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news Fifty Years and Counting for Henricksen & Company, Chicagoland-based Dealer Congratulations to Mike Assell and his team at Itasca, IL-based Henricksen & Company, which earlier this year celebrated its 50th year of service to the Chicago area business community. The dealership started out in 1962 when founder Shirley Henricksen was looking to furnish office space for a friend of her husband. It continued as a family business when in 1979, shortly after marrying their daughter Lois, Stephen McPartlin purchased the company from the Henricksens. At the time of that purchase, the dealership boasted just nine employees, working from a single location and generating annual sales of around $1 million. Today, the headcount at the dealership stands at close to 200 employees with seven locations (four in Illinois, two in Wisconsin and one in Minnesota) and annual sales in excess of $140 million! McPartlin retired last year and sold the company to seven members of his executive team and so far, at least, they look well set to maintain his proud tradition of growth. “We had our largest sales month ever in March—$18 million—and 2012 is looking very good,” says EVP Rick Failla. Clearly, the Henricksen team has plenty to celebrate and they did so in style last December, as over 400 friends, family and colleagues gathered to honor Steve McPartlin on his retirement and mark a truly special landmark for the business. Our congratulations to the Henricksen team and here’s to the next fifty years!
How Does Your Dealership Stack Up? OFDA’s 2012 Dealer Financial Comparison & Benchmarking Guide survey is now open. Dealer participation in this, the industry's most detailed financial and productivity benchmarking resource, will allow you to compare your financials to the industry’s best players, determine operational strengths and weaknesses, and set goals for improvement. As a thanks for completing the survey, all respondents receive a FREE comprehensive Survey Report. And, if you’re a member of OFDA, you’ll also receive a FREE Company Performance Report. For more information, click here or call 800.542.6672.
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MARCH/APRIL 2012
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Are You Ready for Tomorrow’s Customers and Their Offices? It’s one of hockey legend Wayne Gretzy’s most famous quotes: “A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.” Anticipating the future may have been important for Gretzky but it’s just as critical for anyone who’s serious about earning a living in the office furniture business. Design concepts and work styles may have undergone some dramatic changes in recent years, but all signs indicate the pace of change going forward is likely to accelerate even more. As reported in our Industry News section this month, researchers at the CoreNet Global real estate firm have found corporate America is in the middle of a major downsizing effort on office space, with nearly half of respondents to a recent survey indicating their average allocation of office space per person will fall to 100 sq. ft. or below by 2017. Also this month, the Marriott hotel chain is predicting that by 2013, almost 35% of the global workforce will work without an office of any kind. What do trends like those mean for your dealership and the products and services your customers will be looking for in the future? How can you begin to tailor your own value proposition to meet what promises to be a dramatic wave of new customer demands and expectations? Some implications come to mind right away: There will be even more demand for furniture that adapts quickly and easily to different users and applications. There will be a premium on product designs that maximize the value of every cubic inch of workspace. Expert guidance and advice on how best to respond to this rapidly changing environment will become even more valued, along with services tied in to balancing the need for a smaller footprint with the desire for a productivity-enhancing, morale-boosting workspace. The more important question, though, is what are we doing about it? When Marriott talks about a third of the global workforce with no office, they’re not offering some futuristic, Star Wars type prediction. They’re talking about 2013. That’s next year …less than 9 months away! The puck that’s being pushed around in the office furniture business these days is moving awfully fast. We need to be committed to moving our dealerships just as fast to where that puck is going to be. PAGE 3
Dealer News continued from page 3 Omaha Dealer All Makes Voted Best Place to Buy Office Furniture for Seventh Consecutive Year Congratulations are also very much in order to Omaha’s All Makes Office Equipment, selected by readers of B2B Omaha, the city’s business publication, as the Best Place to Buy Office Furniture for 2012. It is the seventh-year in a row that All Makes has been so honored.
commented Marathon’s director of special projects Sean Spence. And it didn’t hurt either that both the Center and the caterers who partnered with Marathon on the effort are both current customers.
CA Dealer SideMark Expands with New Sacramento Location
“We’re honored that All Makes has been recognized as the leading office furniture dealership in Omaha for the seventh consecutive year,” said president and CEO Jeff Kavich. “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.”
Marathon Building Environments, MO Dealer, Partners with Customer on Autism Awareness Fundraiser In Columbia, MO, the Thompson Center, one of the country’s leading centers for research on autism, got a welcome gift recently, when Steelcase dealer Marathon Building Environments partnered with a local food services management company to offer a special fundraiser to help kick off Autism Awareness Month. Working together, the two companies raised some $850 from the sale of blue, gourmet cake pops, baked by the food services company, that tied in with “Light It Up Blue,” a national campaign to raise public awareness about autism. In just 48 hours, Marathon and its partner not only sold more than 44-dozen cake pops, but also generated a small avalanche of media coverage, with stories running on local TV and radio and in several local newspapers.
New Showroom for Crest Office Furniture, CA Dealer
Bob Schad and his team at Crest Office Furniture have plenty to celebrate these days after cutting the ribbon on a sparkling new showroom at their Burbank, CA headquarters.
Teknion dealer SideMark Corporate Furnishings recently expanded its California market coverage with the grand opening of a new location in Sacramento. The new Sacramento facility joins Sidemark’s Santa Clara headquarters and branch locations in San Francisco, Los Angeles and San Diego. According to branch manager Catherine Brannan, Sacramento offers some outstanding opportunities for Sidemark, not just in the government market as home to the state capital, but also among its corporate and heathcare prospects and financial institutions. SideMark held a Grand Opening Party in March to officially cut the ribbon on the new facility which drew some 150 representatives of the local A&D community. The building housing SideMark’s new Sacramento showroom is also headquarters for the local AIA chapter, and showroom plans call for plenty of lunch and learns and similar events targeted to members of AIA and other professional industry organizations.
Five months in the making, the showroom, which was designed by Steven Heisler of Beckson Design Associates, totals about 5,000 sq. ft. and features eye-catching graphics and plenty of open space to highlight new work style solutions from The HON Company, Inscape and others. It also provides an ideal environment for industry events, says Crest’s David Wolf. The dealership has already hosted its local IFMA chapter for a special presentation on the "New Office." Timing on the new showroom couldn’t be better, says Wolf. “Business is great,” he reports happily. “Last year was our best year ever and this year has started out very well.” Even more good news may be coming Crest’s way before too long. The dealership was recently nominated for a 2012 IIDA Calibre Award for its work with the Gensler design firm. The award recognizes outstanding project teamwork and collaboration.
