ENX JULY 2018 ISSUE by ENX Magazine

JULY 2018

VOLUME 25 NO. 7

Connecting People, Ideas and Products in the Document Technology Industry since 1994

OES-SOLUTIONS TAKES GREAT CARE in Finding New Partners, Employees

engage ‘n exchange

21ST-CENTURY

HIRING PRACTICES

NEW LEADERSHIP, GO-TO-MARKET STRATEGY AND A COLLABORATIVE APPROACH WITH DEALERS Make for a Bold, New Ricoh World

Sean Seward, XMC Inc.

FISHING FOR TALENT: When Trying to Land New Hires, Take These Handy Tips to Reel in the Best Catch HAVE I GOT A JOB FOR YOU!

Culture-Driven XMC Inc.’s Appetite for Acquisition Fuels Growth Plans ENX Magazine

PO Box 2240 Suite 729 Toluca Lake, CA 91610-0240 USA

tel: 818-505-0022 fax: 818-505-9972 email: enx@pacbell.net www.enxmag.com

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TECHNOLOGY

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TECHNOLOGY

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TECHNOLOGY

With fewer parts for less maintenance1 and predictive service that keeps your business up and running, HP A3 MFPs are an upgrade from traditional copiers.

ÂŠ Copyright 2018 HP Development Company, L.P. The information contained herein is subject to change without notice. 1Fewer service parts claim based on HP analysis of leading in-class A3 color laser printers and MFPs as of February 2018; calculations use publicly available and/or published manufacturer rated yields for long-life consumables and assume 600,000 pages printed (using a 60% black/40% color ration). Learn more at hp.com/go/pagewideclaims.

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183918A | Clover Services Group, and its logo are trademarks owned by Clover Technologies Group, LLC, and may be registered in the United States and other countries.

VOLUME 25 NO. 7

Connecting People, Ideas and Products in the Document Technology Industry since 1994

engage ‘n exchange

21ST-CENTURY

JULY 2018

HIRING PRACTICES

OES-SOLUTIONS TAKES GREAT CARE in Finding New Partners, Employees

NEW LEADERSHIP, GO-TO-MARKET STRATEGY AND A COLLABORATIVE APPROACH WITH DEALERS Make for a Bold, New Ricoh World

Sean Seward, XMC Inc.

FISHING FOR TALENT: When Trying to Land New Hires, Take These Handy Tips to Reel in the Best Catch HAVE I GOT A JOB FOR YOU!

Culture-Driven XMC Inc.’s Appetite for Acquisition Fuels Growth Plans

In This Issue

DEALER SPOTLIGHT

Culture-Driven XMC Inc.’s Appetite for Acquisition Fuels Growth Plans By Erik Cagle

16 STATE OF THE INDUSTRY

21st-Century Hiring Practices May Ease Process, but Office Technology Dealers Still Tasked in Finding Ideal Candidates By Erik Cagle

24 BUSINESS PROFILE

OES-Solutions Takes Great Care in Finding New Partners, Employees By Erik Cagle

34 CHANNEL INSIGHT

New Leadership, Go-to-Market Strategy and a Collaborative Approach with Dealers Make for a Bold, New Ricoh World By Erik Cagle

40 RECRUITMENT

Fishing for Talent: When Trying to Land New Hires, Take These Handy Tips to Reel in the Best Catch By Sally Brause

44 SALES MANAGEMENT

Have I Got a Job For You! By Charles Lamb

48 SERVICE MANAGEMENT

A Day in the (Training) Life: Service Managers Gain a Wealth of Info at Visual Edge Technology Event By Ken Edmonds

50 TECHNICAL TIP

Xerox WorkCentre 7120 style - Tech Info Sheets Part 2: Copy Quality Adjustments

44 6

By Britt Horvat •

www.enxmag.com | July 2018

We Saw It In ENX Magazine

VISUAL EDGE TECHNOLOGY IS NOT A PRIVATE EQUITY GROUP, NOR IS IT OWNED BY ONE. Visual Edge Technology incorporates a strategy of operating through established successful companies across the U.S., focused on providing a broad line of client solutions, including managed IT services, office automation solutions, multifunction products for print, wide-format solutions, managed print services and document management software. Visual Edge Technology companies represent brands Canon, HP, Konica Minolta, Kyocera, Ricoh, Samsung, Sharp, Toshiba and Xerox. Visual Edge is continually focused on identifying successful companies to join our strategy.

We’re Growing and

Hiring NOW! Looking for Talented People! • Sales Managers • Service Managers • Sales Executives • Service Technicians

• • • • • • • •

A B Dick Office Solutions, MI A-COPI Office Solutions, ME American Copy Service Center, CT Axion Business Technologies, RI, MA AXSA Imaging Solutions, Inc. FL, GA Benchmark Business Solutions, TX & NM Brady Business Systems, MI Commonwealth Technology, Inc., KY, IN

• • • • • • • •

Copeco, Inc., OH Copier Source, Inc. d/b/a Image Source, CA Counsel Technology, IA FastForward Digital Solutions, FL Graphic Enterprises Office Solutions, OH Graphic Enterprises, OH Janco Office Systems, CT MCM Business Systems, WV

• • • • • • • •

Midwest Automation, NE Netwise Resources, Inc., IN Premier Business Products, MI TLC Office Systems, TX United Business Machines, NH WBS Technologies, FL XMC, Inc. TN, AL, GA, AR, MS Zymphony, FL

We’re in the following states: AL, AR, CA,CT, FL, GA, IA, IN, KY, MA, ME, MI, MS, NE, NH, NM, OH, RI, TN, TX, WV

David Ramos

Vice President of Business Planning & Analysis

dramos@visualedge.com

If you live in the above states or are willing to relocate, please contact us at CorporateRecruiting@visualedge.com

Contributors

Staff

SALLY BRAUSE is the Director of Human Resources Consulting for GreatAmerica Financial Services. She has been sharing this expertise with office technology dealers since 2008. Sally is certified as a Senior Professional in Human Resources (SPHR) and has been certified as a Compensation Professional through World at Work. Brause has a master’s degree in Organizational Leadership and participated in the Wharton School of Business’ Leading Organizational Change program.

Susan Neimes Publisher & Managing Editor

KEN EDMONDS is serving as a service management coach and consultant. He has an extensive background in the imaging business having owned a successful dealership and worked as service manager for multiple dealerships. He also served as a District Service Manager for Konica Minolta and as a Document Solutions Specialist for Sharp Electronics. He has more than 40 years of experience and attended many training programs for service managers including BTA Fix seminars, Pros Elite program, Service Mangers Achieve Results training by John Hey and John Hansen. He also completed the University of Wisconsin training program for technical trainers. He can be reached at Ken@kedmonds.biz.

Erik Cagle Editorial Director

CHARLES LAMB is the President and CEO of Mps&it Sales Consulting. His firm delivers proven methodologies and processes that assist dealer principals seeking a successful transformation into the managed services space. He’s created complementary solutions including Funnelmaker, Gatekeeper, and Shield IT services. For more info, call 888.823.0006, e-mail him at clamb@mpsandit.com, or visit www.mpsandit.com.

Ronelle Ingram Contributing Editor

TECHNICAL ARTICLE CONTRIBUTOR

BRITT HORVAT works for The Parts Drop, a company whose primary business is providing parts, supplies and information for Xerox brand copiers, printers and fax machines. You can find more information, including many of Britt’s past ENX articles on their website www.partsdrop.com.

2018 I

A eW e e k In I M

Christina Kim

OPEN NOMINATIONS FOR THE 2018 ELITE DEALER AWARDS

Editor

engage ‘n ex engage ‘n exchange engage ‘n exchange

www.enxmag.com

•

www.enxmag.com | July 2018

La Revista del Distribuidor Dealer Source

Corporate Office

Susan Neimes - susan@enxmag.com Erik Cagle - erik@enxmag.com 10153 1/2 Riverside Drive, Suite 729 Toluca Lake, CA 91602 tel. 818-505-0022 • fax. 818-505-9972

NOMINATION DEADLINE: SEPTEMBER 14, 2018

Elite Dealer Nomination Form Available at

México & Latin America

engage ‘n exchange

ENX Magazine is published monthly by Affinity Business Communications, Inc. Any inquiries should be sent to: enx@pacbell.net or mailed to the corporate office. Copyright ©2018 by ENX Magazine printed in the U.S.A. All reproduction in whole or part is prohibited without written permission. Cover photo from depositphotos.com

We Saw It In ENX Magazine

Since 1985

Your Prime Source T EL: 800.729.8320

FAX: 800.829.0292

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All prices, rebates, and availability are subject to change without notice. Please call us to confirm.

Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.

Copiers • Printers • MFPs • Faxes • Scanners E m a il: info @ n u w o rld in c.co m

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Image shown: CT-S310II

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Parts Order Hotline: 562.977.4949

All prices, rebates, and availability are subject to change without notice. Please call us to confirm.

Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.

NBS / ENX | July 2018

Since 1985

Your Prime Source T EL: 800.729.8320

FAX: 800.829.0292

INSTANT REBATE SALE! ALL INSTANT REBATE PROMOS ARE VALID THROUGH JUNE 30, 2018 TO CANON PREMIER PARTNERS OR WHILE SUPPLIES LAST!

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70 $100

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Color Laser Duplex Printer Color Laser Duplex Printer with Wireless Network with Network

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Both models can only be sold to 3P Authorized Dealers!

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All supplies & Parts available for prompt delivery! ENX Magazine | www.enxmag.com

All prices, rebates, and availability are subject to change without notice. Please call us to confirm.

Nuworld is not responsible for typographical errors or inaccurate specifications. Registered trademarks are properties of their respective owners.

Copiers • Printers • MFPs • Faxes • Scanners E m a il: info @ n u w o rld in c.co m

Order Online! www.nuworldinc.com

Blind Drop Shipping

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Erik Cagle

State of the Industry

21st-Century Hiring Practices May Ease Process, but Office Technology Dealers Still Tasked in Finding Ideal Candidates

n the 2000 film, “The Family Man,” Nicolas Cage’s character, Jack Campbell, finds himself in an alternate universe. In it, he tries (among other things) to win his way into a job with a Wall Street M&A firm, P.K. Lassiter. In “real” life, Campbell is the president of P.K. Lassiter, but this glimpse into an alternate reality transforms him into a tire salesman from New Jersey. Stripped of title and position, with only an E.F. Hutton internship on his resume, Campbell has few tools to legitimately win a position with the firm, and must talk his way onto the ground floor of the company. Here is an excerpt from his legendary pitch. Jack Campbell: “Business is business. Wall Street, Main Street. It’s all a bunch of people getting up in the morning, trying to figure out how they’re going to send their kids to college. It’s just people, and I know people. “You have two great loves in your life,” he tells Lassiter, “your horses and this company. And you’re a man who prides himself in finding talent in unusual places.” Peter Lassiter: “How would you know that?” Jack Campbell: “Because I’m here. I’m prepared to do whatever it takes to get this job. I’ll start wherever I have to start. I’ll park cars if I have to. The biggest part of judging character is knowing yourself, and I know this: I can do this job. I can. Give me a chance, Peter. I won’t let you down.” The Hollywood treatment aside, perhaps the days of chance meetings and job opportunities starting from impromptu conversations have all but vanished. The film was shot prior to the proliferation of online job resources and social media outlets. The web has enabled job hunters to ferret out employment positions anywhere in the country, or the world for that matter. Hunters can rely on LinkedIn, Monster, Indeed, Glassdoor and other countless services that align companies with prospective employees, utilizing countless tools that provide insight into potential matches. In shrinking the job-hunting process, these tools have also raised the degree of difficulty for job seekers. It’s not out of the ordinary for companies to receive hundreds of applications for a single job posting. Employers have resorted to using software that scans resumes and cover letters for key words that can eliminate a lion’s share of applicants before

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www.enxmag.com | July 2018

a pair of human eyes comes into play. From an employer’s standpoint, it allows firms to cut to the chase quicker to find the handful of candidates who are legitimate prospects. So, has technology taken the teeth out of oldfashioned, people-judging tactics? We’ve canvassed a number of office technology dealerships to gauge the processes they utilize to recruit and hire quality employees, as well as the challenges they face maintaining their most valuable players.

