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n OFDA 2010 Dealer Strategies Conference Preview n level Certification for Furniture Sustainability n Mentoring - Low Cost, Big Returns
For the Long-Term Health of Your Dealership, You Can’t Afford to Miss OFDA’s 2010 Dealer Strategies Conference
Simon De Groot Editor in Chief OFDealer
In just a few short months, OFDA will host its 2010 Dealer Strategies Conference in Bonita Springs, FL, and if you haven’t yet signed up to attend, now is the time. Putting it bluntly, you need to be there for the continued health and prosperity of your business. Finding excuses not to attend is always easy. “We’re watching every penny” … “I can’t afford time out of the office” … “How can I justify spending money on this when business is as challenging as it is right now?” But it’s precisely because business is so difficult today that your attendance is so important.
The $1,000 or so you might save by not attending won’t help your dealership grow or get significantly stronger. But just one or two good new ideas that you pick up at the meeting could well make a difference and that’s why you need to be there. Putting it simply, you will have no better opportunity all year to tap into the collective knowledge base of the dealer community—and with OFDA, it’s the entire dealer community, not just one manufacturer’s dealer network—and explore together how best to respond to the challenges we all face. There isn’t a dealer out there who isn’t looking for answers to some very tough
questions right now and who doesn’t know the most likely way to find them is by sitting down with other dealers and talking them through. That, at its most basic level, is what the OFDA Dealer Strategies Conference is all about. You’ll find more details on the Conference elsewhere in this issue and an online registration form is available on the association’s conference website at www.ofdanet.org/conference. But the bottom line is this: The Dealer Strategies Conference offers an extraordinarily effective way to discover new ways to strengthen your dealership at a time when it needs it most. For the long-term health of your business, you can’t afford to miss it.
news Office Environments of New England Project Wins Grand Prize for Technology Integration program. The program, now in its eighth year, honors outstanding examples of the creative and effective integration of technology into traditional construction projects. OENE won the award as part of a team that put together a new corporate office for Autodesk, makers of 2D and 3D design, engineering and entertainment software. For the project, the team installed technology that enabled Autodesk to create a "virtual experience" for potential customers at its Waltham facility and present them with an immersive show-and-tell that seeks to demonstrate why Autodesk software is well suited to their needs.
Congratulations go to Bob Kelly and his team at Waltham, MAbased Office Environments of New England (OENE), recent winners of a Grand Prize in the annual ARCHI-TECH AV Awards
A key element of the project is a central image sculpture that features a four-sided rectangular screen that has overlapped and blended images on all four sides via six projectors. The remaining projection surfaces are freestanding, single-sided flats. continued on page 3
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Munson Business Interiors, Louisville Dealer, Wins Local IFMA Chapter Project of the Year Honors
Point, an independent office products dealer headquartered in Scranton, PA.
Congratulations also to Louisville-based Munson Business Interiors (MBI), recent winners of the 2010 Project of the Year award from the Greater Louisville Chapter of the International Facility Management Association (IFMA).
The merger, said Corporate Environments’ Brian McGonigle, represents a coming together of “two strong companies looking to diversify and combine market places.”
MBI won the award for its work on the Louisville headquarters of ZirMed, one of the country’s top healthcare IT companies. The project involved a build out of eight floors representing 77,000 sq. ft. in total. It also required the consolidation and phased move over a six-month period of staff from three separate buildings to the headquarters. Drawing inspiration from Louisville’s location on the banks of the Ohio River, the design is centered on a river theme with wavy carpet tiles, wall covering and a custom “boat” inspired executive board room that includes a boat shaped table and sky light that resembles a row boat. Workstations were designed in "honeycomb" and "dogbone" arrangements to promote teaming and collaboration. MBI also created the Z Lounge as a pivotal room for company events, with lighting that converts the lounge into a night time “club” atmosphere and technology in the form of two flat screen TVs that constantly display information, company announcements, fun healthcare facts, internal awards, etc. The design solution used flooring that is recycled cork and VOC free paint. Product solutions included Kimball workstations, National lounge chairs and Izzy seating. This year’s Project of the Year award was the second one for MBI. The dealership also earned similar honors from its local IFMA chapter in2008.
Corporate Environments, Pennsylvania Dealer, Merges With One Point, Office Products Dealer Corporate Environments, a Herman Miller certified dealer based in Bethlehem, PA, has announced its merger with One
“Customers that have purchased furniture from Corporate Environments will now have the ability to purchase their office supplies, promotional items and/or printed materials as well, creating a ‘one stop shop’ for virtually all their office needs,” he explained. “On the flip side, existing customers that have purchased office supplies and printed materials from One Point will now be able to purchase Herman Miller products from an experienced commercial furniture dealership.” “We are delighted to be welcoming Corporate Environments and expanding our business in such a remarkable way,” said Patrick McMahon, president of One Point. “This merger strengthens our ability to bring unparalleled service to our valuable clients and continues our commitment to provide excellence in business solutions.”
Office Concepts Named One of Chicago’s 101 Best and Brightest Companies to Work For Congratulations to Steelcase dealer Office Concepts, honored last month as one of Chicago’s “101 Best & Brightest Companies to Work For.” It was the sixth year running that Office Concepts has received this award, which was presented by the National Association for Business Resources, an organization that provides services, counseling and education for small and mediumsized businesses. The award honors companies that “recognize employees as their greatest asset…and work with imagination and conviction to create organizational value and business results through their policies and best practices in human resource management.” Other winners this year included companies such as Ernst & Young, Kimpton Hotels & Restaurants and Verizon Wireless. “This recognition from the National Association for Business Resources reaffirms our commitment to developing strong leadership, supporting a creative and diverse workforce and providing our customers a true team approach focused on quality and customer satisfaction,” said Office Concepts president Tom Worniak. continued on page 5
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Innovative Commercial Environments, San Diego Area Dealer, Opens Second Showroom
Goodmans Interiors Structures’ president Adam Goodman (far left) and sales manager Jacqui Montano (far right) hold up the banner as staff members of the Arizona Coalition Against Domestic Violence celebrate their recognition as one of this year’s Goodmans Eye for the Good Guy winners.
In San Diego, DeLinda Forsythe and her team have made a strong statement about the future of their dealership, Innovative Commercial Environments (ICE), with the recent opening of their second showroom. Located in downtown San Diego, the new, 2,000 sq. ft. showroom represents a major step forward for the dealership, which is based in Carlsbad, about 45 minutes away. ICE is a relatively new business—DeLinda started with a home office in 2006 and opened in Carlsbad just two years later. But, she says, the dealership has been bucking overall industry trends and business has been going very well. The new downtown location puts DeLinda and her team right in the backyard of many of the area’s key architects, designers and large commercial prospects and over the next several months, ICE will be hosting a series of wine tasting gatherings for them to celebrate the company’s expansion.