“The fundraiser was a terrific way to do good for the community and let people know about Marathon at the same time,”
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BIFMA February Numbers: Orders Up 3%; Shipments Flat The Business and Institutional Furniture Manufacturers Association (BIFMA) recently released its market statistics for February with orders posting a 3% year-over-year increase and shipments coming in flat compared to the same month last year.
the end of the cyclical recovery that began in early 2010,” Bugatch contended.
Results represented a loss of momentum from January’s +11% order gain and 7% shipments increase.
“We remain confident that improving corporate demand and the cycling of initial government declines will drive better order growth in 212, though we continue to anticipate choppy order rates (some positive, some negative) for the next few months,” said Bugatch, who predicted the industry would experience “modest positive order growth” in 2012.
Analyst Budd Bugatch described the February numbers as “in line with our pre-report expectations.” “The recent slowdown in order growth rates is indicative of a transient slow patch (due to declining government demand and tough prior-year growth comparisons) rather than
New Research Shows Per Employee Office Space Set for Continued Downsizing A new survey by the CoreNet Global corporate real estate organization shows per employee office space in North America will continue to shrink over the next five years. For the first time, says CoreNet Global researchers, the average allocation of office space per person will fall to 100 square feet or less for many companies. By 2017, at least 40% of companies responding to the survey indicated they will reach what will be an all-time low benchmark of individual space utilization in North America.
He noted February marked the second consecutive month of positive order growth and said the sequential growth rate was consistent with normal seasonality.
team-oriented space inside a growing number of companies that are stressing 'smaller but smarter' workplaces against the backdrop of continuing economic uncertainty and cost containment.” “There are number of additional factors contributing to the decline in the amount of space per worker,” said Kadzis. “More companies are adopting open floor plans in which employees do not have any permanently designated space at all; rather they use unassigned space when they are in the office, settings that often change daily. This trend is enabled by technology and by cost measures, as they require smaller footprints.”
ECi Launches ECiCloud for DDMS
Currently, just 24% of the respondents reported that the average space per office worker is 100 square feet or less.
Dealer technology provider ECi Software Solutions has announced the launch of ECiCloud for DDMS.
The average space per worker in 2017 will be 151 square feet per worker, compared to 176 square feet today, and 225 square feet in 2010, the survey predicts.
The biggest advantage of a cloud application, ECi said, is its ease of use—just open a web browser, log in and start using it.
“The main reason for the declines,” said Richard Kadzis, CoreNet Global’s vice president of strategic communications, “is the huge increase in collaborative and MARCH/APRIL 2012
ECiCloud can be up and running much quicker than traditional systems and total cost of ownership is less than an onsite solution, ECi said. In addition, the user does not have to worry about server mainteOFDEALER
nance or software uploads, as that is handled by DDMS. “The cloud is where ERP technology is headed, and we are committed to keeping our customers on the cutting edge of this technology to help them improve efficiency and increase profitability,” commented Tom Gerrity, senior vice president of operations for ECi. “Cloud computing opens up a range of possibilities in regards to information sharing and mobile use and we are very excited to introduce this to our customers.”
20-20 Visual Impression Upgrades Support for ‘Specials’ 20-20 Visual Impression now supports graphic “specials” making it easier to showcase creativity. The uprade makes it possible to present every project to customers in Visual Impression, allowing them to visualize the project and specify actual fabrics and finishes from a large number of manufacturers’ catalogs. In addition, CAP Studio and Giza Studio have also introduced enhancements for creating and managing 2D and 3D graphic specials. continued on page 6
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Industry News continued from page 5 Configura announces 2012 CET Designer North American Training Tour
The HON Company Introduces Mobile Furniture Sales App
Configura has announced dates and locations for its 2012 North American Training Tour. The company is partnering with Steelcase and Haworth to offer CET Designer classes in cities across North America. CET Designer Beginner and Advanced classes are IDCECapproved courses with CEUs accepted by ASID, IDC and IIDA. Because of the partnership, the two-day sessions are being offered at a discounted rate of $100 per attendee, Configura said. Dates and locations are as follows:
Steelcase Dealers Minneapolis: May 1-2 Beginner; May 3-4 Advanced Santa Monica: Aug. 7-8 Beginner; Aug. 9-10 Advanced
Haworth Dealers
In an effort to ensure total connectivity with its nationwide network of furniture dealers, The HON Company is launching The HON Gallery Mobile App, a newly developed resource for the Apple iPad that provides easy access to the company’s latest product imagery, literature and videos.
San Francisco: April 24-25 Beginner; April 26-27 Advanced Houston: May 8-9 Beginner; May 10-11 Advanced Denver: July 24-25 Beginner; July 26-27 Advanced Toronto: July 31-Aug. 1 Beginner; Aug. 2-3 Advanced Washington, DC: Sept. 11-12 Beginner; Sept. 13-14 Advanced
While The HON Gallery Mobile App is currently compatible with the Apple iPad, versions for other mobile devices are coming soon.
For more information, contact training@configura.com.
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DP3 Drawer Pull Family Grows Again! Our venerable DP3 drawer pull line continues to maintain its sophisticated appeal; it is subtle yet bold, sleek yet substantial. And now comes in a total of seven sizes! First offered in just one width, 1¼”, then 3” and 4”, a few years ago 6”, and now new sizes of 8”, 10”, and 12” wide. All seven sizes are in stock in seven finishes. Plus, we can do any width and any finish you may require. Please contact us and we’ll take care of it.
“FINE ARCHITECTURAL HARDWARE FOR YOUR FINE FURNITURE”®
w w w . m o c k e t t . c o m Ü 8 0 0 - 5 2 3 - 12 6 9 MARCH/APRIL 2012
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Industry News continued from page 6 To download the App or for information on upcoming versions, visit the HON Ready Portal at www.honready.hon.com and click on the “HON Mobile” quicklink at the bottom of the page.
Steelcase Partners With Marriott, IDEO on ‘Future of Work Innovation’ Research Project Steelcase is partnering with Marriott Hotels & Resorts, and the IDEO design firm on a research project that will explore concepts and solutions for the future of work and meetings in hotels.
