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Office Technology magazine is the magazine of the Business Technology Association, an association of copier/MFP dealers.
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Captain Your Ship
Navigating the stormy
seas in a tough economyby Jake G. WangIDCThe economy has slowed defini-tively, credit markets are tight,the rate of inflation is increasing,hardware vendors are acquiring more of the dealerchannel and competition is growing. All of thesethings are making dealers’ lives more difficult anddeveloping and maintaining differentiation in acrowded market is increasingly fleeting. How candealerships maintain and grow their market share?
4 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8
CONTENTS
Professional Services
Setting your dealership
apart from the competitionby Brent HoskinsOffice Technology Magazine“Stop just ‘selling boxes.’” Manydealers in the office technologyindustry may be tired of hearingthe admonition, especially since itmay seem a bit counter-intuitive. After all, the MFP fac-tories in Japan and elsewhere do manufacture “boxes.”Perhaps, more specifically, the advice should be: “Seeknew, more lucrative means to the same end (sellingMFPs and capturing clicks) while locking in more cus-tomers and setting your dealership apart from competi-tors in order to ensure its ongoing success.”
Volume 15 � No. 3
18
10
20
F E A T U R E A R T I C L E S
The Software Arena
Choosing & providing
the right solutionsBy Ben RussertProSourceWhile the role of the copier/MFPdealer has evolved into a morecomprehensive and customer-focused document solutions provider, so, too, has theneed for technical expertise and support beyond the boxsales of printers and copier/MFPs. The shift to new serv-ices includes adopting and understanding new tech-nologies, including software that integrates and auto-mates document management.
26 One on One
A weekly meeting with
each rep is importantby Jim KahrsPPMC Inc.Do you wish you could get betterconsistency from your sales team members? Do youthink they could work harder or smarter? If youhave answered “yes” to either of these questions, youare not alone.
Non-Disclosure Agreements
Will they protect your
confidential information?by Robert C. GoldbergBTA General CounselAgreements to restrict the disclo-sure of certain types of information — often calledconfidential disclosure agreements (CDAs) or non-disclosure agreements (NDAs) — have become com-mon in business.
22
D E P A R T M E N T S
6
8
30
Executive Director’s Page
BTA President’s Message
Advertiser Index
S E L L I N G S O L U T I O N S
29 Key Account Opportunities
Look at competitive factors
& the investment decisionby Tom KramerCATALYST Performance LearningIn last month’s article, I noted that there are four keyareas that, when taken together, give you a concep-tual framework to assess your key account opportu-nities. In this article, we will look at competitive fac-tors and the investment decision.
Business Technology Association� October/November Education Calendar
� BTA Membership Application
� BTA Highlights
23
C O U R T S & C A P I T O L S
04OT0908:04OT0808 8/29/08 1:55 PM Page 4
Executive Director/BTAEditor/Office Technology
Brent [email protected]
(816) 303-4040
Associate EditorElizabeth Marvel
[email protected](816) 303-4060
Contributing WritersRobert C. Goldberg, General Counsel
Business Technology Association
Jim Kahrs, Prosperity Plus Management Consulting Inc.www.prosperityplus.com
Tom Kramer, CATALYST Performance Learningwww.catalyst2performance.com
Ben Russert, ProSourcewww.totalprosource.com
Jake G. Wang, IDCwww.idc.com
Business Technology Association12411 Wornall Road
Kansas City, MO 64145(816) 941-3100
www.bta.org
Member Services: (800) 505-2821BTA Legal Hotline: (800) 869-6688
Valerie BrisenoMembership & Marketing Manager
Mary HopkinsDatabase Administrator
Teresa LeerarBookkeeper
Brian SmithMembership Sales Representative
©2008 by the Business Technology Association. All RightsReserved. No part of this publication may be reproduced by anymeans without the written permission of the publisher. Everyeffort is made to ensure the accuracy of published material.However, the publisher assumes no liability for errors in articlesnor are opinions expressed necessarily those of the publisher.
EXECUTIVE DIRECTOR’S PAGE
Have you taken
advantage of the
Business Tech-
nolog y Association’s
monthly “Building My
Business” Webinar Ser-
ies? If not, I encourage
you to do so. It is an
af fordable, easy way to hear from the
industry’s leading presenters — affordable
because it is free to BTA members (the only
expense is the cost of the phone call) and
easy because there is no travel involved.
To date, the association has hosted eight
one-hour webinars, collectively drawing
more than 300 attendees. To pre-register,
simply visit www.bta.org and click on “Edu-
cation & Certification” on the home page.
Th en cl ick on “Bui lding My Busin ess
Webinar Series.” Once your BTA member-
ship is verified, you will receive a final regis-
tration e-mail providing you with a dial-in
number and the GoToWebinar link.
Here’s a look at the next three “Building
My Business” webinars:
� “Do You Know Your Numbers?” (4 p.m.
EST, Monday, Sept. 22), to be presented by
John Hey of Strategic Business Associates.
This webinar will highlight the basics of the
Hanson/Hey Model, its validity as a manage-
ment tool, how business owners and their
managers use it and some of the key strategies
to increasing operating income. John began
his career with the former DC Hey Co. in 1973
as vice president of sales. In 1985, he became
president and owner. During the next 12 years,
the company grew from $5 million to $150
million in revenue and from 50 employees to
more than 700. He sold the company to Alco
Standard Co. (IKON) in 1988.
� “The Integrated Advertising Platform”
(4 p.m. EST, Thursday, Oct. 23), to be pre-
sented by Wes Phillips and Ian Crockett of
Orange Label Art + Advertising ( formerly
Hunter Barth Advertising). This webinar
will share a unique approach to developing
your dealership’s core marketing message
and creating an easy-to-administer inte-
grated advertising platform. Wes joined the
agency in 1983 as controller and became
CEO in 1995. Ian, who serves as president of
the agency, has been affiliated with the
office technology industry since 1984. For
many years, they have worked to create
marketing and sales programs for clients
that are strongly tied to an integrated
advertising platform.
� “A Business Model for Professional Serv-
ices” (4 p.m. EST, Tuesday, Nov. 11), to be pre-
sented by Mitch Morgan of CEO Focus. This
webinar will address the many questions
dealers are asking about the professional
services business and the eight critical
factors for success in this growing revenue
category. Mitch was founder of the Connec-
tivity Dealer Program from NIA (a BTA
Alliance) in 1991. After selling NIA to IKON
Office Solutions in 1996, he led the com-
pany’s Technology Services Division, repre-
senting 35 acquisitions of network in-
tegration businesses. He later formed IKON’s
Professional Services Division. Today,
through CEO Focus, he leads the Profes-
sional Services Roundtable, whose members
represent leading independent MFP dealer-
ships that are successfully implementing a
business model for professional services.
Sound interesting? Then pre-register
online today and join the many other dealers
who have taken advantage of this valuable
BTA member benefit. �
— Brent Hoskins
Monthly WebinarsFree To Members
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®
06OT0908:06OT0908 9/2/08 1:33 PM Page 6
BTA PRESIDENT’S MESSAGE
It’s in a beautiful area
on the North Car-
olina side of the
Great Smoky Mountains.
