November 2011 Office Technology by Business Technology Association

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CONTENTS Volume 18 • No. 5

FEATURE ARTICLES 10

Remote Monitoring Solutions Taking dealerships to a whole new level

P R I N C I PA L I S S U E S Ahead of the Curve Leadership competencies required to sustain change

by Brent Hoskins Office Technology Magazine

Dealers are increasingly starting to change the way they do business. They are driven by the goals of increasing revenues, enhancing their levels of service and strengthening their bonds with customers. One tool for achieving these goals is a remote monitoring solution.

by Joanne L. Smikle www.smiklespeaks.com

While some refuse to acknowledge the need to change their business models, smart business owners know that it is far better to be proactive.

Nuance’s Expanding Reach Executive highlights eCopy, Equitrac acquisitions

Muratec’s Advance Dealer conference held Sept. 14-16

by Brent Hoskins Office Technology Magazine

On Oct. 6, Nuance executives hosted industry analysts and editors for an “Analyst Summit” at the company’s corporate headquarters in Burlington, Mass.

by Brent Hoskins Office Technology Magazine

Focused on reaffirming its commitment to supporting dealers, Muratec America Inc. hosted its 2011 National Dealer Conference Sept. 14-16.

Grand Slam 2011 BTA East hosts district event in White Plains, N.Y.

Internal Leasing Consider setting up your own program

by Russ Bennett Bennett Office Technologies

by Brent Hoskins Office Technology Magazine

Internal leasing is not for everyone, but I would encourage other dealers to consider it before they send that contract off to a third party.

BTA East recently hosted its fourth annual Grand Slam event, held Sept. 22-23 at the RitzCarlton in White Plains, N.Y.

Time Management Key steps to turning chaos into high-payoff results

Building Team Unity Getting your employees on the same page

by Tim Votapka PPMC Inc.

by Melissa D. Whitaker Melissa Whitaker International

Have you had a moment when someone in the office did something that really did not make sense? What impact did this have on you and your staff ?

There are five steps that will help turn chaos at your dealership into results through effective time management.

COURTS & CAPITOLS 22

Employee Misclassification IRS program provides a means to compliance by Robert C. Goldberg BTA General Counsel

A recurring inquiry to the BTA Legal Hotline is the question of proper classification of workers as either employees or independent contractors.

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

• BTA Highlights

Executive Director’s Page

BTA President’s Message

Advertiser Index

4 | w w w. o f f i c e t e c h n o l o g y m ag.com | November 2011

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EXECUTIVE DIRECTOR’S PAGE

Have You Seen These Member Benefits?

ithout doing some research, I could not tell you the last time the Business Technology Association (BTA) raised its membership dues. A one-year membership for dealers has been $430 for many years. I can, however, tell you about the last time BTA added a member benefit. In fact, I could go down a list of new benefits that have been added in recent years. BTA is focused on giving more value to its dealer members, not on receiving more money from them. While BTA may be busy adding benefit programs, I know dealers are busy as well and sometimes miss seeing details on BTA’s many benefits. So, as I have done from time to time in this space, I would like to draw your attention to three of our most recent additions, starting with our newest member benefit — the BTA WellCard Health Discount Card. Given the high cost of insurance premiums, many workers today may find themselves uninsured or underinsured. There are also those new employees who have not yet joined their employers’ insurance programs. With these thoughts in mind, the WellCard may be a good fit for your dealership. It provides an easy way to help employees and their families with prescription drug needs and medical visits. Among the benefits the WellCard provides: Instant, average savings of up to 65 percent on drug prices and up to 25 percent on medical visits; access to a network of more than 59,000 pharmacies and 410,000 physicians; and an exclusive mail-order service that will save an average of 20 percent on the regular price of prescription drugs. In addition, the WellCard automatically includes all family members.

Next among BTA’s newest member benefits is our Ask the Analyst program, offered to member dealers in partnership with InfoTrends, the market research firm. For years, BTA has received inquiries that are best answered by an industry analyst. These inquiries led to the partnership with InfoTrends. The program is easy. All you have to do is submit your questions via email to an e-mail address provided on the BTA website. The reply is sent directly to you from the responding analyst. In addition, all past questions and answers are posted on the BTA website as a resource to members. To give you a better sense of how this benefit is being used, here are a couple of past questions asked by members: “What is the industry average for contract turnover on an annual basis for service-only contracts and lease contracts?” and “What is the projected CAGR for the next three years in MFP placements and click volumes associated with these devices?” You can read the answers to these and other questions on BTA’s website. Finally, have you had the opportunity to review the list of special offers for BTA members in the BTA Marketplace? This member benefit provides BTA member dealers with the opportunity to take advantage of discounts and value-added offerings from participating BTA Vendor Associate members. Here is one example of the type of specials listed in the BTA Marketplace: “DocuWare will waive the annual Partner Support Fee for the first year for each BTA member company that signs on as an Authorized DocuWare Partner (ADP).” I encourage you to visit the BTA website for more information on these and other member benefits. You will need your member login and password to see the full details. Visit www.bta.org/MemberBenefits.  — 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 Russ Bennett, Bennett Office Technologies www.bennettoffice.com Robert C. Goldberg, General Counsel Business Technology Association Joanne L. Smikle www.smiklespeaks.com Tim Votapka, Prosperity Plus Management Consulting Inc. www.prosperityplus.com Melissa D. Whitaker, Melissa Whitaker International www.melissawhitakerintl.com

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership & Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Creatas Images, Hemera, iStockphoto, monkeybusinessimages. Cover created by Bruce Quade, Brand X Studio. ©2011 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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Work With a Partner, Not Just a Distributor

To Muratec, You’re More Than a “Ship-to” Location You’re a business partner. We work closely with our dealers, big and small, to develop market strategies, participate on sales calls, create targeted marketing approaches and assist in growing their businesses. We’ve created turnkey programs to assist dealers in transforming their hardware-centric selling approach into document solutions sales, thus increasing product margins without altering their structure or requiring significant investments.

Recognized for Excellence The Business Technology Association (BTA) has named Muratec the “Top Overall Performance – Secondary Manufacturer” based on the results of their surveys of independent office equipment dealers. To summarize the survey results, we’re the easiest company to do business with.

Ready to Get Started? Contact your Muratec Area Sales Manager to schedule a no-obligation product demonstration and benefits review in your office, or contact 469.429.3481 or www.muratec.com for more information.

