April 2012 Office Technology

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CONTENTS Volume 18 • No. 10

FEATURE ARTICLES 10

Vertical Markets A growing area of focus for manufacturers & dealers

P R I N C I PA L I S S U E S Sales Compensation Plans Focus on rewarding a job well done

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by Luis Gonzalez SalesScoreKeeper LLC

by Brent Hoskins Office Technology Magazine

When creating a compensation plan, it is important to review exactly what you would like it to do for your company and your sales professionals.

Dealers concerned about declining margins or losing customers may want to develop a vertical market selling strategy.

16

MPS: The Right Path Your approach, model & partners are key

FutureVision 2012 Growth Achievement Partners hosts dealer event

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by Brent Hoskins Office Technology Magazine

by Jennie Fisher GreatAmerica Leasing Corp.

Growth Achievement Partners hosted its invitationonly FutureVision 2012 event on March 1 in Kansas City, Mo. Thirty-five owners and managers attended.

When it comes to implementing MPS, dealerships are finding opportunity in moving first to a “service-and-supply-only” model.

20

The Case for Social Media Looking to connect with new customers, right?

Leadership Styles Pulling employees to higher performance levels

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by David M. Fellman David Fellman & Associates

by Corey Smith Dealer Marketing Systems

Real leadership in business is the act of pulling your employees forward to a desired level of performance. The most important word here is “pulling.”

You may have contemplated adding social media to your marketing efforts. Is there value in running social media campaigns?

COURTS & CAPITOLS 22

Social Media Attacks You must respond in the proper way

SELLING SOLUTIONS Selling With Style Remember, all customers are not alike

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by Robert C. Goldberg BTA General Counsel

by Larry Breed Precision Hiring & Development

Customers have a new weapon to use when they do not like something about your company — posting negative comments on social media sites.

P R I N C I PA L I S S U E S 26

A Briefing: Lexmark Manufacturer hosts media day Feb. 28

by Brent Hoskins Office Technology Magazine

Executives at Lexmark International Inc. met with industry analysts and editors on Feb. 28 at the company’s Lexington, Ky., headquarters.

A salesperson who understands basic behavioral (buying) styles, and learns to use this knowledge in his (or her) sales calls will close more sales.

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

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• BTA Highlights

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Executive Director’s Page

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BTA President’s Message

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Advertiser Index

4 | w w w. o f f i c e t e c h n o l o g y m ag.com | April 2012

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EXECUTIVE DIRECTOR’S PAGE

Marketplace Offers BTA Member Specials

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hile BTA is — and will always be — a dealer-driven, dealer-focused organization, there are a number of hardware, software and supplies providers that are also members of the association. As members, they have demonstrated their support of the dealer channel and many have supported BTA through district event sponsorships, advertising, etc. Their commitment to BTA is greatly appreciated.

Several years ago, seeking a means to connect our dealer members with these supportive vendor members, we launched the BTA Marketplace (www.bta.org/BTAMarketplace). Have you looked at this member benefit? There you will find a list of participating vendors, each offering a BTA dealer member discount or value-added offering.

Below is a sampling of the special offers from several of the current vendor participants. If any are of interest to you, visit the BTA Marketplace online. The process is simple. Click on the vendor listing, which leads to the contact information and necessary discount code. You will need your username and password to access the code.  CAPSYS, providers of a Web-based capture solution, allows member dealers to receive a 100 percent margin on the first 60 days of a 36-month SaaS sale, if they sign up

by June 30, 2012.  Color Imaging, a manufacturer of OEM and aftermarket copier and printer toners, offers new member dealers and those who have not ordered in the last 12 months an iPod Shuffle with their first order totaling $200 or more.  DocuWare, a document management software company, will waive the annual Partner Support Fee for the first year when

a member dealer signs up as an Authorized DocuWare Partner.  ESP Energy Intelligence, a manufacturer of power protection technology, offers member dealers preferential pricing on ESP’s full range of power protection products.  Image Star, a wholesaler of IT consumables, offers member dealers the opportunity to create a custom website through Image Star at no charge for the first six months.  InkCycle, specializing in aftermarket inkjet and toner cartridges, offers member dealers who are new, current or have not ordered from InkCycle recently 20 percent off their first order. With their first order, dealers will also be offered a 30-minute consultation with InkCycle’s vice president, Carl Little.  With a new Miracle Service dealership management software system, member dealers will receive one free module of their choice (valued at up to $640), plus special payment terms.  Nano Pacific, specializing in the distribution of aftermarket imaging supplies, offers member dealers a 10-percent discount on their first invoice, free shipping on U.S. orders of more than $300 and a $25 gift card of their choice (Amazon, Starbucks, etc.) on orders of more than $500.  Square 9, a developer of businesscentric software solutions, such as its flagship product, the SmartSearch Enterprise Content Management Suite, offers member dealers free direct connectivity to SmartSearch through the Office Workflow module.

(SmartSearch offers direct touch-panel integration with the Kyocera and Sharp lines.)

To see the full list of BTA Marketplace participants and their special offers to BTA member dealers, visit www.bta.org/BTAMarketplace. This is just one more way that BTA membership pays.  — Brent Hoskins

Executive Director/BTA Editor/Office Technology Brent Hoskins brent@bta.org (816) 303-4040 Associate Editor Elizabeth Marvel elizabeth@bta.org (816) 303-4060 Contributing Writers Larry Breed, Precision Hiring & Development www.precisionhiring.com David M. Fellman, David Fellman & Associates www.davefellman.com Jennie Fisher, GreatAmerica Leasing Corp. www.greatamerica.com Robert C. Goldberg, General Counsel Business Technology Association Luis Gonzalez, SalesScoreKeeper LLC www.salesscorekeeper.com Corey Smith, Dealer Marketing Systems www.dealermarketingsystems.com

Business Technology Association 12411 Wornall Road Kansas City, MO 64145 (816) 941-3100 www.bta.org Member Services: (800) 505-2821 BTA Legal Hotline: (800) 869-6688 Valerie Briseno Membership & Marketing Manager valerie@bta.org Mary Hopkins Database Administrator mary@bta.org Teresa Leerar Bookkeeper teresa@bta.org Brian Smith Membership Sales Representative brian@bta.org Photo Credits: Comstock Images, Hemera Technology, Photodisc, Stockbyte. Cover created by Bruce Quade, Brand X Studio. ©2012 by the Business Technology Association. All Rights Reserved. No part of this publication may be reproduced by any means without the written permission of the publisher. Every effort is made to ensure the accuracy of published material.

However, the publisher assumes no liability for errors in articles nor are opinions expressed necessarily those of the publisher.

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before

after

This is a game-changer: Toshiba and Adobe introduce LeanPrint.

It’s the greatest leap forward in printing technology in a generation. It’s LeanPrint, and Toshiba collaborated with Adobe to bring it to you. Much more than just shrink-to-fit, LeanPrint reads and intelligently reformats documents, optimizing toner, paper, and readability. A 12-page document prints out in 4 pages with a single click.

To view a demo of LeanPrint in action, visit: business.toshiba.com

©2012 Toshiba America Business Solutions, Inc. and Toshiba Business Solutions. All rights reserved.

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BTA PRESIDENT’S MESSAGE 2011-2012 Board of Directors

Have You Visited BTA Online Lately?

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f you are like me, then I know you have little extra time in the day.

But have you taken the time to visit BTA’s website, www.bta.org, lately?

We have made a number of significant changes in recent months, starting with the launch of a new look and platform in August 2011. I believe that after a few minutes on the site, you will find yourself saying: “I didn’t know BTA offered that.”

Today, our website is our primary means of providing information to our current and prospective dealers. Recognizing that, the BTA staff in Kansas City, Mo., works hard to keep the site up to date. In fact, updates are made every week, if not daily. So, ours is not a static, outdated website collecting dust, so to speak. Instead, it is a dynamic site that is designed to be a valuable industry resource for your use every day.

