january 2008 office technology

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Company Culture Change

Is it time to internally

reinvent your company?by Layton GetsingerDOTS Inc.Those dealerships that have made

the transformation from the “box”

mentality have done so through an internal reinven-

tion of their existing business model while abandoning

or modifying their existing company culture.

Your Real Profit Center

Learn to attain & maintain

high service marginsby Jerry NewberryBEI ProsI am asked many times how indus-

try changes are affecting service margins in the

office equipment business model. I would answer

with two words: “They aren’t.” Are there different

challenges to deal with? Yes.

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 | J a n u a r y 2 0 0 8

CONTENTS

The Green Office

Sharing the

eco-friendly messageby Brent HoskinsOffice Technology MagazineWhile the Energy Star logo has be-

come familiar, some dealers may

wonder what other ecologically

friendly initiatives their vendors have pursued. Here is a

brief look at some of the efforts of four vendors.

D E P A R T M E N T S

Volume 14 � No. 7

18

10

22

F E A T U R E A R T I C L E S

Transforming the Office

Focus on the MFP’s full

range of benefitsby Gary GillamXerox Corp.Today’s office is in the midst of a new

technical evolution. As competitive

and economic pressures continue to

increase, the need and demand for robust information

workflow has never been more critical.

JBMIA Update

Association president

reports on activities & plansby Yoshihiro MaedaJBMIAHere is a look at some of the current

initiatives of the Japan Business Machine and Infor-

mation System Industries Association submitted by

its president, who also serves as president and CEO

of Toshiba TEC Corp.

28

S E R V I C E C O N N E C T I O N S

P R I N C I P A L I S S U E S

26

6

8

30

32

Executive Director’s Page

BTA President’s Message

Advertiser Index

BTA Calendar

29 Who Are They Calling On?

Ensure that your sales

reps are not wasting timeby Max RosenthalDiversified Business SolutionsAt a recent sales manager executive

training meeting, I asked the question, “Are your

reps calling on the executive level decision maker?”

The hands shot up. I then rhetorically asked, “Who

do you think you are fooling?”

S E L L I N G S O L U T I O N S

A Perpetual Breach — ECI2

Do not blindly negotiate

a resolution, call BTAby Robert C. GoldbergBTA General CounselThose BTA members who have been frustrated with

the ECI2 acquisition of OMD and La Crosse should call

the BTA Legal Hotline for guidance. Discuss the fea-

tures you desire and the monthly increase and yearly

cap that are acceptable. Then consider your options.

C O U R T S & C A P I T O L S

24

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EXECUTIVE DIRECTOR’S PAGE

In the past, I would

occasionally hear

about the efforts of

organizations like the

Sierra Club and Green-

peace. Today, efforts to

help the environment

are a frequent topic of

discussion in the news and otherwise. A

Google search on “global warming,” for

example, provides 24.3 million links.

Last year, I.T. Strategies, a consulting,

research and business implementation serv-

ices firm, contacted me about assisting with

a survey of dealers to determine the “impact

of ‘green’ programs on the dealer commu-

nity.” BTA’s role was to send the survey to

those dealers on our e-mail distribution list,

which includes member dealerships.

The survey results are thought-provoking.

They reveal that there is a notable level of

interest among dealers in terms of helping

the environment. They also reveal that

dealers view ecologically friendly efforts as a

way to be better corporate citizens and as a

way to increase customer loyalty.

That interest in customer loyalty is

reflected in the results of a survey question

regarding the “impact of returns on the

dealer community.” Forty-six percent of

respondents to the question indicated that

eco-friendly efforts do/could provide a “pos-

itive impact.” Among the comments shared

by survey respondents:

� “Positive for consumers who believe in

recycling. More sales for the dealer.”

� “I think it is a good idea. There will be

some time involved, but it will be well spent.”

� “I believe it is a win-win for everyone.”

The survey further sought to identify

those customers most likely to contribute to

that positive impact. Specifically, the survey

asked: “Do you find a particular customer

group is more concerned about green issues

than others?” Thirty-five percent of the

respondents answered “yes.”

Who are the customers most concerned

about green issues? Survey respondents

listed the government, education and major

accounts among these customer groups.

The concerns of these customers and rea-

sons for going green, as noted by dealers,

include: keeping empty cartridges out of

landfills; corporate responsibility programs;

and, simply, saving the earth.

While the largest percentage of respon-

dents indicated a positive impact in regard to

eco-friendly efforts, 20 percent indicated a

“negative impact.” The remaining 34 percent

reported either “no impact” or “other.”

What are the possible negative impacts?

The comments shared by dealers reveal

some possibilities. Among them:

� Manufacturers may become rechargers.

� More service related problems with re-

cycled cartridges.

� Dealers will shoulder most of the cost.

The I.T. Strategies survey also asked

dealers to rate the vendors of the brands

they sell on a scale from “not at all green” to

“extremely green.” In addition, dealers were

asked what they see as the best opportunity

for their dealerships as the emphasis on

green continues. The full summary of the

survey results can be found on the BTA Web

site, www.bta.org. Click on “Research” then

“Other Industry Research.”

As you read the summar y of the I.T.

Strategies survey results (and the cover

story in this issue), consider this question:

“How eco-friendly is my dealership?”

— Brent Hoskins

How Eco-FriendlyIs Your Dealership? Executive Director/BTA

Editor/Office TechnologyBrent Hoskins

[email protected](816) 303-4040

Associate EditorElizabeth Marvel

[email protected](816) 303-4060

Contributing WritersLayton Getsinger, DOTS [email protected]

Gary Gillam, Xerox Corp.www.xerox.com

Robert C. Goldberg, General Counsel Business Technology Association

Yoshihiro Maeda, JBMIAwww.jbmia.or.jp

Jerry Newberry, BEI Proswww.beipros.com

Max Rosenthal, Diversified Business Solutionswww.dbsconnnected.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

[email protected]

Mary HopkinsAccounting [email protected]

©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.


®

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©2007 Toshiba America Business Solutions, Inc. Electronic Imaging Division. All rights reserved.

E I G H T W I N SI S N ’ T T H A T T H E K I N D O F T E A M Y O U ’ D L I K E T O B E O N ?

The people have spoken. And for the 8th time, Toshiba was voted #1 for Overall Performance by the BTA.

Maybe it’s because Toshiba offers more than just great copiers. We offer value-added solutions that make businesses more

productive and profitable. If you’d like to learn more about what’s made Toshiba America’s fastest growing copier

company or become part of our winning team, visit www.copiers.toshiba.com or call 949-462-6165.

Toshiba ad Dec 07 11/9/07 12:07 PM Page 1

BTA PRESIDENT’S MESSAGE

On Feb. 21-22,

the focal point

of th e of f ice

technolog y industr y

will be ITEX 2008 in Las

Vegas. As in past years,

this event is certain to

be an outstanding edu-

cation and networking opportunity for the

BTA Channel.

If you have not already registered for the

show, I encourage you to do so today. As a

BTA member, you can register for $79,

instead of the regular $199 onsite/$99 online

fee. Just enter BTA member discount code

G48BTA when you register online at

www.itexshow.com. You may also download

a BTA member registration form from the

home page of the BTA Web site, www.bta.org.