Using the Alera website and Local Lead Engine technology, each Alera office furniture dealer becomes part of a virtual dealer network that major search engines, such as Google, Yahoo! and Bing, can crawl, index and rank as part of one unified organization.
Gunlocke's Attract Seating Brightens Up with 33 New Mesh Hues
“By 2013, almost 35 percent of the global workforce will work without an office. We are designing hotels for a new generation that is used to working how, where and often times whenever they want,” said Paul Cahill, senior vice president, brand management, Marriott Hotels & Resorts. The research team showcased its “Future of Work Innovation Co-Labs” at a recent Marriott conference. Ten prototypes were on display that created new technology, space, and service experiences for meetings and work. “People need environments that help them innovate and inspire them to do great work,” said Mark Greiner, chief experience officer, Steelcase. “With business executives working remotely more frequently, work has to go where they go.”
United Stationers Introduces New Alera Website Wholesaler United Stationers has launched a new website for its Alera private label office furniture brand. MyAlera.com is intended to provide office furniture buyers and customers with realtime product information and to connect furniture buyers with local Alera office furniture dealers. The website contains complete information on all Alera products and will also provide furniture news on a regular basis to United’s office furniture dealers and buyers.
Harry Samet of High Point Furniture Harry Samet, owner and chairman of the board of HPFI (High Point Furniture Industries), died March 24 after a lengthy battle against cancer. He was 80 years old. Harry co-founded High Point Furniture Industries with Larry Robinson in 1958 and after starting out as a maker of record cabinets, the company entered the office furniture market in 1964.
Bold color is back and in a big way thanks to a lively selection of special mesh color offerings for Gunlocke’s Attract seating line.A new palette of 33 colors, in addition to original black, expands choices for designers and facility managers specifying Attract’s full mesh back seating. Designed for use with Gunlocke’s Converge conferencing collection, as well as private offices, the line now features such mesh colors as Hot Pink, Lime, the rich sea-blue Lagoon, orange-inspired Light Fire, among many others. Attract Seating features three arm options – self-skinning urethane cantilever, polished aluminum with a urethane insert or a highly-adjustable task arm with pivot and forward/back movement mechanisms. Its ergonomic seat depth adjustment feature delivers a 2 ½” range with six evenly spaced lockable positions. Other ergonomic attributes include tension control, pneumatic height adjustment, knee-tilt and five-position lockout for personal comfort. Contact Gunocke by phone (800.828.6300) or visit online at www.gunlocke.com.
Harry and his wife, Joan were the sole shareholders following the passing of Mr. Robinson in 1990 and he had remained active with the company even through his battles with cancer. He was a board member of many philanthropic groups including City of Hope and Industries for the Blind, as well as various business organizations. In 1997 Harry was honored by the Anti-Defamation League for his charitable services. Harry is survived by his wife Joan, whom he married in 1953; his children and their spouses, Leslie and Carl Samet, Marian Stein and Jerry Samet, Deborah Kintzing and Marc Samet and Suzan and Daniel Rosen, six grandchildren, very close personal friend Risa Hanau and siblings Mollie and David Lafferman, Norman and Sylvia Samet, Leonard and Ellen Samet. In lieu of flowers, memorial contributions may be made to Beth David Synagogue, Greensboro Jewish Federation, B'nai Israel Synagogue (High Point, NC) or Palliative Care of Greensboro. Condolences may be posted online at www.haneslineberryfuneralhomes.com.
In addition, Alera has also begun utilizing a new Internet marketing technology and dealer network tool known as Local Lead Engine. MARCH/APRIL 2012
In Memoriam:
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A Sneak Peak at This Year's OFDA Dealer Strategies Conference networking opportunities were excellent, “theThefeatured speakers and topics were timely and very informative and the individual breakout sessions had enough variety and interest to give us plenty of options.
”
OFDA’s 2012 Dealer Strategies Conference will take place October 28-30 at the Cosmopolitan Hotel in Las Vegas and will offer the perfect setting to meet, network and build personal relationships with the most progressive dealer principals in the industry and their top sales and operations executives.
Jim Lykins, Sales Manager, Target Commercial Interiors, Conference Attendee Among the topics: Strategic Planning and Leadership; Sales/New Business Development and Marketing; Finance, Operations and Technology Implementation; HR/Organization Development and Strategy and Leadership. This year's conference theme, “Going All In to Win,” reflects the dramatic changes in our economic environment and the critical need for clear strategic thinking and strong execution among dealers and their industry partners to reshape their organizations for future success.
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The conference delivered the opportunity not only to receive an abundance of relevant information in a condensed amount of time but also to network with peer dealers from around the country.
”
I have never attended prior to this year but felt “there was just too much going on in our industry
Julie McCarble, General Manager, KV Workspace, 2011 Conference Attendee
Building upon last year’s conference, where 96% of attendees surveyed rated the program either good or excellent, OFDA continues to enhance the value of its education with a compelling dealer program offering motivating speakers, general session presentations, panel discussions and a series of 90minute breakout sessions covering industry and business best practices in key management areas.
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The conference is great for meeting great people, rekindling relationships from past meetings and knowing that every time I attend an OFDA conference, I will walk away with something new I can apply in my business. Daniel Fusco, Principal,
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that needed to be discussed to stay away. The OFDA conference was the perfect venue to hear from many regions in North America. George Coulter, President, Innerspaces, Conference Attendee
Once again, the Dealer Strategies Conference will offer three intensive half-day workshops on Sunday focused on educating and training dealers on strategies to grow business. In addition to a full schedule of breakout sessions and networking events on Monday and Tuesday, both mornings will feature highly sought-after general session speakers whose advice will both motivate and inspire dealers. Emmy award winner and leading speaker on business success, Ross Shafer, CEO of Ross Shafer Consultants, Inc., and
Cubicle Solutions Inc., Conference Attendee MARCH/APRIL 2012
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OFDA News continued from page 8 Kelly will also teach the audience how to spot talent, develop talent and when and why to discard talent. Kelly’s books have sold more than four million copies and have appeared on the New York Times, Wall Street Journal, USA Today, Publisher’s Weekly and numerous other bestseller lists. His titles include The Dream Manager, The Rhythm of Life and Off Balance.