Since, at the moment, you are looking at BTA’s printed magazine (unless, of course, you are reading this column online), allow me to provide you a sense of some of the things you will find at www.bta.org. And, when you have some extra time, be sure to visit the site. (Note: In many cases, you will need your username and password to access members-only pages.)  Office Technology (www.bta.org/ OT) — I mentioned that you could be reading this column online, but you could actually be thumbing through the pages of a virtual copy of any issue of this magazine produced since January 2006.  Verizon Wireless Discount Program (www.bta.org/Verizon) — There is a very good chance that you have not seen this member benefit. It is the latest to be added to the site.  BTA District Events (www.bta.org/

DistrictEvents) — You have either been to one of BTA’s five annual district education/networking events or you are wanting to learn more about the lineup. This page provides the dates and locations of the remaining 2012 events, plus testimonials and photos from past district events.  BTA Legal Services (www.bta.org/ Legal) — This is one of the most frequently visited pages on the site, given that many would agree that legal services is at or near the top of the list of BTA’s many valuable benefits. While on this page, take a look at the many sample dealer agreements that are available for download.  BTA Scholarships (www.bta.org/ Scholarships) — Did you know that BTA has awarded more than $1.3 million in $1,000 and $1,500 scholarships to the children of qualified dealer members since 1984? Visit this page for details on how to receive an application. There is even a downloadable PDF for display in your employee break room.  BTA Education (www.bta.org/Education) — Here you will find the details of BTA’s many education workshops, including dates and locations, and other thirdparty training programs. Plus, you will find registration information for BTA’s monthly Building My Business Webinar Series.  BTA Ask the Analyst (www.bta.org/ AskTheAnalyst) — Have you ever found yourself looking for some industry data to help with a sales presentation? If so, this member benefit will likely be of help.

Through our relationship with the market research firm InfoTrends, you can ask questions directly of leading industry analysts.

This list represents only a small portion of what you will find on the BTA website, but you get the idea. Save www.bta.org as a favorite in your browser and visit often to see how BTA can help you.  — Tom Ouellette

President Tom Ouellette Budget Document Technology 251 Goddard Road Lewiston, ME 04240 touellette@bdtme.com President-Elect Terence Chapman Business Electronics Corp.

219 Oxmoor Circle Birmingham, AL 35209 tchapman@businesselectronics.com Vice President Todd J. Fitzsimons Network Imaging LLC 122 Spring St. Southington, CT 06489 tjfitzsimons@ni-ct.com BTA East Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com BTA Mid-America Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.com BTA Southeast Jerry Jackson All South Copiers Inc. 3610 Kennesaw N. Industrial Parkway., Ste. D Kennesaw, GA 30144 jj@ascopiers.com BTA West Ronelle Ingram Steven Enterprises Inc. 17952 Sky Park Circle, Ste. E Irvine, CA 92614 ronellei@msn.com Ex-Officio/Immediate Past President Rock Janecek Burtronics Business Systems Inc. 216 S. Arrowhead Ave. San Bernardino, CA 92408 rjanecek@burtronics.com Ex-Officio/General Counsel Robert C. Goldberg Schoenberg Finkel Newman & Rosenberg LLC 222 S. Riverside Plaza, Ste. 2100 Chicago, IL 60606 robert.goldberg@sfnr.com

8 | w w w. o f f i c e t e c h n o l o gymag.com | April 2012

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It’s no longer about one or the other. Bringing these two disciplines together means you can protect your existing hardware business while generating new revenue streams through MNS. And you can do it with the backing of Agiliant’s MITOS™ (Managed Information Technology & Output Services) offering combined with OKI’s turnkey Total Managed Print™ solution.

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Vertical Markets A growing area of focus for manufacturers & dealers by: Brent Hoskins, Office Technology Magazine

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hose dealers who are focused on down-the-street selling, but concerned about declining margins or the increasing risk of losing customers to competitors, may want to give more thought to developing a vertical market selling strategy. That is not to say that the historic, horizontal approach should be abandoned. Instead, it would be augmented by a new focus that can help boost margins, strengthen existing relationships and win new customers.

Today’s customers are eager to hear how they can optimize document workflow and management. This interest and expectation was born, in part, out of the success of dealers and others who have embraced the managed print services (MPS) opportunity, says Sam Errigo, senior vice president of Konica Minolta Business Solutions.

“Early adopters of MPS focused on initial cost savings as the primary benefit and are now looking for the next level of thought leadership related to print management,” Errigo says.

“Customers are now asking, ‘Do you really know my business beyond meter reads and alerts? What is your strategy to drive less print, introduce workflow enhancement and drive deeper cost savings across the enterprise over the next three to five years?’ If you cannot address these questions, then you are just a cost consolidator.”

Going forward, a key strategy to ensure such questions can be properly answered on a regular basis is to excel in certain vertical markets. “The next wave of salespeople in our industry need a higher level of competency around specific customer business requirements and enabling technology that ties to vertical markets,” Errigo says. “Sales associates will need to lead with a compelling value proposition to a real business problem that customers are trying to solve.”

Similarly, Peter Davey, director of professional services and advanced technical support for Toshiba America Business Solutions Inc., says he believes a vertical market strategy makes perfect sense. “We have evolved to become servicesled instead of hardware-led,” he explains. “I think the next,

natural evolution of being services-led is to focus on customer outcomes and develop more expertise in vertical markets.”

Toshiba has been making this transition.

A look at the company’s website reveals downloadable PDFs focused specifically on the manufacturer’s solutions for such verticals as the health-care, legal, education and financial markets. “We have thoughtfully looked at how we have been successful in certain verticals,” Davey says. “Increasingly, we are changing how we present ourselves and how we interface with customers by describing the services offerings and the business processes we can help them enhance, focusing on the objectives they have and how we can help them meet those objectives.”

Konica Minolta is making a similar transition. In January, the company announced EnvisionIT, a new brand position that encompasses solutions and services for the education, legal and health-care markets. “Over the last 18 months, we examined our vertical markets and developed the EnvisionIT strategy,” Errigo explains. “We describe it as an ‘umbrella strategy’ that clearly explains our value proposition to key vertical markets and how we deliver services and solutions relative to managed IT services, managed print services and integrated software solutions that impact workflow.”

The “IT” in EnvisionIT, says Errigo, is a reference to the desired strategic print management direction of a customer in one of the target verticals going forward. “If you can envision it, we can help you craft the right solution set to improve your overall business operations,” he says. “So, we align our business strategy to the very specific outcomes that are important to our customers.”

While there appears to be a new, growing emphasis on vertical market opportunities among manufacturers, at least one manufacturer points to a long history of a vertical-market focus. “Lexmark has a history of understanding vertical markets and focusing our sales and development efforts on those markets,” says Sean Endicott, senior manager

10 | ­w w w. o f f i c e t e c h n o l o gymag.com | April 2012

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of North America Channel dealership that has already business development at found some success in pur“In talking to our dealers, one Lexmark, noting that the suing verticals, but where thing that comes through ... vertical focus dates back to there are plans to ramp is that solutions, particularly the early 1990s. “So, we thorup selling efforts. “I would of the vertical variety, are a oughly understand the probwager to say that there are high priority for nearly all of lems that customers face as probably one or two reps it pertains to output.” who have ‘found their way’ them. However, they would Endicott cites the example and 60 to 70 percent of what like to be able to sell them of how one of the company’s they do is vertically focused,” with more frequency ... ” many solutions — Downtime he explains, noting that as — Sean Endicott Reports — can address a the dealership ramps up its Lexmark International Inc. problem in a particular vertiefforts to focus, for example, cal, in this case, the healthon the health-care vertical, care market. “This helps to solve a problem that physicians so, too, will the sales reps. “Dealers will need to make a conand nurses run into when they need critical patient data dur- scious effort to train and develop the right solutions set to ing a planned or unplanned network outage,” he explains. address the verticals they serve. The transformation of the “Oftentimes, they are printing pages and pages of backup sales team will take place over time as they [team members] data to have on hand, just in case there is a network outage. focus on their target markets and gain share as a percentage That is costly. Instead, with our Downtime Reports solution, of their installed base. Over time, the percentage of their nonthat data can also be stored on and retrieved from the MFP. vertical revenue will become lower and sales associates will So, as IT generates updated information, it is sent to the MFP become vertical-market pure instead of generalists.” as well, so that patient data can be retrieved from the device.”

