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TECHNOLOGY in Action: Office Furniture Dealer Software Critical Factors for Future Success Page 19 Preparing for the Recovery The Faithful Know It’s Coming... Page 24 Page 13

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OFDealer June 2010 Issue

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Page 1: OFDealer June 2010

TECHNOLOGYin Action:Office Furniture Dealer SoftwareCritical Factors for Future Success

Page 19

Preparing for the RecoveryThe Faithful Know It’s Coming...

Page 24

Page 13

Page 2: OFDealer June 2010

MAY 2010 OFDEALER PAGE 2

Effective Dealer Technology Use isMore About Attitude and ManagementThan Hardware and Software

Simon De GrootEditor in Chief

OFDealer

There’s a good news, bad news aspectto this month’s cover story on dealertechnology.

The good news, as our story indicates,is that a wealth of technology options are available to dealers today to help themrun their businesses more productive-ly and reach out to customers andprospects more effectively.

The bad news, unfortunately, is that toomany dealers still view technology as little more than a necessary evil, a black

hole of time and money that is alwaysdemanding more and rarely delivers on itspromises.

There may be a reason for that.

If technology management at your dealer-ship consists of just writing the checks,springing for an initial training session andthen sitting back and waiting for goodthings to happen, then you don’t need tolook too far for reasons if your technologyinvestment fails to live up to expectations.

Training, for example, should be anongoing process that embraces virtuallyall dealer personnel, but for many comp-anies, it’s limited to a small group of keyoperators who are responsible for some-how figuring out a way to spread whatthey learn throughout the organization.

Upgrades and maintenance issues alsoget short-changed far too often. Tech-nology has always been a moving targetand the pace of change certainly hasn’tslowed down any in recent years. If you’reusing software that’s three or four yearsold, you shouldn’t be too surprised if youfind it generating results to match.

The bottom line and our message thismonth: Technology is a pain to manageand it’s expensive. But any dealer who isn’tviewing technology as a vital businessresource and actively seeking newopportunities to use it wherever possible isessentially gambling with his or herbusiness. That’s not a smart thing to bedoing today and it’s likely to become evenmore high-risk in the future.

Page 3: OFDealer June 2010

new software sales*

aftermarket software,training and forms**

Software for Contract Furniture, Home Furniture and/or Office Supply Dealers

MOREWe Give You

See us at NeoCon

ShOw SpEcialS

*DDMS or TeamDesign software purchased 6/1-8/31/2010. New system software purchases only. **Must be purchased during the month of June 2010. Aftermarket software excludes any third party products.

866-374-3221 • www.ecisolutions.com • [email protected]

See us at NeoCon June 14-16 Merchandise Mart Chicago

Page 4: OFDealer June 2010

MAY 2010 OFDEALER PAGE 4

New Owner, President & CEO for ElementsIV Interiors, Ohio Dealer Dayton, OH-based Elements IV Interiors has a new majorityowner and top executive. Mark Williams, the company’s formerchief operating officer and partner, has become the majorityowner of Elements. His new title will include president and chiefexecutive officer. Williams’ 22 years of contract furnitureexperience included working in both the manufacturer and dealersector of the industry.

Kim Duncan, the founding partner and former majority owner ofthe commercial furniture dealership, will remain an owner andwork in an active role as the company’s executive vice president.

Jack King, the former president and partner of Elements IVInteriors, has resigned as president and sold his ownership stockto Williams in order to pursue other interests.

As a result of the change in ownership, Elements IV Interiors willbecome a minority-owned business, as Williams is of AsianIndian descent. The dealership is working to become an 8(a)certified small business.

Seventy Years and Counting for EmmonsBusiness Interiors, Wisconsin DealerIn Madison, WI, Bob Andersen and his team at EmmonsBusiness Interiors (EBI) are getting ready to light a whole bunchof candles as they celebrate the dealership’s 70th anniversarythis year.

The dealership was initially founded as an office supply andfurniture company back in 1940, and that mix continues today,with Emmons operating a multi-branch business with locationsin Wisconsin, Illinois and Iowa, while a separate business unit,Office Supplies 2U, has been carving out a growing suppliesbusiness since 2000.

But while the dealership has plenty to take pride in from the past70 years, Bob’s focus is very much on the future.

While business has been on the upswing in recent months, heand his team have been moving aggressively to make surethey’re well positioned to make the most of better times whenthey finally come along.

“We can’t afford to wait in the hope that lost volume will somehowcome back,” he warns. “We have to be nimble and more willingthan ever to go the extra mile to meet our customers’ needs.”

At EBI, that translates into a greater emphasis on services suchas reconfiguration work and move management.

Also on the agenda: a comprehensive re-branding effort,currently underway, that will see introduction of a new logo anda new capabilities brochure for the dealership later this year.

“Seventy years is a long time and we’re certainly proud of ourhistory and traditions,” Bob says. “But even though we still carrythe same values, this is a market where you have to keep changingto survive and prosper and that’s exactly what we’re doing.”

Goodmans Interior Structures, Arizona Dealer, Sponsors Children’sClothing Drive for Foster Families

Some of the items collected by Goodmans Interior Structures for distribution to local area foster families.

What do you call an organization that helps provide much-needed clothing for local children in need? If you’re in Phoenix,Tucson or Albuquerque, the answer is surprising, to say the least.

For the past year, Herman Miller dealer Goodmans InteriorStructures has been working with a local non-profit onGoodTHREADS, a program that provides foster families withsomething that most of us take for granted—clothes for theirchildren.

continued on page 5

news

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The GoodTHREADS program is operated by volunteers fromGoodmans and spearheaded by Goodmans’ account managerMichele Wright.

“We’ve seen a real cutback in support for foster families becauseof budget cuts at the state and local level and I really felt weneeded to do something about it,” explains Michele, a fosterparent herself for the past seven years.

The program she came up with, says Goodmans’ president,Adam Goodman, fits perfectly with the dealership’s own longstanding commitment to community involvement and support ofworthy causes.

“The vision of Goodmans is to change our community,” explainsAdam. “As a Goodmans’ employee and a foster parent, MicheleWright was inspired to leverage our company's assets to helpstruggling foster parents deal with the government's shrinkingassistance.”

Goodmans’ facility houses the drop box where clothing can bedonated and employees help organize, fold and prepare theclothing for monthly exchange sessions at a local social servicesoffice. Over the past year, Michele estimates the program hasprovided clothing for over 800 children in need and it continuesto grow.

“Obviously clothing the children is amazing, however what I trulylove is meeting and helping other foster parents,” she says. “Iregularly get hugs from the other foster families. It literally makesmy heart sing.”

Oregon Dealer Environments Makes Local Publication’s ‘Top 100 Green Companies’ ListCongratulations are in order for Chris Corrado and his team atPortland, OR-based Knoll dealer Environments.

Earlier this month, Environments was recognized by OregonBusiness magazine as one of the state’s 100 best greencompanies to work for. Environments came in at Number 64 inthe rankings, beating out several waste recycling companies, apro-environment lobbying group and even the local AudubonSociety chapter.

Environments’ commitment to green practices and policies ispart of a larger effort at the dealership, explains Chris.

“Two years ago we embarked on a major re-branding initiativeto establish ourselves as true consultants for our customers,” hesays. “Our own commitment to protecting the environment is akey element of that re-branding. It’s not about who can sell themost and get it delivered the fastest in our industry anymore,” he

contends. “We’re taking a holistic approach to serving the marketand support of the environment is a major part of that approach.”