Still undecided on whether to attend?

Consider that ITEX 2008 will feature more

than 100 hours of education Power Hour

sessions in six education tracks — Business

Management, Sales and Marketing, Man-

aged Print Services, Document Manage-

ment: Capture & Workflow, Technology and

Service. The presenters will include a num-

ber of the industry’s leading experts, repre-

senting the dealer, vendor, research and

consulting communities.

Consider, too, that there will be 250-plus

vendors on the trade show floor — ranging

from ABBY USA Software House Inc. to

Zygoquest. These include a number of

familiar hardware vendors such as BTA

m emb ers Eastman Kodak, Hew lett-

Packard, Lexmark International, Muratec

America, Panasonic, Ricoh, Sharp and

Xerox. Other exhibiting vendors include

Fujitsu, Konica-Minolta, OKI Data and

Samsung. There will also be many software

vendors exhibiting, providing dealers with a

number of options to consider as they con-

tinue their transition from box sales to solu-

tion sales.

There are several notable additions to

th e I TE X show thi s year as wel l . For

example, the trade show floor will feature

one new pavilion and one central station —

one focused on wide format printing, the

other on ECM and mailing systems. These

should be of particular interest to any

dealers looking to expand their product

offerings.

Another new addition is the Service Solu-

tions Integrator 2008 training program,

scheduled for Feb. 20, the day before the

trade show floor opens. This full-day educa-

tion program is designed for service man-

agers and dealer principals. The program is

sponsored by MWA Intelligence Inc., Katun,

BEI Services and BEI Pros. For more details

on this event, visit www.itexshow.com/ssi.

Of course, BTA will be at ITEX 2008, too.

Plan to drop by the association’s exhibit

booth on the trade show floor. The booth

number is 745. There you will find all of the

latest information on the association’s

many benefit programs and services. We

will also be drawing for some great prizes.

In addition, BTA is finalizing plans for a

hospitality suite in the show hotel, the Las

Vegas Hilton. This will be an ideal opportu-

nity for BTA members to network with one

another and meet the members of the BTA

Board of Directors and key staff members.

Watch for details at www.bta.org prior to

the show; there will also be information on

the hospitality suite in our exhibit booth.

I look forward to seeing you in Las Vegas.

ITEX 2008 will be a great event for all of us.

— Shannon Oliver

Register for ITEX ‘08Using Member Code

®

2007-2008 Board of Directors

PresidentShannon Oliver

25 Wheaton CircleGreensboro, NC 27406

[email protected]

President-ElectRonelle Ingram

Steven Enterprises Inc.17952 Sky Park Circle

Ste. EIrvine, CA 92614

[email protected]

Vice PresidentBill James

WJS Enterprises Inc.3315 Ridgelake Drive

P.O. Box 6620Metairie, LA 70009

[email protected]

BTA EastThomas Chin

Accolade Technologies LLC31 Mamaroneck Ave.

Ste. 508White Plains, NY 10601

[email protected]

BTA Mid-AmericaMike Blake

Corporate Business Systems LLC2018 S. Stoughton Road

Madison, WI [email protected]

BTA SoutheastJerry Jackson

All South Copiers (ASC)1325 Cobb International Blvd.

Ste. AKennesaw, GA [email protected]

BTA WestRock Janecek

Burtronics Business Systems Inc.216 S. Arrowhead Ave.

P.O. Box 1170San Bernardino, CA [email protected]

Ex-Officio/General CounselRobert C. Goldberg

Schoenberg Finkle Newman & Rosenberg Ltd.222 S. Riverside Plaza

Ste. 2100Chicago, IL 60606

[email protected]


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by: Brent Hoskins, Office Technology Magazine

The Green OfficeSharing the eco-friendly message

In the mid-1990s, of f ice

technology dealers began

to see the use of the Energy

Star logo in relation to copiers,

printers and, later, MFPs. The

logo signifies compliance to a

U.S. Environmental Protection

Agency (EPA) program that is

designed to identify and pro-

mote energy-efficient products

that help to reduce greenhouse

gas emissions. Today, the logo

has become a familiar image

within the industr y and is

widely used among office tech-

nology manufacturers.

While the Energy Star pro-

gram is important and benefi-

cial, some dealers may wonder

what other ecologically friendly initiatives their vendors have

pursued. Are vendors — both on the hardware side and the

software side — doing enough to help sustain the environ-

ment? Which vendors are seen as doing the best job?

Consultants at I.T. Strategies (www.it-strategies.com) had

these and other questions as well. In the Spring of 2007, the

Hanover, Mass.-based firm, which offers consulting,

research and business implementation services, surveyed

office technology dealers to find out how they view their

vendor partners in terms of eco-friendly initiatives. The

results reveal some industry leaders — and room for

improvement.

Seventy-one percent of the respondents indicated that,

overall, they view the industry’s manufacturers as either

“somewhat green” or “not at all green.” In contrast, only 7

percent are viewed as “extremely green,” with 9 percent

viewed as “very green” and 13 percent viewed as “green.”

What makes a company

green? The survey results re-

port produced by I.T. Strategies

reveals several key factors.

Among them: A well articu-

lated message about the com-

pany’s position on green is-

sues; safe disposal instructions

for products; support of envi-

ronmental groups, such as The

Nature Conser vancy ; eco-

friendly packaging; and prod-

ucts that are En erg y Star

compliant.

With these and other green

factors in mind, survey res-

pondents were asked to rate

those vendors seen as the most

green. The top three vendors:

RISO, Xerox and Kyocera Mita.

Regardless of how green vendors are today, it appears that

there is a notable level of interest among end-users in eco-

friendly companies and their initiatives. Thirty-five percent

of dealers responding to the I.T. Strategies survey indicate

they do have “a particular customer group that is more con-

cerned about green issues than others.”

Chris Wyszkowski, vice president of professional sales

and marketing for Equitrac Corp. (www.equitrac.com), a

provider of print management and cost recovery solutions,

says the percentage of companies concerned about green

issues is on the rise. In recent months, he and Equitrac CEO

Michael Rich have been meeting with CIOs and CFOs of the

company’s largest customers. “I would say that in about one

third of these C-level meetings there has been a discussion

about the importance of a sustainability objective within the

firm,” he says. “It is a new trend in North America. Twelve

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months ago it would have

been unusual for somebody

to talk about their sustain-

ability goals.”

Given this increased in-

terest in eco-friendly busi-

ness practices among end-

users, what are office tech-

nology companies doing to

help sustain the environ-

ment? A brief look at some

of the initiatives of four

vendors familiar to dealers

will provide some indication. Perhaps their efforts will

inspire others to become more eco-friendly.

Equitrac Corp.In 2007, Equitrac announced its support for the joint

American Bar Association-EPA Law Office Climate Challenge,

an environmental initiative

that, in part, encourages law

offices to adopt best prac-

tices in office paper manage-

ment. The software company

supports the initiative by

offering a 10 percent dis-

count on Equitrac Profes-

sional 5 to any law firm that

participates in the Waste

Wise program, one of three

EPA partnership programs

tied to the Challenge.

“A big part of this program has to do with effective use of

paper and reducing waste of paper,” says Wyszkowski. “So,

we came up with a few specific ways that our software can

help these law firms reduce waste.”

