DealersDiagnoseOpportunities in

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BKM of Texas, Steelcase Dealer, HostsSpecial All-Day Symposium for LocalHigher Education CommunityIt’s no great industry secret that higher education represents oneof the few vertical markets showing any signs of life these days.But knowing where the opportunities lie and positioning yourdealership to take full advantage of them are two very differentthings.

In Dallas, BKM of Texas has put in place a program that positionsthe dealership as a supplier in the higher education market withresources that go far beyond just having the right products at theright price.

Now in its fourth year, BKM’s annual Higher Education Symposiumoffers education planners and providers in its North Texas marketthe opportunity to spend a full day exploring emerging trends ineducation-oriented environments and technology use.

This year’s event drew some 60 attendees—including academicdeans, facility planners, faculty and members of the A&Dcommunity from 25 different educational institutions—who cameto BKM’s Dallas showroom to hear presentations on distancelearning, trends in library design and more.

Also at the event, BKM awarded special scholarships to twodeserving local community college students, further reinforcing thedealership’s ties with the local education community.

Higher education is a key market for BKM of Texas, explains vicepresident of sales and marketing Carlene Wilson and the eventplays a major role in establishing the dealership as a market expert.

“It’s not just about introducing new products,” she says. “Thesymposium spurs conversation between our people and leadersin the education community and provides an outstandingnetworking opportunity for the educators themselves to exchangeideas and learn from each other.”

And if, as happened this year, the event uncovers three newprojects that right now are just in the early planning stages but holdgreat promise for the dealership further down the road, that’s allgood, too!

Meanwhile, planning is already well underway for next year’sSymposium, with Carlene and her team already aiming for an evenbigger and better event.

NOVEMBER 2009 OFDEALER PAGE 2

newsAccentuating the Positive isMore ImportantThan Ever

One of the more thought-provoking sessions at lastmonth’s NeoCon East event in Baltimore was apanel discussion on the state of the industry thatoffered a wealth of insights and illuminatingobservations from some of the Baltimore/Washington area’s leading designers.

One comment, from Diana Horvath of Envison,seemed particularly relevant, as the industryprepares to enter the second year of a businessdownturn of truly historic dimensions.

“I would encourage every principal in this room tostart focusing on the optimism side of things,” sheurged NeoCon East attendees. “Your employeesand the clients that are still giving you work aregetting tired of the negativity. We must have a levelof gratitude for what we have and build upon that,rather than constantly focusing on what we’ve lost.”

Those words echoed consultant Bill Kuhn’sdiscussion of effective leadership in his column inour September issue earlier this year.

“Inspiring, motivating, and energizing people are ascritical to managerial success as they are toleadership,” Bill wrote.

Putting it simply, you can’t do any of that—and youcan’t expect your people to be too terriblyinterested in supporting you—if the primarydiscussion topic in staff meetings and around thewater cooler is “what we’ve lost.” And don’t thinkyour customers will react any differently to anynegativism from you.

Business is pretty dreadful right now, and we allknow that. But eventually it will get better, andmeanwhile, it’s essential to maintain a focus on thepositive and be willing, as an organization, toaggressively seek out every potential opportunity,then pursue, persuade, and convince prospectiveclients that your organization is the solution to theirspecific needs.

Admittedly, there’s a fine line between focusing onoptimism in these challenging times andabandoning any meaningful sense of reality. Butsuccessfully walking that fine line, like it or not, isprobably one of the most mission-critical tasks forjust about every dealer owner and manager today.

Simon DeGrootEditor in ChiefOFDealer

continued on page 4

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Cari Marshall, OwnerL&M Office Furniture

Peabody Office Furniture Recognized byLocal Family Business AssociationEven with today’s fierce competition, there’s still plenty of roomin the office furniture industry for a well-run, family-owned andoperated business. Case in point: Peabody Office Furniture inBoston.

It was way back in 1899 that Lester J. Peabody first opened forbusiness. Back then, the focus was typewriters and officesupplies with office furniture joining the mix until 1911.

Fast forward to today and the dealership he founded, PeabodyOffice Furniture, is still going strong and proud of its claim as“the longest standing Knoll dealer in the country.”

Last month, the Peabody team had even more reason to beproud, after being named a finalist for a Massachusetts FamilyBusiness Award, a special honor presented each year by theFamily Business Association, an independent, nonprofit whichrecognizes family businesses statewide.

Peabody’s didn’t win this year but it was named one of just fivefinalists in the “Up to 50 Employees” category out of more than200 nominations. Not too shabby, particularly in thesechallenging times!

All Makes Office Equipment, NebraskaDealer, Hosts Designer Jhane Barnes

Award-winning designer Jhane Barnes and All Makes presidentJeff Kavich at the dealership’s recent “Meet Jhane Barnes”event.

Question: What do you do to draw traffic to your showroom anddrum up some business at a time when the overall market isabout as bad as it gets?

If you’re Jeff Kavich and his team at All Makes Office EquipmentCo. in Nebraska, you reach out to one of the country’s topdesigners and bring her in for a very special event.

The designer in question was Jhane Barnes, whose workfeatures prominently in the offices and branding of such highprofile corporations as Google, Delta Air Lines and Sony.

It was also front and center at All Makes last month as its “MeetJhane Barnes” event drew some 50 buyers and influencers fromthe local A&D community to the dealership’s Omaha showroomfor a special presentation on her innovations in contract andinterior textiles, carpeting, eyewear and office furniture.

The event was co-sponsored by casegoods and seatingmanufacturer Jofco and floorcovering company Tandus, both ofwhich have partnered with Barnes on various textile treatments.“We were thrilled to have Jhane Barnes visit All Makes and areproud to have her sustainable products on display in ourshowroom,” said Kavich, All Makes’ president and CEO.

Today’s Business Products in OhioCelebrates 25th AnniversaryCongratulations go to Rick Voigt and his team at Today’sBusiness Products in Parma, OH, which this month celebratesits 25th year of service to the Northeast Ohio businesscommunity.

“Twenty five years is a major milestone for any local businesses,”said Rick, who started the company with his father, Don, in 1984and who currently serves as president.

Starting out with a leased 6,000 square foot warehouse, Today’sBusiness Products today operates from a 40,000 square footshowroom and warehouse which it acquired in 2000.

“As an independent business, we’re proud to have achieved oursuccess despite strong competition from the corporate big boxstores. Because we’re family owned, our major driver is thecustomer, not Wall Street. Our goal is to be a business partner,not just a supplier who sells you something.”

Recent years have seen the dealership hit the acquisition trailquite aggressively, adding three other independent dealersunder its umbrella since 2004.

And while the majority of the dealership’s business is in officesupplies, Rick and his team also put an emphasis on officefurniture. “We position ourselves as a mid market dealer,” he

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explained, “with an office design staff that provides a turnkeyoperation and the ability to create an office from conception toinstallation.”

Rick also credits a veteran management team for the company’songoing growth and success. He boasts that the company’s firsthire—Karen Cipalla—is still with the company and now servesas vice president of administration. Rick’s two brothers, Johnand Paul, also work with the company.

As for the future? “The next 25 years will be more fun than thefirst 25 because we’re a well-established company with a greatreputation to build on,” Rick said. “And we’re looking to do moreacquisitions.”

OEC, Louisville Haworth Dealer, Turns to Education to Maintain Key Business RelationshipsHow do you maintain business relationships with key customersand prospects in a market where people interested in buyinganything are few and far between? For a growing number ofoffice furniture dealers, the answer to that question increasinglylies in end user education.

In Louisville, for example, Haworth dealer Office EnvironmentCompany (OEC) last month held the last in a series ofeducational sessions on critical industry trends for members ofthe local A&D community.