The venue is ver y in-
viting, far from the hustle
and bustle of our busy
lives. And , without a
doubt, the agenda will provide attendees
with insight and guidance that will help
them further boost their dealership’s bottom
line. Scheduled for Oct. 24-25 at the Way-
nesville Country Club Inn in Waynesville,
N.C., the BTA Southeast “Fall Colors Confer-
ence” is an event you will not want to miss.
It has been my privilege to attend this
annual district conference several times in
the past. I always welcome the opportunity
to catch up with my dealer friends in the
Southeast and learn from the various
speakers. The district’s leadership does a
tremendous job of making this a very enjoy-
able, worthwhile event. It is no wonder that
it has been such a success for so many years.
The conference begins with an opening
reception from 6 p.m. to 9 p.m. on Friday,
Oct. 24. The next morning, from 8 a.m. to
noon, there will be three education sessions.
Following an afternoon break to allow atten-
dees to enjoy the sights of the Waynesville
area, the BTA Southeast district will host a
cocktail reception and dinner. The exhibiting
sponsors for the conference are Color
Imaging, ECi, Lexmark, LEAF Dealer Solu-
tions, Muratec America, MWA Intelligence
and Tech Data.
This year, the district has invited me to
be on the agenda as well . Specifically,
during a luncheon following the Saturday
education sessions, I will lead an informal
discussion about industr y trends and
answer any questions attendees have about
the association or, among other topics, a
dealership’s service operation, based on my
many years of experience in this area.
Here’s a look at the conference’s educa-
tion session line-up:
� “Exceptional Customer Service,” pre-
sented by Lisbeth Ann Marin, a self-made
entrepreneur who has more than 25 years of
self-employment and business manage-
ment experience.
� “Driving Service Margins Above 52
Percent,” presented by Jerry Newberry, presi-
dent of BEI Pros. He has more than 24 years
of industry experience, the last 10 years with
Global Imaging Systems as a corporate
officer and national vice president of service.
� “What the CEO Must Know to Raise
Sales Performance,” presented by Karl Graf,
CEO of TrustPoint Management Group. He
specializes in executive sales consulting and
sales productivity training.
General registration for the conference is
$159 and $129 for the second attendee from
the same company. For more information or
to register, visit www.btasoutheast.org or
call (800) 234-8996.
Finally, as a frontrunner to the confer-
ence, the “BTA Sales Management Work-
shop” will be held Oct. 23-24. Led by Tom
Callinan and David Ramos of Strategy
Development, the workshop is designed to
provide dealership principals and sales
managers the tools they need to take their
dealerships’ sales success to new heights.
BTA Sales Management attendees will
receive free General Registration to the Fall
Colors Conference. For more information or
to register, visit www.bta.org or call (800)
843-5059. �
— Ronelle Ingram
BTA Southeast EventSet For Oct. 24-25
®
2008-2009 Board of Directors
PresidentRonelle Ingram
Steven Enterprises Inc.17952 Sky Park Circle
Ste. EIrvine, CA 92614
President-ElectBill James
WJS Enterprises Inc.3315 Ridgelake DriveMetairie, LA 70002
Vice PresidentRock Janecek
Burtronics Business Systems Inc.216 S. Arrowhead Ave.
P.O. Box 1170San Bernardino, CA [email protected]
BTA EastTom Ouellette
Budget Document Technology251 Goddard Road
P.O. Box 2322Lewiston, ME 04240
BTA Mid-AmericaMike Blake
Corporate Business Systems LLC6300 Monona DriveMadison, WI 53716
BTA SoutheastBob Smith
Copiers Plus Inc.408 Chicago Drive
Fayetteville, NC [email protected]
BTA WestGreg Valen
Hawaii Business Equipment Inc.Toshiba Business Solutions - Hawaii
590-A Paiea St.Honolulu, HI 96819
Ex-Officio/General CounselRobert C. Goldberg
Schoenberg Finkel Newman & Rosenberg LLC222 S. Riverside Plaza
Ste. 2100Chicago, IL 60606
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by: Brent Hoskins, Office Technology Magazine
Professional ServicesSetting your dealership apart from the competition
“Stop just ‘selling boxes.’” Many
dealers in the office technology
industry may be tired of hearing
the admonition, especially since it may
seem a bit counter-intuitive. After all, the
MFP factories in Japan and elsewhere do
manufacture “boxes.” Perhaps, more specif-
ically, the advice should be: “Seek new,
more lucrative means to the same end
(selling MFPs and capturing clicks) while
locking in more customers and setting your
dealership apart from competitors in order
to ensure its ongoing success.”
Of course, many dealerships have
already moved their focus away from always “just selling
boxes.” Instead, they are also pursuing new ways to win and
keep customers, capturing more clicks. Increasingly, this
includes a professional services strategy.
What are professional services? Generally speaking, they
are chargeable, often knowledge- and support-based offer-
ings such as: document-related software implementation
and customization (i.e., document management, variable
data printing solutions, etc.); ongoing software maintenance;
managed print services; custom scope-of-work deliverables;
post-sale support; and consulting and assessment services.
Why is it important for dealers to pursue such services?
“The risks of not doing so are pretty apparent,” says Mitch
Morgan, former vice president of professional services for
IKON Office Solutions and now president of Professional
Services Roundtable, a dealer peer collaboration consultancy
through CEO Focus (www.ceofocus.com). “The risk is being
non-competitive in the market compared to other traditional
competitors that are now moving forward in this area.”
In addition, says Morgan, the dealer who opts not to offer
professional services is jeopardizing the value of his (or her)
dealership. “Any buyer would have to look at what types of
things they would need to do in order to
make sure the business is viable on a go-
forward basis,” he says. “So, there is a risk
in terms of the actual value of the busi-
ness going forward.”
Tom Callinan, president of Strategy
Development, a sales management con-
sultancy (www.strategydevelopment.org.),
and a former executive with IKON as well,
offers an additional perspective on the
reason to pursue a professional services
strategy. “With a continued decrease in
average unit selling prices of hardware
and a year-over-year decrease in the quan-
tity of units sold, if the dealership is going to grow, professional
services is an area in which the dealership can grow profitably,”
he says. “Moving into this area is offensive and defensive.”
If the strategy is increasingly important to a dealership’s
long-term profitability and viability, are most dealerships,
then, effectively offering professional services? It appears
the answer is “no.”
“I don’t think there are very many dealerships — Toshiba
or otherwise — that have a very effective professional serv-
ices program,” says Bill Melo, vice president of national
accounts, marketing and operations, for Toshiba America
Business Solutions (TABS). “But I do think most dealers are
aware of the professional services that go beyond what
they’ve offered in the past. I think there is a high level of
awareness right now. There are probably more dealers in a
trial-and-error stage now than there were a year ago.”
Morgan shares a similar observation. “Nearly all dealer-
ships have what most of them would call an IT group,” he says.
“And that IT group would serve a dual function — to manage
the internal IT at the dealership and to do connectivity
installs. So, most, if not all, of the dealerships that are out
there have what I would call the seeds of professional services.
