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OFDealer July 2009 Issue from Office Furniture Dealers Alliance (OFDA)

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Page 1: OFDealer July 2009

Also in this Issue:Project Profile: National Audubon SocietySeating SpecialQ & A with BIFMA

See Page 12

Page 2: OFDealer July 2009

Office Outfitters & Planners, Colorado Steelcase Dealer, Marks 25th AnniversaryIn Grand Junction, CO, on Colorado’s Western Slope about 250 miles westof Denver, Duncan Rowley and his team are gearing up to celebrate theirdealership’s 25th year of service.

The dealership was founded in 1984, and drew much of its business inthose early years from a nearby regional hospital and the local policedepartment.

Today, healthcare and local government remain key markets, says Rowley,and while he reports the dealership’s general commercial business is veryslow, the government market remains strong. “We’re finding more GSAwork today than we ever have,” he says happily.

A Steelcase dealer since 1989, Office Outfitters, says Rowley, hasresponded to the challenges of a changing industry by broadening itsproduct mix to embrace more mid-market offerings.

“The mid-market is where we make our living today,” says Rowley, whopoints to Steelcase’s Turnstone brand products and the dealership’smembership in the WorkPlace Furnishings organizations as key resourcesthat allow him and his team to respond effectively to increasingly tightbudgets.

Despite the challenges of the past year or two, Rowley says he remainsoptimistic about the future. “Last year was a rollercoaster and the first fourmonths of 2009 were dreadful,” he says candidly. “But the market isstarting to break loose with a couple of nice projects coming in and we’reslowly getting a sense that things are moving in the right direction.”

NBS, Michigan Dealer, Expands Through Acquisition of Fellow Steelcase Dealer Allied Office Interiors.These are busy times for NBS. Last month, we reported on the Troy,MI-based dealer’s day-long Healthcare Fair event. Now comes word thatNBS has expanded its geographical coverage significantly with theacquisition of Allied Office Interiors, a fellow Steelcase dealer withoperations in Bay City and Lansing, MI.

Richard Schwabauer, owner of NBS said, “We are excited to announcethat NBS and Allied Office Interiors have merged to form one, dynamic andinnovative Steelcase dealership to serve Southeast Michigan, East CentralMichigan and Northern Ohio.

“An evolved NBS has emerged comprised of the best and brightestprofessionals in our business who are committed to this industry and itscustomers,” Schwabauer added.

Following the deal, NBS now has some 117 employees and projectedannual sales of $70 million.

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newsToday’s ToughBusiness ChallengesMake OFDA’s 2009

Dealer Strategies Conferencea Must-Attend for Your DealershipIn just a few short months, OFDA will host its 2009Dealer Strategies Conference in Austin and you needto be there. It’s that simple.

It’s never hard, particularly these days, to come upwith reasons not to attend. “We’re watching everypenny” … “I can’t afford time out of the office” …“How can I justify spending money on this whentimes are as tough as they are right now?”

You need to be in Austin this October preciselybecause times are as difficult as they are. Yourbusiness won’t grow or be better able to withstandcurrent challenges because of the $1,000 or so youmight save by not attending.

But just one or two of the many good new ideas thatyou pick up at the meeting could well make adifference and that’s why you need to be there.

Putting it simply, you will have no better opportunityall year to tap into the collective knowledge base ofthe dealer community—and with OFDA, it’s theentire dealer community, not just one manu-facturer’s dealer network—and explore togetherhow best to respond to the challenges we all face.

There isn’t a dealer out there who isn’t looking foranswers to some very tough questions right nowand who doesn’t know the most likely way to findthem is by sitting down with other dealers andtalking them through.

That, at its most basic level, is what the OFDA DealerStrategies Conference is all about. You’ll find moredetails and an online registration form on theassociation’s web site at www.ofdanet.org but thebottom line is this: The Dealer Strategies Conferenceoffers an extraordinarily effective way to discovernew ways to strengthen your dealership at a timewhen it needs it most.

For the long-term health of your business, this is oneyear you can’t afford to miss it.

Simon DeGrootEditor in ChiefOFDealer

JULY 2009 OFDEALER PAGE 2

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Education, PR Efforts Bolsters Expert Resource Positioning for MBI Business Interiors, Memphis Steelcase DealerWith business as fiercely competitive as it is today, dealers needto be proactively searching out opportunities to positionthemselves as workplace experts for their clients and prospects.One dealer who’s been doing an impressive job in that area oflate is MBI Business Interiors in Memphis, with a combinationof ongoing education and a carefully targeted PR effort.

MBI recently sponsored a presentation that drew about 30members of the A&D community to hear Steelcase workplaceconsultant Isabel Stoltzman speak on acoustics in theworkplace.

The presentation, which came with the extra appeal fordesigners of Continuing Education Units, covered the basics ofsound control, options for minimizing distracting noise andimproving the overall acoustic quality of office space.

“At MBI, we’re very much focused on doing as much as we canto grow our relationships with the A&D community andeducation represents a key part of that effort,” said businessdevelopment manager Emily Rolwing. “It was a very timely topicand we were very pleased with the response.”

The dealership also found a way to raise its profile in the largermarketplace as well, when Rowling and some of her co-workerswere quoted extensively by a Memphis Business Journal on thegrowing trend towards shared workspace design.

“In all the places I’ve seen it installed, it’s been beneficial to thecompany,” Rolwing told the publication. “The productivity isincreased.”

“We find ourselves designing a lot more collaborative spaces,”added MBI’s VP of sales Michelle Bingham. “I think it’s becausepeople are finding out that when you can bring a group of peopletogether and share ideas, you’re getting more and better ideasto market faster.”

And now, thanks to their own outreach efforts, chances arewhen Memphis businesses go looking for ways to boostproductivity and morale, MBI is going to be at or near the top ofthe resource list.

Office Interiors, Indiana Herman Miller Dealer, Co-Sponsors Local Green Expo As has been the case for so many dealers of late, environmentalissues were front and center recently at Granger, IN-based OfficeInteriors, Inc., when Maria Slager and her team co-sponsoredGreen Expo 2009, a day-long event that focused on “exploring,educating and inspiring green living, sustainable energy andmore viable lifestyles.”

The event was organized by a local Public TV station and drewmore than 300 attendees who heard presentations on topicssuch as The Legal Side of Green, Cool Cities & Towns and theBusiness of Sustainability, and toured an exhibit featuring localcompanies and their green offerings.

Office Interiors sponsored the keynote speaker for the event,Diane Bunse, an environmental specialist at Herman Miller whomanages the environmental management system on themanufacturer’s main campus.

“There’s no question that environmental issues are becomingmore and more important in our market and that was very clearfrom this event,” said Slager. “We gained some valuableexposure as a sponsor and reinforced our own position in themarket as a green resource for our clients.”

Services and Accessories Sales Efforts Bring Welcome Dollars to Bottom Line for Color Art, St. Louis Steelcase DealershipWhen business is as tough to find as it is these days, it’s moreimportant than ever to maximize the value of every customer onthe books.

In St. Louis, Missouri, the folks at Color Art Integrated Interiorshave found a way to do just that with a program that puts aspecial emphasis on building sales in the services andaccessories area.

For nearly a year now, Color Art’s Kevin Hobbes has beenoperating as a dedicated sales rep charged with the mission ofgoing in either in tandem with the dealership’s other sales repsor coming in after a substantial order has been booked, tocapture precious sales and profit dollars that might otherwisebe left on the table.

“We have an outstanding sales team but with a focus on largeproject business and big orders, they really have other fish tofry,” he explains. “There are good margins in the services andaccessories business, though, and we really wanted to makesure we got our share.”

And while the incremental business that comes Color Art’s waythrough this effort may not be huge in isolation, all those ordersfor desk pads, recycling systems, signage, artwork and morestart to add up quite nicely, says Hobbes.

And that’s before Hobbes starts talking about reupholstering,panel cleaning, wood touch-ups and other services.

“We just booked about $27,000 in additional business from oneproject that included just about everything from trash cans togrommets, wire managers and hooks for the panels,” hereported.

Artwork, says Hobbes, can be especially lucrative, with ordersup to $10,000 not that unusual.

And as an added bonus, Hobbes’ efforts not only bring welcomenew dollars to the dealership’s bottom line but also serve tominimize the chances of a not-so-friendly competitor getting afoot in the door with a valuable client.

And of course, with budgets stretched tighter than they havebeen in a long time, the new approach has given Color Art aneffective way to maintain and strengthen customer relationshipseven if new product orders aren’t in the client’s immediate plans.

JULY 2009 OFDEALER PAGE 3

Dealer News } continued from page 2

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Page 5: OFDealer July 2009

BIFMA May Numbers Show Continued Industry WeaknessThe Business and Institutional Furniture ManufacturersAssociation (BIFMA) released its market statistics for May lastmonth and to no one’s great surprise, there were still scantsigns of any significant improvement in the marketplace.

While BIFMA reported a modest improvement in orders in Maycompared to April, May shipments continued the downwardtrend seen with depressing consistency so far this year.