Goodmans Eye for the Good Guy Contest Awards Two Non-profit Leaders There are plenty of contract furniture dealers who are actively involved in their communities and enthusiastic supporters of a broad range of worthy causes. But few bring to that aspect of their business the level of commitment that Adam Goodman and his team at Goodmans Interiors Structures have displayed in recent years. Their most recent effort: Goodmans Eye for the Good Guy, a program that selects a deserving non-profit in each of the two markets where Goodmans operates, Phoenix and Tucson, and provides them each a $20,000 office remodel.
This year’s winners were a support group for victims of domestic violence and an organization serving one of Arizona’s American Indian communities. They were selected through a combination of online public voting and assessment by a panel of local judges. “Our 2010 Good Guys’ impressive achievements, ambitious goals, thoughtful strategic planning and respectful leadership have led their organizations to success,” said Adam. “We’re pleased to reward their good work with new spaces that will support individual work styles, improve productivity and enhance their organizational missions.”
Memphis Business Interiors VP of Sales Profiled in Local Business Journal In Memphis, MBI vice president of sales Michelle Bingham is celebrating her 15 minutes of fame and then some, after recently being profiled in the Memphis Business Journal, the city’s leading business publication with a circulation of 9,000 and total estimated readership of 43,000 each week. Michelle started out in the restaurant business—her first job was working the drive-thru at McDonald’s—but for the past 15 years, she’s been a key member of the MBI team and became VP of sales about a year ago. As it was for many dealers, the past year has been challenging to say the least but, she says, it has left MBI stronger and more focused. “The downturn enabled us to look at just about every aspect of the business differently,” she explains. “It certainly made us continued on page 6
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a lot more aggressive in our networking and helped us become active participants in organizations and events, rather than just showing up as attendees.” The recent exposure in the local media is a typical example of the results, and Michelle is quick to credit Beth Okeon of ABO Marketing & Communications for helping to raise the MBI profile. In the profile, Michelle offered her business philosophy and it’s one that will resonate with many contract dealers: “Make it happen. Our customers look to us to help them solve problems quickly and efficiently. All businesses have reasons which make that hard to do at times. But our customers don’t care about that. That is why they pay us … to take care of them. Therefore, we have to make it happen.” Right now, it looks like Michelle and her team’s efforts to make it happen are finally starting to pay off again. “We’re very busy right now and have seen several good months in a row,” she reports happily.
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Atlanta Dealer Ivan Allen Workspace Promotes Jim Huslig to VP Sales Atlanta-based Allsteel dealer Ivan Allen has announced the appointment of Jim Huslig as vice president of sales. “With his years of solid experience in the Atlanta area and inherent knowledge of the contract furnishings industry, Jim Huslig was a unanimous choice for this spot, and we’re confident he will be an extremely valuable asset to Ivan Allen,” commented general manager Hamp Hart. Huslig joined Allsteel Inc. in 2006 as the corporate account manager for the southeast region. In his new position he is responsible for providing strategic direction for the Ivan Allen sales force, as well as implementing sales and marketing initiatives focused on end users, clients and influencers. Prior to joining Allsteel and the Ivan Allen team, Huslig held various sales leadership roles for Kimball Office.
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BIFMA: June Orders +16%; Shipments +8% The Business and Institutional Furniture Manufacturers Association (BIFMA) released its market statistics for June recently and continued the encouraging trends of the past few months. June orders increased 16%, the industry’s fourth consecutive month of year-over-year incoming order growth. In addition, June order growth accelerated compared with May’s 11% growth. June shipments were also up, 8% ahead of the same month last year and similarly accelerating compared with 5% growth in May. “The June report was encouraging and provided additional corroboration of our view that the contract office furniture industry is bottoming,” commented analyst Budd Bugatch of the Raymond James investment house. “While weakness in housing activity, the recent disappointment in consumer confidence, and moderating employment trends
Dunlap Index Shows Continued Industry Improvement Also showing positive industry indicators was the latest issue of Michael A. Dunlap & Associates’ quarterly survey of industry trends completed during July. The Dunlap survey showed continued industry improvement, with the survey’s overall index of industry performance posting its highest number since October 2007. The index represents a composite of responses to the survey which focuses upon ten key business activities among manufacturers: Gross Shipments, Order Backlog/Incoming Orders, Employment Levels, Manufacturing Hours (Overtime vs. Reduced Hours), Capital Investment, Tooling Expenditures, New Product Development Activity, Raw Material Costs, Employee Costs and the respondents’ Personal Outlook on the industry. Dunlap commented, “I’m very pleased in the results this quarter. The improvements are almost across the board for OFM’s and suppliers. I am not surprised at the significant increases in Gross Shipments and Order Backlog, but I am very surprised to see the decrease in the personal outlook. It appears that the supplier community is a bit pessimistic compared to the OFM’s”. AUGUST 2010
have seemingly increased the risk of a double dip recession, we believe the economic recovery remains generally on track and suspect the relevant statistics will generally improve in a saw-tooth fashion,” he added. Bugatch pointed to renewed order momentum within the office furniture industry, easy prior-year comparisons, solid June/May quarter results from the industry’s publicly-traded manufacturers and a productive NeoCon as positive indicators that a recovery is at hand. “While weakness in commercial construction is likely to remain a drag on project-related business for the foreseeable future, we believe the high national vacancy rate (17.3% in 1Q10 versus 17.0% in 4Q09 and 15.2% last year, according to Reis) suggests the initial recovery may be driven more by absorption of existing space, and be less dependent on new office construction,” Bugatch contended.
The majority of respondents continue to cite the economy, increased healthcare costs and competition from low cost countries, as the “largest threats to the industry”. Dunlap continued, “I think that there are enough strong indicators from both the July and April surveys that demonstrate that the worst is behind us and that we are finally seeing some solid signs of recovery. We may not see sales levels of more than $12 billion for a long time, but I think we will see this industry come out of this recession with some solid growth by the first quarter of 2011.”
ECi Releases TeamDesign Version 15, Names New Chief Operating Officer Dealer technology provider ECi Software Solutions has released Version 15 of its TeamDesign dealer management system. “We are really excited about this latest version of our software,” said ECi TeamDesign president Tammy Byrum. “Version 15 continues the expansion of electronic communications with manufacturers. With Version 15, Herman Miller USA, Herman Miller Canada and Herman Miller alliances dealers will now have
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the ability to submit purchase orders in the OFDAxml format directly from within TeamDesign V15 to Kiosk Order Manager.” “Herman Miller is pleased that TeamDesign has taken the initiative to use the OFDAxml format in Version 15,” commented Kevin VanRiper, senior programmer analyst, information technology, for Herman Miller. “In addition to sending purchase orders, this new version of TeamDesign also provides dealers new functionality to assist with acknowledgments. We appreciate the approach TeamDesign has taken to ensure that this new version will meet the needs of our dealers.” Separately, ECi announced the appointment of Trevor Gruenewald as chief operating officer. Gruenewald joined ECi in January 2009 as senior vice president and general manager for ECi’s DDMS and the Office Equipment divisions. Since then, his list of responsible business units has grown to include Britannia, Team Design, OMD and La Crosse.
finishes is available to coordinate with any interior scheme. Marche is available in two different frame designs; a four leg chair as well as a bar height stool. Frame finishes include brushed chrome, chrome, black and tungsten. Legs are standard in black, tungsten, chrome and brushed chrome, with bar height stool models coming soon.