Ross Shafer (left), CEO of Ross Shafter Consultants and Mathew Kelly, president of Floyd Consulting, will be speaking at this year’s Conference. Matthew Kelly, an internationally acclaimed motivational speaker, author and president of Floyd Consulting, will each speak at this year’s conference and serve as kickoff speakers for two days of the conference. One of the most sought-after speakers and seminar leaders on the subjects of customer empathy, personal motivation, and business relevance, Shafer has produced fourteen HR training films and written five books on customer service, leadership and motivation.
“
We all have to do things differently and to hear it come from industry experts at the conference was refreshing. We’ve already started the change and, thanks to the conference, we now have the check in the box that we are doing the right thing.
At the conclusion of the conference, I found “myself re-energized about my business and was able to outline a revised strategy for our company for the next eighteen months. ” Duncan Rowley, Principal,
Office Outfitters & Planners, Inc., Conference Attendee “Over the past several years, the industry has struggled amid difficult economic times,” said Steve Lang, OFDA’s 2012 chairman and CEO of Dancker, Sellew & Douglas in Somerville, NJ. “Our past three conferences have focused on recognizing and addressing tough industry challenges by creating new strategies and transforming your business for future success. Dealers must be more creative and work smarter to generate more value, better profitability and take their businesses to the next level. Both Shafer and Kelly are ideal speakers to highlight this ‘Going All-In to Win’ message and the commitment required to succeed in today’s volatile and uncertain economic environment.” Again this year, OFDA’s intimate display setting keeps product and service introductions within a central meeting area and promotes interaction throughout the conference.
”
Mike Luna, President and CEO, Texas Wilson, Conference Attendee With the world's top economists predicting dismal 1-2% average growth through 2015, the only way to grow an organization is to take market share away from lazy competitors. “Grab More Market Share” will kick off the conference on October 28 and show dealers how progressive companies are getting 15-25% growth, even when their available market is stagnant or declining. Based on the belief that a dealership can only become thebest-version-of itself if the people in the dealership are striving to become the-best-version-of themselves, Matthew Kelly's Tuesday morning presentation entitled, "Talent Fantastic," will encourage participants to become talent fanatics obsessed with searching for the talent necessary to achieve a bigger future for their company.
Informal networking breaks permit more one-on-one interaction with industry business partners, presenters and dealer peers between educational sessions—one of the key benefits of attending our industry-wide conference. More than 100 dealerships have already placed their bets on the quality of this year's conference by pre-registering to attend. If you haven’t yet joined them, there’s no better time than today! For more information about speakers, sessions, conference registration and hotel reservations, visit www.ofdanet.org/Dealer-Strategies-Conference.
“
Normally, I have looked for at least one or two action items I can take away from any summit or workshop I attend. I took sixteen action items from this conference!
”
Jacqui Montano, Sales Manager, Goodman’s Interior Structures, Conference Attendee MARCH/APRIL 2012
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Cofco Office Furnishings A Business Model that Defies the Ages By Alicia Ellis In 1946, David Einstein started COFCO Office Furnishings (then known as Commercial Trading Company) with a dream and a trailer-load of government surplus office furniture from World War II. With a firm belief in developing relationships while maintaining corporate financial stability, David set the foundation for growth that would allow COFCO to become the oldest family-owned office furniture dealership in the Philadelphia/Delaware Valley/Southern New Jersey area. Keen to business development products and furnishings, David became an Allsteel dealer in 1952 and continued to grow the business until turning it over to son and employee Alan in 1976. And under his father’s continued tutelage and engrained philosophies about smart business and building partnerships, during the next twenty years, through a series of strategic acquisitions, hires and facilities expansions, Alan transformed and grew COFCO Office Furnishings. With the addition of Vice President of Sales Joan Waters in 1988 and Will Quinn, Vice President of Operations in 1994, COFCO expanded its reach for hundreds of miles beyond Philadelphia and expanded its service offerings far beyond the typical scope of most dealerships. “I have learned so much about business and the importance of building partnerships from both Alan and David,” said Waters, who remarked that even at the age of 92 David continues to come to the office every day. “We have companies like Lockheed Martin who have been our clients for more than 30 years. Our philosophy is based on
our integrity and financial stability, and we carry that philosophy out by being honest and thorough in our processes. It is our commitment to building these relationships and answering the call for products and services that has developed COFCO into the company we are today.”
(Above) Philadelphia Mayor Michael Nutter (second from the right) was happy to attend COFCO's Resource Center Opening. Shown above with Mayor Nutter are from left to right: Vice President of Sales Joan Waters, President Alan Einstein and Vice President of Operations Will Quinn.
A more than $20-million dealership, COFCO has 42 employees that service 70 percent contract and 27 percent mid-market customers with a smattering of retail sales of used/refurbished furnishings on the side. In addition to corporate furnishings, COFCO also offers healthcare, institutional and its own private label branded panel systems. With warehouse space in excess of 100,000 sq. ft., COFCO is able to offer services beyond the typical scope of most dealerships. In addition to core services like account and project management, design, logistics and installation utilizing their own crews and delivery vehicles, COFCO is able to offer asset management and storage, cleaning and refurbishing, rental/leasing programs and field maintenance programs to new and potential customers. “We are a full-service dealership, meaning we can carry out a full job from the design stage to punch list,” said Waters. “And the variety of value-added services we provide promotes brand awareness as a partner to our existing customers as well as a good selling point for prospective clients.” While many dealers offer asset management services, COFCO’s ability to store large quantities of furnishings for customers truly gives them an advantage; especially in an urban environment where many companies are utilizing small footprints. continued on page 12
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Dealer Profile continued from page 11 “As an example, one of our long-time clients relocated to a smaller space and we were able to inventory and store a lot of their excess furniture for them,” Waters explained. “As needed, we will incorporate their existing products with new products to create new work areas for them and even more importantly, it solidifies COFCO as their dealer of choice.” In addition, while many dealers offer panel and chair cleaning to their clients, COFCO takes the service a step further with field maintenance programs that can be customized to the clients’ liking. In addition to handling all cleaning and repair needs free for the first year, COFCO’s maintenance team will pick up, clean and return items, make scheduled calls on a monthly basis, or are prepared to help on an asneeded basis. “We have clients with service agreements that provide for visits twice a month,” said Waters. “Our team is given a list of things that need to be done and they will spend up to an entire day, repairing and maintaining their existing furniture.” COFCO’s sales force of eight dedicates hours
to networking and prospecting new clients. Opened in 2009, COFCO’s 6,500 sq. ft., LEED-designed Resource Center acts as a think tank or inspiration center and networking location for employees, designers, salespeople and clients with a variety of furnishings from major manufacturers including Allsteel, HON, Gunlocke and, most recently, a selection of products from National Office Furniture. “In addition, in keeping with our commitment to environmental responsibility, our Resource Center features low-flow toilets, automatic sinks and automatic lights throughout as a model and reminder to our partners, employees and customers,” said Waters. “Our manufacturers are as much partners to us as we try to be to our clients,” said Waters. “COFCO’s philosophy as passed down is that we would rather be important to a few key manufacturers and have those relationships mean something.” This relationship development between both COFCO’s manufacturers and its clients also extends into the office. “The average tenure of our staff is 12 years.
