© 2011 All Rights Reserved. Global Design Center 11.0075 Shown in Winter Cherry and White with Graphic seating upholstered in ArcCom Circuit Pebble #3.
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news Crown Office Furniture, Tulsa Dealer, Hits 1,000 Friend Mark on Facebook Hats off to Dan Stine and his team at Crown Office Furniture in Tulsa, who seem to have figured out the whole social media thing and then some. Crown has been on Facebook for just over six months but already, the dealership can boast over 1,000 friends and growing!
Time to Book Your Trip to NeoCon
How have they done it? Dan points to a combination of efforts that have played out over multiple platforms—the Internet, for sure, but the dealership has also pushed its Facebook presence via radio spots, contests and more.
Just about two months from now, the doors will open at Chicago’s Merchandise Mart for the 2011 NeoCon World's Trade Fair and you and your team need to be there!
“The key to building your Facebook presence is to come at it from the customer’s perspective,” Dan advises.
We may be past the worst of the current downturn and business is finally moving in the right direction, but the rules of the game have changed and changed dramatically.
“We’re not trying to constantly sell something on Facebook,” he points out. “Instead, we aim to post a steady stream of interesting content that will capture interest and keep customers and prospects coming back.” A carefully-planned campaign to give the site local online visibility also helps. In the months after its Facebook page launched, Crown spent about $200 per month on Facebook advertising that reaches about a million Facebook visitors in Northeast Oklahoma. The dealership also posted to local city, business magazine and museums’ Facebook pages to further raise visibility. And the contests were a big friend generator. “We probably had about 350 friends organically who friended through our website or personal contacts,” Dan reports. “The contests added about another 500 friends, with the balance coming from our payper-click advertising and other sources.” And was it all worth it? “It takes a lot of work,” Dan admits. “But our overall online effort—including our Facebook presence—has definitely raised our profile in the Tulsa market and keeps building credibility with customers and prospects.”
Steelcase Dealers Tangram Interiors and Hannaher's on the Acquisition Trail
New tools and technology are reshaping the nature and location of office work. New resources are coming on stream to transform dealer management and marketing. And most importantly of all, new customer demands and expectations and a rapidly evolving mosaic of decision makers and buying influencers are redefining the rules of engagement in a market that is more crowded and competitive than ever. Sure it costs money to attend and takes time away from the business. But how much will it cost your dealership to try and go forward on the basis of only partial information and limited perspective on what’s happening? Certainly, you won’t get answers to all your questions at NeoCon. But you’ll come back with a whole lot more—in terms of critical knowledge and insight—than you arrived with. And that alone is reason to be there. See you at the Mart!
Earlier this month, two Steelcase dealers—Tangram Interiors in Southern California and Hannaher’s in Fargo, ND, both announced acquisitions that expand market coverage for both firms.
Simon DeGroot Editor and Chief
continued on page 4
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Dealer News continued from page 3 Tangram moved into the Fresno, CA market with its acquisition of the assets of Peninsula Business Interiors—Fresno (PBI). The deal makes Tangram the sole authorized Steelcase dealer in Fresno and strengthens what was already a strong presence in the Southern California market. Tangram operates out of a 210,000 square foot corporate headquarters and warehouse in Santa Fe Springs and maintains offices in Orange County, Riverside and Woodland Hills. Tangram will temporarily remain in the current office space previously occupied by PBI while seeking a new location that can support a full showroom experience. In addition, several current PBI employees will remain, including newly appointed general manager Doug Davidian.
will be available to manufacturer reps and local chapters of industry organizations like IFMA, BOMA and IIDA to host their own sessions, Diane noted. “Sustainability is a key part of who we are as a dealer and who Kimball is as a manufacturer,” she added. “A session on the new BIFMA standard was an ideal topic for our first session in our new training space and we were very pleased with the response.”
New Showroom for Keller Group, CA Dealer
In North Dakota, Hannaher's announced its acquisition of Gaffaney’s Office Solutions of Grand Forks, ND. In addition to sharing Steelcase representation, both dealerships also hold Office Furniture USA franchises, adding further to potential synergy opportunities. “This strategic expansion of our market will allow us to better serve our regional customers,” said Hannaher’s president, Paul Hannaher. “We are very fortunate to have the opportunity to expand into the vibrant Grand Forks market with an experienced and talented team already in place.” The new organization employs 32 people between both locations.
Knoxville Dealer Commercial Environments Hosts CEU Event on Sustainability In Knoxville, TN, Kimball Select dealer Commercial Environments is one more office furniture company that is making a concerted effort to go beyond just selling product to position itself as an education and information resource for its clients. The dealership recently co-hosted with Kimball a special event on sustainability that offered an overview of the new BIFMA e3 sustainability standard and level certification. The event, which came with CEU credits, drew some 40 members of Knoxville’s A&D community and also allowed Commercial Environments to present its products and services to a key customer segment. Front and center, reports marketing director Diane Parker, was the dealership’s brand new training center, a 20’ by36’ space that drew rave reviews from attendees.