Cover Story Sept 08:Cover Story Aug 08 8/29/08 12:23 PM Page 10
They’ve got a group of folks
who are technical in nature
who are used to dealing with
the IT environment.”
However, w hile many
dealerships with an IT group
do charge fees for connec-
tivity and a “stripped down”
help desk, “most of them
have not really transitioned
to what I call a ‘culture of
chargeability,’” says Morgan.
“So, I would say that the
majority of dealerships have some of the elements — the
beginning point in place — but probably only about 30 to 40
percent of the dealers I talk to have an actual professional
services strategy.”
Morgan adds that a number of the dealers he talks to do
have a vision of the professional services endpoint they want
to achieve. “However, the
roadmap to getting there is
very fuzzy to them,” he says.
“So, having a vision of where
you want to end up doesn’t
necessarily equate to mak-
ing progress.”
What is the holdup? It
appears that one of the cul-
prits is the tendency to view
a professional services strat-
egy simply like the addition
of another hardware prod-
uct. “I have had very successful dealership principals say to
me, ‘I don’t mind making the investment, I just need to know
what my return is going to be and when I can expect a
return.’” says Morgan. “I think that is one of the big holdups.”
Another holdup is the lack of a good plan, says Callinan. “In
fact, I would say that very few dealers who offer professional
12 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8
“... Most, if not all, of thedealerships that are outthere have ... the seeds ofprofessional services.They’ve got a group offolks who are technical innature who are used todealing with the IT environment.”
— Mitch MorganCEO Focus
Cover Story Sept 08:Cover Story Aug 08 8/29/08 12:23 PM Page 11
services have a well-thought-
out strategy,” he says. “It is
often vendor driven. In other
words, the dealer goes to a
vendor meeting and hears
something good about a soft-
ware vendor that sells a par-
ticular product. The next
thing you know, the dealer-
ship is selling that vendor’s
product and there is no well-
thought-out strategy.”
What should a good strat-
egy or plan entail? “The plan needs to include qualitative ele-
ments that relate to personnel, resources, activities and
accountability,” says Morgan. “And it needs to include targets
for revenue growth — where the dealership is trying to take
the business in year one and beyond. I recommend that the
year-one target be 6 to 8 percent of equipment revenue.”
In that first year, the dealership may want to begin by pur-
suing a low- to medium-level document management solu-
tion that is tied into the
sales cycle of an equipment
discussion, says Morgan. By
the third year, he says, the
target revenue should be 17
to 20 percent of equipment
revenues, and will involve
more complex installations,
such as $15,000 to $50,000
do cum ent managem ent
deals with $2,000 to $5,000
ser vices fees associated
with the software. “By the
third year,” he says, “this becomes a meaningful revenue
source once the business reaches maturity.”
To help dealerships develop the ideal plan, Morgan shares
what he identifies as the “eight critical success factors for
professional services.” They are as follows:
� Organization Structure — It is important to have the
right person in the right job, with dedicated roles. There should
be appropriate headcount metrics to support the initiative.
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“... Very few dealers ...have a well-thought-outstrategy. The dealer ...hears something goodabout a software vendor ...The next thing you know,the dealership is sellingthat vendor’s product ...”
— Tom CallinanStrategy Development
Cover Story Sept 08:Cover Story Aug 08 8/29/08 12:24 PM Page 12
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� Accountability/Activ-
ity — In many dealerships,
the professional services
group operates without a
clear set of performance
expectations, beginning with
activity and productivity
targets. A clearly defined set
of expectations and the
measurement of activities
and performance accounta-
bility are critical.
� Sales Int egration/
Inspection — Professional services specialists provide
support to sales and drive software-based solutions through
the traditional sales organization. Sales management pro-
vides the needed inspection and focus.
� Compensation/Incentives — Incentives are provided
to drive behavior toward value-added solutions. Attainable
quotas are established to
ensure appropriate focus
and accountability.
� Software Products/
Services — There should be
an appropriate mix of soft-
ware-based products geared
to inclusion with equipment
placements and providing
an opportunity to grow with
customer requirements.
� Service — Basic con-
n ectiv ity responsibi l ity
needs to be shifted to the service organization, freeing pro-
fessional services resources to focus on software offerings.
� Financial Reporting — Key metrics should include
revenue, margin, contribution, headcount and productivity.
� Training and Development — Professional services
personnel have a responsibility to provide training and
development to sales and service personnel to enhance
knowledge of current and future software offerings.
“These eight critical success factors are the issues that
dealers need to check off and build around in order to be sure
they are successful in professional services,” says Morgan.
“The good thing about it is, generally speaking, if the transi-
tion is handled properly, it is an opportunity for incremental
revenue with existing resources. Most companies that I work
with do not have to add a lot of headcount to get to that first
year billing level (6 to 8 percent of equipment revenue).”
Melo agrees with Morgan that developing a professional
services strategy over time makes sense. He acknowledges that
the number of relationships that Toshiba and other manufac-
turers have with third-party software companies can be over-
whelming for dealers. “My advice is to focus on something that
complements your dealership and your customer base and
become really good at it,” he says. “It is better to be really good
at one thing than to be mediocre at ten things. So, aim for and
achieve small victories, and then build on those victories.”
Callinan offers similar advice. “Don’t start with the most
sexy, technically advanced product offering out there,
because it is going to have a very long sales cycle,” he says. “It’s
going to be complicated from a process perspective to imple-
ment and you are probably going to experience a failure with
it. Where, if you can build some success with easier-to-sell
professional services, you will get comfortable with them and,
eventually, you can get into those complex areas.”
Will there come a day when end-users simply expect that
“... Focus on somethingthat complements yourdealership and your customer base andbecome really good at it.It is better to be reallygood at one thing than tobe mediocre at ten things.”
— Bill Melo Toshiba America Business Solutions
Cover Story Sept 08:Cover Story Aug 08 8/29/08 12:24 PM Page 13
office technology dealer-
ships will also offer profes-
sional services? “If that day
has not arrived, it’s not in
the too distant future,” says
Callinan. “So, dealers need
to develop these competen-
cies today.”
Morgan concurs. “ The
more we are dealing inside
th e I T environm ent, th e
more th e custom ers are
expecting us to be able to
offer some of these value-added services,” he says. “By the
way, they don’t mind paying for it.”
(As an alternative, dealers who are uncertain whether
they want to employ the personnel necessary to develop a
professional services strategy may want to consider The
Utility Company [www.theutilitycompany.com], a managed
IT services company that partners with office technology
dealerships. The franchise company provides dealerships
with th e abi l ity to b e a
single-source technology
provider, offering remote
monitoring and per-minute
help desk, network, desktop,
security, online data backup
and communications serv-
ices. “We provide dealers
with a complete business
system to market, sell and
deliver managed IT services
with more than 90 percent
of customer issues resolved
remotely,” says Mark Scott, president and founder. “Our
recurring revenue model has built-in loyalty through exclu-
sivity and is a great alternative to the ‘do-it-
yourself ’ approach.”) �Brent Hoskins, executive director of the
Business Technology Association,
is editor of Office Technology magazine.
He can be reached at [email protected].