BIFMA estimated May orders fell 33%, compared to a 2%increase posted last year but up slightly from April’s 38%decline. May shipments fell 36%, compared to the 30%decline in April.

According to industry analyst Budd Bugatch of RaymondJames & Associates, the May shipments decline represented“the largest single month year-over-year percentage declinewe have ever witnessed for the industry (our data file datesback to 1978).”

Bugatch said his near- to medium-term outlook for theindustry remains guarded, given the high level of economicuncertainty.

“The industry’s relevant economic drivers—non-residentialconstruction, business confidence, white collar employment,and office vacancy rates—remain negative, Bugatch pointedout, though he said some indicators have begun to show signsof bottoming.

“Unfortunately, given the late cycle nature of office furnituredemand, a recovery for the industry is likely to lagimprovements in the broader economy by at least three to fourquarters,” Bugatch warned.

Elsewhere on the statistic front, the American Institute ofArchitects (AIA) reported its Architecture Billings Index for Maywas 42.9, essentially flat with April’s 42.8. While the currentABI reading is well above January’s all-time low of 33.3, itremains under 50 (the line of demarcation between expansionand contraction).

Reflecting the difficult economy, the current BIFMA forecastanticipates 2009 order and shipment declines of 29.3% and28.6%, respectively, down from its previous forecast of a

26.5% fall in orders and a 19.3% drop in shipments. BIFMAexpects a modest improvement in 2010, with orders andshipments projected to increase 2.6% and 2.8%, respectively.

Economic Downturn Could Change TheOffice Furniture Industry Forever, ExpertsTell Michigan Business PublicationSeveral top executives at office furniture makers in WestMichigan told a local business publication recently the forcescurrently impacting the industry could result in somepermanent changes to the industry

An article by reporter Mark Sanchez in last month’s WesternMichigan Business Review, warned that what the nation’seconomy is now experiencing is sure to alter the landscape inwhich they operate.

“As the economy comes back, our customers may have alingering memory,” said Don Goeman, executive vicepresident for design and research development at HermanMiller. “One thing we are trying to get a good read on is howwill our customers’ appetite for investments play out?”

And even once corporations are willing to spend again,chances are their spending habits will have undergonechanges, suggested Sanchez.

“Simplicity, simplicity, simplicity” will become the corporatemantra for clients, and office furniture makers will have torespond accordingly, izzy+ CEO Chuck Saylor told thereporter. “We are at one of those defining moments in time.This is a systemic, long-term change we’re going through. Thisisn’t just a blip on the radar,” Saylor added.

According to Sanchez, Saylor and others suspect many of theprimary design drivers behind product innovation—a need forclients to optimize office space and to improve workerproductivity, accommodating teamwork and collaboration,sustainable business practices and enabling technology—willmatter much more in the aftermath of the downturn.

“In the world of design and space and the outcomes, I don’tsee this materially changing,” Haworth chairman MatthewHaworth said. “It may accelerate things that were alreadygoing to occur. In terms of innovation, there will be new. And

JULY 2009 OFDEALER PAGE 5

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Page 6: OFDealer July 2009

certainly something new will be attributed to this downturn,”he added.

“Customers will be looking for harder-working spaces,” saidJim Keane, president of Steelcase Inc.’s Steelcase Group.

In some cases, clients will seek ways to better use officespace that will house fewer employees after a corporatedownsizing, or they will have to adapt to a reduced squarefootage, executives indicated.

Configura Joins EMerge AllianceConfigura Inc., makers of the CET Designer software program,has joined the EMerge Alliance, bringing the organization’stotal membership to more than 40.

The EMerge Alliance is an open industry associationestablished in 2008 to promote the rapid adoption of safe,low-voltage direct-current (DC) power distribution and use incommercial building interiors to help reduce energy usage.

The EMerge standard gives commercial building owners a wayto maximize room and floor reconfigurations and stop thecycle of one-time fixture and device use, Configura said.

Configura said it plans to work with EMerge members andtheir customers who need a simple tool to specify configurablelighting systems, ceilings, walls and floors, and relatedelectrical devices and power infrastructure.

Herman Miller Expands Its Healthcare Market Presence with Nemschoff AcquisitionHerman Miller has long had a solid presence in the healthcaremarket but the Zeeland, MI-based manufacturer last monthexpanded its footprint in what has been one of the fewindustry bright spots of late, when it announced it hasacquired Nemschoff, one of the market leaders in thehealthcare field.

Nemschoff, with revenues of more than $90 million in 2008,was purchased through a combination of $32 million in cashand just of over two million Herman Miller shares.

In addition, Nemschoff shareholders stand to receive anadditional payment, depending on Nemschoff’s performanceand Herman Miller’s share price over the next two years.

“The acquisition of Nemschoff is a significant step in HermanMiller’s growth strategy and further evidence of ourcommitment to the healthcare market, where Herman Millerhas been a leader for more than 40 years,” commentedHerman Miller CEO Brian Walker.

“In bringing Nemschoff into the Herman Miller Healthcarebusiness we immediately expand our product breadth anddepth and accelerate our healthcare strategy. We also believeNemschoff will benefit as we introduce its products into ourhealthcare distribution channel, and that cost synergies existin the combination of Herman Miller, Brandrud andNemschoff.”

In making the Nemschoff announcement, the company notedhealthcare is an important and growing vertical marketopportunity. Relative to other sectors of the economy,healthcare construction remains strong and is supported bysignificant drivers fueling expectations for future growth. Theseinclude an aging population, with the percentage of Americansover the age of 65 projected to grow from 12% to 20% by theyear 2030.

Additionally, Herman Miller pointed out that 20% of the recentfederal government stimulus package is focused onhealthcare, while healthcare costs as a percentage of GDP areprojected to grow from 16% to 20% by the year 2017.

Global demand for healthcare services and related facilities isalso expected to continue to rise, Herman Miller said.

HON Congratulates HONors Award TripQuick Start WinnersThe HON Company last month announced the winners of itsHONors Award Trip Quick Start Promotion. Seven dealer salesrepresentatives from across the United States and Canadasecured their spots on a trip in September to the MontageResort in Laguna, CA, by outperforming their peers in the HONQuick Start earning period from October 1, 2008 through April4 of this year.

“At HON, we’re thrilled to recognize our dealer salesrepresentatives with exciting rewards, such as this trip to theMontage Resort,” said Shelley deSilva, vice president ofmarketing at The HON Company. “Not only will this be arelaxing experience for our winners, but we hope it willcontinue to motivate all of our sales representatives byreaffirming the company’s appreciation of everyone’s hardwork and dedication.”

The Quick Start winners are:

Ryan Krebs, Action Office Interiors Saskatoon, Canada

Christy Trainer, Corporate Environments GroupBethlehem, PA

Mary Jo Halligan, Office Services Co. Savannah, GA

JULY 2009 OFDEALER PAGE 6

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Page 7: OFDealer July 2009

Austin Beaslin, Desks Incorporated of Utah; Salt Lake City, UT

Gary Scheets, WM Putman Co. Bloomington, IL

Mike Hodes, AegisKansas City, MO

Haleema Shafeek, Green Office SolutionsHilliard, OH

Jasper Group Marks 80th AnniversaryCongratulations are in order for the Jasper, IN-Jasper Group,which this year celebrates 80 years of wood furnituremanufacturing.

The company was founded in 1929 as the Jasper SeatingCompany and has grown to become a highly diversifiedfurniture maker, with four different brands: JSI, its contractoffice line; Community for schools, colleges, government, anddining facilities; Klem for hotels and resorts, and Jasper LibraryFurniture.

The company operates today out of nine production facilitieshousing over 1.5 million sq. ft. and over 250 employees.

National Office Furniture’s Orange County California Showroom EarnsLEED-CI Certification

National Office Furniture this month announced that its OrangeCounty, CA showroom earned LEED-CI certification from theU.S. Green Building Council. The Orange County location isNational’s fourth LEED-certified showroom (others are in Jasper,IN, Chicago and New York) and National’s fifth facility overall,including its Research and Development Annex in Jasper.

Sustainable features of the 3,000 sq. ft. showroom in OrangeCounty include Forest Stewardship Council (FSC) certifiedwood flooring and relying on renewable energy sources suchas wind, solar, geo-thermal and biomass for 100% of theshowroom’s energy consumption.

Teknion Announces Wohnbedarf AG as its Latest European Dealer-PartnerTeknion Corporation announced last month that it has addedwohnbedarf project ag of Zurich, Switzerland, to its growinglist of international dealer-partners.

“wohnbedarf has a rich furniture design heritage involvingsuch internationally renowned architects and artists as AlvarAalto, Le Corbusier, Max Bill, Marcel Breuer, Ludwig Mies vander Rohe and Alfred Roth, plus many leading European officefurniture companies,” said Frank Delfino, president, TeknionWorldwide Markets. “This heritage combined withwohnbedarf’s five decades of office space planning makes usparticularly pleased to be associated with our new partner.”