Employees Know Best

While Eakes Office Solutions of Grand Island, NE, relies on online sites such as LinkedIn and Indeed—not to mention traditional newspaper advertisements—to scout out new talent. But perhaps its strongest go-to medium is referrals from current employees, according to Kevin Fries, human resources manager.

WE DRILL PRETTY DEEP INTO WHAT TYPE OF PERSON THEY ARE FROM AN INTEGRITY STANDPOINT AND WORK ETHIC Kevin Fries, Eakes Office Solutions “Our current employees know what type of person it would take to work at Eakes, and understand best who would be an ideal fit from a cultural standpoint,” he said. “They need to live the same core values we live as a company. Beyond that, because we have 14 locations across the state of Nebraska, we have different challenges with what works. In some areas, we can use local colleges to help us find people, and in other parts of the state, traditional newspaper ads work well.” Fries believes Eakes has a fairly rigorous interviewing process. The typical candidate has a minimum of two interviews with various personnel at the dealership, which also relies on pre-employment screening and testing. When the final candidates have been selected based upon technical skills, educa-

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continued on page 18

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21st-Century Hiring Practices May Ease Process, but Office Technology Dealers Still Tasked in Finding Ideal Candidates tion and background, the cultural fit is generally the final piece that often separates one person from the pack. “We drill pretty deep into what type of person they are from an integrity standpoint and work ethic,” Fries added. “Are they trying to be the best they can be? We’re just trying to dig as deep as we can to get the right person. It’s important that they’re going to work their tail off, yet still have fun and conduct themChris Taylor, selves with a high level of integrity.” Fisher’s Technology Personal relationships are also a strong source of candidate discovery for Fisher’s Technology of Boise, ID. CEO Chris Taylor ranks employee networks atop the list for finding talent, but the pipeline can be fortified by individuals who attend company events, including social, charitable and educational outings. These settings provide potential candidates, as well as Fisher’s executives, a chance to learn more about one another in a natural atmosphere. Interestingly, Taylor ranks traditional career search tools and staffing agencies as a “distant third” choice for finding potential candidates. He prefers to target people who possess strong values that mesh with Fisher’s way of doing business. “If someone has a positive attitude, is driven to make customers extremely happy, is humble and wants to win, they are likely a fit,” he said. “Certainly, some job-specific skill level is required after that, but we can train skills. We can’t train attitude and values.”

Finding Top Choices

Geographies can often dictate the degree of difficulty in finding key personnel, whether a dealer is seeking their next sales superstar, a new service tech or admin staff. One of the realities learned from fishing in the talent pool is that many of the best and brightest are gainfully employed, notes Emmy Georgeson, head of Recruitment & Development for imageOne of Oak Park, MI. The dealer sees many candidates who are unemployed or unhappy with their current jobs, while others are young and lacking the desired experience for a position. Although imageOne handles hiring within, they may reach out to recruiting firms for extra help with sales and service technician openings. Even with the difficulties in finding optimal candidates, imageOne is uncompromising in its standards for seeking potential team members. “Our hiring process is ‘Thorough, Thoughtful and Collaborative,’ ” Georgeson said. “All of our recruiting efforts are based on the core values of imageOne: Open and Honest, A Passion for the Extraordinary, Flawless Execution and Thinking Like a Visionary. “Our recruiting process is strong because we start with a clear understanding of the position we’re recruiting for,” she added. “We understand the role and responsibilities, but more importantly, the core competencies required for that person to have success in the job. Then we note how we’re going to measure their success.” 18

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One of the more unique aspects of imageOne’s application process is its requirement that applicants write a series of short answers on how they embrace the dealer’s core values in their everyday lives. This provides imageOne with insight into the applicant that can’t be found on a resume, and showcases their written communication skills in a spontaneous manner.

THE CHALLENGE IN RETENTION IS THAT IT TAKES CONSISTENT, DILIGENT ATTENTION AND UNDERSTANDING. IT ALSO TAKES GREAT LISTENING, OPEN MINDEDNESS, GREAT FEEDBACK AND A COMMITMENT TO THEIR DEVELOPMENT. Emmy Georgeson, imageOne

That sets the stage for an involved interview process that includes a telephone screening, manager interview, executive interviews with the CEO and/or president, as well as talks with two or three other team members. Georgeson notes that a candidate can go through as many as six interviews prior to being hired. These interviews are complemented by online assessments, such as the Watson Glaser Critical Thinking Test and the Kolbe A assessment, which examine an individual’s ability to digest and understand situations and information and a person’s instinctive method of operation, respectfully. Sales candidates are also asked to shadow a sales rep for half a day. “It’s a very reciprocal process,” Georgeson said. “They need to meet as many people as they can and experience our business and culture, and we need to see them in all those different situations so that we can make this decision together.” Much like its contemporaries, Fraser Advanced Information Systems of West Reading, PA, finds its best resource for new hires lies in employee referrals. However, the company revamped its referral program in 2017, which has led to not only an increase in recommendations, but a spike in new hires through that avenue as well. Fraser also relies on job boards and online tools, to a lesser extent, notes Alexandra Goodman, HR manager. But it is the referrals that have enabled the dealership to keep head-count pace as the firm continues to grow.

Assessment Tools

Goodman points out that Fraser’s interview process is intended to onboard individuals who can best move the company forward as opposed to simply filling a cubicle. The initial engagement is a phone conversation that mutually determines whether the opportunity and the candidate mesh. The second stage is an inperson interview and the completion of an Interest Analysis, as well as a DiSC personality profile assessment, which yields where the candidate might best fit within the organization. “After a meeting with upper management, a final role and compensation review with a verbal offer is discussed prior to continued on page 20

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21st-Century Hiring Practices May Ease Process, but Office Technology Dealers Still Tasked in Finding Ideal Candidates a formal written offer being sent,” Goodman said. “At every level, our hiring managers are looking for candidates who can impact Fraser’s key drivers and fit with our core competencies.” Fraser is careful not to bog down the process. The unemployment level in Pennsylvania was 4.8 in March of this year, which is higher than the 3.8 national average through April. That Alexandra Goodman, ratchets up the competition for canFraser AIS didates who are interviewing with multiple companies. “Urgency in timing and the quality of the courtship are important to our process,” Goodman pointed out. One of the key challenges for Fisher’s Technology is ensuring that internal candidates who are promoted have the particular skill sets to adequately fulfill the role of a manager, for instance. Taylor notes that a great sole contributor doesn’t necessarily make for an ideal leader of people. Such a promotion could subtract a stellar sole contributor while adding a mediocre (or worse) manager. “Our challenge is to identify natural leaders and empower them to lead,” he said. “For the rest of our amazing people who

deep down don’t want to manage others, we need to help them grow in skill set, add challenges, and enhance career satisfaction without becoming a manager.”

Extended Engagements

The key to employee retention for Eakes Office Systems is understanding an employee’s internal driver—and finding out what makes them click. “We’re focusing on engagement with our workforce,” Fries said. “The key to finding a good employee and keeping them for the long haul is to make sure they’re engaged in what they’re doing in their job. That’s one of the biggest challenges, because each employee is different, and we need to drive that engagement toward all the employees.” Georgeson believes retention is much less of a problem for imageOne than finding candidates. Once the dealer is able to lock into a team member, regardless of the role, they’re generally on board for the long term. imageOne hasn’t turned over a sales person in at least three years, despite growing its rep bullpen. Overall tenure lengths range from five to 22 years. “The challenge in retention is that it takes consistent, diligent attention and understanding,” Georgeson said. “It also takes great listening, open mindedness, great feedback and a commitment to their development. For us, it’s not a challenge, because it’s what we do. Our top sales team member has been here 22 years and it’s because of the culture that we offer.” ♦

Trusting Gut Instinct May Not Yield Results for Hiring Superstar Sales Reps

ou’ve been in the sales game for decades. Countless dozens of sales reps have crossed your path, ranging from sweet-talking, blue-eyed Fabios who could sell a Windows product to Steve Jobs, right on down to halitosis-challenged, cheesy-plaid-suit-wearing Gil Gundersons who couldn’t sell bread and milk the night before a major snowstorm. And every profile in between. Yet, despite all of your experience with sales reps at every mile marker of the competency map, using gut instincts to choose your next wonder boy or golden girl may not be the best course of action. Keith Roher, CEO and managing partner of Next Level Impacts, an advisory firm that consults with dealers on issues ranging from MPS, BPO, productivity and recruiting, has been down this road himself. The former president and partner of Zeno Office Solutions, Roher is well versed on the topic of why office technology dealerships struggle with the frustrations, and the inevitable turnover, in their quest to bring home and maintain top sales performers. “The number-one issue is expectations. Dealers need to be able to define expectations up front in the interview process,” he said. “In a 2016 Gartner report that asked reps why they left, it wasn’t because of money. The top reason was expectations and the second was poor management. As a

sales manager or vice president of sales, we have a budget to hit and a head-count target to achieve. In order to get to the budget, we make decisions on hiring reps using our gut instincts—which I’ve done as well—but we need to move beyond just that first impression.”