For the past two years, a special sustainability committee, underthe leadership of HR manager Jamie Koenig, has spearheadedthe dealership’s own environmentally-friendly efforts.

As a result, Environments reduced the carbon footprint of its ownoperations by 30% in just one year and has put in place anambitious 15-year plan to bring further improvements goingforward.

And, of course, the dealership’s strong environmental credentialsdon’t hurt any in the marketplace, either.

“We’re finding more and more RFPs that we respond to areputting greater emphasis on sustainability and looking for astrong green commitment from suppliers and contractors,” Chrissays. “Public recognition of our own efforts represents a big plus,not only in terms of new business, but it also helps attractlike-minded new talent to our dealership.”

And believe it or not, Environments is actually hiring! “There-branding that we’ve done over the past few years has reallyhelped put us in front of more new opportunities and we’ve beenvery busy over the past few months,” Chris reports. “We may notbe totally out of the woods, but we’re certainly cautiouslyoptimistic about prospects for the rest of the year.”

BroussardGroup, Texas Dealer, Takes to theStreets in Support of Worthy Causes

Members of Team Broussard get ready to strut their stuff at thisyear’s Susan G. Komen Race for the Cure.

At BroussardGroup in San Antonio, Bret Broussard, Sr. and histeam have been racking up the miles in support of worthy causesas part of an ongoing commitment to giving back to theircommunity.

continued on page 6

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MAY 2010 OFDEALER PAGE 6

Most recently, some 25 Broussard team members and their families and friends took part in San Antonio’s 2010 Susan G. KomenRace for the Cure.

Breast cancer research is just one of several deserving causes the dealership supports, explains Bret. The Broussard team has alsotaken to the streets for fundraisers in support of the city’s Down Syndrome Association, ovarian cancer research and the NationalMultiple Sclerosis Society, among others.

“It’s not just about raising funds and awareness of these terrible diseases,” explains Bret. “For many of us in the dealership andalso among our clients, it’s personal, and it also helps build a real sense of team spirit and unity among our people.”

First Allsteel Strategic Alliance Canadian Dealer Opens In Toronto Allsteel and three contract furnishings sales veterans in Toronto have teamed up to form that city’s first Allsteel strategic alliancedealer, Amovo Workplace Environments.

Key executives at the new dealership are Peter Schwegler, general manager; Tim Baxter, vice president of design and workplace,and Shawn Reid, senior business development manager.

Schwegler is the former president of the PS Agencies manufacturers rep firm, while Baxter and Reid come from a former Allsteeldealership. Collectively, they have nearly 70 years of experience in the contract furniture industry.

“Allsteel has had a strong presence in Toronto for many years and recently we’ve seen dramatic growth,” said Allsteel president JeffLorenger. “Now, in joining together with Peter, Tim, Shawn and the new team, we’re able to continue to build on the businessopportunities that this international capital and its surrounding regional market represent.”

“ F I N E A R C H I T E C T U R A L H A R D W A R E F O R Y O U R F I N E F U R N I T U R E ” ®

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Page 7: OFDealer June 2010

MAY 2010 OFDEALER PAGE 7

BIFMA Releases April Numbers, TrimsOverall Industry Forecast for 2010Earlier this month, the Business and Institutional FurnitureManufacturers Association (BIFMA) released its market statisticsfor April and again, the news was encouraging though in asomewhat muted fashion.

BIFMA reported April orders increased 12%, representing theindustry’s second consecutive month of year-over-year incomingorder growth and the first double-digit percentage increase sinceJune 2007.

However, while the order increase was encouraging, it isimportant to note that April appears to have been the low watermark for monthly orders and also represents the easiestcomparison of the year in terms of the percentage decline, notedindustry analyst Budd Bugatch of the Raymond James invest-ment firm.

April shipments’ decline of 2% represented a modestimprovement over March (when shipments were off 7%compared to the same month last year).

“The April data largely corroborated our view that the contractoffice furniture industry is bottoming,” Bugatch said. “Ordershave seemingly ‘turned the corner’ and industry backlog hasimproved sequentially for three consecutive months, suggestingshipments are likely to turn positive sooner rather than later.”

But while Bugatch said the acceleration in April orders was“heartening,” he warned that the year-over-year increases maymoderate in May, due to a somewhat tougher prior yearcomparison.

BIFMA has also updated its forecast for this year and next andnow expects 2010 orders and shipments to decline 2% and5.1%, respectively.

The new numbers represent a downward adjustment from theprevious forecast (which had called for a 1.5% order decline anda 3.8% drop in shipments).

On a more positive note, BIFMA significantly increased its 2011forecast, calling for a 9.9% increase in orders (versus its previousforecast of a 6.8% increase), with shipment growth of 11.1% (upfrom its prior +7.0% forecast).

Commercial Real Estate Vacancies to Peak Near Early 2011, Says Realtors Assn.Elsewhere on the research front, a new report from the NationalAssociation of Realtors (NAR) says commercial vacancy rateswill continue to rise in most sectors and are not expected to levelout until the end of this year or early 2011.

Vacancy rates in the office sector are projected to increase from16.9% in the first quarter of this year to 17.6% in the first quarterof 2011, but should ease later next year, NAR predicts.

In 57 markets tracked by NAR researchers, net absorption ofoffice space, which includes the leasing of new space comingon the market as well as space in existing properties, is forecastto be a negative 24.6 million square feet this year and then apositive 25.5 million in 2011.

Configura Releases CET Designer 2.4

Configura, makers of CET Designer, has released Version 2.4 ofthe program, which it says brings improved speed, performanceand project-size capabilities. A full list of updates has beenposted at www.configura.com.

AIS Achieves CarbonNeutral StatusSystems furniture manufacturer AIS announced last month it hasachieved CarbonNeutral certification.

“I firmly believe we all have to take responsibility for our CO2footprint,” commented Rob Lazarus, executive vice president ofsales and marketing. “If we all join forces and take action, we canmake a positive impact. By measuring and reducing our carbon

continued on page 9

www.configura.com/cet/release-notes/pre-release- notes-version-24.

Page 8: OFDealer June 2010

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Page 9: OFDealer June 2010

I N D U S T R Y N E W S continued from page 7

MAY 2010 OFDEALER PAGE 9

emissions to net zero through carbon offsetting, we are enablinginnovative, clean and renewable energy technologies to develop.”

To achieve CarbonNeutral status, AIS is working with TheCarbonNeutral Company, one of the world’s leading providers ofcarbon reduction solutions. The program involved an independentassessment of the CO2 emissions produced from the manu-facturing of AIS workstations in its Hudson, MA facilities. With thisdata, AIS was able to counter balance its emissions throughcarbon offsetting. This means that for every ton of CO2 that AISproduces, it pays to enable an equivalent amount of CO2 to besaved by an offset project somewhere else in the world.

United Stationers Opens New West Coast Rapid Replenishment Center for Alera FurnitureUnited Stationers has opened a West Coast Rapid Rep-lenishment Center (RRC) in Sacramento for its Alera furniturebrand. The new RRC, which offers 60,000 sq. ft. of storagespace, will serve as a repository for globally sourced Aleraproducts and adds inventory capacity to serve local distributioncenters based on market demand. As distribution centersexperience demand spikes, inventory in the RRC can be shippedout rapidly to where it is needed, United said.