For example, he says, Equitrac Professional 5 includes a

feature called Follow-You printing technology that can


“A big part of this program has to do witheffective use of paper andreducing waste of paper.So, we came up with afew specific ways that oursoftware can help theselaw firms reduce waste.”

— Chris WyszkowskiEquitrac Corp.

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“reduce waste by 10 to 15

percent that results from

unclaimed print jobs.” In-

stead , says Wyszkowski ,

“print jobs are never ren-

dered to paper until some-

one is actually there to col-

lect them.”

Equitrac also has devel-

oped an eco-friendly mes-

sage for another of its pri-

mary customer groups —

the education market. In

2005, the company launched a new Web site, www.endprint

waste.com, which emphasizes, in part, how Equitrac Express

4 can help educational institutions reduce paper waste. “We

launched this after having a realization that our products

were being sold where sustainability was the primary objec-

tive,” says Wyszkowski, who notes that the education market

is particularly receptive to

the eco-friendly message. “In

the educational environ-

ment, you have students and

faculty who have a higher

recognition of environ-

mental concerns than the

general population,” he says.

“So, the fact that you can

deploy a solution to manage

costs and get people to use

resources more effectively —

and feel good about it be-

cause they know that they are saving environmentally sensi-

tive resources — is an absolute win-win.”

Kyocera Mita AmericaAs noted, Kyocera Mita America (KMA, www.kyo

ceramita.com) was among the companies cited as “most green”

by respondents to the I.T. Strategies survey. This may be due,

in part, to KMA’s ECOSYS printers, an entire line dedicated to

and named for its focus on “ecology” and “economy.”

Peter Hendrick, vice president of marketing for KMA,

emphasizes the eco-friendly nature of the printer line. “Our

unique ECOSYS technology incorporates a patented drum

technology, which is separate from the toner container,

eliminating the need to replace the drum when the toner is

depleted, thus reducing landfill,” he explains. “We believe

that ECOSYS truly is a long-standing example of Kyocera

Mita Corp.’s green initiatives and our pursuit of innovative

product development.”

KMA also has a focus on pursuing eco-friendly efforts

within its internal operations. In 2007, the company

announced that it had received ISO (International Standard

Organization) 14001:2004 certification, which recognizes

companies — through an independent audit — that have

effectively managed their operational impact on the envi-

ronment. Hendrick says the certification “underscores

Kyocera Mita America’s commitment to reduce waste and

the consumption of energy/natural resources caused by

normal operations, such as sales, services and distribution.”

How have KMA’s operations helped the environment?

“We have reduced our electrical usage by 17 percent and our

paper usage by 39 percent, year over year,” says Hendrick.

“Those types of reductions have, in just one year, signifi-

cantly lowered our carbon and nitrogen oxide emissions

versus the previous year. In fact, these reductions equate to


“We have reduced ourelectrical usage by 17percent and our paperusage by 39 percent, yearover year. Those types ofreductions have ...significantly lowered ourcarbon and nitrogen oxide emissions ...”

— Peter HendrickKyocera Mita America

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more than 40,000 gallons of

gasoline, 9,000 tree seedings

grown for 10 years and three

acres of forest preserved

from deforestation.”

In addition, KMA strives

to publicly share its eco-

friendly message. For exam-

ple, the company’s current

62-page Sustainability Re-

port can be downloaded

from its Web site.

Memory Experts InternationalLike KMA, Memor y Experts International (MXI,

www.memor yexpertsinc.com) has received the ISO

14001:2004 certification. In addition, MXI, a manufacturer of

memory expansion modules, data storage systems, cable

assemblies and portable security devices, is a certified Zero

Waste to Landfill company.

“Simply put, Zero Waste to Landfill means that materials

we use in our manufacturing processes, including pack-

aging, are recycled and/or reused,” says David Fry, MXI exec-

utive vice president, USA. “We use a system known as the

Five Rs — reduce, refuse, return, reuse and recycle.”

Fry shares an example of the far-reaching benefits of

adherence to the Five Rs system. “We were seeing packaging

coming to us from one of our hard drive manufacturers that

we were finding difficult to recycle,” he explains. “So, we said

to them, ‘We can’t recycle this packaging. We don’t want it

anymore. Please don’t give it to us.’”

As a result, the supplier began picking up the packaging

from MXI after delivery of its hard drives. “They found some

cost saving benefits by meeting our requirements,” he says.

“They are now reusing the packaging over and over again,

not only with us, but with many of their customers.”

In recent years, Fry says the company has seen consider-

able savings due to its eco-friendly efforts at its Santa Ana,

Calif., manufacturing facilities. An evaluation of electricity

consumption, for example, led to improved energy usage,

reducing the cost of electricity by 30 percent. Similarly, by

recycling metal, plastics, bottles, cardboard, paper, etc., MXI

has reduced the number of filled waste containers (3-cubic-

yard dumpsters) from 36 to four each month.

The key to success in reducing waste is making it easy for

employees by using properly marked, error-proof recycling

containers, says Fry. “You simply tell them what you’re trying

to do, and you ask for their

help in getting it done,” he

says. “It isn’t that difficult.”

RISO Inc.Perhaps RISO Inc.’s (http:

//us.riso.com) ranking as the

“most green” company by

respondents to the I.T. Strate-

gies survey can be attributed

to the company’s long-term

focus on environmental stew-

ardship. In 1996, the digital

duplicator and printer manufacturer developed its Environ-

mental Charter. In 1998, it established the RISO Environmen-

tal Protection Principles. In 2000, RISO’s manufacturing plan

and R&D technology center received ISO 14001 certification.

“So, this is not a new idea for us; it is not a passing fad or

trend,” says David Murphy, vice president of marketing.

“This is a very, very major part of our corporate principles

and our feeling of responsibility to the global environment.”

For RISO, that responsibility is apparent in the develop-

ment of its products, says Murphy. “Our products have always

been geared to reducing the footprint [or negative impact] on

the environment,” he says. “For example, our duplicators

utilize soy-based ink and do not have any hazardous ozone

or CO2 emissions, and our supplies are biodegradable.”

In the past, adds Murphy, RISO did use oil-based inks.

“We decided to switch to soy because it is environmentally

friendly,” he says. “It actually costs about the same if not a

little bit more for us to produce soy-based ink, but we do it

because of our feeling of responsibility to the environment.”

Murphy also cites the low amount of energy that RISO’s

ink-based products require, as compared to toner-based

products that require heat. “As a result, they draw very little

electricity,” he says. “In fact, our duplicator draws 3.5 amps.

That’s the equivalent of using four 100-watt light bulbs

about an hour a day.”

Looking to the future, Murphy sees an ever-growing

interest in eco-friendly initiatives. “We are finding that the

new generation in the workforce is more conscientious about

helping the environment,” he says. “That is

good news for our society.” �

Brent Hoskins, executive director of the

Business Technology Association, is editor

of Office Technology magazine. He can be

reached at [email protected].

“Our products have always been geared toreducing the footprint [ornegative impact] on theenvironment. For example,our duplicators use soy-based ink and do not haveany hazardous ... emissions ...”

— David MurphyRISO Inc.


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by: Layton Getsinger, Dealer Operations Transition Specialists Inc.