Beyond the question about the need for specialists, the With such solutions available and with the growing focus dealer’s next couple of questions are likely: Where do we beamong manufacturers on vertical markets, are dealers tak- gin in boosting our vertical selling efforts? How many vertiing advantage of the selling strategy? “I have the sense that cal markets should we focus on at our dealership? it is all over the board,” Davey says. “This is highly subjective, “As a dealer, I would look at my existing base of customers but my sense is that the ability of sales reps to be successful to figure out, ‘Who do I serve today and how do I retain them is somewhat predicated on the flexibility that local manage- long term as a first step?’” Errigo advises. “I would break out ment gives them in how they go out and attack the market.” my customer base by vertical and create a strategy to expand Endicott shares a similar perspective. “They are certainly services that align with meaningful business outcomes. I getting there,” he says. “In talking to our dealers, one thing would also evaluate my top three verticals and ask, ‘What am that comes through loud and clear is that solutions, partic- I doing well? How do I replicate or commercialize the offering? ularly of the vertical variety, are a high priority for nearly What can my hardware provider offer for these verticals from all of them. However, they would like to be able to sell them a go-to-market strategy?’ From there, you start to build out with more frequency than perhaps they are doing today.” your next couple of verticals.”

While manufacturers have the tools, resources and perThe dealership should not look to become an “expert resonnel to assist their dealer partners in pursuing vertical source” in too many verticals, Endicott says, recommending market opportunities, perhaps the first step for any dealer a conservative approach. “My advice would be to start by zejust ramping up is to assess his (or her) dealership’s current roing in on a narrow range of one or two, rather than a wider sales team. For many, that assessment likely leads to the range of five or six,” he says. “If there are a couple of different question: Does vertical market selling require specialists? verticals where you can become a specialist, that’s where you Davey answers “yes,” noting that selling into vertical mar- are going to start to build credibility. As you develop profikets can be difficult for general line reps. “When they get ciency, you can broaden your opportunities some, but we try into complex technology conversations, that’s when they to focus our dealers on no more than about three verticals.” struggle,” he says. “Typically, you have to support them with Of course, there are many dealerships that have already professional services personnel or other types of specialists developed successful vertical selling strategies. What are who can manage those conversations for them. So, the most some of their predominant traits? expeditious thing to do is to put teams of account reps ton From Errigo: “The ones who are accelerating their gether that include one or two application specialists.” businesses are taking full advantage of the toolsets and the Errigo offers a similar view, but cites the example of the training that companies like Konica Minolta are providing.

12 | ­w w w. o f f i c e t e c h n o l ogymag.com | April 2012

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The payoff and value of They are investing in the a solutions-based vertical training and development of “The ones who are market strategy is clear, Entheir people.” accelerating their businesses dicott adds. “For those who n From Davey: “The leadare taking full advantage are just looking at devices ership has a short-, mediof the toolsets and training coming off lease, when you um- and long-term strategy that companies like Konica ask questions and don’t get in terms of revenue attainthe answers you want, you ment. They plan for a certain Minolta are providing. They have to move on to the next amount of their business to are investing in the training customer,” he explains. “If come from protecting their and development of their people.” you are focused on selling machines-in-field (MIF) with — Sam Errigo solutions, the conversation conventional sales in order Konica Minolta Business Solutions doesn’t have to end there. to balance with verticalYou are no longer talking market sales. Plus, the right compensation models are in place to influence the right be- about a device; you are talking about solving a problem. havior throughout the dealership, from general line reps to That’s a different conversation. You will have new opportunities you haven’t had before. Eventually, break/fix service to professional services.” n From Endicott: “The solutions priority resonates across that will lead to higher-margin opportunithe dealership, within management and among sales reps, ties in longer-term engagements.” n Brent Hoskins, executive director of the specialists and service techs. Dealerships with employees Business Technology Association, is editor who have a full understanding of how vertical workflow solutions can drive this new footprint, both in the short term of Office Technology magazine. He can be reached at brent@bta.org or (816) 303-4040. and the long term, see the most success.”

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MPS: The Right Path Your approach, model & partners are key by: Jennie Fisher, GreatAmerica Leasing Corp.

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ith the expansion of the distribution model, the decline of MFP placements and the migration of clicks from the MFP to the printer, many dealers are forced to evaluate their go-to-market strategies. When it comes to implementing managed print services (MPS), office technology dealerships are finding opportunity in moving first to a “service-andsupply-only” model, with the intent to add new hardware three to nine months down the road.

This seems to be a more viable option for many in today’s changing environment.

Today, dealers need to seize the opportunity to protect their current customers and focus on the total output in the environment rather than new equipment placements. This takes a more consultative approach to understanding their customers’ environments. Now is the time for dealerships to position themselves as business advisors to help customers realize the cost savings and value that comes with an MPS solution.

Some may argue that MPS is becoming a commoditized product that will run its course. Increasing competition and pressure on margins are creating this mindset. Some are wondering: “Is there a profit to be made and is this a viable strategy?” Our recent Annual Dealer Study indicates that yes, it is. Fifty-nine percent of respondents have implemented an MPS strategy within their businesses (up nearly 10 percent from last year). Fifty percent of those who have not say they are planning to in the next 12 months. MPS was, hands down, the most highly mentioned “most significant opportunity” for the coming year among our dealer respondents. This tells me that MPS is still very much a strong initiative in the marketplace — and a viable strategy. Dealers just need to find the right formula for success in their marketplaces. Many of those who have implemented MPS are still trying to figure out that formula.

Dealers who have been successful in growing their organizations by adding MPS are typically providing service and supplies under a separate contract. Kevin DeYoung, president of QualPath in Pompano Beach, Fla., has done this for several years and is experiencing success in counseling his customers to optimize their environments.

He demonstrates his value by allowing his customers to add profits to their bottom lines. He states: “MPS allows companies to reduce employee burdens, save money on service and supplies and foster any sustainable initiatives they might be working on.”

With all of this “upside” why are so many dealers struggling to make MPS a success?

Change, in general, can be overwhelming for many dealership owners and their employees. Determining what their MPS strategies will look like, hiring solutions specialists who are experts in the field of MPS, training and educating their teams, pricing, operations and administration — all of these challenges are real.

Once a dealer moves beyond the initial MPS challenge and lands on a strategy to implement, he (or she) still needs to consider his strategy for approaching customers. Many in the industry have embraced Photizo Group’s Expanded Customer Adoption Model, which consists of four stages: (1) control the print environment; (2) optimize it; (3) enhance it; and (4) converge other managed services into the equation.

When looking at this model, you can see that a different mentality is required of dealers to be successful today. Rather than approaching with equipment placements as a major part of the equation, many are starting to think more holistically about their customers’ organizations and engaging with them at a more strategic level. One of the major challenges is realizing that MPS requires a different mentality. It requires a more consultative and strategic approach with a longer selling

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“In my opinion, having had expecycle. Dealership sales teams need to rience in MPS since 1999, the model be retrained (and sometimes restruc“It is critical for dealers that should be followed is the Photizo tured) in order for this to work. to take advantage of the four-stage model,” Dunn says. “DealIt is also important to consider that technology and services ers can no longer subscribe to the vibusinesses must do what they can to offered ... they should sion of going in and refreshing equipprotect their market share in these ment right away. The economic factors changing and challenging times. Under be availing themselves make starting with that first phase so ideal circumstances, when selling MPS, of the administrative important. Dealers need to deeply unyou would simply go in and refresh a efficiencies available ... “ derstand the customer’s environment customer’s fleet from the start. Today, so that they can actually manage the with so many other companies calling print and then do the right thing for on your base (paper companies, toner companies, VARs, etc.), it is not that simple. It may now make the customer in the refresh and optimization stage.”