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BTA PRESIDENT’S MESSAGE 2011-2012 Board of Directors

As President, I Am Honored & Humbled

n Oct. 21-22, I had the privilege of attending BTA Southeast’s Fall Colors Retreat in Waynesville, N.C. It was a great event with a great group of people. In the opening round-table discussion, I saw dealer attendees provide insight and guidance to one another. In the education sessions, I saw them eager to continue to learn from others. Throughout the event, I saw them visiting, remembering the old days, but looking to the days ahead. The BTA Southeast leadership team gave me the opportunity to briefly address the attendees. I was looking out at the group of dealers who had gathered, recalling the long history of our industry and the many visionary entrepreneurs who have been and continue to be a part of it. I was also thinking of my role as the 77th national president of what is today the Business Technology Association. I told the group that two words came to mind — honored and humbled. I am honored to be leading an association with such a rich history dating back to 1926. I am also honored to be a representative of an industry that, at its roots, formed the foundation upon which business offices across our country were built and operate today. But I am also humbled. I was humbled that day, addressing a room of people with extensive industry experience and wisdom. I remain humbled when I think about the many dealers through the years who moved this industry forward through their volunteerism in our association. I share here as I shared in Waynesville — we owe a special thank you to the National Office Machine Dealers Association, now BTA. We also owe thanks to the many men and women who have served as volunteers

throughout the association’s history at the local, district and national levels. Collectively, without their leadership, perseverance and vision, we would not be where we are today as an association or an industry. My time before the attendees in Waynesville gave me the opportunity to thank two of these individuals from BTA Southeast who were in attendance at the retreat — Bill James from WJS Enterprises in Metairie, La., and Dan Hayes from Purcell’s in Campbellsville, Ky. Both are past national BTA presidents. We have much to be proud of as dealers. Office technology drives much of the way people work and operate every day. It is incredible when you consider how far the technology has advanced through the years. Today, it plays a vital role in daily business communication and efficiency in the workplace. From the beginning, dealers have played an important role — bringing the technology of the day to so many people. As I stated in Waynesville, our industry, whether looking back to its beginnings or looking at the contributions all of us make today, collectively there are some common attributes that have defined us in the past and define us today — determination, excellence, fortitude and innovation. Collectively, these attributes characterize a work ethic that has helped us to persevere. My hope as we move forward as an industry and as an association is to harness the synergy, passion and imagination that was apparent not only among the Fall Colors Retreat attendees, but within the dealer channel at large. Collectively, we can continue to achieve and celebrate great accomplishments in the years ahead. Thank you for allowing me the opportunity to serve as your national president during this 2011-12 year. It is more of an honor than I can express in words.  — Tom Ouellette

President Tom Ouellette Budget Document Technology 251 Goddard Road Lewiston, ME 04240 touellette@bdtme.com President-Elect Terence Chapman Business Electronics Corp. 219 Oxmoor Circle Birmingham, AL 35209 tchapman@businesselectronics.com Vice President Todd J. Fitzsimons Network Imaging LLC 122 Spring St. Southington, CT 06489 tjfitzsimons@ni-ct.com BTA East Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA Mid-America Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA Southeast Jerry Jackson All South Copiers Inc. 3610 Kennesaw N. Industrial Parkway., Ste. D Kennesaw, GA 30144 jj@ascopiers.com BTA West Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle, Ste. E Irvine, CA 92614 ronellei@msn.com Ex-Officio/Immediate Past President Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 rjanecek@burtronics.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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Remote Monitoring Solutions Taking dealerships to a whole new level by: Brent Hoskins, Office Technology Magazine

ith the rise of managed print services (MPS) and, now, more broadly, managed services, coupled with the decline of hardware margins and product differentiation, dealers are increasingly starting to change the way they do business. They are driven by the goals of increasing revenues, improving efficiencies, enhancing their levels of service and strengthening their bonds with customers. One tool for achieving these goals is a remote monitoring solution — the use of technology to help manage the dealership’s MIF (machines in field). The technological capabilities are nothing new, although they are no doubt improving. Many dealers now collect meter clicks remotely. Oftentimes, they receive automatic service and supply alerts — such as an indication of low-toner levels — as well. However, the scope of remote data collection and device monitoring is continuing to advance. Might the day arrive when the vast majority of dealerships embrace the use of the most feature-rich remote monitoring solutions as a standard business practice? If there is a sweeping transformation on the horizon, it is some distance away. “Recently, we collected information that would suggest that only 30 percent of the dealer population is actively managing their fleets through technology to some degree,” says Mike Stramaglio, president and CEO of MWA Intelligence, a provider of M2M (machine-to-machine) and M2P (machine-to-people) solutions. “The other 70 percent are manual for the most part. They are not making the investments that will allow them to avoid [service] calls, create better cost recovery or manage their head count or expenses as well as they should.” The problems inherent to the current processes, such as the collection of meter counts by phone, or even fax, persist in many dealerships, Stramaglio says. “There are still a lot of manual processes,” he explains. “The weaknesses are pretty diverse — very head-count intense, too many errors in billing, too many inabilities in applying technology.” Stramaglio advocates the elimination of inefficient

manual processes through the use of technology to remotely manage machines and the dealership personnel responsible for the service and support of those machines. “We ensure, on the hardware side, the ability to facilitate remote diagnostics and remote fix, remote management of hardware, metering and inventory management,” he explains, noting that MWAi’s M2M and M2P solutions are fully integrated with the dealership’s ERP software. “On the people side, it is about managing car stock and optimizing the number of service calls in a day [in part, through the use of GPS mapping and routing]. So, our mission is to ensure that the enterprise is cost effective. We deliver software for managing people, machines and inventory seamlessly, accurately and timely.” To some, the transition to the use of monitoring technology to help manage MFPs, printers and service technicians may sound like a tool for eliminating personnel. That is not the focus, Stramaglio says. “Our premise is never to eliminate people; it is to provision people,” he says. “The dealership principal then has a chance to say, for example, ‘Now that I have this technology, I can redirect some of these people and grow my MPS business.’ So, our premise is never to take people out of the company; it is to manage them more cost effectively, to improve the bottom line and to redirect.” Similarly, Darrell Leven, vice president of sales and marketing for FMAudit, states that reducing personnel is not always the focus of the implementation of his company’s remote meter reading and “supplies-triggered marketing” solutions. Instead, he says, the focus is on the improvement in operating efficiencies, automating supply and service processes, and increasing revenues. “You are taking keystrokes out of the game,” he says, referencing the time-saving benefits. “That is the immediate impact when using our solutions. In fact, the further the integration of FMAudit, not just for meters, but also into the back room for supplies and service, the more keystrokes you can remove.” While most dealers’ earliest recollections of FMAudit