Company Culture ChangeIs it time to internally reinvent your company?

The concept of networked docu-

ment solutions has been kicked

around for the past f ive-plus

years with very few dealerships success-

fully migrating from the “box” mentality

to networked solution sales. Those that

have made the transformation have

done so through an internal reinvention

of their existing business model while

willfully abandoning or significantly modifying their existing

company culture.

These same dealerships are also the ones that made the

successful transition from analog to standalone digital, to con-

nected digital, to color and to networked solutions. Sadly, but

unavoidably, a few trusted and tenured employees have been

victimized by the office technology revolution. Either they

could not grasp the new technology or they refused to leave

the simplicity and comfort zone of “box” selling. To reach new

heights, one must abandon old traditions. What was good

enough to get us here is not good enough to take us to the next

level. In fact, what got us here will not keep us here.

The workplace culture is shaped by the way we behave. It is

from the collective actions of the team that a culture emerges.

It reflects the accumulated traditions formed over the con-

tinuum. For some it becomes inviolable or a “sacred cow.”

Usually an established culture is readily identifiable. As more

people come to embrace it, the culture grows in popularity

and influence. Eventually our every action will be influenced

by our culture. Culture becomes our way of life. It defines our

essence. The only way to break the spell of a culture is an open

commitment and direct action to do so. Some may call it a

paradigm shift; I prefer to call it a cultural shift.

The office solutions arena is changing faster than most

cultures can adapt. As a by-product of change, a subculture

of fear will usually emerge. The failure to adapt is primarily

driven by this fear of change. Change strikes fear in the

hearts of all who are affected, as they are

leaving the known for the unknown. The

natural response to change is resistance,

and when change does happen, certain

individuals will employ slowed down

implementation in hopes that it will go

away. Today, employing such tactics posi-

tions us to become obsolete. Today,

change is not only critical to remaining

competitive, but to staying in business.

Based on the duration of the office technology revolution,

dealership culture shifts should have already taken place. If

we are to achieve tomorrow’s successes, we must be eagerly

embracing today’s changes. The dealer principal and direct

reports have to accept the role of “change agents.” If a dealer-

ship is to survive this technological revolution, two actions

are imperative: accept change as a constant and learn to

adapt to change as a matter of survival.

We can either be paralyzed by change or energized by its

potential. Change without a plan is a recipe for disaster.

Change should not occur out of panic — it must be the

result of well-conceived thoughts that will gain the desired

net effect. It must be communicated globally and frequently

so that everyone is dealing with real-time information

versus the rumor mill.

Rather than waste precious time and effort fighting

change, we need to employ actions to hasten its advent.

Those who embrace change and go with the flow will have

the competitive advantage. They will be selling profitably to

new and existing customers.

As is suggested in “Reengineering the Corporation” by Mike

Hammer and James Champy, “throwing the baby out with the

bathwater” is not an option. Change must take place under

controlled conditions. Company and vendor revenue targets

must be attained while migrating to a new business model.

This creates a conundrum for some dealers of how to keep

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moving product while reinventing them-

selves. One size does not fit all. Every deal-

ership has its own unique culture and that

culture must be clearly understood and

framed before change can be initiated. In

some cases, it may require the assistance

of a third-party professional to assist with

this process.

People commonly and mistakenly

respond to the stress of change by putting

out more effort. The greater the change (that is, the bigger the

adjustment that has to be made) the harder they try. Unfortu-

nately, they stick with the same old habits and they bet the

future on “more of the same.” Their heart is in the right place

and their intentions are good, but they fail to realize that

many solutions of the past do not fit the problems of today or

the future. Trying harder using the same old tools, techniques

and thinking patterns will only create a culture of despera-

tion. A truly great dealership is never satisfied with its current

performance. It must continually ask: “Why do we do what

we do?” and “Why do we do it the way we do?”

The challenges are myriad and usually centered on the

inability of the dealership to get traction in the relatively new

world of document solutions. Box selling is a one- or two-

person event with standard rules of engagement involving two

to three calls on the prospect and then “the close” based on a

monthly payment or price, which is usually steeply discounted

based on the competition stepping in at the last minute.

Solution selling is a team activity and requires the involve-

ment of nearly every department within the company to com-

petently and successfully conclude the sale. Hence we must

create a culture shift from “What is in it for me?” to “What is

in it for us?” We need a shift from a culture of independence

to a culture of interdependence. Done right and done well,

solution sales will create virtual competitive immunity and

provide handsome rewards across the company. Most impor-

tantly, solution sales will allow your dealership to go into the

competition’s base and sell profitably while minimizing or

eliminating the competition as a factor.

As the new culture sets in, values change from protective to

productive. Changing values are as important to a new busi-

ness model as changing processes. The new business model

demands employees deeply believe that they work for their

customers, not for their bosses. This will only happen when

the dealer principals and department managers believe it as

well. Culture change calls for resolute and absolute commit-

ment to success. It starts and stops with the dealer principal.

With a new business model (“culture

shift”), work becomes more satisfying

since the entire company is working

together for the common good. The new

business model entails as great a shift in

the company culture as in its structural

reconfiguration. The individual players

achieve a greater sense of achievement

through a collaborative approach to

solving customer problems.

There is the nagging question of “Will you lose a top pro-

ducer or valued employee by making necessary changes?”

The answer is probably “yes.” Any individual willing to

ransom a company’s future to remain in a comfort zone is

highly expendable in my personal experience and opinion.

One prima donna can sabotage the entire process. The

sooner the loss of such individual(s), the quicker progress

can be made.

Some Recommended Action Items� Create a “Change Coalition” led by the dealer principal

and departmental managers.

� Help managers stop acting like supervisors and start

acting like coaches and mentors.

� Everyone should focus more on the customers’ needs

and less on the bosses’ or their own.

� Get rid of unnecessary / non-productive practices.

� Reduce or eliminate disruptive people and unnecessary

paperwork.

� Establish communication links up, down and across

the company. This will marginalize the rumor mill.

� Involve everyone in the company in the change process.

� Employ all resources appropriately.

� Create and maintain a sense of urgency.

� Budget for change and do not stray.

� Get and remain focused.

�Only do things that move the company toward its goals.

� Keep emotions in check.

� Stay steadfast in your resolve. �Layton Getsinger is founder and president of

Dealer Operations Transition Specialists Inc.,

a company that specializes in helping

dealerships become successful networked

solution providers through the creation of new

business models and reshaping of the

company culture. He can be reached at

[email protected] or (704) 450-7778.

The challenges are myriad and usually centered on the inabilityof the dealership to get traction in the relatively new world of document solutions.


20OT0108 1/2/08 9:48 AM Page 1

DocuWare_OFFICETECH_BTA_fullpage_Swimming in Circles-Illus10.. 4/26/2007 10:45:36 AMDocuware June 07 5/15/07 4:30 PM Page 1


by: Gary Gillam, Xerox Corporation

Transforming the OfficeFocus on the MFP’s full range of benefits

Today’s office is in the midst of a new

technical evolution. As competitive

and economic pressures continue to

increase, the need and demand for robust

information workflow has never been more

critical. To maintain positive growth, not to

mention to gain competitive advantage,

more companies are exploiting new tech-

nologies in old places to streamline infor-

mation flow, simplify business processes,

improve productivity and lower costs.

