{"id":56615,"date":"2023-08-30T03:50:11","date_gmt":"2023-08-30T10:50:11","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=56615"},"modified":"2023-09-01T10:16:55","modified_gmt":"2023-09-01T17:16:55","slug":"peer-groups-data-and-shared-experiences-enable-dealers-to-adapt-not-die","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/state-of-the-industry\/2023\/08\/peer-groups-data-and-shared-experiences-enable-dealers-to-adapt-not-die\/","title":{"rendered":"Peer Groups: Data and Shared Experiences Enable Dealers to Adapt, Not Die"},"content":{"rendered":"\n
There\u2019s a memorable scene from the film \u201cMoneyball,\u201d which at its core is a movie that chronicles baseball\u2019s collision course of relying on analytics vs. experience and old-fashioned intuition to assess and select talented players. The scene features head scout Grady Fuson admonishing general manager Billy Beane for \u201cdiscounting what scouts have done for 150 years, even yourself\u201d by heeding the advice of a statistical savant he\u2019d recently hired over Fuson\u2019s staff of grizzled professional scouts.<\/p>\n\n\n\n
To which Beane (portrayed by Brad Pitt) blurts out the three-word phrase synonymous with success in business: \u201cAdapt or die.\u201d<\/p>\n\n\n\n
More than 20 years after the fictitious lines were uttered (this is Hollywood, after all), the Oakland A\u2019s\u2014the team led by Beane at the time\u2014have yet to chalk up a World Series title while employing analytics to develop and shape their roster. In fact, the A\u2019s have the worst record in baseball this year and are teetering on relocating to Las Vegas. But we digress. While the premise of the movie (and the concept) may be flawed, there\u2019s no denying that the office technology dealer world can benefit from employing analytics and experience\/intuition in equal measures to craft a successful business plan.<\/p>\n\n\n\n
Mind you, the A\u2019s haven\u2019t failed because they\u2019ve relied solely on what the numbers told them. They still employ scouts and traditional assessments. The issue is multifaceted; there are simply too many variables that come into play. In our world, it\u2019s incumbent upon dealers to weigh as many elements into their strategy as possible: geography, OEM vendors, product mix and diversification, competition from directs\/independents\/capital-backed consolidators, willingness to invest, strength of sales\/service components, company culture and ownership\u2019s attitude toward growth and expansion.<\/p>\n\n\n\n
And while we\u2019re not looking to crown a champion, it\u2019s interesting to note how two dealers that are fundamentally alike in many aspects (size, scope, product catalog) can often experience contrasting results. How do we bridge the gap between the two? One step is to hire a consultant. Another avenue, which is the focus of our State of the Industry report, is to join an industry peer group.<\/p>\n\n\n\n
The benefits of industry organizations have long been acknowledged. Peer-to-peer interactions and the requisite sharing of statistical performances (including benchmarking) and ideas\/strategies are vital to uplifting the performances of all members. Analytics are only as important as the details behind them, and only through discovering how and why these numbers are attained can an action plan be launched to catapult your stats in line with industry standards. Beyond the numbers, peer groups offer relationships, networking opportunities for business and the power of group thinking to yield tips, suggestions and pitfalls to avoid\u2014all without the concern of sharing information among a member\u2019s competitors.<\/p>\n\n\n\n
Walking the Walk<\/strong><\/p>\n\n\n\n
Chelsey Bode is a huge supporter of industry consultants and their propensity to roadmap plans and strategies, particularly when it comes to taking on adjacent offerings and opportunities. In most instances, the only thing they lack is real-world experience, and that\u2019s where being a member of the Copier Dealers Association (CDA) has proven most fruitful for the CEO of Pearson-Kelly Technology (PKT) of Springfield, Missouri.<\/p>\n\n\n\n
Bode equates the experience to a therapy group. After all, the members are building relationships and trust with individuals who are encountering many of the same hurdles. Being surrounded by like-minded people with similar goals is inspirational to her. That was important when PKT was first embarking on its IT division, as Bode was able to pick the brains of executives who had been entrenched in the offering for five to ten years. She plays a similar advisory role for fellow dealers weighing the same decision.<\/p>\n\n\n\n