The conference room at Keller Group’s newly remodeled showroom. The table was custom-designed by Paul Keller. The past couple of years may have been challenging for just about every dealer, but that doesn’t make investing in the business any less important. Just ask the husband and wife team of Paul and Dianne Keller at Modesto, California-based Keller Group. The Kellers recently remodeled their showroom to make a clear statement that no matter how tough things may get, they and their team are here to stay! Keller Group is an Allsteel dealer and the new look showroom, a 10,000 sq. ft. space, highlights their lead manufacturer’s offerings.
In addition to the dealership’s own training efforts, the space APRIL 2011
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Dealer News continued from page 4 The overall look and feel of the space is very open, Dianne reports, with plenty of design features to promote collaborative workstyles. “We’re trying to use the showroom to get people thinking differently about their own spaces and seeing how new approaches can enhance productivity and teamwork,” Dianne explains. So far, at least, it seems to working just fine. “Customer feedback has been very positive,” Dianne reports, “particularly among the A&D community.”
Omaha Business Magazine Names All Makes Best Place to Buy Office Furniture for Sixth Consecutive Year Omaha-based All Makes Office Equipment has been chosen by readers of B2B Quarterly, a business publication that serves the greater Omaha market,
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in point: Commercial Furnishings in Macon, GA.
“We’re honored that All Makes has been recognized as the leading office furniture dealership in Omaha for the sixth consecutive year. Every award we earn is a direct result of the hard work and dedication of each and every team member at All Makes—and we thank them for their continued efforts,” said Jeff Kavich president/CEO Omaha.
The dealership was a sponsor of this year’s Macon Film Festival, a four-day event that showcases the best in new independent films.
B2B Quarterly is mailed to more than 20,000 business owners and executives in the greater Omaha market and boasts total readership of more than 50,000.
In addition, Commercial Furnishings staff also served as volunteers during the event, doing everything from selling t-shirts to ushering at various festival locations.
Macon, GA Dealer Commercial Furnishings Sponsors Local Film Festival Community involvement is one of the hallmarks of just about any successful office furniture dealer these days. Case
“Volunteering is a great way not only to give back and support the arts but also to help to advance the re-development of our downtown community,” says DeAnna.
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There’s a business tie-in as well, reports Commercial Furnishings’ DeAnna Yates. The dealership recently worked on restoration of Cox Capitol Theatre, one of the festival’s key venues in the city.
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APRIL 2011
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BIFMA FEBRUARY NUMBERS:
Orders Up 18%; Shipments Up 29% Earlier this month, the Business and Institutional Furniture Manufacturers Association (BIFMA) released its market statistics for February and once again, the overall message was a positive one for the industry. According to BIFMA, February orders increased 18% year-over-year, while shipments were up 29%. The office furniture industry has now experienced year-over-year order growth for 12 consecutive months, noted analyst Budd Bugatch of the Raymond James investment house. Looking ahead, Bugatch said he expects to see a moderation in the rate of order growth as
more difficult comparisons come into the picture, pointing out that March 2011 numbers will be comparing against positive growth in the previous year for the first time in the current recovery cycle. “Net-net, the February 2011 BIFMA statistics were slightly better than we might have expected and largely corroborate our positive industry thesis,” Bugatch said. “The broad economy appears to be gaining traction and improved business/consumer spending has arguably generated some selfsustaining momentum,” he contended.
Dealers Explore New Growth Opportunities at WPF Annual Conference Award winners from the 2011 WPF Annual Conference (left to right): Hope Roadcap (Nathan M. Loth Award), Jesse Strickland, Great American Art (WPF Manufacturer of the Year), WPF president Greg Nemchick and Jodie Ryndak of Color Art Integrated Interiors (Dealer of the Year ‘Dennis J. Insogna’ Award).
For anyone looking for signs of forward progress in the office furniture industry, the place to be earlier this month was Dallas, where some of the country’s top contract dealers and their business partners met for the WorkPlace Furnishings 2011 Annual Conference. continued on page 8
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Industry News continued from page 7 The theme of this year’s conference was “Survival of the Fittest: Knowledge is Key,” though judging from the overall mood of the meeting, WPF dealers have moved beyond mere survival and are focusing far more on new growth and profit opportunities. In addition to the traditional series of one-on-one meetings between dealers and their WPF supplier partners, the threeday meeting featured a full program of presentations from industry experts and consultants and plenty of dealer networking and idea exchange opportunities. Vince Lombardi, Jr., keynote speaker for the opening day of the conference, set the tone with an impassioned call to commit to rise above the crowd and become a high performance leader. “Growth, change and improved performance don’t just happen,” Lombardi told the group. “You need commitment and discipline and a willingness to pay the price for becoming more than just another face in the thundering herd.” Set goals for yourself and your company that are clear, vivid and precise and commit to doing whatever it takes to make those goals a reality, he urged. Sales trainer Dirk Beveridge, keynote speaker for the conference’s second day, offered an equally challenging message for dealers in the sales management area.