SCALE-UP Tables for Collaborative Learning New from Bretford Manufacturing are 84-inch round tables for use with the SCALE-UP teaching model. The term SCALE-UP stands for “Student-Centered Active Learning Environment for Undergraduate Programs.” It involves redesigning a classroom to facilitate interactions between teams of up to 100 students who work on short, interesting tasks.
Gruenewald has also been responsible for a number of broader operational areas across the company, including cross vertical solutions (ecommerce, mobile, etc.), training and implementation, documentation and development/QA. As COO, Gruenewald will continue to expand his responsibilities across all business units and several corporate functional areas, the company said.
Global Introduces Marche, New Open Wood Back Chair for Guest and Hospitality Applications Global - The Total Office has introduced Marche, a contemporary wood seating series for use within guest, hospitality and lounge applications. Marche feature a sleek Italian curved plywood back that comes in three different styles, closed back, open back and upholstered back. Global's complete pallet of 11 wood AUGUST 2010
The new tables feature adjustable work surfaces, shelving, and optional electrical units; seating up to nine students with or without laptop computers to promote group interaction for improved problem solving.
Seven Kimball Office | interstuhl Seating Lines Granted BIFMA level Certification Seven seating lines bearing the Kimball Office | interstuhl name recently received e3 level certification from the Business and Institutional Furniture Manufacturers Association (BIFMA). As a result, more than 98% of Kimball Office products now meet e3 level status, a third-party certification process designed by BIFMA to evaluate the sustainability of manufacturer's products. The lines earning e3 level status include Axos, Xantos, Hero, Just for You., Silver, Fit, Mitos, and Campos.
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By Alicia Ellis Facility Managers (FMs) today come in all shapes and sizes. Larger companies may have a director of facilities management who oversees a large staff or you may have a single FM who is expected not only to maintain the integrity and upkeep of a building but to also oversee the IT and janitorial staff. There’s the FM who is a jack-of-all-trades: maintaining the building, handling incoming shipments, running cables and even changing the toilet paper, and then there’s the glorified office manager who has taken on the duties of a FM on top of their primary functions. Whatever the title, whatever the role, today’s FMs are the “go to” people whenever there’s a problem with a building’s infrastructure and for many dealers, their primary contact for the sale of office furnishings and related products. They work tirelessly, with little thanks when things are running smoothly but lots of complaints when something’s wrong. And, it’s not getting any easier. According to Tony Gugliemotto, president of Commercial Works Planning and Management, an unaligned dealer with offices in Ohio, Indiana, Kentucky and North Carolina, the scope of responsibilities for FMs has expanded greatly and the economy has forced many to take on broader responsibilities. “Some companies have FMs doing more day-to-day procurement and even security duties,” said Gugliemotto, whose dealership derives 80% of its business from FMs. “Where an FM might once have had a few guys who took care of a building’s exterior maintenance, the duties are now falling on them. Many are also
finding themselves taking on more square footage and even having to run between multiple sites.” Diane Parker, ASID, marketing director for Commercial Environments, Inc. in Knoxville, TN, knows just what Gugliemotto’s talking about. With nearly 60% of her overall business the result of work with FMs, she sees the middle people in many companies being cut out and FMs having to deal more and more with many different groups and cover a larger area of their organization. “I often think when I’m first meeting a FM, they are already looking ahead to their next job and how much time they’re wasting,” said Parker. “They have become so stretched in their duties and so focused on trying to fix the next issue, they just don’t have much time for anything.” Given all that, it becomes critical for office furniture dealers to make the most of whatever time they are able to secure with FMs and reach out to them and support them in their mission in creative ways. For many dealers this means active involvement in the International Facility Management Association (IFMA), both nationally and at the local chapter level, with membership, hosted meetings and attendance at IFMA events. For Gugliemotto, whose company started out in commercial moving and storage in the 1970s before breaking into office furniture during the ’90s, the relationship with IFMA and FMs goes hand in hand. “We have had staff who were members of IFMA on continued on page 12
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the national level and two of our executives have been president of local chapters,” he said. “Currently, we have at least one member of the executive staff involved on the local level at each of our seven locations.”
Another way dealers can garner attention from FMs is through the variety of services they offer. While most dealers offer specification, moving and installs, there are also opportunities for dealers to reach out through less conventional channels.
Sheila Sookram, a commercial furnishings and design consultant at Eakes Office Plus, an office supply and Steelcase dealer with 12 locations throughout Nebraska, says membership in IFMA helps her reach out to FMs throughout much of the state. Involved on both the national at local levels, Sookram has served as a member of the local IFMA chapter’s strategic planning committee and attends its yearly golf event.
“Our sister company is focused on electrical issues and with an internal relationship with a remanufacturer and a foray into AV over the past year and a half, we have really become more of a solutions provider,” said Rawls. “We go in and act as a liaison to the FM and subcontract with other providers if we can to help.”
“Eakes also donates prizes for IFMA events and participates in an IFMA-hosted vendor fair,” said Sookram, who reported 85-90% of Eakes’ furniture division business comes from FMs. “We work with many rural entities that don’t have an A&D firm, and we provide the spec services that smaller FMs need.” For Will Rawls, senior account executive and sales manager for Advantage Office Furniture in Sterling, VA, FMs have only recently become a target of opportunity. “I talked my principals into letting me take a booth at a local FM show and our company was the only dealership represented,” said Rawls. “We were able to get 2-3 deals out of the show which more than paid for the investment and opened the company’s eyes to the possibilities.” As always, networking is one of the most valuable tools a dealer can use to reach out to FMs. “Social networking, personal networking and networking through community organizations are becoming more important than ever,” contends Gugliemotto. “I have made a lot of local contacts simply by contributing my time to serve food at a local soup kitchen. We encourage these and other non-traditional forms of networking. We have all of our salespeople on LinkedIn and our marketing person hosts seminars about using LinkedIn for anyone wanting to attend. This has become a great marketing tool, gets them in our showroom for an hour and has been great for business.” Sookram’s large territory makes it difficult for her to network through traditional means, but thanks to LinkedIn and its IFMA group site, she is able to share information and reach out to potential clients, with face to face appointments following after she has secured their interest. “IFMA’s LinkedIn Group site is great for networking and has definitely increased the information available to FMs in both rural and urban settings,” said Sookram. “FMs and their service providers can send questions and get answers from a multitude of people without having to attend a physical event. Face to face is nice but in reality if they can’t travel, it’s a great value.”
