ofdealer august 2009

MotivatingPeople

inToughTimes

your

OFDA Dealer Strategies Conference Program

Bill Kuhn: Leading in Times of Crisis

9

When Thomas Paine wrote those words back in 1776, officefurniture was the last thing on his mind. But for many of us in the industrytoday, Paine’s simple phrase provides an increasingly accurate description forour own times. And if most of the current industry forecasts hold up, it could wellget worse before it gets better.

But even with tough economic challenges, there are still plenty of opportunitiesout there for aggressive, well-run companies. Here are just some of thesuggestions we’ve heard in recent weeks on ways to keep momentum going inthe right direction, no matter how bumpy the road may get:

AUGUST 2009 OFDEALER PAGE 2

Make sure cash is king. One dealer we know is looking veryseriously at selling the receivables from some of his largercustomers who may generate big orders but who are typicallyslow payers. It may cost him a couple of points, but he says he’llsleep a whole lot easier with the money under the mattress!

Communicate, communicate, communicate. The rumor millspeeds up dramatically in uncertain times and if you keep yourpeople in the dark, they’ll assume the worst. Keep close contactwith key accounts, to let them know you’re still doing fine andto make sure they are, too. And also (see the next point), toprobe for potential new sales opportunities.

Maximize the value of each customer. There isn’t a dealer outthere who couldn’t be selling more to their existing customers.And it’s not just about services like panel cleaning, assetmanagement or rental programs. It’s also about selling artwork,coat racks or fireproof files. Talk long enough and often enoughto your customers and you’ll be amazed at what you’ll learnabout their needs.

Make new business development a key strategic focus. Nomatter how bad it is out there, there are still companies that needto buy office furniture. Do you know where they are? Do youhave a formal plan in place to take advantage of all thenetworking opportunities available in your market? Do yoursalespeople have new business development goals so that youcan at least replace some of the business that’s been lost tofactors totally beyond your control.

Trim the fat. Go through every line item on your budget andeliminate anything that doesn’t add value or that isn’t totally

mission-critical. You can’t afford to be spending money onanything for no reason than it’s something you’ve always done.

Don’t allow tough times to shortchange your dealership.Staples CEO Ron Sargent made a great point in an interview lastyear with Office Products International magazine. He said, “It isvery important to continue to invest in your business, in goodtimes and bad times.” Maybe not as much as you’d like, but asSargent suggests, this is still a good time to invest for the future.

Don’t neglect your key strategic partners. Your manufacturers,dealer groups if you belong to one and technology providers alloffer a wealth of resources you can leverage to continue tocompete effectively. Make sure you’re making the most of allthey offer.

Stay positive. It may be a cliché but in many ways, your attitudereally does determine your altitude. One of the strengths of anywell-run small business is the ability to turn on a dime whenchanging market conditions demand it. You also have deeproots in the community and relationships strong enough towithstand the toughest downturns. And even the worst of timesoffer opportunities for good companies to gain market share andfind ways to become stronger and more efficient.

We have no idea how Tom Paine himself would respond totoday’s testing times and quite frankly, we don’t really care.What’s more important is how you respond. You can watch TV,read the newspapers and become an expert on our currentdifficulties. Or you can make a conscious decision that enoughis enough and that it’s time to go out and make somethinghappen. It’s your call. What are you going to do about it?

What follows is a modified versionof a column that ran in our sisteroffice products publication,INDEPENDENT DEALER, somenine months ago. Sadly, it’s noless relevant today than it wasback in November of last year.

‘The Times That Try Men's Souls’

Honors are nothing new for Kayhan Hellriegel.

As president of Haworth dealer, Kayhan

International in Schaumburg, IL, she has

amassed an impressive list of awards and

special recognition, both within the industry and

in her local community.

Since founding her dealership in 1982, Hellriegel

has been inducted into the Chicago Area

Entrepreneurship Hall of Fame, earned

recognition as a Women’s Business Enterprise

Star by the Women’s Business Enterprise

National Council and is the only dealer to win

honors as a member of Haworth’s prestigious

President’s Circle Award for 15 consecutive years.

But even for Kayhan Hellriegel, Saturday, June 20

was special, as she strode proudly across the stage

at East-West University’s 2009 Graduation Ceremony

to receive an Honorary Doctorate of Humane Letters

degree.

The University, a private four-year college that

primarily serves minority students in Chicago’s South

Loop, provided an eloquent explanation for the

honor:

“When it comes to giving back to the community, few

business leaders in the Chicago area can match

Kayhan Hellriegel … For the past 12 years, she has

been the honorary chair for the annual Chicago

Commercial Real Estate Awards, with the proceeds

donated to the Greater Chicago Food Depository. In

each of the past two years, the event raised over $1

million, which provides more than four million meals

each year for Chicago’s hungry.”

In addition, the University cited her fundraising efforts

on its behalf and her involvement in a special

business training and mentoring exchange

program in cooperation with the U.S.-Afghan

Women’s Council.

Hellriegel came to the U.S. from Iran more than

40 years ago and her own success as an

immigrant entrepreneur has left her with a deep

sense of respect and obligation towards the

American free enterprise system.

“I really believe it’s important to give back to the

community that has given all of us so much,” she

says. That attitude, combined with an equally

strong commitment to education inherited from

her father, led to her involvement with East-West

University and a fundraising effort that has

generated several hundred thousand dollars in

student scholarships in recent years.

On behalf of OFDA, we’d like to add our own

congratulations and appreciation for Kayhan

Hellreigel and her willingness to provide an

outstanding model of leadership and

philanthropy that remains strong, even in these

challenging times.


continued on page 4

newsKayhan Hellriegel, Chicago Area HaworthDealer, Receives Honorary Doctorate ofHumane Letters Degree

Corporate Environments, Atlanta-Based Knoll Dealer, Hosts Seminar Series onEnvironments Trends, New Technologies

These days, it’s hard to find an office furniture dealer whodoesn’t claim to be doing all it can to protect the environmentand preserve precious natural resources. In Atlanta, CorporateEnvironments has taken its own commitment to sustainability tothe next level, through a series of monthly meetings thatpositions the Knoll dealership as a valuable resource for anyoneseeking to manage their workspace in a more environmentally-responsible way.

Spearheaded by A&D representative Laurel Hoover, the series’scope extends far beyond the boundaries of office furniture.Recent topics include taking your building off the power grid,innovative indoor air purification methods and eco-friendly watertreatment.

“These sessions aren’t about selling product,” explains Hoover.“Instead, Corporate Environments is trying to provide anon-threatening, non-sales-oriented platform to educate theA&D community on new technologies and ways they canincorporate sustainable design into their own buildings.”

So far, reports Hoover, the effort is generating an enthusiasticresponse, with attendance ranging from 40 to 150, dependingon the topic and timing.

And attendees not only come away with valuable insights on thelatest in sustainability-oriented technology and design. They alsoleave with a far better appreciation of Corporate Environmentsand its ability to support their own efforts.

New Owners at Innerplan Office Interiors, Arkansas Haworth Dealership

It’s been a busy couple of months to say the least for the folksat Innerplan Office Interiors in North Little Rock, Arkansas.

In May, the preferred Haworth dealer celebrated its 30th anni-versary and one month later, founder and chairman Jim Narupannounced his retirement and the sale of the company to RogerMcMennamy, a long-time Arkansas resident and businessexecutive, who becomes Innerplan’s chairman, president and CEO.

Also an investor in the company and joining the managementteam is McMennamy’s son Tim, who will serve as vice presidentand oversee the dealership’s financial, IT and HR functions.

Before taking the reins at Innerplan, McMennamy held seniormanagement positions in the oil and gas services industry, realestate and automobile dealerships, and that experience, hesays, represents valuable preparation for running a contractfurniture operation.

“Contract furniture is very similar in its orientation to theindustries where I worked before,” McMennamy contends.“They all share a common focus on defining customer needsand meeting those needs in a way that exceeds expectations.”

Despite current tough challenges, McMennamy points withconfidence to a team of hard-working industry veterans on staffand to primary manufacturer Haworth as key resources for hisnew company and he says central Arkansas’ concentration ofstate and local government, healthcare and education clientsprovide a solid foundation for growth and make his marketsomewhat countercyclical compared to the rest of the industry.

Ohio Desk, Ohio Dealer, Earns Customer ServiceAward from Local Business Publication

In Cleveland, Dave Humphrey and his team at Steelcase dealerOhio Desk are still celebrating after earning honors as one of just30 businesses in the Akron-Canton area to receive a 2009 WorldClass Customer Service Award recently from Smart Businessmagazine, a local business publication.

And best of all, the award came after the dealership wasnominated by the most important judge of all—their customers!

Ohio Desk has been around for a while—the company bills itselfas “Northeast Ohio's Premier Workspace Solution ProviderSince 1908.” But, says Humphrey, it wouldn’t have lastedanywhere near that long without a fierce commitment to listeningto its customers and responding to their key needs.

The dealership has been surveying customers on a regular basissince 1987 and its Continuous Improvement Group, in placesince 1988, provides a strong in-house change agent that keepsthe company agile and responsive to changing marketdemands.


Dealer News } continued from page 3

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It’s a competency that has been particularly valuable in recentmonths, of course, as the Ohio market has followed the samedownward trend as the industry overall.

“After a very good 2008, we’ve had to make some adjustmentslike everyone else,” Humphrey reports, “but even though projectsales aren’t where we’d like them, we’re seeing results from ourservices group—refurbishing, rental, storage, etc.—that areabove expectations.”