stead, puts a priority on identifying and meeting customer needs profitably In addition, the conference featured two key customer segment panels—one featuring interior designers and other focusing on commercial real estate professionals—as well as an update on 2011 marketing programs from WPF, including a new iPad App for the WPF catalog. Also at the meeting, WPF presented several special awards in recognition of outstanding support for the organization over the past year. Honored as WPF manufacturer of the year was Great American Art, Stoughton, MA. WPF’s Dealer of the Year ‘Dennis J. Insogna’ Award for 2011 went to Color Art Integrated Interiors, St. Louis, while the group’s highest individual honor, the Nathan M. Loth Award, was presented to WPF VP of business development Hope Roadcap. Next year’s meeting will take place at the Hyatt Coconut Point Resort and Spa, Bonita Springs, FL, April 16-18, 2012. For further information, visit www.wpfdealer.com or call WPF’s Cincinnati headquarters (513-563-0048).
How Does Your Dealership Compare?
“Business today is not the same as it was just 24 months ago and if your sales team is selling the same way today as it was back then, you’re already moving backwards,” Beveridge warned. And, he added, “If you’re managing your sales team today the way you were just 12 months ago, you’re starting to lose your business.”
Compare your company’s financial performance to the industry’s best players by participating in the OFDA’s free online
Beveridge pointed to the following four key factors that set top-producing sales organizations apart from the rest of the crowd:
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Dealer Financial Comparison & Benchmarking Guide Survey Participating dealers can compare revenue & expense structure, and profitability with: Dealers with comparable total revenues Dealers in markets of similar size
n A holistic approach to driving sales that aligns sales management with a set of guiding ideas that define the company and its mission
Aligned vs. non-aligned dealers Dealers with equivalent service revenue shares
n A commitment to those guiding ideas that articulates what you as an owner and manager believe in and what you’re asking your organization to believe in
And, receive a FREE custom report aligning your data with relevant benchmarks for easy use in improving performance! To participate, click this ad or call 800.542.6672
n A performance-driven sales management system designed to coach your people “to do what they don’t want to do so that they can become what they want to become” n A system for proactive customer-focused engagement that goes beyond just selling product or services but inAPRIL 2011
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OFDA 2011 Dealer Strategies Conference Will Feature Industry Manufacturers This year’s OFDA Dealer Strategies Conference will feature panel discussions among top executives from several of the industry’s most successful and influential manufacturers, addressing topics of priority interest to dealers and a broad spectrum of their industry partners. These panels are one of the many reasons that progressive dealers and others will not want to miss this premier OFDA event in 2011, to be held at the J.W. Marriott Starr Pass in Tucson, AZ, September 25-27. We encourage readers of OFDealer to visit the OFDA website to review our updated conference program and register at http://www.ofdanet.org/Dealer-Strategies-Conference. Immediately following OFDA’s sponsor recognition and awards breakfast on Tuesday, September 27, three industry leaders will share their perspectives on the “Future of Office Interiors Industry: Changes in Customer Expectations and Dealer Roles.” They include: • Jim Keane, President, Steelcase Group, Steelcase, Inc. • Chuck Saylor, Founder and CEO, izzy+ • Donald Van Winkle, President, Kimball Furniture Group In addition, senior dealer development managers from a broad cross-section of the aligned manufacturing community will address trends and best practices they see in dealer succession situations across our industry. Panelists for our session on “Ensuring a Smooth Transition in Dealer Ownership: Aligned Manufacturers’ Perspectives” include: • Richard Driscoll, Dealer Development Manager, Knoll Inc. • Paul Holland, Manager, Dealer Development, Haworth, Inc. APRIL 2011
• Paul Iles, Vice President, Herman Miller Distribution • Greg Richards, Vice President, Dealer Distribution, Teknion A senior Steelcase dealer development/channel management executive also will participate in this discussion. Other general session panels following the September 26 and 27 luncheons, respectively, will present the topics of: • Emerging Workplace Trends and Major Customer Needs – The Future is Now • Value-Added Role of Dealers from the Perspective of Commercial Real Estate Developers and Facility Managers. In additiona, interactive breakout sessions will explore industry best practices in the areas of sales and marketing, operations and technology, organizational development and strategic planning and leadership. OFDA invites you to review our updated annual Dealer Strategies Conference program at www.ofdanet.org/Updated2011-Conference-Preliminary-Agenda/
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The Test of Sustainability By Jim Heilborn
"Profits should be a reflection not of corporate greed but a vote of confidence from society that what is offered by the firm is valued." - Konosuke Matsushita , Japanese industrialist and founder of Panasonic
“The dot.com bust refers to the years 2000 to 2002, when the bottom fell out of the dot-com industry and hundreds of dotcom companies went bankrupt. All the rest lost a huge amount, if not almost all, of their stock valuation.” www.answer.com
One Saturday afternoon in early 2002, while driving home from an early morning outing, I started flipping through the radio channels and came upon a radio show I recognized: Money Talk with Bob Brinker. I imagine some of you are familiar with this show. I can’t say I was a regular listener, but something very important caught my attention that morning. I’m sorry to say that I only heard the last segment of the show and missed the name of Brinker’s guest that morning. continued on page 12
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Cover continued from page 11 All I remember was that he was the owner of a successful dot.com company. The dot.com bust was still a very hot topic and people were reeling from the huge amounts of money that had been invested and lost, so hearing from someone who had weathered the storm was of interest. What caught my attention specifically was one question that Mr. Brinker asked and the guest’s response. The question, as I remember it was, “Why has your company survived while so many others have failed?”