With the new Sacramento RRC now open, United’s FurnitureDivision can receive complete containers shipped from off-shoremanufacturing locations directly to the West Coast, and fromthere to Sacramento for redistribution to all western facilities. TheSacramento RRC will supplement activities of United’s originalRRC, which was established in Memphis in 2006.

“Implementation of the Rapid Replenishment Center in Sacra-mento will make it easier than ever for dealers to market and sellthe full range of Alera furniture,” said Jim Fahey, president ofUnited’s Furniture Division. “Dealer sales efforts will besupported by an extra layer of safety stock that is available forquick replenishment.”

New Accreditation for National OfficeFurniture TrainingNational Office Furniture announces accreditation by the InteriorDesign Continuing Education Council (IDCEC) and GreenBuilding Council Institute (GBCI) for its 1-hour (.1 credit) and2-hour (.2 credit) level CEU training sessions.

National has adopted the Business and Institutional FurnitureManufacturer Association’s (BIFMA) level CEU training sessionsinto its own CEU program.

continued on page 10

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MAY 2010 OFDEALER PAGE 10

Design professionals and LEED-APs now can earn creditstowards their continuing education when attending either ofthese courses as both fulfill the Green Building Council Institute’s(GBCI) LEED Credential Maintenance requirements for CE credit.

“At National, we have a rich heritage and a strong, on-goingcommitment to sustainability. It’s evident in our products,facilities, people and culture. Additionally, part of this commit-ment is education, and we truly enjoy sharing ideas andinformation that empower people and communities to makesmarter choices concerning the environment,” says MendyClaridge, national product line manager, LEED-AP, Accreditedlevel CEU faculty member.

GLOBAL Goes Off to the Races in Nation’s CapitalAt GLOBAL’s Washington DC showroom, it was ‘off to the races’as derby season got underway with celebration of the upcomingThe Kentucky Derby. An enthusiastic A&D crowd had theopportunity to place faux bets on numerous horses (named afterpredominant designers over the years) as horses galloped downthe table top raceway to the finish line.

Meanwhile, judging was taking place for the Designer HatContest in which designers came dressed in their most festivehand crafted creations.

Prizes for the top entries were awarded (Win, Place and Show,of course) with the grandest prize of an Apple iPad going toKaren Peterson, a designer from OPX. Hunt Clements, A&Drepresentative for the Washington DC region, commented, “Theywere all so amazing — a truly fabulous showing of creativity byso many talented designers.”

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MAY 2010 OFDEALER PAGE 11

In late April, OFDA and several other organizations filed amicusbriefs with the U.S. Court of Appeals (11th Circuit) in support ofthe Institute for Justice’s (IJ) appeal of the mixed decision of JudgeRobert L. Hinkle of the Federal District Court in Tallahassee withrespect to the constitutionality of Florida’s interior design law.

This appeal is being carefully monitored, given its potentialsignificance for the future progression and structure of interiordesign laws in other states.

Judge Hinkle ruled that provisions of the law prohibiting adver-tising or representing oneself as an interior designer are uncon-stitutional (so-called “title” provisions), but dismissed the otherfour IJ challenges to the statute, all of which related principally tothe “practice” provisions of the law.

On April 19 the IJ filed an appeal of the ruling with respect to thelaw’s restrictions on the practice of commercial interior design.

OFDA has been involved in this case on behalf of its members inFlorida and in other states that have been injured by Florida’s law.

The legal challenge has been conducted wholly on a pro-bonobasis, given the significance of this case from a national standpointto other constitutional challenges of laws that restrict the practiceof various professions.

The IJ’s federal court challenge of Florida’s law in District Courtasserted that the statute was constitutionally deficient since it:

n Regulates speech without a sufficient justification and thusviolates the First Amendment;

n Sweeps far too broadly, requiring a license to perform ordinarytasks that nobody could rationally believe should be subject tolicensing and makes irrational distinctions;

n Violates the Due Process and Equal Protection Clauses of theU.S. Constitution;

n Is impermissibly overbroad and vague, and

n Violates the Commerce Clause and Privileges or ImmunitiesClause because any risk to the public from allowing an unlic-ensed person to practice nonresidential interior design isinsufficient to justify the statute’s burden on interstate com-merce and an individual’s right to pursue a livelihood.

The amicus brief notes that “Florida’s interior design licensing actposes a grave threat to the ability of OFDA members to compete[legally] in the Florida market by preventing them from providing[interior design] services integral to the sale of office furnitureproducts.”

This law requires that a state-licensed interior designer be involvedin the preparation of space planning documents and other designservices related to “interior nonstructural elements” of commercialbuildings.

Such elements include “fixtures”, typically including “specialdividers” such as cubicles, store fixtures, fixed seating, librarystacks, counters, etc. It also requires that a principal/officer of anyfirm practicing interior design must also be a state-licensed interiordesigner or architect.

The OFDA brief argues that Florida’s stringent licensingrequirements (education, testing and work experience) for interiordesigners are substantial and discriminate against interstatecommerce since they place an unjustified, undue burden onout-of-state dealers, designers, specifiers and manufacturers andtheir representatives who only occasionally participate in officeinterior projects in Florida.

Moreover, the state has not established that the law serves anylegitimate state interest or that a nondiscriminatory alternativecould not serve such an interest.

For example, in 47 other states, less restrictive measures such asbuilding codes and safety inspections are utilized to address anygovernmental health or safety concerns.

While it is difficult to predict when the appellate court will rule onthis matter, OFDA believes the ruling will likely be issued later thissummer.

Legislatures in other states—such as Pennsylvania—are movingforward with initiatives to impose their own “practice” laws, so thecourt’s ruling on this matter in Florida will be carefully and widelyscrutinized when it occurs.

Please address any questions on this matter to Chris Bates, OFDApresident ([email protected]; Tel: 703-549-9040, ext. 100).

OFDA Awaits Appellate Court Ruling on Constitutionality of Florida’s Interior Design Law

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MAY 2010 OFDEALER PAGE 13

When it comes to making decisions about technology, there isno single universal answer. It’s different strokes for different folksand personal preferences always come into play.

The good news is that a wealth of software is available to officefurniture dealers and, while tradeoffs and compromises areinevitable, so is the potential to bring significant productivityimprovements and enhanced marketing power to your dealership.

For our June cover story, we went out to a number of dealersand asked them about some of their own technology choicesand the factors that lay behind their decisions. Here’s what theyhad to say.

DDMS Adapts to the DealerPrice Modern with sales offices in Baltimore, Washington DC,and Raleigh, NC, is one satisfied DDMS user. The company hasbeen using the DDMS Office Furniture Edition for three years nowand as far as Tracy Michel, controller for Price Modern, isconcerned, it’s a complete package and a huge improvementover their previous program.

DDMS Office Furniture Edition helps Price Modern manage salesoperations and automate order entry, purchasing, andaccounting. But those aren’t the only reasons Price Modern

made the switch. Its ability to handle multiple locations was ahuge plus, contends Michel.

“Some of the other software out there didn’t have the ability todo multiple locations from an accounting perspective or ordertracking,” she explains. “Other than that it was time to get awayfrom our old software. We needed something that was going tomove, change and progress with us.”

The one feature that stands out for Michel is the ability to trackjob costs and balance out inventory every month. Enhancementshave been plentiful and Michel says Price Modern was the driverfor some of those.