When dealers are able to change their mindsets and more sense to go in and apply the “land-grab” approach before someone else does. However, a “land grab” (first protect- strategically focus on their customers’ businesses, new ing your customer relationship by executing a contract for challenges will occur. They will get a few customers under service and supply contracts and understand that the adservice and supplies) requires a consultative sell.

Teri Dunn, a sales consultant with Print Management ministration piece can be difficult to manage. Once they Solutions Group, is a big believer in the Photizo four-stage secure multiple accounts with multiple machines, the model and helps dealers sell MPS following a process that mounting number of details associated with capturing, collecting and billing the clicks can be overwhelming. fits well with the overall concept.

According to DeYoung, one of the first challenges a dealer has is monitoring his fleet. “You need to know what these printers and copiers are doing,” he says. “There are several fleet monitoring services [GreatAmerica’s FleetView among them], that allow the dealer and client to grab the volume of printing in an efficient way.”

However, he says, many dealers are not using the monitoring software and some monitoring systems do not integrate with their ERP systems. This creates more complexity, hands-on administration and potential for errors, he says.

It is easy to imagine the headache that collecting data on a growing number of devices could cause. If you think about it, dealers have gone from an environment where they are monitoring a handful of copiers, to monitoring 20 to 100-plus output devices. Automation and integration are critical to increase efficiencies and the effectiveness of the administration.

“It is critical for dealers to take advantage of the technology and services offered in the marketplace,” DeYoung says.

“For anyone out there doing MPS, they should be availing themselves of the administrative efficiencies available today — from software tools to billing services.”

Dunn agrees that the challenges with billing and collecting are seldom recognized before they become issues for dealers and, oftentimes, for their customers. “Dealers don’t always understand the headaches that can be associated with billing and collecting their service and supply contracts,” she says. “They (dealers) need a program that can grow with them throughout all of the Photizo stages.”

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considering MPS, dealers at first may “Managed print is think: “We’ve been not like CPP on a in leasing and cost copier lease. That’s per page (CPP) for easy stuff. MPS is ever. We are all over more complex ... this and we can build out our own systems there are just a lot to accommodate our more moving parts.� approach.� One of the reasons they have been successful at administering CPP is the backbone and infrastructure that has allowed them to do this.

Steven Power, owner of Sales and Marketing Solutions, and the facilitator of GreatAmerica’s MPS Navigator Business Planning Program, says that MPS is different. “Managed print is not like CPP on a copier lease,� he says. “That’s easy stuff.

MPS is more complex. There’s the printer fleet portability, the variety of contracts and tech refreshes that have to occur within the term of the contract — new printers coming and others going — there are just a lot more moving parts.�

Powers has witnessed dealers making costly mistakes. “By mismanaging the administrative backend of an MPS contract, you can go from a 50 percent profit margin down to a 30 percent margin really quickly and you don’t even know where it went,� he says. “One question everyone has is: ‘How do I make money in MPS?’ The other question is: ‘And how do I know I’m making money?’ This is because the administration can be complex.

If you’re not using the right systems, it’s easy to miss me ter reads or transposed numbers or mistakes made by man ual intervention. That can lead to the cost of chasing down information that may have been missed, not to mention the cost of having people on the payroll. Anything they can do to streamline their operations saves them costs.�

At the end of the day, MPS remains an exciting oppor tunity for dealers to grow their businesses. That growth potential is far greater if the right planning, training and utilization of available technology, programs and systems are fully leveraged. n Jennie Fisher is senior vice president and general manager for GreatAmerica Leasing Corp.’s Office Equipment Group.

She is responsible for the sales, marketing, operations and financial performance of the business unit.

GreatAmerica offers a variety of support services, such as GreatAmerica Fleet Billing, for dealers pursuing the MPS opportunity. Fisher can be reached at jfisher@greatamerica.com or (319) 261-4044.

Visit www.greatamerica.com.

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www.offi cetechnol ogymag . c om | Ap ri l 2012 | 19

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The Case for Social Media Looking to connect with new customers, right? by: Corey Smith, Dealer Marketing Solutions

I

n your office technology dealership, you may have contemplated adding social media to your marketing efforts. Most small and medium-sized business owners do not know where to start and wonder if there is even value in running social media campaigns for their businesses. Social media’s primary purpose is about being social and it is through that social aspect that word-of-mouth is empowered.

Too often, I hear business owners complain about social media. I have heard all the reasons why social media is bad: n “I do not want people to know what I am doing.” n “I cannot mix my personal and business lives.” n “I do not understand why anyone would want to hear what I have to say.” n “None of my contacts are on social media sites.”

I have heard plenty of other reasons, too. In fact, the list is as long as the day. I think that these reasons for not wanting to participate in social media show a level of shortsightedness because it means that the people making these excuses are not willing to look at social media from an objective or realistic point of view.

First, let’s look at some social media statistics so we can put a framework around the reasons why you should use social media. Certainly, we could write many more data points, but I think you will get the idea from these four. n 46 million Americans check social media profiles daily.

(Edison Research) n 50 percent of SMB owners report gaining new customers through social media. (Mediabistro) n 51 percent of Facebook users and 64 percent of Twitter users are more likely to buy from the brands they follow on social media sites. (Mediabistro) n Of SMB decision-makers who use social media, 86 percent use Facebook, 41 percent use LinkedIn and 33 percent use Twitter. (Zoomerang) Even with these statistics, the reality is there are three primary reasons why businesses need to seriously consider social media as part of their overall marketing strategies.

Failing to understand these three critical aspects will cause you to miss out on spectacular marketing opportunities for your business.

Search Engine Optimization When other websites link to your website, you get a vote for your credibility and relevance. It has been a long-standing tactic for search engine optimizers to generate inbound links to their websites to help build search engine credibility.

In fact, spammers love this tactic, as they can often get many links in comments on other people’s blogs and websites.

When you post a link in your social media channels, your link becomes another inbound link to your website. If those in your network share that link, it means that you have even more inbound links.

However, link building is not the only benefit. Social media posts (profiles, articles, etc.) are indexed in search engines (assuming your privacy settings do not prevent it). Many times, your social media profiles and status updates/tweets will even appear above your website in search

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engines, which will have a chance of driving traffic to you. But do not forget — search engine optimization does not mean you will get traffic.

traffic you will generate.

You can also destroy your influence Whether it is LinkedIn, by only posting links to your website, Twitter or Facebook, but never providing any value to your you have an readers. No matter how many people opportunity to build Traffic Generation follow or friend you, if you are always new relationships When I started my latest blog, I had asking them to do something (clicking no rankings in search engines. In the beon a link) but never return anything with people you do ginning, Google had no idea that my new (information, engagement, humor, etc.) not already know. blog even existed. Long before search enthey will begin to ignore you. That will gines took notice, I was able to garner negatively impact your search engine a fair amount of traffic, which I was able to gain through optimization and traffic. posts to my social networks.

So, the moral of the story is: Be social.  Even now, after my personal blog’s rankings have grown Corey Smith is the author of “Do It Right: A CEO’s Guide to Web and people are seeing my blog more often in search engine reStrategy” and is chief Web architect for sults, I can look back and analyze my traffic and see a direct Dealer Marketing Systems, a marketing correlation of traffic due to posts on social media sites. When company dedicated to assisting dealerships I post a link to my blog (depending on the time of day and how with Web, print and direct mail strategies. compelling my message is), I can see a reasonably consistent You can connect with Smith at amount of new traffic. If the post on my blog is particularly http://www.coreysmith.ws. compelling, then I can see that number double (or even triple) Visit www.dealermarketingsystems.com. thanks to people within my network sharing the post.

