ofdealer october 2010 issue

FEATURES:

Comparative Benchmarking: How Do You Rate?

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IT’S A WRAP:OFDA 2010DealerStrategiesConference

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primacare™

healthcare furnishings

Frank Gutwein

PresidentWidmer Interiors

Vice PresidentOFDA Board

A Challenge from OFDA

OCTOBER 2010 OFDEALER PAGE 3

Last week’s OFDA annual conferencewas a huge success because of thevalue it offered each attendee. Everydealer I spoke with talked about howmuch they enjoyed and benefitted fromthe networking and speakers at thisyear’s conference in Bonita SpringsFlorida. Hat’s off to the staff and boardof OFDA and a big thanks also to thegreat sponsors who made this confer-ence possible.

The keynote speakers alone made thisconference well worth a dealership’s in-vestment to attend this annual event.The variety and quality of educationalsessions resonated with the dealer com-munity. If you are reading this and didn’tattend this year’s conference, my ques-tion is, why not? I am so confident of the

value of beingpart of OFDAand its annualconference thatif you attend nextyear and don’tfind value fromour conferences,we will refundyour conferencefee – in full!

OFDA is YOURassociation so I

encourage you to get involved, shareyour ideas and let us know how we canimprove it.

OFDA’s initiatives along with newly cre-ated task forces are focused on improv-ing our industry as a whole:

• Dealer PerformanceBenchmarking. We all learn fromeach other and improve ourbusinesses

• Education. In addition to ourannual event and NeoConseminars, with member inputOFDA is now developing atraining program to help everydealership acclimate newemployees to our industry.

• Website. If you haven’t been tothe redesigned OFDA website,check it out at www.ofdanet.organd watch for furtherenhancements in the monthsahead.

• Advocacy. Working to ensurefederal and state regulations don’tnegatively impact our businesses.

• Members-only discounts.Insurance, shipping, hiring,leasing, etc.

As incoming OFDA Chair for 2011, mychallenge to all of this year’s conferenceparticipants is to bring at least one otherdealer, installer or other industry peerwith you to next year’s conference.

For those of you who haven’t yet at-tended, it’s time. Mark your calendar forSeptember 24-27, 2011 and see you inTucson!

http://www.ofdanet.org

In Louisville, the brother and sister teamof Kelly and Tricia Burke and the rest ofthe folks at Office Environment Com-pany (OEC) are walking around withsmiles that stretch from their home townclear across the Ohio River and into In-diana, after receiving the kind of glowingtestimonial from a satisfied customerthat every dealer dreams of.

And to make it even more special, thehappy customer posted the testimonialon YouTube!

The customer in question was RegionalYouth Services (RYS) of Jeffersonville,IN, a non-profit that provides specializedfoster care services for children in needthroughout southern Indiana.

The organization recently received agrant to furnish its new therapy and vis-itation space and programs and opera-tions director Michelle Hendricksonturned to OEC for help.

“Staff at the Office Environment Com-pany helped us to take our budget andget not only the things on our ‘must-have’ list, but the things on our wish list,as well,” Michelle reports on YouTube.

“The space is warm and inviting and thestaff at Office Environment Companyworked so hard to try and get everythingthat we had asked for,” she continues.

Other RYS staff added their own thankyou’s on the video, including case man-

ager Lorraine Ondera. “I wish you couldsee the children’s eyes light up whenthey come into a room and the famileswho feel much more comfortable in ournew office space,” she says.

“Everyone at OEC was absolutelythrilled by the video,” says Tricia. “RYSis a relatively new account for us and theproject—some meeting and trainingrooms and a children’s reception area—all went smoothly, thanks to the help ofHON Basyx, Haworth and Groupe La-casse. The testimonial itself was unso-licited and came to us totally out of theblue!”

At a time when good news stories in the


CONTINUED ON PAGE 5

newsYouTube Kudos for Office Environment Company, Louisville Dealer

Strategic Planning and Risk/Opportunity AnalysisStrategic Planning and Risk/Opportunity Analysis

Merger/AcquisitionMerger/Acquisition

Executive CounselingExecutive Counseling

Succession Planning and Exit StrategySuccession Planning and Exit Strategy

Valuation and Maximizing Owner ValueValuation and Maximizing Owner Value

William E. Kuhn & AssociatesWilliam E. Kuhn & AssociatesWilliam E. Kuhn & Associates [email protected] [email protected] [email protected] 303303303---322322322---823382338233

We Can Help You Reach the SummitWe Can Help You Reach the Summit

office furniture business are still not exactly easy to come by,we’d like to add our own thanks to OEC and their happy cus-tomers at RYS.

And if you’ve ever thought being a dealer is only about sellingoffice furniture and not much more, point your web browserto www.youtube.com/watch?v=-6JNSvs8TGI and see foryourself how what you do can really make a difference for thefolks you do it for!

Storey Kenworthy, Des Moines Dealer, AcquiresMatt Parrott, Another Iowa Independent Last month saw two long-time Iowa dealers join forces as DesMoines-based Storey Kenworthy finalized an agreement to ac-quire Matt Parrott and Sons in Waterloo, about 120 miles tothe northeast.

Storey Kenworthy was founded in 1936 and is currently in thehands of the fourth generation of Kenworthy family members.Matt Parrott is one of the oldest dealers in the country, havingfirst opened for business back in 1868. Both companies areAllsteel dealers.

“Our environments and cultures are inherently very similar,”said company president Dave Kenworthy. “This is a strategic

step in the continued growth of our business and allows us toexpand our reach, both from a product offering as well as ageographic footprint.”

“My top priority was to ensure that our staff was in goodhands,” said Matt Parrott president Dave Buck. “I’ve knownof Storey Kenworthy for over 30 years, and have always hadrespect for them as a competitor. They are a multi-facetedbusiness and good community stewards. Their core valuesand business operations are a natural alignment with ours.”

No immediate changes in operations are anticipated, as the lead-ership of both companies work together on an integration plan.