“For example, the system has a quote function, but the functionof releasing a quote to an order was bare bones because nobodyhad really utilized the quote function before,” explains Michel.“We had them upgrade the quote release to order process toaccommodate credit reviews and authorizations for orders.”

Price Modern continues to work with DDMS to improve thesystem and Michel is looking forward to enhancements to thesystem.

“Some of these we consider simple improvements that can havea big impact; some of them are more in depth and complicated,such as looking at ways to make commission calculations

continued on page 14

TECHNOLOGYin Action:

Office FurnitureDealer Software

By Scott Cullen

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MAY 2010 OFDEALER PAGE 14

easier,” reveals Michel. “The challenge is everybody calculatescommissions a little bit differently. Trying to make something thatfits everybody is a daunting task.”

Michel says DDMS did a nice job with training from the start, butnow it’s even better.

“If anything their training process has improved,” she says.“Things we found we didn’t learn, we’ve gone back and said ‘Youdidn’t point this out to us and we learned it the hard way,’ so theywent back and worked that into their training.”

Overall, DDMS has been a flexible and adaptable technologyprovider, she adds.

“We’re working with a company that’s changing with us andgrowing with us,” states Michel. “As times change and needschange it’s great to have a company that’s actively working toconstantly improve their software.”

Animated Vision’s Visual PlannerThe Orange Stationer, Inc. in Orange, TX has been using VisualPlanner from Animated Vision for three years now and says itdoes exactly what it’s supposed to and then some.

The program allows sales reps to quickly and easily create 2Dand 3D drawings as well as a detailed bill of materials, but thefolks at Orange have a simpler view of what it does. “It helps sellfurniture,” states Henry Seals, president.

For Seals, the best thing about the program is its ease of use.First of all, it’s a web-based program that doesn’t require anysoftware installation. Intuitive navigation and ‘drag and drop’functionality means most anyone can get up to speed quickly onthe program.

Better yet, employees don’t need an AutoCAD or GIZAbackground. It transforms every office layout into a 3D view soclients can better visualize their designs. Also helpful are theprogram’s online collaboration capabilities, which allow TheOrange Stationer’s sales reps to share designs online withcustomers.

The program can even be embedded on The Orange Stationer’sweb site as a way to collect qualified sales leads.

KhameleonFor Building Service, Inc. (BSI) in Milwaukee, WI, Khameleonsoftware represents an ideal program for keeping costs downand allowing them to do what they do best—provide customerswith the best possible service.

BSI has been using Khameleon for eight years and to date theprogram has helped the company manage more than 30,000projects.

The primary reason they selected the program, explains LoriKletzien, vice president, was the amount of information containedwithin the system, which has been helpful for managing BSI’soverall business.

This information helped BSI identify how much design work thecompany was not charging for on certain projects, for example,and provided essential data to fix that issue.

The ability to track projects and the costs of those projects rightdown to the penny is another benefit.

“We have several different divisions related to one project andwith Khameleon we can track expenses and costs, enabling usto determine a project’s true costs,” explains Kletzien. “Newassociates can adapt very quickly to our processes. Bystreamlining our processes it has enabled us to keep our staff ata minimum and still satisfy our customers in a timely manner.”

Khameleon also facilitates cross training and collaboration. Eachmodule can be accessed by anyone on the team working on thatproject, creating a staff with the ability to share responsibilitiesand divide labor more effectively.

“One person doesn't need to do everything on a project,”explains Kletzien. “It can be assigned to others, allowing us tocomplete projects more quickly.”

Lastly, Kletzien gives high marks to the support BSI receives fromKhameleon, which reduces downtime.

“Although we have become very good at troubleshooting issuesourselves, it is reassuring to know there’s always someone tocontact,” she points out.

Configura CET DesignerWhen Business Office Systems, Inc. in Itasca, IL, needed a wayto help their sales team and designers quickly learn manu-facturers’ products so they can more effectively design andspecify interiors for their customers, they turned to ConfiguraCET Designer.

The software offers a unique interface with photo-realistic designand rendering along with complete specifying and orderingcapability.

What’s also helpful is that parts and prices are automaticallyadded in the background by the software during the designprocess, so that once the design has been completed, the salesrep or designer can quickly present the client with the true costof the project.

continued on page 15

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What made Configura CET Designer a good fit for BusinessOffice Systems?

“Ease of use,” states Pam McClelland, vice president ofprofessional services for the dealership. “Configura allows us todo 3D color renderings very quickly. The program was so userfriendly it took very little time for training. Results were seenalmost immediately.”

McClelland contends other products on the market requireextensive training and constant use for users to becomeproficient. Not Configura CET Designer.

Plus, she says, renderings using competitive programs are timeconsuming and costly to produce. Besides ease of use,McClelland finds that providing customers with a rendering helpsthem better visualize what they are getting and avoidsmiscommunication and mistakes.

Configura CET Designer, McClelland says, also brings anotherdimension to managing furniture standards program.

“We had one customer where the standards were welldocumented to help them visualize the look and image corporatewanted in each of its locations,” she explains. “However, therewas one particular location with a staffing requirement that could not be met in the space using the regular furniturestandards program.”

Using CET Designer, Business Office Systems developed avariation to the standard, reducing the sizes to accommodatethe personnel needed. The customer was reluctant to moveforward with the variation, though, without a visual confirmationthat the changes would still provide a consistent look and imagecompatible with the standards.

“We produced a 3D rendering of the space showing them severalview points,” says McClelland. “The modifications to the stan-dard were approved and the order placed.”

Furniture Command CenterWashington Workplace in Arlington, VA, has been using FurnitureCommand Center (FCC), a web-based application for thecontract furnishing industry, for the past year.

FCC is a custom application that allows furniture dealers to enter,track and change orders as needed. Quotes can be created fromscratch or copied from existing quotes or orders and thene-mailed, printed or saved as PDF files.

After a quote moves to purchase order status, the applicationautomatically creates a customizable workflow process, ensuringorders are fulfilled smoothly.

The program also offers built-in support functions such as CRMand status reporting, and integrates with accounting software.

For president John Murphy, one of the best things about FCC isthat it’s a cloud-based system. “Users can access it fromanywhere—home, car, or office,” he says.

Also appealing is its customizable graphical interface and focuson profit. Plus it was easy to learn.

“It’s real intuitive and real direct, and for anybody who has half abrain, it should take them no more than half an hour or 15minutes to learn,” states Murphy.

The program also does an excellent job of creating reports thatMurphy says are easy to follow and “clear from an aesthetic pointof view.”

All 15 users at Washington Workplace love it, and Murphy sayshe couldn’t be happier that he made the switch.

Channel Dyanmix’s Matrix for BusinessMatrix for Business (MxB) from Channel Dynamix providesOfficeScapes in Denver with a functional reporting and analysistool that runs on top of the company’s Hedberg Data System.

The dashboard layer offers visual graphs and pivots that presenthigh-level information while the analysis layer allows users to customize report views. It also has advanced filtering andsorting features.

“The best feature of this product is the ability to pull informationfrom our Hedberg system quickly, easily and cleanly,” saysJennifer Barnes, director of sales support. “Matrix for Businessallows for information to be exported into Excel. Once data is inExcel we can manipulate the information easily and change theformat to meet our needs.”

Another feature Barnes likes is the program’s customized fieldsand measurements.

“Those have been extremely helpful and are features we couldnot have found anywhere else,” she says. “We have severalmeasurements that are tracked through Matrix for Business thatallow us to slice and dice the data to see where we are havingsuccess or where we need to make improvements,” says Barnes.