Inscape Appoints Regional VP of Sales for Western DivisionInscape Corporation has announcedthe appointment of Michael Ackelbeinas regional vice president of sales for the Western U.S. Ackelbein will be responsible for developing andexecuting regional growth strategiesin California and the Pacific North-west and will be overseeing Inscape’ssales partners in the region.

Ackelbein has over 20 years of senior sales and management exper-ience in the contract furnitureindustry, including the founding andmanagement of dealerships in theSan Francisco area, Inscape said.

Maxon Recognizes Rep of the YearCongratulations to Vanice Cudina of Robert Wilson Associatesin New York City, who was recently recognized by MaxonFurniture as its 2009 Manufacturer’s Representative of theYear. Cudina covers the Manhattan territory for RWA and,according to RWA principal Robert Wilson, has been anoutstanding producer for Maxon for over 15 years.

JULY 2009 OFDEALER PAGE 7

Industry News } continued from page 6

Page 8: OFDealer July 2009

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Page 9: OFDealer July 2009

For OFDA, ensuring our members’ survival and future successhas taken on new urgency this year. It is always a challenge tostep away from your business for even a few days, but whenyou face unprecedented challenges, the justification for doingso is even stronger than in calmer times.

This year’s conference will offer a practical “survival toolkit” thatincludes a highly interactive and well-focused managementeducational program, exciting new product display and privatemeeting formats to better connect industry dealers with primarybusiness partners, and the quality networking environment thatis the hallmark of all OFDA events.

Like its members, OFDA has taken a step back this year andreevaluated every aspect of its annual conference strategy,format and agenda. OFDA has designed the 2009 conferencewith extensive input from dealers, manufacturers and serviceproviders. The program will help attendees evaluate newopportunities for revenue growth and examine ways to exploitthem, learn best practices in strategically reducing expensesand managing cash flow, and chart a clear course for a returnto sustained profitability. Other industry groups – including theOffice Furniture Recyclers (OFR) and Facility Services Network(FSN) among them – will co-locate their fall meetings at OFDA’sconference hotel at the front end of the meeting.

The program has been structured to include a mix of stimulatinghigh-level keynote and general session panel discussions that

are highly relevant for addressing current priorities in yourbusiness. The format will allow attendees to choose amongpractical break-out educational sessions covering criticalfinancial, new business development, technology, sustainability,and operations issues. We thus encourage you to attend with atleast one other key senior manager of your team to maximizethe value your business receives from your participation.

Ample informal networking time has been included along withthe new display and private meeting options to make it easy toconnect with industry peers and invited expert presenters andpanelists. Their goal and ours is to offer you proven successfulapproaches to identify and then implement the most appropriateand essential changes in your business to succeed in today’smarket and the future.

Highlights of our confirmed 2009 conference program include:

Dr. Nate Booth, our openingkeynote speaker, will set thetone with his presentation,“Challenging Times NeverLast: Resilient Companies andPeople Do!”

JULY 2009 OFDEALER PAGE 9

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OFDA Fall Conference Will Provide Toolkit for Members’ Survival and Future Prosperity

There has never been a more critical time than now fordealers, whether aligned or non-aligned, to come togetherwith their key business partners and peers to collaborateand align their strategies for survival and resumed growthwhen the North American economy recovers. The mostefficient and effective way to accomplish this is to attendand engage fully in the OFDA Dealer StrategiesConference & Business Meetings. This year’s event willbe held in Austin, TX (October 4-6) and will be distinctlydifferent in format, approach – and tone.

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conferenceDealerStrategies

Austin, TexasHyatt Lost Pines Resort & Spa

October 4-6

OFDA2009

Connect | Explore | Discover

Managing for the Present

Preparing for the Future

General Sessions:

Manufacturers’ Perspectives on the Future of IndustryDistribution – A panel dialogue, moderated by OFDA ChairmanJack King, among top executives from Knoll, Teknion, Haworthand AIS.

Gil Cargill – This top former IBM salesperson and widelyacclaimed executive trainer, consultant and speaker will offerleading-edge strategies and practical tips on how to acceleratesales in today’s fast-paced, highly demanding market.

Emerging Communications Technologies that are Reshapingthe Workplace – A presentation from a leading globalcommunications company that will outline strategies smallbusinesses in our industry can use to integrate newcommunications and other technologies in an increasinglymobile world.

Capitalizing on Federal Government Market Opportunities –Moderated panel discussion among senior procurement andfacility management officials on how to participate in thetremendous growth of this market sector.

20+ Interactive Breakout Meeting Sessions hosted byrecognized industry and general business experts will allow allconference attendees to become more effective in implementingcritical management functions and expanding capability in theareas of:

h Managing cash flow and banking relationships forsurvival and future growth.

h Identifying and developing new sources ofproduct and services revenue.

h Value-based selling in tough markets forhigher sales and profitability.

h Dealership and installation companyoperations and technology management.

h Impact of new ‘sustainability’standards/certifications on yourcustomers and you.

h Finding, evaluating and retainingtop talent in today’schanged market.

h Smart use of social media to brandyour company and buildrelationships with new businesspartners, expert resources andcustomers.

In addition, for the first time, OFDA will offer private businessmeeting suites and free-standing display options to enhanceopportunities throughout the event for more in-depth businessdevelopment and relationship building between dealers andindustry manufacturers and service providers. New OFDA onlinematchmaking tools will allow all conference participants topre-schedule meetings and further maximize their ROI fromconference attendance.

Leading industry technology solution providers will again hostfocused educational presentations in a dedicated “TechnologyNeighborhood” meeting room. And two prominent local dealerswith distinct business approaches – the Facility ManagementGroup of Austin and Office Furniture NOW! – will host attendeesat their sites on the second day of the event.

Networking time has been expanded so that participants maybetter follow-up with session presenters and interact broadlywith their peers. OFDA is also organizing a special “Evening onthe Town” program in downtown Austin for October 5, so thatconference attendees can enjoy the wide selection of excitingfood and live music for which our host city is famous!

OFDA invites you to visit www.OFDAnet.org today to review ourconference agenda and vendor marketing prospectus that outlinesdisplay, private meeting, and promotional opportunities. Onlineregistration is active and early bird registration is available onlinethrough July 31. Your prompt action to register today will save youmoney and further boost your ROI from participation. Call800/542-6672 for more information or assistance in registering.

JULY 2009 OFDEALER PAGE 10

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GSA Contracts are still alucrative source of revenueeven as competition stiffensand more dealers delve intothis critical market segment.

By Scott Cullen

Hooray for the red, white, and blue, especiallywhen it’s dispensing green. In a furniture industrythat’s been rocked by the economic downturn,particularly on the commercial side, GSA business is stilldoing A-okay. At least that’s the contention of variousdealers across the country who do a significant amountof business with the government.

“It’s the only business these days,” says Deb Horrworthwith Office Images in Rockville, MD. “We have ongoingcustomers that we’ve been doing regular business with.Some are getting stimulus money, some aren’t, butthey’re buying. They weren’t buying earlier this year, butwe’re now seeing things break loose.”

A sizable government base is one of the reasons OfficeImages, a HON and Allsteel dealer, is busy.

“We’re doing a lot of bids and we’re very competitive,and we’ve gotten a lot of deals in the last couple ofmonths that are keeping us afloat,” says Horrworth .

Anthony Bellia, Jr. of Bellia Enterprises in Woodbury, NJ,hasn’t seen much of a slowdown, particularly on theGSA side of the business. Bellia Enterprises has beendoing business with the government for more than adecade and the past eight years have been consistentthrough good economic times and bad.

“We seem to get projects no matter what the economy,”says Bellia. “The federal government continues to buy.”

About 40 percentof Bellia Enterprises’ business isgovernment, including federal, state andlocal governments, and Bellia emphasizes the needto focus on all of those.

For Sandra Johnson, a government furniture salesspecialist with OEC in Pensacola, FL, who’s doingthe buying these days very much depends on whatbranch of government you’re talking about. Muchof her business is with Navy and Air Force bases inNorthwest Florida.

“The Navy has pretty much been at a standstill withpurchasing somewhat sporadic, but things arepicking up with the Air Force,” she says.

Down at Gulf Coast Office Products, a Knoll andHON dealer also based in Pensacola, GSAbusiness seems to be doing better. After acquiringa company a year and a half ago that was doingsome 90 percent of its business with thegovernment, a healthy 20 percent of Gulf Coast’srevenues now come from GSA contracts. GulfCoast president Mark Wright reports that GSAbusiness is up 25 percent over last year.

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Ripe for CompetitionThinking about ramping up your own GSAbusiness? Be prepared. If you haven’tfocused on this segment before or ifyou’ve neglected it in favor of what wasonce more lucrative commercialaccounts, you’ve got a tough row to hoe.

“There’s an abundance of people tryingto crack into that market right now,” saysWright.

One reason why Bellia says his dealershiphas been so successful is because theyunderstand the ins and outs of selling tothe government client. That’s one of thethings that set them apart from thecompetition, particularly those dealerswho are just turning their focus in thatdirection.