OEC held three different sessions this year—on sustainability,managing different work styles and cultures and the changingdefinition of “the office.”

Each one was presented by subject specialists from Haworthand came with Continuing Education Units (CEUs) for designersneeding them to maintain their certification. And, says OECmarketing manager Renee Cooper, they provided a veryeffective way for the dealership to keep in contact with keybuyers and influencers.

For OEC, education helps draw local architects and designers—as well as students from the nearby University of Louisville’sdesign program—to visit the dealership’s showroom and seefirsthand some of the resources it offers.

“It’s more important than ever today to nurture our key businessrelationships, so that when the market does finally rebound, we’llbe ready to pick up where we left off,” she contends.

New Showroom for San Diego Inscape Dealer OfficePlanIt

OfficePlanIt’s new showroom is located in a former Wonder Bread factory that dates back to 1894!

It’s been a busy couple of months for the folks at OfficePlanIt inSan Diego. After recently being appointed a Premier Dealer forInscape in the Southern California market, the firm held thegrand opening earlier this month for its brand new showroom, a5,000 sq. ft. facility in downtown San Diego.

The showroom may be new but the building that houses it datesback to 1894 and was a former Wonder Bread factory!

OfficePlanIt principals Theron Williams and Jim Edmondson arehoping to make a different kind of dough in their new home and,says Jim, even though the market has been soft of late, businessis still out there and the OfficePlanIt team has been aggressivelypursuing it.

As their blog proudly notes, the dealership recently securedmajor projects from two local fast-track growth companies and,says Theron, they’re looking for more to come.

“We’re expecting to see a huge turnaround for the industry nextyear,” he predicts. “There’s a lot of pent-up demand in themarket and as a small dealership with low overhead, we’realready well positioned to make the most of it when businessdoes start to pick up.”

Office Furniture Group,Southern California Teknion Dealer,Sponsors Alzheimer’s FundraiserAlzheimer’s disease is a silent killer that affects over 5.3 millionAmericans. In Irvine, CA, Scott Lazarus and his team at Tekniondealer Office Furniture Group are going the extra mile to support

NOVEMBER 2009 OFDEALER PAGE 5

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Alzheimer’s caregivers and medicalresearchers as sponsors of Design 2Care, an annual event that brings togetherthe local A&D community among othersto raise funds for the Alzheimer’s FamilyServices Center in nearby HuntingtonBeach.

This year’s event raised over $16,000 forthe cause, as over 200 attendees tookpart in a silent auction and viewed aspecial exhibit featuring original artworkby Center patients.

Scott gives credit to Center board membersSteve Francis of local rep firm Steve Francis& Associates and Diana Murphy of RossettiArchitects in Los Angeles for hisinvolvement in the event.

“Certainly these are tough times for all ofus, but that’s probably even more reasonthan ever to get involved and give back toour communities by supporting organi-zations that need our help,” he says.

NYC Dealer Account ExecRappels for Charity

Lane Office’s Chris Mimnaugh takes an unusualapproach to checking out a local office buildingfor prospects, but it’s all for a good cause.

Chances are most of us have learned farmore than we ever wanted to about theups and downs of the office furnitureindustry over the past year or so. In NewYork City, Chris Mimnaugh, an accountexecutive with Knoll and DIRTT dealerLane Office, has a particularly uniqueperspective on it all after rappelling downa Long Island office building—all fivestories—to help raise funds in support oflocal residents with autism, mentalretardation and other special needs.

Chris, who raised $1,500 on his waydown, commented, “I’m proud to supportmy community and this is a greatopportunity for a new experience.Rappelling requires focus and takes youout of your everyday thoughts. I work withclients as they make real estatedecisions, but this is a whole differentway of looking at buildings!”

NOVEMBER 2009 OFDEALER PAGE 6

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READ THE FINE PRINT

Other companies limit their warranties through fine print. But with Concept Seating, you don’t have to worry about the fine print – there is none. Our warranty covers even usual wear and tear on our 24/7 Intensive Use Chairs. And, that’s just one of the features that make us different, better. Our 24/7 Intensive Use chairs meet or exceed GSA intensive use ergonomic standards which are ten times that of ordinary office furniture. Plus, our unique Dymetrol® suspension supports the body in tension, not compression, allowing the body’s circulation to keep flowing. That means your employees experience less fatigue and increased productivity.

NOVEMBER 2009 OFDEALER PAGE 7

continued on page 9

Herman Miller Unveils New LA Showroom Herman Miller has opened a new showroom in Los Angeles thatit says reflects the company’s commitment to “forward-looking,problem solving design and environmental stewardship.”

A former warehouse built in 1956, the new facility’s design is theresult of a joint effort between Herman Miller and architectureand design firm tvsdesign.

“There was a significant effort to complement Herman Miller’sdesign legacy throughout the showroom,” noted Steve Clem,the showroom’s lead architect and interior designer andprincipal at tvsdesign. “This was accomplished through acollection of curved walls and freestanding forms. Eamesplywood screens, for example, are not only used as spacedividers, but also as artwork. These are the types of details thatmake the space so delightful and unique.”

Sustainable elements of the LEED (CI) Platinum-pendingshowroom include a 10-year lease, which encouragesconservation of resources and reduction of waste from frequentmoves or new construction; its location within an area close topublic transportation, local businesses, and restaurants; energyefficient light fixtures and occupancy sensors throughout thespace, and MBDC, BIFMA level and Greenguard certifiedproducts and materials.

In addition, 20% of the building materials and products in theproject were manufactured within 500 miles of the site and aconstruction waste management plan ensured over 75% of allconstruction waste was recycled and diverted from landfillduring construction, among other features.

BIFMA September Numbers Show Continued Industry Stability But Little Indication ofImprovement Any Time SoonThe worst may be over but don’t go looking for much in the way of an upturn in industry sales any time soon. That was the messagethat came through loud and clear last month, when the Business and Institutional Furniture Manufacturers Association (BIFMA)released its statistics for September.

The BIFMA numbers showed signs ofcontinued industry stability—orders weredown 32% versus the same month lastyear, pretty much matching industryperformance in August and July, whichboth posted 33% declines.

Unfortunately, however, signs of tangibleimprovement have yet to materialize,according to industry analyst BuddBugatch of the Raymond James &Associates investment house.

“While economic conditions areseemingly on the mend and we wereencouraged by the third quarter’s 3.5%growth in Real GDP, the late-cycle nature of office furniture demand suggests a recovery for the industry is likely to lag the broadereconomy by at least three to four quarters,” Bugatch suggested.

Given tight credit conditions and long lead times between planning and completion of new office buildings, project-related officefurniture demand is likely to remain challenged for the foreseeable future,” he predicted.

International Headquarters:

Source: BIFMA / Global Insight

2009 BIFMA Forecast - Y/Y% Chg

-35.0%-30.0%-25.0%-20.0%-15.0%-10.0%

-5.0%0.0%5.0%

10.0%

Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09

-35.0%-30.0%-25.0%-20.0%-15.0%-10.0%-5.0%0.0%5.0%10.0%

Orders Shpmts

Orders -2.8% -6.3% -10.8% -13.1% -26.5% -29.3% -32.1%

Shpmts -2.6% -6.3% -10.4% -11.6% -19.3% -28.6% -31.0%

Feb-08 May-08 Aug-08 Nov-08 Mar-09 May-09 Aug-09

©2009 The HON Company. HON Smart now. Smarter later. is a registered trademark. Vicinity is a trademark.

Vicinity.™ So many combinations. So many uses. So little effort.Sometimes the best solution is also the simplest. With a seemingly limitless number of combinations, Vicinity adapts easily to your offi ce’s every need, from public places to private spaces. Vicinity. It’s storage that works. To begin confi guring your offi ce space, or for a free catalog or quote, visit www.vicinity.hon.com.