Certainly, today’s MFP is such a piece of

technology. As those of us in the office technology industry

know, the MFP offers a world of new information sharing

possibilities and typically can be adapted to operate the way

a company works, rather than the other way around.

While you understand the MFP’s full range of benefits, do

you promote and sell these benefits? Or, do you still have

sales reps and customers who view these products as “the

office copier?” Or, in contrast, is your company effectively

transforming the workflow in your customer locations

through effective placements of MFPs? Regardless of how

basic they may be, it is important to consider these and

similar questions, to ensure that your business is moving in

the right direction.

There are a few basic, yet important benefits of the MFP

that may require your attention, but if embraced, will dra-

matically increase your “stickiness” with your customers.

� Cost Control — The days of a printer on every desktop

are dwindling. As printing and maintenance costs have

increased, IT managers have been forced to reassess asset

and document management strategies. Market research

firm Gartner estimates that the cost of printers, coupled

with related supplies, maintenance and support, represents

about 10 to 20 percent of a typical IT department budget. As

IT managers look to consolidate resources without compro-

mising efficiency, many are turning to MFPs.

In addition to device consolidation, MFPs

offer IT managers the ability to track and

measure the amount of pages being printed,

faxed, copied and scanned, as well as how

much color printing is being done. That

knowledge aids companies in budgeting, cost

center charge backs and print management.

All-inclusive printing service contracts for

MFPs can help keep printing costs under

control. By knowing the exact cost per page,

customers enjoy predictable bills. Printing

contracts offer sales reps another tool to strengthen customer

relationships. Is your dealership effectively promoting and pro-

viding these tracking, measuring and page pricing capabilities?

� Simplicity & Customization — Solutions providers can

help their customers leverage the muscle of the MFP to

make their work easier. As you know, some MFPs include a

customizable display panel that provides access to key

workflow functions. Similar to customizing your PC desktop

to prioritize the tools you use most and providing automa-

tion through network enabled scripts, IT managers can now

customize an MFP’s touch-screen display to prioritize the

tools their workers use most and automate complex tasks

with a single button press. As a result, document manage-

ment becomes faster, easier and more accurate. Is your deal-

ership customizing the MFP’s control panel to best meet the

needs of your customers?

� Instant Access — In this era of advanced MFPs, develop-

ment platforms can be harnessed to allow customers or

third-party software developers to build Web-based or

server-based applications that can be accessed directly from

the device for a variety of functions never before considered

for the MFP.

For example, some MFPs let users print to a queue, rather

than a specific device. That way, users can easily and securely

22OT0108 1/2/08 10:23 AM Page 10

retrieve documents from any supporting

MFP, regardless of its location around the

globe. For the mobile worker this means

that carrying heavy documents and

finding a way to print are a thing of the

past with such functionality. All a person

need do is find the nearest enabled MFP,

swipe his (or her) access card (or enter a

password) and “pull-print” securely from

the queue. If available on the MFPs you

sell, is your dealership taking advantage of development plat-

forms and providing seamless integration between the MFP

and a back-office application?

� Easy Collaboration — New MFPs also feature applica-

tion support that gives offices access to common business

documents directly from the device.

Scanned documents typically must be manually named

and distributed, which is both tedious and error-prone.

With today’s MFPs, users select file names and destinations

from easy-to-use, pre-programmed tabs on the MFP’s touch

screen that are easily updated on central servers, reducing

distribution errors and simplifying document processes.

MFPs now act as a centralized communications manage-

ment system for secure scan-to-fax, e-mail and broadcast noti-

fication. Enterprise, government, healthcare and educational

institutions can deliver critical information, such as patient

information, employee performance and more — securely and

with immediate results. Do your customers view the MFP as a

centralized communications management system?

� Security — Enterprise practices and procedures are the

main focus of regulation such as HIPAA and Sarbanes-Oxley

and, as a result, organizations of all sizes should be paying

particularly close attention to the handling of their data.

As you know, when documents are copied or scanned on

many MFPs, an image can be left on the system’s hard drive.

This information is as much at risk of getting hacked or

stolen as information stored on PCs, yet the risk is some-

times overlooked by IT and security departments.

The key for customers is knowing what to look for in

devices and how to best protect data. For instance, an MFP’s

image overwrite or disk overwrite capabilities eradicate cus-

tomer data by repeatedly overwriting the disk surface with

specific patterns to ensure that no normal read process can

discover the original data.

Today’s MFPs offer many protections to secure data,

ensure business continuity, minimize business damage and

maximize return on investment and business opportunities.

Are you making your customers aware

of how to ensure documents that are

scanned, copied or printed on the MFP

remain secure?

We are all enjoying the continued rise

of the MFP in the workplace. However,

solutions providers must work to ensure

that all their sales reps are properly pro-

moting all of the benefits of today’s tech-

nology. Is your dealership truly working

to help customers streamline information flow, simplify busi-

ness processes, improve productivity and lower costs? �Gary Gillam is vice president of North America Channel

Operations at Xerox. Gillam has more than

21 years of channel operations experience

and is responsible for the sale of printers

and MFPs through distributors, value-

added resellers and solutions providers.

Visit www.xerox.com.

MFPs now act asa centralized communications management system for secure scan-to-fax,e-mail and broadcastnotification.

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 | J a n u a r y 2 0 0 8 | 23

23OT0108 1/2/08 10:24 AM Page 1

The office technology industry is built

upon a foundation of fair, equitable

and ethical treatment. The BTA

Model Dealer Agreement has included

these words for more than 50 years. This is

not a lofty standard, but a guiding principle

that has governed relationships between all

facets of the industry. It is the standard that

results in success for independent dealers,

assuring customer satisfaction. It is the

standard that offshore manufacturers have used to provide

assurance, that regardless of specific terms in an agreement,

the standard of interpretation will be fair, equitable and ethical.

When Hallie Gibbs founded Modern Business Systems, fair,

equitable and ethical treatment built his business to one of the

most successful in the nation, ultimately resulting in its sale to

Alco Standard. Along the way, Modern developed a software

program that helped a growing business track equipment,

maintenance, leases and every phase of an office technology

dealership. The program became so successful that fellow

dealers asked if they could share it as well, and hence OMD

was founded. OMD grew under the same philosophy as

Modern — fair, equitable and ethical treatment. With an out-

standing product, unparalleled customer support and con-

stant innovation, OMD became the operating program for

thousands of independent dealers. OMD was sold to dealers as

a perpetual license. And to assure dealers they would be

treated fairly, the perpetual license provided that fees could

only be increased 5 percent on an annual basis.

A few years after OMD was established, another software

program was released for dealerships. John Brostrom and

Thomas Smith offered copier dealers a program that would

manage the unique aspects of their businesses. Again, the

industry saw strong customer commitment coupled with fair,

equitable and ethical treatment to help dealers grow their busi-

nesses. La Crosse, likewise, offered a perpetual license and

assurances that a dealer’s investment in the software would not

result in being held hostage to uncontrolled fees and costs.

