from the ground up, with property, casualty, retirement and group insurance benefits. To learn more or to get a quote, call Randy Dombrowski at (800) 624-8369 ext.

77, e-mail randy.dombrowski@sentry.com or visit www.bta.org and click on “Member Benefits” then “Insurance Services” in the lefthand column of the home page.

For more information on BTA member benefits, visit www.bta.org.

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BTA Vendor Associate member FMAudit is a provider of remote meter reading and managed print services solutions and infrastructure. Since 1998, FMAudit has been providing tools for cost-recovery, including Web-based meter collection, nonnetworked device meter collection, total cost of ownership, supply-triggered delivery and twoway ERP synchronization. In addition to these offerings, FMAudit continues to develop solutions for the office technology industry to keep your business moving forward. www.fmaudit.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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COURTS & CAPITOLS

Retaliate & You Pay Proceed carefully when taking an employment action by: Robert C. Goldberg, General Counsel for the Business Technology Association

he Legal Hotline rings and the member on the other end wishes to know if he (or she) can terminate an employee who is out with a workers’ compensation claim. The facts are always similar. The employee has not been doing a great job and there have been management discussions regarding termination, but nothing has been done. In the meantime, the employee injured himself while at work and will be out for a month. Can we terminate him now in light of our previous dissatisfaction?

My inquiry seeks a review of the disciplinary action(s) that have been taken regarding the employee. Typically there are none. Although I have no doubt the employee is not meeting expectations, there is no record to support his shortcomings. Meanwhile, the employee is in a “protected class” and any employment decision must be examined in that light.

There has been a dramatic increase in the number of cases presented to the Equal Employment Opportunity Commission (EEOC) claiming retaliation. In the last year, retaliation claims increased 23 percent. Retaliation claims represented more than one-third of all claims filed with the EEOC. A retaliation claim is often easier to establish than a discrimination claim.

Recently, a female employee filed a complaint with the EEOC alleging discrimination due to unequal access to bathroom facilities for female employees. Subsequently, the complaining employee was terminated and she added retaliation to her complaint with the EEOC. The EEOC denied the employee’s claim regarding access to the restrooms, but upheld her retaliation complaint.

The EEOC has indicated that eliminating retaliation is a top priority. If employees feel they cannot file initial claims of discrimination due to potential retaliation, then matters will not be brought to the EEOC. Employers must recognize that once an employee takes an action permitted by statute, he is no longer a regular employee, but now has entered a “protected class.” Thus, the employee who filed a workers’ compensation claim is no longer an “at will” employee that can be terminated

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with or without cause, and any negative action must be fully documented and unrelated to the claim. Dissatisfaction that occurred prior to the worker’s injury that was not acted upon cannot be used to terminate the employee after the accident. If the employee were to be terminated, the basis would have to be documented and unrelated to the injury.

Terminated employees have filed a significant number of retaliation claims during the recession. No one likes being terminated and those who have been laid off are looking for a reason why, other than economics or themselves. Employees review their employment history and recall any instance where they complained of a specific practice and immediately conclude that it was the “real” basis for their termination. So how does a dealer protect himself?

As a general policy, any employee complaints should be required in writing. A crude joke, followed by a suggestion that it could constitute sexual harassment, should not constitute a legitimate complaint unless it is submitted in writing. Your Employee Policy and Procedure Manual should set out the exact procedure to be followed in the event of a discrimination (or any) complaint. With this practice, an oral comment cannot form the basis of an actual complaint to management. If the conduct was so offensive, the simple question in defending a complaint would be: “Why wasn’t the complaint submitted to management in writing?” The failure to follow policy and do so clearly affects the credibility of the complaint.

You may further protect yourself by proceeding carefully when taking an employment action in regard to an employee who has presented a complaint or filed a claim regarding his employment. In this instance, it is essential that an independent basis forms the grounds for the employment action. Of course, if you are unsure as to how to proceed, contact the Legal Hotline.

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 | N o v e m b e r 2 0 0 9 | 23

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PRINCIPAL ISSUES

Staff ‘Hats’ How effective are your employees? by: Jim Kahrs, Prosperity Plus Management Consulting Inc.

n my travels around the country I am often asked, “How can I get my employees to do what they’re supposed to do?” Many a dealer has felt the frustration of uncovering a problem in the business that should have been handled by an employee in the normal course of business. I hear explanations like, “Well, that’s how things are today. People really don’t care” or “People are just lazy.” The problem with these explanations is that they do not open the door to handling the problem. How do we correct people who are not caring or who are being lazy? In reality, this is a ver y difficult thing to tackle as a generality pertaining to all people. We can, however, look at this problem on an employeeby-employee basis.