Setting Expectations

Expectations often aren’t met simply because dealers fail to paint Keith Roher, a true picture of the roles these reps CEO/Managing Partner, undertake. Successful firms do a Next Level Impacts better job of breaking down the rep’s assignment, including the percentage of time spent farming and hunting, and more accurately convey what is expected. “We sometimes gloss over that, because we have a tinge of desperation,” Roher noted. “We like the candidate up front— they look and sound good and have the talk track down. But once you get them into hand-to-hand combat mode, they don’t get the job done. So we turn them over.” Roher firmly believes that developing reps is the best way to ensure that a dealer’s best-and-brightest sales performers continued on page 22

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www.enxmag.com | July 2018

We Saw It In ENX Magazine

Trusting Gut Instinct May Not Yield Results for Hiring Superstar Sales Reps will remain on board for the long term. The key here is that the reps need to feel like they’re being developed. That starts with the VP of sales and the sales manager staying on message and not contradicting one another. The moment a sales manager goes off script on an aspect that was driven home during the training period, it will invariably lead to frustration for the rep. So why do we struggle when it comes to gut instincts? It’s not an easy answer. Competition for strong salespeople is through the roof; the job market has improved, and companies are battling for the best of the best. Some candidates hone in on salaries and don’t understand the full value of the compensation package in comparison to positions in other industries. Drawing an apples-to-apples comparison may be misleading. “It’s just a different, more complex sales individual that we’re hiring today,” Roher observed.

of enticements that add sparkle to the eyes of top performers. And candidates will beam at the thought of a 75-cent employer contribution for every dollar invested in the 401K program. Outlining the full breadth of the compensation, like clearly articulating the expectations of the job, will inevitably lead to more impactful hiring. One area that also concerns Roher is the practice of paying annuities to sales representatives. In theory, he feels it’s not a bad idea for smaller dealerships in the sub-$10 million range. “I don’t want my reps waking up in the morning, feeling that they don’t have to bust their ass as hard today because they know they have $2,500 coming in this month because of the annuity. Some owners might then pay a smaller percentage if the reps aren’t consistently hitting their number, but I still have a fundamental issue with it.”

Sourcing Candidates

Journey to Onboard

Roher has sampled all of the credible online resources for hiring and feels that LinkedIn, by far, should be the platform of choice. It is the perfect table-setter—complete with resume, photo, recommendations and connections— providing a holistic view from which the dealer/recruiter can build a conversation with the candidate. The extent to which a candidate takes great care in building that profile also yields insight into the person’s diligence. On the flip side, the easier it is to reach out to employers, the greater the risk of saturation applications. When Roher posts openings for positions, he estimates that 90 percent of the people are wrong for the job. On top of that, roughly 70 percent of that group blasted out their resumes to multiple job posts. That becomes evident when Roher asks a given candidate what attracted him or her about the job, as they tend to fumble their way through an answer or (giving consolation points for honesty) flat-out admit that they don’t remember what they sent. That frustrates Roher to no end. The best candidates, and the ones Roher relishes approaching, are the employed stars who aren’t in the market for a new job. Herein lies the real essence of recruiting. “I find that the diamonds in the rough are the people who are not expecting to know who I am or why I’m sending them a message, because they’re not expecting a message from me,” he said. “I feel I have a compelling story, a strategy that I use. Everyone responds to me—not usually with the answer that I want—but at least we get a dialogue going. It’s a courtship. When a client provides the demographics it’s seeking in a hire, those are the people I’m going to focus on.”

Full Compensation Picture

It is important for hiring managers to paint a complete picture of the benefits that are available to the top performers: Annual contests that offer Rolex watches, high-end electronics and president’s club trips to exotic destinations. Those are the kind 22

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One bit of advice Roher would offer dealers and their hiring team is to tighten up the interview process. Two weeks is the magic number from initial connection to job offer, and he feels many dealers would be well served to remove superfluous steps or consolidate the process. Roher can appreciate the need for multiple screeners, and he advocates a “cooling-off” period between interviews to see if the second impression of the candidate meshes with that gleaned from the initial meeting. But if the process drags out for a month or longer, the greater the risk for losing the candidate to a more-expedient employer. “One thing we did a good job with at Zeno was, before we hired anyone, we prepared them the night before they were to come into the office by giving them a list of accounts they would call the next day,” Roher explained. “That allowed us to see what kind of research they would do on the accounts. The next day, we’d have our manager make a few calls in front of the candidate so that he or she could hear the cadence of the conversation. Then we’d give the person a short script and have them do a call. In doing this, you can quickly smoke out the candidates who are going to embrace it.” Finally, it is important for dealers to employ a salesmanagement-development component to complement its sales coaching and development. “A lot of companies think that teaching or developing managers to recruit is a waste of time, because they need to be in the field,” Roher said. “I totally disagree with that. Especially today, with social media, it doesn’t take a lot of leadership’s time to spend 30 minutes early in the morning or late in the evening, firing off quick little LinkedIn InMails, but there’s an art to it. In addition to benchmark development and leadership development, part of the subset of leadership development should be recruiting and how they’re doing it, instead of just relying on an in-house or outsourced recruiter.” ♦ We Saw It In ENX Magazine

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Business Profile News Briefing

OES-Solutions Takes Great Care in Finding New Partners, Employees

he driving force behind OES-Solutions was never to be just a repository for purchasing product. After all, there is an ample number of other distributors who fit that description. The true wheelhouse for the Westfield, IN-headquartered distributor is catering to SMB dealers with a carefully crafted roster of OEM products that can fill in the gaps of a dealer’s offering, and to act as a partner to be a catalyst for growth. “We’ve always looked at ourselves as a business partner to our customers, and offer them the resource to have full sales support for quoting competitive product in bid situations, and provide full service support on the back end,” stated Al

Thomas, sales manager for OESSolutions. “We like to think of ourselves as a manufacturer’s representative for dealers, somebody they can go to and get immediate assistance and support.” OES-Solutions was founded in 2000 by cousins Chip and Danny Terril, who were later joined by partner Mike Oehler. Initially, the company purchased product from other distributors and sold it out of their Fort Wayne, IN, location. They grew large enough to eventually purchase a building and relocate to Carmel, where it became a direct distributor for Sharp products. This allowed them to facilitate adding dealers through Sharp’s Certified Channel Reseller (CCR) program. OES-Solutions then added KYOCERA/Copystar to its OEM stable, and in 2017 came to terms with Konica Minolta to distribute its product line.

Renewed Focus

OES-Solutions’ ownership team (from left): Chip Terril, Danny Terril and Mike Oehler 24

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The Konica Minolta deal was a rekindling of a previous relationship. Previously, OESSolutions forged a deal with Konica Minolta to offer the Magicolor series of printers, but that line was primarily catered toward the consumer market and didn’t fit OES-Solutions’ business model. This time around, OES-Solutions’ focus is to grow the number of dealers that carry Konica Minolta. “We’re looking for dealers we can partner with to help grab placements they weren’t going to get otherwise,” Thomas added. “We give dealers the reassurance We Saw It In ENX Magazine

Al Thomas, sales manager, OES-Solutions

that they have a true partner out there who is not just interested in accepting a purchase order and shipping a product, then hoping for the best in repeat business. Small- to mid-sized dealers are interested in partnering with someone who is looking at their future growth, which in turn grows our bottom line. If we’re just trying to capture other people’s market share, such as going from one Sharp distributor to another, you’re just moving dollars around. You’re never going to capture 100 percent of one manufacturer’s business in the market. What we’re looking to do is help dealers capture additional business.”

Growth Center

OES-Solutions has enjoyed consistent growth in Konica Minolta placements during a three-month stretch this year. What’s impressive is that the distributor does not, and cannot, target existing Konica Minolta dealers. In spite of this, Thomas projects its Konica Minolta business to represent 15 to 20 percent of its revenue within the first 18 months of engagement. The distributor is methodical in its approach to adding OEM and supplies partners. After a

continued on page 26

OES-Solutions Takes Great Care in Finding New Partners, Employees four- to six-month vetting process, OESSolutions partnered with Clover Imaging Group for remanufactured parts and supplies. Past experiences dictated the process—to an extent. OES-Solutions had “dabbled” in the aftermarket arena in the past, but walked away simply because the sources of product were unreliable at best. “It was a very long decision-making process because we didn’t want to waste our time,” noted Danny Terril, vice president of sales and marketing. “We talked about the bad experience we had year after year with aftermarket supplies and parts. Clover has proved very successful for us and we appreciate their relationship.” It was important for OES-Solutions’ sales staff to have confidence in Clover as well, Thomas added. “It had to be something our sales staff could believe in, because if we go out and promote this product, how will our customers perceive it? Is it something they can feel confident putting into their customers’ locations? We’re always very cautious when it comes to adding product lines, and it’s based on performance and reliability.”

Faith in Partnerships

That faith has been validated. Sales of Clover parts and supplies have increased nearly 100 percent over 2017, and Thomas feels the offering adds to OES-Solutions’ value as a partner to its dealers. “We’re not just looking for the highest margin products to sell,” he said.

A group of Konica Minolta employees take time out for a photo during last year’s Cancer Care Cup golf outing 26

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OES-Solutions’ Danny Terril is surrounded by his wife, Gina (holding Caregiver sign), friends and family during the 2017 Cancer Care Cup Gala

“Profit is not a dirty word to us, but it has to be tempered with overall results. We try to find that blend of right product, great reliability and reasonable profit margins.” OES-Solutions also is highly discerning when it comes to adding

quality employees. Personality and drive are two key characteristics for sales personnel, and Terril is not averse to capitalizing on a good fit when he encounters a good prospect, regardless of whether OES-Solutions is shopping for a new hire. “We bring people in when they fit the type of organization we are and the type of personalities we have,” Thomas noted. “Our people are very committed to our success and growth. We feel we provide an atmosphere where they can be comfortable and take pride in working. The key to our success is that everybody in our building is 100 percent committed to being the best at what they do.” One of the greatest challenges facing OES-Solutions and other distributors in the SMB space is the consolidation of small dealers by larger industry roll-ups, which has reduced the base of potential

Cancer Survivor Danny Terril Organizes Cancer Care Cup to Benefit Families of Oncology Patients

ix years ago, prior to his 40th birthday, Danny Terril received some life-altering news. The vice president of sales and marketing for Westfield, IN-based distributor OES-Solutions was diagnosed with stage three pancreatic cancer. Fortunately, he was able to receive world-class treatment at Indiana University Health North and IU Health Methodist. Doctors performed the Whipple procedure, also known as a pancreatoduodenectomy, and the surgery was a success. Terril is currently cancer-free. Unfortunately, even for those whose prognosis is optimistic, the experience of going through treatments, checkups and follow-up appointments can exact a toll from a physical, emotional and financial standpoint. As a business owner, Terril was in a position to reconcile the financial burden associated with cancer treatments and the Whipple procedure, but in most

cases, it can be a nightmare for not only the patients, but their loved ones as well. During the course of his treatments, Terril and his wife, Gina, got to know doctors, nurses, social workers and other staff at IU Health, as well as patients. Many of the patients struggled financially. They were on medical leave from work, often having exhausted PTO and other resources, and spouses/family members were full-time caregivers in addition to holding down regular jobs. The Terrils met one family that was living in their car in order to survive during the treatment phase, unable to afford the expense of a hotel. Upon learning this, the Terrils gave the family some money for food and lodging. Happy to have provided some comfort for a family in need, the Terrils felt there was more that they could do to assist other people in similar circumstances. So they sat down with Danny’s oncologist, Dr. Jennifer Morgan, and the hospital’s head of philanthropy to discuss a

We Saw It In ENX Magazine

to maintain growth, given that you lose customers every year to circumstances that are out of your control.”

