september 2008 office technology

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Captain Your Ship

Navigating the stormy

seas in a tough economyby Jake G. WangIDCThe economy has slowed defini-tively, credit markets are tight,the rate of inflation is increasing,hardware vendors are acquiring more of the dealerchannel and competition is growing. All of thesethings are making dealers’ lives more difficult anddeveloping and maintaining differentiation in acrowded market is increasingly fleeting. How candealerships maintain and grow their market share?

4 | w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8

CONTENTS

Professional Services

Setting your dealership

apart from the competitionby Brent HoskinsOffice Technology Magazine“Stop just ‘selling boxes.’” Manydealers in the office technologyindustry may be tired of hearingthe admonition, especially since itmay seem a bit counter-intuitive. After all, the MFP fac-tories in Japan and elsewhere do manufacture “boxes.”Perhaps, more specifically, the advice should be: “Seeknew, more lucrative means to the same end (sellingMFPs and capturing clicks) while locking in more cus-tomers and setting your dealership apart from competi-tors in order to ensure its ongoing success.”

Volume 15 � No. 3

18

10

20

F E A T U R E A R T I C L E S

The Software Arena

Choosing & providing

the right solutionsBy Ben RussertProSourceWhile the role of the copier/MFPdealer has evolved into a morecomprehensive and customer-focused document solutions provider, so, too, has theneed for technical expertise and support beyond the boxsales of printers and copier/MFPs. The shift to new serv-ices includes adopting and understanding new tech-nologies, including software that integrates and auto-mates document management.

26 One on One

A weekly meeting with

each rep is importantby Jim KahrsPPMC Inc.Do you wish you could get betterconsistency from your sales team members? Do youthink they could work harder or smarter? If youhave answered “yes” to either of these questions, youare not alone.

Non-Disclosure Agreements

Will they protect your

confidential information?by Robert C. GoldbergBTA General CounselAgreements to restrict the disclo-sure of certain types of information — often calledconfidential disclosure agreements (CDAs) or non-disclosure agreements (NDAs) — have become com-mon in business.

22

D E P A R T M E N T S

6

8

30

Executive Director’s Page

BTA President’s Message

Advertiser Index

S E L L I N G S O L U T I O N S

29 Key Account Opportunities

Look at competitive factors

& the investment decisionby Tom KramerCATALYST Performance LearningIn last month’s article, I noted that there are four keyareas that, when taken together, give you a concep-tual framework to assess your key account opportu-nities. In this article, we will look at competitive fac-tors and the investment decision.

Business Technology Association� October/November Education Calendar

� BTA Membership Application

� BTA Highlights

23

C O U R T S & C A P I T O L S

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Executive Director/BTAEditor/Office Technology

Brent [email protected]

(816) 303-4040

Associate EditorElizabeth Marvel

[email protected](816) 303-4060

Contributing WritersRobert C. Goldberg, General Counsel

Business Technology Association

Jim Kahrs, Prosperity Plus Management Consulting Inc.www.prosperityplus.com

Tom Kramer, CATALYST Performance Learningwww.catalyst2performance.com

Ben Russert, ProSourcewww.totalprosource.com

Jake G. Wang, IDCwww.idc.com

Business Technology Association12411 Wornall Road

Kansas City, MO 64145(816) 941-3100

www.bta.org

Member Services: (800) 505-2821BTA Legal Hotline: (800) 869-6688

Valerie BrisenoMembership & Marketing Manager

[email protected]

Mary HopkinsDatabase Administrator

[email protected]

Teresa LeerarBookkeeper

[email protected]

Brian SmithMembership Sales Representative

[email protected]

©2008 by the Business Technology Association. All RightsReserved. No part of this publication may be reproduced by anymeans without the written permission of the publisher. Everyeffort is made to ensure the accuracy of published material.However, the publisher assumes no liability for errors in articlesnor are opinions expressed necessarily those of the publisher.

EXECUTIVE DIRECTOR’S PAGE

Have you taken

advantage of the

Business Tech-

nolog y Association’s

monthly “Building My

Business” Webinar Ser-

ies? If not, I encourage

you to do so. It is an

af fordable, easy way to hear from the

industry’s leading presenters — affordable

because it is free to BTA members (the only

expense is the cost of the phone call) and

easy because there is no travel involved.

To date, the association has hosted eight

one-hour webinars, collectively drawing

more than 300 attendees. To pre-register,

simply visit www.bta.org and click on “Edu-

cation & Certification” on the home page.

Th en cl ick on “Bui lding My Busin ess

Webinar Series.” Once your BTA member-

ship is verified, you will receive a final regis-

tration e-mail providing you with a dial-in

number and the GoToWebinar link.

Here’s a look at the next three “Building

My Business” webinars:

� “Do You Know Your Numbers?” (4 p.m.

EST, Monday, Sept. 22), to be presented by

John Hey of Strategic Business Associates.

This webinar will highlight the basics of the

Hanson/Hey Model, its validity as a manage-

ment tool, how business owners and their

managers use it and some of the key strategies

to increasing operating income. John began

his career with the former DC Hey Co. in 1973

as vice president of sales. In 1985, he became

president and owner. During the next 12 years,

the company grew from $5 million to $150

million in revenue and from 50 employees to

more than 700. He sold the company to Alco

Standard Co. (IKON) in 1988.

� “The Integrated Advertising Platform”

(4 p.m. EST, Thursday, Oct. 23), to be pre-

sented by Wes Phillips and Ian Crockett of

Orange Label Art + Advertising ( formerly

Hunter Barth Advertising). This webinar

will share a unique approach to developing

your dealership’s core marketing message

and creating an easy-to-administer inte-

grated advertising platform. Wes joined the

agency in 1983 as controller and became

CEO in 1995. Ian, who serves as president of

the agency, has been affiliated with the

office technology industry since 1984. For

many years, they have worked to create

marketing and sales programs for clients

that are strongly tied to an integrated

advertising platform.

� “A Business Model for Professional Serv-

ices” (4 p.m. EST, Tuesday, Nov. 11), to be pre-

sented by Mitch Morgan of CEO Focus. This

webinar will address the many questions

dealers are asking about the professional

services business and the eight critical

factors for success in this growing revenue

category. Mitch was founder of the Connec-

tivity Dealer Program from NIA (a BTA

Alliance) in 1991. After selling NIA to IKON

Office Solutions in 1996, he led the com-

pany’s Technology Services Division, repre-

senting 35 acquisitions of network in-

tegration businesses. He later formed IKON’s

Professional Services Division. Today,

through CEO Focus, he leads the Profes-

sional Services Roundtable, whose members

represent leading independent MFP dealer-

ships that are successfully implementing a

business model for professional services.

Sound interesting? Then pre-register

online today and join the many other dealers

who have taken advantage of this valuable

BTA member benefit. �

— Brent Hoskins

Monthly WebinarsFree To Members


®

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BTA PRESIDENT’S MESSAGE

It’s in a beautiful area

on the North Car-

olina side of the

Great Smoky Mountains.