“What I’m hearing from contractingofficers and government end users thatI’ve been working with for years now isthat a lot of dealerships have just decidedto flip the switch and sell to the federalgovernment,” he reports.

If only it were that easy.

“When you work on a government projectyou have to know how to talk to the enduser versus talking to a contractingofficer, and you’ve got to know where todevelop the relationships inside these

government entities,” adds Bellia. “Thatcomes down to understand- ing theverbiage and acronyms used, so you canconvince that government con- tractingofficer you’re a dealership that[understands the way they do business].If you have a salesperson who is trying tolearn as they go along, governmentclients will see right through it.”

Asked for specifics regarding verbiageand acronyms, Bellia identifies BVD (BestValue Determination) and FAR (Federal

Acquisition Regulation).

“When you’re putting out an RFQ, if youdon’t understand simple terms like BVD,you’re going to run into a lot of problemswith the contracting officer,” he warns.

“People that haven’t been doing businesswith the federal government before face atremendous learning curve,” adds

Horrworth. “[They need to learn] howto attract business and how to

get in and talk to peoplebecause doing business with

the government today is not thesame as it was 15 years ago,

when you could just walk into agovernment building and canvassbusiness. You have to get appointmentsand you have to know people because ofsecurity [issues].”

What gives Gulf Coast an edge againstcompetitors is a staff of four sales repswho each have 25 years’ experienceselling to the government. Theyunderstand the market and how to workwith those clients, and that as they say,makes all the difference. Realistically, itmakes a lot of difference, but there areother factors that have helped make GulfCoast successful in this market.

“One thing that has been important to oursuccess is making sure the customerunderstands what they’re getting andgiving them options on the front end,”opines Wright. “That puts you in a goodposition if you’re able to do that and if youcan propose multiple vendors.”

John Rasper, president of DeKalb OfficeEnvironments in Atlanta, acknowledgesthat his company is in the midst of alearning curve.

DeKalb only does about 10 percent of itsbusiness with the government, mostlybecause they’ve only recently begunfocusing on government accounts. This,explains Rasper, is a logical extension ofthe business, particularly since they’revertically focused with a Healthcare Divi-sion, Higher Ed Division, Major AccountsDivision, and New Business DevelopmentDivision. Plus, most of the productsDeKalb carries are on GSA contracts.

“The challenge we’re having with GSA isthat we’re not GSA-focused,” saysRasper. “We don’t have a sales team or asales manager responsible for drivingGSA business. Without focus and withoutattention to detail, you might pick up afew projects, but you’re not really goingto be successful.”

Rasper is fixing that, having assigned asales rep who had some familiarity withGSA accounts with a previous employeras the company’s GSA sales rep.

“She’s learning the jargon, how to gothrough the processes and she’s focusedon GSA,” says Rasper. “We think she’llpay dividends.”

The Loyalty FactorIn a world where bidding is often the nameof the game, one might assume that it’sdifficult to leverage customer loyalty. Notso, say successful GSA dealers.

“Existing customers are key because ifyou do a good job on their projects,recommendations are easy to come by,”says Wright.

“Depending on the dealer and their pastperformance, contract officers makerecommendations to other end usersabout dealers who are easy to work withor give better service,” maintains Johnson.

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“Most of the time when agencies canvassfor business and they’re going out forbids, they’re dealing with a lot of peoplethey know nothing about,” addsHorrworth. “People will lowball bids andlowball installation to get projects andthen fall flat on their face and the agenciesdon’t get service. We’ve built loyalty overthe years because we’ve made govern-ment employees look good.”

The loyalty that Office Images hasdeveloped over the years withgovernment clients is largely becausethey ensure those clients receive thesame service they provide commercialclients, even though margins are oftenmuch smaller. Dealers who think they cancut corners often find themselves out ofthe bidding next time around.

“They’ll put that product in there just as itwas bid,” says Horrworth. “They won’tfield measure or find out if the panels in thespecs are placed next to windows. Theybid it, lowball it, install it, and then say thisis your problem because that’s what yourdrawings said. But the government willcatch up with you eventually.”

A dealership looking to do things right bythe government can learn a lot fromOffice Images. They field measure, placeproject managers on site, and closepunch in thirty days.

For Bellia, loyalty is most definitely afactor—particularly when it comes to BVD.

“We’re finding that loyalty really plays atremendous role in that because if you’reable to provide knowledge of budgetsand ideas to the end user thatdifferentiate you from your competition,end users view you as a valued resourceand you’re more likely to earn thatbusiness as opposed to just being thelowest price,” he contends.

The Challenges“The biggest challenge of selling togovernment clients is whether thecustomer is standardized on specificmanufacturers or not,” says OEC’sJohnson. “If they are and you don’trepresent one of those products, you’repretty much out of the picture.”

Understanding what a government agencyconsiders BVD is another challenge.

“BVD is tough,” says Horrworth . “It usedto be a numbers game and you knew howto play that, but with best value you neverknow what they’re going to put theemphasis on.”

“Every government entity operates verydifferently and if you’re not effective infollowing the money trail, you ultimatelyend up running around in circles,” addsBellia. “If you find out where the money iscoming from and who will write thatpurchase order you’re more likely to get tothe bottom of who that influencer is whenit’s time to create a purchase order.”

Asked if there’s much of a differencebetween selling to Uncle Sam and sellingto a commercial account, opinions vary.

“Government is no different thancommercial,” states Horrworth . “If you’rein the bidding and you’re able to sell anagency on a product and direct them acertain way so that the attributes in thetypicals match the factories yourepresent, you’re ahead of the game.”

She further explains that it’s all aboutbeing involved in the process and helpingthe customer as much as possible.

“You can’t write the spec, but you cancertainly lead them down a path thatwould make it a little easier for you,”notes Horrworth.

Cautious OptimismThere’s a general feeling of optimismamong GSA dealers these days, asbusiness continues to pick up.

DeKalb’s Rasper plans on adding anotherGSA rep and maybe even a salesmanager. Despite being late to the party,he’s expecting GSA to represent 20-25% of DeKalb’s overall businesswithin the next year, and with thePresident’s stimulus package and manygovernment agencies buying again, that’snot inconceivable.

“I would hope that at this time next yearwe’ll see some of those percentages,”says an optimistic Rasper. “We’re goingto finish out the year better than when we started and as we continue to focus we’re going to see some largeincremental upticks.”

Overall, Bellia feels positive about thenext six to 12 months and the potentialfor added business because of thestimulus package.

“Within the Philadelphia market we’reseeing a lot of stimulus money goingtowards green initiatives for improvinginfrastructure of buildings such asplumbing and HVAC. I’m cautiouslyoptimistic about what that means to afurniture dealer.”

Gulf Coast’s Wright is also optimistic thatthe end of the year will be good for GulfCoast’s GSA business and he expectsthat to continue for the next two yearsbecause a number of governmentbuildings and structures are scheduledfor construction in the Gulf Coast area.

“They have a lot of money penciled indown here and hopefully we’ll get our fairshare,” concludes Wright.

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Scott Cullen has been writing about the office products, office furniture, and office equipment industries since 1986. Hehas been working as an independent writer and editor since 1997, and is currently editorial director and managingeditor of OfficeSolutions, OfficeDealer, and Practice Manager magazines. Scott also has written for various office

equipment manufacturers and market research organizations, focusing primarily onproduct and dealer issues.

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LEEDing by Example: The National Audubon SocietyBy Alicia Ellis

The National Audubon Society has long been known for itswildlife conservation efforts so when the organization decidedto downsize and relocate its headquarters in Manhattan, theydecided to practice what they preach and set out to achievethe highest level of LEED certification (Platinum) from theUnited States Green Building Council (USGBC) for their newoffice space.

To achieve that goal, the Audubon Society hired FXFowleArchitects, based in New York, to design their newworkspace from the ground up. The completely empty27,000 square foot space would be transformed into asymbol of environmentally-friendly design, with a focus on

energy-efficiency, sustainability and reuse of products thatallow for the least amount of impact on natural resources.

To help in these efforts, Metropolitan New Jerseyheadquartered Herman Miller dealer, Business Furn- itureInc. (bfi) was brought in and, from the beginning, served asan important resource for product and design expertise toboth the architects and the Society.

“We became part of an entire team that first had todemonstrate an understanding of the overall objectives andsecondly, respond with product solutions that met thedesign, budget, aesthetic and functional require- ments forthe space,” said Bruce Stone, vice president of bfi. “Working

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PR JECTPROFILE

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closely with our associates at Herman Miller, we wereable to come up with product choices that made themost sense, the proper statement, and wereengineered to afford the highest level of product- ivitywithin the environment while being constructed withsustainability, form and function in mind.”

With over 100 staff members, the National AudubonSociety needed private offices, centralized work-stations, a conference room and lounge andreception areas. According to Stone, the architectand the end-user looked to the Herman Miller-bfiteam for ideas and suggestions to deliver the highestpossible quality at the lowest possible cost.