In December 2006 and the spring of 2007, OMD and La Crosse

were sold to eCommerce Industries Inc. (ECI2). The ramifications

for dealers first occurred with OMD. Throughout the years,

updates to OMD were released and a new

license agreement accompanied the down-

load. This happened again in June of this

year, but only the first page, the familiar

page, remained the same. The new End-User

License Agreement (EULA) ended the per-

petual license that dealers had purchased,

changed the limit on annual increases from

5 percent to 12 percent, and authorized the

use of management software permitting

ECI2 to have a backdoor to every dealer system. Following the

changed EULA, dealers began to receive invoices for increases in

their monthly charges for their licenses. In many instances, these

increases represented two times more than the previous amount

charged. The cap of 5 percent in the perpetual license was

ignored. In fact, the perpetual license itself was ignored. Dealers

were outraged. Many tried to organize, but the cost and logistics

for dealers to do so was overwhelming. The varying time clocks

in each program created additional pressure upon the dealers to

accept the economic extortion they faced.

A short time later, users of La Crosse Management Systems

faced the same scenario. ECI2 ignored the perpetual term of

each dealer’s license, as well as the cap on increases. The added

indignity was ECI2’s ability to gain access to the dealer’s system.

The philosophies that allowed these software companies to

grow and prosper were abandoned for a quick return on invest-

ment. The terms of the perpetual licenses were ignored. Fair,

equitable and ethical treatment was not even considered.

All of the substantial goodwill that had been developed by

OMD and La Crosse was negated overnight. Although ECI2 has

attempted to purchase Digital Gateway as well, the company’s

president vows to remain independent and dealers have lined

up to license Digital Gateway’s eAutomate.

For those BTA members who have been frustrated with ECI2,

do not blindly negotiate a resolution. Call the BTA Legal Hotline

for guidance. Patiently discuss the features you

desire and the monthly increase and yearly cap

that are acceptable. Then consider your options. �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

A Perpetual Breach — ECI2

Do not blindly negotiate a resolution, call BTA

Fair, equitable and ethical treatment was not even considered. All of the substantial goodwill that had been developed ... was negated overnight.


24OT0108 1/3/08 11:34 AM Page 26

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Iam asked many times how industry

changes are affecting service margins in

the office equipment business model. I

answer with two words: “They aren’t.” Are

there different challenges to deal with? Yes.

Have the service rates customers require

been reduced due to market pressures and

an educated customer? Again, yes. However,

the potential 52 percent (or more) service

margins can be easily attained and main-

tained with a consistent focus on the fol-

lowing areas, which will be explained in detail:

� Closely-monitored employee productivity.

� Sustain or attempt to eliminate reduced revenue on

upgrades (there are some pretty ingenious ways of paying

salespeople to do this, and they will).

� Pay attention to machine placement where you can. Do

not sell a customer a 60 ppm machine doing 5,000 to 10,000

pages per month. A 40 ppm machine will handle this easily at

higher profit margins.

� Keep your managers informed and share the financial

opportunities within service.

� Color and more printers.

Employee ProductivityService has more benchmarks available to monitor than any

other part of your business. I cannot begin to tell you how

many companies I have visited, both as the vice president of

service at Global Imaging Systems and as the president of BEI

Pros, that monitor only 20 to 30 percent of the available bench-

marks and do not monitor them frequently enough. I do not

blame the managers for this, because in the majority of the

cases, those individuals have not had the training or have not

seen a really profitable and productive customer-responsive

service organization.

It is imperative to monitor the following areas in detail until

you are absolutely sure you have these areas at benchmark

performance levels:

� Raise your expectation levels for your service organiza-

tion. Expectations should be set at every level in service

(supervisors, techs, dispatch and parts).

�Gross calls per day — Do not put too

much emphasis here. You are looking for

quality over quantity.

� Net calls per day — Net calls per

day is def ined as gross cal ls minus

incompletes and callbacks.

� Callbacks

� Incompletes

� Parts cost per call

� Accountable time — Every tech

should be accounting for a minimum of 7.5

hours worked per day between customer hours and travel time.

� Territory integrity — Territory integrity is defined as the

percentage of time the technician services accounts assigned

to him (or her) within his territory. He should shoot for 80

percent or more. There will be a big loss of productivity if this

percentage is off.

� Efficiency ratio

I mention these areas because I see numerous companies

monitoring them, but on a monthly basis looking only at aver-

ages. These averages hide some dirty secrets concerning

unproductiveness in the field.

Upgrading Your Customer BaseIt is common knowledge that net new placements are a

must for continued growth in aftermarket revenue and profit. I

see many companies upgrading a current customer with

strong profit margins on their current machine. As soon as

they upgrade, the rep will have taken the service rate from

0.014 to 0.009. The rep should add color clicks to the upgrade

or he will have reduced the amount of revenue the dealership

is generating on that machine. Do not be afraid to add a

minimum to color prints.

Try this little test: Pay your sales reps to keep the rates the

same on all upgrades. Here is an example: Let us say we are in the

above scenario. In this account, the customer runs 10,000 copies

per month. Pay the sales rep $75 per mil (0.001) to keep the rate

at 0.014 ($375). As a company, you will recoup this within the first

six months and have this rate for the next three to four years. I

have tried this and had to cap the amount the sales rep charged

the customer, as he wanted to raise the service rate further. There

Your Real Profit CenterLearn to attain & maintain high service margins

by: Jerry Newberry, BEI Pros

SERVICE CONNECTIONS


26OT0108 1/2/08 12:29 PM

are companies out there that have eliminated price reductions

on all upgrades. These companies operate at 20-plus percent

operating income.

Optimize Customer SalesI see mid- and higher-volume machines sold to customers

with extremely low volumes and no minimums. Every product

has a “sweet spot” where the reliability and services costs are

optimized. Here is an example of an actual model and the

service cost differences in volume ranges:

This should clearly show the impact of volume on your

service costs. Have your managers show you the “sweet spots”

for the models you sell.

Share Financials & Bonus ManagersI speak to many managers who are not getting service

financials on a monthly basis and who are not compensated

on the performance of service. But the industry model is so

simple: Service revenue is 100 percent (after contract revenue

allocation). Salaries are 25.5 percent of service revenue, while

parts are 16.5 percent. Vehicle reimbursement makes up 4

percent of service revenue, while training makes up 2 percent.

This can easily lead you to areas of opportunity within the

service department. It is either productivity or expense control

issues that reduces profit. Revenue (if everything is billing) is

almost never something I find that causes lower-than-expected

service gross product (GP). Almost 100 percent of the time,

lower GP is directly caused by productivity or parts expenses.

This can be controlled. Here are the top contributors to a higher

percentage of revenue by cost of goods sold (COGS):

� Salary — This expense is driven by productivity in the

field. If this percentage is off, you are probably overmanned in

service. Look at your clicks per tech and all of the productivity

numbers above. Maximize your service team productivity to

allow your service force to add additional clicks and revenue

with no additional manpower. This will drive profit over time.

� Parts – Managers should be tracking parts expenses to

budget daily. Put procedures in place to monitor yield on all parts

used that we call “high mortality” items. I cannot tell you how

many times I find early replacement of parts on my visits. This

will eat at your profit in a big way. Flag anything that failed to

meet OEM-recommended yields and claim a warranty replace-

ment. If you are not watching this area, you will be amazed at the

parts dollars being thrown away. Stop this bleeding now!