The venue is ver y in-

viting, far from the hustle

and bustle of our busy

lives. And , without a

doubt, the agenda will provide attendees

with insight and guidance that will help

them further boost their dealership’s bottom

line. Scheduled for Oct. 24-25 at the Way-

nesville Country Club Inn in Waynesville,

N.C., the BTA Southeast “Fall Colors Confer-

ence” is an event you will not want to miss.

It has been my privilege to attend this

annual district conference several times in

the past. I always welcome the opportunity

to catch up with my dealer friends in the

Southeast and learn from the various

speakers. The district’s leadership does a

tremendous job of making this a very enjoy-

able, worthwhile event. It is no wonder that

it has been such a success for so many years.

The conference begins with an opening

reception from 6 p.m. to 9 p.m. on Friday,

Oct. 24. The next morning, from 8 a.m. to

noon, there will be three education sessions.

Following an afternoon break to allow atten-

dees to enjoy the sights of the Waynesville

area, the BTA Southeast district will host a

cocktail reception and dinner. The exhibiting

sponsors for the conference are Color

Imaging, ECi, Lexmark, LEAF Dealer Solu-

tions, Muratec America, MWA Intelligence

and Tech Data.

This year, the district has invited me to

be on the agenda as well . Specifically,

during a luncheon following the Saturday

education sessions, I will lead an informal

discussion about industr y trends and

answer any questions attendees have about

the association or, among other topics, a

dealership’s service operation, based on my

many years of experience in this area.

Here’s a look at the conference’s educa-

tion session line-up:

� “Exceptional Customer Service,” pre-

sented by Lisbeth Ann Marin, a self-made

entrepreneur who has more than 25 years of

self-employment and business manage-

ment experience.

� “Driving Service Margins Above 52

Percent,” presented by Jerry Newberry, presi-

dent of BEI Pros. He has more than 24 years

of industry experience, the last 10 years with

Global Imaging Systems as a corporate

officer and national vice president of service.

� “What the CEO Must Know to Raise

Sales Performance,” presented by Karl Graf,

CEO of TrustPoint Management Group. He

specializes in executive sales consulting and

sales productivity training.

General registration for the conference is

$159 and $129 for the second attendee from

the same company. For more information or

to register, visit www.btasoutheast.org or

call (800) 234-8996.

Finally, as a frontrunner to the confer-

ence, the “BTA Sales Management Work-

shop” will be held Oct. 23-24. Led by Tom

Callinan and David Ramos of Strategy

Development, the workshop is designed to

provide dealership principals and sales

managers the tools they need to take their

dealerships’ sales success to new heights.

BTA Sales Management attendees will

receive free General Registration to the Fall

Colors Conference. For more information or

to register, visit www.bta.org or call (800)

843-5059. �

— Ronelle Ingram

BTA Southeast EventSet For Oct. 24-25

®

2008-2009 Board of Directors

PresidentRonelle Ingram

Steven Enterprises Inc.17952 Sky Park Circle

Ste. EIrvine, CA 92614

[email protected]

President-ElectBill James

WJS Enterprises Inc.3315 Ridgelake DriveMetairie, LA 70002

[email protected]

Vice PresidentRock Janecek

Burtronics Business Systems Inc.216 S. Arrowhead Ave.

P.O. Box 1170San Bernardino, CA [email protected]

BTA EastTom Ouellette

Budget Document Technology251 Goddard Road

P.O. Box 2322Lewiston, ME 04240

[email protected]

BTA Mid-AmericaMike Blake

Corporate Business Systems LLC6300 Monona DriveMadison, WI 53716

[email protected]

BTA SoutheastBob Smith

Copiers Plus Inc.408 Chicago Drive

Fayetteville, NC [email protected]

BTA WestGreg Valen

Hawaii Business Equipment Inc.Toshiba Business Solutions - Hawaii

590-A Paiea St.Honolulu, HI 96819

[email protected]

Ex-Officio/General CounselRobert C. Goldberg

Schoenberg Finkel Newman & Rosenberg LLC222 S. Riverside Plaza

Ste. 2100Chicago, IL 60606

[email protected]


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by: Brent Hoskins, Office Technology Magazine

Professional ServicesSetting your dealership apart from the competition

“Stop just ‘selling boxes.’” Many

dealers in the office technology

industry may be tired of hearing

the admonition, especially since it may

seem a bit counter-intuitive. After all, the

MFP factories in Japan and elsewhere do

manufacture “boxes.” Perhaps, more specif-

ically, the advice should be: “Seek new,

more lucrative means to the same end

(selling MFPs and capturing clicks) while

locking in more customers and setting your

dealership apart from competitors in order

to ensure its ongoing success.”

Of course, many dealerships have

already moved their focus away from always “just selling

boxes.” Instead, they are also pursuing new ways to win and

keep customers, capturing more clicks. Increasingly, this

includes a professional services strategy.

What are professional services? Generally speaking, they

are chargeable, often knowledge- and support-based offer-

ings such as: document-related software implementation

and customization (i.e., document management, variable

data printing solutions, etc.); ongoing software maintenance;

managed print services; custom scope-of-work deliverables;

post-sale support; and consulting and assessment services.

Why is it important for dealers to pursue such services?

“The risks of not doing so are pretty apparent,” says Mitch

Morgan, former vice president of professional services for

IKON Office Solutions and now president of Professional

Services Roundtable, a dealer peer collaboration consultancy

through CEO Focus (www.ceofocus.com). “The risk is being

non-competitive in the market compared to other traditional

competitors that are now moving forward in this area.”

In addition, says Morgan, the dealer who opts not to offer

professional services is jeopardizing the value of his (or her)

dealership. “Any buyer would have to look at what types of

things they would need to do in order to

make sure the business is viable on a go-

forward basis,” he says. “So, there is a risk

in terms of the actual value of the busi-

ness going forward.”

Tom Callinan, president of Strategy

Development, a sales management con-

sultancy (www.strategydevelopment.org.),

and a former executive with IKON as well,

offers an additional perspective on the

reason to pursue a professional services

strategy. “With a continued decrease in

average unit selling prices of hardware

and a year-over-year decrease in the quan-

tity of units sold, if the dealership is going to grow, professional

services is an area in which the dealership can grow profitably,”

he says. “Moving into this area is offensive and defensive.”

If the strategy is increasingly important to a dealership’s

long-term profitability and viability, are most dealerships,

then, effectively offering professional services? It appears

the answer is “no.”

“I don’t think there are very many dealerships — Toshiba

or otherwise — that have a very effective professional serv-

ices program,” says Bill Melo, vice president of national

accounts, marketing and operations, for Toshiba America

Business Solutions (TABS). “But I do think most dealers are

aware of the professional services that go beyond what

they’ve offered in the past. I think there is a high level of

awareness right now. There are probably more dealers in a

trial-and-error stage now than there were a year ago.”

Morgan shares a similar observation. “Nearly all dealer-

ships have what most of them would call an IT group,” he says.

“And that IT group would serve a dual function — to manage

the internal IT at the dealership and to do connectivity

installs. So, most, if not all, of the dealerships that are out

there have what I would call the seeds of professional services.

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They’ve got a group of folks

who are technical in nature

who are used to dealing with

the IT environment.”