“Our mission was to be responsive, professional andaccommodating to bring as much value to the designspecifications, the procurement process, the on-siteproject management as possible, as well ascoordinate a complex delivery and installation,” saidStone. “This was a full-blown gut and rehabilitationof an entire floor, so everyone from the client side tovA & D, the construction manager, prime tradesubcontractors and well as our furniture team had tobe on the same page. It was truly a ‘hands-on’ teamapproach that made the difference here. At each stepthe Herman Miller-bfi team communicated effectivelyand professionally, both internally and externally.”

When all was done, the new National AudubonSociety offices were constructed and furnishedalmost completely with materials that were eithersustainable, recyclable or reclaimed. Innovativefeatures include energy-efficient systems, under floorair distribution with individual duct adjustability, openspace planning to allow daylight penetration to theentire floor, occupancy sensors and controls, the useof recycled and locally produced materials and highindoor environmental quality.

“At bfi, we were are fortunate to have an experienced,long tenured and committed design division thatworked closely with FXFowle, Herman Miller, theNational Audubon Society and other teammates tomeet the design intent in keeping with all local coderequirements and site conditions,” Stone said. “Thiswas by no means an easy project but opencommunication and the clear directives articulatedby the A & D firm, plus having an understanding andcommitted client, made the job and design possible.

JULY 2009 OFDEALER PAGE 16

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Product Profile

Private Offices • Herman Miller M-Wall with Vivo

Workstations – open area • Herman Miller My Studio

Seating: Workstations • Task / Herman Miller Celle Chairs

Guest Seating • PO ICF Imprint Pull Up Chairs

Closed Conference Room Seating • Eames Alum Management Chairs

Open Conference Room Seating - Eames Molded Plastic Wire Base Chairs

Art Room • Herman Miller Aeron Stools

Lounge Conference Room Seating • Brayton Sidewalk chairs w/Tablet Arm

Lounge Conference Room Coffee Table • Bernhardt Halo Table

Open Area Conference Tables • Davis Avea Tables

Closed Conference Room Tables • Kusch Delgado Folding Tables

Keyboards / Monitor Arms • Humanscale

www.bfionline.com

Keep Up On All The Office Furniture Industry’s News

www.ofdanet.org or call

800.542.6672 to Sign Up!

OFDA’s newly redesigned FREE weekly Connecting eNewsletter is your guide to all the latest on the office furniture industry.

Industry News & EventsAssociation NewsGovernment AdvocacyProduct IntroductionsBusiness Basics

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JaksDesigned by John Coleman, Jaks works equally alone, or with its fun shapes interlockedand configured into exciting playful, tessellated patterns due to its modular nature anddistinctive, graphic ‘cross’ shape. This is a simple form and construction that economicallyprovides seating for up to four people and facilitates meeting and greeting in informal spaces,or a comfortable seat for those who just want to take a break while also having somewhereto perch their laptop for a while.

Allermuir | www.allermuir.com

40/4 The Original 40/4 stackable seating solution has paved the way for other high-density stackchair solutions to follow. The combination of straight lines and subtle contours allow for acontemporary or classic finishes. Married with exceptional durability, it’s perfect for meetingrooms, classrooms, training centers, cafeterias, waiting areas and more. A welded steel rearleg (permanently affixed to frame) and interlocking front glide assembly ensures straight rowsand dependability.

www.americanseating.com

MoleculeCreated for Arconas by award-winning designer Davide Tonizzo, Molecule’s uniqueassembly, connects individual structures to one another using a “soft-linking” system;replacing the need for a hard connection. The simple and rapid assembly of Molecule addsan original twist to conventional seating layouts. Molecule consists of two components: acylindrical upholstered seat and a curved backrest finished in wood veneer with upholsteredtop pad. The two components of Molecule combine into an endless array of configurationsand are designed to simply reconfigure on the fly to respond to changing needs. An optionalplywood work surface is also available.

Arconas | www.arconas.com

Kruze Collection Designed by David Fox and defined by crisp clean lines, geometric forms and a classic retroflair, the Kruze collection effortlessly resolves many lounge seating applications. Kruze chairsfeature a hard shell that can be formed FSC-certified wood finish or fabric-wrapped to createthree very distinct looks. Kruze tables are available with wood or tempered glass table topfor further versatility. The result is a stunning collection that adds sophistication and panacheto the workplace.

Boss Design | www.boss-design.com

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seatingspecialSeating is without a doubt one of the most important aspects in an office and knowing what’s new, what’shot and what’s not is vital to providing your customers the comfort they want at a price they can afford.Whether you’re looking for the latest trends in ergonomics, sustainability or just something unique, you’llbe sure to find something you like for your customers or for yourself.

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Zephyr The Zephr from Dale Office was designed to meet the requirements of one of America’s leadingcommunication companies that needed a strong multi-use mesh chair that exceeded thecomfort level of their existing chairs at a realistic price. A task or conference chair, the Zephyroffers an array of functions that allow users of all shapes and sizes to tailor a perfect fit.

Dale Office | www.daleoffice.com

MementoProviding a tactile seating experience from beginning to end, the Memento conference/executive collection features a refreshingly comfortable knit suspension back available in arange of solid hues and multiple color combinations. Designed to impress with an elegantpolished aluminum cantilever arm and complementary high profile base, Memento is akeepsake for executive offices, conferencing applications, workstations and more. Seriesincludes knit-back and fully upholstered models with three available arm selections, twobase finishes and a wide range of mechanism options.

Encore Seating | www.encoreseating.com

ErgoErgo An innovative seating concept that combines wellness with contemporary design, thepatent-pending ErgoErgo allows the body to rock gently in any direction to build strengthand flexibility. ErgoErgo is intelligent design and promotes well-being and productivity. And,it’s comfortable, durable, and easy on the budget.

ErgoErgo | www.ergoergo.com

Accord MeshGLOBAL ACCORD MESH is the latest addition to the award winning Global Accord seatingseries created by designer Zooey Chu. The breathable mesh back promotes airflow andcomfort and gently supports the natural curve of the spine to reduce fatigue during extendedmeetings. Other features include polished aluminum arms, soft urethane arm caps, pneumaticseat height adjustment, tilt-tension adjustment and multiple position tilt control lock.

Global - The Total Office | www.globaltotaloffice.com

Saggio by United ChairSaggio features state-of-the-art mesh weave technology to give the chair a soft, yet modernlook. Three mesh back styling options combined with a wide choice of upholstery and twotypes of sit comfort, this unique design combines personal comfort with overall value. Saggiois the result of years of evolutionary craftsmanship and design expertise.

Groupe Lacasse | www.groupelacasse.com

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ViliIntegrating comfort and design is easy thanks to new Vili seating from Gunlocke. Anextremely versatile product with 2,080 possible combinations, Vili asserts the sophisticationrequired in a private office setting, and easily translates to high-use spaces, such aseducational and healthcare facilities, by adding a surprising—and stackable—design element.

Gunlocke | www.gunlocke.com

VeryVery is a light scale seating family that offers design adaptability and versatility with fourmodels. Very is made with up to 71% recycled content and up to 98% recyclable materials.Very has earned gold and silver Cradle to Cradle certification by MBDC, achieved Greenguardcertification and may contribute toward LEED credits.

Haworth | www.haworth.com

Embody A new, ergonomic, high performance work chair, Embody is the first chair to restore balanceto the human/computer relationship by supporting both the mind and the body. Its pixelatedsupport creates seat and back surfaces that automatically conform to your every movementand distribute your weight evenly. Embody carries a 12-year warranty.

Herman Miller | www.hermanmiller.com

CLIPReady anytime additional short-term seating is needed, the CLIP Chair offers a sturdy steelframe, beechwood seat and mesh back for a handy place to sit. When folded, CLIP is only 1inch deep, and up to three can be stored on the wall bracket.

Peter Pepper | www.peterpepper.com

Mirus The new Mirus task chair from The HON Company offers value-driven consumers anergonomic, stylish task chair at an attractive price point. Mirus ensures a comfortable seatingsolution by adapting to the contours of the human body, accommodating a variety of users.

The HON Company | www.hon.com

AgilitiAgiliti is bringing flexi back. The Agiliti chair has a flexible, plastic back that moves withyour body to provide added comfort no matter the setting, granting you a little taste of thelavish. Add an upholstered seat for an even more comforting experience. The chairfeatures non-marring floor glides and comes in six bold colors. Stack with a new flexibility!

Safco Products | www.safcoproducts.com

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CirrusThe Cirrus line is a collection of executive high back, management mid-back, guest andconference style seating. Each version features a unique knit mesh back with passive lumbarsupport providing optimum comfort. A 5-position locking, swivel-tilt mechanism is standardwith knee tilt option available (except guest chair). Independently adjustable arms feature aspring-loaded height adjustment plus width adjustment to fit almost any body size. Reversebraking casters are standard on either chrome or black 5-star base.