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may be its USB key for onoutput devices, many dealsite print assessments, the erships may ultimately pur“Today, there is an influx company’s product portfolio sue the remote monitoring of copier dealers, supply today includes tools for the and management of the enddealers and IT VARs in the remote collection of meter user’s IT infrastructure as same space. Everybody is counts and for service and well. Mike Cullen, vice presencroaching on everybody’s supply alert filtering. So, for ident of sales for N-able example, with FMAudit, a Technologies, has already base. So, the key factor today 20-percent toner level on a seen this migration in the is the software that links the high-volume device could IT industry. “Managed sercustomer to your dealership.” be set up to generate an auvices is a natural extension — Darrell Leven tomatic notification to the of the relationship that FMAudit dealership, while a low-voldealers have with their cusume device may not genertomers already,” he says. “It ate a notification until a 10-percent toner level occurs. is also a natural extension of their services.” In addition, FMAudit can monitor toner levels to faciliN-able, with its N-central software, is in the business of tate customer-generated supplies replenishment for devices providing the means to remotely monitor, manage and opnot under an MPS contract. This feature allows for the au- timize IP-enabled devices and IT infrastructure. The goal, tomatic generation of an e-mail to the customer indicating Cullen says, is to reduce IT support costs, improve network the low toner level, which provides a link to the dealership’s performance and increase productivity. “We can virtually online e-commerce site for toner sales and fulfillment, Lev- manage anything with an IP address,” he says. “So, typically, en says. “So, theoretically,” he says, “you can gain additional that is servers, routers, switches, copier/printer functionalrevenue from competitive placements without having sales ity and voice-over-IP functionality.” rep time involved in the transaction.” While most of N-able’s resellers are IT VARs serving end Leven emphasizes another key benefit of remotely moni- users as managed service providers (MSPs), a growing numtoring devices with FMAudit solutions that dealers wel- ber of traditional copier/MFP dealers are also utilizing Ncome — the ability for the dealership and its end users to central, says Cullen. “There have always been a number of share data collected from the daily usage of devices for fleet copier dealers within the managed services space,” he says, management and optimization. “The customer can have ac- again emphasizing the natural fit for dealers. “It is selling to cess to the information as well, so the dealership and the companies that fit the profile served by copier dealerships.” customer can share in the assessment of the data,” Leven That profile, of course, is the small-to-mid-sized business. says. “This provides a link between the dealership and the “That is the sweet spot,” Cullen says. “The average IT MSP customer; the customer sees the dealership as a resource goes after a sub-60-seat customer. So, it is the same comand partner in becoming more efficient.” pany that copier dealerships are providing services to now. In today’s competitive environment, the use of solutions That is why we are seeing a number of dealers enter the marlike those from FMAudit is an important defensive strat- ket — they already have a relationship with that customer.” egy, Leven says. “In other words, whoever gets the software Cullen shares a key observation of dealers that further installed first wins,” he says. “Today, there is an influx of emphasizes why they are well-positioned to optimize the copier dealers, supply dealers and IT VARs in the same managed services opportunity — through remote IT monispace. Everybody is encroaching on everybody’s base. So, toring and management. “Copier dealers have a tremendous the key factor today is the software that links the customer ability to sell,” he says. “The first thing they would do would to your dealership.” be to take their existing customer relationships and extend Leven’s comment points to another opportunity for deal- them into managed services — so, incremental business ers. The domain of the IT VAR, in particular, is increasingly from current accounts. But beyond that, copier dealers have seen as a key growth area for dealers. “Some people say that a tremendous ability to pursue and secure new customers, the dealer community should feel threatened by the encroach- which is an area where many smaller break/fix-focused ment of the IT VAR community,” Stramaglio says. “Frankly, I shops struggle.” take a totally different posture on that. I think that dealers A look at the fixed managed services fees typically charged should see the IT infrastructure as a welcome and refreshing by an MSP for unconditional support gives a sense of the size opportunity that they are better empowered to manage.” of the opportunity. “Those services are generally productized,” Beyond the remote monitoring and management of print says Cullen. “You see anywhere from $250 to $350 [per month] 12 | w w w. o f f i c e t e c h n o l ogymag.com | November 2011

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of SMBs are in advanced for a server and $55 to $65 managed services relationfor a desktop, which includes “Most major copier ships,” Cullen says. “The maintenance and support.” manufacturers have a thing is, just like many copiBy monitoring and manmanaged services initiative er dealerships are adopting aging the IT infrastructure or are looking into this, end users are only now remotely, MSPs are able to developing one ... If the adopting this as well.” increase their margins on Cullen points to a fimanaged services. “It is all ‘big guys’ are going into nal indication of what lies about alignment with the managed services, dealers ahead. “Most major copier customer in terms of elimiare going to have to be looking at it as well.” manufacturers have a mannating emergency service — Mike Cullen aged services initiative or calls,” Cullen says. “It is N-able Technologies are looking into developing about performing proacone right now,” he says. “If tive tasks, such as removing temp files, defragging the computer, running Spybot and the ‘big guys’ are going into managed serthings like that so the customer does not have problems. So, vices, dealers are going to have to be looking what is good for the customer is also good for the service at it as well.” n Brent Hoskins, executive director of the provider in terms of maximizing uptime.” Business Technology Association, is editor How big is the opportunity for dealers considering of Office Technology magazine. He can be managed services and the remote monitoring and managereached at brent@bta.org or (816) 303-4040. ment of IT? “In North America, only about 20 to 25 percent

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Muratec’s Advance Dealer conference held Sept. 14-16 by: Brent Hoskins, Office Technology Magazine

ocused on reaffirming its commitment to supporting dealers through both product and support, while also announcing its expanding product road map through 2012, Muratec America Inc. hosted its 2011 National Dealer Conference Sept. 14-16 at the Planet Hollywood Resort & Casino in Las Vegas. Themed simply “Advance,” the meeting drew approximately 400 attendees. “We know that it has been a difficult few years,” said Jim D’Emidio, president of Muratec America Inc., in the opening General Session. “We’ve had the worst recession since the Great Depression. The housing market is in a slump. We have low consumer confidence. We had a terrible earthquake and tsunami in Japan. There is also the European debt crisis. And, we are in an industry that everyone is telling us is dying. People are copying less and printing less.” With his acknowledgment of the gloomy realities of the day stated, D’Emidio expressed optimism for what lies ahead and assured attendees that Muratec will be at their side to help them prosper. “We are excited because of a couple of good things,” he said. “We were profitable last year in a very difficult economy. And, we are excited about what we see is the future of our industry. We think that this is the Golden Age of the office equipment dealer. We believe the future is very bright for you and Muratec.” As Muratec and its dealers move forward together, D’Emidio said the company remains committed to its high level of customer service. “No matter what, we will be your best vendor to do business with,” he said. “I cannot control the economy. I cannot control the weather. I cannot control anything else. The only thing that I can control is how we interface with you. So, I am going to make the experience that you have in doing business with us as good as possible.” Daisuke Murata, president and CEO of Murata Machinery Ltd., the parent company of Muratec America, echoed D’Emidio’s commitment to dealer support during the General Session. “We are not a large supplier like Canon and Xerox,” he said. “We are not able to do what the other large guys are able to do for you, but we will do what they do not do. As a small supplier, we are very fast-moving and flexible.”

Clockwise from top: Sean Takasaki (left), manager of product planning for Murata Machinery Ltd., explains the functionality of one of Muratec’s MFPs to a dealer attendee.; Daisuke Murata, president and chief executive officer, Murata Machinery Ltd.; Jim D’Emidio, president, Muratec America Inc. Murata also acknowledged the recent success of the company, reporting that the combined overall sales for the parent company’s five divisions had reached $2.2 billion for the most recent fiscal year. He thanked dealers for their contributions to the number. “Thank you very much for your support,” he said. “I hope that the relationship between you and us lasts forever.” That relationship has evolved to a level that many would agree is atypical in the office technology industry. Noting that Muratec’s leadership believes “the future is in MPS,” D’Emidio explained how the company has been changed in order to serve as a resource for dealers as they pursue the burgeoning MPS opportunity. “We are trying to help you go