Spreading the Word

Danny Terril (fourth from left) of OES-Solutions presents a check for $40,000 to the Indiana University Health North’s board of directors

partners. Thomas points out the distribution space itself has dwindled significantly over the last 10 years, reducing the core group to about 15 large distributors. Adding new dealers to their book of business will be a significant challenge

moving forward, according to Thomas. “We’ve established a unique niche in the distribution market because we’re not simply a fulfillment center,” he said. “Like any sales organization, you have to continue to add new dealers in order

project. Many organizations raise money to support cancer research, but the Terrils wanted to focus their efforts on supporting families financially during their treatment phase. “We’re trying to relieve the financial burden so that cancer patients, their caregivers and families don’t have to think about money matters,” Terril said. “They can put the focus on what really matters, which is their loved ones.” This was the genesis of the Cancer Care Cup and Gala. An avid golfer, Terril has participated in a number of charity events over the years, and the thought of an annual golf outing clicked with him. Wanting to cast a wider net for the fundraising effort, Gina Terril—who as a senior business development officer with Indiana Members Credit Union has sat on numerous boards that have hosted galas—suggested holding a fundraising dinner the night prior to the outing. Last year’s semiformal event drew close to 200 attendees for an evening of dining, cocktails and entertainment. It raised $40,000, which has enabled the patients’ assistance fund to provide support to handle a multitude of expenses, from hotel stays to prescriptions and rent/mortgage payments.

“I feel like the good Lord has blessed me and has done so in order for me to be a blessing for someone else,” Terril said. “That’s the reason why I spend a majority of my time trying to organize and help bring awareness to this event and this issue. Last year, we had people come in from across the United States to participate. Some very generous companies such as Sharp, Konica Minolta and Clover Imaging Group went out of their way to help support this cause.” Terril is hoping to raise $50,000 from this year’s Cup and gala to support IU Health North Oncology patients and caregivers. The tee-off dinner gala will be held Sunday, Aug. 19 at the Bridgewater Club in Carmel, IN, with the golf scramble slated for the next morning. Corporate sponsorships are being sought, and donations are being accepted for the silent auction. To learn more about how to contribute to the Cancer Care Cup, visit www.cancercarecup.com. Donations can also be mailed to the Cancer Care Cup, C/O Danny Terril, 17735 Commerce Dr., Westfield, IN 46074-8979.

We Saw It In ENX Magazine

Terril is confident in his sales reps’ ability to maintain strong, personable relationships with clients. OES-Solutions is growing its base via word of mouth, print advertising and its website, where dealers can order directly from them and learn more information about the firm. With a national focus and a spirited target on bird-dogging new dealers for its OEM partners, the distributor is confident the Konica Minolta and Clover pacts will fortify its efforts exponentially. Even with the new partners, OESSolutions is constantly on the lookout for additional top- and bottom-line revenue growth opportunities. The distributor has held talks with various, local managed IT entities for a possible solutions expansion. “We’re very busy right now,” Terril remarked. “We need to concentrate on growing not just new Konica Minolta business, but growing our Sharp-based CCR program and the people we turn on to KYOCERA. But we have to jump in with both feet on Konica Minolta. “It’s not like we have 50 reps in our bullpen. We have a small core of people who are adept at what they do. We hold them to high expectations and ask them to take on quite a bit. Our reps average two and a half to three times what the average distribution rep does nationwide in sales revenue.” OES-Solutions continues to scout for dealers who have a gap in their offering that can be addressed by its Sharp, KYOCERA and Konica Minolta lines. Further, they plan to continue taking a measured approach to opening new and complementary partnership lines as opposed to cannibalizing the incumbent OEMs. “We pride ourselves in partnering with our customers,” Terril remarked. “The more we can help them be successful, the more OES will be successful. We’ve had customers who have stuck with us since our inception, and that’s because we always put them first. We go all out, 100 percent every day, and we think that will serve us well in the future.” ♦ July 2018 | www.enxmag.com

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Erik Cagle

DealerBriefing Spotlight News

Culture-Driven XMC Inc.’s Appetite for Acquisition Fuels Growth Plans

stablishing a corporate culture can be a tricky thing for any office technology dealership. Sure, there are base values that any company worth its salt will seek in its employee roster: Honesty, integrity, a sterling work ethic, the willingness to do whatever it takes to satisfy the needs of the customer. After all, how many businesses are actively shopping for uninspired, listless individuals who are looking to exert the least amount of effort to get the job done? But sadly, those types of individuals manage to infest our ranks, at least temporarily, simply because dealers aren’t asking the right questions from the beginning. Taking great care to seek high-functioning individuals to join its team has become mission one for XMC Inc., an exclusive Xerox dealer based in Memphis, TN. It has eight offices scattered throughout Tennessee, Alabama, Georgia, Mississippi

(From left): Ben McCaghren, president, XMC Financial Services; Josh Reese, general manager-West Tennessee; Bob Hamilton, founder & chairman; Sean Seward, president; and Steve Little, senior vice president of sales, at XMC’s awards gala 28

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and Arkansas. The dealership is on pace to register $20 million in sales for 2018—representing double-digit growth over the previous year. Last year, the company underwent a thoughtful self-examination to establish and uphold a corporate culture based on values that aligned with XMC’s mission for satisfying customers and the manner in which it conducts business. Those values now drive the hiring process. Founded by Bob Hamilton in 1991, XMC also reviewed its blueprint strategy in 2016 to answer a pressing question: What path will lead to optimal growth moving forward? After weighing several options, XMC opted to join Visual Edge Technology, adding to a list of 30-plus firms that enjoy autonomous day-today operations while reaping the benefits of platform technology and M&A firepower. The deal was not a means to an end; rather, it opened the door for XMC to be better positioned to make transactions of its own and fortify its standing in the Southeast. XMC President Sean Seward, who is part of the ownership group that includes both Hamilton and Ben McCaghren, shared his views with ENX Magazine on how the transaction is providing the dealership with a foundation for offering enhanced managed services, along with how the Visual Edge partnership will pave the way toward XMC’s ambitious plans to double its revenue over the next three years. We Saw It In ENX Magazine

Sean Seward, President, XMC Inc.

How was business in 2017? SEWARD: We spent 2017 really analyzing our business. We reached a point where a decision was needed on how we would grow moving forward, because you can’t grow fast enough organically. We decided to either start identifying strategic acquisition or partnership opportunities. That’s ultimately how we landed with Visual Edge Technology. In addition, it was a year of investment. We spent a lot of capital on key talent, focused on our physical presence in our offices, and went through a significant cultural revolution to answer the question: If someone left XMC tomorrow, what would they miss? That set the course for an interesting journey in 2017 to focus on how to better support our external and internal customers, the latter of which is our greatest asset, our people. We invested time in our help desk and support structure, as well as our sales and operations group. It touched all aspects of our organization to make them better continued on page 30

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Midwest Automation, NE Netwise Resources, Inc., IN Premier Business Products, MI TLC Office Systems, TX United Business Machines, NH WBS Technologies, FL XMC, Inc. TN, AL, GA, AR, MS Zymphony, FL

Michael Brigner

Michael Cozzens

Senior Vice President

Vice President of Business Development

mbrigner@visualedge.com

mcozzens@visualedge.com

David Ramos

Vice President of Business Planning & Analysis Visual Edge Technology

dramos@visualedge.com

Culture-Driven XMC Inc.’s Appetite for Acquisition Fuels Growth Plans their performance. We’re not looking for a business where the owner is looking to leave, but wants to partner with a world-class organization that can take their business to the next level, similar to our strategy. The most appealing aspect is really creating and identifying opportunities where we can tap into human capital and bring them as a partner inside the XMC strategy to make us better as well. Finding good people, like finding good businesses, really goes hand in hand.

SEWARD: We were approached by several companies and reviewed many acquisition options. There are many strategies out there, including being absorbed or partnering with a competitor. That creates a lot of internal disruption in our business, not only for the employees, but customers as well. That was not something we wanted to do. Visual Edge has a unique strategy we felt was a good fit for XMC. It provided us the opportunity to aggressively pursue our marketplace under an umbrella of high-performing organizations we not only can share best practices with, but also leverage Visual Edge’s strategy in our local markets to grow XMC through acquisition. That was the most appealing aspect. We have a strategy over the next 36 months to double in revenue, and a good portion of that will be focused on key and strategic acquisitions. Visual Edge not only supports that approach, but encourages companies to follow that strategy if they want to grow.

You enlisted the help of an agency to develop core values. Why is the corporate culture a key driver in XMC’s platform? SEWARD: Every business has a culture that is neglected or prioritized. We felt that as XMC was evolving, we needed to focus on what we, as an organization, should look like. One of best things we did was work with GreatAmerica’s PathShare division; Sally Brause and Arial Harland did an outstanding job for us. We hired them to come in and facilitate a focused project on prioritizing our culture. We spent two days in a workshop with those who volunteered to be a part of the project, across all areas of our organization. The results have been amazing to watch. Culture is much more than having a cool office, flex time or bonus and compensation. It’s about designing those key values that everyone subscribes to as they interact with each other, making decisions on a daily basis and communicating to others what is important about the organization they represent. Once you get beyond compensation, I think that’s what people are really looking for in an employer.

XMC has ambitious plans to grow its footprint through acquisition. What are your goals in this regard, and how does working in tandem with VET facilitate this initiative? SEWARD: Visual Edge has a team of experts and data scientists who, when you identify opportunities, can really help fast-forward the process to determine if a potential deal is a good fit. Our role in that process is to identify opportunities, both culturally and geographically, as well as evaluate

What do you look for in your employees and how do you recruit and retain good ones? Given your high standards for culture, is it more difficult to find ideal candidates? SEWARD: One of the first things we did was look at our onboarding process. Once you define the culture, it’s easy to identify a profile that fits. It was apparent from our old process that culture was not the priority. We had a sales/team leader who was a direct report doing the interviews, and at the end, we would turn

XMC employees participated in the 2016 American Heart Association Heart Walk

equipped and more knowledgeable, and allowed us to set proper individual growth targets and deploy relevant training from an execution standpoint. What does XMC pride itself on? SEWARD: Anybody can sell product at a highly competitive price, but to create long-term relationships with customers, you have to be able to provide the experience. Customers appreciate it when you execute exactly as you promised on the front end. Our motto is “Under promising and over delivering.” It is specifically designed to set customer expectations properly, then figure out a way to overachieve those expectations. That enables the experience to start in a positive manner, so that you won’t need to become an expert at rebuilding relationships, which seems to happen a lot in the industry. That’s where XMC is special. From a culture perspective, one of the first tasks that our culture committee members were tasked to address was: Why does XMC exist? Over the course of a couple days, we were able to workshop that and come up with our mission statement, which is “XMC exists to change the world, one experience at a time.” As cliché as that might sound, it’s more relevant today in our industry than it has ever been. We really need to bring that experience. What was the driving force behind joining the Visual Edge Technology (VET) family last year? What value does VET bring to the table? 30

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We Saw It In ENX Magazine

continued on page 32

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Culture-Driven XMC Inc.’s Appetite for Acquisition Fuels Growth Plans