Remember that just because you get traffic, it does not mean you are going to make a sale.

Relationship Building As I mentioned before, social media’s primary purpose is to be social. However, there is more than just the social aspect. Social media is about actively fostering relationships with new people.

I think it is laughable when I hear the comment: “None of my friends are on social media sites.” To presuppose that people you know are the only people you should connect with on social media sites is a common mistake in the way people view the intent of social media. Virtually all social networks that have been built — including Facebook, Twitter and LinkedIn — were founded on the idea that you can connect with people you have never met before.

The hallmark of social media for business is that you can create and build new relationships. Whether it is LinkedIn, Twitter or Facebook, you have an opportunity to build new relationships with people you do not already know.

The Catch?

There is a catch to all this. While it is great that you can gain a stronger presence in search engines and you can garner new traffic on your website, there is a requirement.

That requirement is that you have strong relationships.

Google, Bing, etc., understand the influence of your network. The stronger your influence, the more weight they will give to your posts. The more people you influence, the more www.officetechnologyma g. c o m | A p r i l 2 0 1 2 | 21

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COURTS & CAPITOLS

Social Media Attacks You must respond in the proper way by: Robert C. Goldberg, General Counsel for the Business Technology Association

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ustomers now have a new weapon to use when they do not like your equipment, service, charges and/or policies.

Posting negative comments on social media sites has become a tool to disparage your business.

Often, an end user uses these postings to elicit concessions from the reseller. Monitoring social media sites and knowing how to respond to postings is becoming a new skill set for all dealers. In fact, it may not even be a customer, but a former employee, competitor or disgruntled employee who is posting negative messages.

It is essential to monitor social media sites so you know when postings regarding your business are being made and what they are about. An initial step, however, is to make it easy to communicate with you and your company. It has often been suggested that a follow-up call should be made after every installation and service call. If that call establishes any dissatisfaction, it can be addressed before it becomes a war of words. Often, complaints are not justified, but by satisfying the end user promptly, the cost in dollars and reputation can be minimized.

First, accept all phone calls. Avoiding irate customers only flames their displeasure. Your website should have an easy way to contact your company and these messages must be monitored and acknowledged on a daily basis.

After establishing an easy means to communicate with your company, begin to monitor social media sites. Establish Google Alerts with keywords to notify you when a message is posted. Look at your Facebook page at least once per day.

Monitor Twitter and read reviews on Yelp. Read through forums and communities where end users may gather. By addressing negative comments, you may be able to curtail any growth of negative feelings.

When you find a negative comment, determine if a response is appropriate or if ignoring the comment may be best. Be objective. If the statement would appear outrageous to anyone reading it, then your response may only lend credibility to the complaint. On the other hand, a credible posting must be addressed immediately. The easiest first response is to acknowledge the

issue, advise it is being investigated and provide a time frame for response. Be yourself when responding. Boilerplate responses and excuses will not let the matter rest.

Direct the discussion from the company to yourself. It is easy to rant about a company, but much more difficult to attack a person.

If a mistake was made, apologize and offer a solution. Readers will note you corrected the situation and made it right.

Try not to let anger escalate.

State your position as humanly as possible. If the end user rejects your position, let him (or her) know you are sorry he feels that way and reoffer your solution. Remember, you are not attempting to win an argument, but are trying to find a solution for a dissatisfied customer. Keep the communication public so everyone can note your reasonableness and desire to rectify the situation. By moving the conversation to the telephone or private email, the public is no longer privy to the efforts being made to satisfy the complainer.

Sometimes it may be helpful to enlist satisfied customers in the discussion. If someone is degrading a specific machine, technician or salesperson, having a satisfied customer comment on the same discussion may add perspective to the complaint. Of course, there may be some risk in notifying satisfied customers of a negative experience. However, they may find the discussion on their own and contact you. Never ask employees to post as if they are customers. If discovered, your reputation will be severally tarnished.

Finally, the old saying of making the complainer part of the solution, rather than the problem, is a good approach. Often, the complainer will be looking for less than you anticipated. If his demands are outrageous, that will be posted for all to see.

Social media provides a stream of viral gossip. It is time to start following social media, using it to your advantage and learning how to respond properly. n Robert C. Goldberg is general counsel for the Business Technology Association.

He can be reached at robert.goldberg@sfnr.com.

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Goldberg Apr 12.indd 1

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

Dealer Members Complete Business Systems, Longview, TX Document Systems, Oxnard, CA iTECH, San Diego, CA Valley Office Systems, Idaho Falls, ID Wilson Office Supply, Paducah, KY Service Associate Member Balboa Capital Corp., Irvine, CA Vendor Associate Member S.P. Richards Co., Smyrna, GA For full contact information of these new members, visit www.bta.org.

Verizon Wireless Discount Program BTA members can receive the following discounts when they sign up for the Verizon Wireless Discount Program: • 8 to 22 Percent Corporate Account Discount — You must have a corporate account with five or more lines paid for under the same business tax ID number to qualify.

• 25 Percent Corporate Accessory Discount • 8 to 22 Percent Data Feature Discount • Consumer or business pricing on equipment — you receive the best pricing of the two • Corporate activation fees waived for new two-year agreements The percentage discount received depends upon the number of participating employees. www.bta.org/Verizon For information on BTA member benefits, visit www.bta.org/MemberBenefits.

For the benefit of its dealer members, each month BTA features two of its Vendor or Service Associate members in this space.

BTA Vendor Associate member Compass Sales Solutions is a premier sales force automation and print management software developer. Compass clients are dealerships looking to increase their bottom lines. Whether it’s contact management, cost analysis tools, proposal generation, order process management, managed print services or fleet management consulting, Compass Sales Solutions provides everything needed to sell copier/ MFPs, services, MPS and solution applications as individual deals or bundled into a fleet solution in one easy-to-use, integrated application. www.compasscontact.net BTA Service Associate member Balboa Capital was established in 1988 and is one of the largest independent financing companies in the United States. Balboa offers a dedicated office products support team and a full range of lease and finance programs to meet your customers’ needs. Balboa’s innovative Webbased system provides you with real-time access to your applications, reporting and customer information. www.balboacapital.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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PRINCIPAL ISSUES

A Briefing: Lexmark Manufacturer hosts media day Feb. 28 by: Brent Hoskins, Office Technology Magazine

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xecutives at Lexmark International Inc. met with six office technology industry analysts and editors on Feb. 28 at the company’s Lexington, Ky., headquarters. The meeting focused on the changing market, an advancing product line and Lexmark’s commitment to the dealer channel.

Among the various presenters were Paul Rooke Paul Rooke, chairman and CEO, and Phil Boatman, manager of North America channel business development. Rooke opened the meeting. “Let me start with 2011,” he said. “It was a challenging year.

We had economies that were rather stagnant by most indicators, particularly in North America and in Europe.”

However, Rooke reported, Lexmark ex- Phil Boatman perienced an overall decline in business for the year of less than 1 percent, despite the economic challenges. Much of the decline was attributable, he said, to the company’s legacy business — the supplies business associated with Lexmark’s now discontinued consumer inkjet printer line. In contrast, he added, the company’s core business — laser and business inkjet devices, managed print services and software solutions — grew 7 percent in 2011. “To be growing our core business at 7 percent in a market that is declining was very encouraging for us,” he said. “This is an indicator for us that our [value] propositions are working with our customers.”

Looking at 2012 and beyond, “it is about growing our core hardware business, particularly our laser business,” Rooke said. “We also have a growing business inkjet business, our new OfficeEdge line. It’s a high-performance inkjet in an enterprise wrapper, if you will — a robust, networked, MPS-capable inkjet. It is nothing like our past inkjets. This is a new breed of inkjets that we plan to grow.”