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said. “MPS is a means to an end.” from one stage to another,” he explained. Muratec dealers will see plenty more “So, we have started selling remanufac“We are looking to hardware from the company in the tured toner and printers. Plus, we can fully build out our coming months, reported Lou Strickservice any printer from anywhere in line so we cannot lin, director of marketing, during the North America for you. We can also help only meet your services General Session. He announced plans you with assessments and we can do needs, but we can for Muratec-branded MFPs from OEM your MPS billing.” partners as well as new models manuD’Emidio said the change in focus at also meet your factured by Muratec itself. “Going into Muratec was the result, in part, of comhardware needs.” 2012, we are looking at adding nine A4 ments he heard a Hewlett-Packard exmonochrome models, three A4 color ecutive make at an industry conference. The executive stated that HP executives see a day when low- models, four A3 monochrome models and three A3 color cost MFPs will replace today’s standalone printers, he said, models,” he said. “So, that’s 19 new products we are lookindicating that it became “very clear” then that Muratec ing forward to having by the end of 2012. We are looking to should become dedicated to helping dealers develop an MPS fully build out our line so we cannot only meet your services program in order to provide the service and supplies for needs, but we can also meet your hardware needs. We bethose printers. “The benefit to you is, when it’s time for them lieve that this will enable us to grow and enable us to be an to upgrade, you are going to be the first one there,” he said. even better partner for each of you.” n Brent Hoskins, executive director of the Business Technology “If HP is correct, you’re going to upgrade them to MFPs.” Association, is editor of Office Technology magazine. D’Emidio acknowledged the ultimate goal of the comHe can be reached at brent@bta.org or (816) 303-4040. pany’s focus on MPS. “Our business is to sell hardware,” he IBPIspecads11_ibpi_OT_half_11 7/19/11 11:49 AM Page 1

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Grand Slam 2011 BTA East hosts district event in White Plains, N.Y. by: Brent Hoskins, Office Technology Magazine

TA East recently hosted its fourth annual Grand Slam event, providing office technology dealers the opportunity to learn from experts, gather new ideas and network with fellow dealers. Held Sept. 22-23 at the Ritz-Carlton in White Plains, N.Y., the event drew nearly 80 registrants. Attendee comments were favorable. Among them:  “The speakers were great. We need this time away from our businesses to ‘fan the flame’ and recharge.” — Ray Derstine, Altek Business Systems, Telford, Pa.  “This was my first time attending the [BTA East] event and I was very impressed.” — Jason Bradshaw, Mason City Business Systems, Mason City, Iowa The event featured six education sessions: “Five Keys to Success: A Proven Blueprint for Independent Dealers,” with Rick Taylor, president and COO, Konica Minolta Business Solutions U.S.A. Inc.; “Building High Performance Sales Teams in a Transitioning Industry,” with Tom Cooke and Kim Ward, Learning Outsource Group; “The Rise of Social Media in Business,” with Martin Perry, in2communications Inc.; “State of the Office Document Technology Industry” and “Looking Beyond Print with Managed Services,” with Jon Reardon and Randy Dazo, InfoTrends; “Succession Planning,” with Jim Kahrs, Prosperity Plus Management Consulting Inc.; and “MPS Problems Solved — Process, Product & Service,” with Frank Topinka, National Printer Repair Network. The event also featured 32 exhibiting sponsors: Color Imaging, Crawford Thomas, Densi, Digital Gateway, Digitek Computer Products, Diversified Computer Supplies, DocuWare, ECi Software Solutions, Epson, Equipment Data Associates, Electronic Systems Protection, Evolved Office, Falcon Technology Solutions, FileBound, FMAudit, GreatAmerica Leasing, Hytec Dealer Services, Image Star, Innovolt, InkCycle, Konica Minolta, LEAF, Micro Solutions Enterprises, Muratec America, Polek & Polek, Power Appointment Setting, SalesChain, Supplies Network, Square 9 Softworks, Strategy Development, Toshiba and West Point Products.  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: Rick Taylor, president and COO, Konica Minolta Business Solutions U.S.A. Inc., presents his keynote address; Sept. 23’s lunch was sponsored by Micro Solutions Enterprises; An attendee visits the FMAudit exhibit table; BTA President-Elect Todd J. Fitzsimons passes the microphone during a Q&A session; Jon Reardon, InfoTrends.

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Dealer Opportunities A

Above: Grand Slam 2011 attendees network during a break in education sessions; Right: Martin Perry, in2communications Inc.; Below: Grand Slam 2011 drew nearly 80 registrants.

Clockwise from top: Jim Kahrs, Prosperity Plus Management Consulting Inc.; Attendees visit GreatAmerica Leasing Corp.’s exhibitor table to learn more about the company during a break in education sessions; Frank Topinka, National Printer Repair Network; Tom Cooke, Learning Outsource Group.

s he began his keynote presentation at Grand Slam 2011, Rick Taylor, president and COO of Konica Minolta Business Solutions U.S.A. Inc., said his goal was to address two key questions: What is the future of this business? Where should we go from here? The current changes in market trends and technology are compelling dealers and manufacturers to look at specific areas of opportunity, Taylor said. “With change I think there is always great opportunity,” he said. “And, if we embrace change and look at what the real opportunities are, we can take advantage, move forward and grow our businesses. “I will tell you the five things that I think we all should be doing as independent dealers — or as a $2 billion manufacturer — to face the challenges in this business going forward,” he said. “These apply to you whether you have a $1 million dealership or a $100 million dealership.” Taylor cited production print as the first key opportunity, noting that even smaller dealerships can handle the expensive output devices, with the right manufacturer as a partner. “It is one of the growing page-volume opportunities out there and the field narrows dramatically [in terms of the number of participating manufacturers] when you look in this area of the market,” he said. “If you can get in with a partner and attack this market, it can change your entire world.” Next, he addressed the importance of dealers having a focus on both solutions and vertical markets. Rather than simply focusing on high- or low-volume products, or color versus monochrome, dealers should target certain verticals, he said, noting that Konica Minolta has embraced that strategy. “We have vertical approaches for organizations that make a lot of print, such as legal, health care and education,” Taylor said. “We are investing in training and marketing approaches that go after specific types of businesses.” With the third opportunity he cited — managed print services (MPS) — already being pursued and otherwise discussed by many dealers (“I don’t think I’ve seen anybody at the end of the evolution of the managed print services opportunity.”), Taylor placed special emphasis on the fourth opportunity on his list: managed IT services. “It is a big focus for us,” he said. “And we are trying to enable the dealer community so that dealers of any size can take advantage of the opportunities — especially in the SMB market.” Taylor referenced Konica Minolta’s December 2010 acquisition of All Covered Inc., then a $50 million company providing IT services in 22 U.S. cities, as an indication of his company’s commitment to the market opportunity. “The managed IT environment for SMB — which is really what our focus is on as a company and where most of our customers reside — is a huge industry,” he said, indicating that the opportunity is a particularly good fit for BTA dealers. “The average-size company providing this service to SMBs is $2 million to $4 million and it is almost exclusively in a local environment.” Taylor’s list of opportunities concluded with an encouragement to dealers to ensure they are utilizing today’s new means of engaging customers — that is, through Twitter, Facebook and LinkedIn. “If Facebook can cause country revolutions in the Middle East, then I think it is probably time for us to listen and utilize this level of information [sharing and gathering] in connection with our customers and make this a huge part of our marketing vehicle going forward.” n —Brent Hoskins www.officetechnologymag.com | N o v e m b e r 2 0 1 1 | 19