For Commercial Works Planning and Management, providing an on-site facility management staff has really added to the bottom line. “We will provide some of our larger clients with an onsite crew that performs day to day services,” said Gugliemotto. “Or, if companies would rather, we can arrange for on-call FM services for a day or a particular number of hours per week.” “We have found that if you try to do too many things, you won’t do any of them well,” said Sookram, who touts a referral network of select companies they work with to provide additional services outside the furniture, supplies and copiers they currently offer. “We can refer FMs to companies that specialize in phone systems, computer systems, installation companies and much more. And, depending on the company and the level of responsibility the FM wants, in some instances we manage the subcontractor and/or combine services into one invoice.” While having great services and making the connections are important, just how does a dealer get the job? “We were hitting roadblocks until we decided to start going in as a team,” said Rawls. “On any given day I can show up to a prospect with a sales rep and one or more designers, AV, installation, wiring or cable person to support the project.” “I lead with what an FM can do with what they already have,” said Gugliemotto. “I don’t lead with new furniture but with ideas to help with relocation, design support, inventorying, reuse of the space and more with new furniture as a supplement.” “Begging,” said Parker jokingly. “Really though, if a FM has a dealer they are used to working with, it’s hard to break in.” It’s this “breaking in” that leaves many dealers perplexed and frustrated. Are the FMs just too busy to look at changing dealers or is it just about the almighty dollar? Do they understand what you can offer or do they just not care? To shed some light on the subject, OFDealer sat down with Harry Ludwig, III, a facilities management professional since 1982 and current director of facilities and administrative operations for King continued on page 13
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and Spalding, Atlanta’s largest law firm. With the firm for 19 years, Ludwig supervises four department heads and is ultimately responsible for the design, build out, furnishing, care and maintenance of 16 offices throughout the world, including the firm’s newest office in Dubai. Ludwig is a past president of IFMA’s Atlanta Chapter, serving as a long-term member of their board until three years ago, a charter member and past president of IFMA’s Legal Industry Council and a regular attendee at the monthly meetings of a networking group of Atlanta facilities and operations directors. Ludwig has worked with more than his fair share of designers, dealers, architects and “order takers,” the term he applies to unskilled salespeople. His experience is vast and his knowledge of what FMs are looking for in a great dealer is enlightening. “FMs are taking on more and doing more with less,” said Ludwig, echoing the general consensus that FMs are busier than ever. “Not too far in the past, companies would hire architectural firms and rubberstamp all the recommendations of the firm and sometimes the office furniture dealer associated with the project. This ‘rubberstamping’ increased product and maintenance costs and often contributed to increased lead times.” “There is no carte blanche any more,” continued Ludwig. “There is a growing trend among many businesses and larger organizations to rely on the facilities management executive to oversee the entire process of building out and furnishing space. We are being asked to manage the design firm, the contractor and everything associated with a particular project. We are now charged with making a space work and preserving that space with aesthetics that balance function and maintainability while controlling costs and making substitutions when necessary without affecting quality.” “The office furniture rep who gets my business is the one that makes my job easier,” said Ludwig. “Ordering office furnishings is only 5% of what my job entails and I don’t have any more time to spend at the expense of other aspects of a project. There are salespeople who are a resource to me and are excellent and then there are ‘order takers’ who are there for the sale and nothing else.” To aid dealers in becoming a resource to FMs, Ludwig has compiled a list of what he looks for in a dealer. 1. A Single Dependable and Effective Contact. FMs do not want to be pushed off to someone else when a question or issue arises after the order is written. The single contact or “point person” should act as a go between to help the FM secure the needed information, respond to inquiries and resolve issues. 2. Regular Communications from the Account Manager. Either via a monthly phone call or email correspondence (whichever the
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FM prefers) to check in and see how everything is going, if there are any questions about product etc., or just invite them to come see your showroom. According to Ludwig, many FMs want new product information and updates as soon as possible, while others prefer that you only contact them when you have a particular product they may be interested in. Poll your FM clients to find out their wants, needs and expectations. 3. Quick Response. When a FM calls or emails with a question, answer them as soon as possible. And if it will take you more than a day to find the answer, let them know that. Don’t leave them hanging. 4. A Knowledgeable, Fully Informed Account Manager. According to Ludwig there is nothing more irritating than ordering a product and finding out that he knows more than the account manager does. And, if you don’t have an answer to a question, say so and go find it…promptly. (See #3) 5. Continuity in Account Management. It takes time to bring a new account manager up to speed on the specifics of a company and if the dealership keeps changing sales reps (for any reason), it’s a disincentive to FMs to continue to do business. 6. A Positive Attitude. A dedication to client satisfaction and a consistent, cooperative attitude goes a long way. 7. New Product Information. Provide product information in an effective and consistent manner according to the FM’s needs. For Ludwig, product information is extremely valuable and his company keeps swatches, carpet samples, veneer information and current pricing in a vendor catalog library that is regularly updated by both his team and the dealers they work with. 8. Proactive Approach. Keeping an FM informed on all matters relating to their account is imperative. Stay on top of every aspect of the account and contact them with any changes… positive, negative or neutral. This is especially important when it involves scheduling contractors and products. All of the above expectations and suggestions are crucial to the success of most if not all FMs. And keep in mind that FMs talk. In a local area, FMs know each other and talk about their suppliers, their reps and experiences. How far you go (or don’t go) to meet the expectations of a FM will come back around. And, in response to those dealers who complain that FMs are all about the money and nothing else, Ludwig replies that while FMs are always interested in cost, that interest only extends up to a certain point. “A smart buyer benchmarks to find the quality they need at the best price so the opportunities for dealers are there,” said Ludwig. “I will always consider at dealer who can help me negotiate the best possible price and is committed to developing and maintaining a great long-term working relationship.”