However, w hile many

dealerships with an IT group

do charge fees for connec-

tivity and a “stripped down”

help desk, “most of them

have not really transitioned

to what I call a ‘culture of

chargeability,’” says Morgan.

“So, I would say that the

majority of dealerships have some of the elements — the

beginning point in place — but probably only about 30 to 40

percent of the dealers I talk to have an actual professional

services strategy.”

Morgan adds that a number of the dealers he talks to do

have a vision of the professional services endpoint they want

to achieve. “However, the

roadmap to getting there is

very fuzzy to them,” he says.

“So, having a vision of where

you want to end up doesn’t

necessarily equate to mak-

ing progress.”

What is the holdup? It

appears that one of the cul-

prits is the tendency to view

a professional services strat-

egy simply like the addition

of another hardware prod-

uct. “I have had very successful dealership principals say to

me, ‘I don’t mind making the investment, I just need to know

what my return is going to be and when I can expect a

return.’” says Morgan. “I think that is one of the big holdups.”

Another holdup is the lack of a good plan, says Callinan. “In

fact, I would say that very few dealers who offer professional


“... Most, if not all, of thedealerships that are outthere have ... the seeds ofprofessional services.They’ve got a group offolks who are technical innature who are used todealing with the IT environment.”

— Mitch MorganCEO Focus

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services have a well-thought-

out strategy,” he says. “It is

often vendor driven. In other

words, the dealer goes to a

vendor meeting and hears

something good about a soft-

ware vendor that sells a par-

ticular product. The next

thing you know, the dealer-

ship is selling that vendor’s

product and there is no well-

thought-out strategy.”

What should a good strat-

egy or plan entail? “The plan needs to include qualitative ele-

ments that relate to personnel, resources, activities and

accountability,” says Morgan. “And it needs to include targets

for revenue growth — where the dealership is trying to take

the business in year one and beyond. I recommend that the

year-one target be 6 to 8 percent of equipment revenue.”

In that first year, the dealership may want to begin by pur-

suing a low- to medium-level document management solu-

tion that is tied into the

sales cycle of an equipment

discussion, says Morgan. By

the third year, he says, the

target revenue should be 17

to 20 percent of equipment

revenues, and will involve

more complex installations,

such as $15,000 to $50,000

do cum ent managem ent

deals with $2,000 to $5,000

ser vices fees associated

with the software. “By the

third year,” he says, “this becomes a meaningful revenue

source once the business reaches maturity.”

To help dealerships develop the ideal plan, Morgan shares

what he identifies as the “eight critical success factors for

professional services.” They are as follows:

� Organization Structure — It is important to have the

right person in the right job, with dedicated roles. There should

be appropriate headcount metrics to support the initiative.


“... Very few dealers ...have a well-thought-outstrategy. The dealer ...hears something goodabout a software vendor ...The next thing you know,the dealership is sellingthat vendor’s product ...”

— Tom CallinanStrategy Development


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� Accountability/Activ-

ity — In many dealerships,

the professional services

group operates without a

clear set of performance

expectations, beginning with

activity and productivity

targets. A clearly defined set

of expectations and the

measurement of activities

and performance accounta-

bility are critical.

� Sales Int egration/

Inspection — Professional services specialists provide

support to sales and drive software-based solutions through

the traditional sales organization. Sales management pro-

vides the needed inspection and focus.

� Compensation/Incentives — Incentives are provided

to drive behavior toward value-added solutions. Attainable

quotas are established to

ensure appropriate focus

and accountability.

� Software Products/

Services — There should be

an appropriate mix of soft-

ware-based products geared

to inclusion with equipment

placements and providing

an opportunity to grow with

customer requirements.

� Service — Basic con-

n ectiv ity responsibi l ity

needs to be shifted to the service organization, freeing pro-

fessional services resources to focus on software offerings.

� Financial Reporting — Key metrics should include

revenue, margin, contribution, headcount and productivity.

� Training and Development — Professional services

personnel have a responsibility to provide training and

development to sales and service personnel to enhance

knowledge of current and future software offerings.

“These eight critical success factors are the issues that

dealers need to check off and build around in order to be sure

they are successful in professional services,” says Morgan.

“The good thing about it is, generally speaking, if the transi-

tion is handled properly, it is an opportunity for incremental

revenue with existing resources. Most companies that I work

with do not have to add a lot of headcount to get to that first

year billing level (6 to 8 percent of equipment revenue).”

Melo agrees with Morgan that developing a professional

services strategy over time makes sense. He acknowledges that

the number of relationships that Toshiba and other manufac-

turers have with third-party software companies can be over-

whelming for dealers. “My advice is to focus on something that

complements your dealership and your customer base and

become really good at it,” he says. “It is better to be really good

at one thing than to be mediocre at ten things. So, aim for and

achieve small victories, and then build on those victories.”

Callinan offers similar advice. “Don’t start with the most

sexy, technically advanced product offering out there,

because it is going to have a very long sales cycle,” he says. “It’s

going to be complicated from a process perspective to imple-

ment and you are probably going to experience a failure with

it. Where, if you can build some success with easier-to-sell

professional services, you will get comfortable with them and,

eventually, you can get into those complex areas.”

Will there come a day when end-users simply expect that

“... Focus on somethingthat complements yourdealership and your customer base andbecome really good at it.It is better to be reallygood at one thing than tobe mediocre at ten things.”

— Bill Melo Toshiba America Business Solutions


office technology dealer-

ships will also offer profes-

sional services? “If that day

has not arrived, it’s not in

the too distant future,” says

Callinan. “So, dealers need

to develop these competen-

cies today.”

Morgan concurs. “ The

more we are dealing inside

th e I T environm ent, th e

more th e custom ers are

expecting us to be able to

offer some of these value-added services,” he says. “By the

way, they don’t mind paying for it.”

(As an alternative, dealers who are uncertain whether

they want to employ the personnel necessary to develop a

professional services strategy may want to consider The

Utility Company [www.theutilitycompany.com], a managed

IT services company that partners with office technology

dealerships. The franchise company provides dealerships

with th e abi l ity to b e a

single-source technology

provider, offering remote

monitoring and per-minute

help desk, network, desktop,

security, online data backup

and communications serv-

ices. “We provide dealers

with a complete business

system to market, sell and

deliver managed IT services

with more than 90 percent

of customer issues resolved

remotely,” says Mark Scott, president and founder. “Our

recurring revenue model has built-in loyalty through exclu-

sivity and is a great alternative to the ‘do-it-

yourself ’ approach.”) �Brent Hoskins, executive director of the

Business Technology Association,

is editor of Office Technology magazine.

He can be reached at [email protected].

“We provide dealers with acomplete business systemto market, sell and delivermanaged IT services withmore than 90 percent of customer issues resolvedremotely. Our recurringrevenue model has built-in loyalty ...”