XMC employees participated in a Backpacks for Kids program to benefit local youths

the candidate over to our HR department and they (HR and the candidate) would have a conversation about whether the candidate would fit from a cultural perspective. We realized that was too late in the process, because we already had somebody who was motivated to hire them, and the individual had an expectation that they were going to be hired. So we inversed that entire process. Alyssa Hirsh, who facilitates a lot of the HR duties, is our cultural warrior. She is the first line of communication in the interview process and performs the first interview. That interview does not address the person’s capabilities or ability to execute a key position; instead, it determines if the person represents what we are looking for from a cultural perspective. The fascinating aspect is that we’ve had some candidates who appeared to be good fits, but didn’t pass the cultural interview. That was a little frustrating, until we realized that’s exactly why we designed this process. It’s working, and we’ve completely refreshed the way that we onboard. Is there a product or solution that you are looking to add in the near future? SEWARD: It’s all about what business problem or challenge we can solve for a customer, particularly those that the customer may not know exist. Some areas include workflow applications, content management and contracted managed services. Another intriguing 32

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aspect of Visual Edge Technology is their focus on acquiring managed IT firms. That’s given us an immediate umbrella to identify and recruit a managed services group without building the infrastructure. This allows us to execute at the local level and bring a wealth of experience in expertise and support for the discovery, surveying and implementation of a highly sophisticated managed services contract. What was your dealership’s biggest win last year? SEWARD: Production was a big play for us in 2017 as demonstrated by XMC being awarded the “2017 Most Innovative Production Print Partner”

in the United States by Xerox. In fact, production print represented our largest year-over-year growth bucket. We made significant talent investments in 2016 and it showed last year. We expect this team, led by Ben and our Director of Production, Ralph Weatherell, to grow 20-plus percent in 2018. This market segment continues to demonstrate growth and opportunity. The Xerox Production products give us the most diverse portfolio in the industry. There is not an environment we can’t support. We also were honored that Bob and XMC were named the “2017 Innovative Partner of the Year” across the Xerox dealer channel. Bob is the most tenured partner in the channel and this recognition was timely and very appropriate. We are very proud of both Bob and XMC for this recognition. Also, whenever a company is involved in an acquisition, the initial impression as a member of the organization tends to be negative: How does this impact me and what changes will be made? The greatest opportunity for us is we operate day to day as an independent organization. I’ve enjoyed seeing our people get excited about something that’s much bigger than they ever could have imagined. Our people now have an opportunity to participate in expansion opportunities and potentially assist Visual Edge in some of their needs.

The Memphis Redbirds minor league baseball club played host to a kickoff event for XMC’s sales team We Saw It In ENX Magazine

They can see the strategy develop over time and gain momentum. You can’t put a price tag on psychological momentum, but it’s been huge for our organization. Who do you see as your biggest competition, and how do you differentiate your company from them? SEWARD: There are a number of large, conglomerate dealers in our geography. We’ve been highly successful over the years in taking a boutique approach to the customer conversation. The clients appreciate and understand our approach, and they’re willing to partner with us in order to make their workflow and business processes better. We do well with these strategic, consultative opportunities. Where we have an opportunity to improve is with the “upand-down-the-street” business. We’ve created some customized programs and modified our business strategy to address those opportunities. The conversations are much different, but you need to win that business as well. Whether the conversation is focused on technology or price, it’s important to train our people to recognize that early and adjust the conversation appropriately. What are your goals for the next 12-18 months? SEWARD: At a minimum we must grow revenue double digits organically. We are also seeking to complete two or three strategic acquisitions within the next 12 months, either through satellite opportunities for XMC or tuck-in deals. We’ll also continue to invest a tremendous amount of time and resources in developing our people. If we can create an environment that resembles a leadership factory, we’re always going to be successful, regardless of the business we’re in. As we look for expansion opportunities, our biggest challenge will be to have the right leadership in place. We’re also seeking to drive the managed services division of our organization. We’ve made some strategic decisions and key hires with sales consultants and engineers that our customers have been requesting. They have performed work as needed but focusing on key verticals and customer profiles that fit the mold for us while

Members of XMC’s culture committee, who worked with GreatAmerica’s Sally Brause and Arial Harland to help develop the dealer’s core values

bringing in additional services and new re-occurring revenue is paramount to adding value moving forward. How do you view the industry changing in the future and what are you doing to adapt? SEWARD: The most important thing is to not be intimidated by change, or as we like to say, we need to get more comfortable being uncomfortable. The paradigm is shifting in our industry, and those who are visionary regarding how this industry will look in the future are the ones who are going to take the lead. People say that the days of print are slowly dwindling, but statistics say otherwise. Recent studies show that millennials and other upcoming generations still want to print, the difference is they desire mobility and convenience. If these requirements are not present, they will just choose not to print. That is the difference and required focus as we move forward. But it seems the more that people go paperless, the more their printing increases. If you’re not transforming your business model into creative, additional revenue streams, you could experience some erosion over time. The question is, how do you replace that revenue, and what’s important to your customers that aligns with that revenue opportunity? What do you enjoy most about your job? What are your least favorite aspects of it? SEWARD: I love watching people develop and be successful, and I love having some small role in that process. I started in the industry with XMC in 1993

We Saw It In ENX Magazine

as a delivery driver of a six-employee company. Today, we’re 100 employees and $20 million in revenue. I’ve touched or been a part of just about every aspect of this organization. Seeing people walk in the path I once did and become successful is fulfilling to me. I also enjoy getting to know the people. It’s so easy to get distracted and busy that you forget to connect. That’s something we do very well here at XMC; we recognize that we work hard and also like to play hard. We have a saying: People don’t care how much you know until they know how much you care. Developing a closeness and connection with people of all responsibilities within our organization is exciting to me. Outside of work, what do you do for fun? SEWARD: Our oldest just went off to college, leaving our two boys at home, but within a blink of an eye, they will be gone, too. I’ve spent the last 10-15 years traveling to their sporting events and activities. We like to go to the lake and get away from all the hustle and bustle. I’m realizing, whether I like it or not, that we’re going to be empty nesters in the next five years or so, so we’re planning for the next phase. We enjoy traveling and spending as much family time as we possibly can despite a really hectic schedule. One of our favorite destinations is Turks and Caicos, which has some of the most beautiful, secluded beaches in the world. This summer we’re taking the whole crew down there for some great family time together. ♦ July 2018 | www.enxmag.com

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Erik Cagle

Channel Insight News Briefing

New Leadership, Go-to-Market Strategy and a Collaborative Approach with Dealers Make for a Bold, New Ricoh World That the past year has been challenging to Ricoh Company is an understatement. The Tokyobased OEM registered a $1.6 billion loss for the fiscal year ending March 31, 2018, which was largely a factor of the goodwill impairment of its North American business.

ell before the dismal financials came to light, however, Ricoh had already set the wheels in motion to begin remedying its performance in the U.S. The company launched its global Ignite growth strategy, which builds on structural reforms done in the last fiscal year to reinvigorate Ricoh. A new go-to-market strategy is augmented by plans to invest 200 billion yen in M&A, enabling the company to pursue new growth opportunities. Further, the company appointed Joji Tokunaga, an executive with a wealth of experience in the U.S. market, as president and CEO of Ricoh Americas.

Only last year, Ricoh announced that as part of its new go-to-market strategy, it was selling approximately one-third of its contracts in the SMB space to a select core of dealers. To get a better view of the changes taking place within the organization on a corporate and local level, ENX Magazine had the opportunity to chat with Jim Coriddi, vice president, Dealer Division of Ricoh USA Inc. Coriddi outlined how the Ricoh Family Group of national dealers is working collaboratively with the OEM to bring value on both fronts. He also provided insight as to how the dealerdriven ConvergX conference further solidifies the relationship between the manufacturer and its dealer partners, 34

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one that Ricoh is confident will lead the charge to its resurgence in the United States. Tell us about your career path leading up to your current position at Ricoh. CORIDDI: I’ve been fortunate to have leadership positions in different parts of the Ricoh organization over the last 30 years, including on the channel and marketing sides, plus I’ve run an overall operation. At the time, Ricoh had a division dedicated to IKON that I ran for nearly six years—we had a complete sales, marketing and service operation. We grew that business nearly 60 percent during the six-year period, and ended up with nearly half a billion dollars in revenue. We decided to buy IKON and I was involved in that acquisition. After that, I was on the direct side of the business for about two and a half years, transitioning the IKON business into Ricoh’s direct business, while building a rules of engagement channel management element to our business. In my current position, I’ve been running the Ricoh Family Group dealer business for the last six and a half years. It’s a pretty diverse responsibility that has given me a good perspective in working with our dealers. So much is changing and we must look at the business from different angles and understand marketing better, understand how sales works, right on through the transaction on the direct side. What were some of the highlights in 2017 for Ricoh across all its lines of business, and specifically in the dealer channel?

Jim Coriddi, Vice President, Dealer Division of Ricoh USA Inc.

CORIDDI: What stands out is our new go-to-market strategy. On the dealer side, we enjoyed another solid year of growth with our dealers. They played a significant role in the strategy by expanding our reliance on our dealers in the mid-market. In 2017, Ricoh created three distinct business channels—Enterprise Channel, Commercial and Industrial Printing Channel and the SMB Channel. What are some of the benefits reaped from this new structure? CORIDDI: The three business channels, for all intents and purposes, are sales, services and production. The biggest benefit is the focus that each of the areas is able to get, all the way up to Ricoh Japan. As we develop our strategies in each of these areas, we’ve been able to include global

We Saw It In ENX Magazine

continued on page 36

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New Leadership, Go-to-Market Strategy and a Collaborative Approach with Dealers Make for a Bold, New Ricoh World best practices. We’re in a position where we can bring all of that information together. There are aspects of the European and Japanese markets that we can leverage and take advantage of in the United States. Now we have a newly-named CEO who can add to the coordination and collaboration efforts. This puts us in a great position with a solid structure as we move forward into the future. During Ricoh’s restructuring process, Ricoh also transferred thousands of direct SMB accounts to some of its dealer partners. Can you provide insight into this initiative? CORIDDI: This all falls under the umbrella of our new go-to-market strategy. Selling these customer contracts to dealers in a select number of markets is certainly one of the most provocative aspects of the strategy, and grabbed headlines. But it’s really just one of a number of different tactics that we use to deploy this new strategy. There are elements we feel were much more beneficial to dealers all over the country. We sold a little less than a third of the SMB customer base to 20 dealers. The other two-thirds are managed and maintained by our inside sales group. When you think of all of those accounts, whether they’re managed by dealers or inside sales, 100 percent of those markets—all of the net-new (zero-based) accounts—in that midmarket segment are now the responsibility of dealers. So 100 percent of our dealers in 100 percent of the market is served. They are Ricoh’s play to grow, because our inside sales group is only calling on existing customers in that midmarket sector. We feel strongly that our dealers are extremely capable of managing those type of accounts. When you get into the midmarket range, the local presence dealers can provide the end user— backed by experience and trust—is really second to none. We have a tremendous amount of confidence in our dealer network, and that was the catalyst behind a lot of these changes. With the focus shifted to dealer growth for the SMB customer base, how is Ricoh bringing solutions that help foster dealer growth? 36