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Time Management Key steps to turning chaos into high-payoff results by: Melissa D. Whitaker, Melissa Whitaker International

o you ever wish there was more time in the day? Do you sometimes feel overwhelmed with the growing pile of important tasks or activities that are continually added to your schedule? Does your list leave you feeling chaotic and hopeless? I regularly come across salespeople who tell me they have everything in their heads and, therefore, do not need to write down what they need to accomplish each day. However, these are some of the same people who admit that they feel chaotic, overwhelmed and sometimes forget to respond to client requests. Take the Time to Plan Since salespeople are so overwhelmed and have a difficult time getting what is on their plate done, they typically have no idea how to make time to plan their days so they can accomplish more. I always tell people to break it down into bite-sized pieces. First, start with a “weekly action plan.” The old adage, “Plan your work and work your plan,” is still the best lesson on time management. When you have a clearly defined plan, the accomplishments you can achieve will greatly increase. An effective plan should list your objective(s). Writing out objectives helps you clearly analyze your goals and gives you a yardstick to measure your level of productive activity. Your subconscious mind becomes actively engaged in working on your full list of objectives, allowing you to relate in normally unrelated circumstances. The subconscious mind is the innovator, giving you unique ideas and solutions to obtain your objectives. A written plan helps you work smarter as you achieve each objective. Maximize Your Plan There are five steps that will help turn chaos into highpayoff results through effective time management: n A Weekly Plan — At the end of the day on Friday, it is essential to sketch out and have a plan for the entirety of the following week. It is important to have every time slot

filled with productive activities. Do not have blocks of time open with no plan of attack. First, fill in every time and day you have scheduled appointments and/or presentations of some kind. Then fill in blocks of time for telephone prospecting and follow-ups. Next, you need to fill in blocks of time for any in-field cold calling that may be required (depending on your industry). Block out lunchtimes and any other necessary activities. Then step back and make sure each day has a plan. I am not saying there cannot be flexibility with the schedule (things typically change throughout the week), but the important thing is you already have a plan, instead of showing up Monday morning and trying to figure it all out. n Daily Action Plan — It is not only important to have a weekly plan, but it is equally important to have a daily plan. At the end of each day, take 15 or 20 minutes to plan the next day. You must have a plan of attack for what you need to get done and who you need to call, along with what appointments and/or presentations you have scheduled. This is the time to make a list, prioritizing your activities in order of importance and payoff. This is also the time to gather any research or appointment materials you will need the next day. You want to make sure everything is organized and ready so that when you arrive, you can jump-start your day and immediately get on task. You do not want to waste precious time doing busy work. Just remember that for every item you mark off, the more momentum you will have to keep attacking the rest of the list. Your self-esteem and self-confidence will increase and, ultimately, you will accomplish more. n HPAs vs. LPAs — The most difficult thing to do is take the first step. Now that you have broken through that wall by planning, you have to start evaluating your plans. There are many activities salespeople are required to do and they break down into HPAs (high-payoff activities) and LPAs (low-payoff activities). You need to ensure that the bulk of your day — from 8 a.m. to 4 p.m. — is filled with HPAs. HPA examples include activities where you are in front

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job to minimize time traps so that you of, or speaking to, prospects and curcan maximize your productivity. rent clients. They are HPAs because they Now that you have n Database Management â&#x20AC;&#x201D; Now move you toward making another sale. fine-tuned your time that you have fine-tuned your time efNext you want to look at required acefficiency, you will start ficiency, you will start to gather a lot of tivities, such as proposal writing, strateto gather a lot of information. For this information to be gy sessions with your managers, etc. Fill information. For this ... effective, it is vital to use a CRM tool. Use those activities in your schedule from the CRM to help you stay focused and pull 7:30 to 8 a.m. and from 4 p.m. to the end to be effective, it is vital this vital activity into a targeted plan. of the day. These are LPAs. Yes, they are to use a CRM tool. This final step brings all the steps togethrequired and necessary activities, but er to make a well-oiled sales machine. they are not directly connecting with a By implementing each of these steps, you will start realprospect or current client and cannot be done during the izing the benefits of higher sales and overall better results. n most important times of the day. Melissa D. Whitaker has a proven track record in coaching n Avoid Time Traps â&#x20AC;&#x201D; At the end of the week, take a look salespeople and managers in selling at a at your weekly schedule and see how things changed as the higher level. After 14 years of proven results week evolved. Take a snapshot of your plan and the results. with leading organizations, Whitaker founded Analyze what happened. Did some of your scheduled HPAs Melissa Whitaker International LLC. She get squeezed out with LPAs? Did issues and emergencies arise specializes in managed print services and that wasted your time? You need to avoid these time traps. can be reached at (847) 845-4922 or Examples of time traps include: socializing with colleagues, melissa@melissawhitakerintl.com. smoke breaks, unqualified prospects, e-mails, etc. It is your

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COURTS & CAPITOLS

Employee Misclassification IRS program provides a means to compliance by: Robert C. Goldberg, General Counsel for the Business Technology Association

recurring inquiry to the BTA Legal Hotline is the question of proper classification of workers as either employees or independent contractors. In difficult economic times, there are advantages to employers (and sometimes to employees) classifying employees as independent contractors rather than employees. However, calling someone an independent contractor does not make him (or her) one and a misclassification can be costly. If you visit the National Labor Relations Board’s website, you will find numerous questions to ask to determine whether an individual is truly an independent contractor. Unfortunately, the test is antiquated and fails to consider the realities of today’s workplace. BTA has a sample independent contractor form on its website to help establish independence and protect a dealer from repercussions if the classification is incorrect. Visit www. bta.org/LegalDocuments to download the form. The ramifications of an incorrect classification are significant. The employer will have to pay both ends of FICA and Medicare, unemployment taxes, state taxes and any city or county taxes, as well as interest and penalties. The individual — who has already been paid — leaves no salary to deduct these amounts from. The financial crisis affecting federal and state governments is not a secret. Political entities are looking to raise revenue by more closely examining the collection of existing taxes. On Sept. 19, the heads of the Department of Labor, Internal Revenue Service (IRS) and 11 state agencies signed an agreement to coordinate their efforts to fight employee misclassification. The Department of Labor, the IRS and the states of Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Montana, New York, Utah and Washington entered into a memorandum of understanding under which they will work together to combat the practice of some employers incorrectly classifying their workers as independent contractors rather than employees to avoid paying payroll taxes and workers’ compensation expenses. These federal and state agencies have agreed to coordinate law enforcement efforts and share information to combat misclassification. Just two days later, the IRS launched a settlement program to allow employers to reclassify their workers and come into

compliance with the tax code at a low cost. Under the settlement program, employers that prospectively treat their workers as employees can make a minimal payment covering past payroll obligations rather than waiting for an IRS audit. Instead of facing back taxes, penalties and interest for three years of misclassifications, taxpayers will be able to pay about 10 percent of the taxes for the most recent year. The IRS advised that the settlement program would benefit small employers that are being targeted in this effort. It has not been uncommon to misclassify workers in today’s economy. This is a fact that is well known to regulators and is being actively pursued to enhance revenue collection. The IRS settlement program provides an excellent means to place the issue behind you and to allow you to come into compliance. If you have an “independent contractor” who works solely for you and is provided tools, is directed as to the means to perform his assignment, and/or faces no risk as to profit or loss, the relationship should be carefully reviewed and corrective action should be taken if required. Of course, if you have any questions and are a member of BTA, the BTA Legal Hotline is available to assist you. n Robert C. Goldberg is general counsel for the Business Technology Association. He can be reached at robert.goldberg@sfnr.com.