Third Interior Solutions Location in ArizonaBecomes Kimball Office Select DealerKimball Office announced last month that Interior Solutions’newest location, in Tempe, AZ, has become a Kimball OfficeSelect Dealer. The new Interior Solutions location servesPhoenix and the surrounding areas.

Interior Solutions is a full-service dealership offering systemsfurniture, casegoods, and seating. Services include commer-cial relocation, project management, installation, asset man-

DEALER NEWS ~ CONTINUED FROM PAGE 4


CONTINUED ON PAGE 6

mailto:[email protected]

http://www.youtube.com/watch?v=-6JNSvs8TGI

agement, space planning, and office reconfigurations.

“We’re excited to welcome the Arizona location of Interior So-lutions onto our team; they have been a valued partner in theirother markets, for many years. We look forward to working to-gether to provide exceptional products and service to clientswhile expanding the market,” said Allen Parker, vice presidentof marketing and sales for Kimball Office.

Configura Announces Winners of Third Annual Awards ProgramOur congratulations go to designers at eight different dealer-ships who recently earned honors under design software com-pany Configura’s third annual awards program recently.

The awards were announced at Configura’s 2010 User Con-ference in Las Vegas last month. The winners included:

Best Client Success Story Using CET Designer

1st place—Jennifer Newton, NBS, Troy, MI

2nd place—Paul Riches, Heritage Office Furnishings,Vancouver, British Columbia, Canada

3rd place—Kaylie Tucker, Bank & Office, Seattle

Best Rendering Created Using CET Designer

1st place—Erin Valladares, Workplace Furnishings,Edmonton, Alberta, Canada

2nd place—Julia Honshell, Young Office,Spartanburg, SC

3rd place—Shannon McKenzie, Young Office,Spartanburg, SC

Best Video Created Using CET Designer MovieStudio Extension

1st place—Kristen McWethy, BKM, San Diego

2nd place—Tara Hoffman, Office Environments, Inc.,Bristol, PA

3rd place—Seana Turner, One Workplace, Oakland, CA

To see the winning videos, visitwww.youtube.com/ConfiguraAB.

For the winning renderings, visitwww.facebook.com/cetdesigner.

DEALER NEWS ~ CONTINUED FROM PAGE 5


http://www.youtube.com/ConfiguraAB

http://www.facebook.com/cetdesigner

http://www.phoenixsafeusa.com

ECi SoftwareSolutions (ECi)Earns National,

Local Recognitionfor Technology

Leadership

Earlier this month, the Business and Institutional

Furniture Manufacturers Association (BIFMA) re-

leased its market statistics for August and for the

sixth month in a row, incoming orders were ahead

of the same month a year ago.

According to BIFMA, August orders were up 22%,

accelerating the pace compared to the 9% gain

posted in July.

August shipments increased 8% year-over-year, the

fourth consecutive month of year-over-year ship-

ment growth for the industry, though less than July’s

11% gain in shipments.

“While August shipments were softer in compari-

son, the order increases are driving improved back-

log (+13% year-over-year), providing a solid and

improving base for future shipments,” commented

industry analyst Budd Bugatch of the Raymond

James investment house.

Bugatch also pointed to gains in the American In-

stitute of Architects’ Architect’s Billing Index (ABI)

as a positive indicator of industry trends.

The index, which tends to lead non-residential con-

struction by 9 to 12 months, improved to 48.2 in Au-

gust for the third consecutive month of modest

gains, Bugatch noted.

While August represented the index’s 31st consec-

utive month below 50 (the line of demarcation be-

tween expansion and contraction), the index is

significantly improved relative to its trough of 33.9

in January 2009, he added.


CONTINUED ON PAGE 8

BIFMA AUGUST STATISTICS: Orders Up 22%; Shipments Up 8%

For the third year in a row, ECi Soft-

ware Solutions (ECi), parent com-

pany of Team Design, DDMS and

several other industry technology

companies, has earned recognition

as one of the country’s fastest-

growing private companies by Inc.

magazine. ECi was ranked Number

2161, on the publication’s annual

Inc. 5000, list for 2010.

In addition to its Inc. 5000 honors,

ECi also received several statewide

and local area awards for technol-

ogy leadership recently. They in-

clude:

n Recognition as one of fourteen

2010 “Tech Titans” by the Dallas‐Ft.

Worth Metroplex Technology Busi-

ness Council, an award that high-

lights the fastest growing tech-

nology companies in the DFW

Metroplex.

n Recognition by the Lead411 busi-

ness research firm as one of the

“Hottest Texas Companies” for

2010.

n Inclusion in the Fort Worth Busi-

ness Press’s annual Top 100 list. ECi

was ranked Number 33 this year, up

from Number 41 in 2009.

Configura Signs Inscape forNew Extension Industry software provider Configura hasannounced that Inscape has selectedthe company to produce a CET DesignerExtension for Inscape’s product lines.

“We are excited by the opportunity touse Configura's parametric configura-tion software to capitalize on the exten-sive wall application knowledge thatresides within our specification and en-gineering staff,” said Inscape CFO andgeneral manager of Architectural Interi-ors Kent Smallwood.

“By providing exact specifications,photo-realistic renderings and virtual fly-through video experiences—plus theability to easily do changes on-the-fly—end-customer satisfaction is greatly in-creased,” Configura vice president PeterBrandinger added.

Kevin Smiertka to LeadFurniture Group Sales at Ghent At Ghent Manufacturing, Kevin Smiertkahas been appointed sales manager forthe company’s newly formed FurnitureProducts Group.

Smiertka has been with Ghent for 15years. In his previous role, he oversawcentral region sales for all of the com-pany’s furniture products and visualcommunication products. In his newrole, Smiertka will manage sales for theGhent Manufacturing Waddell Furnituredivision, as well as the organization’s re-cently acquired WoodWare Furniture di-vision, which manufactures furnishingsmade for use with education and busi-ness equipment.

Herman Miller’s KimberlyCoffman Listed Among 2010‘Champions of Diversity’DiversityPlus magazine recently releasedits 2010 Champions of Diversity awardwinners and Herman Miller’s KimberlyCoffman was among the 25 honorees.