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CORIDDI: One of the things we’re doing is providing our dealers with leads that we generate in the midmarket space. Since we’ve deployed this new strategy, the amount of leads Ricoh has provided is five times greater than it was pre-strategy. We’ve built systems to monitor and manage those leads to conclusion and it’s been extremely successful. From a field execution standpoint, we’ve established a national position on the solutions’ side that’s responsible for putting together and developing our national dealer strategy. They’re responsible for training our solutions specialists, and we now have 21 solutions specialists in the U.S. supporting our dealers. There was a dotted reporting line to that position for those 21 individuals, but now we have a solid line of reporting into our region directors for each of the four regions. The reason we’re doing that is we needed to get these people more into every day, mainstream activities. So we have the strategy piece coming out of the national position. We’re building the tools and the resources, and we have the people who are supporting the dealers on the solutions’ side reporting into the regions as part of the market teams.

other adjacent businesses to build on that customer experience and provide more in the form of helping customers manage their information. As to the M&A fund that was announced, while I don’t have specifics, it includes investing in positions that are going to help us develop adjacent businesses. That’s still in development. Can you provide insight as to the work that goes into Ricoh ConvergX? What were you hoping to accomplish with this year’s event? CORIDDI: ConvergX is all about collaborating and working in tandem with our dealers to leverage our respective strengths. Ricoh believes its competitive advantage lies in its ability to bring technology, resources and support to dealers. Our dealers have the strength of having established, solid relationships and trust with their customers. Ricoh brings its power and the dealers bring their local experience and expertise. Working together, we’re focused on helping customers improve their ability to manage information. In planning this year’s ConvergX, we started with a blank piece of paper. We worked with our National Dealer Council

RICOH BELIEVES ITS COMPETITIVE ADVANTAGE LIES IN ITS ABILITY TO BRING TECHNOLOGY, RESOURCES AND SUPPORT TO DEALERS. OUR DEALERS HAVE THE STRENGTH OF HAVING ESTABLISHED, SOLID RELATIONSHIPS AND TRUST WITH THEIR CUSTOMERS.

– Jim Coriddi

In light of the news regarding Ricoh’s $1.6 billion loss, how is the Ignite growth strategy progressing? Tell us about the role M&A will play in its turnaround? CORIDDI: The whole Ignite element of our worldwide strategy that Yoshinori Yamashita, president and CEO of Ricoh Company Ltd., announced in February is all about growth, and it’s building for accelerated growth as we go forward. Part of that is securing and maintaining the current customer base, but what it’s really focused on now is bringing in

to create a dealer survey, and we asked our dealers for input on every element of the event, including the breakout seminars and their topics. Based on the feedback, we came up with 15 different seminars. The dealer response was tremendous; they provided write-in thoughts and opinions, along with some questions. This is definitely the dealer’s meeting; they were involved in the general sessions, seminars and panels. We had a forum with dealer principals only, with every dealer principal sitting

We Saw It In ENX Magazine

continued on page 38

New Leadership, Go-to-Market Strategy and a Collaborative Approach with Dealers Make for a Bold, New Ricoh World down with the entire Ricoh executive management team, enjoying an open discussion. I hope we were able to articulate Ricoh’s vision for bringing the business forward.

become a little myopic, when in reality it needs to be the opposite. There needs to be more of a mindset of integration and a wider perspective. I think Joji brings that to our company.

Can you talk about the roles A4 devices and other new technologies will play in advancing Ricoh’s growth strategy? CORIDDI: A4 continues to grow in our industry. From a Ricoh standpoint, our A4 devices are being launched with more robust capabilities, not only from a mechanical standpoint, but also in being able to integrate with our other products in a common platform on the network. The A4 products are becoming more capable and represent a key element to the expansion of managed print services. Not only is A4 a key element of managed print services, it’s ideal for certain vertical markets such as health care, with features designed specifically for that space.

Ricoh has been consistently honored for its commitment to environmental sustainability, setting internal benchmarks for renewable energy usage, along with providing educational programs for employees and its dealers. Tell us about the passion behind this policy. CORIDDI: Ricoh has been building its products with a basic mindset and focus on environmental sustainability for decades. Its Ricoh’s culture. The awards are great; these are some noteworthy organizations that are doing great things to make sure that they recognize and honor the companies like ours that are leading the way. But this is nothing new to Ricoh at all. Ricoh focused on the

WE MADE SOME VERY OUT-OF-THE-BOX MOVES, PARTICULARLY WITH OUR DEALERS, TO CHANGE OUR GO-TO-MARKET STRATEGY.

– Jim Coriddi

In terms of the collaborative aspect of the technologies, Ricoh is launching a lot of different visual communications devices, making the technology more inclusive with our interactive white boards, projectors and visual displays. In April, the company announced that Joji Tokunaga would take the helm as president and CEO of Ricoh Americas. What qualities does he possess to help mold the Americas as part of Ricoh’s global transformation? CORIDDI: I’ve known Joji for 30 years and I’m very excited about him taking this role. He has tremendous insight about this region of the world, having spent 22 years in the United States. But he also understands Ricoh globally, so he brings a tremendous perspective, a great background and understanding of the U.S. market. Joji’s going to look to establish a real sense of collaboration and a wider perspective on the business that is critical. As technology continues to evolve, the tendency is to zero in and 38

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environment before it was cool to do so and it has been in our DNA for 20 years. What changes in the BTA space are influencing your go-to-market strategy, and what variables will play a role in your strategy going forward? CORIDDI: Our overall goal is profitable revenue growth, which is simple, yet challenging. We’re very fortunate in that the Ricoh Family Group dealer network is a capable group of dealers who are oriented to growth and have the wherewithal to invest in that growth. They have the ability to recognize what is required to grow the business and have the mentality to partner like we do, much like our partners have with us. That is why we feel very bullish on the growth of our dealer channel going forward. From Ricoh’s standpoint, we’re very committed to fueling that ongoing growth; we’re on a positive run with our dealer business and that’s only prompted us to put more reliance in them

and more investment as we go forward. Specifically, one of the things we’re doing is establishing a more customized way of setting up business plans with our dealers. For example, in the past we had general programs and promotions, general resources that were available. What we’re looking to do with many of our dealers now is come up with specific business plans predicated and focused on the growth opportunities that they seek for their businesses and their particular markets. That’s where we’re looking to be pliable enough to take a more targeted approach to growth. What are your goals for the next 12-18 months? CORIDDI: We’re taking a real expanded focus on establishing and investing in specific growth initiatives with our dealers. For one dealer, it may be more of a focus on establishing and growing a production area. Another one might be wanting to shift more of their customers toward a services expansion. With Ricoh, you will see a willingness and focus on specific initiatives, dealer by dealer, to promote growth within each dealership. Ricoh has had the courage to make some very difficult decisions over the past couple of years. It started in Japan; before we went into our Ignite phase, there was another phase established to make sure we were moving all our operations efficiencies the right way. We made some very out-of-the-box moves, particularly with our dealers, to change our go-to-market strategy. Frankly, I think the industry will have no choice but to follow some of those things. We’re very excited going into this fiscal year. We think we made some innovative choices to change the business, and we’re already seeing significant benefits from that. Initially, a lot of people looked at Ricoh sideways for doing some of the things we were doing, but that’s what happens when you innovate. It’s different, and people don’t like things that are different. It’s starting to look better for Ricoh and it is definitely paying dividends from a business standpoint. ♦

We Saw It In ENX Magazine

Sally Brause

Recruitment News Briefing

Fishing for Talent: When Trying to Land New Hires, Take These Handy Tips to Reel in the Best Catch Some friends were talking about going fishing recently, and let’s just say I have a lot to learn in this area. As I talked with a colleague about what I’d need to know if I took up the sport, I realized there is quite a correlation between the art of fishing and the process of hiring top talent.

’m frequently asked how to hire good candidates, so I’ve compiled some tips on how to find a great catch for your next job opening.

Know for what (or for whom) you’re fishing

Before you go down the path of finding your next hire, identify what top talent looks like for your open role. Skipping this step is one of the biggest pitfalls a leader can make when beginning a search. Consider this step like loading your tackle box. Make a list of what is required in the role. How you begin your search heavily impacts every aspect throughout the rest of the hiring process. Be sure to know: • Attitude, interests, and motivation of an ideal hire • Desired behaviors for both the job and company culture • An ideal hire’s knowledge and skills Benchmarking these elements based on the attributes of other top performers will ensure you use the right bait to attract fantastic candidates. This step will help you quickly determine whether to keep a candidate or let them swim to another company. Failure to do this can end up attracting more carp than walleye.

Go where the fish are known to be Top anglers know which fishing holes produce the best results. Likewise, successful recruiting leaders know to use recruiting methods that have worked in the past. At a recent conference, I asked members of a crowd of leaders to raise their hand if anyone was exceptional at 40

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recruiting. Normally, no people raise their hands. In this case, however, a leader’s arm shot up and he and shared what successful recruiters already know: the best candidates tend to come through referrals. Not only do referrals supply the best candidates, but a majority of companies report referrals are their number one recruiting source. So implement your “Always Be Recruiting” practice. Have the mindset that everyone you know is either a candidate for your company, or knows someone who could be a candidate for your company. The most successful recruiting leaders have a broad network to whom they reach out for referrals. This network includes: • Employees • Other business leaders who are invested in their businesses’ success (bankers, attorneys, CPAs, etc.) • Professionals in the community (Rotary, Optimist, Chamber, etc.) • Contacts at colleges (career services, professors, alumni) • Community relationships (sports teams, charity organization, etc.) • Friends and family This recruiting strategy takes discipline and time—invest in it. When implementing this tried-and-true recruiting method, treat it like you would sales. Develop your recruiting database and keep your recruiting funnel active. The goal is to have a number of candidates in the funnel at all times, so when you do have an opening, you already have people interested in your company. I promise you that finding ways to implement your “Always Be Recruiting” approach is more fun and rewarding than sifting through resumes

and interviewing bad candidates if you don’t consistently go that extra mile. Like the angler, keep a few different fishing holes in the back of your mind. Furthermore, I am often asked about how to best get the right people in a recruiting funnel. Once a person has been identified through a referral, the key is to get them engaged in a conversation with you. Let’s look at two scenarios:

Scenario 1:

[Hiring manager] picks up the phone or sends an email saying, “Hi, this is [hiring manager] over at ABC Company and I have an opening to be part of our IT team. Would you be interested in learning more?” Candidate: “No. thank you.” (if any response at all).

Scenario 2:

[Hiring manager] picks up the phone or sends an email saying, “Hi, this is [hiring manager] over at ABC Company. One of the most important things I do is identify top talent for our team. I was visiting with Pat Smith, your professor over at Coe College, and she said you were one of the most dedicated, collaborative and brightest students she’s had. Whenever I hear such great things about a person, I want to learn more. I know you’re currently employed with XYZ Company, but I’m wondering if you’d be open to a confidential conversation so I can learn more about you and where you see taking your career in the future? That way we’ll know whether our company can help meet some of those career goals, either now or in the future. Would you be open to visiting with me?