Does your business meet the test of sustainability? The word sustainability is derived from the Latin sustinere (tenere, to hold; sus, up). Dictionaries provide more than ten meanings for sustain, the main ones being to “maintain", "support", or "endure”. I think it is safe to say that every business owner would like to have the magic formula or right balance that guarantees future success and that will allow their company to endure.
Mr. Brinker’s guest responded by saying that his company was able to survive because they had a sustainable business model, when so many of the other dot.com companies did not.
While there is no single right blueprint that applies to every company, there are some commonalities that have been recognized in successful companies that have passed the test of time.
He explained that too many of the dot.com companies were smoke and mirrors and part of the “gold rush” mentality or wild speculation driving the market at that time.
These commonalities typically involve four key components, each requiring a separate strategy. Those strategies: Financial Performance, Internal Processes, Customers, Learning and Growth.
Too many of these companies, he contended, weren’t required to do enough in-depth business planning and offered very little of substance or value…or at least sustainable value.
There are many ways to approach this subject and many authors have written lengthy books on it.
He said that a majority of these companies had not planned much past their venture capital. Many of them had flashy websites and graphics but didn’t actually have revenue producing products or services! The real plan was to get financing and sell out quickly. It worked for a while but at some point someone had to make a profit without selling out. The company had to be able to generate a profit based on what it offered.
As it is impossible to encompass the entire subject in one short article, I would like to offer a quick way to help start the process by means of the following checklists. Developing the final answers will require a bit of time and energy by you and your employees, but your answers to these Yes or No questions should provide a path to follow.
MEETING THE TEST
The message, for anyone paying attention to the speaker, was quite clear: A company’s business model must spell out and define the reason they are in business and they must have products and/or services that enough other people or companies will value…and for more than just a few years.
Before starting a business, it is wise to “take the temperature” of the market about to be entered. Even with years of experience, established companies should re-evaluate their businesses regularly based on the following criteria:
This was another problem for many of the dot.com companies that went bust. Some of them did in fact have products or services, but they didn’t meet the test of sustainability and therefore met the same fate as many other companies.
Determine the need for the product or service you offer q Yes
q No
What did they do wrong? Many of these companies had very limited offerings or focused on niche markets that were too small to sustain their business for very long.
Will there still be a need in 2 years? 5 years? q Yes
q No
Are we seeing a trend away from what we’ve offered in the past?
q Yes
q No
Do we know what is changing in the customer’s world that will impact what they buy from us?
q Yes
q No
Will technology or the environment make what we sell obsolete?
q Yes
q No
Do we have a contingency plan?
q Yes
q No
Other companies developed products that were outdated soon after being released. Either they didn’t have any other product to replace it or competitors had already come out with a newer upgraded version—a major problem for any technology-based company. In retrospect, it’s easy to look back on those victims of the dot.com crash and highlight what brought them down. But as suppliers to today’s businesses, are we so very different? APRIL 2011
Is there a long-term sustainable need for what we are offering?
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Cover continued from page 12 For example, flat screen monitors and laptop computers have made corner work surfaces unnecessary for most applications, while they have increased the need for monitor arms.
Do we have an active process to evaluate new products and services? q Yes q No
Many companies used to offer onsite electrostatic painting services…not a service upon which to create a sustainable business model when you consider the EPA, Sick-Building Syndrome and the durability of water-based paints.
q No
Each product or service offered should be evaluated to see if there is enough demand. Your company may offer a cuttingedge product, but if there are not enough clients who wish to purchase it, it does not meet the test. It is best to eliminate the offering or outsource it. Have we surveyed our clients recently regarding our products/services? q Yes
q No
Do we have what they value and need now? q Yes
q No
Do we know what products/services will be important in the foreseeable future? q Yes
q No
Are we meeting our sales goals with these products/services? q Yes
q No
Do we have an active process to evaluate non-performing products/services? q Yes
q No
Is someone in the company responsible for these processes? q Yes
Determine the cost of providing the product or service Are our products price-competitive?
q Yes
q No
Are we losing projects on price alone?
q Yes
q No
Do we have the right price and product mix for our market?
q Yes
q No
Can we turn any fixed costs into variable costs?
q Yes
q No
The cost of providing products is fairly cut and dry… list price, discount, freight, labor. The cost of providing service is a bit more complex. It includes many different factors such as labor, wages, taxes benefits, space, taxes, utilities, rent/mortgage payment, insurance, office equipment, maintenance, tools, machines, supplies, vehicles and fuel. Do you have a firm handle on these costs? continued on page 14
Will your Dealership be the First Recipient of OFDA’s Dealership Achievement Award? or an exceptional offfice interiors dealerOFDA is looking fo ship fo or its first-ever Dealership Achievement Award. This prestigious new annual award will honor a dealership with a distinguished record of engagement with and cont butions to the success of OFDA, our industry as a whole, and their own local communities. For details, click here or call 800.542.6672. Deadline for Entries is July 31, 2011.