HPFI (High Point Furniture Industries) | www.hpfi.com

SPThis 96% recyclable, BS EN ISO14001-certified chair uses cutting-edge mechanisms like“Passive Seat Slide” and “Active Lumbar Support” features, which eliminate the need formanual adjustment. Another groundbreaking element is SP’s backrest, composed ofthermoplastic urethane (TPU) - the same material used on the inner wall of some automobiletires to insure durable rigidity with rebound. Itoki’s proprietary compound was created afterextensive research done to push the material further in performance and capacity.

Itoki | www.itoki.jp/english/

Otis The perfect hybrid between a side and lounge chair, Otis centers on a molded piece of Petrapolymer, whose high level of post-consumer material allows the chair to achieve an aggregatepost-recycled content of close to 50 percent. The versatile back insert creates a colorfulaccent and the simple detailing of the horizontal split-line between the top-of-the-arms andthe backrest quietly elevates the overall aesthetic. That horizontal split-line also provides anextra layer within the design of Otis, while at the same time lowering the chair’s perceivedcenter-of-gravity with a clear or translucent backrest.

Izzy | www.izzydesign.com

Talent Public and private spaces, formal or informal settings, Talent lounges, benches and ottomanscomfortably perform wherever people gather. Design features include a gently angledbackrest, full seat depth, elevated armrests, wood plinth base and legs, and a rich palette offabrics and leathers. SCS certified, Talent is an enduring interpretation of the club chair’siconic form.

Kimball | www.kimballoffice.com

SalernoThe Salerno is part of Kwalu's line of low-maintenance, anti-bacterial designs that look greatand are virtually indestructible with a 10-year product warranty on both construction andfinish. The Salerno's clean lines and sleek finish will add a simple elegance to any seatinglocation. The ultimate in comfort and style, it features an ergonomic back and lumbar support.

Kwalu | www.kwalu.com

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Ease CollectionA crisp composition of curved seat and back forms, precisely fitted to a slender rod frame,the Ease chair makes a striking solo statement or fills a room with order and style. The seatcan be specified in two trim options, wood or upholstered and an upholstered onlay can beapplied to the face of the exposed plywood back. Ease wood securely stacks 30 high on itsown transport dolly.

Leland International | www.lelandinternational.com

Molo The inspiration for softseating comes from a desire for flexible and spontaneous spacemaking. softseating’s magnetic ends allow it to connect to itself, forming a cylindrical stoolor low table. softseating pieces of the same size, can also connect to one another to formlong winding benches, providing endless seating topographies. softseating is available intextile and kraft paper in white, black and brown.

Molo Design | www.molodesign.com

Spine AlignDesigned with the utmost in comfort in mind, the Balt Spine Align cradles the body, adaptingto the user’s posture and giving the support necessary for a productive day’s work. Thisergonomic Spine Align lumbar support office chair from BALT features two, full-floatinglumbar panels that support each side of the back, removing pressure from the spinal column.The floating design allows each lumbar panel to move with the user, ensuring completesupport.

Moore Company | www.moorecoinc.com

AuroraAurora executive/conference and guest seating brings classy luxury and sophistication toany environment with subtle curves and sleek, fixed wrap-around arms connected via a metalsweep across the back. This distinctive design is complemented with undeniable comfort.Aurora is SCS Indoor Advantage Gold certified, level 1 certified by SCS and available withFSC Certified Wood.

National | www.NationalOfficeFurniture.com

Premio The Italian designed Premio chair is distinctive, fluid, lightweight, and yet very comfortable.Available with or without arms, this polypropylene chair is not only stackable but stylish. Anoutdoor option is available with an added UV inhibitor. Upholstered seats are another optionfor both the stacking and swivel tilt models. The Polypropylene shell and metal frames are100% recyclable, and all standard fabric upholstery consists of 100% post consumerrecycled fibers.

SurfaceWorks | www.surfaceworks.us

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InTune and InSync Adding to the inMotion series, the InTune and InSync side chair feature Body Balance, aweight-activated counterbalance technology. InMotion chairs conform to users’ bodies andcontinually adjust with every movement or change of posture and balance. Since theyself-adjust, InMotion chairs eliminate human error, thereby reducing workplace injuries andstress. In mid-back or high-back options, with fixed or height & width adjustable arms, withor without a floating lumbar, and in a wide variety of colors and finishes, InTune and InSyncare suitable for all styles of decor.

Highmark | www.highmarkergo.com

TurnerThe Turner fixed seating system’s multi-pivotal base both swivels and tilts, enabling the pedestalmounted seat to tip forward so students can easily pass through the row behind the seat. TheTurner can be installed in straight rows on tiered or flat floors with minimum center-to-centerspacing of 23.6 inches (60cm) and minimum row spacing of 35.5 inches (90cm). It features a12 inch continuous writing surface and an integrated wire management system.

Sedia Systems | www.sediasystems.com

Focus Focus offers inherent design flexibility with multiple options-including a slim-back designwith multiple back options. Choose from mesh, upholstered with mesh fabric, or plasticbacks. The back mirrors the natural curvature of the spine, keeping the entire back wellsupported. The mesh provides maximum air circulation and conforms to individuals backshapes-evenly distributing body weight and eliminating pressure points. Together the backcurve and mesh allow for flexibility and movement while providing a healthy upright posturefor hours of comfort. Seat sliders, back tension and lock positions are all easy to adjust anda waterfall seat relieves pressure from the back of the legs.

www.sitonit.net

Think Steelcase's Think chair is embodiment of understanding how people sit. The Think chair'sergonomic features include a back flexors track with individual movement of spine and pelvis.The back flexors are individually shaped to the human form to provide optimum support foreach area of the back. Seat flexors conform to your shape, providing a dynamic comfortpocket. Additional features include recline support in proportion to the users own bodyweight, adjustable arms, flexible seat edge and four comfort settings in one dial forpreference control.

Steelcase | www.steelcase.com

LeopardLeopard fuses robot technology and seating design to offer innovative styling and exceptionalcomfort. The human muscle mechanism is applied to provide a superior fit that follows everyposture change from sitting to standing enabling ultimate ergonomic comfort. Leopard isrelaxed seating which reduces muscle load as you move for low-impact sitting.

Okamura | www.okamura.jp

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Why did BIFMA develop this new standard for sustainableproduct and what does it mean for the dealer community?We asked BIFMA executive director Tom Reardon for theanswers to these and other questions related to level.Here’s what he had to say:

Why did BIFMA feel the need for a new sustainabilitystandard at this time, when there are several already inwidespread use in the industry?

REARDON: The commercial furniture industry has longbeen a leader in the quest for responsible manufacturingprocesses, facilities and products. But the industryneeded a common language, framework and approach tohelp evaluate and improve the sustainability of itsenterprises.

In a world of information overload and a rising tide ofenvironmental claims, level is important because it pro-vides a single, fully transparent way of understanding andcommunicating what a sustainable furniture product is.

The standard provides a common, but challenging set ofcriteria for furniture producers and their supply chain toevaluate the sustainable aspects of products. And levelensures that an independent third party has conductedthe conformance assessment.

How was the new standard developed?

REARDON: In 2006 the BIFMA and NSF Internationalbegan drafting the standard with a broad and diversegroup of stakeholders following the American NationalStandards Institute consensus process.

The draft standard, known as BIFMA e3-2008, wasreleased for consensus body vote and public comment inJune 2008.

Modeled after the U.S. Green Building Council’s LEEDRating System, the standard provides measurablemarket-based definitions of progressively moresustainable furniture by establishing sustainabilityperformance criteria in four areas: Materials, Energy andAtmosphere, Human and Ecosystem Health, and SocialResponsibility.

How is the certification process handled? What are theactual logistics of gaining level certification?

REARDON: In order to achieve a level certification, amanufacturer must contract with a recognized,independent, third party certification body.

That certification body then uses the BIFMA e3-2008sustainability standard as a framework to conduct the

JULY 2009 OFDEALER PAGE 23

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BIFMAon the LevelExecutive Director Tom Reardon Discusses

the Association’s New Standard for Sustainability

Last month, BIFMA International, the Business and Institutional Furniture ManufacturersAssociation, introduced level, a new product certification program which BIFMAdescribes as “the first fully transparent, multi-attribute furniture sustainability standardaddressing all aspects of sustainability, including material utilization, energy andatmosphere impacts, human and ecosystem health and social responsibility.”

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audit function, measure all required information and finally certifythe specific product with the level conformance mark.

Manufacturers that evaluate their products against the BIFMAsustainability standard without the third party auditing processwill not be able to use the level conformance mark and theirproducts are not considered “level certified”.

There are presently four certification bodies authorized to certifyproducts to the level sustainability standard; Intertek TestingServices NA, NSF International, Scientific Certification Systems(SCS) and UL Environment.

As the standard continues to grow and is adopted throughoutthe contract furniture industry, more independent auditing firms are expected to apply to participate in the program.Interested manufacturers can consult the level websitewww.levelcertified.org for a current list of recognized third-partycertification bodies.