People come to work for us and they stay,” boasted Waters who herself has been with COFCO for 24 years. “We even have one high-producing salesperson that has been with the company for 30 years. Long-term relationships based on mutual respect and trust will never let you down.” It is for this reason that Waters and partner Quinn feel secure in their decision to acquire total ownership of COFCO. With a plan in place for Einstein’s retirement from the company in approximately five years, COFCO Office Furnishings will move on to the next phase of their great history with solid leadership. Waters and Quinn are committed to retaining COFCO’s traditional core values while implementing new and innovative changes that will take the company forward.. “We’ve recently been notified by Allsteel that COFCO is the oldest Allsteel dealer in the country,” touts Waters. “So when Alan Einstein retires and the transition of ownership is complete, we may not be the oldest familyowned company in the area anymore but our long-standing reputation, values and credibility will remain for many years to come.”
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The
Bonds thatTie Making the Most of the Manufacturer-Dealer Relationship By Scott Cullen
If there’s one key element that just about all dealers and manufacturers who enjoy a positive relationship together share, it’s solid communications. As long as information and opinions are flowing smoothly both ways, then it’s a good bet the relationship is going to flourish, or at the least, work towards mutual goals in a productive manner. Monica Stinson with Premier Office Solutions, a Philadelphiabased Herman Miller dealer, has been selling office furniture for ten years and in the office furniture business longer than that. She contends the quality of the relationship with her manufacturer is determined in large part by the relationship with the manufacturer’s dealer rep, whether that individual is employed directly by the manufacturer or by an independent rep firm. Her expectations are completely realistic especially when it comes to mutual goals. “The biggest thing we expect from them is a grand showroom tour,” says Stinson. “Herman Miller has a really great one and the reps really know what they have there.” On the other hand, the manufacturer’s expectation is for Premier to get clients into that showroom. Once a client hits the showroom Stinson expects her manufacturer to wow them. “If you can get somebody in love with the product that helps get them past a lot of other hurdles,” says Stinson. Working with multiple dealers in a given market can be a balancing act for the manufacturer. There are two Herman Miller dealers in Philadelphia, for example, and reps are expected to share leads between the two. “And they expect us to turn every client into a Herman Miller client,” says Stinson. “The expectation is bigger on their part. They expect us to bring them more [business] than we expect them to [bring to us].” Premier has been a Herman Miller dealer for two years but her years of experience before that have taught her to recognize the signs of a relationship in trouble. “When you’re doing all the work and bringing in 90% [of the leads], and not getting any in return,” opines Stinson. That she says is one of the biggest red flags that something is rotten in the relationship. Another red flag is not getting a return call when she calls requesting information, especially in a competitive situation. Meanwhile at Office Images, an Allsteel dealer in Rockville, MD, Rick Hammett, principal, offers his take on the dynamics of a solid dealer-manufacturer relationship. From a major manufacturer he’s looking for two-way communications and honesty, particularly on where their strategy is taking them in the future, their product offerings, and what market segments they’re targeting. Plus, he expects them to connect with Office Images on a regular basis for feedback on what Office Images see in their market. continued on page 14
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Cover continued from page 13 “The communication lines have to go both ways,� Hammett stresses. He appreciates the ‘Big Picture’ view that a company like Allsteel provides, especially when it comes to product development. Also important to Hammett are pricing and presentation strategies as well as access to marketing materials and sales tools, particularly those that incorporate new technology such as the iPad. “We look for all that support on a regular basis from our major manufacturers,� says Hammett. “If we get that information, we can be self sufficient.� Hammett says his expectations are not quite on the same scale for his dealership’s second-tier manufacturers. “From them, I expect communication, but not to the level of a major,� says Hammett. He’s noticed changes in the market largely because of the economy and the advent of technology which has reduced the need for certain roles in an organization. “Going back 20 years I worked for a manufacturer and the way we communicated marketing, new products, and new programs was through a market manager who would meet one on one or present a sales meeting,� he recalls. “Now, manufacturers have cut back [on those positions] and rely more on the dealer to pull that information out of them or do it on their own.� Hammett has found that regular webinars help fill some of those gaps that have resulted from fewer manufacturer feet on the street. Overall he’s pleased with the efforts of his manufacturer, especially in competitive situations.
“If I’m up against another major manufacturer on a big job I want to understand what other dealers are doing, what the factory is doing and what specials I can modify to help me win the deal. Allsteel puts a lot of resources into all that.� All Makes Office Equipment Co. in Omaha, NE, is aligned with a half dozen vendors. The dealership has certain expectations when it comes to their vendors’ reps. “It boils down to trust more than anything else,� says Bill Encell, vice president of vendor relations for All Makes. He understands the situation the reps are in, trying to satisfy the needs of multiple dealers. “They’re calling on all their dealers, including my competition, and that’s a tightrope they have to walk,� acknowledges Encell. He still has certain expectations that must be met.
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“We expect them to call on us on a regular basis and to keep us cataloged even though that’s going away with the Internet,� says Encell. “If they’re coming to town and they’re making calls on end users we’d like to have an opportunity to join them on those calls.�
Dealer Financial Comparison & Benchmarking Guide Survey
Encell has been doing this for 30 years and doesn’t think the basic dynamics of the dealer-manufacturer relationship have changed all that much over the years.