A major tool in the Hubbard Management System is staff “hats.” As defined in the Hubbard Management System, “hat” is “a term used to describe the write-ups, check sheets and packs that outline the purposes, know-how and duties of a post.” The term comes from the days of rail travel where each of the workers on a train could be identified by the hat they wore; the engineer, conductor, porter, etc., each wore a distinctly different hat. Though many dealerships have and use job descriptions, few of them contain all of the components called for in a “hat.”

In today’s society, most people operate with the belief and understanding that they have a “job.” Most tend to lump all of the duties they perform into this nebulous concept called their “job,” often missing the fact that this “job” is actually the combination of several different hats. For example, in a dealership it is common for one person to wear the receptionist hat as well as the cash application hat, applying customer payments to their accounts. These are clearly two different hats, yet they can be confused. When the phones get really busy, the receptionist has

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no time to get the payments applied and the result is no deposit that day. The employee feels that he (or she) was busy all day and did the “job,” yet there was no production from one of the hats and that “job” went completely undone.

Another common example is for the sales manager to also wear the marketing manager hat. In this case, the outcome is typically little or no marketing being done as the demands of the sales team are more immediate and potentially more rewarding in the short term.

In both of these examples, you have an employee with two very important hats allowing one of them to go with little or no production and thus little or no results. These scenarios play out in dealerships all over the country on a daily basis.

Employees, not understanding the need to separate out their hats and get production under each one, leave large areas of the business uncovered.

So, how do you correct this? In applying the hat concept as outlined in the Hubbard Management System, you need to have nine components clearly outlined and understood for each hat or post in your company. I will list each of them with a brief description.

(A) The purpose of the post: Each hat must have a writeup of the purpose of the post. All too often employees go through the motions of their post with little understanding of why they are doing what they are doing. For example, I asked a technician why he had to document all of the parts he used and where. His response was, “So the owner knows I’m not stealing the parts.” He had no concept of how parts usage data was tracked to report profitability of contracts and no real understanding that a big part of the purpose of his job was to fix the systems in the field as profitably as possible. He replied by saying, “Wait a minute, I’m supposed to be helping us

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pletion. For example, cash application remain profitable? In that case we should would receive checks, be expected to post be doing … ” He went on to list five things By following this process them to customers’ accounts and then that he felt were wasting money in the and creating hats in your route them to accounting for posting to service department and how they could be dealership ... you will the bank account and deposit in the bank. corrected. (By the way, three of those sugcreate an environment (H) The product or products of the gestions were great.) Employees who are where your staff members post: Every post must have one or more not given a clear understanding of the understand what is things that it produces — the actual purpose of their post are very limited. expected of them ... product of the post. The hat must contain With a clear understanding of the purpose a clear write-up of the product(s). For of the post, employees can now think on their feet and make suggestions as to how they can better example, the product of the sales post is closed sales. For a achieve the purpose rather than blindly following the path service technician, it is completed service calls. For accounts receivable, it is funds collected, etc. Like the purpose listed laid out by their predecessors.

(B) Its relative position on the Organizing Board: The earlier, it is vital that each employee know what products(s) Organizing Board is another tool in the Hubbard Manage- are expected to be produced from each hat he wears.

(I) The statistics of the post: Statistics measure the level ment System. It is a document that lays out all of the posts and functions of the company. All functions are aligned in of production called for in item H. Mirroring the products seven divisions of the company following their natural listed above, the statistics for a sales rep would include prodsequence. Having each person know how their hats relate to ucts sold and things like the number of appointments. For a technician, they would include the number of calls completed the others is also critical to success.

(C) A write-up of the post: Each post or hat must have a and probably first-call effectiveness. For accounts receivable, write-up outlining the basics included here. This write-up is you would have things like dollars collected and the number best done by someone holding the post with input from his of collection calls made.