How is the standard itself structured?

REARDON: level has three conformance thresholds within thestandard. Products can be awarded a level 1, level 2 or level 3certification mark based on the combined score achieved in thesustainability evaluation. level 3 is the highest award a productcan achieve.

These thresholds are analogous tothe silver, gold and platinumrankings within the LEED ratingsystem, but they provide theflexibility to add new thresholds tothe program in the future as theindustry evolves to become evenmore environmentally and sociallyresponsible.

In the level certification process, aproduct, as well as the organizationand facilities that produced it, arescored according to sustainabilitycriteria in the four areas of Materials,Energy and Atmosphere, Human andEcosystem Health, and Social Responsibility.

In order to be level certified, products must meetcertain minimum requirements in each area, andthen must earn additional optional credits in orderto achieve higher levels of conformance.

Meeting the level thresholds is a lot harder than it sounds. Itrequires months, if not years, of work by manufacturers tomeasure their manufacturing process inputs and outputs,incorporate new material formulations, create design protocols,and formalize corporate actions around social responsibility. Thelevel conformance mark is an easily identifiable but hard-earnedsymbol of a company’s commitment to sustainability.

And what does all this mean for the dealer community?

REARDON: The level conformance mark will help the dealercommunity and our customers quickly and easily identifyproducts that have been evaluated against a furnituresustainability standard.

It will also allow for fairly simple and direct comparisons of howthe various products perform relative to one another; i.e. level 1(entry level), level 2 (higher degree of performance) and level 3being the highest tier of performance.

It will also make the customers’ job of product specificationeasier as they won't have to do a ton of research.

Instead, they will have a simple, comprehensive and verifiableway to understand how products contribute to green buildingsand sustainability as a whole.

BIFMA } continued from page 23

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&

Successful Leadership:

How Do You Your Organization Rate?

By Bill Kuhn

Over the years, I’ve written dozens of articleson leadership. Recently, I’ve been asked how I might describe leadership success

in light of these unprecedented times.Before I discuss what is required of a leader today, let me share with you

what dealers are telling me is their Number One problem. Several havesaid it’s a lack of liquidity (cash)—which has been the rationale for my recent

columns in OFDealer on financial planning and control.

However, the majority of responses discuss two other issues—and it’s whomentions them that is also very enlightening. Dealer principals cite people

issues as their biggest concern, primarily recruiting and retaining talent. Othermembers of the organization—sales, operations, support, and manage-

ment—cite leadership as the Number One issue.

I’m inclined to agree with the staff, because people issues, and even financialmanagement issues such as liquidity, are often symptoms of an underlying cause:

ineffective and unenlightened leadership.

So, who is a leader today?

I believe dealer leadership can be defined in terms of the ability to create and sustaina clear and visible business culture and strategy, guiding all of the activities of the

organization toward sustainable high performance and service excellence with customerfocus and value.

To successfully carry out this definition, I’ve identified seven factors that cover a combination ofcharacteristics, skills and qualities.

I suggest that you compare your own leadership traits to the following seven aspects of leadership,and make the commitment to take corrective action when you’ve missed the mark.

Know yourself.Most writers and gurus in the field of leadership acknowledge that leadership’s first commandmentis to “know thyself.” This means having self-awareness and being realistic about your skills, talents,attitudes, and behaviors, as well as the effect these have on others. People who understand theircapabilities are self-confident and have a much better sense of where they are headed. Howeffective a leader are you or could you be?

Bill Kuhn, principal of William E. Kuhn &Associates, is a noted industry consultant,writer, and speaker with over 35 years of

industry experience. He consults withdealer principals and their management

teams in areas of strategic planning,leadership and organizational

development, marketing, financialmanagement, valuation and merger/

acquisition. For more information, contactBill by phone 303-322-8233, fax

303-331-9032, or e-mail:[email protected].

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Possess a strong desire to achieve.Dealer principals and presidents are pretty transparent. MarvinBower, author of the best seller The Will to Manage, titled hisbook from the proverb, “Where there’s a will, there’s a way.”Dealer principals will be evaluated on their “will” (their desire tofind a way, and their commitment, drive, and perseverance) andwhat they make happen. Only with this personal desire can youstretch your staff and truly challenge them. Is your staffconvinced you have the will and can find the way?

Manage yourself. Self-management is a combination of many factors: acting withself-discipline and self-control (for example, thinking beforeacting and staying calm and clear-headed in difficult situations);displaying honesty, integrity, and trustworthiness—a major issuein business today; and being flexible and willing to change. It’snot as much what you do, but how you do it. Are you a goodrole model that can drive improved performance?

Set a clear vision and direction. Visionary leadership motivates people and builds commitmentby making it clear how their work fits into the larger vision of thecompany. It is particularly useful when change, innovation, highstandards of performance, and a strong sense of urgency arerequired—all critical factors in today’s environment. Have youdefined your vision, clarified the direction for change, andcommunicated so that it has been understood?

Become a sensor. In Peter Drucker’s final article, What Makes an EffectiveExecutive, he cited eight practices that every executiveshould follow, then added a ninth that he elevated to a rule,“Listen first, speak last.” Becoming a sensor—socially awareand able to empathize—requires listening. It is essential forcommunication with staff and customers. Within yourorganization, listening will help identify where talents lie; it buildstrust and brings new ideas, opportunities, and innovativeapproaches to your company. With customers, listeninggets the knowledge you need, identifies thevalues your customers’ desire andexpect, and builds customerrelationships and trust. Have youlistened attentively to know andunderstand your business, yourpeople, and your customers?

Delegate and empower. Effective execution must be a company-wide effort.Many leaders (and managers) are poor delegators.They feel they need to (or want to) do it themselves.Delegate authority, including decision-making. Withdelegation and empowerment comes accountability;you’ll want to hold your people accountable for theirperformance to achieve the expected results. Is therebroad-based empowerment and accountability?

Be decisive and act promptly. Measure the time period—the gap—in terms of whatyou intend to do and when you actually do it.Effective execution is required at all levels, at the verytop and throughout the dealership. Are you decisiveand acting promptly with positive results?

It’s a myth that leaders are born, not made. Whilecertain traits may be inherent, leadership candefinitely be learned and enhanced, resulting inoutstanding leadership skills than can driveexceptional performance.

Kuhn } continued from page 25

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FacebookFacebook is a more intimate setting togain “Fans” of your business. Youbasically set up a “business” page underyour personal Facebook account. This isa great way to inform your fans of eventsyou have coming up, new productintroductions, industry news and generalinformation on your company.

This is also a great way of making updatesthat you would normally have on yourwebsite but it is much easier to do it here.FaceBook is a place to network withpeople you know.

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Socialmedia:

The21 st Century Approach to Marketing Your Dealership

By Kama Weinberger IIDA

There is buzz everywhere about social networking but what does it all really mean and how can ithelp your dealership?

A social media campaign can be time consuming, but it can also provide free marketing and therecognition and innovation it gains your dealership can be invaluable.

There are essentially four sources that can benefit office furniture dealerships: Facebook, Twitter,LinkedIn and Blogging. We will look at each to see how to utilize them and how they work.

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TwitterTwitter is an arena to share thoughts, links to interestingindustry articles and personal and business information.Sharing yourself with others builds relationships so beyourself, build your network and share information thatothers find valuable.

Following people and being followed develops yourmarket presence and provides a place to network with thepeople you don’t know. Referrals are the best source ofbusiness and Twitter is a great way to get your name andexpertise out there.

Most people want to know what the return on SocialMedia is. This quote from Tony Hsieh CEO of Zappos.comhits the nail on the head…

“Twittering is like hugging. Just because it's hard tomeasure the return on investment doesn't mean thereisn't value there.”

BloggingBlogging is another excellent way to get information outthere without having to constantly update your website.It allows you to write as much as you need plus addpictures. This is a great way to share productintroductions and information your potential clients findvaluable.

BlogSpot and Word Press are two easy ways to startblogging. Once you write your blog post you can tweet alink so interested people can find it.

Linked InLinkedIn can essentially help dealers to network withpeople they know in the industry; develop relationshipsthrough their connections to others and highlight theiraccomplishments and experience.

The best way to gain knowledge from LinkedIn is byjoining groups you are interested in or are members ofsuch as OFDA, IIDA, IFMA. As a member of these groups,you can to share ideas and find resources that will bevaluable to your day to day business.

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Kama Weinberger is a NCIDQ certified Interior Designer and President/ CEO of Q+E Design Source & Q+E Furniture Solutions with locationsin Denver, San Francisco and Phoenix. She has always been a bit of atech geek looking at new and innovated ways to market her businessand simplify her day to day work process. For more information, checkout Kama’s latest LinkedIn group “Social Media for Office FurnitureDealerships” or follow her on Twitter at Furnituregodess.

There is a lot to learn with Social Media but the best thing to do is diveright in. Don’t be afraid to say what is on your mind. As mentionedbefore, Social Media is free but takes time. In the upcoming monthswe will be featuring more articles on Social Media and new onlinetechnologies to take your dealership into the 21st century.