More than 15,000 women and minoritysuppliers across the country partici-pated in the 2010 Champions of Diver-sity evaluation and selection process.Each of the women and minority owned

businesses contacted were asked tocomplete a survey to nominate a sup-plier diversity executive as a Championof Diversity. Nominees needed to servein a managerial or director capacity anddemonstrate leadership and skill in driv-ing supplier diversity at their firm.

Coffman, manager, supplier diversity atHerman Miller, has been leading HermanMiller’s Supplier Diversity initiative forthe past six years. The program is de-signed to drive the inclusion of diversesuppliers to enhance Herman Miller’ssupply chain and support corporate andcustomer diversity goals.

“This recognition means a lot to me,”Coffman said, “especially since it’s com-ing from the diverse business community.They rely on me to help connect them tothe right decision-makers within HermanMiller, and we rely on them for qualityproducts, services, and performance.”

Restructuring for Jasper Group Jasper Group, parent company of JSI,Community and Klem brands, has an-nounced several changes its sales andmarketing divisions.

After 14 years with Jasper Group, ColeHeichelbech has been named vice pres-ident of sales and marketing for the JSIand Community brands.

Heichelbech began his tenure with thecompany as director of marketing; fol-lowed by promotion to national salesmanager, where he was tasked withlaunching the new JSI brand.

In his new role, he will lead a restruc-tured team tasked with driving sales,market growth and delivering a consis-tent brand message to the company’sentire customer base.

Jasper’s sales team has also added newfaces, including two regional sales man-agers. Jay Nix has joined the companyto manage sales in the larger East Coastmarkets and Drew Daniel will managethe Southeast and Western markets.

In addition, Jay Eubanks has been ap-pointed corporate trainer, a new posi-tion, and Kathy Vonderheide will serveas contracts administrator in the govern-ment market.

National Office FurnitureIntroduces New Mesh SeatingFamily and HybridLounge/Guest ChairNational Office Furniture recently intro-duced two seating lines: Acquaint andMix-it Mesh Back.

Acquaint offers the lounge look and feelin a guest chair footprint. The hybridlounge, guest chair is available in ninefinishes as well as Designer White andCinder paints.

Acquaint features Antimicrobial Silver IonProtection, which inhibits the growth andspread of harmful stain and odor causingbacteria and comes with level 1 and SCSIndoor Advantage certifications. It isavailable with FSC certified wood whichcan contribute to LEED points.

Offering a contoured, cushioned framewrapped with a supportive, breathablemesh fabric, Mix-it Mesh Back seatingpresents a slim profile with full er-gonomic comfort. The mesh family alsoincludes guest and stool models andboasts level 1 and SCS Indoor Advan-tage Gold certifications. It is also avail-able with FSC certified wood.

INDUSTRY NEWS ~ CONTINUED FROM PAGE 7


The winds of change blew into Florida’sGulf Coast earlier this month as officefurniture dealers, installers, manufactur-ers and service providers from acrossthe United States descended on theHyatt Coconut Point Resort in BonitaSprings for the annual OFDA DealerStrategies Conference.

Moving beyond the recession and eco-nomic woes that have forced manydealers to down-size and trim costs, thisyear’s conference, with the theme “NewRealities, New Strategies,” focused onhow to move forward given the dramaticchanges that have reshaped our indus-try over the past two years.

“Industry changes continue to acceler-ate,” OFDA president Chris Bates told attendees. “In order for dealers to suc-ceed, they will need to make strategicadjustments to create agile, resilientbusiness models that can thrive in thisnew environment.”

Welcoming attendees, OFDA’s BoardChair Carlene Wilson recognized thetremendous support of OFDA PlatinumSponsors (The HON Company, Global -The Total Office, and Merchandise Mart)and Gold Sponsors (ECi, Kimball Office, National Office Furniture, and Knoll) andthe specific sponsorship of conferenceevents and promotional items by severalOFDA members, including 20-20 Tech-nologies, ABF-USA/Kite, AIS, EasyKeys,ECi, National and Steelcase.

Together with Vice-Chair Frank Gutwein,Wilson acknowledged OFDA’s alignedand unaligned manufacturers of the yearand presented service awards to Knolland ECi for their support of the dealercommunity.

Education AboundsDrawing on the success of last year’sevent, this year’s conference kicked offwith three half-day interactive businessworkshops and was followed over thenext two days by 21 breakout sessionsincluding nine dealer panels, a keynoteand three general session discussions.

The half-day sessions, hosted by LibbyWagner, Gil Cargill and Lynda Ward andMarina Van Overbeek, focused on cre-ating a profit culture, how to recruit andhire novices and redefining workplacestrategies.

According to OFDA’s post-conferencesurvey, 60% of those attending the half-day workshops reported them to be


CONTINUED ON PAGE 11

Winds of Change:New realities

New strategies

OFDA Dealer Strategies Conference

Wrap Up

8 6 6 . 3 7 4 . 3 2 2 1 • w w w . e c i s o l u t i o n s . c o m • i n f o @ e c i s o l u t i o n s . c o m

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excellent with another 36% saying they were good. The re-maining 4% reported their class as average.

During a mid-point break from Libby Wagner’s session, RayVogel, president of Contract Resource Inc. in Riverwoods, IL,commented, “I’ve only been here a few hours and the confer-ence has already been worthwhile.”

“Gil Cargill’s recruitment and management philosophies areright on the money,” said John Rafferty, sales manager at Cap-ital Office Systems in Anchorage, AK. “There is a lot of infor-mation to take back and implement.”

Breakout sessions were divided into a variety of educationaltracks, including technology trends; strategic planning and or-ganizational development; sales and marketing; financial man-agement, and operations management.

Returning speakers and moderators—Gil Cargill, Jim Heilborn,Debbie Junge, Greg Nemchick and David Solomon—and pan-elists from last year (Sam Thacker, Bill Davies, John Gallen andDean Williams, among others) were joined by a variety of newpresenters and dealer panelists who shared their practical ex-periences and expertise.