Rooke said the OfficeEdge line, now available through Lexmark’s retail “volume” channel, may ultimately be available for resale through the company’s dealer “value” channel.

“There is nothing that keeps us from providing that class of product to the value channel,” he said, emphasizing the recent strides in inkjet, a technology that “I think will continue to get even better.”

As noted, the meeting presented an opportunity for Lexmark officials to emphasize the company’s commitment to

the dealer channel. Today, said Boatman, Lexmark has approximately 250 dealer partners in North America and nearly 750 globally. These include Toshiba dealers selling Lexmark products, resulting from the partnership the company has with Toshiba America Business Solutions Inc. As a testament to the “success and power” of the dealer channel, Boatman noted that while Lexmark has hundreds of sales representatives, increasingly, there has been cooperation between the direct and dealer channels. “Because of the growth of the dealer program, there is a concerted effort to drive synergy between the two groups and to leverage the dealer network to drive as much business as possible,” he said.

“This is an obvious recognition of the value that independent dealers bring to the table — their ability to service accounts top to bottom, their local relationships, their flexibility and just their overall care for the customer.”

Since the establishment of Lexmark’s dealer channel in 2007, the company has continuously made strides to further strengthen its relationship with its dealers, Boatman said.

“Every year,” he said, “we look very closely at our program, looking at how we can improve it.”

Boatman cited a recent improvement that he said is being well received by dealers. “A change we made for 2012 was to add in some growth incentives for dealers,” he said. “We sort of had a one-size-fits-all within different levels of commitment over the last several years. In 2012, we have decided to provide additional incentives for our dealers who want to grow beyond what they did last year. It is not a novel concept, but something that we made a conscious decision not to do up until this year. We sought some maturity in our program before moving to this sort of growth-oriented component.”

Lexmark continues to actively recruit new dealers, Boatman said, offering a profile of the type of dealers the company seeks. “We want committed, proactive dealers who understand that it is not just about the box,” he explained. “While we want to place as many products as possible, we are very interested in the dealer who understands the importance of having a balanced A4 versus A3 attack, who understands that managed print services is here to stay, who understands the power of solutions and who is changing the conversation with customers, moving that conversation to a different level.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine. He can be reached at brent@bta.org.

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Lexmark Apr 12.indd 1

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PRINCIPAL ISSUES

Sales Compensation Plans Focus on rewarding a job well done by: Luis Gonzalez, SalesScoreKeeper LLC

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hen creating a new compensation (comp) plan for your sales department, it is important to first review exactly what you would like the comp plan to do for your company and your sales professionals. Following are some ideas you may want to consider when creating a new comp plan or restructuring the one you have. n Career Path — You want to build a comp plan that allows a sales professional to grow within the organization. This is very important when hiring sales professionals who are new to the industry or are new to sales. The ability of the sales professional to progress in salary, commissions and benefits — along with larger budgets — is part of a strong compensation plan. n Incent Transaction Structure — When building your comp plan, you want to set benchmarks as to what a good transaction looks like in your organization. Whether you are looking for managed print services (MPS), managed network services (MNS) or just to bundle cost-per-copy (CPC) leases, make sure your comp plan drives the transactions you want. Par should be set where you want your transaction to be and the optimum commission should be set for closing those types of deals. n Flexibility — Always allow room in your comp plan to be flexible in what and how you pay your sales professionals.

Allow room within your financial benchmarks to run promotional programs during the year, each quarter or each month to drive the results you are targeting during that time period.

Whether it is an increase in service, revenue or special services, you can achieve higher sales by offering an additional incentive above and beyond the standard comp plan. n No Mysteries — Nothing slows down sales professionals like not knowing what they are getting paid. A good comp plan should have provisions for unplanned transactions below your standard sales costs, ship-ins, ship-outs or any of the crazy things you may do to get a deal. Make sure that the sales professional is always aware of what he (or she) is getting paid up front. If nothing else, this will avoid disputes and unhappy sales professionals at the end of the deal. n Pay Both — A good comp plan should pay on both top-

line revenue and bottom-line gross profit, while being flexible enough to pay on either the top or bottom line as the circumstances dictate.

Paying on only one or the other will influence the way your team approaches targeting new business, maintaining current clients and will have a major influence on your gross profits. You want to allow the occasional deviation from your “standard” deal to secure new clients without discouraging your sales professionals by not paying adequately for those deals. n Service First — Always pay service first.

Build your comp plan so that it pays your sales professional after all services have been made whole. The equipment sales revenue and gross profit calculations should always come after all service revenues have been satisfied. Make sure that it is clearly spelled out in the comp plan, as you will find that sales reps are able to maintain margins on hardware and solution sales when they know they must first pay service. n Manage ROI — When structuring comp plans for your sales managers, make sure that all their time is contributing to your sales efforts. Many times, sales managers can make their monthly budgets with only part of their sales team contributing. While everyone feels good about hitting budget, the company is either spending money on or missing opportunities due to underperforming sales professionals; this is not the best situation for your sales department. Build in metrics that ensure the manager is developing all his reps and is driving sales contributions from all team members. n Sales Contests — When building your comp plan, you should also include planned sales contests that may not pay the rep in commission dollars, but will affect your sales expenses. Sales contests in your comp plan achieve excitement, retention and long-term sales planning. Make sure that the goals — whether they are revenue targets or a percentage of budgets — are obtainable to keep your sales professionals engaged during the entire contest period. You should have both smaller, short-term contests and more extravagant, longterm contests. In every case, make sure you take full advantage of these contests to drive sales and make sure they are accounted for as part of the sales comp plan.

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Gonzalez Apr 12.indd 1

3/30/12 4:16 PM

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Wednesday, April 18 at 10:00 AM – 10:50 AM Speaker: Barney Kister

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comp plan is paying accordingly.  Manufacturer Spiffs — Today, alThe most important thing when workTake the time to most all manufacturers are reaching over ing on your company’s sales comp plan is and paying your sales reps some kind of understand how you taking the necessary time to plan. Make spiffs on unit types. It is important that want your sales sure you involve all the people in your oryou capture this information and make professionals to structure ganization who will be affected by your sure that your team members are aware their deals so you can sales professionals’ actions. This may inthat this is part of their compensation. Beclude deal processors, lease administraproperly communicate cause these programs are often administors, service managers, etc.

Take the time tered with some type of credit card, too ofwhat “good” looks like ... to understand how you want your sales ten they are not viewed as compensation. professionals to structure their deals so When reviewing compensation with your you can properly communicate what “good” looks like and sales professionals, make sure you include these programs in then compensate accordingly for a job well done.  their overall compensation. These numbers can be substanLuis Gonzalez founded Miami Office Supplies (MOS) in south tial and are often overlooked when comparing income against Florida in 1986. MOS specialized in the office equipment space for other industries or sales employment opportunities.

25 years as an independent dealership. It was acquired by Sharp  Overcompensate Overachievers — Always make sure Electronics in 2007. From 2007 to 2011, Gonzalez was branch sales professionals who overachieve their budgets and transacpresident and director of sales and marketing for Sharp Business tion structure targets are overcompensated. The minimal difSystems.

He was most recently senior vice president for Sharp’s ference that you may pay for overachievement is an excellent Business Solutions Group.