Humphrey also reports encouraging signs of life in the smallbusiness segment, as more and more executives laid off fromlarger corporations decide to strike out on their own and comelooking for new but aggressively value-priced furniture.

And when they come knocking on the door at Ohio Desk, theycan be sure of a professional, service-oriented welcome, if thelatest Smart Business Awards offer any indication!

New Owners at Steelcase Dealer Office Environments of Asheville, NC

Erin and Greg Mosher, left, have purchased Office Environmentsfrom Nina and Chris Young, right.

Office Environments in Asheville, NC, has new owners after thehusband and wife team of Greg and Erin Mosher finalized anagreement August 1 to take over the company, a Steelcasedealership that was founded in 1984 by current Steelcasechairman Rob Pew.

Erin, who will serve as president, is a native of Asheville whobrings extensive office furniture experience to the company,after working with several different industry manufacturers anddealers on the sales and design side of the business.

Vice president Greg, who has a diverse managementbackground across multiple industries, will focus on HR,organizational development and operations at the dealership.

The Moshers are taking over a business whose scope extendsfar beyond office furniture alone. In addition to its commercialsales, Office Environments also has a healthy residentialoperation that focuses on floor coverings for the home and, saysGreg, expansion in that area is part of his and Erin’s future plansfor the company.

“Rob Pew and previous owners Chris and Nina Young did aterrific job of building the business and providing a greatfoundation for future growth,” he says, and he points with prideto deep roots in the local community and a 25-year history thatincludes recognition both as a Small Business Leader of the Yearby the local Chamber of Commerce and as OutstandingBusiness in Philanthropy in the Asheville area.

Even in the face of current tough business conditions, Greg’soptimism about the dealership and its prospects comes throughloud and clear. “The local economy may be down right now,” headmits, “but Asheville is a terrific market and we still have anoutstanding opportunity to grow what is already a strongbusiness and take it to the next level.”

Environments at Work, Boston Haworth Dealer,Launches New Architectural Products Division

Boston-based Haworth dealer Environments at Work recentlyannounced the launch of a new division, Integrated Interiors atWork, to provide a single source for architectural interiorsproducts, including moveable walls, raised flooring, and modularpower; as well as design-build construction services for missioncritical or data center environments.

Industry veteran David Atwood, who has a long history ofcollaboration with Environments at Work and its clients, will leadthe new division.

“There is a significant and growing demand for the sustainableand adaptable benefits provided by moveable walls and raisedflooring,” said Atwood. “As a division of Environments at Work,Integrated Interiors at Work will be able to provide customerswith a tailored modular solution either as a stand-alone projector integrated with their furniture needs.”

Integrated Interiors at Work will also provide full-service con-struction services for data center projects, the dealership said.


Dealer News } continued from page 4

http://www.ecisolutions.com/ofd-sept09

BIFMA June Numbers: Orders Down 33%; Shipments Down 31%

The Business and Institutional Furniture ManufacturersAssociation (BIFMA) released its market statistics for June earlierthis month and both orders and shipments once again postedsteep declines.

June orders fell 33% compared to the same month last year,matching May’s 33% decline, while shipments were off 31%.

Despite the declines, Raymond James’ analyst Budd Bugatchsaid he remains encouraged by early signs of stabilizingdemand, though the near to medium-term revenue outlookremains guarded given the high level of economic uncertainty.

While the industry’s relevant economic drivers — non-residentialconstruction, business confidence, white collar employment,and office vacancy rates — remain negative, Bugatch said someindicators have begun to show signs of bottoming.

Unfortunately, he added, given the late-cycle nature of officefurniture demand, a recovery for the industry is likely to lagimprovements in the broader economy by at least three to fourquarters.

AIA Predicts ‘Deepest Decline in Over aGeneration’ in Nonresidential Construction Activity

As the overall economic downturn continues, nonresidentialconstruction activity is shaping up to post the deepest declinein over a generation, according to Kermit Baker, chief economistat the American Institute of Architects (AIA).

Baker made his forecast in connection with the release of AIA’slatest predictions from its semi-annual Consensus ConstructionForecast, a survey of the nation’s leading constructionforecasters.

According to the AIA panel, overall nonresidential constructionspending is expected to decrease by 16% in 2009 and drop byanother almost 12% in 2010 in inflation-adjusted terms.

Commercial projects will see the most significant decrease inactivity, while institutional building categories are expected tosee much more modest declines.

“While there are some indications that the overall economy isbeginning to recover, nonresidential construction activitytypically lags behind the rest of the economy,” Baker noted.“Commercial facilities such as hotels, retail establishments andoffices will feel the decline most dramatically. The institutionalmarket will fare much better as stimulus funding becomesavailable for education, healthcare and government facilities.”Specific market segment forecasts are as follows:

Commercial / Industrial 2009 2010

Retail -28.0% -12.6%

Hotels -25.8% -16.8%

Office buildings -21.5% -17.3%

Industrial facilities -0.8% -28.4%

Institutional

Education -8.2% -0.7%

Healthcare facilities -1.5% -0.8%

Dunlap Office Furniture Index Shows Upward Trend

Even as BIFMA and AIA continued to report gloomy industrystatistics, slightly more positive news came from consultantsMichael A. Dunlap & Associates. Dunlap’s quarterly industryindex, which measures sentiment among a broad sampling ofindustry executives, showed that the industry’s deep downturnmay perhaps be bottoming out.

The index registered 48.30 for July, the best yet this year and upfrom April’s 41.45 and January’s 46.17.

Encouragingly, more than 34% of survey respondents said theyare optimistic about the future, up from just 25 % in April.

Green Building Certification Institute Launches Credentialing Maintenance Program

The Green Building Certification Institute (GBCI), which earlierthis year assumed responsibility for administering the LEEDcertification program, has launched a credentialing maintenanceprogram (CMP) for LEED APs and Green Associates.


continued on page 8

With the launch of LEED v3 in April, GBCI put in place a numberof changes to the LEED professional credentialing program,including the introduction of the LEED Green Associate andrealigning the specialties within the LEED AP program to betterreflect market practice areas.

“More than 130,000 LEED APs obtained their credentialsbetween 2001 and June 2009. CMP will ensure that thosecredential holders who tested under previous versions of LEEDfor New Construction, LEED for Commercial Interiors or LEEDfor Existing Buildings continue to demonstrate a level ofknowledge that places them at the forefront of a constantly

evolving green building marketplace,” said Beth Holst, vicepresident of credentialing for GBCI.

A number of activities qualify to earn LEED credential holderscredit toward their credentialing maintenance. Those activitiesinclude continuing education as well as the practical applicationof LEED on projects and active participation in the green buildingcommunity.

A CMP Guide is available at www.gbci.org that outlinesCMP-eligible activities and the requirements for maintainingboth the LEED AP and LEED Green Associate credentials.

Industry News } continued from page 7

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HON Reaches $1 Million Milestone in Support of the City of Hope, Earns LEED Silver Certification for Chicago Showroom

The HON Company recently reached asignificant milestone in its support of the City of Hope cancer research and treatmentcenter when it passed the $1 million mark forfunds raised through its annual City of Hopegolf outing.

HON was the first industry company tosponsor a golf outing for City of Hope and itseighth annual event was held June 23 inMuscatine, IA.

“We were thrilled to reach the $1 millionmilestone in giving to City of Hope this year,”said Jerry Dittmer, HON’s president. “City ofHope is truly a remarkable organization, andHON and our members are dedicated toproviding assistance whenever possible tosuch a worthwhile establishment.”

Separately, HON announced its Chicago showroom,located on the 11th floor of the Merchandise Mart, hasreceived LEED Silver certification. At 9,760 square feet,the space was recently redesigned to be a flexible,sustainable pavilion that embraces the direction of HON'snewest products and exhibits design features thatindicate the performance desired in future work settings.

HON partnered with SmithGroup, a leading architectureand engineering firm, on the redesign of the showroom.The space is designed to maximize exposure to daylightand views with an open pavilion of flexible zones. Tocomplete the sustainable theme in the showroom, HONused numerous recycled materials throughout, includingdoors, glass, carpet and custom recycling bins.

http://www.gbci.org

Office Furniture USA adds five new dealer partners, six new showrooms

Office Furniture USA said it continues to buck the current

industry trend by expanding its base of dealer partners across

the country.

Since the beginning of summer, the organization said new dealer

partners have been added in Boston, Memphis, San Diego,

Columbus, OH and Wausau, WI.

In addition, the company opened six new showrooms in

Columbus, GA; Topeka, KS; Colorado Springs, CO; Irvine, CA;

Findlay, OH, and Richmond, VA.

“A showroom is a key factor in our business model,” OF USA

president Dennis Arnold said. “It provides a way for potential

clients to see products from the different manufacturers in our

program. It’s also a physical touch-point for the sales rep,

providing them with a differentiator in their selling process vs.

other dealers in their area. That’s one reason our sales were up

18% for the second quarter; in fact, our June sales were up 58%

compared to our low in February.”

LEED Certification for Kimball Showrooms

Kimball Office announced two of its showrooms recently earned

LEED certification from the U.S. Green Building Council.

Kimball’s San Francisco received LEED-CI Gold certification,

while its Atlanta showroom earned LEED-CI Silver certification.

New Owners for Jasper Library Furniture

Jasper Library Furniture, a manufacturer of workstations, tables,

shelving and seating to the library market, has been acquired by

LIAT LLC, a management team partnership formed to purchase

Jasper Group Brand from Jasper Group, an 80-year-old contract

furniture manufacturer located in Jasper, IN.