Of particular note were new speakers Wayne Breitbarth, prin-cipal of M&M Office Interiors, who outlined the “Top Ten Gotta



Itʼs a Wrap ~ CONTINUED FROM PAGE 9

Libby Wagner, president of Libby Wagner & Associates,

hosts a session on “Leading Yourself First”

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Do’s of LinkedIn”; Libby Wagner, presi-dent of Libby Wagner & Associates, whohosted a session on “Leading YourselfFirst”; and Ken Stiefler, president ofeXITS, Inc., who discussed exit planningstrategies and “business killer practices”to avoid.

Panel sessions again proved to be amajor hit and generated especially ac-tive dialog. Debbie Junge’s panel dis-cussion on growing revenues and profitsfrom business process improvementwas extremely well received, as wereJim Heilborn’s panel on creating a sus-tainable dealership model; Brenda Brodtof Junge + Associates’ panel on out-sourcing strategies; David Solomon’spanel on technology tools and a panelmoderated by Jason Kirby of eBoostConsulting on how to turbo-chargesales through internet lead generation.

Of all the attendees surveyed, 97% re-ported that breakout sessions weregreat, including 64% who said the ses-sions were excellent.

“The conference was our first. As a newmember I was very impressed with thespeakers and the

topics covered in the work-shops and sessions,” saidMike Baskett, president ofInstitutional Interiors inRaleigh, NC. “The chance tonetwork and discuss bestpractices in this venue isvaluable within our individ-ual dealerships and collec-tively as an industry.”

“I always tell myself that ifI come away from a con-ference like this with onevaluable, new idea…thatit was worth the time,”said Kevin Baker, presi-dent of Florida BusinessInteriors – Tampa Bay. “Ifound the conference tobe quite valuable andcame away with somegreat ideas and new‘litmus tests’ for inter-viewing new sales can-didates.”

This year’s keynotespeaker, Jack Daly, got

the conference rolling on Monday morningwith his sharp wit and interactive presen-tation. He challenged conference partici-pants to create a winning culture, managetheir leadership actions and attitude, andsustain a razor- sharp focus on mission,goals and high-payoff activities to achievedesired success.

Lunch session speakers challenged at-tendees to look to the future. Roy Aber-nathy’s presentation about BuildingInformation Modeling (BIM) and Inte-grated Project Delivery (IPD) served as a wakeup call to many dealers. He em-phasized the major opportunity for deal-ers and manufacturers to becomestronger resources to the A&D, facilitymanagement, commercial real estateand general contracting communities byembracing these new concepts and un




Our keynote speaker, Jack Daily, was“Awesome, always awesome.”

Roy Abernathy discusses dealer opportunities in Building

Information Modeling (BIM)

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derstanding how to integrate their product and serv-ice offerings into these new project managementconcepts and processes. He observed that this isthe best way to earn a seat at the table, as thesenew building project management concepts spreadand influence selection of office interior solutionsand preferred vendors and service providers.

Dan Sandlin, an Azure Solutions Specialist with Mi-crosoft, addressed small business applications andthe emergence of “cloud computing” as a way fordealers to improve their service to their customers.

He highlighted the way these technologies helplevel the playing field for small and midsize busi-nesses by offering opportunities to dramaticallylower IT and other costs, improve productivity andcustomer service and thereby increase growthand profitability. Sandlin concluded that many ofthese technologies are being used effectivelytoday or are on the immediate horizon, in many

cases available within the next 18-24 months.

For the first time in recent memory, OFDA held a breakfast “townhall” meeting to seek member feedback on several proposed newinitiatives and provide an open forum for discussion of relevanttopics.




OFDA Chair Carlene Wilson leads the first OFDA Town Hall Meet-

ing on new association initiatives. Shown with Wilson are (l to r)

OFDA board members Frank Gutwein, Steve Lang, Jim Mills and

Richard Driscoll.

http://www.NationalOfficeFurniture.com

The meeting was moderated by OFDA Chair Wilsonand included board members Richard Driscoll(Knoll), Frank Gutwein (Widmer Interiors), Steve Lang(Dancker, Sellew & Douglas) and Jim Mills (Office In-teriors of Nova Scotia). These directors respectivelychair OFDA’s newly created task forces to addressdevelopment of the Association’s overall valueproposition, website resources, a new training ini-tiative and benchmarking programs.

After a short description of what each task forceplans for the future, panelists responded to ques-tions and comments from the attendees.

A discussion about OFDA’s value proposition andthe need for membership growth and expandedparticipation of manufacturers led OFDA Vice-chair Frank Gutwein to issue a challenge to everyattendee to bring one other dealer with them nextyear; and spread the word about OFDA and its

valuable, practical conference program.

“We need to elevate the role of the dealer and collectively need to sell OFDAand what it represents,” said board member Steve Lang in support of Gutweinand OFDA’s new initiatives. “We need to leave our alignment issues behindand come together to support our association.”




ABF USA displayed their Kite Tables and

hosted the OFDA Welcome Reception

featuring British rock & blues band

Turning the Tables.

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Speaking of support, a va-riety of manufacturers andsoftware and serviceproviders hosted displaysboth in and around the cen-tral meeting area, which pro-vided an informal environ-ment that was highly con-ducive to learning and net-working.

During breaks and betweensessions, dealers were free toperuse the displays, talk withmanufacturers and serviceproviders and learn about theirlatest products and servicesavailable to dealers.

ABF USA was new to the con-ference this year and madetheir mark on attendees by notonly showcasing their Kite Tableproducts, but also hosting theMonday night welcome recep-tion, complete with rock andblues band “Turning the Tables”straight from the England. Atten-dees enjoyed networking andsome even put on their dancing shoes for some rockin’ fun!

OFDA’s “Parrothead” poolside party was held on Tuesday evening andfeatured the songs of Jimmy Buffett, complete with signature margaritas,great snacks and Hawaiian leis. Attendees chatted well into the eveningabout business, families and the future of the office furniture industry.