And for those times when a customer requests an order or quotein Excel, the data in Matrix allows Barnes to easily access thisinformation.

It’s been three years since OfficeScapes started using theprogram and Barnes still raves about the support she receivesfrom Channel Dynamix.

“They understand our needs and our business and are extremelyeasy to work with.”

continued on page 16

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MAY 2010 OFDEALER PAGE 16

ICE Edge Business Solutions’ ICEAs far as Christine Fleming, senior associate, DIRTT with G.L.Seaman & Company in Carrollton, TX, is concerned, ICE fromICE Edge Business Solutions Ltd. is nice.

G.L. Seaman has been using ICE for the past four years. It wasselected for its rendering capability along with the ability toprovide pricing and make instant changes as needed. Theprogram also allows the dealership to more closely interact with clients.

“We can make changes to products, colors, and layouts with theclient, and give them updated pricing on the spot,” says Fleming.

Software updates are a fact of life and Fleming actually wel-comes those and appreciates the timeliness of those updates.

“When something in the software changes, they push out a newupdate via the Web immediately.”

Fleming also likes the warnings and suggested fixes the programprovides when users try to do something the product can’t do.

“With other specifying systems, it’s up to you to know what willand will not work together, which creates mistakes. This featureallows a new designer to learn the specifications much faster.”

Ultimately, ICE has made for a closer and warmer relationshipwith clients.

“It’s allowed us to show our clients what they are getting downto the colors,” says Fleming. “It has cut down turnaround timebecause we can do renderings and pricing in house rather thansending it to the factory to price.”

Team-DesignOffice Images, Inc. in Rockville, MD, has been using Team-Design business management software for the past 10 years.

“The software efficiently handles both commercial orders anddirect orders (those billed by the factories and dealer receivescommission only),” says Deb Horrworth, principal of OfficeImages. “Once a proposal is entered into the system, everythingis automatically generated and tracked from that initialinformation. Team-Design handles complete order processingand company accounting.”

Prior to implementing Team-Design, Office Images used differentpackages, such as proposal software and QuickBooks that didn’tcommunicate with each other.

“This required duplicate entry of data and increased the poss-ibility of errors,” recalls Horrwath.

Thanks to Team-Design software, Office Images can nowfunction virtually error free.

RPC Software’s CORE Business SystemDeep in the heart of Texas, Houston to be precise, The OFIS usesRPC Software’s enterprise resource planning software, COREBusiness System.

According to Carol Hedrick, director of finance, the dealershipwas wowed by the software from the moment they saw their first demo.

“The main selling point for us was the flexible and customcapabilities of RPC,” says Hedrick. “Another point of interest wasinstant updating and the ability to electronically upload orderswith our major vendors.”

Asked what she likes best about the software, Hedrick picks the workflow.

In an economy that’s forced the company to downsize, COREBusiness System has been a big help in filling the gap, allowingthe dealership to remain productive with fewer people.

Hedrick has also found RPC an easy vendor to work with andvery responsive.

“RPC’s willingness to listen to the needs of the dealer and towork with the dealer to accomplish their needs is outstanding,”she says. “The product is such a great tool and its flexibility hasincreased our time management tremendously.”

IQ Coordinator Dave Branch, president of Facilities Connection in El Paso, TX,was turned onto IQ Coordinator’s Professional ServicesManagement software from The IQ Group 15 years ago.

IQ Coordinator’s Professional Services Management softwarehelps Facilities Connection manage their employees, information,and relationships.

They use it to manage sales leads and forecasting, projects,labor estimates, work orders, scheduling, time sheets, jobcosting, documents, and assets. From a project managementstandpoint it keeps track of all of Facilities Connection’s Ganttcharts and all the data necessary per client site and rolls it into amaster schedule.

“It has allowed us to manage the people part of our business,understand job costing, and track all job orders and projectmanagement,” says Branch.

The program has become increasingly important for thedealership’s work with the federal government and Branch haseven hired Sean Clouse of The IQ Group as one of FacilitiesConnection’s primary

continued on page 17

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MAY 2010 OFDEALER PAGE 17

subcontractors to work with federal clients, most notably theDepartment of Defense.

“He participates as a subcontractor at least once a week andsometimes three times a week on calls for DOD projects thatwe’re working on,” reports Branch.

That extra help is essential because some of those projects areincredibly complex. Clouse is responsible for compiling all theinformation related to calls from U.S. Army installations all overthe world.

“He puts that in a structure within the software and that sorts itby priority and responsibility by date, installation, and person,”explains Branch. “Using the software, he can send the right stuffto the right people at the right time. It’s very, very sophisticatedproject management.”

Asset SystemsAdvanced Office Elements in Malvern, PA, has been working withAssetWIN from Asset Systems since 1999, because, explains PatTaylor, vice president of asset management, “It did what weneeded it to do.”

“We were looking for a system that had barcode capability, wouldallow us to scan, and allow us to keep track of customerinventory databases,” recalls Taylor. “It had all the features wewere looking for at the time.”

The program is primarily used by Advanced Office Elements’warehouse staff.

“It’s definitely allowed us to do a better job of keeping track ofour customer inventory by allowing us to scan in and scan out,”says Taylor. “The people in the warehouse do that and it keepsmore accurate track of the client’s stock.”

It hasn’t been an inordinately difficult system to learn.

“We’ve trained numerous people on it since we’ve been using itand haven’t had any real issues,” says Taylor.

As far as support, Taylor reports, Asset Systems providesexcellent support whenever Advanced Office Elements needs it.

There isn’t anything she would change about the systemalthough there are some capabilities that Advanced OfficeElements has yet to leverage.

“Right now it suits our needs and allows us to do more thingsthan we’re actually doing,” notes Taylor.

For example, the program offers the option to attach pictures toevery item and do workstation typicals, even though the

dealership hasn’t delved into those capabilities yet. But Taylorsays they might use that eventually.

Prior to implementing AssetWIN, employees were creating theirown lists and placing that information in spreadsheets. That wasa time-consuming process, and automating that process hassaved time and effort and reduced the potential for human error.

Taylor also gives high marks to the program’s report-producingcapabilities. “You can sort and do reports in any number ofmodes to suit numerous situations,” she says.

There’s no doubt in Taylor’s mind that this is the right system forAdvanced Office Elements. Considering the dealership has beenusing it for 11 years, that’s a darn good track record.

Scott Cullen has been writing about the office products,office furniture, and office equipment industries since1986. He has been working as an independent writer andeditor since 1997, and is currently editorial director andmanaging editor of OfficeSolutions and OfficeDealermagazines as well as publisher and editorial director ofthe new ezine, Imaging Solutions Reseller.

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continued on page 20

Bill Kuhn, principal ofWilliam E. Kuhn &Associates, is a notedindustry consultant,writer, and speakerwith over 35 years ofindustry experience. Heconsults with dealerprincipals and theirmanagement teams inareas of strategicplanning, leadershipand organizationaldevelopment,marketing, financialmanagement, valuationand merger/acquisition. For moreinformation, contact Billby phone:303-322-8233, fax:303-331-9032, ore-mail:[email protected].

Three decades ago, J.R. Daniel, a managing

director of McKinsey & Company, first dis-

cussed critical success factors in management

literature. He purported that in most industries

at a given point in time, there are a very small

number of factors—typically three to six—that deter-

mine success.