“We provide dealers with acomplete business systemto market, sell and delivermanaged IT services withmore than 90 percent of customer issues resolvedremotely. Our recurringrevenue model has built-in loyalty ...”
— Mark ScottThe Utility Company
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by: Jake G. Wang, IDC
Captain Your ShipNavigating the stormy seas in a tough economy
The economy has slowed defini-
tively, credit markets are tight, the
rate of inflation is increasing,
hardware vendors are acquiring more of
the dealer channel and competition is
growing. All of these things are making
dealers’ lives more difficult and devel-
oping and maintaining differentiation in
a crowded market is increasingly fleet-
ing. How can dealerships maintain and
grow their market share when so many forces are poised
against them?
When things get chaotic at sea, what does the captain of a
ship do? He (or she) coolly and calmly surveys the landscape,
identifies a heading and plots a course around obstacles to
reach his goal. Today’s small- and medium-sized business
owners must do the same. The goal, of course, is to maintain
existing business and grow new business. In order to do so in a
highly competitive and declining market, dealers must provide
more value and better service than the competition. Even in
stormy seas, a savvy captain can find an easier path to reach his
destination. In today’s difficult market, that path is the develop-
ment of a value-added relationship with your customer base.
In a services-led business model, customer expectations
of high-quality products with rich features, competitive
pricing and high reliability are a given. What distinguishes
you from your competitors is the ability to provide added
value to your customers, to know them better than anyone
else and provide intelligent analysis, service and improve-
ments to their environment.
In order to do this, information is required. You must
have a deep and penetrating understanding of the cus-
tomer’s environment. Information is power and the right
information, interpreted correctly and in a timely manner,
can provide you with the key to adding value. The greater
your ability to improve your client’s document output envi-
ronment, the greater your value will be
to them and the less likely the client
will switch to a new provider. More
importantly, the more time a client
spends working with you to under-
stand his environment, the less incen-
tive he has to work with someone else.
In software terms, this is often called
“application stickiness” or “change
cost.” In the document output world,
the same analogy applies. How much stickiness have you
developed with your client base?
IDC’s research indicates that the majority of end-users
have no idea how much their document output costs are or
how much volume they are printing or copying. In fact, cus-
tomer perception of their output behavior is almost always
inaccurate. If end-users do not know or have misconcep-
tions of their document output, how can a vendor or service
provider help? The answer is the key to gaining competitive
advantage and in the current economic slowdown, it is
absolutely critical to understand.
The first step to solving a problem is to identify what the
problem is. In this case, the key is pages. Where are they
printed and copied? On what types of devices? Where are color
prints going? Are devices under- or over-utilized? Do legacy
devices need to be removed and replaced with current tech-
nology? Are there business processes that could be automated,
improved or removed? The first step in building value with a
client is to be able to help them understand their environment.
The tools for assessing document output environments have
improved vastly over the last five years, yet surprisingly, only 20
percent of the companies IDC surveyed had deployed any type
of remote device or fleet management software. In an increas-
ingly crowded sales market, a 20 percent penetration rate is
surprising and indicates a very large available market for
dealers who wish to help customers understand and improve
Wang Sept 08:Wang Sept 08 8/29/08 10:11 AM Page 10
their document output environment.
IDC’s research on customer buying
preferences indicates that more than 50
percent of small- and medium-sized
businesses and more than 60 percent of
large business are interested in tools
that manage and track access and usage
of devices. That is over half of the
market, yet only 20 percent of compa-
nies have installed software to monitor
devices. That means more than one-third of companies
today are interested in some type of device management
and have yet to adopt any tools or services.
Case in point: When analyzing the drivers for why cus-
tomers are currently buying workgroup laser printers and
workgroup laser MFPs, IDC research indicates that device
consolidation is one of the least important reasons for pur-
chasing equipment. Customers who do not know what is
going on in their environments will not know if there is a
problem that needs to be fixed.
In order to accurately understand client environments,
you need a software agent that can perform document
output assessment and monitor ongoing activity. Remote
device management and f leet management software
providers such as Print Audit, FMAudit, Netaphor, Software
Shelf, Equitrac, etc., have developed advanced device dis-
covery agents, data collection software, data repositories,
reporting analytics and access controls that can be deployed
by dealers to gain a critical understanding of a customer envi-
ronment. Traditionally, these software applications could be
licensed and hosted locally by dealers in order to maintain
total control of all customer information. This model caters
to the sensitive nature of customer information and concerns
with client retention. However, it is a legacy model that
enables higher data protection with increased management
costs, higher maintenance costs and increased complexity.
The future of remote device and fleet management soft-
ware licensing is in an ASP (Application Service Provider)
model. In many ways, the new model is merely an evolution of
existing processes similar to the move from selling hardware
to services. In today’s age of outsourcing in order to reduce
costs, software as a service has proven itself in many other
data-sensitive functions, such as customer relationship man-
agement (CRM) and accounting.
The hardware and IT management required for a locally
hosted solution dramatically increases the maintenance and
troubleshooting costs and delays and/or complicates the
process of getting the latest data and
software updates. New offerings such as
Facilities Manager from Print Audit use
a zero footprint installation model ,
allowing dealers to deploy scanning
remotely without expensive investments
in hardware that need to be constantly
updated and maintained. Software and
data updates are made in real time and
received immediately by the dealer
deploying the services, ensuring that the latest features and
models are available to the dealer as soon as they are pub-
licly available. More importantly, the overall costs are lower
as there are no up-front hardware investments. Licensing
fees are often lower due to cost savings for the service
provider. In an ever-increasing competitive pricing environ-
ment, every cent saved helps provide either additional
margin or pricing flexibility.
One key concern that has been voiced for quite some time
regarding ASP models is data integrity and security. Securing
client data is no longer optional for service providers. Compa-
nies like Salesforce.com have proven that the most sensitive
customer information (sales leads, status, proposals, con-
tracts and communication) can be stored online by a third
party without fear of loss or distribution. Software providers
know they must provide 100 percent secure data services or
face customer defection. The net benefit is positive for both
parties, offering reduced costs and improved ease of software
distribution for software providers and lowered licensing
costs and faster updates for dealers.
Once you have gained a clear understanding of your
client’s environment, you can chart your course by identi-
fying troubled waters. The investment of integrating your
software, expertise and time with your client’s environment
will result in the value add necessary to secure your business
during difficult times. The goals of each customer will be dif-
ferent, but in order for you to really help them, you must
move beyond a casual sales relationship and become a con-
sultant. Only then will you embed yourself into your client’s
business process, securing your relationship and providing a
lifeline in difficult times. �Jake G. Wang is responsible for research and
program development in the areas of usage of
imaging and output devices, including printers
and copier/MFPs at market research firm IDC.
He can be reached at [email protected].
Visit www.idc.com
In order to accuratelyunderstand client environments, you need a software agent that can perform documentoutput assessment andmonitor ongoing activity.
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Wang Sept 08:Wang Sept 08 8/29/08 10:11 AM Page 11
20 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8
by: Ben Russert, ProSource
The Software ArenaChoosing & providing the right solutions
While the role of the copier/MFP dealer has
evolved into a more comprehensive and cus-
tomer-focused document solutions
provider, so, too, has the need for technical
expertise and support beyond the box sales of
printers and copier/MFPs. The shift to new serv-
ices includes adopting and understanding new
technologies, including software that integrates
and automates document management.