By following this process and creating hats in your dealermanager and other people who interact with the post. Parts of this write-up are what most dealerships have in place as their ship that contain the nine items above, you will create an current job descriptions. However, I have seen far too many environment where your staff members understand what is that omit key components like those listed here as items A, B, expected of them and have the knowledge to really think on their feet. Each employee is empowered with the data and F, H and I. (D) A checksheet of all policies, manuals, procedures, tools to truly get the job done and to understand what “jobs” etc., for the post: Each post will have its own key policies and he is doing. The confusion created by assigning dissimilar procedures as well as specific documents and manuals that are functions to one employee can be sorted out, leading to proused regularly. These should be included in the hat materials duction in all areas. I have seen miraculous changes happen in along with a checksheet that tells the employee in what order dealerships almost overnight. The people who used to be catto study them, and provides a process for him to report what he egorized as “not caring” or “just lazy” all of a sudden wake up has done. This makes the initial training phase — what is and really get it into gear.

So, I will close with a challenge: Go back and compare your referred to as instant “hatting” — a simple and quick process.

(E) A full pack of written materials: Having all of the nec- current job descriptions to the list above and see if you are covessary written materials in one pack, called a “hat pack,” makes ering all of the points. If not, work out a plan to get them all in it easy for the employee and his manager to review as needed place and see what happens. You will be amazed at the results you can get. Do not hesitate to call on us if you need help. and it keeps all pertinent information at their fingertips.

(F) A copy of the Organizing Board: Since the Organizing Jim Kahrs is the founder and president of Prosperity Plus Board is essentially the roadmap of the organization, listing Management Consulting Inc. Prosperity Plus all functions and who handles each one, it is important that works with companies in the office systems each hat pack contain a current copy. industry building revenue and profitability and (G) A flow chart for the post: This flow chart illustrates improving organization structure. Kahrs can be what is received by the post, what changes are expected to be reached at (631) 382-7762 or made by the post and where they are to be routed upon comjkahrs@prosperityplus.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 | N o v e m b e r 2 0 0 9 | 25

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PRINCIPAL ISSUES

‘Well-Armed’ Dealers It is a great time to be in the copier/MFP business by: Mike Stramaglio, MWA Intelligence Inc.

hope I caught your attention with my headline and subhead. Candidly, some folks would argue that this is the most challenging time we have ever seen in our lifetime and I would agree with them.

As I write this, the general business community at large is struggling with unprecedented unemployment, capital market constraints, R&D limitations and downward sales trends. That is not a pretty picture for many folks.

At the risk of sounding overly dramatic, the copier/MFP/printer marketplace is facing many challenges more specific to our channel. Certainly, capital markets are tight and the leasing business — which is the backbone of our formula — is hamstrung, with changing business models and product migration. Dealers are watching many of their end users postpone decisions or go out of business. OEMs are facing the most difficult of circumstances as they attempt to deliver great new products, grow distribution and stabilize the various acquisitions that have been made in the past year or so. We need healthy OEMs and I respect the challenges they face.

So this is the “not-so-good news” for the marketplace. Now let us look at the positive side of our current and mid-term prospects. Today, the dealer community, OEMs and end users have a growing list of productivity tools, asset management solutions and managed print services (MPS) available to them.

More than ever before, end users and copier/MFP distributors/dealers are in harmony with the types of products, services and solutions that must be delivered to a demanding customer. Solutions are now available that effectively provide everything from new “automation” of metering to consumable notification, inventory management, service alerts and fleet management tools that enable cost-effective management of small businesses to the largest major accounts.

Large numbers of dealers are quickly moving to a full utilization of solutions that address everything from automation of service departments to the automation of their sales forces, including proposal generation, MPS tool kits and automated

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print assessments. All of these technologies are no longer new and are now enthusiastically embraced and oftentimes demanded by the end-user client, which allows for easier migration for the dealer community.

As a community that serves the office equipment space, we are fortunate to have many software and hardware companies that have invested millions of dollars in solutions that have become an integral part of today’s, as well as tomorrow’s, workplace.

Yes, the marketplace is challenged in many new ways, but the dealer community is better armed than ever and will be even better equipped in the future. New applications will be coming to you soon and these applications will be very productive, highly imaginative and will leverage the full scope of service, printing, fleet management, wireless applications and other exciting developments.

It is amazing to me how quickly things change in combination with the things that remain important. Consider, if you will, the uncompromising need for great customer support and service. Then add to that the usage of new technologies such as real-time blogs, Twitter, LinkedIn, Facebook and other social networking and communication methods. For us baby boomers, it is difficult to imagine how these tools will contribute, but rest assured they will.

As a long-time industry veteran, I offer my respect and appreciation to all who make things happen in our business: the dealers, software companies, OEMs, partners and the Business Technology Association. These are amazing times for amazing people.