� Vehicle reimbursement — If you are paying a mileage rate

to the field, there are two ways to drop this by more than 20

percent. Make sure your employees are in territories with

evenly distributed workload from tech to tech. Just ask your

dispatcher how often they pull techs out of their own territo-

ries to assist other techs. If the answer is “very frequently”

(which I hear a lot) then this is driving mileage up.

Secondly, managers should be spot-checking reported

mileage from the field. I see 20 miles entered on an eight-mile

trip regularly. Watch this area closely.

� Training expense — This has become the catch-all bucket

for COGS over the past few years. One way that we can drop

this expense is to ensure we are in the correct field structure.

Product-specialize your team if possible. I have not found one

company with at least eight techs where product-specialized

teams cannot be developed. This will cut your training needs

in half from day one, not to mention the major impact on field

productivity and reliability of your product line.

Color & More PrintersColor revenue on the black-and-white-to-color machines

offer a major opportunity for increased revenues and profit.

However, you must really pay attention to machine applica-

tions and volumes in this arena. This can be a very profitable

environment if you are servicing these units correctly. You

cannot operate in a “hit and run” mode on these products or

profit potential will be greatly reduced. Service these units

smartly and efficiently to ensure margins are maintained and

watch your parts expenses on these units.

Printer service is also a major opportunity to drive service

margins. This area is exploding with opportunity within the

dealer environment, yet I see very few really going after this

business. When I speak about printer service I am referring to

a print management division within your business. A company

that recently hired me as a business partner is growing the

print management side of the business by 300 percent or more

per year. Commit to go after this and do not be afraid to go

national. There are companies that can assist you in providing

a national presence. The business is there for

the taking with nice margins for service. �Jerry Newberry is president of BEI Pros.

He can be reached at

[email protected] or (813) 713-3592.

Visit www.beipros.com.


27OT0108 1/2/08 12:32 PM Page 1

Editor’s Note: Expressing his best wishes

to members of the Business Technology

Association in the new year, the following

was submitted by Yoshihiro Maeda, presi-

dent of the Japan Business Machine and

Information System Industries Association

(JBMIA). Maeda also serves as president

and CEO of Toshiba TEC Corp.

May I first offer my heartfelt wishes to all the members

of the Business Technology Association for their

continued happiness, good health and prosperity in

the New Year!

Last year, the overall global economy largely remained

strong. Although economic growth slowed down in the United

States, high growth was sustained in emerging nations, cen-

tering on China, while increases in exports were recorded in

Europe in spite of a strong Euro. At the same time, there were

some concerns about the influence exercised on the future

global economy by rising crude oil prices and the sub-prime

loan problem in the United States.

In turning our eyes toward domestic issues, Japan experi-

enced a number of scandals brought to light by stricter corpo-

rate social responsibility (CSR) for quality and safety, in such

areas as the strength of elevator steel, misleading reporting of

the fire-resistance of insulating materials, tampering of used-

by dates by food companies, etc. As I mentioned in my inau-

gural address as president, quality and safety constitute the

foundation of manufacturing and are fundamental require-

ments for the soundness of our corporate activities.

The Consumer Products Safety Law was revised last year. In

accordance with the revised law, manufacturers and importers

are required to report product irregularities to the supervisory

authorities and they are also required to provide proper infor-

mation about the said irregularities to consumers. As a matter

of course, we thoroughly abide by all product safety laws. Addi-

tionally, it is important to make efforts to positively develop

voluntary systems required for enhanced product safety in

order to maintain the confidence of consumers. Therefore,

JBMIA, as an industry association, has established the Volun-

tary Action Program for Product Safety, as well as Planning

Guidelines for member companies. We have also formulated

Recall Guidelines (3rd edition) and Safety Guidelines for the

Moving Parts of Shredders (2nd edition).

This year, the Internal Control Report of the Financial

Instruments Sales Law (so-called Japanese SOX Act) will go

into full-scale operation. Last year, the Document Manage-

ment System Working Group organized three seminars in

Tokyo and Osaka on the theme of “the Computerized Storage

of Documents to Support Internal Control” in which a total of

about 450 people participated. On these occasions, we could

feel the high level of interest and motivation in the efforts

made by many companies. Though it was the first time we

held a seminar in Osaka, it received very good responses from

the participants, so we are planning to hold similar seminars

periodically in other regional cities in the future.

We are also facing some important international issues

that need to be solved, such as tariff problems on MFPs in the

EU, copyright levies on printers and MFPs in Germany, etc.

Against this background, we sent a European Mission last

year to strengthen cooperative relations with related indus-

tries including BITKOM, EICTA and so forth. As for our efforts

to develop Asian markets, we conducted a field survey in

China to obtain more information about the utilization of

business machines inside the Chinese office. We intend to

conduct a global survey in a similar way, which will include

the United States.

As for international standardization activities, we organ-

ized the Plenary Meeting of SC28 of ISO/IEC in Matsumoto

last June as the host country. With a record number of partici-

pants, we were able to bring the Plenary Meeting to a suc-

cessful conclusion.

We also developed wide-ranging positive activities such as

efforts toward the creation of an advanced recycling society

using the concept of the 3Rs (reduce, reuse and recycle), posi-

tive responses for the protection of intellectual property rights

and efforts in relation to medium-term problems through the

Electronic Paper Consortium.

This year, we intend to exert our best efforts so that JBMIA’s

activities may contribute to the further development of our

industry and to promote a better society.

Looking forward to your continued support, I thank you in

advance for your cooperation. �

by: Yoshihiro Maeda, JBMIA

PRINCIPAL ISSUES

JBMIA UpdateAssociation president reports on activities & plans


28OT0108 1/2/08 12:33 PM Page 26

At a recent sales manager executive training meeting, I

asked the question, “Are your reps calling on the execu-

tive level decision maker?” The hands ceremoniously

shot up in compliance. I then rhetorically asked, “Who do you

think you are fooling?”

We have been down this familiar path too many times

before. At the most fundamental level we all know that we

need to present first to the decision maker. The decision

maker must initially see the potential of our services being a

fit. And now through the power of clairvoyance, I am betting

that little voice in your head is whispering something like:

� “Normally I would agree but he does not know our mar-

ketplace in X state.”

� “It is IT that makes the decision on the solution we offer.”

� “The way we do it is to start at the ground level and then

work up the ladder to the decision maker. That way we have

developed our case ahead of time.”

� “Well, my tenured reps do, but I have a bunch of newbies

who do not have that type of experience yet.”

� “You know, everyone still thinks of us as just a copier

company. Our contacts will not like it if we go over their heads

to the CFO.”

� “The CFO is not interested” or “The CFO delegates these

types of things to the __ to decide and merely rubber stamps it.”

The following two analogies help to clarify my position.

A six-year old child is savvy in asking his father for a new

tool for the “family” toolbox. He prepares a carefully thought-

out argument for a new power drill that works as a screw-

driver, too. He purposely avoids asking his mother, who

believes the tool is too dangerous for his small hands.

Although he knows he cannot get past this reality, he hopes his

father will agree with the clarity of his argument, relent and

then buy the drill (which, of course, he wants too, because it

will make his jobs around the house a lot easier).