Go configure.

Haworth Acquires Minority Position in Tuohy Furniture

Haworth has acquired part ownership of Tuohy FurnitureCorporation, the Minnesota-based manufacturer of executivecasegoods, conference tables, seating and lounge furniture.

In a joint statement, Haworth and Tuohy said they will realizesignificant benefits from the new partnership and form a strongalliance in the marketplace.

With little overlap in the two companies’ products, Tuohy’sexecutive casegoods, conference tables, seating and loungefurniture will strengthen Haworth’s market position, thecompanies said.

Tuohy will continue to be autonomously managed by its currentmanagement team, led by Dan and Michael Tuohy, and maintainits brand positioning and company name.

Tuohy will also maintain its current distribution channels,realizing potential growth opportunities through Haworth’sdistribution network, the two companies said.

New Teknion Showrooms in Santa Monica and Boston Earn LEED Certification

Teknion Corporation’s new Santa Monica showroom recentlygained LEED (Leadership in Energy and Environmental Design)Gold certification from the U.S. Green Building Council (USGBC)in the Commercial Interiors (CI) category. In addition, thecompany’s Boston showroom has attained LEED Silver-CI.

The Santa Monica showroom was created by Vanderbyl Designof San Francisco, CA, in conjunction with architect of recordPollack Architecture, while the Boston showroom was designedby The Baker Design Group.

AIS Promotes Lazarus to Executive Vice President of Sales

Manufacturer AIS has promoted Rob Lazarus,previously senior vice president of sales, to theposition of executive vice president of sales.

In his new role, Lazarus will be responsible forimplementing sales strategies and working closely with AISsenior sales VPs, regional sales VPs, territory managers andindependent sales representatives to create marketingdistribution plans and goals for each region.

Lazarus has been with AIS for over eight years and has over 20years of industry experience at both the dealership andmanufacturing levels,

“Rob’s knowledge, passion and positive energy make him avaluable asset to the executive management team,” said AISpresident and CEO Bruce Platzman. “Over the years, Rob’shard-work, perseverance and the passion to ‘make-it-happen’have fueled AIS to strive and better ourselves as a companyoverall. His dedication to AIS and forward-thinking abilities makehim the perfect fit for this role.”

National Office Furniture Announces $10,000 ‘Gift of Inspiration’ Winner

National Office Furniture has announced the winner of its 2009Gift of Inspiration Award, a special program designed to supportscholarship funds, endowments, learning materials and otherimportant educational and developmental programs.

The recipient of this year’s $10,000 award was SouthwestMiddle School in Savannah, GA, which will use the funds to starta program to help students who have been retained to betterprepare for their transition to high school.

“At National, we believe in building stronger communities. Weknow all those involved in educating future generations put forthextraordinary efforts every day to create impactful learningexperiences,” says Don Van Winkle, National’s vice presidentand general manager. “We’re proud to know that the gift will beput towards a program that will inspire our youth not only today,but throughout their lifetime.”

Configura Hosts Second AnnualNorth American User Conference

Configura, maker of CET Designer software, recently wrappedits second annual User Conference in Las Vegas. The two-dayevent, for which OFDA was a conference sponsor, drew nearly

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Teknion Boston’s Showroom

100 CET Designer users and dealers and their respectivemanufacturers.

A variety of sessions were offered during the event, including

peer-taught sessions led by Configura CET Designer “power

users” Maureen Soules, CID, Fluid Interiors; Paul Riches,

Heritage Office Furnishings and Raza Syed, Business

Furnishings.

Los Angeles architect Joey Shimoda headlined the conference

with a keynote presentation on design trends and how

technology is bridging the communication gap between A&D

firms and dealerships.

“Changing expectations of the workforce are shaping the

future of architecture and design,” Shimoda told attendees.

“A large percentage of the population is rethinking its values.”

Also at the conference, Configura presented its 2009 Awardsfor excellence in design and specification work.

Young Office’s Karen Barton garnered the grand prize for Best

Large Project, winning a computer, two monitors and a

one-year subscription to CET Designer for her firm (Young

Office is based in Greenville, SC and is a Steelcase dealer).

In the Best Rendering category, first prize was won by

Maureen Soules, CID, Fluid Interiors, Minneapolis, (Haworth

dealer). Second prize was won by Juan Melendez, RGO Office

Products, Calgary, Alberta (Steelcase dealer). Third place went

to Alvin Hernandez, Wittigs Office Interiors, San Antonio

(Haworth dealer).

In the Best Success Story category, Pam McClelland, BOS,

Chicago (Haworth dealer), won the first prize.

Version 2.0 for Furniture Command Center Dealer Management System

Sherpa Software Development has announced the release of

version 2.0 of its Furniture Command Center (FCC) dealer

management system.

Sherpa said FCC, a web-based product launched in 2007,

was tailored specifically to meet the needs of small and

midsize contract office furniture dealerships and includes

features such as integration with existing accounting products

(instead of replacing), automatic workflow tracking, dynamic

role based privileges and more.

For more information, visit

www.furniturecommandcenter.com, e-mail

info@furniturecommandcenter.com, or call 571-482-7175.

Eggers Industries Celebrates 125th Anniversary

Congratulations to Two Rivers, WI-based Eggers Industries,

which this year is celebrating its 125th year of continuous

operations as a wood products manufacturer.

Privately held since its inception in 1884, Eggers operates

three divisions in Northeast Wisconsin, where it manufactures

architectural flush doors, true stile and rail doors, door frames,

veneered plywood panels, and custom components for

commercial projects including veneer wrapped metal and

wood components.

The company attributes its longevity and success to “The

Eggers Way,” a set of ideals, practices, and core values that

put a premium on balanced responsibilities that consider

customers, employees, shareholders and the community.

Mary Lester Streu, vice president of operations, states, “The

ability to stay true to the company values makes us special.

Some people view us as conservative; we view ourselves as

focused. We stay close to a key principle: under commit and

over perform. We do not try to do everything. We stay true to

our custom manufacturing business. We want a healthy

company, not a big company. Those are the true roots of

Eggers Industries.”

For more information, visit www.eggersindustries.com, call

920-793-1351 or e-mail bdiederichs@eggersindustries.com.

NOVEMBER 2009 OFDEALER PAGE 10

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On November 7, the U.S. House of Representatives narrowly passedH.R. 3692, its final version of comprehensive healthcare reform. Thevote was 220 to 215, with one Republican (Rep. Cao of Louisiana)voting in favor of the bill and 39 Democrats voting against it.

The National Federation of Independent Business (NFIB), which leadsa small business coalition in which OFDA participates, promptly voicedmajor concerns about the bill. In brief, the “Affordable Health Care forAmerica Act” fails to live up to its name and, in its present form, wouldgreatly harm rather than help small business.

The Coalition has challenged H.R. 3692 on numerous grounds, but thekey shortcomings of the bill include:

4 A mandate that businesses—including many smallbusinesses—offer a yet-to-be determined minimum level ofhealthcare insurance to both full-time and part-time employees.

4 A requirement that all employers now offering health insurancemust reach the new minimum standards for coverage within a5-year period—violating the promise that “you can keep what youhave.”

4 Play or Pay provisions requiring employers with an annual payrollof $500,000 or more to pay a payroll tax of up to 8% if they do notoffer a “qualified” health insurance plan.

4 To avoid the payroll tax, employers must offer “qualified” plans toboth employees and their families and contribute at least 72.5% ofthe total premiums for employee plans and 65% of premiums forfamily plans.

4 If a company’s employees decline coverage from their employerand obtain coverage from one of the proposed state insuranceexchanges, the employer must pay up to an 8% payroll tax for thoseemployees.