— Mark ScottThe Utility Company

w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8 | 17



by: Jake G. Wang, IDC

Captain Your ShipNavigating the stormy seas in a tough economy

The economy has slowed defini-

tively, credit markets are tight, the

rate of inflation is increasing,

hardware vendors are acquiring more of

the dealer channel and competition is

growing. All of these things are making

dealers’ lives more difficult and devel-

oping and maintaining differentiation in

a crowded market is increasingly fleet-

ing. How can dealerships maintain and

grow their market share when so many forces are poised

against them?

When things get chaotic at sea, what does the captain of a

ship do? He (or she) coolly and calmly surveys the landscape,

identifies a heading and plots a course around obstacles to

reach his goal. Today’s small- and medium-sized business

owners must do the same. The goal, of course, is to maintain

existing business and grow new business. In order to do so in a

highly competitive and declining market, dealers must provide

more value and better service than the competition. Even in

stormy seas, a savvy captain can find an easier path to reach his

destination. In today’s difficult market, that path is the develop-

ment of a value-added relationship with your customer base.

In a services-led business model, customer expectations

of high-quality products with rich features, competitive

pricing and high reliability are a given. What distinguishes

you from your competitors is the ability to provide added

value to your customers, to know them better than anyone

else and provide intelligent analysis, service and improve-

ments to their environment.

In order to do this, information is required. You must

have a deep and penetrating understanding of the cus-

tomer’s environment. Information is power and the right

information, interpreted correctly and in a timely manner,

can provide you with the key to adding value. The greater

your ability to improve your client’s document output envi-

ronment, the greater your value will be

to them and the less likely the client

will switch to a new provider. More

importantly, the more time a client

spends working with you to under-

stand his environment, the less incen-

tive he has to work with someone else.

In software terms, this is often called

“application stickiness” or “change

cost.” In the document output world,

the same analogy applies. How much stickiness have you

developed with your client base?

IDC’s research indicates that the majority of end-users

have no idea how much their document output costs are or

how much volume they are printing or copying. In fact, cus-

tomer perception of their output behavior is almost always

inaccurate. If end-users do not know or have misconcep-

tions of their document output, how can a vendor or service

provider help? The answer is the key to gaining competitive

advantage and in the current economic slowdown, it is

absolutely critical to understand.

The first step to solving a problem is to identify what the

problem is. In this case, the key is pages. Where are they

printed and copied? On what types of devices? Where are color

prints going? Are devices under- or over-utilized? Do legacy

devices need to be removed and replaced with current tech-

nology? Are there business processes that could be automated,

improved or removed? The first step in building value with a

client is to be able to help them understand their environment.

The tools for assessing document output environments have

improved vastly over the last five years, yet surprisingly, only 20

percent of the companies IDC surveyed had deployed any type

of remote device or fleet management software. In an increas-

ingly crowded sales market, a 20 percent penetration rate is

surprising and indicates a very large available market for

dealers who wish to help customers understand and improve

Wang Sept 08:Wang Sept 08 8/29/08 10:11 AM Page 10

their document output environment.

IDC’s research on customer buying

preferences indicates that more than 50

percent of small- and medium-sized

businesses and more than 60 percent of

large business are interested in tools

that manage and track access and usage

of devices. That is over half of the

market, yet only 20 percent of compa-

nies have installed software to monitor

devices. That means more than one-third of companies

today are interested in some type of device management

and have yet to adopt any tools or services.

Case in point: When analyzing the drivers for why cus-

tomers are currently buying workgroup laser printers and

workgroup laser MFPs, IDC research indicates that device

consolidation is one of the least important reasons for pur-

chasing equipment. Customers who do not know what is

going on in their environments will not know if there is a

problem that needs to be fixed.

In order to accurately understand client environments,

you need a software agent that can perform document

output assessment and monitor ongoing activity. Remote

device management and f leet management software

providers such as Print Audit, FMAudit, Netaphor, Software

Shelf, Equitrac, etc., have developed advanced device dis-

covery agents, data collection software, data repositories,

reporting analytics and access controls that can be deployed

by dealers to gain a critical understanding of a customer envi-

ronment. Traditionally, these software applications could be

licensed and hosted locally by dealers in order to maintain

total control of all customer information. This model caters

to the sensitive nature of customer information and concerns

with client retention. However, it is a legacy model that

enables higher data protection with increased management

costs, higher maintenance costs and increased complexity.

The future of remote device and fleet management soft-

ware licensing is in an ASP (Application Service Provider)

model. In many ways, the new model is merely an evolution of

existing processes similar to the move from selling hardware

to services. In today’s age of outsourcing in order to reduce

costs, software as a service has proven itself in many other

data-sensitive functions, such as customer relationship man-

agement (CRM) and accounting.

The hardware and IT management required for a locally

hosted solution dramatically increases the maintenance and

troubleshooting costs and delays and/or complicates the

process of getting the latest data and

software updates. New offerings such as

Facilities Manager from Print Audit use

a zero footprint installation model ,

allowing dealers to deploy scanning

remotely without expensive investments

in hardware that need to be constantly

updated and maintained. Software and

data updates are made in real time and

received immediately by the dealer

deploying the services, ensuring that the latest features and

models are available to the dealer as soon as they are pub-

licly available. More importantly, the overall costs are lower

as there are no up-front hardware investments. Licensing

fees are often lower due to cost savings for the service

provider. In an ever-increasing competitive pricing environ-

ment, every cent saved helps provide either additional

margin or pricing flexibility.

One key concern that has been voiced for quite some time

regarding ASP models is data integrity and security. Securing

client data is no longer optional for service providers. Compa-

nies like Salesforce.com have proven that the most sensitive

customer information (sales leads, status, proposals, con-

tracts and communication) can be stored online by a third

party without fear of loss or distribution. Software providers

know they must provide 100 percent secure data services or

face customer defection. The net benefit is positive for both

parties, offering reduced costs and improved ease of software

distribution for software providers and lowered licensing

costs and faster updates for dealers.

Once you have gained a clear understanding of your

client’s environment, you can chart your course by identi-

fying troubled waters. The investment of integrating your

software, expertise and time with your client’s environment

will result in the value add necessary to secure your business

during difficult times. The goals of each customer will be dif-

ferent, but in order for you to really help them, you must

move beyond a casual sales relationship and become a con-

sultant. Only then will you embed yourself into your client’s

business process, securing your relationship and providing a

lifeline in difficult times. �Jake G. Wang is responsible for research and

program development in the areas of usage of

imaging and output devices, including printers

and copier/MFPs at market research firm IDC.

He can be reached at [email protected].

Visit www.idc.com

In order to accuratelyunderstand client environments, you need a software agent that can perform documentoutput assessment andmonitor ongoing activity.


Wang Sept 08:Wang Sept 08 8/29/08 10:11 AM Page 11


by: Ben Russert, ProSource

The Software ArenaChoosing & providing the right solutions

While the role of the copier/MFP dealer has

evolved into a more comprehensive and cus-

tomer-focused document solutions

provider, so, too, has the need for technical

expertise and support beyond the box sales of

printers and copier/MFPs. The shift to new serv-

ices includes adopting and understanding new

technologies, including software that integrates

and automates document management.

Dealers today are faced with an over-

whelming array of electronic document man-

agement software options and suppliers. The

recommended approach is to judiciously select

a handful of software partners and assume a

level of expertise with their products.