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

Dealer Members ABC Document Solutions, Loveland, CO Advanced Copier Technologies, Gastonia, NC Ashland Office Supply, Ashland, KY BOSS Business Systems, Stockton, CA Copier Business Solutions, North Mankato, MN Future Digital Imaging, Scottsdale, AZ Service Associate Members GE Capital, Moberly, MO IDC, Framingham, MA Print Management Solutions Group, Ormond Beach, FL Prism Pointe Technologies, Fairburn, GA 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. For the past three decades, BTA Vendor Associate member Katun has been one of the world’s leading providers of OEM-compatible imaging supplies, photoreceptors and parts for copiers, printers, MFPs and other imaging equipment. From its beginnings in 1979, the company has pioneered and helped legitimize the imaging supplies aftermarket. Today, Katun serves 16,000 customers in 135 countries from its headquarters in Minneapolis, Minn., and dozens of worldwide locations. In addition to providing parts and supplies for legacy monochrome machines, the company can help you discover new revenue streams and increase profits. www.katun.com

Are you seeking information and insight regarding office technology industry trends and developments? Through an alliance with InfoTrends, BTA members can submit their questions via e-mail for an InfoTrends’ analyst to address. BTA’s “Ask The Analyst” feature is free to the association’s dealer members. It’s simple — just visit www.bta.org/ AsktheAnalyst. You will be provided with an e-mail address to submit your question and an InfoTrends analyst will respond to you directly via e-mail. (You will need your member login and password to access the e-mail address.)

BTA Service Associate member Univest Capital Inc. finances equipment for nationwide businesses on a direct and indirect basis. The company is backed by Univest Bank and Trust Co., a diversified financial institution with a 130-plus-year history. For businesses, that means Univest has the access to capital to help your firm acquire the equipment you need now and in the future. Equipment manufacturers, dealers and distributors use Univest’s FAST (Financing As a Sales Tool) sales system to boost their average sales by 20 percent or more. www.univestcapitalinc.com

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

A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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PRINCIPAL ISSUES

Ahead of the Curve Leadership competencies required to sustain change by: Joanne L. Smikle, www.smiklespeaks.com

usinesses large and small are being forced to transform themselves to meet the demands of a sluggish economy, dwindling customer bases and rapidly changing technology. While some dig their heels in and refuse to acknowledge the need to change their business models, marketing or staffing approaches, smart business owners know that it is far better to be proactive. Getting ahead of the curve assumes that you can face your fear of the unknown and begin thinking about strategies for strategically positioning your company for success. This article identifies the three leadership competencies required to create sustainable change in an enterprise of almost any size. Underlying Assumptions Before presenting the competencies, it is important to address the underlying assumptions. These guiding tenets provide even the smallest enterprise with necessary direction. They articulate purpose and enable the organization to stay focused. The first assumption is that your organization is already driven by a compelling mission or vision. The second is that you are already operating with a clear strategy that is both understood and articulated throughout the organization. Strategic intent is vital to success. While many business owners lament the failing economy as the reason for their difficulties, there are, in fact, other factors that contribute to difficulty and demise. Lack of strategy is a very big contributor to the failure of many enterprises. Owners without the anchor that strategy provides are susceptible to fads and trends that waste money, time and energy. They chase the latest and greatest technology tool, hoping that it will catapult them to success. In fact, a compelling strategy that is well-executed and regularly evaluated will ensure the ability to withstand the inevitable storms business owners face. The third and final underlying assumption is that you have already built strong communication channels in your organization â&#x20AC;&#x201D; not just top-down communication, but real dialogue that allows you to hear from employees at all levels. This communication also includes gathering insights and information from stakeholders outside of the organization, like customers and vendors. Part of your communication model should include formal and informal methods for hearing from a wide range of people who impact your business. Creating sustainable change requires that leaders be comfortable with conflict. Disagreements are inherent in any effort

to alter the status quo. They are certainly to be expected when launching large-scale change that impacts an entire organization or even just one department. Leaders who are able to transform organizations are keenly aware of the fact that people have different interests, positions and agendas that have to be honored and incorporated, so long as they fit with the guiding mission and vision. Contentious conversations will occur. Instead of squelching the conflict, allow it to emerge and use it to learn about people and their positions. Required Competencies In order to successfully bridge the gap between what exists today for your company and the vast possibilities for its future, you must hone your ability to lead, inspire and collaborate. The three competencies presented below are important in helping you build these important abilities. They must be developed in leaders throughout the organization. (1) Comfort with Risk â&#x20AC;&#x201D; Moving an organization into the realm of progress and possibilities requires a willingness to forgo that which may seem safe in favor of more risky behavior. These are not capricious risks; rather, they are calculated gambles that can move an organization ahead of the competition. A calculated risk may include dropping long-held lines of business to free the resources required to pursue a unique innovation that has the potential to transform your business. Another calculated risk may include making significant investments in sales training, even when sales are less than robust. Conventional wisdom would suggest that you wait until you are flush again to invest in the people who generate revenue. www.officetechnologymag.c o m | November 2 0 1 1 | 25