Everyone agreed that this year’s conference wasthe best ever and provided ample op-portunities for learning, networkingand a little fun too.

Next year’s conference will be heldSeptember 24-27 at the J.W. MarriottStarr Pass in Tucson, Arizona. OFDAencourages you to reserve thosedates in your calendar now and to en-sure that your 2011 budget makes pro-visions for this important annualinvestment in yourself and the future ofyour business. Stay tuned for more in-formation on next year’s event and forposting of podcasts of key 2010 confer-ence sessions in the near future.


ABOVE: Trevor Gruenewald (center left) COO of ECiand Richard Driscoll (center right) Dealer DistributionManager of Knoll accept service awards for theircompanies from OFDA Chair Carlene Wilson and ViceChair Frank Gutwein.

BELOW: Steve Rosen, President of Mark DownsOffice Furniture asks a question during OFDA's TownHall Meeting.


You’d think by now corporate Americahas had its fill of green, but officefurniture dealers are finding manycustomers still have an insatiablehunger for all things green, or at thevery least, are receptive to a greenmessage.

That green message has to sprout fromsomewhere and at All Makes OfficeFurniture in Lincoln and Omaha,Nebraska, it began with its vendors.

Gretchen Golter, design director, acknowledges that early onAll Makes wasn’t as informed as they needed to be topromote the green message about their office furnishings.

“We heard the green message from vendors and passed italong, but didn’t have the knowledge behind the message toreally know what kind of a difference it could make whentalking to a client about making better decisions on their long-term furniture purchases,” she says.

By Scott Cullen



Scott Cullen has beenwriting about the office

products, office furniture,and office equipment

industries since 1986.He has been working as

an independent writerand editor since 1997,

and is currently editorialdirector and managing

editor of OfficeSolutions,OfficeDealer, andPractice Manager

magazines. Scott alsohas written for various

office equipmentmanufacturers and

market researchorganizations, focusingprimarily onproduct and

dealer issues.

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The All Makes team quickly starting gettingsmarter about green. “When we did that,both sales and design became very cog-nizant of reading the green message that ourvendors were sending our way and decidingwith our clients the importance of water-borne stain, no off gassing of products, theuse of recycled fabrics and fibers in seatingand panel fabrics and forest-certifiedwoods,” says Golter, who is a LEED AP.

Golter has also found it useful to talk upher manufacturers’ own internal efforts tobe more environmentally responsible.

“Most manufacturers understand the im-portance of communicating what they aredoing to change their processes and pro-cedures and their materials internally tomake a greener statement,” she says.

Golter acknowledges that some of themarketing materials from her manufactur-ers are changing to reflect this marketingstrategy and illustrate how they’re not justtalking the talk but walking the walk.

“They’re not just saying it, they really trulyare talking about no-waste manufacturing,reclamation of water and reuse of raw ma-terials in their manufacturing such as thesawdust that comes off a wood plant or re-cycled plastic parts that are brought backto an original state and reused again,” shepoints out.

Golter feels customers today are moreknowledgeable when it comes to some ofthe green terminology and what beinggreen entails, but recognizes green knowl-edge remains quite superficial with a ma-jority of customers.

“But consumers are reading more and atleast asking questions even if they don’tknow the impact of making a selection,”she says. “They are asking questionsabout things that may impact the environ-ment, so the green speak that’s out thereis something that does trickle down andthey do have a genuine yearning to find outif their decisions are really green based.”

For Golter, the biggest challenge of bring-ing the green message to the market isgreen fatigue, a syndrome that kicks inwhen customers are bombarded on a dailybasis by green claims and labels on justabout everything from laundry detergent tohair care products.

Golter says many of All Makes’ clients willmake the right decision on what kind ofproducts they want because they want tobe socially responsible. They also under-stand that if they make an environmentallyand socially responsible decision, it canhelp with other internal initiatives such asrecycling programs or carpooling.

And does LEED AP make a difference forGolter herself?

“Most smaller organizations won’t recog-nize it, but they are going to read in thepaper again and again about the newYMCA being built and will eventually un-derstand that’s a definite direction towardsa very green, responsible, sustainable, en-

COVER STORY ~ CONTINUED FROM PAGE 16



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vironment,” she contends.

Goodmans Interior Structures, with officesin Phoenix and Tuscon, Arizona and Albu-querque, New Mexico, takes this greenstuff seriously, but they also make sure thatwhatever they’re doing is not misconstruedas green washing.

“We’ve done a lot of preparation behindthe scenes to make sure we’re proficientand implementing green services withinour own facilities and walking the talk andnot just offering a service to our clients,”says Rachel Dahl, marketing manager.

Goodmans’ main corporate facility isLEED CI certified and also has a workingshowroom.

“We did a renovation in 2004 and soughtLEED certification, which is typically nothow it’s done, concedes Dahl. “But the de-signer was thinking green concepts with-out thinking LEED and we were able to getLEED points because of how the renova-tion was done. We also have numerous

employees who are LEED APs and they’veeducated other employees about LEED.”

Clearly there’s nothing like having a LEEDCI-certified facility to take your green mes-sage to the market. And Dahl finds that cus-tomers tend to get it when it comes to LEED.

“It’s hard to think about a new facility with-out thinking LEED and we don’t see that

decreasing by any means,” she says

Getting around the green washing is a bigpart of Goodmans’ marketing efforts, as iscontinuing education about LEED.

“A lot of companies out there are inquisi-tive and we educate them about what thatmeans to their facility—not just on the pre-liminary design, but also as it relates to the




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furniture they place in it and LEED andgreen points that could possibly reducetheir overall energy costs,” says Dahl.

Goodmans spends a fair amount of timeeducating its own team members tooabout what LEED is and then talking abouthow to earn LEED credits for its projectsand services.

“Products and services do not earn LEEDpoints, but they can help toward that creditachievement,” states Dahl.

Goodman’s also works closely with its keybusiness partners in getting the messageacross.