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PR JECTPROFILE Orthopaedic Associates: Getting Away From ‘Bricks and Sticks’ to Create a Superior Patient Experience When Albany, GA-based Orthopaedic Associates (OA) decided to expand its services and modernize their offices, CEO Cheryl Boyles wanted more than just a brand new state-of-the-art building. Her goal: a modern, aesthetically inviting facility that not only took into consideration the daily work flow and comfort of the patients, but also went beyond the traditional, rectangular brick buildings usually found in the Albany area. Having studied existing patient flow for over five years, the practice had a wealth of information to work from and plenty of ideas. “We considered everything from registration, to computer servers, to the phone system, X-Ray services, lighting and more,” said Boyles, who explained that the flow wasn’t just about the footprint, it was about visually communicating comfort and confidence as well. The project itself included more than enough room for their existing five specialists, on-site testing and diagnostics, in-house physical therapy and pharmacy, with a spacious surgical center planned for the future. “Furniture selection was critical to the design’s success,” said Boyles who chose local Kimball Office/National dealer, The Print Shop/MetroServices as its office furniture supplier of choice. A local dealership that originally started out in the printing business, The Print Shop/ MetroServices and its principal Larry Clark have been building a reputation for excellence in corporate furnishings for more than 25 years. Today, the dealership focuses strictly on interiors and related services, and Clark himself, as a specialist in healthcare with longstanding relationships with the local hospital and many of its doctors, was the logical choice for a project of this magnitude. “The building itself is not something you usually see around here and Cheryl didn’t want the typical furnishing that go along with a ‘bricks & sticks’ feel,” Clark explained. continued on page 15 AUGUST 2010
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Eloquence and Fuel featured sustainable elements including many that are indoor air quality certified to create healthier environments without an additional cost. Both Boyles and Clark marveled at the ease of install. “There was zero breakage and the biggest concern was making sure the correct reception furniture went into the correct reception area,” said Clark, who is spending his time working on completing the second phase of OA’s plan, its surgical center. “We just had a great experience,” said Boyles. “It was very important that we improved the patient experience, because after all, it’s all about the patient.” According to Clark, OA was looking for new furnishings for the majority of the building but they also wanted to coordinate what they brought in with some existing office furniture from their previous location. “We needed to furnish and coordinate the physical therapy lounge, the waiting room, physician’s offices, reception areas and communal work areas, board room and a staff breakroom for starters,” said Clark who noted that the main reception area was expanded by 25% because OA did not want to cramp their patients. “OA took nothing to chance. It was a lot to draw up and different factors to consider in the arrangements. The client wanted each lounge area to be unique yet color coordinated so that the entire office blended together to create a cohesive environment conducive to healing.” “The hardest part of the entire project was picking colors and fabrics,” said Clark. “We spent more than a few hours picking fabrics that could be used to reupholster OA’s used furniture to coordinate into the new pieces.” According to Clark, Boyles certainly did her due diligence in selecting bleach-washable finishes and healthcare appropriate fabrics and choosing bariatric models to provide both aesthetic appeal and durability. The firm also appreciated that National Office Furniture’s product mix including Casbah, WaveWorks, AUGUST 2010
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Educational sessions emphasize not just the question of “what” steps to take to grow revenues and become more profitable, but also “how” to implement those steps to change your organization’s culture, practices and processes to accomplish those goals. Whether you are a:
4Company principal or CEO looking for new strategies to reposition and differentiate your business from your competition;
OFDA
4COO with broad responsibilities who is
2010 Dealer Strategies CONFERENCE
committed to staying on top best-practice management trends;
of
4Experienced marketing or sales manager professional seeking fresh ideas on how to boost the productivity and new business development results of your entire sales team;
4Operations director working to streamline key business processes; or
4Manufacturer or service provider whose success depends heavily on having successful dealers with growth opportunities You will find exceptionally valuable educational sessions and peer and customer networking opportunities at this year’s OFDA conference.
This year’s OFDA conference theme—Winds of Change: New Realities, New Strategies—could not be more apt. It conveys what some OFDA members have termed the “new normal,” a business and industry environment characterized by frequent, often disruptive market changes. Dealers, manufacturers, and others in our industry are rethinking their business models to accommodate these changes and respond to new market volatility. OFDA’s annual conferences are designed to bring a broad cross-section of industry dealers and their key business partners together for timely and lively exchanges of promising new business ideas and emerging best practices in the areas of strategic planning, general management, marketing and sales, operations and use of technology.
Can you afford not to be a part of this premier industry event that focuses on how you can ride the crest of the waves of change impacting our industry? No matter what your role is in our industry, OFDA invites you to register today www.ofdanet.org/conference and/or contact our staff (703/549-9040) to learn how you can take full advantage of all our 2010 conference in Bonita Springs, FL (October 10-12) has to offer.
Program Highlights for Manufacturers and Service Providers Last year OFDA adopted a new, more compact conference format that better integrates manufacturer and service provider continued on page 17
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displays into the flow of the conference’s educational and business networking program. Attendees are encouraged to participate in all educational sessions, share professional experiences and insights and build relationships in an informal setting that facilitates the generation of new ideas, valuable business opportunities and practical solutions to common management challenges.
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Hands-On Educational Workshops On Sunday afternoon, October 10, OFDA will kick off the Conference with three concurrent workshops, any one of which will deliver value far greater than the cost of your participation in our premier annual event. All workshops will run from 1:00 p.m. to 5:30 p.m., with a break at mid-afternoon.
OFDA offers three ways for manufacturers and service providers to connect with current and prospective dealer customers:
Libby Wagner
1) Table top displays within the general session ballroom and just outside in the ballroom foyer http://www.iopfda.org/index.asp?bid=3497 2) Free-standing furniture or other displays within the general session ballroom
Author of The Influencing Option: The Art of Creating a Profit Culture in Business, Libby Wagner will be joined by Marlaine McCauley, president of Apex Facility Resources in Seattle, to discuss “Creating and Sustaining a Profit Culture in Your Business.”
3) Private meeting suites (available in half-day increments) for more in-depth discussions. Full information on these options is available at the following links displays and meeting suites.
Program Highlights for Dealers – No Matter What Your Size, Market or Manufacturer Alignment OFDA will offer three hands-on workshops, a keynote presentation, three other general session programs, and numerous focused breakout sessions, including eight dealer panel sessions and a special facilitated roundtable. The overarching goal is to share emerging best practice ideas and stimulate thought-provoking, practical dialogs on how dealers can reshape their business models, streamline their organizations and apply new business development strategies to effectively address the fundamental changes occurring in the office interiors business.
Keynote Speaker Jack Daly – Sales and Business Growth Expert Jack Daly, widely respected by business leaders around the country as “the Sales and Business Growth Expert,” will join OFDA’s Dealer Strategies Conference as its keynote speaker on Monday, October 11.
Libby has worked closely with Marlaine and her Apex team on issues ranging from organizational alignment to senior team agreements and performance management/accountability initiatives. During this workshop, Libby will share specific strategies and implementation tools for raising the bar in your business, and Marlaine will highlight her own experiences and professional advancement while working with Libby on a variety of leadership and management initiatives.
Gil Cargill Principal of Cargill Consulting Group, Gil Cargill, widely known as “the sales acceleration coach,” will join OFDA for the second year, this time as a workshop leader. If you attended OFDA’s 2009 event in Austin, you will be excited to learn that this year Gil will lead an interactive workshop on two sales-related topics at our annual conference: “How to Recruit , Hire and Train Novices Who Sell … Profitably” and “Finding and Fixing Hidden Sales Productivity Problems.”
Lynda Ward and Marina Van Overbeek
Jack is working closely with an OFDA conference planning task force to develop a dynamic, customized presentation that addresses our industry’s business realities and key selling challenges.
Client service level expectations have changed. Are you losing market share because you are expected to be part of the client’s solution team?
Visit Jack and see him in action at www.jackdaly.net. continued on page 18 AUGUST 2010
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2010 DEALER STRATEGIES CONFERENCE
Are you as a dealer principal or sales manager able to leverage fundamental expertise to engage the client as a partner? What are your competitors doing? It’s not a level playing field! “Just Another Office? Workplace Strategies and Services Redefined” will use innovative workplace case studies and best practices to provide insights into client drivers for change, methodologies for achieving success and how to measure outcomes. Ward and Van Overbeek, principals of Spark – Business Relationship Consultants, will explore new thinking and approaches for increasing your competitive advantage when responding to the increasing pressure to add value to your client’s workplace solutions and at the same time cut avoidable expenditures.