The new owners are Brian Lish, Fred Schutmaat and Jane

Schutmaat, all formerly with Jasper Group. Brian Lish, president,

will manage the daily operations of the company, as well as

oversee the manufacturing facilities. Fred Schutmaat, executive

vice president of sales, will be coordinating sales strategies and

efforts, as well as LEED certification, FSC implementation and

emerging technologies. Jane Schutmaat, executive vice

president, will be managing projects and leading new product

development.

The purchase includes full ownership of the brand, all product

lines and two manufacturing facilities located in Troutman and

Taylorsville, NC. Jasper Library Furniture currently has a total of

56 employees. The new corporate headquarters will be located

at the production facility in Troutman, while the finishing lines

and inventory will continue to be handled at the Taylorsville

facility.

Allsteel Honored with 2009 Green Good Design Award

Allsteel Inc. has earned a 2009 Green GOOD DESIGN Award

from The European Center for Architecture Art Design and

Urban Studies and The Chicago Anthenaeum for its lean and

”green” manufacturing. The Award also recognized Allsteel’s

use of its Rapid Continuous Improvement system to minimize

waste and use of natural resources in its manufacturing

processes.

Among Allsteel’s “green” manufacturing accomplishments

acknowledged by the Green GOOD DESIGN award are:

� Implementing laser cutting of steel, decreasing waste by

more than 1,000 tons annually and reducing CO2 emissions

by more than 3,000 tons every year. Scrap steel pieces are

recycled into new products, diverting nearly 6,000 tons of

metal from landfills annually.

� Recycling waste fabric into automotive liners, diverting

about 300 tons of fabric from landfills and reducing CO2

emissions by more than 860 tons.

� Changing the process for handling water during paint

production, reducing water use by two million gallons a

year.

� Reusing materials to divert more than 30 tons of aluminum

and more than 6,000 tons of wood from landfills annually.

“We’re thrilled to be recognized as a sustainability leader

by the international design community,” said Keri Luly, Allsteel’s

manager of sustainability programs. “At Allsteel, we take great

pride in not only producing quality workplace furnishings, but

also continually improving our practices to better the

environment.”



continued on page 10


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Bretford Receives Greenguard Certification for Carts and Other ItemsBretford Manufacturing said it has received Greenguard IndoorAir Quality Certification for 155 more of its carts, book truckstables and accessories

Bretford said these latest products include the first certifiedlaptop cart and bring to 243 the total number of Bretfordfurniture models which can be specified to help commercialfacilities achieve LEED points.

Gunlocke Offers ‘Green Calculator’ to Show HowIts Products Can Contribute to LEED ProjectsWood contract furniture manufacturer Gunlocke has introduced an online Green Calculator, located atwww.gunlocke.com/greencalculator, to make it easier to includeits sustainable product portfolio in projects to earn LEED credits.

“Gunlocke’s commitment to the environment and role as aleading resource for sustainable products is evident in our newGreen Calculator tool,” said Roy Green, Gunlocke director ofstewardship and sustainability. “Because it takes intoconsideration all the factors associated with selectingsustainable materials for a project, we’re able to makespecification simple and extremely efficient.”

HPFI Product to Be Featured in New Movie Coming soon to a screen near you is the Eve Collection ofreception furnishings from HPFI (High Point Furniture Industries).

Eve club chairs and sofa will be part of the set for TheExperiment, a major motion picture featuring actors AdrienBrody, Forest Whitaker, Clifton Collins, Jr. and Cam Gigandet.The linear club chairs and sofa from the Eve Collection will bean integral part of the set during filming in Iowa. The movie isscheduled for release later this year.

http://www.gunlocke.com/greencalculator

http://www.conceptseating.com

Office furniture dealers of all types, installers, recyclers,manufacturers and industry service providers can expect thisyear’s OFDA Dealer Strategies Conference (Hyatt Lost Pines,Austin, TX – October 4-6) to once again ‘raise the bar’ in terms ofindustry education and networking.

This year’s program includes a broad range of timely, practicalmanagement education sessions and numerous opportunities foreffective professional networking.

We also will be joined by the Office Furniture Recyclers (OFR)network, who will host an interactive session to highlight newopportunities in their segment of the industry and explore howthey are responding to today’s economic challenges.

By attending, you will expand your strategic vantage-point andgain fresh insights into how you can create new revenue streams,leverage outside resources and relationships for improvedproductivity, and hone your financial and other management skillsto convert tough market conditions into a launching pad for thefuture success of your business.

aDo you have a clear plan for navigating your business throughthe toughest economic environment in decades?

aAre you and your team executing it fully and achieving thepositive results you need to ensure survival of your businessand a return to prosperity?

aAre you cutting the right expenses, managing your cash flowin the most effective manner, and making the ‘right’ strategicinvestments in your employees and business processes tosupport your immediate and longer-term plans?

aDo you wish you could move ahead more decisively to restorereasonable levels of profitability?

You’re not alone!

This year OFDA has structured its program to ensure the highestpossible ‘take-away’ value for conference participants—no matterwhere you sit in our industry.

Whether you are a small or larger dealer, an aligned or non-aligneddealer, or a large metro or smaller city dealer, you will findsessions that address topics of critical importance to yourbusiness.

Manufacturers, installation and technology service providers—many small businesses like their dealer customers—also will find

huge value by interacting with dealers during social events andnetworking breaks and by participating in conference educationalsessions alongside of their customers and/or suppliers.

Manufacturer Panel on the Future of IndustryDistribution

For example, top executives from four leading industrymanufacturers have agreed to participate in one of our generalsession dialogs on the Future of Industry Distribution.

Teknion president Maxine Mann, Knoll North America presidentLynn Utter, AIS chief strategy officer Michael DuGally andHaworth VP of global sales Todd James will address such criticalissues as:

aGiven recent economic and social trends, what will be theneeds of the workplace of the future and how will this affectindustry distribution?

aWhat workplace and other trends are leading office furnituremanufacturers tracking most closely?

aWhat changes could occur in the roles that dealers will playand how are the most successful and proactive dealerspreparing for these changes?

aWhat new channels of distribution are emerging and how dothey fit into the overall distribution structure for our industry?

The OFDA fall conference is the single most important event fordealers and their key business partners to attend this year.

It is always a challenge to step away from your business for evena few days, but when you face unprecedented challenges, aseveryone in our industry does today, the justification for doing sois even stronger than in calmer times.

Online Registration and Early-Bird Fees Available

Registration for this premier event is easy. Just visit www.ofdanet.org/conference and follow the instructionsthere to view the full schedule of events and educational program,register for the conference online, make your hotel reservationsat the conference hotel (Hyatt Regency Lost Pines) and learnabout discount airfares and car rentals available.

You may also contact Chris Bates, OFDA president([email protected]; Tel: 703/549-9040, x 100) or any memberof the OFDA staff if you have questions or to request assistance.

This is your industry event. Come be an integral part of it!

OFDA 2009 Conference OffersExceptional Range ofGeneral Sessions and Breakouts

http://www.ofdanet.org/conference

mailto:[email protected]

Navigating BusinessThrough Unprecedented

Economic Times



Dear Industry Colleague:

There has never been a more critical time in our industry’s recent history for

dealers and their essential industry partners - manufacturers, installers,

technology and other service providers - to come together to discuss practical

ways to ensure mutual business survival, while preserving the foundations for

future growth.

This year’s conference has been tailor-made to provide the ideal environment

for serious business networking, collaborative learning, and a generation of

fresh ideas and action plans to implement them.

Like you, OFDA has taken a step back this year and re-evaluated every aspect

of our annual conference strategy, format and agenda. We are taking the

necessary steps to effectively engage association members and prospective

members in an experience that will powerfully address your immediate and

near-term business needs and reinforce your commitment to success.

The result is an all-new approach toward bringing industry participants together

in an informal, compact setting to acquire and refine critical business survival

skills and create profitable new business opportunities. In short, this is a ‘must

attend’ conference that will provide an exceptionally high ROI for your company.

We invite you to become part of the single most important dealer-focused

industry event of 2009 - one that will energize and further empower you and

your team members who participate. We look forward to seeing you in Austin,

TX on October 4-6 for a valuable, action-oriented program and business

meetings.

Sincerely,

Jack King Chris Bates2009 OFDA Chairman OFDA President

Jack King

Chris Bates

Invitation to OFDA Industry Partners and Prospective Partners



About the Office Furniture Dealers Alliance (OFDA)

The Office Furniture Dealers Alliance (OFDA) is the industry association for officefurniture dealers who are serious about improving the effectiveness and profitabilityof their businesses. Membership is comprised of these leading-edge dealershipsand their key business partners - manufacturers, installers, and technology and otherservice providers. OFDAís annual Dealer Strategies Conference attracts principalsand senior managers from these companies and the business meetings and displayoptions outlined in this prospectus offer creative ways for companies like yours toengage and build or expand business relationships with them.

Why participate inOFDA’s Dealer Strategies Conference & Business Meetings

We chose our conference theme: Navigating Business Through Unprecedented EconomicTimes to accurately reflect the major challenges our industry now faces, but also theopportunities to overcome them with effective leadership, tighter strategic focus, consistentexecution of core business processes and implementation of best practices in all aspects offinancial management. To help OFDA members address these challenges head on, we haveassembled a critical “survival toolkit” of interactive educational sessions. General andbreakout sessions will offer fresh insights into winning leadership and management strategiesand a variety of practical tools developed by business experts and industry peers that youcan apply in your business for greater success.

