June 2016 Office Technology

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CONTENTS Volume 22 • No. 12

FEATURE ARTICLES 10

Ninety Years Strong In celebration of BTA’s rich history

P R I N C I PA L I S S U E S Value & Vision DocuWare hosts annual conference May 3-6

38

by Elizabeth Marvel Office Technology Magazine

by Brent Hoskins Office Technology Magazine

It began with a vision to provide independent office technology dealers a means to help one another.

26

‘You-Proofing’ Your Business A dealership should not be built around one person

Digital transformation is changing the way companies do business.

Focus Forward Lexmark hosts All-Dealer Conference May 9-11

40

by Brent Hoskins Office Technology Magazine

by Jim Kahrs Prosperity Plus Management Consulting

One problem some dealership owners face is the fact that they have remained the center of their businesses as they have grown.

Lexmark hosted its All-Dealer Conference May 9-11 in Fort Lauderdale, Florida.

For a Future Together Toshiba hosts dealer & end-user conferences

42

by Brent Hoskins Office Technology Magazine

REFLECTIONS ON 90 YEARS 30

Looking Back ‘I was a supporter then ... and I am a supporter now’

by Lou Slawetsky Industry Analysts Inc.

TABS hosted dealers and end users May 16-19 in Las Vegas, Nevada.

Driving Technology Forward KYOCERA hosts annual conference May 16-18

44

Consulting since 1972 and incorporating in 1973 qualifies me for a unique perspective on the Business Technology Association (BTA).

COURTS & CAPITOLS 33

90 Years of Channel Building ‘Doing for the dealer what he cannot do for himself’

by Elizabeth Marvel Office Technology Magazine

KDA held its FY17 conference May 16-18 in ChampionsGate, Florida.

SELLING SOLUTIONS Rethinking Points Directing your salespeople to where they need to be

45

by Robert C. Goldberg BTA General Counsel

As the Business Technology Association (BTA) approaches its celebration of 90 years serving the industry, it is an excellent time to reflect.

SERVICE CONNECTIONS 34

The Looming Crisis Two industry issues that require immediate attention

by Ken Edmonds Service Management Coach

Our industry is facing an unprecedented crisis in the reasonably near future.

by Troy Harrison Troy Harrison & Associates

Maybe it is time to think about a point system for sales activity.

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

31

• Education Calendar • BTA Highlights

6

Executive Director’s Page

8

BTA President’s Message

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Advertiser Index

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EXECUTIVE DIRECTOR’S PAGE

‘It’s Your Baby’; It’s Been My Privilege

“I

t has been the ambition of the National T. & O.M.D. Assn. officers to erect a suitable clearing house for the exchange of ideas pertinent to our industry.

With this new magazine that ambition has been realized. Its sole purpose is to inform, to instruct, perhaps to entertain.

“Edited by a professional news writer with no financial interest in selling or manufacturing typewriters and office machines, DEALERS TOPICS will present the news impartially, concisely, interestingly.

“Because product improvement is important to all of us, DEALERS TOPICS will print all news pertaining to new models and new manufacturing plans. Because Merchandizing Technique is vital, DEALERS TOPICS will offer tried and tested promotion ideas that will help win friends and influence prospects to buy. And because names and events are universally interesting, DEALERS TOPICS will endeavor to print the human side of our Association.

“By encouraging cooperation and fostering goodwill, DEALERS TOPICS aims to do its part in improving each individual business for all of you.

“With that build-up, we present for your approval Volume 1, Number 1 of DEALERS TOPICS, dedicated to the proposition that you members of the association deserve the best we can give you. And we do mean You!!!”

There you have it, under the headline “It’s Your Baby,” the message from the national president of what is today BTA. It appeared in the first issue of the first publication ever produced by the association, then known as the National Typewriter & Office Machine Dealers Association. The president was Lamont H. Wood. The issue date was November 1938.

I recently found a copy of this first issue in BTA’s archives. It reflects an industry of a very different era, with news about typewriters, adding machines and duplicators.

I do see a few company names I’ve seen before, such as Shipman-Ward Manufacturing Co., Remington Rand Inc. and Speed-OPrint Corp. If you are interested in reading through the association’s first publication, visit www.bta.org/DealersTopics.

While I have been the steward of the association’s magazine, now Office Technology, for a number of years, it is humbling to think that I have played a role in maintaining that “suitable clearing house,” as Wood stated back in 1938. I am not certain we still fulfill his hope to “entertain,” but we continue to strive to “inform” and “instruct” readers through our editorial content. Of course, we still write all content with the independent dealer in mind. That will never change.

On the occasion of BTA’s 90th anniversary, and with more than 350 issues of the association’s magazine under my belt, it seems fitting that I extend my congratulations to BTA with this brief look back at the heritage of my first and continuing role in support of the dealer channel. Serving as executive director has been my greatest honor. Serving as editor of the magazine is how it began for me.

In my nearly 30 years with the association, I have met countless wonderful people. I cherish the many friendships I have made. I also cherish being a part of such a vibrant, ever-changing industry. The “icing on the cake” has been the privilege to work with the many dealer member volunteers at the district and national levels. Without a doubt, collectively, they are the driving force that has brought BTA to its 90th year.

Happy anniversary, BTA. Thank you for allowing me to be a part of the journey as your executive director and magazine editor. n — 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 Ken Edmonds, Service Management Coach ken.edmonds@CKE-Enterprises.biz Robert C. Goldberg, General Counsel Business Technology Association Troy Harrison, Troy Harrison & Associates www.troyharrison.com Jim Kahrs, Prosperity Plus Management Consulting www.prosperityplus.com Lou Slawetsky, Industry Analysts Inc. www.industryanalysts.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: Bigstockphoto. Cover created by Bruce Quade, Brand X Studio. ©2016 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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BTA PRESIDENT’S MESSAGE 2015-2016 Board of Directors

I Was Advised: ‘Get Involved With BTA’

O

n June 30, my year as national president of the Business Technology Association (BTA) will come to a close. As I consider this, I can’t help but reflect back, not only on this past year, but on my entire experience with the association.

When I first learned I was to become president of our dealership, Advanced Systems in Waterloo, Iowa, I asked our CEO at the time how I could get more involved and knowledgeable about the industry. I had been with our dealership for more than 20 years, but felt that, although I had attended some industry conferences and meetings over the years, I didn’t really know a lot of other dealers across the country or have a good network of peers in the industry. Without hesitating, he advised: “Get involved with BTA.” I started by joining the volunteer leadership team of BTA Mid-America. After a year as president of the district, I was asked to join the national BTA Board of Directors, which led me to my current role as president.

The entire experience has been tremendously rewarding for me. I have had the opportunity to attend the events in each of BTA’s four districts, most of them multiple times. These events offer a great combination of relevant educational sessions, opportunities to talk one-on-one with a variety of vendors and, of course, networking time with attendees from other dealerships.

I have also attended numerous classroom and webinar-based educational workshops.

Most importantly, I have established great relationships with many people from dealerships across the country.

The time I have had to work with the volunteer leadership group and BTA executive team provided me the opportunity to get

an inside look at the true mission and goals of this organization. I can see now that it exists to provide the platform to facilitate dealers helping dealers be more successful.

For 90 years this mission has remained unchanged. The business models for dealers may have changed dramatically over the years, but through all of this, collaboratively, dealers have helped other dealers stay relevant and profitable. This idea and the process of sharing has collectively helped all dealers (and, thus, our industry) stay vibrant, profitable and continue to grow.

As I look toward the future of BTA, I first look back at its past. I had the opportunity to visit the Thomas A. Russo Museum of Business History and Technology in Wilmington, Delaware, last fall. The tour of the museum, conducted by Tom Russo himself (who served as the 1985-86 president of what was then NOMDA), was fascinating. Tom identified and described, with great passion, items such as: the first practical typewriter, the first successfully manufactured four-function calculator, the first successfully manufactured time clock, the first word processor and the first copier, as well as numerous subsequent models of each of these. It became very clear to me after this visit that dealers have always been faced with changing technology. So even while we constantly hear the concerns of our industry (declining cost per page, a decline in total clicks, offices that are going paperless, etc.), the independent dealer channel will find a way to continue to succeed in the face of these challenges — and BTA will play a big part in facilitating this success, just as it has done for the past 90 years.

I am very proud to have played a small part in the long history of BTA. And, like any dealer who recognizes the full scope of the importance of the association to our industry, I look forward to its future. n — Dave Quint

President Dave Quint Advanced Systems Inc. 2945 Airport Blvd.