Interactive Breakout and General Session Programs Round-Out Conference Program Members who attended last year’s event in Austin emphasized the value of being able to learn about other dealers’ experiences first-hand and question them directly on the management strategies and tactics they used to improve sales, operations and profitability. This type of exchange of ideas, best practices and new business opportunities has never been more critical to your success! OFDA will offer a series of dealer panel sessions and a special facilitated roundtable this year to share emerging best practices and stimulate dialog about how dealers can reshape their business models, streamline their organizations and apply new business development strategies to effectively address the fundamental changes occurring in the office interiors business. Here’s a sampling of the topics dealers will cover: n Planning and executing your future business model. n Growing revenues and profits through streamlining core business processes.
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n Finding new ways to communicate value in new business development. n Applying OFDA benchmarking data to boost efficiency and financial performance. n Dealer roundtable on significant changes dealers and their business partners are implementing—emerging best practices and results achieved.
Additional General Sessions to Highlight New Industry and Small Business Technology Trends OFDA’s two luncheon programs will highlight new technologies that will increasingly impact dealers as they redefine their roles as product resellers and service companies. Roy Abernathy, AIA, principal of Jova/Daniels/Busby, will outline the new Building Information Management (BIM) and Integrated Project Delivery (IPD) tools that the A&D community, FMs and commercial real estate communities are now embracing. He will explain the key purposes and drivers of BIM and ITD and discuss how they are tied together and their impact on the office furniture industry, including dealers, manufacturers and service providers. Dan Sandlin, Azure solutions specialist, Microsoft, Inc. will wrap up OFDA’s 2010 conference with a dynamic presentation on the expanding range of collaboration, CRM and other technology tools aimed at small businesses and their increasingly mobile workforces. “Cloud computing” and other emerging technology concepts and applications will be highlighted to expand conference attendees’ understanding of new ways to boost productivity through better technology integration and employee collaboration throughout your organizations. Early registration ends on August 31! Visit www.ofdanet.org/conference and for full details and to reserve your spot at this year’s event.
n Successful outsourcing strategies to refocus your business for greater success. n Leveraging new industry sustainability standards to differentiate your business with new and recycled furniture. n Applying new collaborative technology tools for mobile workforces in your company. n Using social media and Internet lead generation techniques to find new customers and sell more successfully. AUGUST 2010
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l e v e l certification for Furniture
Sustainability third-party certification process can achieve the level conformance mark.
By Tom Reardon, Executive Director BIFMA International
level has three conformance thresholds; level 1, level 2 or level 3 certification is based on the combined score achieved in the sustainability evaluation. level 3 is the highest award a product can achieve.
A common issue for many specifiers, buyers and users of “green” products is defining exactly what that rather vague term actually means. Whether referred to as “green”, “sustainable”, or “environmentally preferable”, the identification and procurement of products that have reduced environmental and improved social impact are topics that continues to grow in importance. The commercial furniture industry, its customers and relevant stakeholders have taken a proactive position in developing a common, consensus-based set of metrics to help define the “green” aspects of furniture. The standard and its supporting conformance verification (certification) program, called level™, provide a framework for the furniture industry to use in developing more sustainable products and processes, as well as a comparative tool for customers seeking more sustainable products. In mid-2009, the Business and Institutional Furniture Manufacturers Association (BIFMA) International introduced the level product certification program. level certification verifies conformance to a transparent, multi-attribute furniture sustainability standard (BIFMA e3) addressing all aspects of sustainability. Manufacturers evaluating products to the BIFMA e3 sustainability standard and undergoing an independent,
In the level certification process, a product, as well as the organization and facilities that produce it, are scored according to sustainability criteria in four areas: s Materials s Energy and Atmosphere s Human and Ecosystem Health s Social Responsibility In order to be level certified, products must meet certain minimum requirements in each area, and then must earn additional optional credits in order to achieve higher levels of conformance. The level conformance mark is an easily identifiable but hardearned symbol of a company’s commitment to sustainability. In a world of information overload and a rising tide of environmental claims, level is important because it provides a single, fully transparent method of understanding and communicating what a sustainable furniture product is. The standard provides a common, but challenging set of criteria for furniture producers and their supply chain to evaluate the sustainable aspects of products. And level ensures that an independent third party has conducted the conformance assessment. continued on page 20
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When the certification program was introduced in mid-2009, there were initially two certification bodies supporting the conformance verification function, and seven manufacturers with a combined 120 level certified products, of which none had achieved the highest (level 3) conformance tier. One year later, as of late-August 2010 there were six independent, third-party certification bodies supporting the level certification process, and at last count eighteen furniture manufacturers with a combined total of more than 550 certified product lines, of which three had achieved the highest, level 3 certification. The current list of furniture manufacturers with certified products includes Allsteel, Dauphin, Gunlocke, Haworth, Herman Miller, HON Company, izzy+, Jofco, Kimball, Knoll, National Office Furniture, Nucraft, OFS Brands, Paoli, Steelcase, Teknion, Trinity Furniture and Versteel. Many of these companies have moved products up from one conformance tier to another over the last year. Many more furniture manufacturers are working to implement the standard and will be seeking level certification in the coming months.
AUGUST 2010
With this rapid uptake of the program BIFMA identified a need to offer a searchable, certified product database that includes all manufacturers’ products. We expect this database to be operational by the beginning of September and it will offer specifiers and customers an easy to use product selection resource. BIFMA has also engaged in a training and awareness building effort over the last nine months, addressing audiences at industry trade shows and across major North American design markets. Numerous A&D market managers representing many different manufacturers have been trained to present a one-hour version of a level/sustainability CEU course. BIFMA is also accepting and coordinating requests for training sessions. Office furniture dealers will continue to see an increasing number of manufacturers touting level certified products. If you’re not familiar with the standard or the level certification program or if you identify customer training opportunities, please contact the manufacturers you represent or BIFMA directly. For more information, visit www.levelcertified.org
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How You ‘Sell’ Sales Comp Makes All the Difference By Valerie Atkin
It is difficult to get a man to understand something when his salary depends on not understanding it. Upton Sinclair
the ball rather than motivating them to spend time and creativity trying to figure out the new plan. Even worse, misunderstood comp plans have caused more than one valuable salesperson to jump ship.
While significant budget dollars and weeks of effort go into designing sales compensation systems, all too often, they are just “thrown over the wall” to the field, with little thought given to maximizing the investment by effectively communicating the new plan and its objectives.
Salespeople are unfairly accused of trying to “work the system.” Let’s see, if you were told you could make more money for doing X than for doing Y, how long would you persist in doing Y?
Would your company take on a product and not communicate its benefits to the key consumers? Most likely not. Effective sales compensation communication keeps the salesperson’s eye on
How then should an organization approach communicating a new sales compensation plan? A revision of a classic change formula (originally created by Richard Beckhard and David Gleicher and further enhanced by Kathy Dannemiller) is a great place to start:
Need Engage Strategy/ Skills for and X Vision X Action X and X Change Enroll Plan Resources
>
Resistence
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Each element must be fully present to overcome the inevitable resistance. If even one is missing, the sum can be zeroed out quickly. Each omission has an impact as detailed below.
professionals,” and, finally—and most offensively—there is concern that sales managers can’t be trusted and will leak the plan to salespeople who will then “work the plan” to their benefit by shifting year end business.