As an industry leader in integrated document

technologies serving southwest Ohio, northern

Kentucky and eastern Indiana businesses for two

decades, ProSource has thoroughly explored the

software arena. In our efforts to be absolutely

committed to customer success, ProSource has

invested in building the software expertise needed to evaluate

and fulfill most clients’ document solutions needs.

Trusted PartnersProSource has chosen partnerships with software

vendors Captaris, Objectif Lune, Equitrac and Prism Soft-

ware. We have followed our own specific process in arriving

at this mix of document solutions, beginning with an assess-

ment of our customers, the local market and competition.

With a detailed survey, ProSource reviews software sup-

pliers (and our clients’ needs) in terms of brand awareness,

market share of products, channel programs and support.

To meet ProSource standards and deliver on our promise

of the TotalPro Experience, products must be feature-rich

and possess mindshare in the market space, as well as a

channel program that supports the dealer and

customers. An important vendor requirement is

support after the sale.

The Key to ImplementationOnce the software is chosen, then the battery of

technical training sessions necessary to help

ProSource engineers become experts with the new

products begins. ProSource also recommends

that the sales representatives and software sales

engineers become Certified Document Imaging

Architects and/or receive other high-level certifi-

cations to enable better product implementation.

Such supplemental training will assist engineers

in grasping the business process and workflow

unique to document and content management.

Additionally, this facilitates a transition to the “con-

sulting” space.

Implementing these software products for the cus-

tomer first requires sales representatives to seek out

and uncover opportunities. ProSource solutions consult-

ants then work with the sales representatives and customers to

architect, scope and help sell the solution. In the case of

ProSource, this creates the advantage of allowing 35 sales repre-

sentatives to look for solutions opportunities, rather than just a

handful of employees dedicated to document management.

Making it Work in TotalPro StyleGone are the days when the sales representatives tallied

monthly sales numbers solely based on how many machines

they sold. Now they must account for solution sales in their

monthly sales forecasts as well. The ProSource model sets

not only individual machine targets, but also solutions

targets for each sales representative. Commissions are then

based on attainment of those targets. Plus, they receive all

commission for the sale of any solutions deal.

Russert Sept 08:Russert Sept 08 8/29/08 10:29 AM Page 10

The software selection process has

proven beneficial for ProSource, as solu-

tion software has become a crucial

element in our TotalPro Experience

program and in our overall growth plan.

These services comprise optimal solu-

tions tailored to client needs that equally

leverage both hardware and software

solutions and are backed by dynamic

ProSource support teams and a 100-

percent customer satisfaction guarantee. This new sales

model has demonstrated to our customers that ProSource is

able to provide a single source for their document needs. It

has also proven to be a very good business decision.

In the past, machine sales gave ProSource just a portion of

our customers’ business, but in order to go “deep and wide”

and to be the preferred single-source document solutions

provider to our customers, ProSource has had to make this

migration to the complete document management model.

Every dollar gained in solution sales typi-

cally results in ten times that amount in

machine sales.

Document software solutions must be

included in every business discussion

going forward, because if we are not cur-

rently talking to our customers about

how we can fulfill their needs in that

arena, then our competitor probably is.

ProSource has experienced steady busi-

ness growth and the consistent receipt of prestigious

industry awards as evidence that our methodical software

selection and sales process is a sound success. �Ben Russert is president and owner of

ProSource. Founded in 1985, the dealership

has offices in Cincinnati and Dayton, Ohio.

He can be reached at

[email protected].

Visit www.totalprosource.com.

This new sales modelhas demonstrated to our customers thatProSource is able to provide a singlesource for their document needs.


Russert Sept 08:Russert Sept 08 8/29/08 10:29 AM Page 11

Agreements to restrict the disclosure of

certain types of information — often called

confidential disclosure agreements (CDAs)

or non-disclosure agreements (NDAs) — have

become common in business. Even before compa-

nies begin discussing opportunities to enter into a

business relationship, they generally execute some

form of confidentiality agreement. However, confi-

dentiality agreements often do not receive the attention they

deserve. As a result, state and federal courts in the United States

have been busy finding reasons not to enforce or to limit the

enforcement of many such agreements.

Because NDAs tend to be viewed as boilerplate documents,

many businesses simply find a generic agreement and stick with

it, regardless of the particular circumstances. Form agreements

may not be well drafted, which only serves to exacerbate the

enforceability issue. There are countless factors that should be

considered in preparing a confidentiality agreement to address

the variables that exist in any business situation. However, busi-

ness owners can start by focusing on several key questions.

� What information is to be protected? Defining the

information to be protected is fundamental to a well-crafted

NDA and an area where many form agreements fall short. For

example, some agreements specify a laundry list of informa-

tion, regardless of whether such information is actually confi-

dential (e.g. patents and trademarks are often included, but

neither can be confidential). Other NDAs may simply include

language specifying “information that is confidential and pro-

prietary to the disclosing party,” which creates ambiguity in the

interpretation of what is truly intended to be covered by the

agreement. The latter approach could require that the informa-

tion meet the definition of a trade secret, which might not be

the case for the type of information disclosed and, therefore,

could render the confidentiality agreement useless. By con-

trast, careful consideration of how confidential information is

defined can go a long way toward improving enforceability.

� Who is allowed access to the information? Many generic

confidentiality agreements simply restrict disclosure to third

parties. Some even allow disclosure to advisors and consultants

who are assisting with the transaction. These limited restrictions

may do little to protect a business in certain situations and may

create an exception to what information is to be

kept in confidence under the agreement. There-

fore, it is important to consider the practical and

legal consequences of all restrictive clauses.

Should the recipient of the information be able

to disclose to all employees of the company or just

those directly involved in the transaction at hand?

What about a third-party consultant? It may be

easier to limit unauthorized disclosure when fewer people have

access to the information. Third-party consultants, for example,

may not have an obligation of confidentiality to the disclosing

party just because of their relationship with the recipient of the

information. In fact, disclosure to third parties without an obli-

gation of confidentiality may place the information in the public

domain, thus rendering the confidentiality agreement unen-

forceable. Many agreements specifically set forth the names of

the individuals who may view the information.

� How long is the information to be kept in confidence?

Businesses often overlook the term of a confidentiality agree-

ment, but many courts focus on that detail in determining

enforceability. A number of jurisdictions view agreements

without a term limit as terminable at any time or terminable

within a reasonable period of time based on the circumstances.

Because neither of these results may be desirable, business

owners should carefully consider what term would be reason-

able for the type of information being disclosed. For example,

certain business data may only have a useful life of a year or two,

while the formula for manufacturing a product may qualify as a

trade secret and be protectible until such information is no

longer considered a trade secret. While there is no single right

answer for every type of information, setting appropriate term

limits may equate to greater enforceability.

These questions only scratch the surface of the many issues

that business owners should consider when crafting an effec-

tive and enforceable confidentiality agreement. If you are in

need of an NDA, BTA members can obtain a

template from which your specific require-

ments can be included. �Robert C. Goldberg is general counsel for the

Business Technology Association. He can be

reached at [email protected].

by: Robert C. Goldberg, General Counsel for the Business Technology Association

COURTS & CAPITOLS

Non-Disclosure AgreementsWill they protect your confidential information?