P.O. Box 57 Waterloo, IA 50704 dquint@asiowa.com President-Elect Rob Richardson Allied Document Solutions & Services Inc. 200 Church St. Swedesboro, NJ 08085 robr@ads-s.com Vice President Dan Castaneda International Copy Machine Center 1515 Lee Trevino, Ste. EE El Paso, TX 79936 dan@icmc-elp.com BTA East Greg Gondek ACT Group 20 Commerce Drive Cromwell, CT 06416 greg@advancedcopy.com BTA Mid-America Bob Evans DigiTec Office Solutions Inc. 12560 Reed Road, Ste. 200 Sugar Land, TX 77478 bobevans@digiteconline.com BTA Southeast John Eckstrom Carolina Business Equipment Inc. 5123 Bush River Road Columbia, SC 29212 johne@cbesc.com BTA West Cathy Dimon Northern Business Systems 3526 International Fairbanks, AK 99701 cdimon@acsalaska.net Immediate Past President Ron Hulett U.S. Business Systems Inc. 3221 Southview Drive Elkhart, IN 46514 ron.hulett@usbus.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

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Ninety Years Strong In celebration of BTA’s rich history by: Brent Hoskins, Office Technology Magazine

I

t began with a vision to provide independent office technology dealers a means to help one another in order to continually strengthen the dealer channel. That vision has long endured.

Since it was established, the association has helped thousands of dealers reach new heights through educational programs, networking opportunities, legal services, advocacy, guidance and support. In 2016, a common message has been heard industry-wide: Congratulations, BTA, on being 90 years strong!

The vision became reality on Jan. 2223, 1926, when a group of independent typewriter dealers met in Kansas City, Missouri, to form the National Association of Typewriter Dealers (NATD). They had gathered with the conviction that there had to be unity among dealers across the country — unity in order to reap the rewards of sharing ideas, knowledge, successes and even failures. By the early 1930s, the association had grown in scope as the industry had evolved and it was decided that a name change was in order. NATD became the National Typewriter and Office Machine Dealers Association (NTOMDA). A decade later, in 1943, the name was changed once again to what it would be for the next 50 years — the National Office Machine Dealers Association (NOMDA).

It wasn’t until 1994, following a short time as NOMDA/ LANDA (after NOMDA assumed management of the Local Area Network Dealers Association), that the name was changed to the present Business Technology Association.

“We’re Now BTA!” read the headline in the May 15, 1994, issue of the association’s Hotline newsletter, announcing the new name. The name change had been overwhelming supported by a vote of dealer members.

Through the years, the association has been headquartered in several locations, such as Dayton, Ohio, Los Angeles, California, and Wood Dale, Illinois. In 1985, under the leadership

of NOMDA President Thomas Russo Sr., with the vision of a national educational center in the central United States, the association moved back to the home of its roots — Kansas City, Missouri. The association’s board of directors met in February of that year and approved the purchase of the Loretto Academy, which had been built in the 1960s as a private parochial school. Though today only a tenant and no longer the owner, BTA’s headquarters remain in the same building.

While some of the historical details of the association have been lost to time, archive copies of essentially all of the association’s monthly printed magazines have been saved. They provide a timeline of the industry as it has evolved over the years. An announcement in the September 1948 issue of NOMDA News, for example, reveals an earlier version of an imaging device for the workplace: “Photo Copy Duplicator — designed to produce letter- and legalsized exact facsimiles of anything written, typed, printed, drawn or photographed in a matter of minutes.” The claim was that the portable product, with a “self-contained darkroom,” could produce “more than 30 finished copies an hour at about 5 cents per copy.”

Many years later, an article in the September 1957 issue of the NOMDA Spokesman magazine pointed to the opportunities coming from changes ahead. The author wrote: “We can see, by the rapid changes that are taking place in electronics application and automization, that our business as machine dealers is due for a change. One change will come about because the modern apparatus will be so complicated that installation and service can only be handled by factory-trained specialists, with access to the modern tools and testing apparatus needed for this work.”

While the parlance was much different in 1957, the knowledge that change leads to opportunity continues to fuel the entrepreneurial spirit of the BTA dealer to this day. Through

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1920s-1940s: The Early Years of BTA

Clockwise from top left: The third convention of the newly formed National Association of Typewriter Dealers (NATD) was held on Aug. 20, 1928, at Hotel Hollenden in Cleveland, Ohio; in 1933, the NATD was renamed the National Typewriter & Office Machine Dealers Association (NTOMDA) and in November 1938, NTOMDA released its first official publication, DEALERS TOPICS, “designed to bring 5,000 dealers and manufacturers of two nations into one intimate community of interest�; the 17th annual NTOMDA convention was held July 21-22, 1942, in Pittsburgh, Pennsylvania; the 1944 NOMDA War Conference was held June 13-14, 1944, in Atlantic City, New Jersey; the 23rd annual NOMDA convention was held July 19-21, 1948, in New York City, New York; and the NOMDA national convention luncheon was held June 21, 1949, in Los Angeles, California. www.offi cetechnol ogym a g. c om | J u n e 2016 | 11

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1950s-1960s Left photos, top to bottom: George Chadwick (left) accepts the first Dealer of the Year award from NOMDA President Edgar Knoll in July 1962; Carolyn Re, guest editor of the August 1964 NOMDA Spokesman (in their hands), talks with Roy Kennedy at the 1965 convention in Chicago, Illinois. Below: The Springfield Office Machine Dealers Association of Springfield, Missouri, becomes officially affiliated with NOMDA in 1960.

Left: In October 1964, Hazen Ames (left) and Art Ames (center) of Ames Supply Co., Morton Grove, Illinois, hosted an open house celebrating the opening of NOMDA’s new international offices in Des Plaines, Illinois. Ralph Terry (right), NOMDA executive secretary, thanks them.

“What has BTA done for me? ... Made me smarter through its educational programs; provided me with stronger contracts ... through its legal support; and gave me venues for networking with the industry’s best and brightest.”

— Mark Naylor ABM Automation the many changes in the industry over the 90 years, BTA has always been there for dealers to help them fully benefit from the next new opportunity through information and guidance. The simple reason bears repeating: The association was created by dealers, for dealers. And, of course, it continues to be governed by dealers, just as it was in 1926.

How do today’s dealers view the association on the occasion of its 90th anniversary? How have they benefited from BTA membership? Why do they think the existence of BTA is important to the independent dealer channel? Office Technology magazine asked a number of BTA member dealers to share their thoughts. Following are their responses.

“Congratulations on BTA’s 90th anniversary. That is quite an accomplishment! I grew up in this industry in a family business, so I remember the annual NOMDA convention every summer back in the day. BTA has been a tremendous learning opportunity for me, not only with what it provides in industry-type training, but also through opportunities to meet and foster relationships with other members/dealers. This [has been] my bible for our industry for about 35 years. I’m in an organization called YPO with business owners of all types and I always feel blessed knowing we have BTA as a resource for ideas, answers and overall help. Most of the companies in YPO do not have this kind of an industry resource, which is why YPO is so valuable to them. Again, thank you for being there as my bible and resource to help me navigate through my career in this industry.”

Mark Watson, president CDS Office Technologies, Springfield, Illinois “Congrats on 90 years of serving dealer members. Any organization that lasts 90 years is doing something right. What has BTA done for me? You name it — made me smarter through its educational programs; provided me with stronger contracts and better manufacturer relations through its legal support; and gave me the venues for networking with the industry’s best and brightest. Many of the best business

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“Thank you, BTA, for 35 years of education and fellowship. It would have been difficult to compete in our changing industry without the association. May we all be blessed to see the 100-year anniversary!’”

— Jerry Jackson All South Copiers relationships I have made came as result of the fine men and women I met while volunteering for BTA.” Mark Naylor, president ABM Automation, Oklahoma City, Oklahoma “From all of us at the Gordon Flesch Company, congratulations to BTA as it celebrates its 90th anniversary; everyone there should be very proud of this accomplishment. We are so thankful for the guidance, insight, education, research and legal advice BTA has given us over the past 60 years. We are also appreciative of the support you have given to the entire industry. Thank you again and congratulations. Here’s to another 90 years!”

Tom Flesch, president & CEO Gordon Flesch Company Inc., Dublin, Ohio “Our BTA membership has helped our company stay on course and keep up with the changing role of a dealership.

BTA allows us to associate with other members, hearing what is working for them, as well as attending webinars that are informative and offer guidance in an industry that has evolved into something no copier dealer (or, now, MFP dealer) could have ever imagined. I hope the 90th anniversary of BTA is as much of a success as the BTA Southeast events I have had the pleasure of attending in person. Keep up the good work of helping us set our standards higher.

Congratulations!”

Jeff Eaves, president Appalachia Business Communications of Kingsport Johnson City, Tennessee “Thank you, BTA, for 35 years of education and fellowship.

It would have been difficult to compete in our changing industry without the association. May we all be blessed to see the 100-year anniversary!”

Jerry Jackson, president All South Copiers, Kennesaw, Georgia

1970s-1990s

Clockwise from above left: The association’s Golden Anniversary convention was held in 1975 in Minneapolis, Minnesota. This issue of the NOMDA Spokesman served as the show guide; product photos from the convention show guide; Robert C. Goldberg became BTA’s general counsel in 1977.

NOMDA hosted conventions in such cities as Las Vegas, Nevada, New Orleans, Louisiana, and Atlanta, Georgia, during the 1980s and 1990s.