4 The required “public option,” which many insurance experts believewill steadily crowd out private plans, shifting higher medical coststoward employers who offer those plans.

4 Restrictions on the use of funds from existing Health SavingsAccounts (HAS), Medical Savings Accounts (MSA) and HealthReimbursement Accounts (HRA) to purchase over-the-counterhealth products, other than insulin, and limits on contributions toFlexible Spending Accounts (FSA).

4 Limitations on small business tax credits to companies with 25 orfewer employees and a phase-out of the credits for eligible firms if

their average annual compensation/employee is more than$20,000.

4 Creation of a national, unelected insurance commissioner withbroad authority to institute rules and regulations, including reportingand other requirements that will increase compliance costs,particularly for small businesses.

4 Creation of new “rules of construction” that would provide greenlights for trial lawyers seeking to file lawsuits against smallemployers.

Action on the bill now shifts to the U.S. Senate, where prospects forpassage of healthcare reform legislation are still highly uncertain.

Senate Majority Leader Harry Reid (D-NV) has merged two very distinctcommittee bills and is still waiting for the new bill to be “scored” bythe Congressional Budget Office on its cost.

Apart from the uncertain cost burden of the Senate bill, argumentsregarding insurance coverage of non-documented workers and federalfunding of abortion are expected to be even more problematic in theSenate.

In addition, Republicans are planning for a possible (and credible)filibuster effort to prevent a floor vote on the bill.

On a more positive note, there are serious initiatives underway in theSenate to develop floor amendments to reinstate previously proposedreforms that would help curb the growth of insurance premiums forsmall businesses and reduce the disparity in premium cost burdenscarried by small vs. large firms.

The office interiors industry needs to actively weigh in on thisforthcoming Senate debate, which can still be influenced if the voiceof small business for specific reform alternatives is focused andpersistent over the next several weeks.

OFDA members can anticipate calls to action in the next few weeksas specific alternative reform packages are more fully assembled bytheir Senate supporters.

As it is often said on Capitol Hill, “The Senate is not the House,” anexpression that highlights the reality that measures approved in theHouse often face much larger challenges in the Senate. It is time forall small businesses to call and e-mail their senators and demand thattheir economic interests and concerns be addressed. Contact ChrisBates at cbates@ofdanet.org for further information on this criticalnational issue that affects all employers and their employees.

NOVEMBER 2009 OFDEALER PAGE 11

Health Care Reform LegislationFaces Even Greater Hurdles inU.S. Senate

S A V E T H E D A T E

OFDA 2010C O N F E R E N C E

October 9-12

Hyatt Regency Coconut Point

Resort and SpaBonita Springs

FLORIDA

continued on page 14

What if you went to a doctor and were told you were dying. What would you do? Would you just accept it and go home or would

you ask for a second opinion? Would you seek out new treatments, alternative therapies, specialists in the field? I bet you would.

Now what if someone told you that your dealership is dying? The economy sucks, sales are down, the traditional avenues that

served your dealership so well in the past are gone and aren’t coming back anytime soon and your company is going to die.

What would you do?

While this may all sound a little extreme here, the point is this: You wouldn’t settle on a death sentence for

yourself because you know there are a lot of options that may stave off death or at the least

extend your life, so why would you allow your dealership to suffer without fully

examining possible options that could breathe new life into your

company?

At a time when commercial construction is down, retail

is down, small business growth is down and the

economy is at best only beginning to show signs of what

could be a small recovery, healthcare is one of very few

brightspots and the opportunities it offers for dealers are

only going to grow.

Life expectancy rates are increasing, the huge generation

of baby boomers is moving into their golden years and the

expected passage of healthcare reform legislation of some

kind, no matter what its final make up, promises to

undoubtedly bring millions more people into doctors’

offices, clinics and medical facilities.

Much to the dismay of healthcare furnishings manufacturers

who believe the healthcare market represents a viable choice

for dealers, many have been noticeably reluctant to head

towards hospitals and medical offices in their markets.

Doctor’s Notes:

Patient: Office Furniture Dealer

Presenting Complaint: Stunted Growth

Symptoms: Sagging economy, lack of

foresight, fear of change, product deficiency

Diagnosis: Absence of healthcare furnishings

Treatment: Investment in healthcare

growth. Educating dedicated salespeople on

products and terminology. Eventual

showroom allocation.Referral: Manufacturers carrying a range

of furnishings and products for reception

areas, patient rooms, examination rooms,

and medical employee areas, to name a few.

DealersDiagnoseOpportunities in

HealthcareBy Alicia Ellis

NOVEMBER 2009 OFDEALER PAGE 13

According to Marty Cagle, president of Intensa, a

10-year old manufacturer of medical equipment,

modular casegoods and over the past year and a half,

a full line of examination tables, “It’s time for dealers

to break the old healthcare buying habits.”

Cagle explained that many doctors’ offices have

become used to buying their equipment from medical

equipment manufacturers that do not sell to office

furniture dealers. “These medical equipment

salespeople took advantage of their relationship

selling gloves, to sell rolling chairs, exam tables and

equipment,” he said noting that Intensa sells

exclusively to office furniture dealers with a line of

competitively priced, high quality options that will

allow dealers to become a complete healthcare

provider.

“For every dollar up front, there’s a dollar in the back

just waiting for the dealer with the foresight and skill

to go after it,” he maintains.

Ed Miles, healthcare director for GLOBALcare, the

healthcare division of Global – The Total Office,

couldn’t agree more. “It’s only logical for dealers to

get ‘off the carpet’ and expand into waiting areas,

lounges, patient rooms, specialty clinics, ambulatory

care facilities, hospice care and assisted living

facilities,” said Miles.

GLOBALcare Patient Room

Tom Carrigan, director of marketing for High Point

Furniture Industries (HPFI), believes office furniture

dealers are in a great position to move into the

healthcare market because it’s a natural extension of

their knowledge. Historically, a manufacturer of wood

continued on page 15

HEALTHCARE STATS: n In 2006, life expectancy at birth for the total population reached

a record high of 78.1 years, up from 75.4 years in 1990.

n In 2006, there were about 1.1 billion visits tophysicians’ offices, hospital outpatient departments andhospital emergency departments. There were 902 millionvisits to physicians’ offices, 102 million visits to hospitaloutpatient departments, and 119 million visitsto hospital emergency departments.

n In 2006, 43% of doctor visits were to specialty carephysicians, up from 34% in 1980.

n 87.1% of healthcare establishments are offices ofphysicians, dentists, or other healthpractitioners, with another 11.5% beingresidential and nursing care facilities.

n Healthcare will generate 3 million new wage and salaryjobs between 2006 and 2016, more than any other industry.

n The number of people in older age groups, with muchgreater than average healthcare needs, will growfaster than the total population between 2006 and 2016;as a result, the demand for healthcare will increase.

n From 1950 to 2006, the total resident population of theUnited States increased from 151 to 299 million persons,representing an average annual growth rate of 1.2%.During the same period, the population 65–74 years of agegrew, on average, 1.5% per year, increasing from 8 to 19million persons. The population 75 years ofage and over grew the fastest (on average,2.8% per year), increasing from 4 to 18 million persons.

n By 2029, all of the baby boomers will be age 65 years andover. As a result, the population age 65–74 years willincrease from 6% to 10% of the totalpopulation. As the baby boomers age, thepopulation 75 years of age and over will risefrom 6% in 2006 to 9% of the population by 2030 andcontinue to grow to reach 12% in 2050. By 2040, thepopulation age 75 years and over will exceed the population65–74 years of age.

n Findings from the National Health and NutritionExamination Survey show that the proportion of adults who areobese has more than doubled from 15% in 1971–1974to 34% in 2003–2006 for adults 20–74 years(age-adjusted).

n The proportion of young adults age 18-29 years who areobese has more than tripled from 8% in 1971–1974 to 24%in 2005–2006.

n According to a 2008 study, 52% of respondingfacilities have seen an increase in admissions of severelyobese patients since 2006. In addition, 28% of respondingfacilities invested in physical renovations to accommodateobese patients with the median cost of renovationestimated at $100,000.