The factors differ from industry to industry and change as business

conditions change. They may also vary by geographic location based upon

local market, economic and competitive conditions. They are not

always the obvious ones.

As an example, in the early 1980s, car dealers were failing at a rapid

rate—thousands of them went out of business at the time. An extensive

study was made by the auto manufacturers and trade associations to

identify the critical success factors of automobile dealers.

In spite of what dealers believed and were emphasizing, the sale of

new cars and brand loyalty were not among the critical success

factors identified.

Three other factors were identified and proved to be the salvation for

dealerships: the sale of used cars, the sale of parts and the quality

of the dealer’s service department.

Past industry critical success factorsFive years ago, as our industry was beginning to recover from the

recession that began in the early part of this decade, I conducted a

survey of what dealers believed were their critical success factors.

The top four factors were 1) the ability to perform as a low-cost

operator, 2) the ability to offer unique added-value, 3) a

customer-driven culture, and 4) highly deliverable systems.

Other factors included staff competency, business mix, effective cost

control, technological superiority and partnerships and alliances.

In the boom period in the late 1990s, I surveyed dealers once again.

At that time, success factors included a few of those already

mentioned, but those most frequently cited were growth, market

Critical Factorsfor Future SuccessBy Bill Kuhn

MAY 2010 OFDEALER PAGE 19

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MAY 2010 OFDEALER PAGE 20

power, process development from sales to post-installation, and

embracing new technology (then often characterized as

“up-to-date” data processing systems). You can see, over time,

how things have changed.

Earlier this year, I informally surveyed several dealers for a thirdtime. When compared to five years ago, many of the samefactors were mentioned, often along with the ability to be flexibleand innovative. Unfortunately, I find that flexibility and innovationare more often talk than practice.

You may feel some of these factors are applicable to yourdealership today. If so, include them in the list of your org-anization’s critical factors.

However, I suggest that you ask yourself if those are as relevanttoday as they once were, and consider the three factors that Ibelieve are most relevant for the majority of furniture dealers in2010. Remember, the list is typically three or four, six at most, forsuccess at a given time.

Defining this given point in time - 20102010 is a critical point in time for the furniture industry, perhapsthe most critical ever. Most believe our industry will have somebetter months, but those will be offset by months that are not asgood—in other words, no consistent improvement trend until late2010 or 2011.

BIFMA currently forecasts a 5.1% decline in 2010 with a 11%increase in 2011. A word of caution: BIFMA has often had tolower its projections.

Our industry has shrunk drastically. We are currently at the samevolume level we experienced in 1992 and are down fully 41%from the high of 2000. It may be well into the next decade beforewe again reach the record high set in 2000.

Intense pressure on industry gross margins is expected tocontinue for many years to come, leading to additional failuresand further industry consolidation.

Today’s critical success factors are not comparable to those ofthe 1990s or even 2005 to 2008, both time periods being one ofconsistent growth.

Today, it’s all about strategic changeEvaluating current industry conditions as well as analyzingthose dealers who are doing very well along with those who arenot, I have identified three critical success factors that I believeare the most relevant for the majority of furniture dealers today.All three emphasize strategic change and are based on these assumptions:

n Your dealership has survived this recession, albeit struggled.

n Your focus over the past two years has been on maintainingthe business—cutting costs to maintain liquidity and someprofitability in the face of lower revenue.

n Our industry will remain volatile, but, at some point in time inthe relatively near future, there will be a return to at leastmodest growth.

n My belief that most dealers will continue to focus onmaintaining the business and not become sufficientlystrategically positioned to take advantage of existing andfuture opportunities—which provides tremendous opportunityfor those who do acknowledge and manage the critical factorsof strategic change.

Critical Success Factor #1:

Operational effectivenessHaving gone through two recessions in a ten-year period, mostdealers have already cut costs and laid off staff, striving to bethat low-cost operator in the customer’s mind and cutting peopleand expenses to the bare bones to survive and maintain somelevel of profitability.

Striving for low-cost efficiency and employee productivity is notthe same as operational effectiveness.

Companies that only cut costs and curtail investment spendingrarely thrive once a recession is over, because areas such asexceptional quality and customer responsiveness typically suffer,and momentum is lost. Retrenching is typically a look backwards,not forwards.

As University of Colorado business professor Wayne Casciosays, “You can’t shrink your way into prosperity.”

Michael Porter, the widely recognized guru on strategy andcompetitive thinking, stresses the importance of achievingoperational effectiveness and becoming a low-cost operator withhighly deliverable systems that utilize speed, timely response,quality and enhanced technology.

Operational effectiveness is the sum of hundreds of activities.The key is looking at each activity, cutting out all unnecessarycost, reducing waste, and evaluating technological resourcesthat can help to reduce costs.

Operational effectiveness is the result of knowing where to cut—primarily anything that is not perceived as value to yourcustomers—and knowing where to spend and makeinvestments.

continued on page 21

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Bottom line: Today’s customers select dealers based uponoperational effectiveness. They demand low cost and expecthighly deliverable systems. Proven operational effectiveness thendetermines future repeat business.

Critical Success Factor #2:

Strategic marketing positioningIn addition to operational effectiveness, Porter emphasizesstrategic positioning (unique added-value in a customer-drivenculture), which he believes is absolutely essential to sustainedcompetitive advantage.

Porter says it very clearly: “Strategy is about making choices andtrade-offs; it’s about deliberately choosing to be different.”

I’ve added the word “marketing” to Porter’s words. I find thatmarketing superiority among furniture dealers determines muchof dealer success today, especially for those whose focus is onthe top lines—revenue and gross margin—not just the bottom line.It’s performing differently and better than your competition does.

As you address your strategic marketing positioning, I would askyou to answer—validate—two questions. 1) Is your entireorganization customer-driven? This means that your organizationunderstands your customers’ needs and priorities; that yoursales staff knows how to listen to customers, identify problems,and provide solutions and that your support staff understandsits role in building and maintaining customer relationships. 2)Where do you add unique value compared to your competition?”And where do you not? Unique added-value is not merely a listof products and services. It includes distinctive service, customerrelationship management, offering your customers the bestsolutions to their organizational needs.

Pricing is a component of added-value. Without definable added-value, you become a commodity dealer, unable to establishprice differentiation. With added-value, you can use pricing as asales tool to clarify your advantages.

As we all know, in today’s market, discounting is horrendous.Everyone wants bargains and the lowest price, and there may bejobs you should turn down.

But positioning around price value, unbundling products andservices and having a highly educated sales force andmanagement team that understands customer priorities, wherethey will and won’t spend money and why they might switchdealers is the way to drive revenue dollars at realistic margins.

Strategic marketing positioning encompasses many factors:spotting new opportunities that others miss, identifying the best

product/service and customer mix, investing in both existing andnew customer business, having the financial and marketingexpertise to know where and where not to spend money, andproviding comprehensive training to develop a talented salesstaff that can excel at generating business.

Strategic marketing positioning is a critical short-term andlong-term critical success factor.

Bottom line: If dealers—and manufacturers—have not developedstrong customer relationships and cannot substantiate addedvalue, customers will consider us a commodity industry, forcingmargins to even lower levels.

Critical Success Factor #3: Organizational skill and agilitySuffice it to say that in good times or bad, opportunities still ariseand an organization that possesses speed, skill, flexibility andagility will survive and prosper.