Clockwise from above left: The Minolta booth at the 1988 NOMDA convention; the tradeshow floor entrance at the 1992 NOMDA convention; the Panasonic booth at the 1994 NOMDA/ LANDA convention; in May 1994, the BTA Board of Directors approved a name change for the association from NOMDA to the Business Technology Association (BTA). www.offi cetechnol ogymag. c om | J u n e 2016 | 13

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through the chairs, followed by “BTA has always been going though the chairs in SEthe independent dealer’s “BTA has always been ROMDA and, finally, the board strongest advocate. It has the independent dealer’s of regents in NOMDA. I worked helped bring unity to our strongest advocate. It has on the SEROMDA and NOMDA industry and promote the helped bring unity to our Convention Committees for common interests of all of industry and promote the many years. Besides the many us. Bay Copy has learned common interests of all of us NOMDA seminars and convenwhat good looks like ... the friendships developed tions I attended, I learned the through educational promost through the many discusgrams like ProFinance. The through SDG have been priceless.” sions I had with other NOMDA, sharing of best practices

— Ray Belanger SEROMDA and other regional and the friendships develBay Copy friends I worked with. And oped through SDG have still, to this day, I lean heavily been priceless.” on the counsel from the many dealers I communicate with Ray Belanger, president through the association. As the saying goes, ‘it is not what Bay Copy, Rockland, Massachusetts you know, but who you know.’ And through NOMDA/BTA, I “Your records could be more accurate, but in the late have been fortunate to be around a lot of smart dealers who 1970s or early 1980s I was invited to attend a Florida Office have helped me and my company grow.”

Dean Boring, president and CEO Machine Dealers Association (FOMDA) meeting. During the Boring Business Systems, Lakeland, Florida meeting, I was elected to the board of FOMDA and later went

2000s - Today: BTA in Recent Years

Clockwise from top left: In 2006, Office Technology editor Brent Hoskins became BTA’s executive director; in 2008, BTA resumed hosting district educational and networking events. The 2016 Spring Break event in New Orleans, Louisiana, featured a keynote address, a dealer panel and seven additional educational sessions; Arlen Gangwish (center left) and John Ross (center) of Laser Logic, Lawrence, Kansas, visit with Dave Carpenter (right) of Brother International during a break at the 2015 Cruise to Success event in Minneapolis, Minnesota; attendees network during a break between sessions at the 2013 Grand Slam event in Baltimore, Maryland; Don Crier of Samsung Electronics America Inc. leads his exhibitor round-table discussion at the 2014 Fall Colors Retreat in Asheville, North Carolina; 2015 Capture the Magic attendees participate in the keynote session in Las Vegas, Nevada.

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vendor presentations, educational seminars, industry “ ... I think the greatest trends and, most importantbenefit of being a BTA ly, the opportunity to meet member is the BTA events. and network with other dealThese events provide vendor ers. At every event I attend, I presentations, educational develop new business relaseminars, industry trends tionships that lead to shared and ... the opportunity to ideas on how to improve our business and how to navimeet and network with other dealers.” gate these changes. I would

— Bob Evans like to congratulate BTA on Function4 its 90th anniversary and I thank the association for its “There are many business benefits provided to the independent dealer by BTA. The free support and service to the independent dealer channel.”

Bob Evans, partner legal advice and guidance alone pays for the nominal memFunction4, Sugar Land, Texas bership fee. Our industry is going through several changes.

Technology is not only changing what we sell, but how we sell “BTA gives back 200 percent of what you put into it. If you and service it. Consolidation within the industry is changing how we compete. That is why I think the greatest benefit of avail yourself of the regional shows, training programs, supbeing a BTA member is the BTA events. These events provide port materials, legal help and, most importantly, the networking opportunities, you will increase the odds of improving your business. If you apply all you learn, you can legitimately increase your business by 200 percent. In an extremely competitive business — that at times can be mistaken for a commodity business — it is nice to belong to an independent organization that has your back. Congratulations BTA on being noun 90 years old and Godspeed in the journey to be 180!” /ˈrēˌbāt/ Mike Boyle, owner Base Technologies Inc., Bethel, Connecticut 1. a partial refund to someone who “What does BTA mean to us? For us it means ‘an organization that is not supplierrelated, that offers an independent view of the market and products, and that is not afraid to take on any issues.’”

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Congratulations to the BTA

90 Years of Dealers Helping Dealers!

“Congratulations BTA on 90 years of service to the industry! That is a significant milestone; the industry is lightyears from where it began. For independent dealers, having BTA as a resource is critical. It provides industry updates, educational information and works to connect dealers with each other. Beyond that, BTA serves as a strong advocate for our industry. As a company that just celebrated its 60th anniversary last year, we know a thing or two about longevity and being able to recognize and adapt to a changing marketplace. We are all grateful for the good work that you do for our industry and wish you many more years of success.”

Chip Miceli, president Des Plaines Office Equipment, Elk Grove Village, Illinois “I believe that without BTA as the independent dealer advocate, our relationships with manufacturers would be much different and more one-sided than they are today. BTA also provides us the opportunity to speak with dealers from all over who we probably would never have had the chance

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other dealers can be lifesavto meet without the meeting to the bottom line.” ings and events it hosts. This “Finally, numerous times Byron Harlan gives us a non-biased view we have utilized the legal general manager on products and services, as services for guidance on Wilson Office Solutions well as the companies and our contracts or other items, Paducah, Kentucky people who represent them. and it is great to know that Finally, numerous times we Bob [Goldberg] is out there “For 30 years we’ve been have utilized the legal serworking for us every day to a member of BTA and our vices for guidance on our membership has proven incontracts or other items, and protect the dealer community.” valuable. When you are an it is great to know that Bob

— Ron Hulett independent dealer, many [Goldberg] is out there workU.S. Business Systems Inc. times the only way you can ing for us every day to promeasure your company or tect the dealer community.” find best practices is by attending a dealer meeting or beRon Hulett, project manager longing to some sort of industry association. BTA provides us U.S. Business Systems Inc., Elkhart, Indiana with this and much more — like free legal advice, discounts “BTA allows dealers to debunk the claims of the manu- by other vendors and industry benchmarking. I, for one, am facturers we represent, as well as level the playing field. Let’s glad I have BTA as a quick reference when I need one.”

Sam Stone, president face it, the manufacturers are in the business of selling too.

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used to ride the train to Chickasha and pick up “BTA has been a valuable my grandfather and they resource to Standley over would ride it to Fort Worth the last 82 years and has [Texas] together to the big changed with the ... times. It NOMDA convention when was a valuable organization it was there. In 1976, I took in 1934 and still is today ... a week out of school and We now have six locations ... drove my grandparents to Little Rock, Arkansas, for BTA has helped us get there.” the TOLA meeting. I first

— Tim Elliott went to a NOMDA meeting Standley Systems in Minneapolis in 1975 or 1976. [After that], my father, Jimmy Elliott, uncle, Don Elliott, and I always went to the NOMDA meetings. That is where you met people and saw “My grandfather, Fred Standley, started Fred Standley what the latest was in adding machines, typewriters, fax Typewriter Company in Chickasha [Oklahoma] in 1934. I machines, copiers and mimeograph equipment. Some of started in 1976 full time, but as far back as I can remem- my fondest memories came from the old NOMDA meetber, Fred was going to NOMDA meetings. Sam Payne, who ings. BTA has been a valuable resource to Standley over owned Enid Typewriter Company in Enid, Oklahoma, the last 82 years and has changed with the ever-changing “Congratulations to BTA on its 90th anniversary! I was president of the Dallas Office Machine Dealers Association in 1980-81 and a national director the same year. I have made lifetime friendships as well as gained business knowledge through educational seminars and programs.”

Johnny Leftwich owner & manager Dustin Office Machines Gainesville, Texas

The State of the Hardcopy Industry in 2016 This webinar will provide a detailed look at the current state of the hardcopy industry. Included in the presentation is a roundup of recent OEM activities and key market trends along with an assessment of how the leading hardware manufacturers are performing financially.

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“Our dealership is in Barbados and BTA has been my “Our dealership is in primary source of reliable Barbados and BTA has business technology intelbeen my primary source of ligence for close to 30 years. reliable business technology It has helped me stay on or intelligence for close to 30 ahead of the curve in an inyears. It has helped me stay dustry that has been con... ahead of the curve in an tinually evolving, sometimes with dramatic implications. industry that has been continually evolving ... ” Without a doubt, our contin — Richard Mark ued success has been linked R L Mark & Co. Ltd. to our reliance on BTA. Congratulations, BTA, on your “Our membership in BTA (NOMDA) has been a huge success every year for 40 years. 90th anniversary and thank you for your exceptional service We proudly enjoy being a member of such a great dealer as- to our industry!”

Richard Mark, founder & chairman sociation. Congratulations on 90 years of helping us dealers R L Mark & Co. Ltd., Wildey, St. Michael, Barbados n to be the best we can possibly be! We are proud of our relaBrent Hoskins, executive director of the Business Technology tionship with BTA!” Association, is editor of Office Technology magazine.

Jerry Carlisle, CEO He can be reached at brent@bta.org or (816) 303-4040.