“Some of the projects Herman Miller isworking on, like their Eco Scorecard, cancalculate quickly how their furniture canhelp an end user with LEED certificationpoints,” says Dahl.

More often than not, it comes down to lead-ing by example and making sure that Good-mans is doing themselves what they’retelling clients they can help them with.

“We have an incredible recycling programfor our warehouse that we track to see howmuch we save by recycling paper, card-board and plastics and measure how muchof the materials do not go to the landfill,”reports Dahl. “We also offer a furniture re-purposing program for our clients, so anyfurniture they don’t use can go to a localnon-profit instead of a landfill. That’s notreally a LEED program, but a green tactic

that shows clients and employees we’rededicated to this.”

The Elements IV Interiors showroom inDayton, OH, is the hot spot in town for or-ganizations looking to learn more aboutLEED CI certification. The showroom rep-resents the pinnacle of Elements IV’s greenmarketing initiatives.

“The biggest thing we’ve done is open ourspace up for people and show them howthey can achieve certain criteria that goesinto a green building and the process,”says Mark Williams, president and CEO.

Elements IV does a nice job of relaying thegreen message via its website as well.There, visitors can view the progressionfrom start to finish, along with the story ofhow Elements IV renovated its facility andachieved LEED CI certification.

“That, from a collateral standpoint, is thebiggest thing we’ve done,” says Williams.

The dealership’s advertising also helpsspread the green message, with messag-ing that focuses on sustainability andadaptable interior products. Elements IValso maintains a high profile at green exposand other events.

“We’ve got a strong group that we workwith here locally that did the commission-ing for our building,” says Williams. “Theyhold a green expo, we’ve sponsored thoseevents, and we’re co-sponsors for otherevents that tie around a green, LEED orsustainability story, so we’re very visiblefrom that standpoint.”

More than anything, it’s still the showroomthat’s Elements IV’s pride and joy.

“We really put a blitz on getting A&D folksinto our facility to see how we renovated it,the steps we took to go to a LEED facility,”reports Williams. “That really fed cus-tomers’ interest and they started asking



COVER STORY~ CONTINUED FROM PAGE 19

their A&D folks about it. The answer theygot back—and it was certainly one wewanted to hear—was, ‘Let’s take a tripover to Elements IV and see how theyachieved this.’”

What visitors see is the creative ways Ele-ments IV reused furniture, movable wallproducts, and raised flooring.

“In our partnership with A&D we got them ex-cited about the space, and they got their cus-tomers excited about the space, and it startedto take off from there,” beams Williams.

Elements IV’s main furniture supplier is Ha-worth and it has played a key role in thedealership’s green effort overall.

“Haworth has definitely supported us,” saysWilliams. “We offer various seminars withContinuing Education Units where Haworthwill come in or sponsor speakers who serveas subject matter experts on all sorts of dif-ferent topics related to sustainability andLEED and Green Building design.”

Not all customers are interested in LEED CIcertification, however, but that’s okay withWilliams just as long as they’re doing busi-ness with Elements IV.

“There are a lot of people who want to ac-complish renovations or new construction

the right way, but they don’t necessarilywant to become a certified building,” heexplains. “Our message to them is, ‘That’sokay and there are plenty of steps you cantake to become more green without be-coming a certified facility.’”

Office Services in Savannah is another of-fice furniture dealer that leverages itsshowroom to bring a strong green mes-sage to the marketplace.

“In today’s environment it’s getting more dif-ficult to ask CFOs to sign off on project typebusiness unless they can touch or feelthings,” says David Culverhouse, president.“We don’t have the luxury of taking a clientto the HON showroom in Atlanta, but we caninvite somebody into our own showroom.”

Customers and prospects who visit OfficeServices Savannah’s showroom get a greenmessage as soon as they walk in the door.

“We did two things that really send a greenmessage,” notes Culverhouse. “We putcarpet squares in here made from recycledcarpet and showcased HON’s Nature Coreproduct.” Nature Core is a plant-based al-ternative to the synthetic materials tradi-tionally used for acoustical control in officepanels. Office Services applied it to an 8’ x18’ wall and carved both the HON and Of-

fice Services Savannah logos into it.

For Culverhouse, green is increasingly im-portant throughout his market. “If you’renot environmentally sensitive, you can’t getinvited to the dance,” he says.

His one concern is that the word, “green”,is becoming overused and he’d hate to seethe same thing happen with it as did with“ergonomic,” which today shows up on al-most everything.

“It’s become a buzzword,” says Culver-house. “I don’t think you get any points forit, but you have to dot your i’s and crossyour t’s.”

Office Images in Rockville, Md. has its ownstrategy for taking a green message to themarketplace.

“We’re piggybacking onto the green mes-sages of our factories because it’s theproduct that has the green value,” saysDeb Horrworth, principal. “We also do net-working and promotional events.”

Office Images’ primary furniture vendor isAllsteel and the company leverages thetesting results and certifications of theirproducts when relaying the green messageto customers.




Additionally, Office Images, in conjunctionwith Allsteel, sponsors LEED testing prepa-ration for the A&D community at the Allsteel showroom, often with a LEED-cer-tified individual.

There are challenges to getting the greenmessage across and Horrworth puts someof the onus on the furniture manufacturers.

“We are dependent upon our factories tomake sure their products are certified andthat they supply us with all the informa-tion,” says Horrworth.

The biggest problem she finds is in bid sit-uations. For example, one recent prospectwas looking for a green system and askedeach supplier a series of questions and ex-pected comparable responses. Instead,they received a litany of confusing re-sponses from the suppliers.

“They wanted to compare apples to ap-ples, but they couldn’t,” says Horrworth.“Part of the difficulty is getting all the infor-mation about green and LEED certificationso that it’s meaningful and comparable forend users and the A&D community.”

“There’s no consistency because there aremultiple testing entities,” laments Hor-rworth. “And there isn’t anyone willing todig down and figure out whether or not theinformation is comparable.”

Despite the coverage green buildings andsustainability issues are receiving in thepress, Horrworth isn’t seeing as much in-terest out in the real world.