SOURCES: Bureau of Labor Statistics, U.S. Department of Labor, Career Guideto Industries, 2008-09 edition, and the National Center for Health Statistics Health, UnitedStates, 2008

NOVEMBER 2009 OFDEALER PAGE 14

Cover } continued from page 13

office casegoods and upholstered seating for a

wide range of commercial markets, HPFI has

focused a lot of attention of late on bariatric

furnishings, making a name for itself with its

weight-rated furniture that is designed to

be sensitive to the feeling of patients

and their families.

“Bariatrics is a great business and

you don’t have to be a large dealer

to get involved,” said Carrigan, who

points out more than 87% of

healthcare establishments are offices

and surgical centers and that half of all non-hospital

establishments employ fewer than five workers.

“The population is aging and obesity rates are climbing and with

a little training on bariatric ratings, cleanability and germ fighting

capabilities, dealers can take advantage of these trends to move

from the reception area and into patient rooms.”

Whether working with hospitals, doctors’ offices, clinics,

bariatric centers or assisted living facilities, there are plenty of

dealers out there who, to varying degrees, are growing their

healthcare business and, in most cases, are helping to alleviate

and in many cases obliterate company losses due to the current

economic burden.

In order to find out more about the healthcare furnishings

industry and the opportunities it offers dealers, OFDealer talked

to more than 20 dealers and manufacturers, both large and

small, around the country and asked how their healthcare

business was doing, how they were marketing their products

and where they saw their company a few years down the road.

“We have found that many of our healthcare customers’

priorities are similar to those of our standard contract customers,

in terms of value for their investment, quality of fixtures and

furniture, and lead times,” said Susan Borrelli-Gerace, CAD

designer for Milton Terry Associates, Inc. in Oak Ridge, NJ.

“These are coupled with the addition of some specialized

needs—such as anti-microbial finishes and specialized storage

items to accommodate sinks and other fixtures to round out

our offerings.”

Growing revenue in healthcare from two percent three years ago

to five percent this year, Milton Terry is currently experiencing

an increase in healthcare opportunities, and is in the process of

putting together a campaign catering to that industry.

“One of the biggest challenges involved in serving the healthcare

market is knowing and anticipating the specific concerns and

needs of that industry with regards to specialized storage or

work needs for areas other than "traditional" commercial

furniture products that would suit the doctor's offices, waiting

rooms and file rooms,” said Borrelli-Gerace.

“Many people in the healthcare field don't often think to go to

their office furniture dealer first for assistance with areas such

as exam rooms, labs, and assisted living suites. Our job has

been to educate ourselves on their specialized needs and then

find viable options to fill those needs and lastly, to educate

potential clients on our capabilities to

effectively provide those specialized

products and services to them.”

“After the initial meeting and my

research regarding a potential client, I

am armed with a design board which

effectively tells its story to my client

and enables them to comfortably place

their project into my hands only,” said

Lucia M. Hardy, president of Office

Installation Services, Inc. in

Indianapolis, IN. “The non-institutional

looking healthcare fabric offerings have

Cover } continued from page 14

continued on page 16 Primacare Collection for GLOBALcare

NOVEMBER 2009 OFDEALER PAGE 15

HPFI

made my design boards more exciting and more appealing to

my healthcare clients.”

Having increased healthcare revenue over the past three years

by five percent with healthcare products from Logiflex and

La-Z-Boy, Hardy anticipates the creation of a dedicated

healthcare showroom over the next year and expects to

generate up to 20% of total business over the next three years

from the healthcare industry.”

“I find it most effective to deal directly with the ‘check writers’

or owners of the small to mid-size healthcare facilities,” said

Hardy of her marketing plan

“All of the facility managers of the large entities (hospitals,

surgery centers, etc.) are constantly bombarded either directly

by manufacturers or sales representatives. However, the dental

offices, dental spas, cosmetic surgeons and the like are often

ignored and greatly appreciate the attention to detail and

hands-on approach I provide, not only for the furniture and

lounge purchases, but for the overall design as well. In my

opinion, the bottom line for the design and purchase is function

and fabrics!”

Working with National Office and Steelcase’s Nurture line among

others, Ed O'Connor, director of sales for DeKalb Office

Environments in Alpharetta, GA, has seen the company increase

healthcare revenue from eight percent three years ago to more

than 30% today. With a dedicated sales rep and showroom for

healthcare furnishings, O’Connor anticipates revenues from

healthcare will continue to increase to around 40% by 2012.

O’Connor credits DeKalb’s 22% increase in revenue over the

past two years to its dedicated team of sales professionals who

understand the market and

who have the ability to bring

new solutions to the users of

healthcare-related space.

“The most important

resources are knowledge

about the market and

understanding of the

challenges that the users of

products face,” said

O’Connor. “The healthcare

market has traditionally

been looked at as a highly

price-sensitive market that

typically pushed back from

new and different solutions.

Healthcare providers are just

like everyone else

today—they’re constantly

being challenged to re-think

the way healthcare is

delivered. As a resource

provider, we are there to

explore options with them and show the customer through

knowledge that we can impact their clinical work process.”

According to O’Connor, most healthcare customers are

extremely service-oriented, with very specific time requirements

from start to finish on projects—especially in clinical spaces.

“The deeper into clinical spaces that we get, the more intense

the service requirement becomes,” he continued. “Order sizes

are from one chair to many workstations and you must deliver

every order flawlessly and to the satisfaction of the individual

user.”

While moving “off carpet” is something dealers should consider,

going from doctor’s offices and smaller clinics into the hospital

NOVEMBER 2009 OFDEALER PAGE 16

Cover } continued from page 15

WaveWorks Casegoods from National Office Furniture

continued on page 17

setting involves a much larger dedication

to the industry.

For Kim Augspurger, president of Saxton

Inc., a Des Moines, IA dealer selling to

hospitals has been an education. A dealer

of Nemschoff, Carolina, Legacy, Neocase

and Patrician products, 70% of Saxton’s

revenue is generated through a

dedication to healthcare.

“There are a lot of entry points into a

hospital: facilities, purchasing, nursing

directors, administration, physicians, and

maintenance,” said Augspurger. “These

positions have various levels of authority

and many decisions are made via a

committee so you have a lot of people to

sell to and to serve.”

“The language is different from the

general office industry and if you are not

familiar with codes, regulations, specific

issues, and specialty products that are

unique to healthcare, it will show quickly,”

she warns. “As you meet with the

customer to determine how you could

assist them with their needs, you must

understand what questions to ask. This

requires knowledge about the products

you represent and the issues your client

faces. It's your role to bridge that gap.”

Saxton takes a business to business

approach to marketing, calling on key

decision makers and leveraging their

experience and knowledge. They also

host learning opportunities and attend

trade shows that help them connect to

the market.

“People in the healthcare industry know

each other and they talk to each other, so

your reputation is critical,” said

Augspurger. “The healthcare

customer's priorities begin with patient

care. While there is a constant push on

the budget, the reality is it's more

important to make the right decision that

leads to better care. Becoming

knowledgeable and staying

knowledgeable about not only products

but care issues is key.”

While knowledge can be taught,

Augspurger’s advice for dealers who

haven't historically focused on

healthcare, is to hire someone who is

knowledgeable and bring that expertise

in-house.