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Gambling on people has the potential to throughout the effort. pay off with larger orders, new customers n Evaluation checkpoints that measure Many change and expansion into new territories. progress and allow room for recalibration. efforts fizzle after Whatever the risk you are considering, The rest of your process will be customperiods of unsuccessful weigh the potential outcomes — not just in ized according to what you intend to acimplementation. Avoid the short term, but also in the long term. complish. If you are seeking change that that ... experience by Does this risk have the possibility of releads to growth, your process will be difwarding you and the company in spades? ferent from an organization that is seekfirst examining your roles When you become comfortable with ing change that leads to widespread innoand responsibilities ... risk, you are better able to lead people to vation. Read about various approaches to more innovative behavior. They begin to change and decide how to meld the best see that the status quo will not do and they may be more will- from different methodologies. ing to be inventive. Your comfort with risk can spawn a shift to a culture that values imagination, creativity and curiosity. Making the Commitment (2) Learning Orientation — Change that lasts is supported Many change efforts fizzle after periods of unsuccessful imby systematic, comprehensive learning for all levels of manage- plementation. Avoid that frustrating experience by first examment and staff. Savvy leaders know that they cannot possibly ining your roles and responsibilities as a leader seeking transhave all the answers required to create sustainable corporate formation. Whether you want to overhaul your entire business success in today’s business environment. They are able to model, or just bring select departments into the modern age, shelve their egos and invite learning. They understand that an it represents change and can be undertaken successfully. You investment in ongoing training, education and development is can enjoy this success by innovating in meaningful ways with also an investment in finding solutions that will stick. sensible practices and processes. This means a clear focus on This learning orientation extends to formal and informal the mission, as well as the intended outcomes. knowledge gathering and sharing. Certainly, there is the role It also means that you are able to demonstrate discernof formal training that introduces new concepts, teaches new ment. Every idea is not worthy of the effort of implementation. skills and builds subject-matter expertise throughout the en- Other efforts at implementation may wind up being mistakes. terprise. But skilled change-leaders know that there is also a A discerning leader understands that a good run beats a bad need for informal learning. This happens when best practices stand, acknowledges the mistake and ceases the activity. are freely shared among peers, regardless of their positions Leaders who are able to sustain change understand the on the organizational ladder. It happens when people are en- fact that change is a process, not an event. They understand couraged to mentor new employees in their areas of expertise. the difficulty and complexity of changing human behavior in Informal learning also happens when information about dif- ways that do not allow for reversion. These leaders also know ferent departments’ processes are freely shared throughout that collaboration is key, so they involve multiple stakeholders the organization. in the entire change process. Once these stakeholders are fully (3) Process Focus — Transformations that last happen not invested and own the change, the chances of reverting to old because of the big bang of a brilliant idea; instead, they hap- ways are greatly reduced. pen because a brilliant idea was welcomed into the organizaFinally, these leaders make learning a priority for themselves tion and then given enough structure to survive and flourish. and others involved in creating the new organization. Whether These transformations also stand the test of time because formal or informal, they integrate many methods of education, they seldom, if ever, rely on just one brilliant idea. They rely on training and development in their process and plans. the convergence and coupling of several ideas that make sense Transformations cannot happen without solid leadership for the enterprise. at all levels in the enterprise. Insightful leaders can inspire The process that works for your business will be different commitment and have the capacity to build lasting engagefrom the process that works for the business next door. Wise ment. It is this commitment and engagement that will enable leaders know that while there is a need for process to shape the change to be enduring. n the change initiative, the process must be customized to meet Joanne L. Smikle provides consulting and the unique needs of the organization. The three elements that leadership education to organizations across the are essential in all change processes are as follows: country. She specializes in collaboration, n Alignment with the mission, vision and core values of the leadership development and team building. organization. She can be reached at (301) 596-3140. n Collaborative practices that engage multiple stakeholders Visit www.smiklespeaks.com. 26 | w w w. o f f i c e t e c h n o l o gymag.com | November 2011

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PRINCIPAL ISSUES

Nuance’s Expanding Reach Executive highlights eCopy, Equitrac acquisitions by: Brent Hoskins, Office Technology Magazine

hile the history and product focus of both eCopy and Equitrac are familiar to most office technology dealers, another technology company, Nuance, may not evoke the same degree of familiarity. That will undoubtedly change over time. After all, Nuance now owns the other two companies. In October 2009, Nuance anRobert Weideman nounced the acquisition of eCopy, a scanning-centric provider of solutions that integrate paper documents into business software applications. In May 2011, Nuance announced the acquisition of Equitrac Corp., a provider of intelligent print management and cost recovery software. Nuance itself may be best known for its leadership in speech recognition software and OCR solutions. On Oct. 6, Nuance executives hosted industry analysts and editors for an “Analyst Summit” at the company’s corporate headquarters in Burlington, Mass. The presentation schedule provided a look at the company’s changing product mix, market strategies and plans for the future. Those presentations included comments focused on the eCopy and Equitrac acquisitions, beginning with the initial presentation of the day by Robert Weideman, senior vice president and general manager of Nuance’s Document Imaging Division. Weideman told of a meeting that took place about three years ago with the company’s chairman. “He came to me and said, ‘It’s time to look at the imaging world and see what we can do in growing this business more aggressively,’” he explained. “So, we came up with a five-year plan on how to do that.” The growth plan resulted, in part, in the acquisition of eCopy. Since then, Nuance has continued to improve the eCopy portfolio, Weideman said, citing, as an example, the re-architecture of the eCopy scanning platform, so that more document processing functionality could be added. “We did that with eCopy V5 with added forms-processing capabilities in the product, which are included in the suite version,” he explained. “We also added highlight/redact capabilities so that the user can search, find and redact documents.” In addition, said Weideman, eCopy has been transitioned into an open extensible platform, so products such as OCR solutions from companies like ABBYY and IRIS can be plugged into the platform. eCopy is also now embedded in a broader

range of MFPs, including Xerox and Hewlett-Packard products. The strides with eCopy “really laid a strong foundation for us,” he said. “Obviously, as we were embarking on this [building the capabilities and reach of eCopy] we saw the opportunity around the combination of scan and print [resulting in the acquisition of Equitrac]. Our plan is to have those two things become a powerful force in growing our business through the MFP channels.” Weideman said Nuance’s research quickly revealed Equitrac as a market leader in its space. “We did more research on how this would fit together [with eCopy] and came to the realization that some people scan, but everybody prints,” he explained. “If you look at the deals that are going on in the industry, [many] of them involve print management.” (At Nuance, the focus of print management is, in part, cost recovery. Says Weideman: “So, controlling the print and document flow so that users can charge back to their customers in an accurate way.”) For those end users who regularly have a need for scanning, it is particularly important, Weideman said. “It is the legal department, HR department or finance department and, so, it is really mission-critical,” he said. “However, having scanning be pervasive on every MFP in a company rarely happens. So, by adding print management, we now have a solution where we are engaged in opportunities that are true enterprise.” Going forward, a key strategy for the continued growth of both eCopy and Equitrac will be a concentration on three key vertical markets — legal, health care and education — Weideman said, initially citing Equitrac’s long-time focus on the legal market. “We are going to augment that with eCopy Legal Solution Pack, which will be available in the market as an eCopy standalone solution,” he explained. “We are also going to go into health care in a big way to leverage the 4,000 hospitals that we already have contractual relationships with to grow that business. And, in the education space, we have a solution that is quite popular — Equitrac Express.” Weideman described Nuance’s acquisition of Equitrac as “the best acquisition that we have done as a company.” He is optimistic about what lies ahead. “When you look at what we have at our disposal, now we’ve got people all over the place,” he explained. “We have channel relationships that cover the globe and those channel relationships are getting stronger.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org or (816) 303-4040. www.officetechnologymag.com | N o v e m b e r 2 0 1 1 | 27

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PRINCIPAL ISSUES

Internal Leasing Consider setting up your own program by: Russ Bennett, Bennett Office Technologies

am not really a control freak, but I dislike having third-party companies dealing with my customers. Shortly after starting my company in 1981, I began researching the possibility of doing my own internal leasing. At the first office technology industry convention I attended (what was then the NOMDA convention) in Kansas City, Mo., I found that few dealers had established internal leasing programs. To start my company’s own internal leasing program, my first step was to approach my local bank for a line of credit to finance the leases. By assigning the leases to them and allowing them to debit my checking account, they were very interested in working with my dealership. (I was required to sign a personal guarantee, which could be a potential problem for some dealership principals.) The next step was to find a leasing form for my customers to sign. I was able to obtain one from a dealer in a neighboring town and ran it past BTA General Counsel Bob Goldberg to confirm that it was appropriate. Today, I have 171 leases with approximately $1 million outstanding. I invoice about $15,000 per month to my customers. We run our dealership with Digital Gateway’s e-automate. It handles the billing using “Contracts” and the depreciation using “Fixed Assets.” When we decided to venture into managed print services (MPS), my contacts at the local bank were excited. They doubled my line of credit to allow me to enter that market. Our first contract was with a local school district, which leased about $130,000 of new Kyocera Mita equipment. We are also very much an IT shop — last month we leased $100,000 of Hewlett-Packard networking infrastructure to another school district. At some point, we see our managed IT services evolving into contracts that include not only services, but also hardware. Our customers will only have one monthly payment and they will not have to think about their IT again. The benefits of having an internal leasing program are numerous. My customers love the flexibility; we make it very easy for them to upgrade equipment before the lease ends. (We use