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Cover continued from page 13 Is our service group a cost center?
q Yes
q No
Is our service group a profit center?
q Yes
q No
Is our service group self-sustaining?
q Yes
q No
Is our internal cost structure higher than outsourcing?
q Yes
q No
Do we have a list of possible outsource partners?
q Yes
q No
Determine the level of service we can provide Do we know what level of service our clients require?
q Yes
q No
q Yes
q No
Does our cost structure allow us to offer that level?
q Yes
q No
Do we know what our clients are willing to pay?
q Yes
q No
Do we have pricing options?
q Yes
q No
Can we provide the level of service our clients require?
Determine "Implementability" Simply put, implementabilty asks the question, “Do we have the resources needed to provide a product or service?” This covers everything from people to equipment. Do we have the financial ability to provide this product/service? q Yes
q No
Do we have the right people to provide this product/service?
q Yes
q No
Does our staff have enough training to offer this product/service?
q Yes
q No
Do we have the needed facilities, equipment, and tools to offer this product/service? q Yes
q No
Determine the impact on your current business Not every business opportunity is a good match for every company. It is important to make sure that a specific product or service offering is a good match for your company and that it won’t have a negative impact on other parts of your business. Winning a large project is great, but not if it means that every resource in your company will be tied up for a long period of time.
High volume, low profit jobs can drain all of a company’s resources to the point that they can’t handle more profitable day-to-day business. That is one reason to look at the previous sections to make sure that all the critical components are in place prior to adding a product line or service. Do we have the resources to handle additional products/services? q Yes
q No
Is there enough profit to make this worthwhile?
q Yes
q No
Will this have a negative impact on cash flow?
q Yes
q No
Will this opportunity require changes to our internal processes?
q Yes
q No
Will this have a long-term impact on the company?
q Yes
q No
Are we getting the ROI we need from our current business units?
q Yes
q No
Are the products and services we offer today going to continue to sustain the company’s growth and ROI?
q Yes
q No
Do we know our break-even numbers?
q Yes
q No
Do all employees understand their contribution to the bottom line?
q Yes
q No
Do we have specific contingency plans in place to respond to business changes— up or down? q Yes
q No
Return on Investment (ROI)
Measure results Every business should have a methodology for measuring their success or failure. It is critical to set some benchmarks that can be reviewed on a regular basis. Setting goals and objectives with specific strategies and tactics helps everyone to stay on course. Do we have a method for tracking results?
q Yes
q No
Do we write goals and objectives for everyone in the company?
q Yes
q No
Do we know what the outcomes are we want to occur?
q Yes
q No
Do we have a formal budget that we follow and review regularly?
q Yes
q No
continued on page 15
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Cover continued from page 14 Do we set Key Performance Indicators?
q Yes
q No
Do we know our Leading Indicators?
q Yes
q No
Do we have sales forecasts?
q Yes
q No
Do we hold regular A/R meetings?
q Yes
q No
Many companies are trying to learn how to do more with less…fewer people, less overhead, smaller facilities. They are realizing the need for operational flexibility. One way for companies in this industry to endure is to understand and educate ourselves and our clients on the best ways to do this. The winners in the ‘new economy’ will be those who know how to address the problems posed by scarcity of resources. It is important to study the past so that we can understand and start to predict the future.
In the mid-20th century the driver was Globalization…Walmart, McDonalds—even companies in our industry like Steelcase and Herman Miller all became worldwide companies. Digitalization burst onto the scene in the latter part of the 20th century. What companies are not found on the Web? According to the article, the next driver will be Sustainability. Products and services that help clients sustain/maintain their businesses and assets. Sustainability is "Meeting the needs of the present generation without compromising the ability of future generations to meet their needs." Author unknown The final question is probably the most difficult one to ask and can’t be answered with a simple yes or no… How long do you want this business to be sustained? The answer will impact all of your decisions.
I read an article recently that discussed the drivers of innovation and growth from the 18th century to the present and then beyond. Starting in the 18th century through the early part of the 20th century, Industrialization was the driver. Think about the cotton gin, small factories, companies like Ford Motors and Singer Sewing Machines.
Jim is an independent business consultant, speaker, writer, and trainer specializing in the office furniture industry. He can be reached directly at 916.434.8711 or jim@jheilbornassociates.com. His website is www.jheilbornassociates.com.
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SOCIAL MEDIA: Defining a Strategy Before Using the Tools By Jason Kirby With over 600 million people on Facebook, 100 million professionals on LinkedIn and 50 million active monthly users on Twitter, it is clear that social media is not just a fad.