22OT0908:22OT0908 8/29/08 10:41 AM Page 26

EDUCATION CALENDAR

w w w . o f f i c e t e c h n o l o g y m a g . c o m | S e p t e m b e r 2 0 0 8 | 2 3

October23 “The Integrated Advertising Platform”

Free to BTA members, the October “Building My Business” webinar, “The Integrated Adver-tising Platform,” will be presented by Wes Phillips and Ian Crockett of Orange Label Art +Advertising. This webinar will share a unique approach to developing your dealership’s coremarketing message and how to create an easy-to-administer integrated advertising platform.

23-24 BTA Sales Management Workshop Waynesville, NCTaught by Tom Callinan and David Ramos of Strategy Development, this workshop will providedealership principals and sales managers at all levels a framework and tools so they can developtheir sales employees and drive new business and more “share of wallet” in current accounts.Registrants will receive free Oct. 24-25 BTA Southeast District event General Registration.

24-25 “Fall Colors Conference” Waynesville, NCHeld in scenic Waynesville, N.C., the annual BTA Southeast “Fall Colors Conference” isdesigned for office technology dealership principals, managers and sales reps who are lookingto further strengthen their dealerships. An opening reception will be held Friday evening. Sat-urday morning, three education sessions will be held. Attendees will also have the opportunityto attend an optional informal luncheon on Saturday featuring BTA President Ronelle Ingram.Saturday afternoon, attendees are welcome to enjoy the sights of the beautiful Waynesvillearea before attending a cocktail reception and dinner. To register, visit www.btasoutheast.org.

November 11 “A Business Model for Professional Services”

Free to BTA members, the November “Building My Business” webinar, “A Business Model forProfessional Services,” will be presented by Mitch Morgan of CEO Focus. This webinar willaddress the many questions dealers are asking about professional services and Morgan willdiscuss the eight critical factors for professional services success.

19-20 BTA ProFinance Las Vegas, NVBTA ProFinance instructors John Hanson and John Hey of Strategic Business Associates willhelp you understand the strategies required to become more client and employee focused —key strategies toward successfully growing your company, improving profitability and winningagainst the competition. ProFinance is designed for dealership owners and executive-levelstaff members who make the critical business decisions that impact their companies’ success.

For additional information or to register for courses or events, visit www.bta.org or call (800) 843-5059.

Calendar Page 2008:23OT0907 8/29/08 2:04 PM Page 25

MEMBERSHIP APPLICATION

PART IV – INVESTMENT Select one: � Payment Enclosed (Make check payable to Business Technology Association)

� MasterCard � Visa � American Express Annual BTA Dues: $

Card Number: Exp. Date: Card Holder’s Name:

I hereby apply for membership in Business Technology Association:

Signature: Date:

Return to: Business Technology Association, 12411 Wornall Road, Kansas City, MO 64145Phone: (800) 505-2821 � Fax: (816) 941-4838 � E-mail: [email protected] � Join online at www.bta.org

Membership dues must be submitted in U.S. funds. Dues paid to BTA do not qualify as a charitable tax deduction. Dues do qualify as a business expense.

Equipment/Products:� Audio/Video Presentation Equipment� Bar Coding Equipment� Binding Equipment/Supplies� Cash Registers/Points of Sale� Check Writing/Protection Equipment� Computers/Accessories/Supplies� Copiers (MFPs), B&W

Accessories/Parts/Supplies� Copiers (MFPs), Color

Accessories/Parts/Supplies� Duplicating Equipment/Parts/Supplies� Facsimile Equipment/Parts/Supplies� Filing Systems/Electronic Organizers� Furniture� Identification Systems/Labeling

Equipment

� Mailing/Shipping Equipment/Supplies� Networking Products/Services� OCR Scanners� Office Supplies� Paper Handling Equipment� Phone Answering Equipment� Power Protection� Printers, B&W

Accessories/Supplies� Printers, Color

Accessories/Supplies� Recycled/Remanufactured

Equipment/Supplies� Security Equipment/Systems� Shredders� Software Development/Sales/Support� Time Recording Equipment

� Typewriters/Accessories/Supplies� Other:

Services:� Circuit Board Repair� Consulting� Equipment Rental� Financing/Leasing� Insurance� Internet Solutions� Publishing� Service/Repair� Training/Education� Other:

PART III – MEMBERSHIP Categories and Classifications

PART II – PRODUCT INFORMATION Please indicate the products you sell or the services you provide (check all that apply):

PART I – COMPANY INFORMATIONCompany Name:Street Address: PO Box:City: State/Province: ZIP/Postal Code: Country:Phone: ( ) Fax: ( ) Web Address:Occasionally, BTA makes its member list available to companies who wish to present opportunities to our members.Can BTA include your e-mail address in the online BTA Membership Directory? � Yes � No

No. of locations (include parent): No. of employees (include owners):

Year business was established: Annual revenue: $

Contact Names:Principal Contact: Title: E-mail Address:Sales Contact: Title: E-mail Address:Service Contact: Title: E-mail Address:

Heard about BTA from/Referred by (name & company): Suppliers and vendors to BTA members may communicate with member dealers, indicating membership in and support of the association. Suppliers and vendors are prohibited from indi-cating or suggesting that BTA approves, supports, endorses or encourages its members to use the products or services being promoted or endorses the supplier or vendor of the product.


Retail Dealer Memberships:

� $430 1-10 Locations (1 year)

� $795 1-10 Locations (2 years)

� $885 11+ Locations (1 year)

Vendor Associate Memberships

� $1,500 Annual Sales up to $5 million

� $2,000 Annual Sales $5-$10 million

� $2,500 Annual Sales over $10 million

Service Associate Memberships

� $500 Annual Sales up to $1 million

� $750 Annual Sales $1-$5 million

� $950 Annual Sales over $5 million

Publications Associate Membership: � $150Dealers savewith two-yearmembership!

OEM Authorizations:

Member App 2008:Member App 2008 9/2/08 1:29 PM Page 25

BTA HIGHLIGHTS


The following new members joined BTA during themonth of July:

Dealer MembersDirect Office Solutions, Tempe, AZ

Image One Corp., Oak Park, MI

Insight Systems Exchange, Garden Grove, CA

Metro Sales Inc., Minneapolis, MN

One Stop Business Centers Inc., Burlington, MA

Star Graphics Inc., Beaumont, TX

Service Associate MembersSoundview Business Solutions Inc., Northport, NY

For full contact information of these new members,visit www.bta.org and click on “BTA HotlineOnline” on the home page before Nov. 1.

BTA ProFinanceBTA’s ProFinance in-

structors, John Hey and John Hanson of StrategicBusiness Associates, will teach you the financialterms and relationships that helped them makethe decisions that grew D.C. Hey Co. from a $5million to a $150 million business. In addition tohelping you implement the Hanson/Hey Modelin your company, they will help you understandthe strategies required to become more clientand employee focused — key strategies towardsuccessfully growing your company, improvingprofitability and winning against the competition.