Business World Inc., Little Rock, Arkansas times. It was a valuable organization in 1934 and still is today. My son, Blake Elliott, the fourth generation, just got back from the SDG meeting in Chicago. We now have six locations and 130 people strong; BTA has helped us get there.”

Tim Elliott, owner Standley Systems Chickasha, Oklahoma

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Cover Story Jun 16.indd 9

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‘You-Proofing’ Your Business A dealership should not be built around one person by: Jim Kahrs, Prosperity Plus Management Consulting

M

ost first-generation dealership principals came to be business owners after being either successful salespeople or technicians. In almost all cases, these businesses started out small and built momentum over time and, very often, they started in garages, offices in the home or small offices. The businesses were built with the owners as the center of everything.

One problem that some dealership owners face is the fact that they have remained the center of their businesses as they have grown.

This can impact a business in many ways.

First and foremost, a business that is built totally around one person can only grow to a certain point before it stagnates.

This point will vary based on the skill set of the owner. I have seen many dealerships under this structure top out in the $2 million to $3 million revenue area while others have been able to push it as high as $5 million. Yet a ceiling remains in place, as there are only so many hours in a day and there is just so much one person can do before the clock runs out for the day.

Another major impact of this is an inability to create and implement a succession plan and/or exit strategy. No matter who you are, there will be a need for a succession plan at some point in the future. When the business is built around one person, this process becomes much more difficult. The business cannot be passed on to family members or key employees unless there is an heir to the throne who has the ability to do what the owner does on a daily basis. This is one of the biggest stumbling blocks dealership owners run into when planning an exit. As a result, the options are limited. Too often the only option is to sell the business to someone else in the area who will dismantle much of the infrastructure and tuck the sales and service operations into his (or her) business.

The way to have plenty of options and to operate from a position of strength is to “you-proof” your business. By this I mean: Reduce the reliance that the business has on you as the owner and the most important cog in the machine. The benefits of doing so are many. You will be able to spend time away from the business without it collapsing. You will have

happier, more empowered employees. You will build significantly more value into the business.

And, you will open the door to all options when creating your succession plan and exit strategy.

You might even increase your revenue and net profit substantially. So, how do you you-proof your dealership? It starts with identifying the areas you hold the keys to and moving responsibility to others. Let’s look at a few of these areas.

Sales & Big Accounts As mentioned, most first-generation dealership owners have come up through the industry as successful salespeople. They started their businesses as salespeople and have been the focal point of their sales departments ever since. Start by asking yourself these questions: “What would happen if I wasn’t in sales? Would the company collapse? Would it take a big step backward?” If the answers are “yes,” you need to look at bringing others up to your level. If you are holding on to most of the big accounts, you need to bring other reps into them. The initial objection to this tends to be twofold. First, there is the fear that no one else can handle the accounts and get the same level of sales you do from them. This is solved by training and monitoring. Do not drop the accounts entirely; stay involved as you transition other reps to handle them.

The second part of the objection is that you now have to pay someone commission on business you were not previously paying commission on. These “house” accounts did not have sales commission tied to them. In effect, you were working these accounts for free. Any job you do in the business without being paid for it is a trap. You will be trapped doing this forever as the business “cannot afford” to pay someone else to do it. If you handle accounts on your own, I suggest you pay yourself commission as a sales rep. This will force the business to cover the true sales expense while still driving toward an appropriate bottom-line profit. If you do not pay any commission on some of your sales, then the company net income target needs to be higher to make up for it.

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Kahrs Jun 16.indd 1

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a minimum number of interviews each Decision Making If you embrace the week or month. In sales, where turnover Are your people constantly coming to is greater, I would suggest one per week. you with problems and issues and lookprocess, you will find In service and admin, you could go with ing for you to provide solutions? A major that this starting one per month. By requiring this, manstep in you-proofing your business is getpoint will lead to a agers have to constantly look for talentting the people around you to start makdramatic shift in the ed people and it will build a pool from ing their own decisions. This does not responsibility level of which to pull. They will also get better at mean you have to completely let go of the locating and identifying truly talented reins, but you do need to start pushing your team members. people.

You-proofing your dealership back and challenging your managers to will definitely hinge on the ability of you come up with their own solutions. and your managers to recruit strong team members.

If you really look at this, you might be surprised how often others look to you to make decisions they are perfectly capable of making. You will also realize how many hours you lose Future Planning As the owner, you have been the one providing the direchandling these problems. Yes, you are likely the best problem tion for the business: “What products should we sell? On what solver in the business, but that does not mean you cannot markets should we focus? Should we consider acquisitions?” train others. You will be amazed how much time you can get These are all great questions that are rarely contemplated by back as those around you begin taking full responsibility for team members.

One way to bring them into the conversation their areas. You will also be surprised at how well many of is to do an annual SWOT analysis. This is a process where them will handle things when trained properly and trusted your managers and key employees brainstorm how to plan to make their own decisions. for the future. You look at and discuss the strengths, weaknesses, opportunities and threats of your dealership. In doFinancial Review & Management Too many dealership owners bear the burden of managing ing so, you can come up with plans to correct the weaknesses their financials on their own. The first thing to understand and minimize the threats while building on the strengths is that the financials are the scorecard of your business. You and capitalizing on the opportunities. Your team members have a team of people playing this game of business with now increase their overall responsibility for determining the you. Imagine the results a professional sports team would future of the company. When done correctly, they now share have if the team had no idea what the score was? By know- ownership for the future direction of the business.

The above items represent just a handful of areas you can ing the score, team members have the ability to adjust their look at when trying to you-proof your dealership. They will game plans and their sense of urgency to win the game. If provide a great starting point. If you embrace the process, you do not share the financial results — your scorecard — you will find that this starting point will lead to a dramatic your team members are in the dark. You do not get the benshift in the responsibility level of your team members. They efit of them adjusting their behaviors based on the situation. will slowly understand that they are not there to wait for you There are many ways you can share the financial scorecard to give orders and provide direction; they can and should be of the business. Some dealership owners have an open-book active participants sharing the responsibilities. When they policy where all employees see all financials. Others will fully embrace this, anything is possible. You now have a pool only share certain information, like overall revenue and deof talented people to draw from when looking for a succespartmental profitability. There is no right or wrong answer sor and you will have a more stable and profitable business. to what you share, but I suggest sharing what you think will This will open up options for moving forward. Holding on to help your team members see the bigger picture and adjust everything yourself typically leads to only one exit option: their behavior to achieve company goals. The key is to share sell the business for less than it is worth to someone who the information often and get everyone involved. will dismantle it to pull out as much profit as possible. With time on your side, the choice is yours. n Recruiting Employees Jim Kahrs and Prosperity Plus have worked The success of every organization is closely tied to the with more than 125 dealerships in the people who make up its ranks. It is important for front-line valuation, purchase and sale process. managers to learn how to successfully recruit good talKahrs can be reached at (631) 382-7762 ent. As the business owner, you need to provide the trainor jkahrs@prosperityplus.com. ing, direction and incentives required for your managers.

Visit www.prosperityplus.com.

One way to do this is to require each manager to conduct 28 | ­w w w. o f f ic et ec hno lo g ym a g.c om | June 2 0 1 6

Kahrs Jun 16.indd 2

6/1/16 10:17 AM

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REFLECTIONS ON 90 YEARS

Looking Back ‘I was a supporter then ... and I am a supporter now’ by: Lou Slawetsky, Industry Analysts Inc.

I

t occurs to me that I am the senior consultant in our industry. Not the oldest, mind you, but consulting since 1972 and incorporating in 1973 qualifies for seniority and, certainly, a unique perspective on the Business Technology Association (BTA). In fact, my experience with BTA dates back even further — to my time as copy products manager for Remington Rand in 1969.

Many will not remember or did not know this, but there were actually two major national associations in those days — the National Office Products Association (NOPA) and the National Office Machine Dealers Association (NOMDA; now BTA). While there was some overlap in membership, it was easy to delineate between the two. NOPA was focused on manufacturers, furniture and supplies. NOMDA was focused on independent dealers, copiers, typewriters and adding machines/calculators.

Both organizations conducted national conventions as well as regional shows. Because of the breadth of products offered at Remington Rand, I became active in both groups. As the focus of each group sharpened, NOPA became a vendor group, while NOMDA served the independent dealer. Some years, it almost felt like there was a contentious relationship between the two organizations, as each group — dealers and vendors — felt that the other was taking advantage of them.

Still, NOMDA had the dealers’ backs, in no small part due to the efforts of its general counsel, Bob Goldberg. Remember the battles around gray-market supplies, hardware skating, one-sided dealer contracts and account protection? Few dealers could make their voices heard to their suppliers, but through the efforts of NOMDA, many of these issues were resolved.