Participating dealers can compare revenue, expense structure and profitability with:
“What’s changed is technology,� he says. “Everything is quicker and faster, and there’s more access to information. But in terms of the relationship it still comes down to trust. Some reps you trust and some you don’t.�
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Top 10% off most profitable dealers Dealers with comparable total revenues Dealers in markets of similar size Aligned vs. non-aligned dealers Dealers with equivalent service revenue
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He characterizes his relationship with his current crop of vendors as positive, whether they’re factory-direct reps or belong to rep groups. He doesn’t see a lot of turnover, which is better for building long-term relationships and establishing that trust. Of course there’s the whole different strokes component and some manufacturers are better than others at establishing trust and communications. He also feels the size of the manufacturer is not an issue. “I don’t think there’s a lot of differences—they all have a similar business model and that all has to do with sales and performance from the dealers,� states Encell. “The only thing different is that continued on page 15
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Cover continued from page 14 some reps just do a better job than others. They’re there when you need them and their response time is immediate. Those are the good ones. Some don’t seem to care as much as others. The furniture industry is built on relationships and it’s still people to people.”
one challenge.” It’s expensive for dealers to grow and is not always in their best interest in the short term. I think we do a good job of setting expectations in that area and we plan with our dealers so we both have similar growth expectations.”
OFDA Takes New Approach to Improving Dealer-Manufacturer Communications Through Annual Dealers’ Choice Survey
Furniture manufacturers have an opinion as to what makes for a good relationship too and much of that is aligned with their dealers.
Balancing multiple dealers in a market can also raise the complexity level on both sides and that’s where the aforementioned honesty and what Nelson describes as “early communications in this area” become important.
The office furniture industry has changed dramatically over the past few years and during this time of low margins and commoditization among products, the level of service and support that you receive, whether through your primary or secondary suppliers, is key to maintaining good relations.
“It’s mutual trust and respect between both parties, genuine concern for the well being of each and understanding how each party operates and what’s needed to make each one successful,” says Dave Nelson, vice president dealer development for Allsteel. He echoes dealers’ comments regarding expectations. “We want an honest and open dialog. We work better together that way. We expect them to say what they’re going to do and put forward their best effort, foster transparency, and continue pull through where we both communicate our goals and work towards them,” he explains.
“We team well with our dealers, especially when we get involved early in the process,” states Nelson. “Our field sales people add value and when we add value the dealers appreciate it. Of course there could be challenges. We’ve been able to meet them head on by thoroughly communicating and setting up distribution that’s complementary in most major markets.”
While OFDA’s Dealer Manufacturer Satisfaction Survey-DMSI focused primarily on evaluating the service and support that larger aligned and unaligned system/workstation manufacturers provided to their dealers, OFDA believes that it can add the most value in our industry through a new, more comprehensive survey. The new Dealers’ Choice Survey is specifically aimed at providing broad dealer feedback on the product and service support they receive from non-aligned suppliers, including more specialized furniture manufacturers.
Adding value encompasses bringing in leads, sharing leads and helping the dealer close business, things most dealers can testify to.
Beginning June 1, contract furniture dealers— whether aligned or non-aligned—will be asked to rate their top-volume unaligned suppliers in any or all of the following categories:
Nelson has been working closely with dealers in one way or another since 1999. No matter how open and honest the communication there are always going to be challenges.
“Our dealers want our field sales people involved early on,” adds Nelson. “If they’re not adding value then there’s not as much incentive to get them involved early.”
“Our need for growth and their need for profitability,” notes Nelson citing
Most dealers and manufacturers agree continued on page 16
Systems/Workstations Casegoods Seating Filing Tables Storage Your anonymous opinions will help manufacturers to better understand dealers’ common service and support expectations and needs. For dealers, the survey offers a high-level perspective of the comparative performance of industry manufacturers in areas that dealers typically consider to be most important and allows dealers to consider the potential benefits of forming new relationships or strengthening them with the industry’s highest performing manufacturers as a means to further elevate their marketplace success. Top manufacturers will be recognized with Dealers’ Choice Awards at this year’s OFDA Dealer Strategies Conference, being held on October 28-30 at the Cosmopolitan Hotel in Las Vegas. For more information, visit http://www.ofdanet.org/Dealer-Choice-Award-Survey
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Cover continued from page 15 that even in this era of electronic communication, face-to-face contact still carries a lot of weight. “Anytime we get a chance to meet with one of our dealers we take it,” states Nelson. “We want to let them know we care about their success and are continually learning from them so we can better understand their business and the challenges they face. We work with them to develop win-win solutions. The more time we can spend listening to those smart business operators, the smarter we get. Their local knowledge makes us better.” Having worked with dealers for 10 years, what does Nelson know now that he wishes he knew when he started out in this position? “Pretty much everything,” he says. “The most important thing is for our organization to get a better understanding of their business model because what’s good for them is ultimately good for us.” “It has to start with trust,” adds Paul Iles, vice president, distribution, for Herman Miller. “Trust means three things: We have to believe in the competence of each other, we have to believe in the integrity of each other and we have to believe we’re right for each other. If we start with that then we’re able to have the truthful conversations to work through challenges and move forward together.” Fostering that trust comes down to what Iles says is hard work and consistency of purpose. And for Herman Miller, it’s also recognizing the importance of the dealer channel. “The president of our North American business is absolutely clear that our dealer network is one of the key assets that we have that sets us apart from others,” adds Iles. Iles understands what dealers expect from Herman Miller. “We pride ourselves on our reliability and on-time shipments out of our factories. Every time I’ve looked at any research about what dealers want from their manufacturers, that’s Number One on the list.” The company’s expectations for its dealers center around customer satisfaction, something most everyone knows the dealer channel excels at. “We have a very clear measure of customer satisfaction that we track over a long period of time and we know when we’re getting the job done and when we’re not,” says Iles. There’s also an expectation of sales and growth. “We work very hard to figure out what it takes to win in the marketplace and what
we have to do together to accomplish that,” states Iles. Working with multiple relationships in a given market poses an ongoing challenge. “We have to be consistent in terms of the relationship and confidential with the information that’s been shared and give everybody an equal opportunity to move forward,” says Iles. What can a dealer do to enhance the relationship with Herman Miller? “The same things we do,” responds Iles. “Look at this as a partnership, recognizing we’re in this together. Most of the time it’s mutual success, but as in a marriage, it’s not always perfect. As long as we approach each other with the right attitudes and respect for each other, we can work through the challenges and be consistent in what we’re trying to get done.” “Our best dealers and the ones we have a great relationship with are those where there’s strong communication,” says John Finken, senior vice president, sales and distribution, for Knoll. The best situation, he contends, is when the dealer and the Knoll regional manager are on the same page and can go to market together as one seamless team. “I ran Boston for 13 years and we would go into a presentation with absolute coordination—any one person could fill in for the other person, Knoll or dealer personnel—with respect to the client,” states Finken. He concurs with the others about how communication helps foster a successful relationship, noting that the dealer is an extension of the manufacturer. His expectations are consistent with virtually any manufacturer in the business. “I want my dealers to be healthy, profitable and grow, but we need to grow together and at least at a similar pace,” states Finken. And what do dealers expect of Knoll? “They want to be able to order from us and have it delivered on time, correct, and complete 100% of the time,” says Finken. “They want to make money and we want them to make money. Dealers who are profitable have the ability to have better showrooms, more feet on the street and quality people.” What can a dealer do to enhance their relationship with Knoll? “Be up front about their business strategies, their growth strategies and the lines they carry. If they’re thinking about adding another line, there should be an upfront conversation about it so it doesn’t come as a surprise or is viewed as a threat or potential cannibalization of what could be Knoll business.” Ultimately, the best relationships are when both sides understand each other. “I encourage my team to put themselves in the shoes of the dealer and see what their world is like and vice versa,” says Finken. “A great relationship is a two-way street.”