Need for Change
When salespeople and sales leaders are routinely included on the compensation design, the ounce of prevention is worth a pound of cure.
What got you here won’t get you there. Marshal Goldsmith One of the first (and most annoying) questions we ask as children is, “But why?” Some things don’t change. When is the last time you did something just because someone told you to do it? If you’re like most of us, changing behavior is tough enough when motivated by a clear, compelling reason; without it, the likelihood of success diminishes significantly. Clearly articulating the need for change is essential, especially given how often sales compensation plans change. A 2008 survey of sales compensation practices conducted by The World at Work and the National Association of Sales Professionals (NASP) found 76% of respondents change their plans on a nearly annual basis and 88% have changed plans in the last two years. As one very successful furniture salesperson remarked, “We strive to create a sustainable product, why can’t we design a sustainable comp plan?” When plans are changed annually, salespeople are distracted from getting a good start on the new year as they figure out a line of sight from their actions through the plan to their pay check. Before you spend one minute thinking about the design of the new plan, think about WHY it must be changed.
Engage and Enroll People don’t argue with their own data.
Too often, the folks making the design and communication decisions have never watched the counter return to zero after a good year. Therefore, it’s not surprising that the lack of active enrollment often undermines the very motivation the comp plan is designed to ignite.
Vision If you want to build a ship, don’t drum up the men to gather wood, divide the work and give orders. Instead, teach them to yearn for the vast and endless sea. Antoine de Saint-Exupery A vision is often stated as a goal, or worse, a metric and either way, that’s a mistake. A vision should have NO numbers in it. If it does, it speaks to a focus on finances, not people and relationships. Profit and market share are achieved by hardworking salespeople pulling in the same direction as the rest of the organization. A vision has to inspire sufficient passion to overcome the inevitable obstacles—especially in an industry like office furniture which has been experiencing the perfect storm of a tough economy, shrinking footprints and a transition from private offices to more collaborative spaces.
Strategy/Action Plan
Bob Pike According to the World at Work and NASP Study, “Given the importance of the role of the first-line sales manager in the launch of any new initiative, the numbers of organizations taking little action to prepare them, and gaining their buy-in is surprising.” Sales leaders are typically given very little advanced notice about the intent or details of a change in the compensation plan. There are a number of reasons for this. First, poor planning results in the comp plan being finalized at the very end of the fiscal year—or worse yet—into the new year. Second, engaging first-line sales leaders in the process is not deemed important because they are not “compensation
Planning is an unnatural process; it is much more fun to do something. The nicest thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression. Sir John Harvey-Jones One must be able to easily discern the go-to-market strategy by looking at the sales comp plan. When sales compensation plans are changed, the overwhelming reason—82% of the time, according to the World as Work and NASP Study—is to better align incentive pay and business strategy. continued on page 23
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This is as it should be, except when the sales comp plan is also used to communicate the strategy or worse, as a substitute for it.
Skills & Resources To lead untrained people to war is to throw them away. Confucius Even if salespeople support the strategy and like the new comp plan it still doesn’t ensure success. In addition to a clear strategy and a motivating plan, salespeople need the necessary skills and resources. Some may be light on prospecting skills or not understand the essential nature of creating customer loyalty or treat internal suppliers poorly. Likewise, without the right product and effective marketing, promotional materials or showroom, the seeds of the best ability will fall on hard, dry earth. In addition, lack of adequate sales coaching and the ever-shrinking administrative support diminish otherwise well-skilled, enthusiastic sales forces.
Resistance Everything I have ever let go of has claw marks on it. Annie Lamott
A reduced comp pool is not a secret that can be kept and should be shared with justification. Salespeople are also likely to resist a new comp plan if they do not agree with the strategy it is designed to support or are not able to clearly see how the plan reflects overall business strategy. Most disagreement can be avoided or at least minimized by beefing up the amount of early communication and enrollment and engagement.
3) Lack of trust (in those who designed or approved the plan). Low trust can be due to a perception of lack of integrity, competence and/or benevolence. Again, making salespeople and field leaders a part of the process early on can mitigate a trust issue.
4) Change fatigue. There is no need to define this one. Everyone reading this article understands change fatigue and has likely experienced it themselves. Being mindful of individual and team resilience is the only antidote. In its absence, even the best changes will likely be resisted. (See “Resilience: The Breakfast of Champions” in the Feb. 2010 issue of OFDealer.) There is always a collective sigh of relief when a comp plan is launched—as if the work is done! But if you want to stay fit, you don’t stop running after the first 5K.
Resistance comes in four forms:
Depending on your fiscal, it may be too late for this year, and that makes it just the right time to begin planning next!
1) Misunderstanding. Comp plans with too many moving parts are ripe for misunderstanding. Rule of thumb: The more complicated the plan, the more extensive and varied communication methods need to be. Video and/or email are representative of ‘throwing it over the wall’ because they are one-way communications. There must be a number of opportunities for salespeople to ask questions about how the new comp plan will apply to them.
1. Start early
The best combination is a calculating model that will allow them to run a variety of scenarios, personal statements which allow them to see their business mix and the implications of the new plan and one-on-one time with their well-briefed sales leader.
6. Keep it simple. Too many moving parts and variables makes communication hard and increases distraction
2. Audit your current plan 3. Budget for communication from the beginning 4. Involve and respect your salespeople and sales leaders 5. Design/verify the go-to-market strategy
7. Audit after Q2 in anticipation of next year
2) Disagreement. Salespeople will often cling with their last ounce of strength to the very plan they fought so vehemently against 12 months ago. Typically, disagreement comes from a suspicion that the salesperson will automatically make less.
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Valerie Atkin, presenter of the keynote address at the 2010 WorkPlace Furnishings Conference, is founder and principal of Wells Street Consulting Group, an organization whose mission is to assist in the development of balanced, fully functioning individuals who can create successful organizations of their own. For more information, visit www.WellsStreet.com or email Valerie directly Valerie@WellsStreet.com. PAGE 23
MENTORING
LowCost, BigReturns
What Every Dealer Can Do Now By Trish Brock
When I started in this industry as a rookie dealer salesperson, I was given a few catalogs, a phone and a “good luck kid” pat on the back. I was one of 25 salespeople in a $50 million dealership with what was basically a sink or swim culture. Training was primarily product-oriented and our weekly “sales meetings” consisted largely of reps coming in and showing new products. And, while I had previous experience in sales, marketing and management, I was still a bit overwhelmed by the complexities and nuances of the industry. I was given a few leads and then required to meet with my sales manager to give him weekly progress reports. While I was following my directions, I often found myself chasing vacant lots, AUGUST 2010
libraries (we didn’t rep library furniture...) or a doctor’s office that needed only one or two chairs in the reception area.
I remember telling my sales manager that I wanted to know how successful sales people were winning jobs.
One day my sales manager approached me and said, “Trish, you need to sell more.”
In a very competitive environment, simply asking that question doesn’t yield answers but I hoped that information could be shared.