Microsoft CRM with a connector to eautomate from Relevant Automation to alert our reps to expiring leases.) We have a steady stream of good, used equipment for those instances when used equipment is right for the customer — usually rentals. We do not experience the hassles of fair market values, buyouts and having to ship equipment back to a leasing company. Financially, we benefit from the tax advantages of depreciation, deferring taxes by realizing revenue monthly rather than at the time of the sale. We also benefit by investing in our own leases and not selling them to the bank. In this market, there is no better return on our cash than the lease factor. There are some drawbacks, as can be expected. In a tight credit market, a local institution might not be willing to raise your line of credit and it may also run into hitting its legal lending limit. It is a rather large contingent liability on my personal financial statement, but I have other business interests (including three Subway restaurants) and it has not been a problem to obtain other credit. In 30 years, we have had almost no losses — only a few repossessions involving companies that had been in business less than a year. I should disclose that my previous career was in banking and I have a stringent routine for collections; my bank helps me underwrite the credit when necessary. My degree in accounting with a minor in business administration has also been helpful in administering the program, but it could certainly be done with advice from a CPA or tax advisor. Internal leasing is not for everyone, but I would encourage other dealers to consider it before they send that contract off to a third party. n Russ Bennett is president of BTA member dealership Bennett Office Technologies, a Kyocera Mita-authorized dealership located in Willmar, Minn. The dealership also sells desktop and notebook computers, as well as servers, and offers network design and connectivity, office design and supplies. Bennett can be reached at rbennett@bennettoffice.com. Visit www.bennettoffice.com.

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PRINCIPAL ISSUES

Building Team Unity Getting your employees on the same page by: Tim Votapka, Prosperity Plus Management Consulting Inc.

ave you ever had a moment when someone in the office did something that really did not make any sense? His (or her) response may often be, “But that’s the way we’ve been doing it for years.” Now, recall what impact that has had on you, your staff and, ultimately, the productivity of your area. Let us take a look at this a little more closely. Example One: Your new sales reps cannot seem to get into the routine of entering all of their daily activities into your CRM system. When you investigate this, you find out they were under the impression that the system was only necessary for booking appointments, proposals and closed sales. Example Two: You put the time and money into developing a direct mail campaign, but after a few weeks, you find out that no one has been mailing the postcards out on a regular basis. When you investigate, you discover that your marketing coordinator thought it would be best to see how many prospects responded before releasing the next flight. In each of these examples, major flubs occurred that affected the health and viability of the organization. And in both cases — plus many more like them — decisions were made based on arbitrary data; that is to say, orders and commands were issued without a good, sound explanation. It also means decisions are being made without consideration of policy. As consultants, we see this occur in businesses of every shape and size. The issue here is the introduction of “arbitraries.” L. Ron Hubbard, author of the Hubbard Management System, defined the term very precisely when he said that an “arbitrary” is a “false order or datum entered into a situation or group.” It may reveal itself as the rule of thumb staff members apply to any given situation in the absence of policy. Sometimes these arbitrary decisions enter into the organization virtually undetected and without any known source or author who can provide the appropriate rationale. So you ask a sales rep, “Who told you sales reps didn’t have to enter daily activities in ACT?” “Um, well, I thought that’s always been the case.” “I see. But who told you that?” “Well, I think it was Joe when I first got here. Yeah, he told me there weren’t enough fields in ACT to enter that information, so he said we just skip over that.” That is about as blatant as an arbitrary can get and, unfortunately, Joe cannot be corrected on his false data because he left the company back in 2006. Hopefully Joe went to a

competitor where he could spread even more false data and confusion. Regardless, the damage is done and now his irrational idea has been adopted as policy, which, unless eradicated, will bring the overall tone, morale and production of the team down over time. In his experience with group dynamics, Hubbard discovered some very practical phenomena. A group, he determined, is as effective as the reasonableness of its ideas and the height of its ethics, plus its ability to confront and handle its environment. If your team members are confronted with irrational policies or behaviors and do not spot them, they will go off course. A common example of this occurs in many dealerships during the summer. You may start to hear sales reps defend their lack of appointments and sales by blaming it on the slow summer: “Everyone’s away on vacation in August; that’s why we’re not getting any deals signed.” This is an arbitrary piece of data that can enter into a dealership, giving the team the justification necessary to make fewer calls and close fewer sales. Notice Hubbard’s use of the word “ethics” in his definition of group effectiveness. This concept is often misunderstood, as it can be thought to mean not breaking policy or the law. In fact, ethics is actually measured by one’s ability to think and act according to the greatest good for the greatest www.officetechnologymag.com | N o v e m b e r 2 0 1 1 | 29

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of emergency situations. They are more number of dynamics. A group with good likely the implanted ideas from an indiethics writes and follows policies that First, examine your vidual who either did not understand an promote the maximum amount of surteam, probing for agreed-upon policy or SOP, or simply had vival of its members and its overall purany orders and false data that had never been cleared up pose. The absence of policy and ethics can commands that were earlier by management. (and will) open the door to non-survival issued without Fortunately, there is a remedy for this. practices or routines, even among the First, examine your team, probing for any best staff members, simply because the explanation. If you find orders and commands that were issued arbitrary decision or policy can appear to any, clear these up ... without explanation. If you find any, clear be legitimate. Scary, huh? these up until there is absolutely no doubt Now, there are occasions when certain arbitrary orders enter the scene for legitimate reasons. For ex- in your mind that everyone impacted understands the direcample, an emergency situation may arise that does not allow a tions and why they were issued. Secondly, ask your staff memmanager much time to explain his orders to the group. Recent bers if there were any other earlier orders or commands given floods, hurricanes, tornados and other major events in certain that they did not understand. Clear up any issues with these. You will find that with persistence and repetition, your areas of the United States probably forced many managers to issue orders or directions to staff that did not come with specific people will be able to spot arbitrarily set policies and will explanations. In cases like this, the staff is used to following in- question them. When they do, you will have a more smoothly stantaneous orders, which are issued to protect and safeguard running and more profitable operation. n Tim Votapka is vice president of Prosperity Plus Management the group. When this happens, staff members instinctively Consulting Inc. Prosperity Plus works with follow the orders, provided they have faith and belief in the racompanies throughout the office systems tionale and sanity of the manager who is issuing those orders. Even then, the manager should gather up his staff immediately industry, building revenue and profitability while improving organizational structure, efficiency after the crisis or emergency ends and explain his orders and and market awareness. He can be reached at reasons in order to avoid any chance of having these become (631) 382-7762 or tvotapka@prosperityplus.com. standard operating procedures (SOPs) down the road. Visit www.prosperityplus.com. But the vast majority of arbitrary rules are not born out

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30 | w w w. o f f i c e t e c h n o l ogymag.com | November 2011

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