ProFinance is designed for owners andexecutive-level staff who make the critical busi-ness decisions that impact your company's suc-cess. To date there have been 422 BTA mem-bers who have attended ProFinance. To register,visit www.bta.org and click on “Education &Certification” and then “ProFinance.”

For the benefit of its dealer members, eachmonth, BTA profiles two of its Vendor or ServiceAssociate members in this space.

BTA Vendor Associate mem -ber Computhink provides best-in-class ECM/document management solutions for secureinformation sharing and compliance, targetingsmall- and medium-sized organizations. TheViewWise Product line includes e-mail archivingsolutions for Microsoft Exchange and NovellGroupWise. Founded in 1994, Computhink hasthousands of worldwide customers in govern-ment, financial services, education, healthcare,manufacturing and utility organizations. Formore information on Computhink and its prod-ucts, go to www.computhink.com.

www.computhink.com

BTA Service Associate mem-ber Pyramid Screening Tech-nology Inc. can provide a pipe-

line of qualified and well-screened applicantsbased on a dealership's specific criteria. Thefirm accomplishes this by using its proprietarysearch technology to mine the Internet for bothpassive and active applicants. It mines network-ing sites, search engines, user groups, forums,job board databanks (including postings to mul-tiple job boards, such as Monster.com) and itsproprietary national database of sales reps andservice techs used exclusively for PyramidST cus-tomers. Applicants who emerge through themining process complete an online question-naire, which screens them in order to fit thedealership's criteria.

www.pyramidst.com

A full list of BTA Vendor and Service Associate members can be found online at www.bta.org.

Member Page 2008:Member Page 2008 8/29/08 12:43 PM

Do you wish you could get better consistency from your

sales team members? Do you think they could work

harder or smarter? Are their actual sales often well

below their forecasts? If you have answered “yes” to any or all

of these questions, you are not alone. So, how do you correct

these issues?

One of the basic principles of the Hubbard Management

System states: “Look, Don’t Listen.” Too often, dealer owners

and sales managers do not take the time to meet with sales

representatives to really “see” what they are doing. They simply

listen to what the reps “say” they are doing. As a result, the

reps do not get the coaching they need to improve or the

direction they need to make the most of their time. The best

strategy for truly looking at what your sales reps are doing is to

have a weekly one-on-one meeting with each rep. This article

is dedicated to outlining a plan for these one-on-one meetings.

The purpose for conducting a one-on-one meeting with

each rep every week is to get an understanding of what he (or

she) is doing, allow for coaching and direction, review his

pending business, build strategies for closing deals and plan

out the coming week. The sales rep should come to the

meeting prepared to discuss his activities from the past week,

his full pipeline of business and his plans for the coming week.

Review of Last Week’s ActivityThe first reason for tracking and reviewing activity is to

make sure that the rep is doing a viable amount of sales

activity. Too often, sales reps do not have enough activity to

survive. If they are not getting in front of enough prospects

and customers, then they will never succeed, no matter how

good they are. There is a make-or-break point here.

The second reason for tracking and reviewing activity is to

use the results to redirect the sales rep’s attention and activi-

ties to produce more success. For example, if a sales rep gets

poor results from telephone cold calls but tremendous results

from in-person cold calls, you should be able to document and

illustrate this from his reports. Once it is understood, you can

direct him to increase his in-person cold-calling and/or get

him additional telephone training to improve his telephone

success rate.

� Review weekly activity report — The rep should bring a

report with him showing his activities for the past week. This

report should show the quantity of types of activity. The initial

goal is to have each rep meeting or exceeding his activity

quotas and documenting all activities.

� Review the report for accuracy — The sales manager

should go through the activity report and verify its accuracy by

spot-checking it against the rep’s calendar. If the report and

calendar do not match, you need to figure out why. Is the rep

simply forgetting to put all activities on the calendar? Is he fal-

sifying the report? Are there database sync problems? Once

the inconsistency is diagnosed, it can be handled.

� Analyze the activity and coach the rep — Simply

reviewing the rep’s activity is not enough. The sales manager

should be analyzing the activity to see if the rep is getting a good

One on OneA weekly meeting with each rep is important

by: Jim Kahrs, Prosperity Plus Management Consulting Inc.

SELLING SOLUTIONS


Kahrs Sept 08:Kahrs Sept 08 8/29/08 2:12 PM

Sales Management ad:Layout 1 8/28/08 9:01 AM Page 1

balance of activity and if his ratios of

activity are acceptable. For example, if the

team averages one appointment for every

20 telemarketing calls and one rep needs

40 calls to get an appointment, the ratio is

out of whack. The sales manager needs to

dig in and find out why the rep is so far

behind the others and provide coaching

and training to improve. This holds true

for all activities.

� Look for overdue and undone items on the calendar

— One area where reps often struggle is keeping up with calls

on their calendars. When reps schedule calls for themselves in

the future, they often do not make the time to complete them.

This can lead to a large backlog of incomplete calls. If a rep is

falling into this habit, the sales manager must pull them out.

Once a backlog of calls starts, it is very difficult to dig out of it.

There can be some great prospects buried in the backlogged

calls that are being missed. If this happens, you have lost the

true benefit of the CRM software.

Review of the Weekly Sales Recap & Battle Plan� Review the rep’s written business month to date —

The first step of this section of the meeting is to have the rep

review the business he has written and turned in already that

month. This is important, as it can really set the stage for the

rest of the meeting and the rest of the month.

� Review the rep’s “Take it to the Bank” forecast — In

this section of the meeting, the sales manager is looking for

the sales rep to give a forecast that can be banked on coming

in before the end of the month. This forces the rep to focus on

the key deals that are closeable now. When the rep enters a

number for a “Take it to the Bank” forecast, the sales manager

must go through each deal that is included and strategize with

the rep.

� Review each of the pending key deals — This section of

the form asks the rep to list each of his key deals that are

pending. Everything from the “Take it to the Bank” forecast

should be here. There can also be other key deals listed. The

purpose of reviewing these is to gauge where the rep is with

each deal, offer coaching for closing the deals and to schedule

other needed resources, like sales manager or owner visits

with these accounts. The sales manager needs to review and

be comfortable with the next step for each key deal pending.

� Review and add to the battle plan — In this section of

the meeting, the sales manager and sales rep should outline the

major actions that need to take place in the coming week. The

manager should also go back to last week’s recap and make sure

that the battle plan items were completed.

� Review the rep’s full forecast —

After reviewing the key deals and setting

up the basic battle plan for the week, the

sales manager should briefly review the

rep’s full forecast. To do this, the manager

simply goes through the forecast and asks

questions about the deals listed to find out

where things stand and to see if any help is

needed. The sales manager can often find

deals in the forecast that can be brought to the forefront and

closed quickly.

Review the Rep’s Plan for the Coming Week� Review the rep’s appointments for the coming week

— The sales manager should look at the appointments for the

coming week. This will allow for a discussion and planning for

each. This review also allows the manager to determine if

other people may be needed for any of the appointments.