Through the years, Industry Analysts Inc. became aligned with independent dealers, helping them with training, support and advice in much the same way NOMDA had. Speaking to dealers at NOMDA shows became a natural extension of my mainstream activities. In fact, the give and take of those sessions was as meaningful for me as it was for the dealers in attendance. I will always remember speaking in one of the “big rooms” where we packed so many dealers into the session that the fire marshal tried to close us down. There was an excitement there that reflected the excitement generated by NOMDA. I recall a quote by Oscar Wilde: “No good deed goes unpunished.” At its zenith, the NOMDA show was supported by virtually every major manufacturer. Ultimately, these manufacturers

became reticent to expose their dealers to potential poaching by competitors and they began holding their own shows. These events were more costly, but vendors felt secure in isolating their dealers from the competition as they migrated to this strategy.

In an effort to remain a viable force, NOMDA held a joint show with NOPA and another organization, the Local Area Network Dealer Association (LANDA; NOMDA had assumed management of LANDA). The first (and I believe only) joint show between these organizations was really separate shows under one roof.

I recall that the sign outside the Las Vegas Convention Center read: “Welcome to NOMDA/LANDA NOPA.” Was this an office products show or a fraternity?

For several years, membership declined, vendors jumped ship and some analysts stopped covering events. NOMDA became BTA and it went through a series of executive directors until, ultimately, it “found” Brent Hoskins, who had been there all along. Brent, along with the association’s dealer volunteers, changed the focus of the association, stressing dealer training and support through regional meetings.

So, here we are today. BTA remains a vibrant, relevant organization with a loyal, growing membership. It is the number-one source for unbiased dealer support beyond that which vendors are able or willing to provide. It is the only resource for dealer legal support, led by Goldberg, who works with vendors to revise dealer contracts so they are less biased; provides guidance in early lease termination issues; fights patent protection; and combats “phishing,” as was the case for recent scanner issues. All of this comes at no cost to the dealer.

So, there it is — a look back. I was a supporter then, I was a supporter when it felt like I was shouting against the wind and I am a supporter now. Congrats, BTA, on this important 90th anniversary! n Lou Slawetsky founded Industry Analysts Inc. (IA) in 1973 in Rochester, New York, as a market research firm focused on the office equipment industry. Today, IA provides industry news, consulting, copier/MFP/printer sales training, custom research and product evaluations. Previously, Slawetsky worked for Sperry Rand and Xerox. He can be reached at lou@industryanalysts.com.

Visit www.industryanalysts.com.

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EDUCATION CALENDAR June

22-23 ProFinance 2.0

Bloomington, Minnesota With color, connectivity, software, managed print services (MPS) and managed network services (MNS), the business has changed — and ProFinance has changed with it. ProFinance 2.0 incorporates these changes into the industry model, including benchmarks for MPS. With more than 30 key benchmarks, this management tool will help you and your team achieve double-digit operating income. Visit www.bta.org/ProFinance to register.

28

Building My Business Webinar: “Successful Dealership Event & Lunch and Learn Attendance”

Have you ever planned an event or a lunch and learn, only to be disappointed by the lackluster turnout and less-than-ideal resulting sales? Clearly, you host such events at your dealership with the expectation that they will lead to some great selling successes with the products and services offered by your dealership. In this webinar, Kate Kingston of Kingston Training Group will share, step by step, a proven method to increase and confirm attendance for your next dealership event and/or lunch and learn. She will also provide strategies to help you generate more meetings to sell as a result. Visit www.bta.org/BuildingMyBusiness to register.

28-29 BTA Managed Services Workshop

Fort Worth, Texas Have you invested in the managed IT services market but have yet to see the results you thought you would? Are you looking for answers on how to execute instead of just hearing about what you should do? The BTA Managed Services Workshop now includes the data within the Managed Services Business Model v4.0. Visit www.bta.org/MS to register.

August 4-5

Capture the Magic - Hosted by BTA West Las Vegas, Nevada Planned and hosted by the dealer volunteer leadership team of BTA West, the Capture the Magic event will feature a powerful keynote session and six general sessions specifically selected for today’s office technology dealers. In addition, the event agenda includes great networking opportunities — a welcoming reception and a Blue Man Group performance. There will also be time to visit with 30-plus exhibiting sponsors, many of which will hold drawings for great prizes during the event. Dealer attendees can enter on-site for a chance to win one of five $100 American Express gift cards and be entered into the BTA Events Sweepstakes. BTA member dealers receive 2-for-1 registration. Visit www.bta.org/BTAWestEvent to register.

For more information, visit www.bta.org/Education or call (800) 843-5059.

www.offi cetechnol ogym a g. c om | J u n e 2016 | 31

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

Dealer Members Beeler Impression Products, Chattanooga, TN EOS Technologies, Schenectady, NY Laser Options, Phoenix, AZ Multicard, Los Angeles, CA Office Machine Mart, Kansas City, MO opencopy, South San Francisco, CA South Mississippi Business Machines, Gulfport, MS Valley Office Solutions, Youngstown, OH Service Associate Members Nation-Wide Repair Service, Overland Park, KS Collabtic Fieldpulse LLC, Detroit, MI For full contact information of these new members, visit www.bta.org.

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 Nation-Wide Repair Service Inc. (NWRS) was established in 1985 as a cost-savings alternative to purchasing new circuit boards from the manufacturer.

NWRS’s priority on serving the customer with an ease of doing business has allowed it to stand out in the office equipment industry for more than 30 years. The company took great customer service to an even higher level when its employees purchased the company from its founder in 1999 and it became a 100-percent employee-owned company. NWRS expanded the products it supports by acquiring Fusion Image Technology in early 2016. www.nwrsinc.com

InfoTrends’ Dealer VMO Analysis Enhancing sales productivity, differentiation and maximizing individual markets are ultimate goals for today’s independent office technology dealer. Understanding a dealer’s specific market dynamics by vertical or company size can provide lucrative opportunities, but can be challenging. To help solve these challenges, InfoTrends created the Dealer Vertical Market Opportunity Analysis, available at a discount to BTA members.

Visit www.bta.org/DealerVMO for more information.

For information on BTA member benefits, visit www.bta.org/MemberBenefits.

BTA Service Associate member ScanOptics is a “paperto-paperless” company providing document management solutions and document processing outsourcing services. Its managed capture service platform, easy.forward™, enables the capture, classification, storage and retrieval of documents using browsers and mobile devices anytime, anywhere. Recent Scan-Optics’ advances include acoustic double page detection, the integration of MICR and bar-code reading into the recognition system, and the introduction of grayscale capability in OCR. www.scanoptics.com A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

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6/1/16 11:08 AM

COURTS & CAPITOLS

90 Years of Channel Building ‘Doing for the dealer what he cannot do for himself’ by: Robert C. Goldberg, general counsel for the Business Technology Association

A

s the Business Technology Association (BTA) approaches its celebration of 90 years serving the industry, it is an excellent time to reflect. Personally, it is rewarding to know that I have served as general counsel to the organization for more than one-third of its existence. It is not the staff (although their devotion is incredible), but the dedicated volunteers who give their time and abilities that has propelled BTA throughout the years. I hope to see everyone June 10 in Kansas City, Missouri, to celebrate the association’s 90th anniversary.

My first exposure to the National Office Machine Dealers Association (NOMDA; now BTA) was a meeting of copier dealers at O’Hare International Airport in January 1977. The meeting brought more than 150 dealers to Chicago, Illinois. They came because their suppliers were delivering equipment that had not been field-tested, were missing several published capabilities and often started fires. Compounding a bad situation were manufacturer/dealer agreements that were so one-sided in favor of the manufacturers that the only dealer recourse was to cancel their relationships. Dealers were forced to provide countless uncompensated service hours just to keep the equipment running.

One-sided dealer agreements led to the introduction of the NOMDA Model Dealer Agreement. There were four essential provisions in the agreement: (1) the dealer and manufacturer agreed that throughout the term of, and in terminating the agreement, they would treat each other, as well as the end user, in a fair, equitable and ethical manner; (2) all performance quotas would be mutually agreed upon; (3) the term of the agreement would be open-ended and only terminated “for cause”; and (4) any disputes would be submitted to the NOMDA Manufacturer/Dealer Relations Committee and, if not resolved, moved to binding arbitration. Suppliers that adopted the Model Dealer Agreement were recognized and they found it easier to build their dealer bases. BTA continues to approve fair and equitable supplier agreements for the channel.

During the 1980s, NOMDA filed suit against Monroe, the calculator company. Monroe was in the midst of a transition where calculators were becoming digital and their mechanical calculator sales were declining. Monroe concluded that it would cease selling parts to independent dealers and, thus, receive all service revenue. This abrupt change in policy precluded dealers from fulfilling their maintenance agreements and interfered with their contractual relationships. Furthermore,

NOMDA contended that the policy not to sell parts to independent dealers constituted monopolization of the servicing of Monroe calculators. A suit was filed in the name of the association and the court ruled that NOMDA was a proper party to maintain these claims on behalf of its members. The dispute was ultimately settled and dealers were again able to purchase parts and supplies to meet their maintenance obligations.

Over the years, NOMDA/BTA has continually stepped up to advocate for its members. Fraudulent telemarketing of supplies is a problem that still exists, though it is not nearly the issue it was in the past. NOMDA/BTA, in conjunction with the Federal Trade Commission and the National Association of Attorneys General, developed a program to combat fraudulent telemarketers. This effort, through education and the creation of a database of complaints, helped law enforcement prosecute companies that employed false and deceptive sales tactics.