By attending you will:

n Connect with hundreds of forward-thinking mid-market and contract office furnituredealers, recyclers, installers and industry manufacturing and service partners.

n Identify and begin developing new business opportunities with current andprospective customers through OFDA’s flexible display and business meetings formatin a compact, networking rich environment.

n Discover how to implement strategies to expand revenues, proactively manageexpenses, retain key employees and structure your business for survival and subsequentgrowth as the economy and our industry rebound.

The Office Furniture Dealers Alliance (OFDA) is the industry association for office furnituredealers who are serious about improving the effectiveness and profitability of theirbusinesses. Membership is comprised of these leading-edge dealerships and their keybusiness partners - manufacturers, installers, and technology and other service providers.

OFDA’s annual Dealer Strategies Conference attracts principals and senior managers fromthese companies and the business meetings and display options outlined in this prospectusoffer creative ways for companies like yours to engage and build or expand businessrelationships with them. OFDA’s goal is to provide the most significant, valuable industrynetworking and educational event of 2009 aimed specifically at dealers and their keybusiness partners. In short, THE event that is most worthy of your participation this year.OFDA has selected an exceptional facility (Hyatt Regency Lost Pines Resort) to host thisyear’s premier industry event. For those participants who wish to extend their stay, we arearranging a golf outing for Saturday afternoon, October 3, and the Lost Pines Resort & Spa

offers a wide range of options and amenities.

Register at www.ofdanet.org/conference Today!

http://www.ofdanet.org/conference

ConferenceProgram Overview

Keynote Presentation:“Challenging Times Never Last: Resilient Companies and People Do!”

In today’s challenging market, closer industry collaboration and stronger business relationshipsamong dealers, manufacturers and key business service providers are essential ingredients forsurvival and future success. This year’s opening keynote speaker, Dr. Nate Booth, will provide aclear roadmap that you can apply in your business to identify and make the essential changes,while holding fast to your company’s bedrock principles and values.

Mid-Day General Session:Sales Mistakes CEOs Make…And How to Avoid ThemThis presentation is specifically designed for CEOs and focuses on helping senior executives diagnose salesprocessrelated problems and more importantly, how to cure them. Gilbert Cargill explores the areas of marketing, selling,and customer retention. Each CEO will receive a Sales Effectiveness Planning Guide, a self analysis of 17 parametersthat need to be addressed in order to maximize results. These include: compensation, sales management, forecastmanagement, working with independent channels, recruiting, and managing marginal employees. Each OFDAconference participant will receive a complete collection of CEO sales tools, which Cargill has developed during hiscareer. The sales "toolkit" that he delivers is frequently referred to as a "physician's desk-reference manual" for CEOswho want to sell more.

Opening General Session Panel Discussion: “Future of Distribution”

Several of OFDA’s manufacturing members have generously agreed to share their perspectives duringour conference on key trends, developments and initiatives shaping the future of the office interiorsindustry. Our high-level panel includes:

n Maxine Mann, President, Teknion LLC

n Lynn Utter, President, Knoll North America

n Michael Dugally, Chief Strategy Officer, AIS Inc.

n Todd James, Vice President, Global Sales, Haworth, Inc.

In today’s uncertain times, it is critical to understand significant trends and market shifts occurringin our industry’s diverse marketplace. Our outstanding panel of manufacturing company leaderswill offer practical insights based on their diverse experiences within and outside of our industry,as well as in North America and beyond.

This year’s OFDA conference also will feature additional general session presentations and morethan 20 breakout sessions, including panels made up of industry dealers, manufacturers and serviceprofessionals. Other workshops will be led by respected industry consultants and other experts, whowill share best practices in the areas of general and financial management, particularly strategies thathave proven successful in challenging economic environments. In addition, the program will includeinteractive presentations and discussion roundtables on such critical issues as cash flow management;leveraging new technologies for greater productivity and customer service; revenue forecasting inuncertain times; new business development in expanding government markets; developing, marketingand managing new services; and tools for profitable management of installation services and other areasof operations.”

Dr. Nate Booth



Conference Schedule & Educational Program – August 11, 2009 Update

NOTE: The Office Furniture Recyclers (OFR) network and other industry groups are co-locating their functions with the OFDA annual conference,and participants in those meetings will arrive on Friday, October 2 or Saturday, October 3. OFDA members are also invited to arrive in time toparticipate in a joint OFR-OFDA golf outing on the morning of Sunday, October 4 or to simply enjoy the many other amenities that the Hyatt LostPines Resort & Spa and Austin offer.

Special early-bird registration fees are in effect for all OFDA members, prospective members and members of the OFR, Facilities Service Network

(FSN), Workplace Alliance (WPA) and Workplace Furnishings (WPF) groups who are attending those groups’ sessions just prior to the OFDA

conference.

Sunday, October 4Event Registration 10:00 A.M. – 5:30 P.M.

Ballroom and Meeting Room Display Setup 10:00 A.M. – 5:00 P.M.

Technology Neighborhood Setup 10:00 A.M. – 5:00 P.M.

Business Meeting Suite Check-in 3:00 P.M. – 6:00 P.M.

Association Partner Meetings (OFR, FSN, WPA Ops) 7:00 A.M. – 5:00 P.M.

OFDA Business Workshops (break at 4:15-4:30 p.m.) 3:00 P.M. – 5:30 P.M.

Advance Registration Requested: [email protected]

Allen Oppenheimer, President, A.M. Oppenheimer, Inc.

Part 1: Business Valuation Process – A Step-by-Step Process Part 2: Business Exit Planning - It Starts Today!

Trish Brock, President, Trish Brock & Associates

Win More Business by Communicating Your Brand Effectively(Participants Encouraged to Bring Marketing Collateral and Best Practices to Share)

New Member/First-Time Participants Welcome Session 5:30 P.M. – 6:15 P.M.

Hosts: Jack King, OFDA ChairmanChris Bates, OFDA President

Opening Welcome Reception 6:30 P.M. – 8:00 P.M.

Hosts: OFDA Board of GovernorsMeet our Monday General Session Speakers: Nate Booth & Gil Cargill

Monday, October 5

Event Registration 6:30 A.M. – 6:00 P.M.

Opening Breakfast and OFDA Officers’ Welcome 7:15 A.M. – 8:15 A.M.

Keynote Presentation: 8:15 A.M. – 9:30 A.M.

Dr. Nate Booth, Author, Consultant and Executive CoachChallenging Times Never Last: Resilient Companies and People Do!

Networking Break 9:30 A.M. – 10:00 A.M.

Pre-Arranged Business Suite Meetings 10:00 A.M. – 12:30 P.M.

Technology Neighborhood – Company Presentations 10:00 A.M. – 12:30 P.M.

20 20 Technologies (Steve Compton, Director, Commercial Sales) 10:00 A.M. – 11:15 A.M.

Additional presentation pending 11:30 A.M. – 12:30 P.M.

Morning Educational Breakout Sessions (11:15 A.M. Break) 10:00 A.M. – 12:30 P.M.

Strategic Management/ Sales and Marketing Leadership

10:00 A.M. – 11:15 A.M. – OFR Hosted Panel Discussion – Recycling Office Furniture: State of the Business Today and GrowingOpportunities for Dealers

11:30 A.M. – 12:30 P.M. – “Different Economy, Different Sales Game, Different Sales Skills…What Are You Doing to Keep Your SellersFresh and Motivated?” (Debbie Junge, Junge & Associates)

11:30 A.M. – 12:30 P.M. – Building ‘Accountability’ into Your Company’s Culture (Jim Heilborn, Jim Heilborn Associates)




Financial Management/Survival and Profit Improvement Strategies

10:00 A.M. – 11:15 A.M. – Providing Solutions for Your Customers to Confront the Economic, Cash and Credit Crunch ( Dan Harkin andJaneen Waddell, Keystone Horizon Financial)

Operations/Installation Best Practices

10:00 A.M. – 11:15 A.M. – Installation Economics for Survival and Profitability (Barry Coyle, SolomonCoyle)

Technology Trends and Applications

11:30 A.M. – 12:30 P.M. – Social Media: the 21st Century Approach to Marketing Your Dealership (Kama Weinberger, IIDA, Q+E DesignSource)

Luncheon and General Session Presentation 12:30 – 2:00 P.M.

Gil Cargill, Cargill Consulting GroupRoadmap to Accelerating Your Sales Results in Challenging Times

Transition Break 2:00 – 2:15 P.M.

Pre-Arranged Business Suite Meetings 2:15 – 5:15 P.M.

Technology Neighborhood – Company Presentations 2:15 – 5:15 P.M.

2:15 P.M. – 3:30 P.M. - 20 20 Technologies (Steve Compton, Director, Commercial Sales)

4:00 P.M. – 5:15 P.M. – Presentation Pending

Afternoon Educational Breakout Sessions (Break at 3:30 p.m.) 2:15 – 5:15 P.M.