“No kidding,” I thought. Simply telling me to sell more but not showing me how wasn’t helping me become the star salesperson I so aspired to be. This scenario is not unique to me. There are many industry veterans who can tell the same story from the “old days” and sadly, probably a few from today. After a lot of hard work, frustration and sheer determination, I became a consistent top producer. But I often think about the talent who left and became successful more quickly and with less pain somewhere else. OFDEALER
What obstacles were they running into? How did they navigate difficult clients? How did they sell against competition with stronger value propositions? Which manufacturers would support them not only before but after the job was awarded? How did they network with commercial real estate brokers, the design community, etc.? Intuitively, I knew it was the subtleties of the business that were going to give me the winning advantage. continued on page 25 PAGE 24
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I could read a catalog as well as anyone but overcoming objections wasn’t enough. Not only did I want to develop as a salesperson, I wanted to develop as a professional. What I now realize is that I needed and wanted a mentor. While it’s important to know products and acquire essential sales skills, the real information about how sales are transacted is what I was starved for. It didn’t take me long to realize that selling furniture is not done through a prescriptive process—there are way too many variables. The tacit information that is accumulated through years of experience is what I wanted someone to share with me. I wanted to know how to manage a difficult customer, understand the multiple players and influencers on small and large projects, how to anticipate and manage problems that are inevitable with most projects, etc. I wanted the play by play recap of a couple of hard won projects. What were the challenges and how were they managed and overcome? The path to winning is not straight and I wanted information on all the potential deviations. What I wanted then are the same things that new and even experienced people want now. As small businesses, dealers have traditionally struggled with how to train employees and get them up to speed and accelerate their profitability. Dealer principals often feel isolated, wondering how other dealers are managing similar challenges in different markets. And while sales and product training is necessary, it can be expensive and even then, the learning curve is still steep, feeling like an eternity.
The Case for Mentoring
Mentoring often conjures the stereotype of an older business person who mentors a younger business person, but in fact, mentoring is really about a more experienced person sharing valuable insights with a less experienced person. Mentoring can be one on one, among peers, there can be team mentoring, mentoring with a specialty advisor, a surrogate mentor (someone from outside the dealership but with dealer experience) or virtual mentoring. It can cross job functions, age, gender, be among peers and can cover an array of topics. For example, Jack Welch, former CEO of General Electric, introduced reverse mentoring by which younger staff members helped senior staff members gain a more youthful perspective. Welch himself chose a younger mentor and tapped into his expertise to learn about the Internet and their competitors’ web presence. Research has proven repeatedly that there are sound business cases and strong ROI for mentoring. Consider: 4A study by the American Society for Training and Development found that training alone increased managerial productivity by 24%, but jumped to 88% when mentoring and coaching were combined. 4A national financial services institution realized an increase in new business generation of over 600% by a group in a mentoring program compared to a similar group not in the program (The Mentoring Company, 2009). 4Sapphire Technologies Worldwide’s mentoring program gets “new hires up to speed faster…mentoring by a more senior person speeds up the learning curve. Taking three months to learn a job isn’t possible anymore. Mentoring shaves weeks off an employee’s training.” Information Week, April 09
Both large and small companies are realizing the many benefits of mentoring and finding creative and cost effective ways to implement programs.
What is Mentoring?
“The goal is to use the knowledge that resides within an organization to its full advantage” says Samuel Greengard in Workforce, March 2002.
Mentoring is the transfer of tacit knowledge, the type of knowledge found in people’s heads and nowhere else, from one set of employees to another.
With four different generations now working together in the workplace, there are plenty of perspectives and experiences that are floating around in people’s heads. And without effectively tapping into them, precious human capital could be wasted.
In the absence of mentoring, important information and experiences are isolated within an individual’s mind, and when the people who posses this knowledge retire or leave the company, that information leaves with them. continued on page 26
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Mentoring helps ensure that your assets, your people and the information they possess, are kept within your dealership. As dealers downsize or people leave for other reasons, leveraging tacit information becomes even more critical than ever.
Coaching and Mentoring – Not the Same While coaching and mentoring are often used interchangeably and they are both beneficial, there are distinct differences between the two. Coaching often involves “telling or teaching” another. Think about a football coach: information is given but it’s usually a one-way conversation. The person being coached is usually told how to do something, and then expected to do it that way. The coach is often responsible for the mentee’s success or failure. Coaching is usually based on short-term needs and administered intermittently on an “as-needed” basis. Often the coach is the boss. This would describe many sales managers’ roles. Mentoring promotes learning in a different way. The mentor will share information, experiences and perspectives but then allows the mentee to assimilate the information and reach their own conclusion. A wise mentor knows that there is more than one solution to any problem and resists the temptation to solve the problem for their mentee. He or she will give the mentee the latitude to solve the problem themselves under a watchful eye. The mentee is in charge of his or her own learning. The mentor role is heavy on listening, providing a role model and making suggestions and connections. The relationship is long term. The responsibility is on the mentee to ask the questions and learn from the wisdom and experiences offered. The mentee is not expected to do things just like the mentor, but rather use the shared experiences in ways that will enhance their own performance. A good mentor will help the mentee identify and build their strengths and develop strategies for minimizing their weakness. A good mentor will encourage the mentee to explore the possibilities to bring fresh ideas and solutions to the dealer. The mentor is seldom the mentee’s boss. Most experts insist that the mentor not be in the other person’s chain of command.
AUGUST 2010
How to Mentor In a paper on mentoring, the American Productivity and Quality Center outlined the basic skills required to be a successful mentor. In short: 1. Observation – Strive for objectivity, take notes and evaluate the protégé’s actions without being judgmental. Have established criteria to evaluate performance which have been developed through personal experience. 2. Listening – Be attentive, patient and encourage the mentee to speak freely while keeping an open mind to understand the content behind responses. Don’t interrupt. Resist the temptation to “tell” the mentee what to do. A mentor listens and will ask questions, allowing the mentee to discover their own solutions. 3. Empathy – Adopt the perspective of the other person to better understand what they are thinking and feeling. This positions you to ask questions that will reveal additional information and create a stronger learning experience. Don’t expect the mentee to think and be just like you, but do position yourself as a role model. 4. Verbal Communication Skills – Strong verbal skills will allow you to be explicit and thorough when speaking and listening. Ask open-ended questions to elicit more than simple one-word answers and to promote a deeper understanding. As dealers look for ways to accelerate productivity, thrive in a challenging economic climate, retain top talent, gain market share and improve leadership skills, consider that the skills and information needed might be right under your roof or close by. Implementing a mentoring program could ignite increased learning and performances to propel your dealer to the next level, even in this economy.
Trish Brock, Principal of Trish Brock & Associates, is a well-known industry consultant. Her cross functional consulting group specializes in increasing sales through effective differentiating brands and materials that support the strategic sales process. TB+A also conducts Mentoring Circles for groups wanting to accelerate new business development. She can be reached at 720-747-5547, via email at tbrock@trishbrockassociates.com or visit her on the web at www.trishbrockassociates.com
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S A V E
T H E
D A T E
OFDA 2010 CONFERENCE
October 9-12 Hyatt Regency Coconut Point Resort and Spa Bonita Springs FLORIDA