Dealers today are faced with an over-
whelming array of electronic document man-
agement software options and suppliers. The
recommended approach is to judiciously select
a handful of software partners and assume a
level of expertise with their products.
As an industry leader in integrated document
technologies serving southwest Ohio, northern
Kentucky and eastern Indiana businesses for two
decades, ProSource has thoroughly explored the
software arena. In our efforts to be absolutely
committed to customer success, ProSource has
invested in building the software expertise needed to evaluate
and fulfill most clients’ document solutions needs.
Trusted PartnersProSource has chosen partnerships with software
vendors Captaris, Objectif Lune, Equitrac and Prism Soft-
ware. We have followed our own specific process in arriving
at this mix of document solutions, beginning with an assess-
ment of our customers, the local market and competition.
With a detailed survey, ProSource reviews software sup-
pliers (and our clients’ needs) in terms of brand awareness,
market share of products, channel programs and support.
To meet ProSource standards and deliver on our promise
of the TotalPro Experience, products must be feature-rich
and possess mindshare in the market space, as well as a
channel program that supports the dealer and
customers. An important vendor requirement is
support after the sale.
The Key to ImplementationOnce the software is chosen, then the battery of
technical training sessions necessary to help
ProSource engineers become experts with the new
products begins. ProSource also recommends
that the sales representatives and software sales
engineers become Certified Document Imaging
Architects and/or receive other high-level certifi-
cations to enable better product implementation.
Such supplemental training will assist engineers
in grasping the business process and workflow
unique to document and content management.
Additionally, this facilitates a transition to the “con-
sulting” space.
Implementing these software products for the cus-
tomer first requires sales representatives to seek out
and uncover opportunities. ProSource solutions consult-
ants then work with the sales representatives and customers to
architect, scope and help sell the solution. In the case of
ProSource, this creates the advantage of allowing 35 sales repre-
sentatives to look for solutions opportunities, rather than just a
handful of employees dedicated to document management.
Making it Work in TotalPro StyleGone are the days when the sales representatives tallied
monthly sales numbers solely based on how many machines
they sold. Now they must account for solution sales in their
monthly sales forecasts as well. The ProSource model sets
not only individual machine targets, but also solutions
targets for each sales representative. Commissions are then
based on attainment of those targets. Plus, they receive all
commission for the sale of any solutions deal.
Russert Sept 08:Russert Sept 08 8/29/08 10:29 AM Page 10
The software selection process has
proven beneficial for ProSource, as solu-
tion software has become a crucial
element in our TotalPro Experience
program and in our overall growth plan.
These services comprise optimal solu-
tions tailored to client needs that equally
leverage both hardware and software
solutions and are backed by dynamic
ProSource support teams and a 100-
percent customer satisfaction guarantee. This new sales
model has demonstrated to our customers that ProSource is
able to provide a single source for their document needs. It
has also proven to be a very good business decision.
In the past, machine sales gave ProSource just a portion of
our customers’ business, but in order to go “deep and wide”
and to be the preferred single-source document solutions
provider to our customers, ProSource has had to make this
migration to the complete document management model.
Every dollar gained in solution sales typi-
cally results in ten times that amount in
machine sales.
Document software solutions must be
included in every business discussion
going forward, because if we are not cur-
rently talking to our customers about
how we can fulfill their needs in that
arena, then our competitor probably is.
ProSource has experienced steady busi-
ness growth and the consistent receipt of prestigious
industry awards as evidence that our methodical software
selection and sales process is a sound success. �Ben Russert is president and owner of
ProSource. Founded in 1985, the dealership
has offices in Cincinnati and Dayton, Ohio.
He can be reached at
Visit www.totalprosource.com.
This new sales modelhas demonstrated to our customers thatProSource is able to provide a singlesource for their document needs.
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Russert Sept 08:Russert Sept 08 8/29/08 10:29 AM Page 11
Agreements to restrict the disclosure of
certain types of information — often called
confidential disclosure agreements (CDAs)
or non-disclosure agreements (NDAs) — have
become common in business. Even before compa-
nies begin discussing opportunities to enter into a
business relationship, they generally execute some
form of confidentiality agreement. However, confi-
dentiality agreements often do not receive the attention they
deserve. As a result, state and federal courts in the United States
have been busy finding reasons not to enforce or to limit the
enforcement of many such agreements.
Because NDAs tend to be viewed as boilerplate documents,
many businesses simply find a generic agreement and stick with
it, regardless of the particular circumstances. Form agreements
may not be well drafted, which only serves to exacerbate the
enforceability issue. There are countless factors that should be
considered in preparing a confidentiality agreement to address
the variables that exist in any business situation. However, busi-
ness owners can start by focusing on several key questions.
� What information is to be protected? Defining the
information to be protected is fundamental to a well-crafted
NDA and an area where many form agreements fall short. For
example, some agreements specify a laundry list of informa-
tion, regardless of whether such information is actually confi-
dential (e.g. patents and trademarks are often included, but
neither can be confidential). Other NDAs may simply include
language specifying “information that is confidential and pro-
prietary to the disclosing party,” which creates ambiguity in the
interpretation of what is truly intended to be covered by the
agreement. The latter approach could require that the informa-
tion meet the definition of a trade secret, which might not be
the case for the type of information disclosed and, therefore,
could render the confidentiality agreement useless. By con-
trast, careful consideration of how confidential information is
defined can go a long way toward improving enforceability.
� Who is allowed access to the information? Many generic
confidentiality agreements simply restrict disclosure to third
parties. Some even allow disclosure to advisors and consultants
who are assisting with the transaction. These limited restrictions
may do little to protect a business in certain situations and may
create an exception to what information is to be
kept in confidence under the agreement. There-
fore, it is important to consider the practical and
legal consequences of all restrictive clauses.
Should the recipient of the information be able
to disclose to all employees of the company or just
those directly involved in the transaction at hand?
What about a third-party consultant? It may be
easier to limit unauthorized disclosure when fewer people have
access to the information. Third-party consultants, for example,
may not have an obligation of confidentiality to the disclosing
party just because of their relationship with the recipient of the
information. In fact, disclosure to third parties without an obli-
gation of confidentiality may place the information in the public
domain, thus rendering the confidentiality agreement unen-
forceable. Many agreements specifically set forth the names of
the individuals who may view the information.
� How long is the information to be kept in confidence?
Businesses often overlook the term of a confidentiality agree-
ment, but many courts focus on that detail in determining
enforceability. A number of jurisdictions view agreements
without a term limit as terminable at any time or terminable
within a reasonable period of time based on the circumstances.
Because neither of these results may be desirable, business
owners should carefully consider what term would be reason-
able for the type of information being disclosed. For example,
certain business data may only have a useful life of a year or two,
while the formula for manufacturing a product may qualify as a
trade secret and be protectible until such information is no
longer considered a trade secret. While there is no single right
answer for every type of information, setting appropriate term
limits may equate to greater enforceability.