NOMDA/BTA maintained the database and whenever 10 or more complaints were received regarding a specific company, the information was provided to law enforcement for prosecution.

When Aloha Leasing entered bankruptcy, hundreds of dealers faced preference claims from the bankruptcy court seeking return of all lease funding paid by Aloha within 90 days of the bankruptcy. Millions of dollars were at stake, as well as the future of hundreds of dealerships. BTA went to court on behalf of its members and established defenses to the preference claims.

Not one dealer was required to return the funding received.

BTA was founded on “doing for the dealer what he (or she) cannot do for himself.” This article only highlights a few of the major accomplishments the association has provided the channel; countless members have been assisted in matters that affected only their businesses. Millions of dollars have been returned, lawsuits avoided, and fair, equitable and ethical conduct established. I personally thank the thousands of dealerships that have supported BTA over the years. Together, the BTA Channel was established and has rewarded all participants with the most effective means of distribution, support and end-user satisfaction.

Come join us June 10 to celebrate the past 90 years and raise a glass to the next 90. n Robert C. Goldberg is general counsel for the Business Technology Association.

He can be reached at robert.goldberg@sfnr.com. www.offi cetechnol ogymag. c om | J u n e 2016 | 33

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SERVICE CONNECTIONS

The Looming Crisis Two industry issues that require immediate attention by: Ken Edmonds, Service Management Coach

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ur industry is facing an unprecedented crisis in the reasonably near future. This crisis will affect every dealer in our industry — some much worse than others. There are two components to the crisis: first, the decline in service revenue and, second, the aging workforce in service.

Declining Revenue When I owned a dealership in the late 1990s, my average cost-per-copy (CPC) price was approximately $.014 on a 40-page-per-minute (ppm) black-and-white analog device. Adjusting that value for inflation over the last 20 years, that would be the equivalent of $.02 per copy today. Yet, what we see today are rates for a comparable speed machine are around $.008 per copy. This is about a 60-percent decline in revenue for the same product.

Another factor to consider is that these machines are now almost always connected, being used as scanners, fax machines, printers and copiers. This means the service technician has to have a much more diverse skill set.

Think about the services that you provide to your customers today compared to 10 years ago.

It is true that manufacturers have improved product reliability and have helped cushion the decline in revenue by reducing the cost of some parts and supplies. But most of the other costs associated with a service department are rising steadily. The cost of benefits, travel and training are all continuing to escalate.

The situation reminds me of the airline fare wars of the 1990s. Each airline believed that it had to provide the lowest fares or it would lose business. It did not matter if the fares were profitable or not; each airline just wanted to have the lowest fares. What was the result? Many of the airlines are now gone; several have had to merge or have filed bankruptcy.

If office technology dealers continue on the trajectory they are currently on, they will face the same potential fate.

The Aging Workforce As I visit with dealers and look at the makeup of their service technicians, I see (in most cases) men in their late 40s and older. I recently visited with a service manager and when we talked about his technicians, he had two under 40, two in their 50s and three who were over 60. He and I talked about the difficulty of recruiting younger people in this industry. I

see this pattern in dealership after dealership, and in the manufacturers’ direct operations as well.

What this means is that, in many dealerships, the majority of their talent will be gone in the next 15 years. This also means that attention needs to be given to recruiting new technicians. However, with the budget limitations imposed on service departments thanks to declining revenue, recruiting and retaining younger technicians is becoming more and more difficult.

One part of this issue that should concern every dealer is the changing employment behavior of the current generations.

The older technicians are mostly products of the baby-boomer generation and hold on to jobs for long periods of time; some of them have spent their entire careers at a single company.

That behavior changes dramatically with younger employees.

The millennials are much more prone to job hopping. Some surveys indicate that many expect to be employed at any one job for four years or less.

On the sales side of the house, this may not prove to be an issue. However, in the service department this could be a disaster. A service technician does not even begin to be really competent for about three years. During this time, a great deal of time and money will be invested in developing and training him (or her). While working at a dealership 15 years ago, I did an analysis of this cost and found that it was approximately $60,000 by the time the technician was really competent. This

34 | ­w w w. o f f ic et ec hno lo g y m a g.c om | June 2 0 1 6

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included the cost of his non-productive Strategies Going Forward time, the cost of manufacturers’ schools What are some strategies that office The trend of customers and benefits. If a technician works for a technology service providers can use now paying a fair rate company four years and then leaves, the to help offset the current challenges and for service happens company has not even begun to break even prepare for the future? First, protect your in all other service on his training. service revenue. Do not give your service industries and our When you look at most older technicians away. There needs to be a fundamental at dealerships today, they may have been shift in our industry from every service industry should be technicians for 40 years; 30 years is comprovider being a low-cost provider to prono different. mon. Those technicians, with a few excepviding service as a commodity. There is tions, were initially hired as technicians value to providing a customer with good and they will retire as technicians. In the customer service. The trend of customers paying a fair rate for past, this lack of an upward career path was not an issue, but service happens in all other service industries and our industimes are changing. try should be no different.

As an example, individuals graduating with any kind of comSecond, grow your own technicians. When hiring for equipputer skills may take service technician positions, but most ment setup or delivery personnel, the service manager should will leave as soon as they get opportunities in the IT world. I always be present in the hiring process. Attracting technically believe that if you interview 100 current graduates of commu- adept personnel for these positions should be a requirement. nity college or college and ask them if they would be interested A candidate must be mechanically inclined and have a dein a position with no probability of advancement, 99 would say cent knowledge of basic computer operations. The rest of the “no” and I would question the integrity of the other one. technical background can be given to the candidate through training. Having a clear path for growth is appealing for the prospective employee and can lead to loyalty and longevity in the workplace as long as the employee feels valued and is fairly compensated.

While I do not have the complete answers to these issues, one thing I am sure of is we cannot continue down the current path. To be able to attract and retain the talent necessary to succeed, I think it will require more and more investment in the service department. I also think that the structure of the service department will need to evolve to cope with the changing workforce. In addition, I certainly think these issues require immediate attention before our industry implodes. n Ken Edmonds is currently employed as a district service manager for a major copier/MFP manufacturer.

He has an extensive background in the imaging business, having owned a successful dealership, served as service manager for multiple dealerships and as a document solutions specialist for Sharp Electronics. Additionally, Edmonds has more than 40 years of experience in the electronics and computer fields. He has attended BTA’s FIX: Cost Management for Service workshop, Pros Elite service manager training and the Service Managers Achieve Results training conducted by John Hey and John Hanson for Sharp Electronics. Edmonds also completed the University of Wisconsin training program for technical trainers.

He can be reached at ken.edmonds@CKE-Enterprises.biz.

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PRINCIPAL ISSUES

Value & Vision DocuWare hosts annual conference May 3-6 by: Elizabeth Marvel, Office Technology Magazine

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igital transformation and digitization of economies is changing the way companies do business.

On May 3-6 at the Red Rock Casino Resort & Spa in Las Vegas, Nevada, DocuWare explained how customers can grow their businesses with the company’s software in this new world of work. The theme of the conference, “Value and Vision,” was Thomas Schneck expressed during presentations from DocuWare executives, who shared the company’s successes, its value-based sales approach and its vision for the future.

DocuWare President of Sales Thomas Schneck kicked off the conference by announcing the company’s 2015 revenue results. “Last year was a tremendous year for DocuWare,” Schneck said. “We Jürgen Biffar were able, together with you, to increase our revenues by more than 25 percent, which is an amazing achievement. If you take all the revenue we generate through the software, the professional services and the hardware that you typically sell, our project revenues were actually about $160 million. We were able to win more than 1,200 new customers — exactly 1,269.”

Offering both on-premise and cloud versions of its software, DocuWare has also seen an increased interest in its cloud solution. “What is really amazing is that 15 percent of our new customers are already cloud customers,” Schneck said. “And, actually, in the first quarter of 2016, that number has already jumped to 30 percent. So, when we look at our cloud customers, by the end of 2015, we had 240 customers online with 8,741 users and they managed about 5 million documents.”

DocuWare attributes its success to the value its software provides companies that are undergoing digital transformations.

“We absolutely believe that this bright future will continue,” Schneck said. “And the main reason for that is that we are in the midst of a major trend, which is the digital transformation of economies ... The good news for all of us in the room is that ECM [electronic content management] plays a very important role in digital transformation. I think it’s very easy to understand that with business processes. If we digitize a business process — say, the onboarding of an employee or the invoice approval process — you can very easily see that ECM plays a

very, very important role. We’re at the center of those projects.

“We focus on those aspects that are the most important for a digital transformation: higher sales, higher margin, larger ASP and lower operating costs,” Schneck continued. “Just to say it in one word: value. We want to be the one that is not just showing a company how it’s done and how we digitize a business process or how we digitize the business model. We also want to be the one that best shows how it’s ultimately paying off for the customer — for the company. And that supplies value.”