Size isn’t everything. Having skill and agility is, and this may bethe most distinguishing critical factor for dealers today andtomorrow.

Skill is essential. Having talent is one thing, but the ability to applythat talent is another. I strongly believe it takes a blend ofexperienced old-timers and the younger generations (Gen X andthe millennials). I was amazed at a recent poll that showed that76% of those surveyed did not feel the need to get youngerpeople involved in the business.

Organizational agility is a company’s ability to identify oppor-tunities and close on them more quickly than the competition, torealign resources quickly to meet constantly changing conditionsand opportunities.

An agile dealership requires leaders with vision, a sense ofurgency and a strategic mindset and managers who can execute.

Bottom line: A dealer will be unable to achieve competitiveadvantage in the areas of operational effectiveness and strategicpositioning without a talented and skilled staff at all levels withinthe organization (leaders, managers, and support staff), andunless the staff can react quickly to challenges and changingsituations with speed, flexibility, and agility.

Applying critical success factors means implementing a new andstrategic approach to your organization. Managing this transitionmay be the toughest challenge you’ll face. But it can beaccomplished, and those dealers who develop a strategicorganization will be the leading dealers of the future.

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MarathonBuilding

EnvironmentsWinning the Race for Profits

By Alicia Ellis

Marathon Building Environments is pulling

ahead of the competition and on the track

to success with a new name, a creative

mix of office furniture and vertical market

products, and a magical philosophy that

combines freedom with responsibility.

Started 23 years ago in Columbia, MO, by

owner Greg Wolff, Marathon began as a

Xerox dealership and transitioned away

from copiers and printer and into office

furniture more than nearly 12 years ago.

Six years ago Frank Sovich joined the

Marathon Office Interiors team as co-

owner and took the helm of the furniture

division so that Wolff could pursue new

market opportunities.

Primarily a Steelcase dealer, Marathon has

grown over the years to become a $6 million

operation with 20 employees serving

government, corporate, education and

healthcare facilities throughout Missouri and

beyond.

With a 10,000 sq. ft. open showroom and

office area opened six years ago,

Marathon’s eclectic décor is reflective of

their core values and a cause statement

that declares their goal “to provide a

magical experience to our customers, our

team, our community and our planet.”

“People come into our office and show-

room and see our brightly painted walls

and modern artwork created by a priest in

St. Louis, and they smile,” said Sovich,

who claims proudly, “We live our cause

statement and our core values to the best

of our abilities.”

For customers this cause statement

means excellent follow up and networking

through events, Facebook and continuous

training, while for employees it means a

happy place to work that encourages

thinking outside the box and respect for all

employees.

“We celebrate birthdays every month, we

have BBQ’s and make time for the staff to

bond,” said Sovich. “Our team members

know that they are held responsible for

their actions and sales and with achieving

those they also earn certain freedoms.”

PROFILE

continued on page 23

MAY 2010 OFDEALER PAGE 22

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D E A L E R P R O F I L E continued from page 22

Sponsorship of local University of Missouri

athletic events, getting involved with local

charities and donating items from its

pre-owned inventory to local non-for profit

organizations represents only the begin-

ning for Marathon’s staff when it comes to

giving back to the community.

“We ask that every one of our team

members belong to at least one org-

anization outside of work,” said Sovich,

who also spoke proudly of Marathon’s

commitment to environmentally friendly

and sustainable products. “Not only are

many of our products cradle-to-cradle

certified and ‘green,’ but we also have a

recycling program in our offices, use cloth

hand towels, turn out lights when not in

use and we even bought a Scion instead

of a van.”

Working in such a free thinking environ-

ment, it’s no wonder that Marathon has

come up with some pretty progressive

ideas that have led to significant new

areas of development.

The dealership’s commercial flooring

division has grown over the past four

years, thanks in part to Marathon’s rela-

tionship with Starnet, a commercial floor-

ing buying group that provides leads,

rebates and up front discounting.

At the end of last year, Marathon took their

offerings to the next level with the

purchase of Pioneer Window Works, a

35-year old window treatment and awning

provider. To reflect its broadening product

mix, the dealership also changed its name

to Marathon Building Environments.

“This change helps to identify Marathon

Building Environment as a business that is

all encompassing when it comes to build-

ing solutions, both interior and exterior,”

said Sovich. “We offer top-name office

furniture, commercial floor coverings from

Milliken and Shaw, window treatments and

awnings and combine them with interior

design and planning services that take an

office space from ‘Now to Wow!’”

“We’ve been working more and more

with general contractors and flooring

and awnings are always on their bid

lists,” said Sovich. “This has allowed us

to get in on the ground floor of a

number of projects that have led to the

sale of office furniture.”

And if you’re a furniture dealer like

Marathon, with an increasingly broad

offering of furniture-related products and

services, getting yourself on the ground

floor of any furniture project these days is

a pretty nice place to be!

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MAY 2010 OFDEALER PAGE 24

It may not feel much like a recovery—more like three stepsforward and two steps backward, but we will eventually pull outof the current stagnant economic climate and people andbusinesses will get on with their lives.

But those lives as we knew them are changed and as businessesreposition themselves, reinvent and broaden their offering, theyalso must prepare for the recovery to come.

As difficult as business is now, being caught flat footed andunprepared to manage an increase in demand could be evenmore detrimental to the long-term life of your dealership.

Below are some areas to consider as we lurch towards bettertimes:

Differentiate your business. Define your unique attributes. This is not a new strategy, butmany dealers don’t understand what it means, appreciate itsimportance or know in any useful way how it can be done.

Different is not being the same. It means being known forsomething that your competitors are not. It means havingdifferent conversations than your competitors are having.

Everyone is selling furniture, space planning and installation. Butwhat value do you bring beyond all that and why shouldcustomers choose you? For dealers, the answer is rarely aboutthe product, but don’t tell your manufacturer that.

I spoke with one dealer recently who told me quite seriously thattheir differentiator was that they worked hard. Really? Does thatmean no one else is working hard?

Another dealer declared their differentiator to be their full productand service offering—soup to nuts so to speak. Again, Iwondered if they had taken a look at the competition recentlysince many dealers can make the same claim.

Be clear about what your market thinks about your dealership.Few of us see ourselves as others see us, and that includesbusinesses. The market’s perception is your reality.

Being open minded to hearing the good as well as the bad willgive you a lot of information about how to better differentiate aswell as make improvements moving forward.

After all, getting better puts you in good position now and willhelp propel your efforts in the future.

Innovate. Webster’s defines it as, “to introduce new methods, change inthe way of doing things.” We have all heard that we need toinnovate, but when something new is suggested, how often is itreally embraced and tried?

continued on page 25

PreparingRecoveryfor the

The faithful know it’s coming…By Trish Brock

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P R E P A R I N G F O R T H E R E C O V E R Y continued from page 24

MAY 2010 OFDEALER PAGE 25

Get out of the box. If something is done in

nine steps, do you continue to challenge

yourself on how to do it eight steps, and

then seven? I have witnessed too often

the introduction of new ideas, only to see

them dismissed because no one else has

tried them yet.

Hard times call for fresh ideas and new

solutions to new challenges. Hint: The first

one out of the gate gets the head start

and therefore becomes known for being

the first and innovative. These are great

attributes, will help you differentiate and

will help develop stronger practices.

Don’t confuse “busy”with “productive.” Most people may feel like world champs

at whack-a-mole these days, but stop for

a moment and get some perspective.