Strategic Management/Sales and Marketing Leadership

2:15 P.M. – 3:30 P.M. – Growing Your Business Profitably ( Larry Dillon, CEO, Wendover Corporation)

2:15 P.M. – 3:30 P.M. – “Different Economy, Different Sales Game, Different Sales Skills…What Are You Doing to Keep Your SellersFresh and Motivated?” (Debbie Junge, Junge & Associates)

4:00 P.M. – 5:15 P.M. - Strategies for Successfully Marketing and Selling New Services (David Solomon, Barry Coyle, SolomonCoyle)

Financial Management/Survival and Profit Improvement Strategies

2:15 P.M. – 3:30 P.M. – Roundtable Discussion: Forecasting Revenues and Cash Flow: Essential Survival and Management Tools (JimHeilborn, Jim Heilborn Associates)

4:00 P.M. – 5:15 P.M. – Financing New Sales of Furniture through Capture of Remaining Value in Customers’ Existing Furniture (LarryShapiro, Strategic Client Services, CORT)


2:15 P.M. – 3:30 P.M. – Leveraging Technology in Your Business for Greater Productivity (Panel Discussion; David Solomon,SolomonCoyle, Moderator)

4:00 P.M. – 5:15 P.M. – Social Media: the 21st Century Approach to Marketing Your Dealership (Kama Weinberger, IIDA, Q+E DesignSource)

Group Transportation to/from Downtown Austin 6:00 – 11:00 P.M.Special Evening of Dinner & Music (Advance Sign-Ups Requested and Strongly Encouraged)

Tuesday, October 6

Event Registration 7:00 A.M. – 12:00 P.M.

Opening Breakfast and General Session 7:15 A.M. – 9:15 A.M.

Future of Industry Distribution: Manufacturers’ Perspectives

Lynn Utter, President, Knoll North America, Inc.Maxine Mann, President, Teknion LLCMichael DuGally, Chief Strategy Officer, AIS, Inc.Todd James, Vice President of Global Sales, Haworth, Inc.Moderator: Jack King, OFDA Chairman

Networking Break 9:15 A.M. – 9:45 A.M.

Pre-Arranged Business Suite Meetings 9:45 A.M. – 12:00 P.M.

Technology Neighborhood Presentations 9:45 A.M. – 12:00 P.M.

9:45 A.M. – 10:45 A.M. – Understanding Wood Veneers - (Mike Clark, Eggers Industries) - .1 CEU AIA Credits

11:00 A.M. – 12:00 P.M. – Search Engine Optimization – Extending Your Visibility in Social Media Networks (Jit Gohil, Dijital Media)




Morning Educational Breakout Sessions (Break at 10:45 a.m.) 9:45 A.M. – 12:00 P.M.

Strategic Management and Sales & Marketing Leadership

9:45 A.M. – 10:45 A.M. – Selling Value in Today’s Price Competitive Market (Panel Discussion, Greg Nemchick, President & CEO,Workplace Furnishings, Moderator)

11:00 A.M. – 12:00 P.M. – How to Structure and Manage Your Services Business for Greater Profitability (Barry Coyle, SolomonCoyle)

Financial Management - Survival and Profit Improvement Strategies

9:45 A.M. – 10:45 A.M. – Maintaining Successful Banking & Lending Relationships in Tight Credit Markets (Moderator: Bill Coon, OfficeFurniture NOW!; Panelists: Kimberly Bronner, Vice President/Senior Business Relationship Manager, WellsFargo Bank Austin; Patrick Johnson, Sr. Vice President, First State Bank Central Texas; Ed Lette, VicePresident, Business Bank of Texas; Sam Thacker, Principal, Business Finance Solutions

11:00 A.M. – 12:00 P.M. – Repeated Session: Maintaining Successful Banking & Lending Relationships in Tight Credit Markets

Operations/Sustainability Best Practices

9:45 A.M. – 10:45 A.M. – BIFMA’s New Sustainability Standard and Level™ Certification Process (Tom Reardon, Executive Director,BIFMA)

11:00 A.M. – 12:00 P.M. – Significance of BIFMA’s New Sustainability Standard for Your Business and Customers (Mindy Claridge,LEED AP, National Office Furniture - tentative)

Vertical Market Opportunities

9:45 A.M. – 10:45 A.M. – Federal Government Procurement: Impact of the Economic Stimulus and Recovery Act on GSA’s OfficeFurniture Procurement (Mark Dunkum, General Services Administration, Director, Integrated Workplace Acquisition Center)


11:00 A.M. – 12:00 P.M.– Leveraging Technology in Your Business for Greater Productivity (panel discussion; David Solomon Moderator)

Lunch with General Session Presentation 12:00 P.M. – 1:30 P.M.

Speaker Confirmation Pending

Networking Break 1:30 P.M. – 2:00 P.M.

Pre-Arranged Business Suite Meetings 2:00 P.M. – 4:15 P.M.

Combined Local Dealership Tours (Advance Registration) 1:30 P.M. – 4:30 P.M.

2:00 P.M. – 2:45 P.M. – Office Furniture NOW! (Host: Bill Coon, Principal)

3:15 P.M. – 4:00 P.M. – Facilities Management Group (Host: Robert Keeton, Principal)

Afternoon Educational Breakout Sessions (Break at 3:00 P.M.) 2:00 P.M. – 4:15 P.M.

Strategic Management and Sales Leadership

2:00 P.M. – 3:00 P.M. – Win More Business by Communicating Your Brand Effectively (Presentation: Trish Brock, Trish Brock & Associates)

3:15 P.M. – 4:15 P.M. – Finding Top Quality Talent in Today’s Market – Beyond Survival (Jeff Brown, President, Comprehensive Search)

Financial Survival Strategies

2:00 P.M. – 3:00 P.M. – Furniture Leasing: A Powerful Tool in Cash-Short Times (Dan Harkin, Janeen Waddell, Horizon Keystone Financial)


3:15 P.M. – 4:15 P.M. – Social Media: the 21st Century Approach to Marketing Your Dealership (Kama Weinberger, IIDA, Q+E Design Source)

Networking Break 3:00 P.M. – 3:15 P.M.

Closing General Session: 4:30 P.M. – 5:45 P.M.

Department of Defense Business: Expanding Opportunities and New Roles for Prime Contractors and Subcontractors

Carol Elder, US Army Corps of Engineers

John Wuichet, US Army Installation Management Command

Moderator: Dave Branch, President, Facilities Connection

Closing Reception 5:30 P.M. – 7:00 P.M.

Conference Concludes 7:00 P.M.




“Business as usual isn’t business as usual anymore,” lamentsKathy Pear, founder of Citron WorkSpaces in Denver, CO.

With business anything but usual, Pear decided that a differentapproach was necessary to bring in business, and byextension, motivate her employees.

“We’re in survival mode and what we’re doing is selling moreused furniture and furniture that we can get closeout dealson,” explains Pear. “We’re doing anything we can do and notworrying about the volume.”

It took Pear a while to settle on this strategy, implementing itin May after five disappointing months. The strategy seems tobe working and Citron is coming off a strong June and July.More importantly, employees are feeling better about thecompany’s direction even if they weren’t initially enamoredwith the new approach. As bidding has become overlycompetitive, something had to be done.

“People are giving stuff away just to keep their doors open,”says Pear. “We’re doing fewer bids and lettingeverybody else fight over the scraps.”

At first employees questionedthe logic behind this app-

roach until they started to see the increase on theircommissions. Fortunately, money talks and Citron’semployees aren’t walk-ing, not that they’d haveany place to go.

Turns out thatselling more used

furniture while doingless volume is working for

Citron. It’s one antidote to aneconomic downturn, especially

since big volume projects eat upresources.

“We’ve lowered our expectations andaren’t beating ourselves up as much and

just trying to do the best we can in a badsituation,” says Pear. “I wish I had done this in

January.”

Pear has been through lots of small downturns in thepast but says she’s never seen anything like this before.


As the economic downturn continues, office furniture dealers look to inspire their employees.By Scott Cullen

Motivatingyour People in

Tough TimesWhen the going gets tough…well, you know what happens next. In an industry that’s been rocked by the economicdownturn, even the toughest in the furniture industry are finding that all the clichés in the world don’t do much tobring in business or ease frustration when most clients aren’t buying. Indeed, motivating employees, particularlysales reps, just got a whole lot tougher and even with the promise of economic stimulus dollars, times are stilltougher than tough. What some in the office furniture industry are finding is that the old ways of doing business andmotivating employees aren’t cutting it right now. Instead, new and improved, and drastic measures are necessary.

It hasn’t helped either that her majormanufacturer began tightening creditlimits when things really got bad.

“They were insisting on 100 percentpayment up front,” she says. “So whatdo you think we did, we stoppedordering from them,” she sighs.

Business at Florida Business Interiors(FBI) is down 20-25 percent this year. It’sa downward spiral that began in 2007and has continued with big dealsbecoming fewer and fewer in 2008, andevery one of those hotly contested by anumber of competitors. Of late, FBI hasexperienced a good month followed bya down month. Despite the roller coasterride, FBI president Denny Bowman ishopeful the company can continue anupward momentum and stay ready torespond to meet any pent up demandfor office furniture that does emerge.Meanwhile, Bowman is implementing athree-pronged approach to motivatesales people to seek out new businessand lay the foundation for futureopportunities.

Bowman’s three-pronged approachbegins with weekly meetings with salesstaff. When business started slowingdown a couple of years ago Bowmanhired a new business developmentperson—the second prong in FBI’sthree-pronged approach. The final prongwas hiring a PR firm to assist withbusiness development by getting thefirm’s name out in the community andhopefully at the top of many buyers’minds for upcoming furniture projects.

Meetings with sales personnel havebeen particularly helpful. “Every weekwe talk about what architects they’revisiting, who they’re taking to lunch,which interior designers or commercialbrokers they’re meeting with,” explainsBowman. “We discuss their oppor-tunities and how we as a group can helpthem go after each and everyopportunity and strategize on those

opportunities. Beyond that we talk aboutwhat everybody is doing to besuccessful.”