In his presentation, DocuWare Founder and President of Finance Jürgen Biffar laid out DocuWare’s vision for the future.

“Digitization is at the heart of the next industrial revolution and this is something that we observe every day in the media,” he said. “This digital transformation of business models is revolutionizing entire industries, while digital transformation of business processes touches every company’s internal processes.”

Biffar cited the health-care industry as one area that is undergoing a digital transformation of its business model and processes. “We will be the first to witness the complete digitization of health care,” he said. “The first insurance companies have started to offer special rates for healthy living ... that can be proven by wearing a smartwatch. Thanks to this, and the response to growing cost pressures, we find increasing consolidation into larger practices and local health-care centers. And these new organizations are now at a size where they’re begging for effective document management. That’s where we come in.”

Though many types of businesses are going through this digital transformation, Biffar explained that there should be a hybrid model for at least 10 more years as companies move toward full digitization. “In the past, we had to overcome strong resistance in offices when we took away ... paper,” he said. “But this is basically the opposite for younger employees who simply don’t accept paper anymore ... users are far more resistant to filling up a lot of information containers like binders and file cabinets. So paper use is rapidly shrinking, but some paper will remain probably for the next 10 years. So we need to be prepared for a hybrid path in which we primarily generate, distribute and manage digital documents, and whatever paper documents exist are digitized with a quick scan and then join the flow of native digital documents.” n Elizabeth Marvel is associate editor of Office Technology magazine. She can be reached at elizabeth@bta.org or (816) 303-4060.

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PRINCIPAL ISSUES

Focus Forward Lexmark hosts All-Dealer Conference May 9-11 by: Brent Hoskins, Office Technology Magazine

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ssentially on the heels of the April 19 announcement that Lexmark International Inc. had entered into a definitive merger agreement with a consortium of investors, under which the company would be acquired with an enterprise value of approximately $3.6 billion, Lexmark hosted its All-Dealer Conference, themed “Focus Forward,” May 9-11, in Fort Ron Binkauskas Lauderdale, Florida. It was the company’s fourth dealer conference and the first to take place outside of Lexington, Kentucky.

“I know a lot of you have been concerned since we started this whole strategic, alternative process and I know that the last few months have certainly been challenging in regard to, ‘are we going to be acquired by one of our competitors Brock Saladin and would that be one of the primary lines that you are already carrying?’” said Ron Binkauskas, vice president and general manager of the North America Imaging Solutions and Services (ISS) Division at Lexmark, as the conference’s opening general session got underway. “This process went on for five or six months and I have to tell you that, right now, we are in a ‘quiet period,’ so what I can share with you is rather limited.”

Binkauskas said he is “pleased to tell you” that Lexmark is not being acquired by one of its competitive manufacturers, but rather by a consortium comprised of APEX, “the technology and strategy arm,” as well as PAG Asia Capital and Legend Capital Management. “Some of you may have heard of Legend Capital; they have a large stake in Lenovo,” he said. “When you think about the potential technology collaboration that could take place, this could be exciting. Now, that is not speculation; all I’m telling you is, it could be exciting.”

With the merger expected to close in the second half of 2016, “Lexmark is staying Lexmark,” Binkauskas emphasized. “The branding is staying, our name is not changing, our executive leadership is not changing and our headquarters will remain in Lexington, Kentucky,” he said. “So, in terms of ‘what does it mean to our relationship?’ it means that it’s clearly business as usual in terms of driving our strategic initiatives. That includes a strong BSD [Business Solutions Dealer] Program to expand and accelerate hardware, supplies and solution sales to the markets that you all serve.”

Among the key “strategic initiatives” cited by Binkauskas is Lexmark’s emphasis on A4 MFPs. Making comparisons to the current political climate in the United States, “I believe big government versus small government is no different than A3 versus A4,” he said. “A4 has been a movement and has been perceived as challenging the status quo. Our program today and tomorrow will focus on this continuation of the A4 movement.”

Binkauskas also emphasized Lexmark’s strides in and focus on providing software-driven solutions to help address customer pain points through an understanding of their specific needs. Such solutions are helping dealers win deals in the “vast SMB space,” he said. “We want to help you attack the market and expand your reach. We want to help you take share from your competitors and go deeper and wider into your current accounts. That’s why we’re calling this event, ‘Focus Forward.’ I want to be clear — there is tremendous opportunity out there in the future for all of us.”

Praising Lexmark’s dealer partners, Binkauskas cited the growth of the company’s dealer channel in a relatively short period of time. “We began building our Business Solutions Dealer Program just a few years ago, starting with just five dealers in the program,” he said. “I’m pleased to tell you that, today, we have more than 260 partners in North America, many of which are here with us in the room today. We’ve seen tremendous growth and success from this program and that’s very much due to the passion that you’ve brought to this relationship, your engagement in the program and your ongoing commitment to Lexmark.”

In his opening general session comments, Brock Saladin, vice president and general manager of global channel sales and marketing at the company, praised the dealer channel as well. “The copier dealer channel is the fastest-growing segment within all of the output divisions of Lexmark, all of ISS,” he said. “We have grown more than 20 percent worldwide BSD revenue on a compounded annual growth rate over the last three years. This is in light of some very stiff competition and some pretty tough market conditions and so I want to say ‘thank you.’ Thank you, particularly to all of you, because North American dealers were instrumental in helping drive that growth.” n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org or (816) 303-4040.

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PRINCIPAL ISSUES

For a Future Together Toshiba hosts dealer & end-user conferences by: Brent Hoskins, Office Technology Magazine

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ocused, in part, on the refresh of its entire MFP lineup — with 23 different models and touting new features that have improved quality, interconnectivity and workplace productivity — Toshiba America Business Solutions (TABS) hosted dealers and end users May 16-19 at its concurrent LEAD 2016 and Toshiba Connect conferences in Las Vegas, Nevada.

Together, the conferences, themed “For a Future Together,” drew approximately 1,750 attendees, including 357 attendees from 139 TABS-authorized dealerships.

“We remain firmly committed to supporting managed print and your MPS business,” said TABS President and CEO Scott Maccabe during the opening general session of the dealer-centric LEAD 2016. “There’s no better evidence of that than the exciting new products we’re proud to introduce today ...

We think you’ll agree that the results were worth the wait.

Based on our e-BRIDGE Next technology, our new lineup not only gives us a leadership role in MFPs, but also positions us for significant growth in managed print in the years ahead.”

Toshiba e-BRIDGE Next technology, “will enable TABS and our partners to develop hardware and software solutions that address mobility, security and productivity as never before,” Maccabe said. “One example is e-BRIDGE CloudConnect, an innovative solution that allows us to remotely monitor, configure and service machines in the field. CloudConnect has already helped service departments around the country significantly increase machine uptime, reduce office workloads and optimize device management.”

The new lineup of five e-STUDIO MFP series includes three color MFP series (13 models) and two monochrome series (10 models), all of which will ship by the end of this summer. New software and hardware elements include Intel’s new processor, a customizable tablet-style user interface, Embedded Application platform and a dual-scan document feeder.

Maccabe noted that beyond the new MFPs, the other components of TABS’ “balanced portfolio” are document capture, workflow and security solutions, as well as digital signage.

“Our offerings in this growing field enable us to deliver innovative solutions to the market,” he said, speaking in particular of digital signage. “Toshiba’s digital signage solutions offer organizations in multiple vertical markets a way to influence an audience as never before. Businesses of all sorts use digital signage to inform, educate, entertain, engage and sell ... Since we last spoke, our program has grown tenfold.”

At TABS’ last LEAD event (in 2014) it announced a “bold

Above: Attendees receive a demonstration of one of Toshiba’s 23 new MFPs in the conferences’ Product Fair. The new MFP lineup consists of 13 color models and 10 monochrome models with new software and hardware elements. Right: Scott Maccabe, president and CEO of Toshiba America Business Solutions. agenda for the company, with five top priorities for our work together,” Maccabe said. He listed the priorities: (1) Refining Toshiba’s internal operations to meet needs faster and communicate more efficiently with its partners and clients; (2) Leverage Toshiba’s core technologies to develop new opportunities; (3) Bring products to market sooner to capture new business; (4) Expand its digital signage offerings while continuing to develop best-in-class products and solutions; and (5) Evolve from a provider of managed print into a “leader” in managed content and information. “In the past year and a half, with your support and that of our partners, we’ve done all that and more,” he said. “And, today, you’ll see the fruits of those labors.”

TABS also announced at the conferences a new agreement to sell and distribute Nuance’s AutoStore and Equitrac document solutions through both its independent dealer network and direct sales operations throughout the United States and Latin America. In addition, TABS announced it has become an authorized distribution partner of the PrintReleaf Exchange, which offers cloud-based paper tracking and reforestation. n Brent Hoskins, executive director of the Business Technology Association, is editor of Office Technology magazine.

He can be reached at brent@bta.org or (816) 303-4040.