“We’ve been inundated with bids lately butaren’t seeing a lot with green require-ments,” she reveals. “Right now furnituredoesn’t really offer a lot of points in theLEED certification process. Most of what’savailable has to do with the more obviousthings like lighting and other elements in abuilding besides furniture. They’re not asdependent on us to get them all theirpoints for their LEED-certified buildings.”

Clea Grimm, architecture and designleader for Storr Office Environments inRaleigh Durham, N.C., works hand in handwith the A&D community and spends agood portion of her time filling them in onthe latest green products available from hermanufacturers.

“I’ve been talking about green initiatives forsuch a long time, but the honest truth is, inthe last five years manufacturers are com-ing to market every day with green prod-ucts,” she says. “They realize more andmore there’s demand for it, and the pricesare coming down.”

Besides educating the A&D community,Storr is doing the same with customersand prospects.

“If you can have a task chair with all the er-gonomics and all the aesthetics, and in ad-dition it has a good sustainability angle andat the end of its life can be recycled, thosetypes of things tell a good story,” she con-tends. “We’re fortunate we’re a Steelcasedealership and have a lot of that informa-tion at our fingertips, but there are a lot ofother good companies out there taking thatsame initiative.”

As far as Grimm is concerned, it’s becomea lot easier to bring the green message tothe workplace because the younger gen-eration is more receptive to the sustainabil-ity story and the social responsibility angle.

“Those are their hot buttons,” she says.

“It used to be I was only having conversa-tions about LEED with architects and de-signers, and conversations with the clientwere few and far between,” she says.“Now, we talk about it with our clientsevery day.”



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In each of the last six years, I have devoteda column in OFDA’s official publication to adiscussion of the association’s annual DealerFinancial Comparison and BenchmarkingGuide. The recently released 2010 reportshould be carefully reviewed by dealer prin-cipals and their CFOs. (The numbers and ra-tios in the current guide reflect 2009 dealerfinancial results.)

A careful review of the DFC report will enabledealers to focus on the most critical ratios oftoday and determine where their dealershipsmust be in order to be among the high profit—and financially strong—dealers tomorrow.

A Glance at the PastThe Results Comparison table lists a few ofthe more significant ratios and percentages.The DFC report breaks out these numbersand hundreds of others for specific groups ofdealers.

I’ve included the latest numbers and those ofthe prior year. A comparison of these resultsshows that even with a significant decline insales growth, profits were only down slightly.Other areas, such as the debt-to-equity ratio,actually improved.

In my October 2009 column, I went out on alimb and estimated what the current num-bers would be. While growth took a more sig-nificant drop than I had forecast, expenses,profits, and other profitability and financialmanagement measures such as ROA (returnon assets), ROI (return on equity), and debt-to-equity were better than I had forecast.

I’m glad to be slightly off in these projections,because it means dealers generally managedtheir businesses better in 2009, even thoughrevenue for the average dealer was off byover 20%.

Even in terms of revenue, furniture dealers faredwell, with a drop of 21.9% as compared to the

Comparative Benchmarking:

How Do You Rate?By Bill Kuhn



Bill Kuhn, principal of WilliamE. Kuhn & Associates, is anoted industry consultant,

writer, and speaker with over35 years of industry experi-

ence. He consults with dealerprincipals and their manage-

ment teams in areas ofstrategic planning, leadership

and organizational develop-ment, marketing, financial

management, valuation andmerger/ acquisition. For more

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

[email protected].


OFDA ’09 DFC OFDA ’10 DFC(’08 Results) (’09 Results)

High Profit Middle Profit High Profit Middle Profit

Growth 20.7% 0.1% -2.4% -21.9%

Installed Gross Profit 21.4% 19.1% 22.5% 19.4%

Core Operating Expenses 15.7% 17.1% 16.6% 18.6%

Net Profit Before Taxes 6.2% 2.5% 5.7% 0.7%

Current Ratio 1.6 1.5 1.7 1.6

Debt-to-Equity 1.8 1.7 0.9 1.3

Return on Assets 26.2% 12.5% 22.5% 4.5%

Return on Equity 84.1% 35.3% 48.1% 10.5%

The key factors in recessionary periodsrelate to the balance sheet and liquidity,specifically current ratio, debt-to-equity,return on assets and return on equity.

While the income statement—revenue,gross margins, expenses and profits—isimportant, the balance sheet is thedriver of financial strength.

The fact that dealers managed to main-tain a reasonable ROA and ROI, and sig-nificantly improved their debt-to-equityratio is most encouraging.

What’s MostValuable in OFDA’sDFC SurveyIn a weekly OFDA newsletter in June, Iwrote about five aspects of the DFC reportthat I find extremely valuable for dealers asthey plan and manage the financial end oftheir business. They bear repeating:

1. The survey’s comprehensiveanalysis allows you to benchmarkyour figures to comparable dealersbecause the report breaks outinformation by aligned and non-aligned dealers, revenue volumesize, profitability, market population,equivalent service revenue shares,

and installed margins as a percentof total revenues. Focus on thecomparatives that apply to yourdealership.

2. Service revenue shares andinstalled margins as a percent oftotal revenues are two relativelynew breakouts in the OFDA report.The figures reveal some interestingimpacts on overall profitabilitymeasures.

3. By comparing the numbers in thecurrent report with the prior year,you can identify meaningful trendsand then relate them to your ownoperation from one year to the next.In addition to financial actions youmay take, these trend comparisonscan suggest strategic changes,organizational shifts and staffingchanges that might be required.

4. The report’s Executive Summaryhas 11 charts and tables thathighlight the most important ratiosor breakdowns as a way to make aquick comparison. I keep a runningcomparison of these charts year-by-year to identify changes and trends,and I use this information when Iprovide financial advice to a dealer.

5. The survey includes criticalratios—not only profitability ratios,but the all-important assetmanagement ratios from thebalance sheet. In today’s economy,understanding the financial ratiosthat affect your organization—suchas the current ratio, collectionperiod, cash cycle data, debt-to-equity, and ROA and ROI—areessential for managing yourdealership effectively.