We all know we must work “smart” and

now is the time to redefine what that

means. It’s easy to get sucked into the

daily crisis, but chances are good that

many are repeat crises which suggests

improved systems/procedures might

mitigate some of the “busy” activity.

Without tackling some of these issues,

they will hamper your business when

activity picks up and give “busy” a whole

new meaning (and not in the good way).

Grow your people andkeep them. Everyone wants more and better sales-

people. But the reality is that many have

left the industry and more continue to do

so. And with them goes a lot of valuable

experience.

Product training is obviously necessary,

but much of the sales training is built

around the products instead of devel-

oping professional skills in areas such as

communication, leadership development

and presentations.

Help your people develop their strengths,

listen to their suggestions on how they

can produce more and invest in their

professional growth and development.

Don’t tell them to sell more—show them

how. Helping them grow will pay divi-

dends for growing your business.

Equip your people. One dealer told me recently he would

spend some money on marketing and

sales materials when his people sold

more. In the world of sports, that would

like telling the football team they would be

getting pads and helmets once they start

winning some games.

Yes, every dollar has to be scrutinized in

this economy, but if you are committed to

being in the game, you must have the

right equipment. ”Suit up” your people.

Be visible. Have a good website, do interesting email

blasts, host creative events, sponsor

industry activities and give your people

support materials.

Your competitors are doing all these

things, and if you aren’t, you can’t expect

to be top of mind in your market.

Thinking that “feet on the street” can

accomplish the coverage that smart

marketing will is exactly what your com-

petition hopes you will think.

Good marketing will enhance your sales

efforts, make cold calls warmer, enhance

your name recognition and give your

people the help they need.

Stop relying on yourmanufacturer. While every dealer believes their product

to be the best—and there are some truly

amazing products available these

days—the reality is that many buyers see

commercial furniture as a commodity

items and take the view that all products

are pretty much all equally good and can

solve any problems.

Trying to differentiate by product is what

your manufacturer does. You need to

differentiate by your services, your track

record, your support, your profes-

sionalism, your ability to solve problems,

your experienced people, etc. You must

be known for your own unique attributes

in your own community.

Let your sales people sell. In these times of cut backs and pressures

to do more with less, the engine of your

dealership is your salespeople and they

need to be out selling.

Take a look at time spent selling vs. time

spent doing take offs and other admin-

istrative tasks. Consider also that the

more successful a sales person is, the

more encumbered they become with

administrivia, with even less time to sell.

Don’t penalize your best people by

burdening them with non-revenue produc-

ing activities. Wouldn’t time be better

spent by a salesperson networking for

new business at an event rather than

counting panels?

Position them and your dealer to be on

top of developments in the market. Take

away as many obstacles as possible and

let them do what they do best — sell.

continued on page 26

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P R E P A R I N G F O R T H E R E C O V E R Y continued from page 25

MAY 2010 OFDEALER PAGE 26

“Because we have always done it this way” doesn’t work with new economy challenges.Now is the time to evaluate the efficiencies of your internalprocesses and ask yourself if “best practices” are really simply“common practices.”

Can steps be taken to shorten the number of “hand offs” fromproposal through installation?

Do you track error rates and implement new methods in order toreduce them? Is it “shame and blame” when things go wrong, ordoes your dealer grow from past experiences?

Learn. Read, explore new ideas and try different approaches. “Back tobasics” and reinvigorating “block and tackle” tactics worked foranother era.

While some things may not have changed, the business climate,how people communicate and work places have changeddramatically. Applying road weary ideas to a new age andgeneration will not get you very far. You must be adapting andchanging not only ways of doing business, but your attitude andperspectives as well, if you want to come out of this recessionas a contender.

Have a positive attitude. We all know this and at times it begins to sound trite, but yourclients and people need for you to be upbeat and optimistic. Putanother way, being fearful, cynical or pessimistic will not instillconfidence, and doesn’t inspire anyone to do anything besidesbecome a “victim” and make excuses for why they can’t besuccessful.

Model positive behavior and give the people around you theenergy and inspiration to also be positive.

There’s no going back and things will never be the same. We canchoose to look longingly in the rear view mirror or we can jumpfeet first into the unknown and prepare for the next phase ofbusiness.

Being receptive to our changing environment and preparing forit with new approaches will put you in a good position to thriveas our economic climate improves. And it will!

If rebellion is about the confidence to go anywhere, then meetthe latest rebel in collaborative, yet personalized space.This go anywhere and look great laminate series gives durability a new sense of style with mix and match options, layered surfaces and tiered storage. Fully assembled and shell based components create versatility for the way your organization works today and tomorrow with incredible affordability.

Renegade™

800.482.1717www.NationalOfficeFurniture.com

Join us in Chicago June 14th -16th | 325 North Wells Street | House Party Monday 4pm

Trish Brock, Principal of Trish Brock & Associates, is a well-knownindustry consultant. Her cross-functional consulting group spe-cializes in helping dealers solve identity, branding and sales supportcollateral challenges. She also conducts Perceptual MarketAssessments and Culture Evaluations to better define marketpositioning and effective brand messaging. She can be reached at720-277-3035 or at [email protected].

Page 27: OFDealer June 2010

MAY 2010 OFDEALER PAGE 27

The latest buzzword to hit the office furnitureindustry is BIM. Short for Building InformationModeling, BIM is the future of the Archi-tecture, Engineering and Construction (AEC)industry and will most certainly have an effecton how the office furniture industry plans andexecutes corporate interior spaces.

Three-dimensional, real-time, dynamic build-ing modeling software to increase productivityin building design and construction, BIMcovers geometry, spatial relationships, lightanalysis, geographic information, quantitiesand properties of building components likewalls, HVAC, lighting, ceilings, floors, windowsand more.

In a nutshell, BIM software will allow architectsto design a building—including just about allof its many components—from the ground up.

Building owners will be able to see in 3Dexactly what the building will look like,determine how many of each components thebuilding will need and make real-time changesthat will not only change the look of thestructure but will account for those changesby altering all the interior systems associatedwith that change.

According to Aubrey Cattell, head of productsfor Autodesk Content Network, a pioneer inBIM software and solutions, BIM creates anunderlying database and model for a buildingbased on exact specifications from parts andcomponents manufacturers.

“If I move a door, BIM will understand howthat door fits in the larger picture,” explainedCattell about Autodesk’s Revit BIM modelingsoftware.

“If I change one part, it will ripple down throughthe building’s system to account for and helpto correct any component affected by thechange. The idea is to test, analyze and valid-ate before the first slab of concrete is poured.”

“There is more demand for visualization on theowner level,” said David Banki, Autodesk’sdirector of business development, whostressed that for Autodesk Revit and theAutodesk Seek web service which currentlyindexes more than 35,000 product families,manufacturer participation is essential.

“This pressure for 3D visualization is the cata-lyst that is moving the A&D community andthus, the office furniture dealership that offersdesign and spec services, to incorporate officeinteriors into the BIM model. Not only doesBIM allow for move management, energyaudits, and helps with LEED certifications, butspace planning rounds out the entire model.”

As BIM becomes more readily available andsoftware providers integrate their productsinto BIM and more manufacturers participateby incorporating their specs, the easier it willbe for office furniture dealers to get in on theground floor of design and the greater theopportunity to act as a consultant and not justa furniture source, to architect, designers andother key players in the supply chain.

theLastword

aliciaellisBuilding Officesfrom the Ground Up