Mike Stramaglio is president and CEO of MWA Intelligence Inc. (MWAi), which provides M2M (machine-to-machine) and M2P (machine-to-people) solutions to the office technology industry.

He has more than 30 years experience in the industry, previously serving at such companies as Minolta, Ricoh and Hitachi Koki.

Stramaglio can be reached at mike.stramaglio@mwaintel.com.

Visit www.mwaintel.com.

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PRINCIPAL ISSUES

Office Document Strategy MPS primary focus of recent InfoTrends conference by: Brent Hoskins, Office Technology Magazine

ocusing on major trends in the market and the resulting opportunities and challenges for manufacturers and dealers, InfoTrends (www.infotrends.com), a market research firm based in Weymouth, Mass., recently hosted its annual Office Document Strategy Conference. The Sept. 30Oct. 1 event was held at the Hyatt Harborside in Boston, Mass.

Much of the conference focused on the predominant trends in the industry, including the rise of managed print services (MPS), which was the topic of seven of the 19 education sessions that were offered. They ranged from “Defining the Best MPS Approach for Your Business” to “The Future of Managed Print Services.” The topic was also addressed in the opening session, “InfoTrends State & Future of the Industry,” presented by several of the research firm’s lead analysts.

“The big trend today is MPS,” said Randy Dazo, director of both the Network Document Solutions and the Professional & Managed Print Services advisory services at InfoTrends, in the opening session. “This was the year that everybody talked about MPS and vendors came out with strategies announcing them to their dealers and the community.”

InfoTrends analysts see the rise of MPS as the result of a collision of current trends in hardware, supplies, solutions and services, said Dazo. “And the economy has wrapped around everything to help drive the message of managed print services.”

The primary manifestation of MPS, said Dazo, is the current transition from a focus on unit placements to a focus on capturing pages. “Who would have thought 10 years ago that vendors would actually be selling the supplies of other vendors?” he asked. “So, it is really not about just capturing the devices that are out there, it’s about capturing pages — not only your customers’ pages, but your competitors’ pages.”

In his portion of the opening session, John Shane, director of the U.S. Communication Supplies advisory service for InfoTrends, noted that while capturing pages is the focus of MPS, there are now fewer pages output in the workplace, resulting primarily from the pressures of the current recession.

Other relatively recent recessions — in 1991 and 2001 — had little impact on page volumes in the workplace, he said. “But this one is different,” he explained. “We have seen a decline in volume in the last two years — a decline of 9 percent from the peak in 2007 to now in 2009.”

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While he expects to see some growth in page volume as the economy improves, Shane said he does not expect a return to the peak volume of 2007 within InfoTrends’ current forecast period, through 2013. “I would have to say that the largest threat to the supplies market is MPS,” he said. “The goal is to find ways to save money and that means less print. It also means increasing duplex rates.

“If it were not for MPS, we would be more bullish on our supplies forecast,” added Shane. “Now we do have MPS. It is a reality. And it is causing, we believe, the supplies market to not grow like it might have otherwise.”

While it is now a reality in the industry, Dazo did note that an exact definition of MPS sometimes seems a bit elusive.

“There are so many different ways that people are defining the market,” he said. “Is it a professional service? Is it a different form of print management?”

Aligning MPS with professional services, Dazo shared with attendees InfoTrends’ definition: “Professional and managed print services are services-led offerings that help companies solve their pain points, typically around the management, costs and/or document processes, by delivering continuous improvements, particularly around an organization’s print, copy and document environments.”

Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org.

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MPS STRATEGIES

No MPS ‘Silver Bullet’ Instead, hard work is the key to success by: Ed Carroll, Strategy Development

s I work with clients or conduct workshops on managed print services (MPS), inevitably the question comes up: “How do we simplify the sales process and make it easier for professionals or businesses focused on this area?” There is a belief out there that there is a software package that has all the answers to an effective managed print services program — one that will streamline the process, uncover the costs, calculate true output costs for any business, identify and recommend ways to improve profitability (or reduce the customer’s cost), recommend ways to improve fleet administration or even identify the right prospect, contact and reasons why MPS is a valuable option for him (or her).