Scott Cullen has been writing about office technology and the office furniture industry since 1986.
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HIRING a winning sales team
By Debbie Junge Studies show that in most selling organizations, 20% of the salespeople produce 90% of the sales volume. What is the percentage in your dealership? As owners and sales managers are you included in that percentage? It is not uncommon to find that only a limited number of salespeople or just owners and managers generate the majority of new business development efforts.
Short term, this may be a good strategy but over time it may well limit growth or options for retirement and exiting the business. With the economy in recovery mode, there is no better time than now to invest in hiring the top level sales talent you will need to drive growth and sustain stability going forward.
Two Distinct Positions When it comes to sales, there has been a tendency in our industry to take a “one size fits all� attitude and make sellers responsible both for business development and for account management activities. This has been a typical business model for most startups and small dealerships out of necessity due to limited resources. Consider taking the plunge at the right time to separate those roles and responsibilities and aim to put in place a well-balanced sales team that consists of people in two distinct and different positions: business development managers and account managers. While both positions contribute to the bottom line, the focus of each role is completely different. MARCH/APRIL 2012
The account manager has the capabilities to manage and grow business in assigned target accounts and some self-driven business, whereas the business development manager is constantly networking and they have strong referral partners and a consistent number of leads and referrals to pursue.
A business development manager should be supported by an account manager and/or team that they can engage to assist with the work involved in securing, closing and managing the projects. This will give the business development manager more time to prospect and qualify more new business opportunities.
Where Should You Look? Finding an account manager is typically easier. While our industry has an abundance of excellent AMs that can be recruited, you should try, whenever possible, to promote from within. Develop mentoring programs to nurture and train current designers or project managers who have potential for an expanded account management role. If you are looking for a business development manager, your most effective first step is to get out of your box!
BUSINESS DEVELOPMENT MANAGERS (BDM) + ACCOUNT MANAGERS (AM)
You might be fortunate to find an experienced BDM through an industry recruiter or by word of mouth. However, they are often difficult to come by.
BALANCED SALES TEAM
There might possibly be an account manager in your company continued on page 18
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Winning Sales Team continued from page 17 with the right skill set to become a fullfledged BDM. If so, provide the training and coaching to elevate them to the next level. If not, consider looking outside of the industry for sales talent with strong networking capabilities, local contacts and the competencies for the job. With the right industry training these individuals can bring a fresh and enthusiastic approach to new business development.
Hiring Top Performance DNA Bad hires are expensive. When you take into consideration the time, money and resources spent training and ramping up a new salesperson, the cost of turnover is a minimum of two to three times the cost of their salary, taxes and benefits. What is difficult to calculate is the true cost that comes in the form of revenues and profits from potential new business opportunities that were lost or never uncovered because of bad hiring decisions. Whether you are hiring an experienced contract furniture seller or a new hire to the industry, finding the right DNA for each position is critical. Not only are skill sets and competencies different for a BDM than they are for an AM, the new paradigms of selling in today’s business climate has raised the bar when it comes to finding viable candidates. A comprehensive hiring program for each sales position should include the following steps: Define the job description and expectations
Guidelines for On-Boarding New Hires The recruitment process does not end after the deal has been closed. Talented new hires should not be given the freedom to sink or swim. Integrating them into your company’s culture requires a well thought out on-boarding program. On-boarding or ‘Organizational Socialization’ is the process by which new salespeople acquire the necessary knowledge, skills and behaviors to become effective. The process should consist of: Overview of HR paperwork and benefits Handbook policies and procedures review Introduction to employees Technology set-up and training Review of processes and forms Day(s) in each department and in the field Review of their new role and expectations Review of sales reports and CRM tool Development of personal ‘plan of action’ Realistic ramp-up time
Training and Coaching for High Performance Hiring them can be tough, but keeping them can be tougher!
Develop incentive packages that motivate
A great recruiting and integration process will minimize turnover. To improve your “hiring batting average” it’s important to have an effective training and coaching program.
Recruit from inside/outside of the industry
Elements of a successful training and coaching program include:
Identify skill sets and competencies
Screen the candidates with behavior based interviews with key stake holders Validate with profile assessment tools Conduct detailed reference and background checks Close the deal…make the offer and hire MARCH/APRIL 2012
Product & service training Industry training
For new hires from outside of the industry, training on the industry itself will help new and recently promoted hires to gain knowledge and insights about the industry, acquire more confidence and professionalism, and accelerate ramp-up time. Every company should have a formal sales training program for all sellers so that there is a common language and process to qualify and close opportunities. Newcomer should be exposed to the training programs early on so that they are fully integrated into your sales process. The sales manager or leader should meet with the new hire on a regular basis to provide training reinforcement and coaching for high performance. Involvement in daily sales activities, prebriefing and debriefing of sales calls, positive and negative feedback, and regular review of expectations and goals are all key elements of developing top performers. Reach out to professional organizations that can help you with establishing your hiring program, recruiting and training if you do not have the internal expertise in-house. And keep in mind management guru Tom Peters’ advice: “The greatest motivator for a professional salesperson is winning.” Hiring the right people with the right skills and providing them with the right tools and training will insure that your new hires will succeed and be winners!