We Saw It In ENX Magazine

continued on page 42

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Fishing for Talent: When Trying to Land New Hires, Take These Handy Tips to Reel in the Best Catch Candidate: “Sure!” Why are you more likely to get agreement for a conversation in the second scenario? You: 1. Used a referral 2. Highlighted the candidate’s strong qualities which both compliments and shows you’ve done your homework 3. Asked for a confidential conversation 4. Limited pressure to make a move with the language “now or in the future” More often than not, when following this approach, the candidate will take your phone call or meet for coffee. But before they do, top performers will do their research, which brings us to our next tip for success.

Make your bait attractive to the fish

These days, top performing candidates have their choice of employers. It is incumbent on an organization to highlight 42

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what’s great about working for them. Consider these details your bait. Historically, the advantages of working at ABC Company could be talked about during a job interview. Today, selling the advantages of a company must come earlier in the recruiting process. The first thing most top-performing candidates will do when they hear about a company is a Google search. They want to learn more about the work environment and leadership before deciding whether to spend time in an interview process. Here are frequent results that appear in your company’s Google search, which lend insight to who you are as an employer: • Your company website • Information from Glassdoor • Information from Indeed • Company LinkedIn page • Company Facebook page Making attractive bait for your potential candidates means creating an employer brand and presence. This will pay huge dividends in the long run. To start,

ask your best employees what they like most about working for your company. Their answers will start to paint a picture of what is special and unique. Highlight these aspects as you market your company to candidates through social media, web presence and collateral material. If you are just beginning to create an employer brand and presence, you may ask, “where do I begin?” My recommendation is to start with a “Careers” page on your company website. Here are a few things to consider: • Make it easy to access. Create a “Careers” tab at the top of your page specifically for candidates. • Humanize it. Employee pictures, videos and testimonials are great ways to help candidates visualize themselves in your company and get a sense of company culture—something increasingly important to today’s candidates. • Describe “A Day in the Life.” This can be anything that tells a candidate the responsibilities of individual

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roles, why employees like doing this work and what abilities are needed to be successful. • Make it easy to apply. It should only take 2-3 clicks for a candidate to find your website and apply for an opening to increase the likelihood they’ll act. Additionally, balance your need for a lot of information with their desire to quickly and easily apply. Think about the most critical pieces of information needed at this point in the process, and limit your content to those pieces. In addition to maintaining a great “Careers” page, ensure your company is well-represented through reviews and ratings on Glassdoor, Indeed, Facebook and Kununu. Just as we’re accustomed to rating our hotels and restaurants, employees and candidates have grown accustomed to rating employers. Be

aware of your ratings and proactively manage negative reviews to help attract the most-desirable candidates. Use social media as a platform to talk about different aspects of your company, from what makes you a great business to what makes you a desirable employer. The key here is to keep adding new, relevant content on your chosen social media platforms. In the end, fishing for candidates relies on your preparation, forethought, and consistent legwork as a hiring leader. Set yourself up for a smooth experience by following these tips. Continuously identifying qualities and behaviors of your best employees, building and maintaining relationships to keep your referral pool deep, and taking the steps to make employment with company appealing by staying up-to-date with a “Careers” page will help ensure your company gets the next best catch. ♦ We Saw It In ENX Magazine

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July 2018 | www.enxmag.com

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Charles Lamb

Sales Management

Have I Got a Job For You!

ooking for work? The position I have requires 10 to 12 hours a day of completely dedicated effort. If you’re going to be successful, you’ll have to document every single thing you do each day, all day long, in real-time. I want you to know right up front, you’ll face immense rejection in this job, because everything you do will be scrutinized by our main office, your sales manager and our service department. You’re responsible for finding new clients, and most prospects will reject you. It doesn’t hurt much. You might also have to manage a few existing clients, but all of their leases were just renewed, so there won’t be any income from them for at least three years. Should any of those clients not pay as required, you’ll have to collect their payments face to face. And if you can’t get them to pay, we might process a charge back against your

commissions, because after all, they’re your accounts.

Wait, it Gets Better

Your base salary will always be at risk. And even if you’ve worked here for 12 years, if you have a slump in sales, we’ll put you on straight commission to help you focus. Remember, we’re behind you all the way. We won’t force you to memorize our company’s value proposition because, well, we don’t even know what it is. You’ll have to be creative and make up your value as you go along. Our database is old and outdated, but remember: we’re providing that to you at no cost to help you be successful. You can call on any business you want as long as we approve it first. If you sell something to a company we haven’t approved, you won’t be paid for it. Think of us as family! Your gas allowance won’t quite cover your miles but that’s designed to help you manage your territory in the mostefficient manner. Not a big deal, right? On most deals, you’ll only know ballpark costs until you sell the deal, then we’ll adjust the costs to the true cost numbers. It won’t be a major difference, but keep in mind we have to setup and deliver what you’ve sold. Oh and we’ve just been awarded “one of the best places to work” in our marketplace—great news!

Get Moving!

Make sure you’re never late to work, and remember we require everyone to come back to the office at 5 p.m., no matter what. We won’t micro manage you, but 44

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We Saw It In ENX Magazine

we do require you attend these afternoon mandatory meetings. Our service techs, for the most part are extremely talented and capable, but when they mess up, and they WILL mess up, you’ll need to save the relationship they lost. We care about every customer! You’ll have to correct most of your commission statements, and we promise you we’ll refund any correction you find…the month after they were originally due. Since we’re so focused on shooting the chickens in the chicken coop, there are times when we lose sight of the most important things, like driving an effective business development campaign or traffic to our website. It looks good but NO ONE ever goes there. Still, it’s really cool, you should see it. Enjoy this conversation and the lunch I just bought you, because after you come onboard, we won’t speak directly—ever. Your sales manager is a great leader, and she drives a lot of business for us. Her current team members lack motivation, but we’re counting on you and your experience to lead the pack.

And the Benefits

Our benefit package kicks in after 90 days. However if you decide that this isn’t the place for you within that 90 days, no worries, the benefits won’t activate. If you make it beyond the 90-day time frame, you can join our 401K plan after your one-year anniversary, but we don’t match employee contributions. If you’re smart and you sell a lot, you, too, can buy two homes, a boat, an RV, and a Jag like I have. continued on page 46

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Have I Got a Job For You! Are you ready to come aboard? I’ve heard so many of these stories in the last 10 years. I’ve been asked time and time again, how do you find great talent? Can you see it now? Reread the paragraphs above. Or better yet, read it to your sales team—I dare you—and watch the disgust move across their face. Attracting the best talent is only possible if you are the best employer providing a major upside opportunity. If you were standing in front of a room full of talent, what would you say to them that no one else is saying? And in your mind just now, if you read that statement and thought there isn’t anything out there that is unique or exceptional, then you just lost.

Formula for Winning

You win the talent battle with a winning strategy inside a winning company, and you’ll have to provide a winning employment (sales) opportunity. If I could paraphrase the conversation I most often have when asked about 46

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finding great sales talent, it would sound something like this: “Charles, we’re a not a large company, so we can’t pay someone like the big boys can. Our benefits are good but not great, and providing those benefits eats up most of our profit every month. It’s crazy!” Yet they’ll let eight failing sales sales reps remain on their payroll for 15 months, hoping one day that the sales fairy will tap them on the head and change their entire trajectory. Can you hear the defeat in that statement above? Where is the competitive spirit? Imagine selling a copier that way. “Mr. Prospect, our copier has a much higher cost and fewer features, and I won’t be able to provide the benefits that my competitor does, and I know we’re never going to change but I really, really, want your business!” Who would say yes to that? You have to compete for top talent. It’s only when you decide to become a great company that great people enjoy

working for, that you begin to attract the best. Being a great company is only one part of the puzzle, as there are so many things that contribute to attracting and hiring top talent. Most consider compensation as the main hurdle and while I agree that it’s very important, it’s not the only thing that top talent looks for. They’re looking for a great opportunity, plain and simple—a launch pad for a successful life with a strong financial upside. It’s a combination of base salary and a top end that’s not impossible to obtain.

Success is Possible

If you think you’re going to hire highly skilled sales professionals by offering them a territory, gas card and a cubicle, you’re wrong. But if you think you’ll never be able to hire a highlyskilled sales professional, wrong again. Success attracts success. You need sales reps in your business who are slobbering over opportunity, and who brag about their income and the company they work

We Saw It In ENX Magazine

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for everywhere they go. Many people say, “those days are gone!” and to them I say BUNK! If you build it they will come. Better sales numbers don’t come just from hiring more sales reps. As a matter of fact, few sales cultures produce more winners than losers. So hiring more sales reps only guarantees more payroll expense. If you want high talent to come to you, show them why they should. Don’t read this article and tell yourself that you can’t change. You sell MPS everyday with the premise that 3% of a company’s annual revenue is spent on their print environment. Out of that 3%, some 20%-30% is wasted spend and ripe for savings, right? Then you optimize their fleet, change their management, service and supply processes and

drive better financial and performance results. That is a great reason to change—eat your own cooking! Review what you spend in your sales organization. Look for ways to improve, calculate your individual sales rep’s ROI and restructure your sales organization to optimize growth and retention. Change your sales team model to fit your plan. Get rid of the deadwood, and use those funds to install the necessary talent and team to start winning. When I tell dealers this, they immediately restructure the new sales team model to look exactly like what they have today. Don’t waste your time. Restructure your sales team model to win! Once you’ve designed it, hire for it and you’ll find if it’s built right, the talent will find you. ♦ We Saw It In ENX Magazine

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Phone 972-416-3000 • Email sales@ceicopiers.com July 2018 | www.enxmag.com

•

Ken Edmonds

Service Management News Briefing

A Day in the (Training) Life: Service Managers Gain a Wealth of Info at Visual Edge Technology Event I had the privilege of attending the training program that was provided for the service managers of the various Visual Edge Technology companies.

isual Edge Technology is interesting in that it buys successful dealerships, and then provides back-office support while allowing each company to continue to operate the way it did prior to being purchased. Because of this, many of the service managers in the room had never met, and many had never even spoken to each other before this program. They had a variety of backgrounds, with a number of them never having had any formal training as a service managerâ&#x20AC;&#x201D;they had learned their craft the hard way. Additionally, the experience levels ranged from very recent promotions to managers with decades of experience.

The Event

The training program was co-located with the ITEX show in Las Vegas, May 16-17. In addition to the service managers, the sales managers and company presidents were also there for training. While each group received education tailored to their responsibilities, they all were shown a unified approach to becoming better dealers in all aspects.

The Training

The training was provided by the Pros Elite Group, and the service portion was tag teamed by Jerry Newberry and Jeff Kelley. They both have an extensive background in service management, with Newberry being a part of the Global organization from its inception until shortly before the Xerox acquisition. Prior to Global, both worked for Xerox as senior executives and had the responsibility to work with Xerox branches to resolve service profitability and other operational issues. The training covered the following topics:

Financial and Operational Benchmarks

This discussion included the financial model used by most dealerships, one which 48

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allows dealers to assess their performance compared to a standard. This model defines how service revenue and expenses should be allocated, and what the expected results should be. Service should operate at a minimum of 52% profitability, with companies that are extremely efficient exceeding 56% profitability. This model also sets targets for revenue per technician, revenue per machine, salary costs, parts costs and miscellaneous costs. Meeting expectations results in a minimum of 14% operating profit for the companies, and many companies are generating a profit in excess of that. From an operational standpoint, the session provided guidelines of a variety of parameters, including accountable time and first-call effectiveness. It also showed how these metrics tied directly into the financial performance of the service department and the company.