In 2011, he founded investment compared to paying underachievers. The payback SalesScoreKeeper, a software design and will come not only from the overachievers, but from the reps development company specializing in automation striving to reach those advanced sales levels. This manner of overcompensation for overachievement is a smart investment of the commission process for business-to-business sales companies. Gonzalez can be reached at and a strong motivator for all. When building your comp plan, (888) 786-7270 or luis@salesscorekeeper.com. you should establish a low, high and average compensation tarVisit www.salesscorekeeper.com. get percentage against sales revenue; always make sure your

30 | w w w. o f f i c e t e c h n o l ogymag.com | April 2012

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The Pros Elite Group Introduces the Industry’s First Execution Based Executive Training

IDEA

May 7th-11th, 2012 Tampa, FL

(Independent Dealer Executive Academy) Training

“Eligible for Ricoh America’s Co-Op Program (chaMPS portal)”

The Pros Elite Group has partnered with Strategic Business Associates (John Hanson, John Hey, and Todd Johnson) to deliver the Office Product’s Industry’s first training program designed for Dealer Principals, Company President’s and General Managers. The Independent Dealer Executive Academy (IDEA) has been designed by former executives of Global Imaging Systems, IKON, Xerox and large Independent Dealers to teach executives how to insure that all functions of their business, Sales, Service, Finance and Administration, execute to the 100+ benchmarks in the Industry Model. IDEA also prepares dealer executives how to execute to new paradigms such as Managed Network Services and the 4th phase of MPS. These are the same skills that are applied every day in the Elite Office Products organizations.

Key areas covered

To Register go to www.ProsEliteGroup.com and click on the IDEA registration link at the top of our home page.

in this 4.5 day extensive and all encompassing training program: • Accounting & Finance – areas of focus relative to the MFP/MPS financial benchmarking model, Balance Sheet / Income Statements, Cash Flows and Key Financial Ratios.

• President’s Report – Financial Components - what should you look at, how often should you review, and what level of drill down should occur based on the results of the data.

• Service Operations - Primary Drivers of Operational and Financial Performance in Service, How to Quantify Your Inefficiencies in Service, Primary Service MUST DO’s that require successful Execution, 5 Things Your Service Manager Should be Expected To Provide You Each Week, and Tactics to achieve MFP/MPS service benchmarks.

• Admin Operations – Inventory Management / Best Practices, Achieving Receivables portfolio Management benchmarks, Warehousing

Pros Elite Apr 12.indd 1

Best Practices, Effective Payroll practices and controls, Internal I.T. considerations and safeguards.

• Sales Operations – Utilize the Pros Sales Playbook for documenting the Expectations of a Sales Professional, Developing quantifiable Sales Assignments, Creating a Sales Culture throughout the organization, Achieving Sales Activity Benchmarks, Effective Prospecting tools, Qualifying and Rapport building practices and questions for MPS, Sales Activity Tracking / Data Base Management, Productive Compensation Structure, and Leasing considerations for the future.

• MPS phase 2&3 Managed Network Services – Selling Managed Networks Services as part of an MPS strategy, Organizing your dealership for Managed Network Services, Managed Network Services Benchmarks, and Effective Network operations center Management.

• Acquisition Considerations – Explore the strategies behind successful acquisitions, Learn the detail of the steps involved in a thorough acquisition process, Acquisition best practices, Protecting yourself, and Integrating the acquisition.

• Strategic Planning / Leadership – Appropriate Utilization of the three leadership styles in the day to day operations of a dealership, Identifying and developing future leaders, Setting and achieving appropriate personal and business goals, Developing a situation analysis and identifying quality starting points for planning, Creating SMART Action Plans, and Critical Performance measurements that drive performance.

For more info contact • Jerry Newberry jerry.newberry@ProsEliteGroup.com or call Jerry at 813-713-3592 • Ryan Smythe ryan.smythe@ProsEliteGroup.com or call Ryan at 773-275-1200

3/20/12 8:33 AM

PRINCIPAL ISSUES

FutureVision 2012 Growth Achievement Partners hosts dealer event by: Brent Hoskins, Office Technology Magazine

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triving to address the best opportunity is via managed servicstrategies successful dealeres (a cloud-delivered service), with ships should implement today managed print services (MPS) havand in the future, Growth Achieveing paved the way. “The best thing ment Partners (GAP), a strategic that MPS has done for our industry sales and operational consulting is it has caused us to begin engaging firm led by Mitch Morgan and Chris with our customers on a quarterly Ryne, hosted its invitation-only Fubasis,” Morgan explained. “Now, we tureVision 2012 event on March 1 can get to a place where we are havin Kansas City, Mo. Thirty-five owning frank discussions [about technolers and managers, representing 22 Attendees participate in a round-table discussion, one ogy] in that quarterly review process dealerships, attended the leader- of eight sessions held during FutureVision 2012. with our customers, providing them ship conference. a whole new level of support and us a The FutureVision 2012 schedule included eight interac- whole new set of opportunities.” tive education sessions. In addition to Morgan and Ryne, the Noting that managed services is not simply an operational speaker lineup included: Mike Stramaglio, MWAi; Bret Cos- task, but “needs to be incorporated into a bigger picture telow, Intel Corp.; Steve Rolla, PROs Elite Group; and Todd around a technology road map,” Morgan said dealerships will Johnson, Strategic Business Associates. Each speaker present- need to have a virtual CIO (vCIO) on staff. A position that Mored his perspective on the steps dealers need to take to prosper gan described as “the most important person in this whole in the changing market. In addition, the conference featured a equation,” the vCIO can ensure the dealership is positioned to round-table discussion on the topic of managed services with serve a growing, unmet need. “Fortune 100 companies have panelists Alan Bean, Southeastern Business Machines, Hunts- hired Accenture to prepare their technology road maps,” he ville, Ala.; Milton Bartley, ImageQuest, Nashville, Tenn.; and explained. “Small businesses don’t have that option and they Chris Black and Ron Vaughn, R.K. Black, Oklahoma City, Okla. don’t know where to go.”

Managed services remained at the heart of the discussion Small and mid-sized business managers are seeking a throughout the day. GAP defines managed services as: “Op- source they can trust and they prefer local companies that erational support of network systems and technologies using are already in place as respected service providers “to come remote capabilities delivered in the appropriate way.” GAP in and help them with their road map that will take them into lists the methods of providing support as: remote monitor- the future,” Morgan said. “This is not an IT sell. This is a Cing; system management; remote remediation; end-user help level call. We have a lot of technology-savvy C-level people in desk; and on-site service (as required). our customer base today, and they see this [cloud] technology One of the three sessions presented by Morgan and Ryne and want to build a plan around it.” was “Managed Network Services: Getting Closer to the Core.”

During the event, Morgan and Ryne announced the launch In that session, Morgan emphasized the necessity for deal- of Virtual IT Solutions, a technology-as-a-service aggregator ers to focus on helping customers develop and implement a program dedicated to the unique requirements of the office technology road map — using managed services as a starting technology dealer channel. The initiative, which provides parpoint — not only for on-premise hardware and software, but, ticipants preferred programs, pricing and terms from hardware increasingly, for cloud-based computing as well. and cloud computing providers, offers guidance to participants As he began the session, Morgan looked back at the indus- through use of such sales tools as the Cloud Maturity Model and try’s transitions, recalling, for example, the 1980s as the decade the Technology Road Map. The target is to have 25 non-competof the PC and the 1990s as the decade of the local area network. ing dealer participants in 35 markets by February 2013. n Today, he said, dealers are in the decade of the cloud. “The cloud Brent Hoskins, executive director of the Business is it,” he said. “There is no debate. It is the prevailing technology.”

Technology Association, is editor of Office Technology The dealer’s ideal point of entry into the burgeoning cloud magazine. He can be reached at brent@bta.org.

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PRINCIPAL ISSUES

Leadership Styles Pulling employees to higher performance levels by: David M. Fellman, David Fellman & Associates

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he dictionary on my desk defines leadership as: (1) the position or function of a leader; (2) the ability to lead; or (3) an act or instance of leading. I would like to offer you a more practical definition of leadership in the business world: Real leadership in business is the act of pulling your employees forward to a desired level of performance.

The most important word in that definition is “pulling.”

There is an old saying: “You cannot push a rope.” I think the key to understanding real leadership lies in understanding that your employees — individually and collectively — are very much like that rope. Each one has a different personality and different attitude; each one has different job responsibilities; and each one may have a different view of what is important and what is not important in the operation of your business.