This is not a healthy approach because the objectives are not set before the tools.
It is changing the world around us faster than anything ever has in our history.
Forrester Research’s P.O.S.T. method offers a useful framework to create a systematic approach to leveraging social technologies.
It is bringing people together, it is starting revolutions around the globe and it is a new channel for businesses to reach out to their customers. With all this buzz about social media it is easy for companies to say they need to get on track with the rest of the world and create a fan page on Facebook, a blog or a Twitter account. If only it were that simple. Most office furniture dealers start using social media by saying “we should do a blog” or “we should be on Twitter or have a Facebook page.”
What does this mean to a dealer? It means you need to have a strategy.
Following the P.O.S.T. method is going to be vital to any successful social media campaign. Rather than guessing which strategy is right for you, define the people you want to target, clearly articulate what your objectives are and your strategy will become a logical conclusion that makes sense for your company. You then can assess what tools make most sense to allocate your resources to.
P
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It is vital to listen to their conversation and determine whether they are people who create, critique, collect, or just consume content.
Are you trying to increase visitors to your website, increase direct sales, increase your retention rate or become viewed as the expert in your market?
Forrester calls this way of analyzing social media use social techographics and it will help bring clarity to what tools you will need to use and measure the right interactions consumers may have with your brand.
Define whether or not you need to listen, talk, energize, support or embrace your audience to accomplish your objective.
PEOPLE
Before you work on a strategy you need to define who it is you are targeting and assess what social activities they engage in.
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Jason Kirby is director of the office furniture marketing programs at eBoost Consulting, a digital marketing consultancy that has generated in excess of 20,000 qualified leads for its clients in the office furniture industry over the past five years. Jason will be hosting a follow-up webinar to this article with Wayne Breitbarth on “Understanding and Implementing Social Media for Office Furniture Dealers,” where they will walk dealers through setting up a social media strategy the right way for dealers. It takes place on April 28th at 11:00am PST. Register for the free webinar at http://budurl.com/smmwebinar428
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OBJECTIVES
STRATEGY
TECHNOLOGY
Once you know who you are targeting you now have to define the objectives of your social media strategy.
Plan for how relationships with the people you are targeting will develop. Will you be a resource to the A&D community or a customer service organization for your current clients?
The last part is determining which social tech tools you will use to follow your strategy and develop the relationships that will achieve your objectives.
Depending on your objective, your strategy could be strictly to create engaging content on a company blog once a month or to respond to people’s questions on LinkedIn Answers or Quora.com to be a resource to new business owners. It could be to start conversations with the A&D community on Twitter and LinkedIn and become the expert that architects and designers come to for answers and advice.
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This is where most companies start their social media strategy. These tools include, but are not limited to Twitter, Facebook pages, LinkedIn, blogs, Quora, Yelp and much more. Would you decide on what furniture to install and determine where and how to install it without ever talking to the client and identifying what is important them? Of course not. Social media marketing should be approached the same way. PAGE 16
Green This, Green That, Come on, level with Me By Mendy Claridge
In today’s world of information overload, one of the most difficult things for anyone to do is decipher between relevant and accurate data versus generalities with a hint of factual content. Add “green” to this effort and the waters get murky indeed. Although we should all welcome the acceptance of environmental responsibility as an essential business standard, with that acceptance comes a blurring of the lines between what is and is not truly a green product
and more importantly, whether or not there is or is not a socially responsible organization behind that product. We can’t blame the creatives and marketers, as long as they aren’t misleading us, for selling us on green. Green purchasing, after all, is an emotional experience. Your customers are doing more than just buying a product or service, they’re making a difference or fulfilling a commitment. So, when it comes to office furniture, what can you, as a dealer, do to make identifying sustainable products easier?
search that’s needed to truly do this effort justice would require an amount of time per project that’s just not available today for any individual to take on. And to truly identify sustainable products, assessing the final product itself is just the tip of the proverbial “green” iceberg. Nearly two years ago, the Business and Institutional Furniture Manufacturers Association (BIFMA) undertook a certificacontinued on page 18
Basically, you need to level the green playing field. However, the reAPRIL 2011
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level with me continued from page 17 tion program whose goal was to establish the most comprehensive, transparent assessment of office furniture, the manufacturing process and the manufacturer itself. From that effort came level, appropriately named in that it essentially leveled the playing field on sustainable office furniture. BIFMA developed the American National Standards Institute (ANSI) approved e3 Sustainability Standard to establish a common set of metrics to assess sustainability performance in furniture and the components supplied to office furniture manufacturers. The level program validates and certifies products to the multi-attribute e3 Sustainability Standard via six approved third-party certification organizations. They include: Scientific Certification Systems, Bureau Veritas, Intertek, LGA, NSF International and UL Environment. level is to office furniture as USGBC’s LEED Green Building Rating System is to buildings. Manufacturers and products can earn points towards certification which determine whether a product is certified level 1, 2 or 3 with 3 being the highest possible rating. level provides an “apples to apples” comparison of products knowing that key environmental performance elements involved in bringing it to market have been evaluated.