� Review the rep’s prospecting plans for the coming

week — Reps will very often go into prospecting without a

well-thought-out plan. If the rep plans to do in-person cold-

calling, find out where. Do not accept vague answers like a

town name. Ask for specifics — what street, what industrial

park, etc. If the rep has plans for telemarketing, make sure he

has a planned call list.

� Find out if the rep needs help with anything — Before

concluding the meeting, the sales manager should ask the rep

if there is anything else he needs help with. It is pretty

common for reps to want help but not ask for it. By asking, you

can get him to share his needs and frustrations, allowing you

to deal with them.

If you commit to doing these meetings every week, you will

quickly understand what is being done in the sales department

and what needs to be done. You will have a clear understanding

of the true strengths and weaknesses of each rep and you will

have a much better handle on what business will be coming in

and be able to get the best resources in action for each deal.

Chances are your sales department will never be the same

again. If you have questions on this plan, feel free to call or e-

mail me at the address below. Good luck and good selling. �Jim Kahrs is the founder and president of Prosperity Plus

Management Consulting Inc. PPMC works

with office technology companies in

building revenue and profitability. Kahrs can

be reached at [email protected]

or (631) 382-7762.

Visit www.prosperityplus.com.

If you commit to doingthese meetings everyweek, you will quicklyunderstand what isbeing done in the salesdepartment and whatneeds to be done.


Kahrs Sept 08:Kahrs Sept 08 9/2/08 1:30 PM Page 27

In last month’s article, I noted that there

are four key areas that, when taken

together, give you a conceptual frame-

work to assess your key account opportuni-

ties. In the August issue, I addressed two

areas — business needs and buying

processes, and buying profile factors. In this

article, we will look at competitive factors

and the investment decision, along with the

critical questions you need to answer.

Competitive Assessment CriteriaIn the competitive assessment, we look at your competitors,

their account positions and how they will influence your com-

petitive strategy.

There are four competitor factors: competitor relationship,

competitor product satisfaction, competitor advocates and

competitor presence.

In the competitor relationship, we must assess the strength

of the customer’s relationship with our competitors. Factors

include: the length of the relationship, the competitor’s under-

standing of the customer’s needs and personal relationships.

You can rate these factors as being weak, moderate or

strong. A weak relationship means there are no strong contact

advocates and the customer does not hold the relationship in

high regard. A moderate relationship means there is a good

relationship in place with some strong contacts. A strong

rating means the relationship is highly valued, there is a history

of long-term successes and strong contacts are in place.

In competitive selling, you must focus on two key areas and

answer the following questions: What is your strategy to

create competitive advantage in the mind of the customer?

And, can you accurately anticipate and counter the com-

petitor’s response to your sales efforts?

The competitor product satisfaction factor is the opposite

side of the coin from the competitor relationship. Here you

assess the strength of the customer’s satisfaction with your

competitor’s products and services. The questions you need to

answer are: Has the customer achieved the results they were

planning on? Are there problems and issues? Does the compe-

tition have the capacity to meet the customer’s current and

future needs?

In the August issue, I discussed the

advantage of having a power advocate

(PA). It is helpful, but not necessarily a

requirement for success. But what if there

was a competitive power advocate (CPA)

in place? That is, a power advocate who is

actively working for the competition. A

critical measure of potential success is the

presence (or not) of a power advocate for a

competitor. Lack of one indicates an opportunity to develop

an advantage with your own PA. A CPA requires strategies to

turn or neutralize the CPA advantage.

Here are two questions that you need to answer: Can you

develop your own PA at a higher level than your competitor?

Or, can you develop a PA on the same level as the CPA that will

neutralize the advantage?

When we address competitor presence, we are assessing

how active the competition is in your account as an indicator

of your potential to win quickly with reasonable resources

expended. Is the competition inactive? Are they actively com-

peting for the account? Or, is the competition aggressively

pursuing the business and determined to win?

Warning: While lack of competitive presence may seem like

a “golden opportunity,” consider this to be a potential warning

sign of an unqualified opportunity or one in which the supplier

has already been decided.

The Investment DecisionOur fourth assessment area is the investment assessment.

That is, can you win? There are two criteria you need to

address: time and resources. Do the time and resources neces-

sary to successfully close this opportunity represent a viable

investment of time, money, personnel or company resources?

You should look at this situation from the perspective of a “yes,”

“unsure” or “no” answer. If the response is “yes,” then it is a worth-

while investment. If you are “unsure” at this time, then you need

to go back and look at the criteria again to see where you can

shore up your position and improve your potential for success. If

your answer is “no,” then you should move on and pursue other

opportunities that offer you a higher probability of winning.

Key Account OpportunitiesLook at competitive factors & the investment decision

by: Tom Kramer, CATALYST Performance Learning


SELLING SOLUTIONS

When we address competitor presence, we are assessing howactive the competition is in your account as an indicator of your potential to win quickly ...

Kramer Sept 08:Kramer Sept 08 8/29/08 2:24 PM Page 26

The Assessment Criteria ReviewHere is a brief review of the key account

assessment criteria that I have covered:

� Business Needs & Buying Processes

— Why and how customers buy

a. Stated and unstated needs

b. Business goals and issues

c. The decision process

� Buying Profile Factors — The cus-

tomer’s company and how it operates

a. Corporate motive

b. Capacity for change

c. Relationship

d. Satisfaction capacity

e. Power advocate

f. Value perception

� Competitive Assessment Criteria — the competitor’s

position

a. Competitor relationship

b. Degree of product satisfaction

c. Presence or absence of a competitor power advocate

d. Competitor presence

� The Investment Decision — the “go/no go” decision

a. Yes

b. Unsure

c. No

Self-CoachingIn this month’s and August’s article, I presented critical

selling, planning and account knowledge criteria necessary

for success in major accounts, along with

the critical questions you need to answer

before you invest your time and effort.

Finally, here are five self-assessment ques-

tions you should ask yourself: Which cri-

teria do you give yourself a high rating on?

How can you maximize your strengths to

create more sales or greater competitive

leverage? Which low-scoring items do you

think are most critical and what is your

improvement strategy? Do you think your strengths and

weaknesses apply to all or the majority of your accounts?

Why? What is your strategy for gathering the customer and

competitive information you need to be successful?

Managing key account business requires different selling skills

and more comprehensive strategies. Successful sales representa-

tives employ a 360-degree approach to assess their chances of

success and develop strategies that outthink and outmaneuver

their competitors. Following this conceptual framework will help

you develop winning account strategies, address your weaknesses

before they become irreversible problems and help you focus

your time, effort and resources on high-gain opportunities. �Tom Kramer is an affiliate partner of CATALYST

Performance Learning ( formerly Strategy Mapping Selling).

He has more than 30 years of sales, sales

management and marketing experience with

IBM, Eastman Kodak Co. and Canon U.S.A. Inc.

He can be reached at

[email protected].

Visit www.catalyst2performance.com.


Successful sales representatives employa 360-degree approachto assess their chancesof success and developstrategies that outthink... their competitors.

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Kramer Sept 08:Kramer Sept 08 8/29/08 2:24 PM Page 27

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31OT0107 12/18/06 2:51 PM Page 1

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