Maybe just this one time, the father will give in and make

the decision without discussing it with the child’s mother first.

The truth is that even though the father completely agrees

with the child — a new power drill is something the whole

family would benefit from — he knows that these decisions

require buy-in from the mother.

One of two things happens next. Mother will not share the

logic and there will be no new drill. Or, she requires the entire

presentation to begin anew, requiring the child (and father in

this example) to explain, from the beginning, why the power

drill is necessary when the old handheld screwdriver works

just fine. Time is wasted. Had the “decision maker” been

involved in the initial approach, the toolbox would be the

home of a new power drill and the child would be well on the

way to scheming his next desired toy.

If you are not into new power tools, consider this analogy.

When a case is brought to court, how effective would it be to

plead to the court reporter? Sure, the court reporter needs to

hear everything that is presented and will ask for clarity if neces-

sary, but ultimately, no judgment can be made without the judge.

Who Are They Calling On?Ensure that your sales reps are not wasting time

by: Max Rosenthal, Diversified Business Solutions

SELLING SOLUTIONS


29OT0108 1/2/08 1:08 PM

Furthermore, the reporter has no effective

power in the final outcome. It is only the

judge who has the authority to decide the

case, as well as the way the case is argued.

As sales managers, one of our top priori-

ties is to discipline our reps to call on qual-

ified opportunities and, therefore, to

condense the t ime getting the order

closed. The less time spent on any one deal

equates to more time to stuff the pipeline.

While it is important to have buy-in from others in the

company, the parties that need to be at the initial meeting(s)

are those who have the authority “to sign on the line that is

dotted.” I cannot stress that enough.

So I will say it with a little more flare — if you do not have an

executive level decision maker at your initial sales call, you are

just spinning your wheels and falling prey to the most addic-

tive and rampant sales drug on the street — “hope-ium.” Only

until you have the agreement of this person or people do you

have a qualified sales opportunity. Our job as sales managers is

to guide, empower and teach our reps. Teaching them this one

idea and helping them to understand it quickly should be one

of your primary initiatives.

If you are still not completely sold on this idea, consider this

scenario: We have two competing sales reps calling on the

same six suspect companies. Rep “A” blissfully subscribes to

any one of the six “voices” stated earlier and will schedule an

appointment with just about anyone in the company willing to

meet. As a result, he (or she) has convinced himself that he is

productive and, for a short while, is perceived to be busy.

However, he has only created the illusion of being busy — per-

forming the right strategies, just at the

wrong time.

With the exception of pre-call company

research, it is a criminal use of time to be

conducting on-site needs analyses, user

interviews and any other activity that creates

a falsely engorged sales funnel. Think of a

snake after it ingests a fat rat. It looks so full

that it will soon burst. However, time passes

and that swollen bulge has not moved; it just

sits there decaying with rot; nothing is coming out the other end.

On the other hand, the mantra of Rep “B” is to maximize the

time calling on qualified prospects and he believes that this is

systematically fulfilled by scheduling his first meeting with the

CFO. He is not buried in piles of paperwork or onsite at a

prospect’s company delivering unpaid consulting advice. In

fact, although he thoroughly researches the company he is to

meet with, he goes no further until both sides mutually agree

on the potential of an engagement.

See the chart on page 29 and tell me which style rep you

would want to help you hit your numbers.

And my final question: Currently, which style most resem-

bles your team?�Max Rosenthal is an analyst with Diversified Business Solutions,

a BTA member company in San Diego, Calif. Diversified

Business Solutions works with CFOs of small- to

medium-size businesses that are interested in

accelerating the time to cash. He encourages

your opinions and ideas and can be reached

at [email protected]

and (858) 565-2737.


As sales managers, oneof our top priorities is todisicipline our reps tocall on qualified opportunities and ... to condense the time getting the order closed.

ADVERTISER INDEX23 • Ames Supply Company

(800) 323-3856 / (630) 964-2440 / www.amessupply.com

31 • Business Products Council Association

(800) 897-0250 / www.businessproductscouncil.org

21 • DocuWare

(888) 565-5907 / www.docuware.com

15, 17, 19 • FMAudit

(573) 632-2461 / www.fmaudit.com

9 • InkCycle

(800) 736-8877 / www.inkcycle.com

14 • Innowave

(800) 723-3426 / www.innowave.com

2-3 • ITEX 2008

www.itexshow.com

13 • MKG Imaging

(800) 881-7545 / www.mkg.org

12 • Niche Equipment

(877) 446-4243 / www.roto-shredders.com

25 • On Demand

(888) 824-3004 / www.ondemandexpo.com

5, 11 • Print Audit

(877) 412-8348 / www.printaudit.com

7 • Toshiba

(949) 462-6165 / www.copiers.toshiba.com

30OT0108 1/3/08 11:33 AM Page 1

The BPCA was founded in 1963 with the vision of

forming a best practices organization that unites

leaders of independently-owned office equipment

dealers. The concept is quite simple - bring the

leaders of these companies together so that they

can share ideas, learn from each other, and take

their businesses to the next level.

Our members will attest that it’s well worth the

investment by making each of them better leaders

and bringing more value to their dealerships.

Feel like there’s something missing from your

organization? Let BPCA bring together all the

pieces of the puzzle.

Piecing Ideas Together.

If you’d like more information about our

organization and how to join, please send

us an email or give us a call.

Phone: 800.897.0250

Email: [email protected]

Website:

www.businessproductscouncil.org

Membership Director BPCA

c/o BTA

12411 Wornall Road

Kansas City, MO 64145

“Better Dealers Through

Learning and Idea

Exchange.”

31OT0107 12/18/06 2:51 PM Page 1

PRSRT STDU.S. Postage PaidEaston, PA 18042

Permit #31 Office Technology MagazineBusiness Technology Association 12411 Wornall RoadKansas City, MO 64145(816) 941-3100www.officetechnologymag.comwww.bta.org

EDUCATION CALENDAR

BUSINESS TECHNOLOGY ASSOCIATION • January 2008

February6-7 BTA ProFinance Orlando, Fla.

BTA 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 who make the critical business decisions that impact your company’s success. This classtakes a holistic approach to setting a new course for your business with the goal of helpingyou achieve a minimum of 14 percent operating income.

6-7 BTA ProSolutions Salt Lake City, UtahBTA ProSolutions, taught by Darrell Amy of Dealer Marketing Systems, is designed for anyonedirectly engaged in the solution-selling process: solution specialists, major account represen-tatives and sales managers. Software vendors teach you about their technology. However,your clients don’t care about technology — they want their business problems solved. Youneed to understand your client’s business problems before you can provide solutions. Thiscourse fills in the gap.

12-13 BTA Print Management Workshop Irvine, Calif.Taught by Tom Callinan of Strategy Development, this two-day educational workshop isdesigned to provide dealerships with the tools they need to establish a print managementstrategy that will allow them to significantly increase the quantity of captured prints, lock incustomers, distinguish themselves from competitors and, ultimately, sell more hardware.

21-22 ITEX 2008 Las Vegas, Nev.

For more information and to register for BTA seminars visit www.bta.org or call (800) 843-5059.

32OT0108 1/2/08 1:21 PM Page 1

january 2008 office technology

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