Many of these ratios are strikingly differ-ent among the various profitabilitygroups. They are also ratios that yourlending institutions will review closely.

Re-evaluate your financial position andtake the time to study the information inthe latest DFC report. Focus on the keyratios, determine where you are andwhere you will be financially at year endand learn what you must do to surviveand prosper.

The 2010 OFDA Dealer Financial Com-parison and Benchmarking Guide isavailable for purchase at special dis-counted rates through the Online Storeat www.odfanet.org or by calling OFDAat 703-549-9040.

BENCHMARKING: How do you rate? ~ CONTINUED FROM PAGE 24


BIFMA (Business and Institutional FurnitureManufacturers Association) statisticsshowing a drop in manufacturers’ ship-

ments of close to 30%.

It does appear we are finally bottomingout. BIFMA forecasts a decline in rev-

enue of 5.1% for 2010 with an 11.1% in-crease in 2011.

http://www.odfanet.org

Recently I spoke at an annual meeting for an

organization about the importance of top level

executives and owners helping to generate ex-

posure for their companies and drive business

in today’s economy. The title of the presenta-

tion was, “Get Off Your Butts and Out of the

Office to Drive Higher Profits Now!”

Immediately after I was introduced, I restated

the title of my talk and explained that I was

about to perform an exercise that could be

challenging and difficult and needed two vol-

unteers. Initially, no one raised their hands.

“Not even two volunteers?” I asked.

Finally, three volunteers raised their hands and

after asking the first two volunteers to come for-

ward, I asked them why they volunteered de-

spite being told that the task they were about

to perform could be challenging and difficult.

They both stated that they appreciated a chal-

lenge.

At that point, I gave the first volunteer forty dol-

lars and the second volunteer received twenty

dollars and sent them back to their seats. The

exercise was over and the audience was

shocked.

I explained that owners and executives who

are willing to take a risk and do something that

could be uncomfortable are the same ones

that will be rewarded.

I also pointed out that the rest of the individu-

als who sit on their butts like they just did will

get what they just got—nothing!



Get Off YourButt

and Out of The Office!by Tye Maner

Tye Maner is president of

the Tye Maner Group, a

national sales and

leadership development

firm based in Tampa,

Florida. Tye can be

reached at

[email protected]

and 813-672-1040.


Most organizations have exceptional em-ployees that are loyal, hardworking anddemonstrate tremendous dedication. How-ever, no one in that organization has moreat stake than the owners or top executives.Therefore, it is unrealistic and dangerous toplace the success of your organizationcompletely in the hands of your staff. Youmust also have the mindset, “If it is to be,it is up to me.”

One of the primary objectives of anyowner or top executive in an organizationis to generate exposure and opportunitiesfor your company. This may be challeng-ing because not everyone who owns ormanages a business may be an extrovert.

As a matter of fact, many of you may beintroverts, however, you must do what isnecessary to grow your business. There-fore, it’s time to employ some winningstrategies and move to a higher level.

Many dealers have shared with me theirfear of being social or in the limelight. First,you are going to have to embrace the factthat fear is all in your mind, therefore, it canbe controlled and even eliminated.

One way to generate the necessary moti-vation is by clearly imagining and puttingin perspective just how significant the fol-lowing two activities will be the success ofyour company:

• Networking to make connectionsand build relationships

• Volunteer work in your communityto contribute and give back

NetworkingNetworking is an essential part of growingand sustaining a healthy and profitablebusiness.

It is critical to set a realistic goal for thenumber of events you will participate in orattend every month to maintain and en-hance current connections and establishnew business alliances.

The following are some tips to help yournetworking activities be more successful:

• Have a goal for the number of newcontacts

• Envision yourself being successfuland well received at the event

• Get involved with industryorganizations

• Follow up with new contacts within24 hours with an e-mail or phonecall

• Conduct a quick interview byasking the following questions:

4Ask about their firm or whatthey do

4Ask who is their ideal client(you may have a referral forthem)

4Ask what type of recreationthey enjoy

4Mention that you will follow-up to schedule anappointment shortly

Keep in mind that a savvy networker is nottrying to close business right away. Thegoal is to build relationships.

Volunteer WorkThere are few things you can do that canbe more rewarding personally than givingback to your community.

I’ve learned that when I have my handopen so my community can draw from it,my community heaps opportunities andprofits back into my hand.

The concept of sowing and reaping isalive and well. You will always get back farmore than you give. The key is to con-tribute without the expectation of receiv-ing anything.

It’s equally important to do volunteer workin an arena in which you are passionate. Itactually won’t feel like work if you do this.

For example, one of the organizations Iworked on a volunteer basis encouraged“at risk” youth to rise above their circum-stances.

I was on a committee that developed aprogram titled “Focus on Success” forthese youths. It proved to be very suc-cessful in changing the lives the partici-pants were leading.

One of my fellow volunteers was Mike, theCFO of a very large insurance company.Mike and I worked closely on the projectfor over ten months but while he knewsomething about my company, I neverpursued his company to do business. Myfocus was to give back to the community.

One day, Mike approached me and askedme if my organization did sales trainingand development. I told him that we didand he said that he wanted to discuss thatwith me.

Four weeks later, his company approveda sizeable service agreement with me todevelop their sales team. He didn’t con-sider any other companies. The fact thatwe worked together shoulder to shoulderon a volunteer project and he could seemy commitment, integrity, passion and at-tention to detail was enough for him tomake a decision.

There is no greater ambassador for yourcompany than you. Furthermore, it is un-realistic to expect your employees to caremore about the success of your companythan the owners or top executives of thecompany.

Now more than ever, leading by example isa necessity, not a nicety. Your mindset willhave to change or stretch to be successfultoday. I have only one suggestion for you ifyou aren’t pleased with your dealership’scurrent profits or performance: Get off yourbutt and out of the office!

GET OFF YOUR BUTT... ~ CONTINUED FROM PAGE 26


ofdealer october 2010 issue

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