That’s exactly what One Workplace in

Milpitas, CA did when they consulted with

and eventually hired Cliff Bass. A large

Steelcase dealer in the Bay area, One

Workplace employs over 300 people in

three offices but was only generating nine

percent of revenues from healthcare sales

three years ago.

An expert in healthcare, Bass was

instrumental in the creation of Synergy 4

Health, a Nurture dealer

and the standalone

healthcare division of One

Workplace. Over the past

year and a half Synergy 4

Health has embraced

healthcare with a 4,500 sq.

ft. healthcare showroom that it operates

jointly with Nurture and five salespeople

dedicated to selling healthcare.

“One Workplace was lucky in that they

had serviced three area hospital systems

for more than 10 years before creating

Synergy,” said Bass. “With the solid back

end support of One Workplace, we were

able to bring in a combination of experi-

enced and exceptional healthcare people

NOVEMBER 2009 OFDEALER PAGE 17

Cover } continued from page 16

continued on page 18

HermanMiller | Co/Struc System

and train a couple of furniture salespeople who were ready and

willing to dedicate themselves to healthcare and begin to create a

great team.”

With 90 hospitals in the Northern California area, Synergy has

worked tirelessly to build a level of trust with decision makers,

hosting A&D and end user events focused around the showroom

and sharing the research created by Nurture and other

manufacturers, all the while learning about their individual needs.

“If someone doesn’t know about hospitals, they won’t know where

to start,” said Bass. “Can you be on every floor and in every

room in a hospital? That’s hard to accomplish and while some

dealers see hospitals as the silver bullet, hospital margins

aren’t what they used to be and the larger projects could have

extremely long lead times,” he cautioned.

“If I was a smaller dealer, I would want to find a niche,” Bass

continued. “You can’t be everything to everybody so narrow

it down, find where your strengths lie, surround yourself with

knowledgeable people and get out there.”

Just like every patient, every dealer, of course, is different. And Bass’s

prescription for success may not work for all. But given the size of

the healthcare market and its relative health and potential compared

to just about any other segment out there, it’s fair to say that any

dealer who isn’t looking seriously at establishing some kind of specific

healthcare market focus is missing what could well be an opportunity

that could well be golden today and even more attractive tomorrow.

Are you ready to get better?

NOVEMBER 2009 OFDEALER PAGE 18

Synergy 4Health / Nurture Showroom | Milpitas, CA

Cover } continued from page 17

NOVEMBER 2009 OFDEALER PAGE 19

More than 250 exhibitors packed the expo floor with thousands of products and despite predictably lower attendance than inprior years, the aisles were still crowded as architects, interior designers, facility managers, government specifiers, dealers andstudents came eager to check out the latest product innovations.

In addition to commercial furnishings and seating, there were plenty of exhibitors showcasing floor coverings, hospitality andhealthcare furniture, artwork, lighting, stone/tile, technology products, wall coverings and textiles.

Standouts among the products include:Herman Miller’s new Energy Manager, a proprietary device thatsenses occupancy and controls power in the company's systemsfurniture to save energy and lower costs. It controls two of the fourcircuits of power in a cluster of workstations. When a person sitsdown to work, an occupancy sensor detects their presence andturns on the devices in the cluster plugged into those twocircuits—task lights, printers, monitors, or chargers. When thecluster is unoccupied, the devices automatically turn off.

Kimball Office | interstuhl's Mitos office chair with "transmotion"mechanism. As the sitter reclines, the entire seat moves on anarc-shaped curve to the rear and downward, embracing the back.A “relax” lever reduces the spring strength in the backrest, so thatthe sitter can lie back deeper and longer with little effort. In addition,the headrest moves forward when the sitter leans back, relievingshoulder and neck tension in even the most reclined position. Thearmrests pivot 180 degrees, cushioning the upper arms and takingpressure off the upper body. The Mitos Mobile is a versatile piecethat transforms from a footrest into a laptop stand, lectern, mobileworkstation or visitor’s chair.

continued on page 20

TradeshowWrapup

Business Abounds at NeoCon East

The current economic climate did little to dampen the mood at this year's NeoConEast show, the mid-Atlantic region’s premier design exposition for commercialinteriors with a focus on the federal government.

Held October 29-30 at the Baltimore Convention Center, NeoCon East offered avariety of seminars, product and service displays and networking opportunities tomore than 8,000 industry professionals who work in some capacity with city, county,state and federal buildings.

Designed from the ground up, Views from CenterCore incorporates architectural and functional design elements to createan individual work space that is private yet still connected to the broader open floor plan environment. Views’ work surfaces,storage units, panels, modesties and screens flow smoothly from one to another without unnecessary breaks or disruptions.

NOVEMBER 2009 OFDEALER PAGE 20

Wrapup } continued from page 19

Aurora’s Times-2Elite secure storagesystem rotates forfast access fromeither side, andgives double thedepth ofconventional lateralfiles. Available in 29colors andcustomizabledoors, tops andend-panels, theTimes-2 Elite offersa variety ofshelving optionsincluding rolloutfiling drawers,accessory drawers,and even awardrobe kit.

C + P MöbelsystemeResisto locker

solutions feature anelectronic lockingsystem operated

using transponder orfingerprint technology.Made of steel, Resisto

lockers offer twocompartment depths,

special doors made of1.5 mm-thick steel,and a curved front

door mounted onpiano hinges.

National Office Furniture previewedeCoupled wireless technology at NeoConEast. This intelligent wireless powercharges cell phones, laptops and otherenabled devices through electromagneticinduction without requiring direct contactbetween device and power source andeliminating the need for cords andadapters. National is in development ofseamlessly integrating this safe andefficient technology into its seating tabletarms and tables, retaining the clean linesof these products while offering theconvenience of advanced technology.

continued on page 21

NeoCon East is known for its heavy focus on education andthis year’s event was no exception.

More than 40 CEU-accredited seminars covering a broadrange of important topics were offered, organized aroundtracks such as facilities management; facilities constructionand renovation; green design; government servicesadministration; health care; health, safety and welfare;hospitality; institutional; office design; professionaldevelopment; residential, lighting and the newly creatededucational track, career development, designed specificallyfor those attendees seeking new job opportunities or securingthe current position they have.

Of particular interest to dealers were classes on Furnishing theFuture: Leaner and Greener Workplaces, Saving Time andMoney by Demystifying the Relationship Between FurnitureRepresentatives, Dealers and Designers, The Green Future ofHospitality, and Next Generation Offices.

NeoCon East hosted an impressive line-up of keynotespeakers including Duff Goldman, chef and baker turnedcelebrity with the hit reality show “Ace of Cakes” on the FoodNetwork. Goldman spoke about looking outside of the box toovercome seemingly difficult tasks and the importance ofteamwork in design, whether it be a cake or a space.

A keynote panel discussion moderated by Kay Sargent,principal at IA Interior Architects, Washington D.C., featuredrepresentatives from a variety of government agencies whocame together to discuss the stimulus bill and howgovernment agencies will reap the benefits but need to beprepared for changes on the horizon.

In addition, the show featured its annual State of the Designprofessional discussion with principals of leading firmsexploring where we are as professionals, what challenges andopportunities we are facing and what lies ahead.

Topping off a great show were several events designed toencourage networking and creativity in design. Winding downafter the first day’s success, booth parties were hosted bymany exhibitors, but the biggest networking event was PechaKucha Night.

If you weren’t able to make it to NeoCon East 2009, there’salways next year, as NeoCon East returns again to Baltimore,September 29-30, 2010. For more information, visitwww.neoconeast.com.