If all that sounds like Bowman preachingthe basics of blocking and tackling,that’s exactly what’s going on—mainlybecause Bowman believes that somereps had drifted away from those basicswhen business was good.

Sales reps are now encouraged to takeclients, commercial brokers and con-tacts within architectural and interiordesign firms to lunch at least once amonth or simply meet with them.

“We’ve asked them to dig out their olddatabases and encouraged everyone totouch base with all their existing andold clients to see if there’s anythinggoing on,” says Bowman. “It’sthe people who go out andtouch clients, take them tolunch, talk about their needsand show how they can helpsolve problems when thereare no projects or orders, thatwill be remembered whenthings start getting better andorders start flowing again.”

The company is monitoring thisactivity every single week, holdingeverybody accountable. It’s startingto pay off, even though Bowmanencountered some resistance from salesreps who found this approach a bit overthe top in a Big Brother-like way.

“We hire very entrepreneurialsalespeople and they are very good atwhat they do and can mostly do it ontheir own,” notes Bowman. “That workswonderfully when things are decent, butwhen things get tough you forget someof those basic prospecting skills thatyou need to survive. We are making surethey relearn them, reuse them andestablish new habits. These are thingsthey know how to do, but we’re justreawakening those skills.”

Bowman’s reps are finding that thisstrategy makes sense and that oldclients are coming back while newclients are appreciative that theycontinue to drop in even when there areno orders right now.

“I told them it would take six to ninemonths, but they are starting to see thefruits of doing this and monitoring thisand it’s my hope that this will become ahabit again like it was before times wereso strong in ’05 and ’06,” says Bowman.

Goodman’s Interior Structures inPhoenix has been through good times

and the bad. The onething Goodman’s

doesn’t do inbad times is

panic.

Instead it keeps the lines of communi-cation open with its employees whilefocusing on strategic planning andlong-term business goals.

“A big focus for us is to refresh andreengage our strategic planning processto make sure that everything is wellaligned,” says Brian Turner, humanresources director at Goodman’s. “Italso gives our team something to focuson beyond the day to day.”


Cover } continued from page 19


When the going gets tough it’s easy for negativity to set in andthe dealership looks to offset that by looking at the big pictureas opposed to just selling and installing furniture.

“We stress what we do as an organization and what makes usfeel good at the end of the day when we go home beyond justlocking another business dollar in,” explains Turner.

Employees are encouraged to focus on things that contributeto the growth of the organization as well as volunteer andcharitable projects that impact the community.

“That way, when folks talk about Goodman’s, employees areproud to say, ‘I work there,’” he adds.

Beyond strategic planning and reexamining business goals,Goodman’s works hard to keep the lines of communicationopen throughout the organization.

“We’ve really tried to increase the amount of communicationwith our employees,” says Turner who points out that in a lotof companies, communication is one of the first things tobreak down when times turn tough.

Those communication initiatives encompass staff meetingsand an internal newsletter that is light and fun and helpsemployees better know their co-workers. This also helps buildstronger internal relationships.

Management training is an area where many organizations cutback on in tough times, but not at Goodman’s.

“We have a lot of solid individual contributors who getpromoted through the ranks based on their expertise, but ifwe don’t take the time to develop and inspire our folks at thenext level and in a management or leadership role, we’re nothelping them,” says Turner.

In addition to management training, Goodman’s also has awellness program in place and kept it going, even as otherorganizations were trimming back during these tough times.

“That’s been a big thing to help with folks, particularly withstress management and taking care of themselves becausethere’s always going to be another day to make anotherdollar,” says Turner. “And if we’re not taking care of ourselvesduring that process, not only are we a drain on our family, buton our friends and co-workers. We found that’s helped createa bond between our employees.”

How does Goodman’s gauge its success in communicatingwith, motivating, and growing their employees? Turner reportsthat the company participates annually in a Best Places toWork contest.

“We aren’t only competing with ourselves but on the bestpractices side in a number of industries,” he says. We can

track how we progress year over year and identify areas wherewe can improve.”

No doubt being employed by a company that’s consideredone of the best places to work in Arizona makes for amotivated staff.

Convenience Office Supply in Austin, Texas, launched itsfurniture business in 2004 and even though they’ve seen theircommercial business sink like a stone of late, their federalgovernment business seems to be doing well and keeping thefurniture business afloat. President Karen Bogart concedesthat she hasn’t had to do anything special to motivate herfurniture reps, mostly because they’re flying high after landinga couple of large accounts.

“They’re looking at government clients a whole lotmore—federal, state, county and school districts--so they’rereally going out there and finding the business now,” saysBogart.

For Convenience’s furniture reps, a little bit of success is allthe motivation they need. That said, Bogart admits that heryounger reps in their thirties are a little freaked out aboutwhat’s happening right now.

“We keep telling them it’s cyclical and it’s going to comeback,” she says.

No matter how creative some dealers are in trying to motivatetheir employees, sometimes Bogart’s approach is all one cando to motivate employees when times are tough.

Scott Cullen has been writingabout the office products, officefurniture, and office equipmentindustries since 1986. He hasbeen working as an indepen-dent writer and editor since1997, and is currently editorialdirector and managing editor ofOfficeSolutions and OfficeDealermagazines as well as publisherand editorial director of the new ezine, Imaging SolutionsReseller. Scott is also a frequentcontributor to ENX magazine, Repro Report magazine, andMercer Business magazine, and has written for various officeequipment manufacturers and market research organizations,focusing primarily on product and dealer issues.


Cover } continued from page 20

Rewards and recognition. While money is important, studieshave shown that employees ranked recognition above monetaryrewards. Every employee is critical to the success of a company,so make sure you have a program in place that recognizes theefforts of ALL employees and NOT just the sales staff.

The four P’s. Praise in Public, Punish in Private. People love tobe recognized in front of their peers and that can have a greatcarry-over effect. But nothing de-motivates and embarrassesothers faster than seeing a fellow employee “dresseddown” in front of everyone else. Besides being a realdistraction, it can be a productivity killer as well.

Provide leadership. Everyone is looking fordirection and a feeling that someone is incharge and knows how to take the companywhere it needs to go. Sharing informationwith the staff helps to keep theminvolved and gives them a betterunderstanding of the company’sdirection. Information andknowledge are as important asrewards when motivating thestaff. Dangling a carrot in front ofa horse will possibly get it tomove forward, but the driver stillneeds to know which directionit wants it to go and needs tosteer it in that direction.

Goals and objectives. Settinggoals and objectives will giveemployees a sense of direc-

tion and a purpose every day. There is great strength in feelingthat you are all involved in the same mission. Reaching a goaltogether and then celebrating the attainment together is a greatway to unite people and lift their spirits.

In the previous article, Motivating Your People in Tough Times, Scott Cullen discussed how dealers are boostingmorale, providing sales alternatives or setting realistic forecasts as three ways companies can motivate theiremployees during difficult times. Motivating employees can be challenging even in the best economic times,especially considering that what works for one employee may not work for another.

Zig Ziglar was one of my late father-in-law's favorite motivational speakers. After a speech one day, the famousmotivational speaker was approached by someone in the audience who said: "Zig, it was a great speech,but...motivation doesn't last." Zig said, "Bathing doesn't either. That's why I recommend it daily!"

Zig loves quotes and believes that the right quote can provide "a-ha" moments and can help to reinforce apositive attitude.

Below are some additional ideas that you can use to help heighten employee confidence and give yourcompany a business boost:

Jim Heilborn is a businessconsultant and speaker

specializing in the officefurniture/products industry,

working with dealers,manufacturers, and service

providers. For more informationplease visit his website,

www.jheilbornassociates.com.He can be reached directly at

916.434.8711 [email protected].

Motivating EmployeesSomething to Consider

By Jim Heilborn



http://www.jheilbornassociates.com


Set expectations. Setting expectationsgives employees a benchmark by whichto measure their performance. It is a wayemployees can measure themselves andhelp instill a sense of accomplishmenteven without the benefit of a more formalprogram. It is much easier to getmotivated to do something when youknow what is expected.

Orientation. Too many companies havenot invested the time to create one of themost important motivational tools for newemployees…a proper orientation program.Poor orientation is often the root cause ofnew employee turnover and managementis usually at fault. They are so focused ongetting the new employee working thatthey spend little or no time getting themacclimated to their new environment,fellow workers, procedures, or even thejob expectations. No wonder they fail.

Training. Like orientation, ongoing train-ing is too often an afterthought…and toomany times the casualty of a downeconomy. But it is usually a mistake to cutit off entirely. The right training can getpeople reinvigorated and energized, evenin the face of adversity. Training oftenteaches people new skills or alternateapproaches that help them to overcomethe obstacles that stand in the way oftheir reaching their goals.

Help your people to succeed. Whilesalespeople are hired specifically tocreate and develop their own business, agreat deal of loyalty can be engenderedby providing them with some leads…especially in these tough times. Leads arenot a right, but a privilege…so theyshould be earned by meeting somecriteria. Receiving good leads that resultin sales and commissions can be apowerful motivator.

Be a presence at work. Feeling like youare part of something important andmeaningful has the power to motivatepeople to accomplish great things. Thinkabout the 1969 Mets or the 1980 Olympic

Men’s Hockey team. What would havehappened if their managers didn’t showup for practice and left it to the players todo their own thing? It still takes aninvolved leader…and working side-by-side with the boss can be motivating (orde-motivating depending on theirpersonality). There are very few peoplewho feel motivated to work for a bosswho starts his or her day at 10 a.m. andwaltzes out at three while everyone elseis working till six. The same applies rightnow to the bosses who still take a lot ofvacation time while complaining abouteveryone else’s productivity.