These questions only scratch the surface of the many issues
that business owners should consider when crafting an effec-
tive and enforceable confidentiality agreement. If you are in
need of an NDA, BTA members can obtain a
template from which your specific require-
ments can be included. �Robert C. Goldberg is general counsel for the
Business Technology Association. He can be
reached at [email protected].
by: Robert C. Goldberg, General Counsel for the Business Technology Association
COURTS & CAPITOLS
Non-Disclosure AgreementsWill they protect your confidential information?
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22OT0908:22OT0908 8/29/08 10:41 AM Page 26
EDUCATION CALENDAR
w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8 | 2 3
October23 “The Integrated Advertising Platform”
Free to BTA members, the October “Building My Business” webinar, “The Integrated Adver-tising Platform,” will be presented by Wes Phillips and Ian Crockett of Orange Label Art +Advertising. This webinar will share a unique approach to developing your dealership’s coremarketing message and how to create an easy-to-administer integrated advertising platform.
23-24 BTA Sales Management Workshop Waynesville, NCTaught by Tom Callinan and David Ramos of Strategy Development, this workshop will providedealership principals and sales managers at all levels a framework and tools so they can developtheir sales employees and drive new business and more “share of wallet” in current accounts.Registrants will receive free Oct. 24-25 BTA Southeast District event General Registration.
24-25 “Fall Colors Conference” Waynesville, NCHeld in scenic Waynesville, N.C., the annual BTA Southeast “Fall Colors Conference” isdesigned for office technology dealership principals, managers and sales reps who are lookingto further strengthen their dealerships. An opening reception will be held Friday evening. Sat-urday morning, three education sessions will be held. Attendees will also have the opportunityto attend an optional informal luncheon on Saturday featuring BTA President Ronelle Ingram.Saturday afternoon, attendees are welcome to enjoy the sights of the beautiful Waynesvillearea before attending a cocktail reception and dinner. To register, visit www.btasoutheast.org.
November 11 “A Business Model for Professional Services”
Free to BTA members, the November “Building My Business” webinar, “A Business Model forProfessional Services,” will be presented by Mitch Morgan of CEO Focus. This webinar willaddress the many questions dealers are asking about professional services and Morgan willdiscuss the eight critical factors for professional services success.
19-20 BTA ProFinance Las Vegas, NVBTA ProFinance instructors John Hanson and John Hey of Strategic Business Associates willhelp you understand the strategies required to become more client and employee focused —key strategies toward successfully growing your company, improving profitability and winningagainst the competition. ProFinance is designed for dealership owners and executive-levelstaff members who make the critical business decisions that impact their companies’ success.
For additional information or to register for courses or events, visit www.bta.org or call (800) 843-5059.
Calendar Page 2008:23OT0907 8/29/08 2:04 PM Page 25
MEMBERSHIP APPLICATION
PART IV – INVESTMENT Select one: � Payment Enclosed (Make check payable to Business Technology Association)
� MasterCard � Visa � American Express Annual BTA Dues: $
Card Number: Exp. Date: Card Holder’s Name:
I hereby apply for membership in Business Technology Association:
Signature: Date:
Return to: Business Technology Association, 12411 Wornall Road, Kansas City, MO 64145Phone: (800) 505-2821 � Fax: (816) 941-4838 � E-mail: [email protected] � Join online at www.bta.org
Membership dues must be submitted in U.S. funds. Dues paid to BTA do not qualify as a charitable tax deduction. Dues do qualify as a business expense.
Equipment/Products:� Audio/Video Presentation Equipment� Bar Coding Equipment� Binding Equipment/Supplies� Cash Registers/Points of Sale� Check Writing/Protection Equipment� Computers/Accessories/Supplies� Copiers (MFPs), B&W
Accessories/Parts/Supplies� Copiers (MFPs), Color
Accessories/Parts/Supplies� Duplicating Equipment/Parts/Supplies� Facsimile Equipment/Parts/Supplies� Filing Systems/Electronic Organizers� Furniture� Identification Systems/Labeling
Equipment
� Mailing/Shipping Equipment/Supplies� Networking Products/Services� OCR Scanners� Office Supplies� Paper Handling Equipment� Phone Answering Equipment� Power Protection� Printers, B&W
Accessories/Supplies� Printers, Color
Accessories/Supplies� Recycled/Remanufactured
Equipment/Supplies� Security Equipment/Systems� Shredders� Software Development/Sales/Support� Time Recording Equipment
� Typewriters/Accessories/Supplies� Other:
Services:� Circuit Board Repair� Consulting� Equipment Rental� Financing/Leasing� Insurance� Internet Solutions� Publishing� Service/Repair� Training/Education� Other:
PART III – MEMBERSHIP Categories and Classifications
PART II – PRODUCT INFORMATION Please indicate the products you sell or the services you provide (check all that apply):
PART I – COMPANY INFORMATIONCompany Name:Street Address: PO Box:City: State/Province: ZIP/Postal Code: Country:Phone: ( ) Fax: ( ) Web Address:Occasionally, BTA makes its member list available to companies who wish to present opportunities to our members.Can BTA include your e-mail address in the online BTA Membership Directory? � Yes � No
No. of locations (include parent): No. of employees (include owners):
Year business was established: Annual revenue: $
Contact Names:Principal Contact: Title: E-mail Address:Sales Contact: Title: E-mail Address:Service Contact: Title: E-mail Address:
Heard about BTA from/Referred by (name & company): Suppliers and vendors to BTA members may communicate with member dealers, indicating membership in and support of the association. Suppliers and vendors are prohibited from indi-cating or suggesting that BTA approves, supports, endorses or encourages its members to use the products or services being promoted or endorses the supplier or vendor of the product.
24 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8
Retail Dealer Memberships:
� $430 1-10 Locations (1 year)
� $795 1-10 Locations (2 years)
� $885 11+ Locations (1 year)
Vendor Associate Memberships
� $1,500 Annual Sales up to $5 million
� $2,000 Annual Sales $5-$10 million
� $2,500 Annual Sales over $10 million
Service Associate Memberships
� $500 Annual Sales up to $1 million
� $750 Annual Sales $1-$5 million
� $950 Annual Sales over $5 million
Publications Associate Membership: � $150Dealers savewith two-yearmembership!
OEM Authorizations:
Member App 2008:Member App 2008 9/2/08 1:29 PM Page 25
BTA HIGHLIGHTS
w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8 | 25
The following new members joined BTA during themonth of July:
Dealer MembersDirect Office Solutions, Tempe, AZ
Image One Corp., Oak Park, MI
Insight Systems Exchange, Garden Grove, CA
Metro Sales Inc., Minneapolis, MN
One Stop Business Centers Inc., Burlington, MA
Star Graphics Inc., Beaumont, TX
Service Associate MembersSoundview Business Solutions Inc., Northport, NY
For full contact information of these new members,visit www.bta.org and click on “BTA HotlineOnline” on the home page before Nov. 1.