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PRINCIPAL ISSUES

Driving Technology Forward KYOCERA hosts annual conference May 16-18 by: Elizabeth Marvel, Office Technology Magazine

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nnouncing 31 new hardware products, along with software solutions and support programs, KYOCERA Document Solutions America (KDA) held its FY17 Business and Technology Conference May 16-18 at the Omni Orlando Resort at ChampionsGate in ChampionsGate, Florida. The conference, themed “ACCELERATE: Driving Technology Forward,” drew more than 1,000 attendees from across the Americas.

In his opening comments, Ed Bialecki, senior vice president of sales for KDA, announced that FY16 marked the seventh consecutive year of growth for the company in the Americas, as well as the fifth consecutive year of record-breaking results. KDA grew its revenue in the United States by 9.6 percent over FY15.

Bialecki explained the conference’s theme in relation to KDA’s sales results. “The simplest definition of ‘accelerate’ is ‘go faster,’” he said. “Thanks to having the right strategy, building great partnerships and continuously investing in our business, we’ve built great momentum ... But moving in the right direction and having great momentum isn’t enough,” he continued.

“So we’re doing everything necessary to achieve maximum acceleration: We’re introducing new products and solutions that will help you accelerate past the competition in your markets.

We’re enhancing every aspect of KDA’s support to help accelerate your performance when it comes to solving customers’ business challenges. And we’re investing in programs that are designed to accelerate your sales growth profitability.”

One aspect of KDA’s acceleration plan, new products and solutions, could be seen in the Technology Fair, which was divided into four pods. The first three focused on workflow challenges — Capture & Distribution; Cost Control & Security; and Document Management — while the fourth, Live Office, allowed dealers to check out KDA’s new hardware in a showroom setup. Each pod featured a spotlight solution highlighting KDA’s newest business applications, as well as showed case studies from companies using Kyocera’s Total Document Solutions (TDS) approach.

The company announced 31 new hardware products — 15 new A3 MFPs and 16 new A4 desktop MFPs and printers. The new A3 systems have 25 to 80 page-per-minute (ppm) speeds in color and black and white, true 1,200-by-1,200-dpi resolution at full speed and standard Wi-Fi and NFC. The service time on the new A3 MFPs has also been reduced to less than 30 minutes. The new A4 desktop MFPs and printers range in speed from 27 to 42 ppm, have standard Wi-Fi, 4.3-inch touchscreens and, on select models, dual-scan document feeders.

Besides hardware, Kyocera also launched several applications:

Left to right: Ed Bialecki, Terry Knopsnyder and Yukio Ikeda.

DMConnect Pro, Dropbox Connector, Google Connector, PinPoint Scan3, Private Scan and the Square 9 Connector.

The second part of KDA’s acceleration plan, enhancing dealer support, was seen in the launch of Kyocera Fleet Services (KFS), a cloud-based service monitoring system. According to Kyocera, beta testers experienced a 15-percent average reduction in on-site service calls after deploying KFS. “With KFS, you can conduct remote analysis of your customers’ equipment, perform remote maintenance for Kyocera MFPs and printers, remotely configure your customers’ devices, and perform remote firmware upgrades, either on-demand or on a scheduled basis,” said Terry Knopsnyder, vice president of engineering, KDA, during his general-session comments.

The final part of Kyocera’s acceleration plan, programs designed to accelerate sales growth profitability, could be seen outside the Technology Fair at the Digital Transformation booths. These booths gave dealers an opportunity to sit with KDA marketing specialists who could help them with their websites and SEO, marketing materials, social media platforms and branding. They also gave dealers advice on using Kyocera’s new integrated marketing campaign.

This year’s conference was the first since KDA President and CEO Yukio Ikeda returned from two years at KYOCERA Document Solutions in Italy. “It is a great privilege for me to be rejoining an organization that is in such strong condition,” Ikeda said in his general-session comments. “My intention is very clear — that is to make the business stronger, and I understand that it is only possible when your business is also accelerated to further growth. Based on the solutions and strategies you will see today, I strongly believe that we are in a good position for another record-breaking year in FY17.” n Elizabeth Marvel is associate editor of Office Technology magazine. She can be reached at elizabeth@bta.org or (816) 303-4060. Visit www.bta.org.

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SELLING SOLUTIONS

Rethinking Points Directing your salespeople to where they need to be by: Troy Harrison, Troy Harrison & Associates

I

have never liked sales activity point systems. I have always looked at them as a crutch for management who simply could not lay out a road map for salespeople to succeed. I still think I am partially right, but I also think that the ever-changing world of sales may require my viewpoint to evolve.

It is getting more challenging to get face time with good customers. That should have prompted a trend of salespeople getting better at prospecting and relationship building, and getting higher-quality appointments with better prospects. Unfortunately, I believe that the opposite is happening; salespeople are spending more of their time on meaningless, agenda-free sales calls to random prospects who cannot buy and who would not amount to much (in terms of the salesperson’s overall goals) if they could.

The reason that I do not like point systems is that, the way they are typically constructed, they allow salespeople to amass points and pretend to have an acceptable level of activity when, in fact, they are not accomplishing anything meaningful. For instance, most point systems put way too much weight on phone calls, and the more calls the salesperson logs, the more they can “fudge” their level of activity.

After talking to a number of sales managers — who are struggling with managing the balance between great target accounts and smaller accounts that give regularity — maybe it is time to think about a point system for sales activity. The conventional point system simply counts activities without thought as to who the customers are and what is discussed.

Let’s move beyond that and think about how we might put together a point system that works.

Phone Calls Phone calls should not have a point value. I know this goes against the whole philosophy of point systems, but what we are trying to do is count meaningful activities that produce meaningful results. A phone call is the first activity in the sales funnel and its only purpose is to get someplace else. Genuine selling does not start until the salesperson is face-to-face with a decision maker, so why give points for phone calls? The same goes for similar activities, like emailing.

Face-to-Face Appointments Here is where we will start giving points. I am going to propose a scale that has a lot of different components to it. It is going to seem very complex, and if you try to tabulate it manually, it will be. Instead, look for places where you can use sales statuses, contact titles and other fields in your CRM to calculate these points automatically. What I am suggesting has many moving parts, but the last thing I want is for you to spend time sitting in your office counting points instead of being out and working with your salespeople. n Base: One point per appointment. This is the minimum for appointments that do not meet any of our “kickers,” which I will explain below. n First Appointment: Two points. This appointment is one that initiates a sales cycle and should be reserved either for new customers or reactivations (customers who have been inactive for 18 months or more). n Preset Agenda & Objective: Double points. For instance, a base appointment would be worth two points with a preset objective. A first appointment would be worth four points. The idea is to stop the “agenda-free” type of sales call that we see so often today. n Appointment With Your Target Contact Type: Fivetimes points. Here is where you have to really manage the process and drive your sales activity. Too often, salespeople end up calling on mid- or low-level managers who could not say “yes” if their lives depended on it. Those calls are, for the most part, pointless and result-free. If you need to be calling on the C-suite in order to get a decision, why reward your people for calling on the stockroom manager? This measurement also takes into account the company that you are calling on; your contact type should be one who could lead you to a meaningful piece of business. The difference is stark — a first appointment with a preset agenda and a target contact type is worth 20 points. An agenda-free call with a non-target is worth one point. n Proposal: Five points. A proposal is a critical step in the sales process. Done correctly, it signifies that you are close to a sale. Hence, we should recognize a proposal more than other www.offi cetechnol ogymag. c om | J u n e 2016 | 45

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So, what should your weekly point quoactivities. Of course, our variables need to ta be? That is not something I can help you come into play here as well.

So, what should your with — it depends on you. However, I would n Qualified Proposal: Double points. weekly point quota be? set it so that it is nearly impossible without A qualified proposal is one that meets the ... I would set it so that it doing at least some target account activity following checklist: The customer’s needs is nearly impossible every week — and then figure how much of have been discovered and confirmed with without doing at least a salesperson’s time you want to spend in the customer; a solution has been presentthose accounts. Set your target appropriateed that is agreeable to the customer; and a some target account ly, then build in the variables to your CRM. specific price for specific service is quoted. activity every week ...

If you are struggling with directing your This data should be logged in your CRM. If salespeople to where they need to be, a proall this is present, give double points. n Face-to-Face Presentation of a Proposal to a Target gram like this might be a solution. n Troy Harrison is the author of “Sell Like You Mean It!” and Contact Type: Five-times points. A presentation to a decision maker in a target account is nearly priceless. Again, figuring “The Pocket Sales Manager.” He is a speaker, consultant and sales navigator who helps companies build more based on our system, a qualified proposal, presented face-toprofitable and productive sales forces with his face to a target contact type would be worth 50 points. cutting-edge sales training and methodologies.

You may have other types of activities for which you want to For information on booking speaking/training give points. For example, an in-house demonstration might be worth points based on where the rep stands in the sales pro- engagements, consulting or to sign up for Harrison’s weekly e-zine, call (913) 645-3603 or email cess. That is OK; just make sure that you are rewarding sales troy@troyharrison.com. Visit www.troyharrison.com. activities appropriately.

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46 | w­ w w. o f f ic et ec hno lo g y m a g.c om | June 2 0 1 6

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