They are bound together to some degree by a common workplace, but that does not make it any easier to “push” them along.

Now, imagine a piece of rope and envision pulling on it. Do you see how pulling it makes it a lot easier to get it to go where you want it to go?

Management Versus Leadership There is another old saying: “Anyone can be a manager, but it takes something special to be a leader.” If there is truth in that statement (and I bet you agree that there is), what is the difference between management and leadership?

I think it is simply that “manager” is a title, while “leader” is an attitude. But the two categories are definitely interrelated.

The most effective managers are also leaders. And the leaders who ultimately enjoy the greatest success have strong management skills to support their leadership qualities.

A lot has been written about various management and leadership styles. My feeling is that “leadership” simply represents the best possible management style. But how about leadership styles?

Let’s start with the understanding that leaders are made, not born. You do not have to come from some specific gene pool to be an effective leader. You do not need any special training, either. There are a number of ways to adopt a leadership attitude and add “leadership” to your management skills.

The Quiet Leader The most comfortable leadership style for many people is that of the “quiet leader.” At the other end of the spectrum is the “cheerleader.” We will talk about that style in a moment.

The quiet leader is the one who leads purely by example. He (or she) may not have the confidence to take on a “rah-rah” leadership personality.

The most important consideration for a quiet leader is consistency in the example he provides. A quiet leader in business is always pleasant to customers, fair with employees and suppliers, and respectful of the customer’s concerns. A quiet leader always takes care of the little details. He never says anything derogatory about a customer — or a supplier or an employee — in the presence of an employee. The leadership message projected is: “I want you to watch the way I work and deal with customers, suppliers and other employees, and I want you to measure up to my standards.”

The quiet leadership style works best with a well-documented management structure: written job descriptions, an emphasis on training, and defined standards of behavior and performance. The strategy of placing the “rules of the game” in writing and then constantly reinforcing those rules by the owner’s example, has proven to be a very effective combination of management and leadership.

The Visionary Leader Another common leadership style among entrepreneurial

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businesspeople is that of the “visionary The Cheerleader leader.” This type of leader is always foWhether a leader does The most common stereotype of a cused on what he wants the company to leader might be the person who leads it quietly, or with a ... be. That may involve sales growth, producthrough raw enthusiasm. Th is type of cheerleader style, the tivity improvement and profit growth, or leader makes work fun, and his energy essence of leadership even a major transitional change like the and enjoyment of the work is often strong is leading by vision and ones so many companies are faced with enough to carry employees along for the as significant changes occur within their example. If you do that ride. The “cheerleader” is focused on moindustries and markets. A visionary leader rale, working on the assumption that well, others ... will follow ... rewards performance that supports his vihappy employees will do good work, leadsion — and sits down for a serious convering to happy customers, and satisfactory sation with any employee whose performance does not. The sales and profit levels. While things are going well, the “cheerleadership message projected is: “I know where we are going leader” might reward the entire staff, or may overlook indiand I want you to go there with me, but you have to help.” vidual employee failings or problems. The leadership message A visionary leader gains support from employees by explain- projected is: “We are all in this together. Let’s all have fun and ing the “why” behind his instructions. It is never: “Do this!” or get the job done.”

“Do not do that!” It is: “Do this (or do not do that) because … ” The cheerleader style works best with a group of employees The visionary leadership style works best when the vision is who are eager and enthusiastic. Rules and procedures can be clearly understood by both the leader and his employees. Rules fairly informal because the cheerleader is never far from the and procedures can be less formal because the vision provides action and is always available to answer a “how-should-wethe overall framework for making on-the-spot decisions. do-this?” question.

The Bottom Line There are certainly other leadership style variations, but the style you use — or choose — is not as important as simply accepting the leadership role for your company. For some business owners and managers, that comes easily. For others, it is a struggle.

Unfortunately, too many business owners and managers seem to substitute one of the extreme management styles for true leadership. They operate either with suffocating, rigid rules and regulations, or with a complete absence of management control. In either case, it might be said that these people are attempting to lead from behind.

It does not — and cannot — work that way. The leader’s place is at the front, where he can be seen in action. Whether a leader does it quietly, or with a “rah-rah” cheerleader style, the essence of leadership is leading by vision and example. If you do that well, others — your employees — will follow you. You will pull them along to the highest possible level of performance and your business will benefit from the results.  David M. Fellman is the president of David Fellman & Associates, a sales and marketing consulting firm based in Cary, N.C. He is the author of “Listen To The Dinosaur,” which Selling Power magazine listed as one of its “10 Best Books to Read in 2010.”

Fellman can be reached at (800) 325-9634 or by email at dmf@davefellman.com.

Visit www.davefellman.com and www.dinosaurwisdom.com.

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Selling Solutions

Selling With Style Remember, all customers are not alike by: Larry Breed, Precision Hiring & Development

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uccessful salespeople understand the value of uncovering customer needs and qualifying sales opportunities. Top sales performers also understand the value of understanding human behavior and adapting their selling styles to match their prospects’ buying styles.

Behavioral science has proven that people buy for different reasons. A salesperson who understands basic behavioral (buying) styles and learns to use this knowledge in his (or her) sales calls will close more sales.

Some buyers like to get right to the point and some want to visit before doing business. Some like new, innovative products and other prefer proven, reliable products. Some want time to think about your proposition while others make quick decisions.

Some like to negotiate and others do not. If you do not know how to tell the difference and assume all prospects buy for the same reasons, then you could be losing sales without realizing it.

For decades, sales training has focused on generalized principles that supposedly apply to all customers. If the salesperson says the right words, at the right time, people will buy.

With today’s sophisticated buyers, and especially technical buyers, just knowing your product and the prospects’ needs are no longer enough. You not only need to know what they need, but how they like to buy.

One unscientific way to assess a prospect’s buying style is to observe his behavior. Is he talkative or quiet? Is he peopleoriented or task-oriented? It also helps to ask these questions about yourself, so you understand your selling style and can adapt to the different buying styles.

Here are a few general traits of four different buying styles: Talkative, Task-Oriented Talkative, task-oriented people are interested in results; need to be in control; tend to buy new, leading-edge products; do not like to waste time (just hit the high points and get to the “bottom line”); and do not want too much data. Ask questions so they can tell you about their operations; stress prestige, challenge and efficiency; and emphasize results and the bottom line.

Talkative, People-Oriented The second buying style is that of talkative, people-oriented

individuals. They are interested in relationships; need to be liked; tend to buy showy products; are friendly people who would rather talk and socialize than do detailed work; are very quick buyers (usually on the first visit); are easily stolen by your competition (so give plenty of follow-up); and do not dwell on details.

Quiet, People-Oriented The third buying style is the quiet, people-oriented style.

These people are interested in stability and the status quo; need security; tend to buy traditional products; may be somewhat shy individuals (but want to be your friend); like to talk about family and hobbies; and are very slow to make changes.

They need to trust their salesperson and like to take it slow and easy. If you go too fast, you will lose the sale. You need to provide these people plenty of proof and statistics, and earn their trust and friendship.

Quiet, Task-Oriented The fourth style is the quiet, task-oriented style. These people are interested in quality; tend to buy proven products; may be suspicious of you and your products; do not like to change to new suppliers; are reluctant to try new, innovative technology; and do not waste time with small talk (get to the point with facts and figures and answer all of their questions). Stress security if they buy now or the loss of security if they wait.

Just remember that all customers are not alike. Each customer buys in his own way, for his reasons — not yours. Each requires a different approach and responds in a different way.

If you learn to interpret the different buying styles and their common tendencies, this will enable you to establish instant rapport and build better relationships that cause people to feel more at ease with you. n Larry Breed is owner of Precision Hiring & Development, the company he founded in 1991 after working for Lanier Worldwide for 26 years in sales, management and training.

He can be reached at (800) 875-7599 or lbreed@precisionhiring.com.

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