Of course, there is more to the process than what I just covered. Those who are engaged in MPS can appreciate the complexity of identifying this type of software, but everyone would welcome such a solution. The fact is, there is no such product and I can safely say there never will be. Yes, there are many tools (most of which are software products) that are available to assist with the process, but there are none that address all aspects of a successful MPS program. In fact, from my point of view, there are none that will substantially address (better than 90 percent of the time) any portion of the MPS sales process. There are no silver bullets in an effective MPS program.

By now I am sure I have offended some of the solutions providers who provide the channel with tools to support their MPS programs, and they may very well look to dispute my claim. I am not saying the tools available are not good tools; they are and many will help certain parts of your process be more efficient. For example, take the data collection tools (DCA) that are available. The claims made by most, if not all, are that the solution will collect all the print volumes for the fleet of printers you are assessing. This is especially true if the fleet is 100 percent networked and there is no resistance from the prospect to deploy the DCA. When prospects have local devices, when they have standalone fax machines or when they will not allow deployment of the DCA (very seldom for good reason), what are you to do? Ignore the local devices and fax machines or move on to the next opportunity if you cannot

A

deploy the DCA? I hope not. If this is your approach, then you are severely limiting the profitability of the program or the number of opportunities to pursue.

The fact is that there are many reasons why D CA technolog y will not be 100 percent effective. Does this mean you should not use one with your program?

Absolutely not. You should. They are a valuable part of a successful MPS program, but they are not your silver bullet for data collection.

Another example is proposal software. Is there proposal software that will enable you to calculate all costs associated with completing the results of an assessment, all the time, with every opportunity you are pursuing? No, and once again, there never will be.

Most proposal software that I am familiar with will help present the details of your findings, but will not effectively capture those details for you all the time. For example, they can be used to calculate the cost per page for an opportunity, but even this involves either accepting the assumptions made by the developers of the software as to what method is the most appropriate way to calculate a cost per page, or you will need to input the criteria you will want to follow. Once again, this might not hold true for all opportunities you are pursuing.

So, is the outcome not to use proposal tools for your MPS program? Probably not.

The reason for being cautious in this area is that when you become dependent on software to present your business case, you accept the methods used by this software as being valid for your prospect’s business case. If this does not meet the profile of his operations, or if you do not fully understand the methods used to determine the costs and you present the business case to the prospect, what are you going to do when he challenges the details? Wing it, state it uses industry averages or tell him you need to look into it and get back to him? If so, then you have lost all credibility and the chances of closing this opportunity are slim to none.

From my experience, I see too many companies using proposal software and, as a result, have no clue as to the details of what is being presented. You are not presenting an equipment 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 | N o v e m b e r 2 0 0 9 | 29

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transaction that focuses on a lease payThere are no silver bullets — not overall The opportunities in ment and the basic features of the equipand not in any one step of the sales cycle. managed print services ment. MPS is a complex sale and you must You must focus on the specifics. It is know the details in order to be successful tedious, it involves rolling up your sleeves are tremendous; it is the and be in a position to present a conand getting into the details, and it involves hottest growth area in vincing business case as to the reasons being inquisitive and logical. Without a the document imaging your prospect should move forward with complete understanding of the importance industry today, and will your findings. of particulars and the willingness to focus continue to be ...

The opportunities in managed print on them, the chance of success in MPS is services are tremendous; it is the hottest only moderate. growth area in the document imaging industry today, and will Use the tools, but do not be overly dependent on them. Seek continue to be for years to come. You know this if you are help, but understand the motives or experience of the support already pursuing MPS opportunities and you believe this if you you are seeking. Many say they are involved with MPS, but few are just beginning to move in this direction. It is also a very dif- have the overall knowledge, understanding or experience to be ferent sale than most are experienced with. successful. Looking for shortcuts, that silver bullet, is not your To be effective, you need to focus your energy on the details; answer. Nor is luck. It is hard work.

Ed Carroll is a principal of Strategy Development, an advanced you need to understand the important elements of the busimanagement consulting firm engaged in sales leadership, ness case; you need to uncover operational costs; you need to managed print services, operational efficiency, service understand business processes; you need the ability to be a productivity and business planning. Clients good project manager; you need to be good at analysis; and include equipment manufacturers and resellers you need good initiative and strong communications skills. focused on equipment and service in the The tools available are tools — they can assist, in limited situdocument and imaging industry throughout ations they can streamline, they can improve the look of the North America. Carroll can be reached at (703) materials, they can enhance the perception of you being an 722-2973 or carroll@strategydevelopment.org. expert in this field, but they cannot do the process for you.

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