Provide the right tools. Although thebudget must be considered, providingyour staff with the right tools to do the jobcan be a strong motivator. It is not unusualfor employees to feel that they cannot doa good job because they are hampered byold, slow, or broken tools. The right toolscan increase productivity and improve theway work is conducted. Working with theright tools often prevents frustration andremoves the excuses and barriers togetting the job done.

Much of the conflict and stress betweenmanagers and employees is caused by alack of the right tools. Tools can beanything from computers to drill bits…software to self-tapping screws. Knowingwhen they get to work in the morning theywill have tools they need to get the jobdone helps people get motivated to gettheir work started and completed…just asnot having the right tools can lead tocomplaining, excuses, lost productivityand down time.

Want some additional ideas? Here are theresults, in order of preference, from astudy that asked the question, “What doemployees want from their jobs?”

n Full Appreciation for Work Done

n Feeling "In" on Things

n Sympathetic Help on PersonalProblems

n Job Security

n Good Wages

n Interesting Work

n Promotion/Growth Opportunities

n Personal Loyalty to Workers

n Good Working Conditions

n Tactful Disciplining

Keeping your staff motivated is critical…and it is not just about performance, butjust as often about employee retention.

Even though it may not be possible orpractical to provide every employee withthe specific motivation they want, one ofthe best ways to determine what willmotivate the majority of your staff is toask them. It can be done one-on-one orthrough surveys.

Gather the information and create a planthat is implementable. BUT…be preparedto do something…take some action…asasking and then not trying anything canbe an even bigger disappointment and anobstacle to motivation.

When I do training or speak to groups, Ioften refer to the term W.I.I.F.M. - what'sin it for me... meaning of course, what'sin it for the customer or your lead source,or even your boss or employee. I chal-lenge the group to put themselves intothe other person’s mindspace andconsider the situation from their point ofview. Why would they need your productsor services? How would it help them orenhance their situation? Asking them toexplain a "win" for them, in their terms, intheir frame of reference, will often changethe nature of the relationship into a morepositive one.

This doesn't just apply to selling. Theowner who helps his or her staffaccomplish what they need will often reapgreat benefits. The employee who helpshis manager reach his or her goals willoften be rewarded.

Zig Ziglar said it so very well, "You canhave everything you want, if you willjust help enough other people get whatthey want."


Heilborn } continued from page 22

Friends and competitors for manyyears, Jim Vaughn of Imaginoffice,along with Harvey McCain and MarkTodd from Corporate DesignSystems touted their productofferings to the entire state ofAlabama and into the Floridapanhandle.

An opportunity from Haworthsweetened years of mergerconversation and was the catalystthat would transform this dream intoa reality. Two years, three teams ofaccountants and attorneys, eightfacilities, six showrooms, and twowarehouse spaces later, Innerspaicewas formed in January 2009 as aSubchapter S parent corporation

with the three companies operatingas LLCs under the name.

Combining these three companiesinto one was no small feat. Therewere questions about employees,payroll, benefits, commissions, andso much more but today, eightmonths in, operations are runningsmoothly and when Innerspaicetakes the lead and the LLCs aredissolved at the end of December,Innerspaice is poised to positionitself among the largest dealers inthe southeast.

Built on the success of the threeindividual dealerships with combinedsales of approximately $40 million in



DEALERPROFILE

They say that good things come tothose who wait. And, after threeyears of planning, strategizing,

meetings and attorneys,Innerspaice’s wait is almost over.Within the next few months, the

culmination of a merger betweenImaginoffice and Corporate Design

Systems and the subsequentpurchase of Alabama BusinessFurnishings, will hit the ground

running with all three companieshoused under the Innerspaice name.

By Alicia Ellis

2008 (a 20% increase over 2007),Innerspaice Architectural Interiors opensthe doors to furniture sales through adedication to non-traditional construc-tion and sustainable products.

“We have dedicated ArchitecturalInteriors Specialists that do nothing butconsult with contractors to developraised flooring, demountable walls,modular electrical and other similarproduct opportunities, said principal JimVaughn. “This ultimately leads us towhat used to be the core of ourbusiness…selling office furniture. Theability to sell more products to morepeople is the best path for growth in thiseconomy and we are growing!”

This dedication to architectural interiorsand sustainability gives Innerspaice theability to work with contractors at thevery beginning of a project and allowsclients to take advantage of theaccelerated depreciation that comeswith use of raised flooring anddemountable walls.

“Reduced construction and electricalcosts, plug & play functionality, easyreconfiguring and earning LEED creditsall play a role in getting the sale,” saidVaughn. “The ability to act as asubcontractor allows us to come in early

and once the workspace has beenconstructed, we can sell thecomponents and furnishings that fit withthe modular environment.”

And, sustainable and cradle-to-cradlecertified products are fast becoming a must-have for many of these projects. “It’s like a switch was flipped and everyone’s talking aboutenvironmentally-friendly products,” saidVaughn who explained that part ofInnerspaice’s new company focusincludes a commitment to sustainabilityin their offices and a redesign of all theirshowrooms with the goal to becomeLEED-certified.

With more than 100 employees and asales staff of 29 combined, Innerspaicehas spent the past eight monthsdeveloping company-wide policies andprocedures.

“We begin by learning from each otherwith a marketing theme ‘the power ofthree become one,’ and with threeindependent groups coming together,we have a lot of ‘best practices’ tomeasure against,” said Vaughn, whoexplains how compensation plans weredeveloped to focus on the accomplish-ments and internal communicationsfocused on highlighting significant wins

to recognize team members andencourage discussion among allemployees.

“A salesperson in our Fort WaltonBeach, FL office can now read about asalesperson in Huntsville, AL who won aproject that may be similar to one theyare pursuing,” said Vaughn. “Theimmediate discussion that followsextends an invaluable education andincreases the chance of winning again.As a company, we are our own bestresource.”

Despite the economy, Innerspaice’sproject-driven approach to sales hasshown no signs of slowing. “The bestway to win is to listen,” said Vaughn whosaid that setting realistic expectationsabout Innerspaice, its services and itsproducts enables customers to see thevalue in the company and stressed thatnow is not the time to be conservative.

“The retention rate of talent in our groupis unbelievable. We simply find ways tokeep every team member interested andhappy with their jobs and, as a result,people are literally on a waiting list tocome to work for us. When things getbetter, we will be ready and intend oncontinuing to grow.”

Project Profile } continued from page 24

The title of an article in last month’s OFDealer caught myattention: Economic Downturn Could Change the Office

Furniture Industry Forever. The title—particularly the word“could”—is an understatement, but fortunately most

leaders and managers in the industry are taking noticeand not hanging on to illusions or false hopes.

Current events are creating major changes within our industry. As I write this column, in this week alone, dealerssmall and large have failed, and major contract furniture manufacturers have announced new record drops inrevenue.

Think back to the three-year crisis that began in our industry in the first quarter of 2000 and which, by the end of2003, led to a drop of almost 40% in shipments.

Now, within a period of just three to four months—not three years—our industry has plummeted to a percentagelevel comparable to the past—with no end in sight. And this collapse has occurred ten times as fast as in thebeginning of this decade.

While a few dealers are holding their own or showing only slight declines (a very few are showing increases), mostare reporting a significant drop in revenue, some as much as 70%, and many are in financial crisis. Without question,the dramatic changes taking place in our industry today demand unprecedented restructuring, financial wisdom(which I covered in earlier columns this year), and leadership.

During this crisis and when the industry recovers—remember, our industry will lag the national economicrecovery—there will be a new style of leadership. The result of that new leadership will determine the future ofdealers and manufacturers.

I’ve written before about old paradigms and new prevailing paradigms, but primarily in terms of emerging industrypractices and trends. It’s equally important to think about “personal” paradigms of past habits, behavior andmanagement practices that no longer work today.



Bill Kuhn, principal ofWilliam E. Kuhn &

Associates, is a notedindustry consultant, writer,and speaker with over 35

years of industryexperience. He consults

with dealer principals andtheir management teams

in areas of strategicplanning, leadership and

organizationaldevelopment, marketing,

financial management,valuation and merger/ acquisition. For more

information, contact Bill byphone 303-322-8233, fax303-331-9032, or e-mail:

[email protected].

LeadinginTimes of Crisis

know thyselfLeadership’s #1 Commandment

By Bill Kuhn


For dealer principals, a personal paradigm shift is occurring andwill continue to occur—a change to a new way of thinking andadaptive behavior and leadership styles.

In last month’s column, I listed seven factors of effectiveleadership (see table). These factors can be grouped into twocategories: managing one’s self and leading and directing yourdealership.

It’s time, and I emphasize—for the sake of your dealership’ssurvival and success—that you look hard at yourself. Yourcompetence, your actions, and your behavior will determine thesuccess or fate of your business. Sadly, I’m seeing failures andfloundering in our industry that need not be.

Factors for Effective Leadership

Managing One’s Self

� Know yourself

� Possess a strong desire to achieve

� Manage yourself

Leading and Directing Your Dealership

� Set a clear vision and direction

� Become a sensor (socially aware and able to empathize)

� Delegate and empower

� Be decisive, act promptly

Do you know yourself?

If leadership’s first commandment is to “know thyself” asprincipal or the leader of a dealership, how aware are you of whoyou really are? While most would answer, very self-aware, mostresearch shows that only about 10% should actually give thatanswer.