BTA ProFinanceBTA’s ProFinance in-
structors, John Hey and John Hanson of StrategicBusiness Associates, will teach you the financialterms and relationships that helped them makethe decisions that grew D.C. Hey Co. from a $5million to a $150 million business. In addition tohelping you implement the Hanson/Hey Modelin your company, they will help you understandthe strategies required to become more clientand employee focused — key strategies towardsuccessfully growing your company, improvingprofitability and winning against the competition.
ProFinance is designed for owners andexecutive-level staff who make the critical busi-ness decisions that impact your company's suc-cess. To date there have been 422 BTA mem-bers who have attended ProFinance. To register,visit www.bta.org and click on “Education &Certification” and then “ProFinance.”
For the benefit of its dealer members, eachmonth, BTA profiles two of its Vendor or ServiceAssociate members in this space.
BTA Vendor Associate mem -ber Computhink provides best-in-class ECM/document management solutions for secureinformation sharing and compliance, targetingsmall- and medium-sized organizations. TheViewWise Product line includes e-mail archivingsolutions for Microsoft Exchange and NovellGroupWise. Founded in 1994, Computhink hasthousands of worldwide customers in govern-ment, financial services, education, healthcare,manufacturing and utility organizations. Formore information on Computhink and its prod-ucts, go to www.computhink.com.
www.computhink.com
BTA Service Associate mem-ber Pyramid Screening Tech-nology Inc. can provide a pipe-
line of qualified and well-screened applicantsbased on a dealership's specific criteria. Thefirm accomplishes this by using its proprietarysearch technology to mine the Internet for bothpassive and active applicants. It mines network-ing sites, search engines, user groups, forums,job board databanks (including postings to mul-tiple job boards, such as Monster.com) and itsproprietary national database of sales reps andservice techs used exclusively for PyramidST cus-tomers. Applicants who emerge through themining process complete an online question-naire, which screens them in order to fit thedealership's criteria.
www.pyramidst.com
A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.
Member Page 2008:Member Page 2008 8/29/08 12:43 PM Page 25
Do you wish you could get better consistency from your
sales team members? Do you think they could work
harder or smarter? Are their actual sales often well
below their forecasts? If you have answered “yes” to any or all
of these questions, you are not alone. So, how do you correct
these issues?
One of the basic principles of the Hubbard Management
System states: “Look, Don’t Listen.” Too often, dealer owners
and sales managers do not take the time to meet with sales
representatives to really “see” what they are doing. They simply
listen to what the reps “say” they are doing. As a result, the
reps do not get the coaching they need to improve or the
direction they need to make the most of their time. The best
strategy for truly looking at what your sales reps are doing is to
have a weekly one-on-one meeting with each rep. This article
is dedicated to outlining a plan for these one-on-one meetings.
The purpose for conducting a one-on-one meeting with
each rep every week is to get an understanding of what he (or
she) is doing, allow for coaching and direction, review his
pending business, build strategies for closing deals and plan
out the coming week. The sales rep should come to the
meeting prepared to discuss his activities from the past week,
his full pipeline of business and his plans for the coming week.
Review of Last Week’s ActivityThe first reason for tracking and reviewing activity is to
make sure that the rep is doing a viable amount of sales
activity. Too often, sales reps do not have enough activity to
survive. If they are not getting in front of enough prospects
and customers, then they will never succeed, no matter how
good they are. There is a make-or-break point here.
The second reason for tracking and reviewing activity is to
use the results to redirect the sales rep’s attention and activi-
ties to produce more success. For example, if a sales rep gets
poor results from telephone cold calls but tremendous results
from in-person cold calls, you should be able to document and
illustrate this from his reports. Once it is understood, you can
direct him to increase his in-person cold-calling and/or get
him additional telephone training to improve his telephone
success rate.
� Review weekly activity report — The rep should bring a
report with him showing his activities for the past week. This
report should show the quantity of types of activity. The initial
goal is to have each rep meeting or exceeding his activity
quotas and documenting all activities.
� Review the report for accuracy — The sales manager
should go through the activity report and verify its accuracy by
spot-checking it against the rep’s calendar. If the report and
calendar do not match, you need to figure out why. Is the rep
simply forgetting to put all activities on the calendar? Is he fal-
sifying the report? Are there database sync problems? Once
the inconsistency is diagnosed, it can be handled.
� Analyze the activity and coach the rep — Simply
reviewing the rep’s activity is not enough. The sales manager
should be analyzing the activity to see if the rep is getting a good
One on OneA weekly meeting with each rep is important
by: Jim Kahrs, Prosperity Plus Management Consulting Inc.
SELLING SOLUTIONS
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Kahrs Sept 08:Kahrs Sept 08 8/29/08 2:12 PM Page 26
balance of activity and if his ratios of
activity are acceptable. For example, if the
team averages one appointment for every
20 telemarketing calls and one rep needs
40 calls to get an appointment, the ratio is
out of whack. The sales manager needs to
dig in and find out why the rep is so far
behind the others and provide coaching
and training to improve. This holds true
for all activities.
� Look for overdue and undone items on the calendar
— One area where reps often struggle is keeping up with calls
on their calendars. When reps schedule calls for themselves in
the future, they often do not make the time to complete them.
This can lead to a large backlog of incomplete calls. If a rep is
falling into this habit, the sales manager must pull them out.
Once a backlog of calls starts, it is very difficult to dig out of it.
There can be some great prospects buried in the backlogged
calls that are being missed. If this happens, you have lost the
true benefit of the CRM software.
Review of the Weekly Sales Recap & Battle Plan� Review the rep’s written business month to date —
The first step of this section of the meeting is to have the rep
review the business he has written and turned in already that
month. This is important, as it can really set the stage for the
rest of the meeting and the rest of the month.
� Review the rep’s “Take it to the Bank” forecast — In
this section of the meeting, the sales manager is looking for
the sales rep to give a forecast that can be banked on coming
in before the end of the month. This forces the rep to focus on
the key deals that are closeable now. When the rep enters a
number for a “Take it to the Bank” forecast, the sales manager
must go through each deal that is included and strategize with
the rep.
� Review each of the pending key deals — This section of
the form asks the rep to list each of his key deals that are
pending. Everything from the “Take it to the Bank” forecast
should be here. There can also be other key deals listed. The
purpose of reviewing these is to gauge where the rep is with
each deal, offer coaching for closing the deals and to schedule
other needed resources, like sales manager or owner visits
with these accounts. The sales manager needs to review and
be comfortable with the next step for each key deal pending.
� Review and add to the battle plan — In this section of
the meeting, the sales manager and sales rep should outline the
major actions that need to take place in the coming week. The
manager should also go back to last week’s recap and make sure
that the battle plan items were completed.
� Review the rep’s full forecast —
After reviewing the key deals and setting
up the basic battle plan for the week, the
sales manager should briefly review the
rep’s full forecast. To do this, the manager
simply goes through the forecast and asks
questions about the deals listed to find out
where things stand and to see if any help is
needed. The sales manager can often find
deals in the forecast that can be brought to the forefront and
closed quickly.
Review the Rep’s Plan for the Coming Week� Review the rep’s appointments for the coming week
— The sales manager should look at the appointments for the
coming week. This will allow for a discussion and planning for
each. This review also allows the manager to determine if
other people may be needed for any of the appointments.