Debbie Junge has over 30 years of sales, management and consulting experience in the contract furniture industry working with dealers and manufacturers. Her consulting services include personalized coaching, training and implementation of best practices with a focus on hiring, sales, leadership, operations, and financial performance. For more information, visit www.jungeassociates.com.
Sales training Reinforcement & coaching Tap into your manufacturers’ reps and vendors for their professional product training programs. Provide a thorough review of your menu of services, the value you bring to clients and how to sell the services. OFDEALER
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Mistakes may be
HAZARDOUS to your brand By Wayne Breitbarth Building a strong personal brand takes time, but destroying it takes only a moment—just ask Joe Paterno. Interactions on social media platforms can negatively affect your personal brand and ultimately your company's brand. Protect yourself and your brand by avoiding these common LinkedIn mistakes. 1. Punctuation and grammatical errors in profile. I learned this the hard way. When people made comments about grammatical errors in my profile, I thought to myself: What is the big deal? But the more I thought about it (and the more my wife badgered me about it), I came to realize I didn't want anyone to think I didn’t care or wasn’t smart enough to do it correctly. After all, this is my online reputation, and I want it to be as stellar as it can be. I am not always perfect, but I am being much more diligent when it comes to grammar and punctuation. 2. No photo or unprofessional photo. This is your professional identity. Why in the world wouldn't you want your photo to be the best, most recent, close-up head shot that’s been taken of you? This may be the only image of you a person ever sees. For those of you who have no photo, let me ask you two questions: Do you want to be the little blue nubby head? I doubt it. I am quite certain you are more good looking than that. If you are going through a LinkedIn search listing and you get to a person who does not have a photo, what do you do? Chances are you skip over him or her. I don't really think you want people doing that to you. 3. Conversations that should be taken offline. Some conversations are not appropriate to conduct online. Don't forget—we still have the telephone, email, and, yes, even snail mail for those critical personal conversations or confidential business exchanges.
4. Not using the magic words "thank you" or "you're welcome." Our mothers taught us this. Enough said. 5. Making unprofessional or "inside" comments in an introduction chain. Remember—everyone in the chain can see your comments, including the person in between your first-degree connection and the third-degree connection you are trying to get introduced to. In addition to giving a very poor first impression, inappropriate comments to your close friend may derail the introduction. 6. Asking for a recommendation or introduction from a very casual acquaintance. LinkedIn is your way to show your high level of credibility and expertise in the marketplace. If you include in your profile recommendations that lack substance because the writer barely knows you or is not well acquainted with your work, the reader may assume you don't know anyone who can write a first-class recommendation for you. Before asking a casual acquaintance to make an introduction for you, spend some time getting to know him. Then he will be better able to make some positive comments about you to his friend whom you would like to meet. 7. Using your Status Update to tweet. Whoever thought it was a good idea to have a Twitter/LinkedIn interface? Twitter is a completely different social media platform, and it has its own set of rules and acceptable etiquette. LinkedIn has a very different set of rules and acceptable practices. It is really not appropriate to have twenty status updates each day on LinkedIn, especially when most of them are about what you ate for lunch or the color of your new shirt or tie. This is a business site, and we all need to do our part to keep it that way. continued on page 20
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LinkedIn continued from page 19 8. Using the Summary section in your profile as just a laundry list of keywords. That is not to say your important keywords shouldn't be in your summary; they most definitely should be part of your summary. But your summary is meant to be that all-important cover letter to your viewers, and they need to hear you and see you as a dynamic person. Simply putting a list of words screams out, “I am boring!” 9. Posting only one job. Unless you have only had one job, it sure looks like you are trying to hide something from someone. 10. Not taking criticism professionally. Criticism is most likely to occur as part of a discussion in either Groups or Answers. Take a deep breath and come back to the entry an hour later, and then respond to the criticism in a way the rest of the readers will respect. Remember—the whole world may be watching and even if it isn’t, chances are your audience does include important connections who may be influenced in a negative manner by a harsh response.
are the president of your own company? Probably not. You can decide what goes in your headline. However, if you don't generate your own entry, LinkedIn will use the most recent item in the Experience section of your profile. Don't let this happen to you. Be creative, and craft a headline that includes your most important position along with some additional marketing punch. 12. Not having a company profile. This is like not having a company website. If I search for your company and it is not there, I assume you are not open for business. LinkedIn offers unlimited opportunities for promoting yourself and your business. Put your best foot forward when using it, and protect yourself and your brand by avoiding these common mistakes.
11. Not having your most important jobs in your headline. Your headline is a very important part of your profile because it travels with you wherever you go on LinkedIn. Do you really want your headline to say you volunteer part time at an animal shelter instead of saying you
Wayne Breitbarth is an owner of M&M Office Interiors in Pewaukee, Wisconsin. Wayne began moonlighting as an unofficial LinkedIn trainer in early 2009 and has now led seminars for over 10,000 business professionals across the country. He was a featured speaker at last year's OFDA Dealer Strategies Conference and has recently released a book entitled The Power Formula for LinkedIn Success.
Stylish Rectangular Aluminum Grommet Features Locking Top An extension of our popular MAX Series, MAX3 has a lockable top as well as radiused end caps. Lift top to insert wires through brush, then close – under top is a sliding tab. Just slide it to “closed” position and top is secure. Large enough for most large desks and conference tables. Cutout 12 27/32” by 4 3/8”. Finishes: Satin Aluminum, Brushed Satin Aluminum.
“FINE ARCHITECTURAL HARDWARE FOR YOUR FINE FURNITURE”®
w w w . m o c k e t t . c o m Ü 8 0 0 - 5 2 3 - 12 6 9 MARCH/APRIL 2012
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BIG THINK
June 11–13, 2012 The Merchandise Mart, Chicago NeoCon.com
Pre-Register by June 4th & Save Onsite Registration is $25