Have you made a realistic self-assessment to determine yourfunctional and technical competence (in sales, marketing,operations, finance and management) and identify your realstrengths and weaknesses? Perhaps you might prepare aperformance appraisal or job resume for yourself.

But now comes the much tougher questions that involve somedeep soul-searching. Every one of these questions must becarefully thought through by any leader of a dealership:

Are you truly committed and involved in your organization(including approaching, not avoiding difficult situations andcrises)?

Do you have a strong desire—a passion—to achieve, andis that evident to your staff?

Are you highly focused on doing the right things, putting firstthings first and changing with the times, or are you mired inthe economy?

What is your level of self-confidence, your own sense ofself-worth and capabilities?

Are you highly attuned to your inner signals and how theyimpact your organization?

Can you truly read your own emotions?

How do you really behave (including self-discipline andself-control) and how would others—employees, customers,contract furniture management personnel and outsideadvisors—evaluate your behavior as a role model?

Do you seek and get outside advice and consultation whenneeded?

While dealers may have failed recently because of financialconditions triggered by the economy, my own experienceindicates that the cause of most dealers’ failing is because theirleaders have not asked themselves these questions anddetermined how to lead and when to get help.

What is your leadership style?

There is no one perfect leadership style. You probably tendtowards one of the six leadership styles mentioned by therenowned author and behavioral psychologist, Daniel Goleman.I have found no better book on leadership than his book titled,Primal Leadership, Learning to Lead with Emotional Intelligence.In the company workshops I have conducted, this book isrequired reading, and participants generally agree it is a realeye-opener.

Think about which of the following six leadership styles fit youbest, understanding that any one of these may be appropriatein a particular situation. You don’t need to practice all six, butyou will likely need to use differing styles at times. As Golemanwrites, “leadership and emotional intelligence can be learnedand improved at any age.”


Kuhn } continued from page 26


1) Visionary. This style motivates people and buildscommitments, is appropriate when change requires a new visionor when a clear direction is needed. (Quite applicable today.)

2) Coaching. This style focuses on personal development andis appropriate for improving performance by building long-termcapabilities. (If you want the best performance from youremployees especially if there have been reductions in staff, don’tfall into the trap of thinking that you don’t have the time tocoach.)

3) Affiliative. These leaders are concerned with people, creatingharmony, and building relationships. It is appropriate whenmotivating during stressful times, strengthening connectionsand repairing rifts within a team. (This style should not be usedalone and can be used very effectively in conjunction with thevisionary style.)

4) Democratic. A democratic leader values people’s input andgets consensus and commitment through participation, resultingin teamwork and collaboration. It is appropriate when buildingconsensus and getting valuable input from employees,particularly when a leader is uncertain about what direction totake. (The democratic style is a slow process, not always

appropriate in turbulent times, and leaders need to make sureadvice comes from informed and competent sources.)

5) Pacesetting. This style sets challenging and exciting goalsand demands high standards of performance. It’s appropriatewhen and only when there is a highly motivated and competentteam. (Caution: This style sounds admirable but relentlessdemands can create high levels of stress and anxiety.)

6) Commanding. The command and control (military) style ofleadership was common in business in the 20th century. It isappropriate only in certain situations of crisis, emergency, andurgent turn-around. (This style has the highest negative impacton climate and corporate culture and used with extremecaution.)

For furniture dealers and manufacturers, the stakes are thehighest I have ever seen in my decades in this industry and agreat sense of urgency is required.

Future columns will discuss the leadership planning, strategy,actions, timing, and development of other leaders in theorganization. But it all begins at the top—with the dealerprincipal acknowledging and being committed to the #1leadership commandment: Know thyself!


Kuhn } continued from page 27

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Selling office furniture has become problematicin this economy. As many businesses becomereluctant to purchase anything beyondcommodities, contract furniture is no longeressential.

Project business requires a longer consultativeprocess, has become harder to find, isincreasingly competitive and in many cases,those projects are not as large or as lucrativeas they were a short time ago.

Contract dealers have reported projectbusiness to be off as much as 40% in the firstpart of 2009. As business moves into the thirdquarter, the trend is slowly leveling out, but notenough to lift spirits or sales sufficiently tochange the day-to-day contract furniturebusiness.

“The rules of the game are changing,”suggests Rich Aievoli, vice president/generalmanager, furniture at United Stationers. “Theproject aspect of this recovery will take longerto come back than the small, medium andlarge transaction.”

CWC-Atlanta reported a 10% decline inbusiness last year. “Looking back that waspretty good compared to this year,” says ScottMarshall, vice president/sales. “We had a goodfirst quarter because we had some jobs in thehopper, but I will tell you that it is rough outthere right now.”

CWC is still landing some project business butthings are more budget conscious than theywere in good times, and the number ofcompetitors vying for the business has grownsubstantially.

“There are projects out there, people aremoving and companies are relocating—it’s justharder to find them,” says Andy Stern,president of Andy Stern’s Office Furniture, Inc.With four retail showroom in Washington, D.C.,and the surrounding suburbs, Stern says thebusiness operates as a mid-market contractdealer. “A lot of our work is smaller to mid-sizeprojects.”

At Harris Office Furniture in Roanoke, VA, theoutlook isn’t nearly as grim. “SouthwestVirginia is somewhat insulated,” says DougHyre, president of Harris Office Furniture.“Other than the market being a little soft,there’s not a lot of noticeable change. Thereare still projects happening and while one ortwo have been delayed, by and large most ofthem seem to be going right on through.”

The focus at Harris is primarily contractprojects but the dealership still has walk-incustomers that buy home office furniture orindividual items such as chairs or file cabinets.

Diversification has been the root of success forall of these dealers.

Regardless of economic conditions, they areable to expand sales efforts beyondtop-of-the-line contract work and pull in a fullrange of mid-market opportunities. Similar toother contract furniture dealers, CWC relies onUnited Stationers for a majority of themid-market furniture it sells. Marshall statesthat CWC leaves no furniture opportunityunexplored, with showrooms that are open tothe public and walk-in customers.


theLastword

michaelchazinCommunications ManagerUnited Stationers

Contract DealersPursue Alternatives

to Drive Sales

With projectbusiness in aslump, dealerscan sell their wayout of thisrecession usingwholesalerresources.



Last word } continued from page 29

“We can talk about mid-market all day long,” said Marshall. “If

we have a customer that needs something quick, clearly I have

to go with a local source. If somebody needs ten offices

tomorrow, we can deliver it, and United is going to be more likely

than anyone to have it here. Obviously, I don’t want to get into

the stocking business; carrying inventory is never good for a

dealer, but particularly not in times like this.”

Andy Stern’s Office Furniture doesn’t maintain a warehouse or

a fleet of delivery trucks and outsources services such as

receiving, storage, shipping and setup.

“I rely on United Stationers to be my inventory subcontractor,”

says Stern. “We tell everyone that we offer a huge selection of

office furniture with large quantities in stock and immediate

delivery. We rely on United to provide that, but as far as our

customers know, we do it.”

United has the depth of inventory, next-day delivery capabilities

and a full array of marketing tools to simplify dealer efforts.

“When you have a customer that needs 20 of something, and

needs it quickly, you know United is going to have it,” said Stern.

At Harris Office Furniture, United Stationers helps satisfy the

immediate gratification factor that some of its customers bring

to the table. “If they want it right away that’s when we use United

Stationers,” says Hyre. “We’ve had people want to outfit seven

offices by the end of the week. The only way to get that is

through United Stationers.”

Hyre uses United’s mid-market furniture catalog as a lead

generator, leveraging the catalog’s broad offering as an entry

point with many clients. Sometimes, a customer might be

interested in a chair pictured in the catalog but eventually ends

up ordering a similar product from another company that Harris

represents.

“Still, it is probably the one catalog we give out the most,” says

Hyre. To help generate sales, his salespeople hand-deliver the

catalogs to accounts.

CWC uses United’s Mid-Market Furniture catalog as a tool to

diversify the company’s approach. This summer, CWC ordered

United’s 16-page Alera flyer for the first time. It features

aggressive consumer pricing on selected Alera furniture items,

a United Stationers’ furniture brand.

“Quite frankly, these are different times,” says Marshall.

“Accordingly, different approaches are needed. We need to have

more people on the street to drum up day-to-day business.”

The Alera flyer offers a great vehicle to get into the marketplace

with a price advantage. “And it is a pre-built tool,” Marshall adds.

“I don’t have to spend a lot of my marketing time and funds to

build it.”

One way to gain an advantage in the marketplace is through a

price-oriented promotion, as more buyers are choosing to trade

down. “We had two projects opt for lower-end and refurbished

product instead of new Herman Miller,” says Hyre.

The rules of the contract furniture business are in flux and the

market is evolving. “United Stationers can help contract furniture

dealers to sell their way out of the recession faster with access

to a wide range of products,” explains Aievoli.

Having access to United Stationers’ broad product mix means

that dealers can consolidate their ordering. “If a customer needs

to outfit three different areas in an office, they can look at our

portfolio and buy from multiple manufacturers,” said Aievoli.

“Dealers place one order with us and get one consolidated

delivery and one consolidated invoice.”

By increasing marketing and using a wholesaler’s broad product

line-up to their advantage, dealers can successfully expand their

business—even in a down economy.

Keep Up On All The Office Furniture Industry’s News

www.ofdanet.org or call

800.542.6672 to Sign Up!

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