Visit www.bifma.org/ for more information on levels element categories
The level program is similar to LEED’s structure in its element categories: • Materials • Energy & Atmosphere • Human & Ecosystem Health • Social Responsibility Furthermore, the e3 Sustainability Standard and level are fluid and will update APRIL 2011
as new information and elements of sustainability arise. Through continuous improvement, areas of concern or performance drivers are constantly evaluated in the event prerequisites and criteria need to be adjusted to reflect the most relevant social and environmental impacts.
Today, 26 manufacturers and nearly 1,000 products carry a level 1, 2 or 3 mark of sustainability. When level launched, five manufacturers (Allsteel, Gunlocke, Hon, Kimball Office, National Office Furniture) already conformed to the e3 Sustainability Standard and were certified by an approved third-party cercontinued on page 19
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level with me continued from page 18 tification body, therefore earning immediate level certification during program introduction. In less than two years, 21 additional manufacturers have now earned the right to display the level mark on their products. This immediate adoption and pursuit to elevate products to level 2 and ultimately level 3 is inspiring. More importantly, it will make your life easier when searching for, comparing and specifying sustainable solutions. “level’s development adhered to ANSI and EPA guidelines and regulations, but most importantly was the understanding and agreement among manufacturers that this common ground evaluation and certification was essential for the betterment of the industry. The implementation and evaluation process doesn’t happen overnight. So, the rapid uptake by manufacturers and the number of certified products speak highly of our industry’s reverence for the environment and it’s commitment to simplifying sustainability for dealers, designers and end-users,” says Tom Reardon, Executive Director, BIFMA. Many of the credits within the BIFMA e3 Sustainability Standard also contribute to credits supporting Green Building development. Typically, level certified products can help contribute toward LEED points in the following categories: • MR 4 Product Recycle Content • MR 6 Rapidly Renewable
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Materials • MR 7 Bio-based Renewable Materials – Sustainable Wood (e.g. FSC Certified Wood) • IEQ 4 Low Emitting Furniture • IEQ 6 Efficient Lighting Products Furnishing a LEED building with levelcertified products completes an extraordinary effort for an efficient, environmentally-friendly space. Use of the LEED system is steadily expanding. For example, the federal government today requires at minimum LEED Gold on all new construction and major renovations and that means the opportunity to take advantage of specifying level-certified solutions will grow as well. From public and private to education and healthcare, level plays across all markets providing sustainability assurance. It’s truly a win-win situation. Reardon adds, “In today’s world of triple bottom lines, organizations are not only responsible for their actions, but for the services and products utilized. That’s why evaluations and transparency are so critical. level works beneath the surface to bring this transparency to the top in a clear, concise manner.” level equals confidence. The standard ensures manufacturers take a holistic approach versus singular actions to achieve specific green marks. The comprehensive structure and accountability of level mitigates the risk of choosing a so-called green labeled product that re-
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ally might only address one aspect of sustainability. level’s required third-party certification and re-certification period keeps the best interest of the environment as well as you and your customers top of mind. Furthermore, the interior design community recognizes the importance of level, made apparent by ASID awarding their 2011 Innovation Award to BIFMA’s level program. In an industry where there are literally millions of choices, level provides a single, reliable green filter. With the level label, you can be confident about identifying a truly green product from a responsible manufacturer. level is your sustainability due diligence. We have leveled with you on a pretty high level (pun intended or at least unavoidable at this point), so go forth and enjoy the extra time you will now have by simply looking for the level mark and knowing you’re truly giving your customers what they want…more peace of mind. For more information on level, go to www.levelcertified.org for a complete listing of certified products and manufacturers. Also, BIFMA and National Office Furniture offer a 1-hour and 2-hour CEU course on BIFMA’s e3 Sustainability Standard and level for a deeper dive into this important topic.
Mendy Claridge, Sustainable and Technical Product Solutions Manager, LEED AP ID+C, for National Office Furniture educates hundreds of design professionals on BIFMA’s e3 Sustainability Standard and level via CEU’s. Leveraging 15 years of office furniture experience, Claridge has held roles in manufacturing, quality and product line management. She is certified as an American Society of Quality technician and chairs National’s Engineering Change Control Board and National’s Sustainability Council. Her persistent pursuit of environmental excellence is a passion she enjoys sharing to inspire others to do their part in creating a sustainable future.