Specific Actions to Fix Opportunity Areas

After reviewing the metrics, the conversation turned to understanding the reasons why a company might not meet the minimum standards, and ways to create continuous improvement in the service department. One of the messages stressed the importance of developing processes that result in consistent performance across the organization. These processes then work to resolve and prevent the issues that negatively affect profitability, while helping improve clientâ&#x20AC;&#x2122;s perception of the company and the service department. The instructors then reviewed the following 15 actions that are essential to achieving the benchmarks: 1. Clearly define and document expectations at all services positions. 2. Monitor industry benchmarks using correct industry parameters. 3. Know your monthly budget for all COGS categories.

4. Define minimum, acceptable performance standards. 5. Use key reporting data to identify opportunities and monitor progress. 6. Implement an effective stack-ranking process. 7. Ensure you are proactive in addressing product-reliability issues and lower-than-acceptable profit margins. 8. Understand how dispatch and parts functions should effectively support service. 9. Develop the right incentive programs. 10. Know how to control parts expense, reduce premature replacements, capture warranty credits and control inventory. 11. Know your role in maintaining acceptable profit margins, 12. Be in the right field structure 13. Develop an effective work process designed to improve machine reliability. 14. Drive your changes down to the tech level on a daily basis. 15. Differentiate your Service Organization.

Assessing the Current Situation

During this section, service managers were divided into teams to review many of the standards that were outlined, and to develop a list reasons why a department might not be meeting those standards.

Creating an Action Plan to Improve the Service Organization

One of the final team exercises was designed to help managers understand the impact of changing behaviors in their departments. They were given a sample company that was having issues, and then asked to list the steps they would take to resolve the issue. Each team had a different approach. After having the teams explain their thinking,

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Jeff revealed the order that he would take, and explained the impact of each decision on both the company and the clients and why they chose the order they did.

The Results

It was interesting to observe this process. What started as a room full of strangers turned into a room full of individuals who were learning from each other. Since each dealer operated differently, they had unique challenge. And as they discussed these with one another, there was a great deal of information that was passed back and forth to help each other. In addition to the new relationships they formed, they all walked away with a wealth of information and an improved understanding of the process to improve their respective departments. I am confident that all of the Visual Edge Technology companies will become more efficient and profitable by applying the information they learned. â&#x2122;Ś

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Technical Tips News Briefing

Xerox WorkCentre 7120 style Tech Info Sheets Part 2: Copy Quality Adjustments

Xerox WorkCentre 7120, 7125, 7220, 7225

Last month we took a first glance at the Xerox WorkCentre 7120 Style, one of Xerox’s mid-sized, full-color copiers/MFPs. We covered the supply items and listed the more-valuable fault codes, briefly touching on how to use the diagnostic function “NVM Read/Write” to clear the codes after you repair the underlying cause of the faults.

his month, we’ll learn more about how to use the diagnostic mode specifically to make adjustments to the color balance, color registration and overall copy quality. Before we get started, there’s something important to follow up on from last month’s article. The code listing was for the WC-7120/7125 models, but the list applies also to the 7220/7225 models if you are aware that all of the fault codes will simply need to start with “3” instead of “0.” For example, instead of the fault code 092-315 as seen on a 7120 machine, you’d see fault code 392-315 if you are working on a 7220 with the same problem. Let’s begin with the basics of getting into, and navigating, the Diagnostic Mode. As is true with most Xerox photocopiers in this weight class, the diagnostic features are extensive. There are some things which are best left untouched unless you’re an authorized dealership with a PWS laptop and the software for backing up settings and reloading firmware. I’ve made mention of those few functions you should avoid entirely in the Diagnostic Menu listed below.

How to get into the Diagnostics Menu: 1. Hold down “0” for at least 5 seconds, then while still holding “0,” press the “Start” button. 2. At the prompt, enter the default passcode “6789,” then touch “Confirm”. 50

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7225 Copier

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The top right of the control panel will show “Service Rep” on an orange tab. 3. Press the “Machine Status” button and choose the “Tools Tab”. 4. With “System Settings” selected in the left column, choose “Common Settings,” then scroll down in the right column and choose “Maintenance/ Diagnostics.” Exiting Diagnostics: Close any open menus and then choose “Exit.” Choose “Exit -Keep Log” so you can still go back to see recent faults if you need to. The Maintenance/Diagnostics Menu includes the following options: • Quick Setup [for things like IP Address Settings] • Software Options • NVM Read/Write [for some adjustments and for clearing some of the fault codes] • Initialize Hard Disk [never do this unless the customer is ok with losing all of their data and settings; a better way to clear a corrupted print job is to use one of the Special Boot Modes— refer to the previous ENX article 7120 style Tech Info, Part 1] • Print Test Patterns [very helpful for troubleshooting copy quality issues] • Delete All Data [never use this, as it initializes many of the machine settings and will result in the loss of the factory setups for System Registration, Image Quality and Scanner Setups]

• Initialize NVM [never use this feature unless you know exactly what you’re doing; this should only be used by people who have the ability to restore the machine from a backup] • IO Check [here you’ll find “Component Control” for testing motors and sensors etc.] • Sub System • Adjustments/Others [Machine ID and Billing settings for synchronizing logic boards; you’ll also find the HFSI (High Frequency Service Item) Counters] • Registration [adjustments for both registration of colors and registration of the image to the paper can be found here] • Faults [choose “Shutdown History” and then “Last 40 Faults” to view the most-recent faults] • Max Setup [adjustments for toner concentration, Scanner Calibration, & 2nd BTR Transfer Voltage] Note that if copy quality is off and you’re at a high elevation (over 1,000 ft. above sea level), there is a way to adjust the charge roll voltage to suit various elevation ranges. That adjustment is designed to help correct some light copy problems which can happen as the charge voltage increases with higher elevations. Before we get into the adjustments which are only available from the Diagnostic Mode, let’s have a look at a great tool which is available in the Administrator’s “Customer Tools,” as well as in Diagnostics Mode.

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Color Calibration:

Procedure: 1. Go into Diagnostic Mode or login as the Administrator (default username = “admin” and the default password is “1111”). If the default password for admin doesn’t work then you will need to get the password from the customer, or go into diagnostic mode to run this adjustment. 2. Press “Machine Status” and touch the “Tools” Tab. 3. Select “Setup & Calibration” and then in the Group column, choose “Calibration” 4. Choose the type of job you want to calibrate colors for and select the “Paper Tray” you have loaded for printing out the Calibration Test Page and touch “Save.” 5. Select “Target” and choose the calibration type (you can choose “Copy & Print Jobs,” ”Copy Jobs Only,” or “Print Jobs Only”), then touch “Save.” 6. Press the “Start” button and a calibration test page will print out along with instructions. 7. Place the calibration test page face down on the platen glass with the magenta squares on the left side of the glass, and press the “Start” button. The machine will display if the calibration was successful or unsuccessful. 8. Go back and repeat these steps for each required Job Type and Calibration Type. Next, let’s concentrate on the adjustments available in the “Max Setup” menu. ATC Sensor Setup (ATC=Automatic Toner Concentration): Here’s a way to perform an ATC Sensor Setup immediately after installing a new drum/ developer cartridge with a known toner density (a new OEM Drum Cartridge comes with the proper toner concentration). Normally you should not need to do this every time you install a new drum cartridge—it should only be done if the concentration seems to be going “off” after a new cartridge was recently installed. Unfortunately, since this adjustment requires a new cartridge, you’d need to have another new cartridge again to do the adjustment.

Procedure: 1. From the Maintenance / Diagnostics screen, choose “Max Setup” 2. Select “Default Developer ATC Setup” 3. Select the “On” button for the color or colors you need to set up and touch “Start.” 4. When the machine is done, it will show the ATC measurement Value, the ATC Target Value and the results (NG means no good—in those cases, double check the ATC Sensor on the drum/ developer cartridge and the wiring and connector leading to the sensor). Toner Density Adjustment (Tone Up/Tone Down): This is useful for a one-time increase or decrease of toner concentration in a particular color. This is particularly helpful if you just solved a Toner Dispense problem which caused light copies in one or more colors as the toner density has dropped too low. Procedure: 1. From “Maintenance/Diagnostics,” choose “Max Setup,” followed by “Adjust Toner Density.” 2. Choose the “Number of Sheets” using the up and down arrows (2-3 pages up or down are recommended). 3. If you enter a positive number, this will increase the TC (Toner Concentration). The machine will print out blank pages while toning up. 4. If you enter a negative number, it will instead decrease the TC. The machine will print solid-area coverage patches to help pull toner out of the developer unit, while not adding more toner during the adjustment cycle. 5. Always adjust only one color at a time. 6. After the adjustment, the machine will display the “TC Measurement” and the “TC Target.” Repeat the steps as needed till you are within +/-30 of the TC Target. Copy Mode Color Balance Adjustment: Note that the Service Manual recommends only using this adjustment if there is a strong customer complaint regarding color rendering in copy mode. Procedure: 1. Get a good full color test pattern or a good example of a full color print and make two copies. 2. From “Maintenance/Diagnostics,” choose “Max Setup,” followed by “Color Balance Adjustment.”

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3. Compare the copies you made to the original. For each color and for each density range (low density, medium density & high density), assign a number from -4 to +4 (negative numbers will result in lighter copies, and positive numbers mean darker ones). 4. Press the “Start” button to save the new adjustment values. 5. Exit Diagnostic Mode and then turn the machine off and back on to reboot it fresh. Make 2 new copies and compare them to see if you got the desired results. You may need to try this procedure several times to get the copy quality to the point where your customer is satisfied. Scanner/IIT (Image Input Terminal) Calibration: You can do a White Reference Adjustment from here. The White Reference Strip is located on the underside of the platen glass. Before you begin, you’ll want to first clean the optics, including the white reference strip, the platen glass and the mirrors. Note that in this same menu, there is also an adjustment available to run a “CCD Calibration,” but that would require the use of a special test pattern (part #: 82E13120). White Reference Adjustment Procedure: 1. Place 10 sheets of clean white paper on the document platen glass. 2. From “Maintenance/Diagnostics,” choose “Max Setup,” followed by “IIT Calibration.” 3. Choose “White Reference Adjusment” and touch “Start” on the screen. Color Registration Adjustment: This will help line up the colors when they stray. Assuming things are mechanically correct and the MOB sensor (Marks On Belt Sensor) is OK, this adjustment is designed to correct misaligned colors. Procedure: 1. From Diagnostic Mode, choose “Registration.” 2. Select “Registration Control Setup Cycle” and press “Start.” 3. The color shift should be corrected automatically. Happy summer, everyone. I hope the adjustments go well for you, and you get the stunningly colorful copies your customers crave out. Hope to see you all reading again next month. ♦ July 2018 | www.enxmag.com

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JULY 2018

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