� Review the rep’s prospecting plans for the coming
week — Reps will very often go into prospecting without a
well-thought-out plan. If the rep plans to do in-person cold-
calling, find out where. Do not accept vague answers like a
town name. Ask for specifics — what street, what industrial
park, etc. If the rep has plans for telemarketing, make sure he
has a planned call list.
� Find out if the rep needs help with anything — Before
concluding the meeting, the sales manager should ask the rep
if there is anything else he needs help with. It is pretty
common for reps to want help but not ask for it. By asking, you
can get him to share his needs and frustrations, allowing you
to deal with them.
If you commit to doing these meetings every week, you will
quickly understand what is being done in the sales department
and what needs to be done. You will have a clear understanding
of the true strengths and weaknesses of each rep and you will
have a much better handle on what business will be coming in
and be able to get the best resources in action for each deal.
Chances are your sales department will never be the same
again. If you have questions on this plan, feel free to call or e-
mail me at the address below. Good luck and good selling. �Jim Kahrs is the founder and president of Prosperity Plus
Management Consulting Inc. PPMC works
with office technology companies in
building revenue and profitability. Kahrs can
be reached at [email protected]
or (631) 382-7762.
Visit www.prosperityplus.com.
If you commit to doingthese meetings everyweek, you will quicklyunderstand what isbeing done in the salesdepartment and whatneeds to be done.
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Kahrs Sept 08:Kahrs Sept 08 9/2/08 1:30 PM Page 27
In last month’s article, I noted that there
are four key areas that, when taken
together, give you a conceptual frame-
work to assess your key account opportuni-
ties. In the August issue, I addressed two
areas — business needs and buying
processes, and buying profile factors. In this
article, we will look at competitive factors
and the investment decision, along with the
critical questions you need to answer.
Competitive Assessment CriteriaIn the competitive assessment, we look at your competitors,
their account positions and how they will influence your com-
petitive strategy.
There are four competitor factors: competitor relationship,
competitor product satisfaction, competitor advocates and
competitor presence.
In the competitor relationship, we must assess the strength
of the customer’s relationship with our competitors. Factors
include: the length of the relationship, the competitor’s under-
standing of the customer’s needs and personal relationships.
You can rate these factors as being weak, moderate or
strong. A weak relationship means there are no strong contact
advocates and the customer does not hold the relationship in
high regard. A moderate relationship means there is a good
relationship in place with some strong contacts. A strong
rating means the relationship is highly valued, there is a history
of long-term successes and strong contacts are in place.
In competitive selling, you must focus on two key areas and
answer the following questions: What is your strategy to
create competitive advantage in the mind of the customer?
And, can you accurately anticipate and counter the com-
petitor’s response to your sales efforts?
The competitor product satisfaction factor is the opposite
side of the coin from the competitor relationship. Here you
assess the strength of the customer’s satisfaction with your
competitor’s products and services. The questions you need to
answer are: Has the customer achieved the results they were
planning on? Are there problems and issues? Does the compe-
tition have the capacity to meet the customer’s current and
future needs?
In the August issue, I discussed the
advantage of having a power advocate
(PA). It is helpful, but not necessarily a
requirement for success. But what if there
was a competitive power advocate (CPA)
in place? That is, a power advocate who is
actively working for the competition. A
critical measure of potential success is the
presence (or not) of a power advocate for a
competitor. Lack of one indicates an opportunity to develop
an advantage with your own PA. A CPA requires strategies to
turn or neutralize the CPA advantage.
Here are two questions that you need to answer: Can you
develop your own PA at a higher level than your competitor?
Or, can you develop a PA on the same level as the CPA that will
neutralize the advantage?
When we address competitor presence, we are assessing
how active the competition is in your account as an indicator
of your potential to win quickly with reasonable resources
expended. Is the competition inactive? Are they actively com-
peting for the account? Or, is the competition aggressively
pursuing the business and determined to win?
Warning: While lack of competitive presence may seem like
a “golden opportunity,” consider this to be a potential warning
sign of an unqualified opportunity or one in which the supplier
has already been decided.
The Investment DecisionOur fourth assessment area is the investment assessment.
That is, can you win? There are two criteria you need to
address: time and resources. Do the time and resources neces-
sary to successfully close this opportunity represent a viable
investment of time, money, personnel or company resources?
You should look at this situation from the perspective of a “yes,”
“unsure” or “no” answer. If the response is “yes,” then it is a worth-
while investment. If you are “unsure” at this time, then you need
to go back and look at the criteria again to see where you can
shore up your position and improve your potential for success. If
your answer is “no,” then you should move on and pursue other
opportunities that offer you a higher probability of winning.
Key Account OpportunitiesLook at competitive factors & the investment decision
by: Tom Kramer, CATALYST Performance Learning
w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8 | 29
SELLING SOLUTIONS
When we address competitor presence, we are assessing howactive the competition is in your account as an indicator of your potential to win quickly ...
Kramer Sept 08:Kramer Sept 08 8/29/08 2:24 PM Page 26
The Assessment Criteria ReviewHere is a brief review of the key account
assessment criteria that I have covered:
� Business Needs & Buying Processes
— Why and how customers buy
a. Stated and unstated needs
b. Business goals and issues
c. The decision process
� Buying Profile Factors — The cus-
tomer’s company and how it operates
a. Corporate motive
b. Capacity for change
c. Relationship
d. Satisfaction capacity
e. Power advocate
f. Value perception
� Competitive Assessment Criteria — the competitor’s
position
a. Competitor relationship
b. Degree of product satisfaction
c. Presence or absence of a competitor power advocate
d. Competitor presence
� The Investment Decision — the “go/no go” decision
a. Yes
b. Unsure
c. No
Self-CoachingIn this month’s and August’s article, I presented critical
selling, planning and account knowledge criteria necessary
for success in major accounts, along with
the critical questions you need to answer
before you invest your time and effort.
Finally, here are five self-assessment ques-
tions you should ask yourself: Which cri-
teria do you give yourself a high rating on?
How can you maximize your strengths to
create more sales or greater competitive
leverage? Which low-scoring items do you
think are most critical and what is your
improvement strategy? Do you think your strengths and
weaknesses apply to all or the majority of your accounts?
Why? What is your strategy for gathering the customer and
competitive information you need to be successful?
Managing key account business requires different selling skills
and more comprehensive strategies. Successful sales representa-
tives employ a 360-degree approach to assess their chances of
success and develop strategies that outthink and outmaneuver
their competitors. Following this conceptual framework will help
you develop winning account strategies, address your weaknesses
before they become irreversible problems and help you focus
your time, effort and resources on high-gain opportunities. �Tom Kramer is an affiliate partner of CATALYST
Performance Learning ( formerly Strategy Mapping Selling).
He has more than 30 years of sales, sales
management and marketing experience with
IBM, Eastman Kodak Co. and Canon U.S.A. Inc.
He can be reached at
Visit www.catalyst2performance.com.
30 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8
Successful sales representatives employa 360-degree approachto assess their chancesof success and developstrategies that outthink... their competitors.
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Kramer Sept 08:Kramer Sept 08 8/29/08 2:24 PM Page 27
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