Crypton Super Fabrics and Signature Carpet introducedSignature Crypton Carpet with an advanced, chemicalenhancement that changes the actual process by whichcarpeting is manufactured. Signature Crypton Carpet, with upto 46 percent recycled content, blocks fibers from stains,odors, mold and mildew. An ionic barrier allows the carpet towithstand the wear and frictional forces that often damageexisting carpets. No special cleaners are needed and thecarpet can withstand hot water extraction commercialcleaning without compromising performance. And, the carpetwill also offer a 9-foot corridor width, reducing installationwaste by more than 25 percent.

Wrapup } continued from page 20

NOVEMBER 2009 OFDEALER PAGE 21

Started in 2001 in Richmond, Virginia,

CenterStage was a $70 million restoration and

construction project that sought not only to

completely restore a 1928 Loews Theater but

also to expand the complex to include two

smaller venues, office space, dressing rooms,

lounges, classrooms, galleries and reception

areas.

With a set opening date of September 11, 2009,

the project was designed and the majority of the

spaces specified by Boston-based Wilson Butler

Architects, who specialize in theater and

restoration projects. As one of only three original

Loews theaters left in the United States, it was

important to restore the theater to its original

opulence while incorporating modern features.

When it came to furnishing the project, SMG, a

Philadelphia-based venue management

company that oversees the day to day operations

of Richmond CenterStage, wanted to make sure

that they utilized local dealers.

After an extensive bid process, Smarter Interiors,

a Richmond-based HNI dealer, was awarded a

$550,000 contract to supply and install furniture

for the performance theater, production support

continued on page 23

PR JECTPROFILESmarter

InteriorsA Flawless Performance

By Alicia Ellis

NOVEMBER 2009 OFDEALER PAGE 22

spaces, reception areas, ticket booth, break areas, private

offices, open offices and educational classrooms.

“Our lead designer, Susan O’Kelly was instrumental in helping

us win the bid,” said Greg Campbell, one of Smarter Interior’s

principals. “She really brought the project to life and was able

to match the furniture to the period and successfully blend the

old with the new.”

According to Campbell, Smarter Interiors needed to furnish

the donors’ lounge, two conference rooms, one outdoor area,

13 private offices, 29 workstations, eight classrooms, nine

lobby areas, nine dressing rooms and three backstage areas.

The bid was awarded in April with setup and install scheduled

for the third week in August.

“We utilized a variety of products with Allsteel’s Terrace and

Gunlocke workstations leading the way,” said Campbell.

“Office spaces are modular and can be changed as the need

arises or added onto if the staff grows. And, the open office

workstations were designed for collaboration, with an

unobstructed view to the outside.”

Smarter Interiors also planned to utilize David Edward bar

stools in the donor’s lounge and orchestra pit, American

Seating furniture in the classrooms, HBF sofas and textiles,

along with Marquis Seating lounge furniture.

“The only problem we ran into was with a $12,000 custom

upholstered sofa from New Zealand but after a change in

manufacturers, we were able to achieve the look the client

wanted at a major cost savings for them,” explained

Campbell. “The orders were placed in mid-May and plans for

setup began.”

With setup and installation scheduled for the third week of

August and a open date set in stone, Smarter Interiors found

themselves in a scheduling nightmare, with different trades

people trying to work around each other to finish painting,

installations, flooring, acoustics issues and stage work.

“SMG really worked hard to schedule everything from delivery

trucks to painters and finishers,” said Campbell. “In the

theater, sound checks were going on as workers on scaffolds

painted above them to make every detail just perfect for the

opening.”

Smarter Interiors was able to deliver, setup and install

everything within four working days. The opening went on as

scheduled, with a private opening on September 11 and first

public event on September 12 of this year.

Carpenter Theater has been returned to its original glory and

the two smaller venues, Rhythm Hall and the Libby Gottwald

Community Playhouse, will host a variety of performances.

Four groups, the Virginia Opera, the Richmond Symphony, the

Richmond Shakespeare organization and Richmond Ballet will

host regular series at the complex and five more resident

companies, including a jazz ensemble, an African dance

troupe and two children's theaters, will occasionally perform.

“It’s wonderful to see the completed project,” said Campbell

who has watched the construction and refurbishing progress

for the past eight years. “It’s been a long time in the making

but well worth it and Smarter Interiors is thrilled to share in

what is and will be the centerpiece of Richmond’s cultural arts

scene for many years to come.”

NOVEMBER 2009 OFDEALER PAGE 23

Project Profile } continued from page 22

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Industry News & EventsAssociation NewsGovernment AdvocacyProduct IntroductionsBusiness Basics

As I discussed in my September column, dealersmust develop their workforce, blending bothleadership and management at all levels in theorganization. Dealerships are becoming morecomplex and the challenges are increasing inevery position in your organization. Today’seconomic and industry decline has added furtherdemands on leaders and managers throughoutyour business.

The key to performance is behavior—knowingwhat do to and how to act as a particularsituation arises, knowing when to lead and whento manage. This behavior must be assumed andapplied by everyone in the company.

Several dealer principals have told me that theirmost effective competitive weapon is their abilityto develop and grow leaders.

Exceptional performance can be a direct resultof developing and growing leaders at all levelswithin your company.

Being an effective leader-manager requirestraining and development to gain a betterknowledge and understanding of your companyand the culture you espouse, and what it takesto be a leader and a manager.

Consider the following approaches in developingleader-managers throughout your organization:

Create an appropriate

learning environment

I continue to assert that a positive, healthy culture isimportant when trying to provide the challenges andsatisfaction that today’s workforce is seeking. Peoplewill display their potential leadership and managerialtalents only when they are motivated, challenged,empowered and committed.

Creating a strong culture that embodies theconceptual underpinnings of a learning organizationis key to development. Learning must be an ongoingprocess that includes education, training, and real-lifeexposure to the variety of situations in yourdealership.

Coach, develop, and

stretch your staff

Coaching focuses on personal development andfeedback, combining education with real-life expo-sure. Train your people so they will know when tolead and when to manage.

Also teach them how to practice new behaviors inboth leadership and managerial situations. Leader-ship training is ongoing; it never stops.

Stretch your workforce and give your staff challengingassignments, set high expectations and coach themto meet those challenges and expectations.

NOVEMBER 2009 OFDEALER PAGE 24

continued on page 25

Bill Kuhn, principal ofWilliam E. Kuhn &Associates, is a notedindustry consultant, writer,and speaker with over 35years of industryexperience. He consultswith dealer principals andtheir management teamsin areas of strategicplanning, leadership andorganizationaldevelopment, marketing,financial management,valuation and merger/ acquisition. For moreinformation, contact Bill byphone 303-322-8233, fax303-331-9032, or e-mail:BillKuhn1@cs.com.

LeadersBy Bill Kuhn

DevelopingThroughout Your Organization

MotivateChallengeEmpowerCommit

Evolving leaders should be asked introspective questions: Whatturns a manager into a leader? Do you have the ability to assumeyour boss’s position? Why should anyone be led by you?

Your staff must be given information, guidance, and support inhandling challenging situations. But likewise, they must beempowered—and that means you and your company must bewilling to accept a level of risk.

Build teams

Very few leaders possess all of the skills to be great operatorsand marketers or sales leaders—the skills needed to provide adistinctive mix of value at a profit. There are too many challengestoday to go it alone. It takes a team of leaders, managers, andstaff, all of whom collectively possess the necessary skills.

Properly constructed, teams can be highly successful inidentifying problems and opportunities, and in providinginnovative approaches to enhancing productivity, profitability,and customer satisfaction.

Effective teams also provide a learning experience, as a teamtackles problem-solving, deals with interpersonal relationshipsand draws upon both leadership and managerial skills.