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When creating marketing materials, ads or proposals, be clear and specific about your message. More is not better. Many sales pieces, including e-mail blasts, try to say or show too much. Messages getdiluted or worse, don’t get read at all. Keep it simple and direct.

Have a plan and strategy when developing any communication. Know what you want to say and don’t make the customer work at finding your real message. Otherwise,you are leaving your messaging to chance interpretation.

Just because they are cost effective isn’t a good reason to inundate your marketplace with e-mails.Staying in front of your audience is a good idea but not if your communication rambles, doesn’t really havea pointed message and is not graphically well designed. It only takes a couple of poorly conceived e-mailsbefore you get blocked or systematically deleted.

Be sure that what your sales materials say is consistent with what your salespeople are saying. A Corporate Visions’ March 2009 survey of salespeople revealed that 74% admitted to rewriting or alteringsales materials before actually using them in the field.

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Guidelines for CommunicatingEffectively

Many of us have witnessed someonetrying to communicate with a personwho simply isn’t “getting” what the

speaker is saying. I have often observedthat the speaker will try saying the same thingrepeatedly, but each time with an increasinglylouder voice, sometimes more slowly and usuallywith some marginally controlled frustration. Same

words, same confusion, same results. To thespeaker, the message is obvious. To the listener, the

message is confusing and possibly even irrelevant.

As salespeople feel more pressure to compete and close deals and as e-mail blasts fly through cyberspace, howoften is the communication more of the same, but louder and more frequent? Maybe even a little frantic?

Or worse, communications with your market have been postponed (making you silent!) with the excuse of thetight economy? How effective are these strategies with your current or prospective customers? Are they hearingwhat you are intending or are you creating confusion? Or, gulp, are you dropping off their radar and not beingheard at all?

Here are some guidelines that will help ensure that your important message gets heard by your intended audience.

Trish Brock, Principal of TrishBrock & Associates,

is a well-known industryconsultant. Her cross-

functional consulting groupspecializes in helping dealers

solve identity, branding andsales support collateral

challenges. She also conductsPerceptual Market

Assessments and CultureEvaluations to better define

market positioning andeffective brand messaging.

She can be reached at720-277-3035 or at

[email protected].

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Sleek design. Greater support options. Lighter body.Double-walled construction plastic back.

The new Synchronicity II features the strength,durabilityand comfort Concept Seating customers expect.Plus, our 24/7 Intensive Use chairs meet or exceedGSA Intensive use ergonomic standards which are ten times that of ordinary office furniture.

That’s just one of the ways we go beyond expectationsto always provide you with superior products.And it’s what makes us different, better.

Increase productivity. Lessen fatigue.Make happier employees with Concept Seating.

Sales materials should support your salespeople,the way they work and to further the sales process. They should be current and designed to reinforce the manydifferent conversations that take place in a lengthy strategic sale.Hint: One corporate brochure won’t do the trick.

Be sure your message(s) resonates with andaddresses the concerns of your audience. Just because your message sounds good to you doesn’tnecessarily mean it will resonate with them. Hint: Reread the firstparagraph of this article.

Be wary of corporate chest pounding.

Don’t be afraid of injecting passion and emotion into your sales messaging.If you aren’t enthusiastic about your products and services, whyshould your customers be?

Don’t play it safe. Take some creative risks to set your dealership apart and getattention.

Don’t believe you are saving money and getting thejob done by using boring “anyone can get” clip art. Photos of drones smiling blindly at the camera or shaking handsdon’t make your presentations and materials interesting.

Whether it’s an ad, sales materials, web site or bidresponse, make it beautiful, interesting andsomething that your audience will want to read (andyour salespeople will want to use).Don’t underestimate the power of visually stunning materials,especially if you are working with the A&D community.

Are you innovative or boring?Representing innovative products and offering novel solutionswith boring or ill conceived materials sends conflictingmessages to your market.

Inform, educate, inspire and motivate your customers!Remember that “how” you say it is as important as “what” you say.

It’s not an overstatement to suggest that your dealership can bedefined by your customers’ point of view. What messages areyou sending to your market and are they being received as youintended? Do your communications help further the salesprocess, or are your salespeople acting as “free agents” andcreating their own? Are they authentic and meaningful toprospective buyers? Do they stand out from your competitors’?

Investing the time and effort to develop effective communi-cations that resonate with your market creates opportunity forthe growth of your business. Yes, even in this economic climate.

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Trish Brock } continued from page 29

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Fear is perhaps one of the strongest motivators there is. Andwe have it in spades today. We've gone beyond oscillations inthe market to a downward spiral, with hundreds of thousandsof jobs lost.

This fear has permeated every element of our lives. Everyoneknows someone who has lost a job or someone who knowssomeone who has lost a job. It's two degrees of separation.

Economic fear can immobilize us. It causes people in theworkplace to be thankful they have a job rather than take risks.It can pit people against one another so that they keep theirjobs. It transforms the work atmosphere from one of creativityand collaboration to one that is subdued and often frantic.

It's hard not feeling like a victim. In fact, it is quite natural intimes as difficult as these to feel that way, especially when thenews reminds us hourly of our dire economic straits.

After all, we didn't create this mess, and we have no influenceover how we get out of it. Yet we face the consequences daily.We don't control bank lending practices, the stimulus packageor the decisions of our clients to cut spending or layoff workers.

Feeling like a victim carries great risk. It is from that place in

our heads that we tend to react, blame others, and protectrather than to stop, reflect, listen, understand, engage, andbecome proactive.

Some of us have even gotten numb to all the bad news. Thiseconomic tsunami washing over us is like any huge wave wemight face at the beach. If we just stand there or try to runaway from it, we will get clobbered. If we swim into it, duckunder it and are not fearful of its force, we will rise to the topto swim another day. It's a conscious choice we make on howto respond and one we each get to make daily.

The bottom line is that moving beyond this very real economicfear must come from the inside out. It is a test of our character.

It challenges everything we have believed in and what wethought was supposed to happen in our lives—morechallenging work, climbing the ladder, and getting highersalaries and bonuses and financial security for our childrenand our own futures. The economic meltdown we are in themidst of has changed that—most likely forever.

To meet this paradigm shift, we get to reach inside and findout what we're really made of, what truly matters—our values,whether we are reactive or proactive, how we work throughdifficult problems, and how we treat other people who areclose to us at home and at work.

We find our core, the ground we stand on, our self-confidence,our courage, an attitude of optimism or pessimism, and howresilient and resourceful we are in dealing with issues thatdeeply affect our families, and how we feel about ourselvesand others.

No one is a failure. We may face difficult times, but personalfailure is not even part of this conversation. It is about aconscious choice we make every day: Is the glass half-emptyor half-full?

With our mind-set focused on a glass half-full, here is aprocess for thinking about this: stop, look, listen and engage.

JULY 2009 OFDEALER PAGE 31

theLastword

dr.edwardmarshal

continued on page 32

Stop, Look, Listen& Engageto Overcome

Economic Fear

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OFDA OFDA

Looking for Fast Relief?Office Furniture Dealers Alliance (OFDA), THE industry association

for dealers and their key business partners, is your one-stop source for:

Management education programs for company principals, sales and operations managers

Industry-leading financial and operations benchmarking

Online forums for member networking, product and best practice exchanges

Practical web-based training, webinars and other online resources for employees

Scholarships and Group Insurance programs for families of member company employees

Special member pricing on other valuable business services

800.542.6672 www.ofdanet.org

Stop and become aware. The first step is becoming aware ofhow we are feeling about ourselves and others in the context ofthis economic crisis. Are we protective of our jobs, competitivetoward others, blaming others or risk-averse? Do we feelvictimized and out of control? However we feel, our awarenessis the critical first step.

Look inside and reflect. Once aware, take the time to reflecton what all this means. What insights are you having aboutyourself, about what truly matters, and about your core valuesand beliefs?

Listen to your true self. What is the ground you stand on?Where does your self-confidence come from? Listen for whatyou know is true about you. It is here that you will find the basisfor becoming proactive and will retire any remnants of the victim.It is here that you will turn and face the tsunami, rising throughwaves to ride it.

Engage from a place of faith. Coming from this renewed faith,others—your family, those you work with, yourcustomers—need your leadership. We all need this strength andsense of confidence.

To turn back the economic darkness that we each face at homeand at work, to free ourselves from fear that can gnaw at our verybeing and to see that there are other possibilities, we each havea conscious choice to make. Victims no more, we reach inside,remember who we are and the ground we stand on, and leadfrom our faith and self-confidence—in ourselves and each other.

Then we will move beyond this economic fear forever.

Edward Marshall is president of the Marshall Group Inc., a Chapel Hill, NC basedcollaborative change management and leadership development consultingcompany. His work focuses on creating workplaces fit for the human spirit, wherethere is a culture of ownership, and as a result, there is consistent high performance.You can reach Edward at [email protected] or 919-593-4358.

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Last Word } continued from page 31