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2011
Come see. m|t|w
June 13–15 The Merchandise Mart Chicago
Pre-Register by June 11th & Save | Onsite Registration is $25
neocon.com
dealer profile Office Pavilion: Turning Garbage Green By Alicia Ellis
Many office furniture dealerships talk about going green. Recycling office paper, water bottles and using green products are pretty typical for dealers who tout themselves as a green company. And for clients who are invested in recycling and LEED certification, the ability of a dealership to not only offer environmentally friendly products and furnishings but to actually practice what they preach can go a long way towards making a sale. In Reno, NV, and Boise, ID, the folks at Office Pavilion have taken the idea of business recycling to a whole new level and are reaping the benefits for their clients and their company. “Almost every major office furniture manufacturer out there today is working continued on page 22
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Office Pavilion continued from page 21 towards producing ‘greener’ products and reducing their carbon footprint,” says Tom Hegge, president of the $8 million Herman Miller dealership. “They have the people and resources to evaluate options and get results. However, they continue to ship products to their dealers heavily packaged primarily and understandably most of the time because clients expect damage-free merchandise.” According to Hegge, while most dealers do “some” recycling, few really look at that one item in their expenses called trash removal. “It is usually buried in their Utilities expense category and seldom evaluated.” Two years ago, during the down economy, Office Pavilion decided to take a closer look at its trash/recycling practices and costs. They did so primarily as a way to decrease expenses but they also wanted to really focus on the green products of their manufacturer partners and market their own dealership as a green company as well. According to Hegge, many clients will submit receipts for recycling practices to increase their USGBC rating. “What goes out the back door costs you money,” said Hegge. “The idea was to save money and be able to toot our own horn.” To help take on the project, Hegge enlisted Environmental Waste Solutions, a waste management consulting company with a nationwide presence. “They evaluated our current operations and costs with their fee determined by the amount of savings that they can achieve,” explained Hegge. “They made recommendations based on what was best for the way we do business.” A refurbished cardboard baler was the only major purchase for Office Pavilion as they stepped up their green efforts. The baler reduced clutter and freed up warehouse space and also helped gen-
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erate additional revenue to offset the investment, as baled 800 lb blocks of cardboard pay more and recycling companies will pick up baled cardboard. Baling cardboard also cut trash removal costs for the entire company, according to Hegge. Office Pavilion’s hauling company used to pick up a “dumpster” multiple times per week, plus an occasional extra rolloff during periods of heavier work. After implementing its cardboard recycling program, the dumpster is emptied just once per week, and hauling expenses have been reduced by 50%! In addition, Hegge receives $15-$20 per bale for cardboard that before was just worthless trash. Hegge didn’t stop with cardboard on his quest to create a leaner, greener company. “Our hauling volumes have been reduced by an increase in the recycling of many of the materials associated with office furniture installations,” he reports. A little research paid off when Hegge found a vendor willing to take Styrofoam. While the dealership receives no payment for the Styrofoam it provides the vendor, it still decreases trash removal costs and is easily stuffed into and stored in leftover chair bags.
lective commitment from the entire company. Everyone in the company has been required in some way to support this endeavor. From billing to sales, installation to marketing, everyone had to be on board with promoting and performing. In sales and marketing, Office Pavilion has incorporated a green approach on all their proposals and helps clients with USGBC ratings and LEED certifications. “When you fully recycle, you can document where the packaging materials went and that goes a long way,” Hegge pointed out. This was particularly important for delivery and installation crews who were asked to separate and package materials for recycling. A new training program was initiated that allowed installers to break down and efficiently package materials for recycling without taking any more time than they needed when they were simply throwing everything away. “Employees like the new initiatives and believe them to be progressive in the industry,” said Hegge. “They want to work for a healthy business that doesn’t just walk the walk. We talk the talk and it’s paid off.”
Office Pavilion also recycles excess pallets and metal. “There are used pallet dealers in most markets who will pickup for little or no fee,” explains Hegge. “Metal is very recyclable and easy to accumulate broken chair or furniture components into gaylords or chair boxes until we have a small truck load to take to the recycler. Many metal recyclers will also provide an on-site container for this material and will pickup at a lower rate,” he adds. Taking on an initiative this big took a col-
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Uncover Your Competitive Advantage Realign Marketing and Management Strategies to Transform your Business for Future Success OFDA Dealer Strategies Conference Keynote Speaker Jaynie Smith Jaynie Smith’s customized keynote for this year’s OFDA Dealer Strategies Conference will focus on helping you uncover and clearly define your true competitive advantages and realign marketing and management strategies to “transform your businesses for future success” – the theme of OFDA’s 2011 event. In an industry and general economic environment characterized by unprecedented competition and extreme margin pressures, her focus on differentiation of your organization from the competition will help your company close more sales, improve margins and retain more customers.
Keynote Speaker Jaynie Smith Founder & CEO Smart Advantage, Inc.
Jaynie Smith Highlights: 15 Top Performer Awards for CEO Coaching Contributing Business Expert Columnist to Affluent Magazine Featured in telecast with Jay Conrad Levinson of Guerrilla Marketing Association Guest on Bloomberg Radio, WABC Radio "Brinker Show,"& NPR affiliate WLRN Featured in Entrepreneur, IndustryWeek, Investors Business Daily & Business Strategies Author of the best-selling Creating Competitive Advantage (2006) - now in its 10th printing Radio host of Mind Your Biz Today on The Biz - South Florida’s only business radio station
www.ofdanet.org/conference