Take on additional responsibilities

Another approach to developing your workforce to assumeleader-manager roles is to have your people take on additionalresponsibilities, perhaps even dropping some functions.

The president of a highly successful client I’ve worked withconstantly had their talented people switch jobs. For example,one person moved from the head of HR to IT, and then tomarketing.

The president’s philosophy should stand as a beacon for whatevery manager who aspires to greatness should believe: “I wantto make every direct report highly marketable, so they have sucha resume of achievements that they can always move on to aneven better job if they choose to leave.” And an interesting sidenote: There was virtually no management turnover in thatorganization.

It is estimated that people entering the workforce today willchange jobs—even careers—five to seven times in theirlifetimes. Why not have some of those five to seven changesoccur right within your own company?

Tie in succession management

Managerial and leadership development have a directcorrelation to succession planning. Succession planningrequires an understanding of where your talent lies, and

determining then who has or may have the leadership andmanagerial potential to get your dealership where you want it tobe. And when succession planning is tied to a successionmanagement program, it can create a company-wide learningenvironment for the development of leader-managers.

Reward

Those who lead—and will lead—want rewards, both financialand non-financial. In talking with potential future leaders withincompanies, I find they are motivated because they arecommitted to constantly learning more about leadership andmanagement, but, more importantly, because they know theywill have an important future stake in their company.

Leadership at all levels can be developed and you can make ithappen. Develop your entire staff to be leaders andmanagers—of one another and of your customers. It willimprove your performance, enhance your culture, motivate yourworkforce and be a critical step in planning for your future.

NOVEMBER 2009 OFDEALER PAGE 25

Leaders | KUHN } continued from page 24

Healthcare, in most cities, is moving ahead with building projectsand hospitals, clinics and other major players are still acquiringfurniture medical products, and other things for their projects.

Projects have slowed, but they have not ceased to exist like inthe commercial business sector. Certainly, if you ask a dealerwho “really” is in healthcare today, they usually will tell you, “It’snot bad out there, better than our office business today.”

The point to be made in this commentary is that the officefurniture dealers who repeatedly say they want to be inhealthcare or claim they already are in that market are for themost part very far off the mark. There is little understanding ofthe “healthcare sector” even though they may have a goodunderstanding of the transactional business that needs to occurto sell a piece of furniture or “supply” a project with furniture.

Frankly speaking, most of the manufacturers who make furniturespecifically for healthcare are at a loss when they are pushed toexplain certain aspects of healthcare that could really enhancetheir business and relationships or better yet, train their salesteams and the dealers’ sales teams on healthcare selling. Theylack knowledge.

One furniture manufacturer in West Michigan has sometremendous product alliances or owned companies with veryhigh quality products that are part of the office environment thattransfer nicely into healthcare.

But this manufacturer has had a very difficult time selling thesewonderful products into healthcare settings. Is it because theproducts are too expensive? Or is it due to a lack ofunderstanding by distribution and their sales teams?

Another West Michigan company who undoubtedly had the bestopportunity of entering healthcare in the past 30 years hasstruggled terribly.

Why would a manufacturer that offers high quality furniture,seating, medical carts, healthcare storage solutions, nursesstations, ancillary healthcare products, healthcare architects,and healthcare dealers miss the mark of success in healthcare?

How can a furniture dealer, who supposedly transformed itselfinto a “healthcare dealer” with one of the “big boy manu-facturers,” not find success at every turn of the road inhealthcare?

After all, the customer, the hospital, is doing a building projectand they need everything a dealer can offer—from medical cartsand Rx carts and medical storage solutions to white boards,lecterns, materials management solutions, seating, sofas, nursestations, work stations and executive offices. You get the pictureon the potential of this account and we have not even discussedthe medical office buildings yet!

It must be frustrating for the “big boys” to offer all these productsolutions and have so little success in their wide and mostadvantageous product lines! They do sell their fair share offurniture but again, they miss out on all the higher marginproduct areas. And for what reason?

Bringing a total solution to the healthcare provider was aneffective way to sell more “things” or products into healthcare.Selecting healthcare manufacturers who made productspecifically for healthcare like exam tables, stools, exam lights,every type of cart imaginable, and too many more to list,represented a sure way to expand the dealers’ business andfairly quickly add revenues.

After all, even the healthcare customer wants to reduce suppliersand get more products from fewer suppliers. Why wouldn’t anintegrated solution work for the healthcare dealer?

Group Purchasing (GPO) contracts DO NOT rule the furnituremanufacturer/dealer world as everyone believes. This can be

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proven with a few simple questions to the dealers ormanufacturers themselves.

For the large furniture manufacturers to insist on negotiatingcontracts with GPOs that reduce margins to a level that dealersare forced to make money on services is not wise.

The only winner in this situation is the manufacturer and that isnot always the case. Even the customer loses! Why? Becausedealers cannot service the facility post-sale on the furnituremargin, so they contract for after sales service, raising the priceto the end user.

With a long standing career in healthcare, my goal was totransfer the knowledge I gained from 30 years in real healthcareproduct selling and marketing, help furniture dealers becomereal healthcare dealers and give them access and education onadditional product areas that are medical in nature.

For example, if you are supplying a hospital with nurse stations,patient room seating and more, can’t you also provide the facilityhampers, pharmacy carts, nursing carts, exam tables, stools,lights, etc.? You would think so!

Why is it so difficult for dealers to implement the concept ofproviding “other products?” I am still convinced that the basicconcept of an integrated healthcare dealership is alive andneeded, but there are reasons why it fails in a dealership moreoften than it succeeds. This includes:

Lack of healthcare knowledge. This is defined as reallyunderstanding the healthcare market and the needs of yourcustomer and how your solutions benefit them in the big picture.Few manufacturers and dealers communicate or understand theinner workings of facilities and even more important, howhealthcare really works in its totality, not just in the microcosmof the institution you are attempting to sell to.

It is nearly impossible to get furniture sales people to sellanything beyond furniture. Whiteboards become a stretch! Themarket for Electronic Medical Records (EMR) is exploding. Cartsor “computers on wheels” were developed for furniture dealersto sell for EMR situations and they failed miserably. Why? Lackof knowledge by the manufacturers and the dealers of how topenetrate the healthcare sector.

Real sales management in dealers is poor overall. “They areon commission, if they don’t sell they don’t succeed” seems tobe the attitude in many dealers. In healthcare dealerships, it iseven worse on the healthcare side.

Furniture manufacturers have been in and out of healthcarefor years. They had or have too few individuals in theirorganizations that come from healthcare and they used a

furniture mentality to sell into healthcare and it is a costly andslow road.

Do not misunderstand me. Healthcare is still a tremendousopportunity even today. But you have to be serious about themarket. The real healthcare furniture dealers of today are fewand far between but when they “get it,” it really can take off andadd volumes of business…not just in furniture but in all areas.

If you want to learn how a real healthcare dealership hasdeveloped—how and why—head to San Francisco for theholidays and visit One Workplace and speak with the ownerDave Ferrari or better yet, Cliff Bass, whose background is inhealthcare, not furniture. They have a healthcare showroom likeno other and they “get it”. Let them tell you about projects witharchitects, bundling product areas and why it works.

Cliff gets it and so can you!

Robert J. Oosdyke is president of Health Care Furnishings, Inc. (HCFI),a healthcare consulting firm that assists dealers and manufacturers inpenetrating the healthcare marketplace with strategic plans, marketingstrategies, and complete differentiation from competitors. His 25 yearsof medical product consulting can now benefit the furniture dealer. Ifyou want more information on HCFI's exclusive territory rights todevelop the healthcare market for elite medical products and furniture,contact boosdyke@hcfi.net, 949.480.2379. www.hcfi.net