\u201cIf a dealer is sun-setting as an owner and asking if they need to get into IT, that\u2019s not a good idea,\u201d she offered. \u201cIf you\u2019re trying to get out of the business in the next several years, you don\u2019t want to make that type of investment because it\u2019s a long game. It\u2019s great to get ideas and information out of the group, and you have to pay it forward whenever you can.\u201d<\/p>\n\n\n\n
It\u2019s great to get ideas and information out of the group, and you have to pay it forward whenever you can.<\/p>\u2013 Chelsey Bode, Pearson-Kelly Technology<\/cite><\/blockquote>\n\n\n\n
Bode identified CDA as an optimal fit for her because she\u2019d been exposed to many of the member companies through dealer meetings with Konica Minolta and Kyocera. CDA boasted executives who were 10-15 years her senior and touted impressive track records with accomplishments she sought to emulate. She liked the mixture in dealer sizes and could relate with many who were involved in similar offerings.<\/p>\n\n\n\n
Content is king with CDA, and Bode applauds the group for amassing quality thought leadership discussions. Forging relationships has paid dividends in the creation of subgroups for CFOs, service directors and marketing directors. One such spinoff is the Managed Technology Association (MTA), a group created for members offering managed IT, complete with its own benchmarking and agenda.<\/p>\n\n\n\n
\u201cSince it\u2019s not relevant to the whole group, it was difficult for us to have deep content that was meaningful to the entire CDA,\u201d she said. \u201cMTA has CDA members and pure-play managed service providers that aren\u2019t CDA members. They bring a totally different perspective to our group, and we offer a different perspective to their world.\u201d<\/p>\n\n\n\n
It\u2019s a solid tradeoff. The managed IT specialists often struggle with marketing and sales, Bode says, areas where CDA members can provide guidance. Conversely, their IT proficiency in technical abilities and operations brings more to the table for CDA members within the MTA.<\/p>\n\n\n\n
\u201cWe\u2019re strong as a group when it comes to marketing and sales processes, but sometimes that technical ability, or hiring the wrong person without fully understanding some of the technical aspects of IT services, has been a bigger challenge,\u201d she noted. \u201cSo cross-pollinating some of those strengths and weaknesses has been the goal, and it\u2019s been really positive so far.\u201d<\/p>\n\n\n\n
Learning Curve<\/strong><\/p>\n\n\n\n
For 25 years, Dan Strull was accustomed to \u201cthe Xerox way.\u201d He was a Xerox rep right out of college and would later take the helm of a Xerox agency for 15 years. From the cache that came with the name to the support the venerable OEM offered and the all-things-Xerox sitting in his product showroom, Strull was taught that Xerox was the only game in town. In his world, that held true.<\/p>\n\n\n\n
Dan Strull, GoodSuite<\/figcaption><\/figure><\/div>\n\n\n\n
Thus, when Strull set out on his own, the CEO of Woodland Hills, California-based GoodSuite found himself at square one. He needed to learn more about the dealer world that existed outside of Xerox. He absorbed as much information as possible from industry publications and decided to join a peer group\u2014two, in fact: the PRO Dealer Group and the Business Products Council Association (he left the latter after acquiring a company within a fellow member\u2019s territory\u2014which most peer groups stipulate). Mission accomplished.<\/p>\n\n\n\n
The benefits were almost immediate. \u201cI learned that it was really important to be profitable on the service side, more so than making money on the initial transaction,\u201d he said. \u201cBefore, Xerox set the pricing and we didn\u2019t look at margins. So a lot of that stuff was new to me.\u201d<\/p>\n\n\n\n
Ever since I joined the groups, I find I\u2019m working on the business now instead of working in the business. I used to be a cold-calling salesman, but now I\u2019m a CEO\u2014a true CEO.<\/p>\u2013 Dan Strull, GoodSuite<\/cite><\/blockquote>\n\n\n\n
It was during his initial exposure to peer groups that he learned the value of the Johnson-Hey financial modeling\u2014a.k.a., Todd Johnson and John Hey of Strategic Business Associates. The first few models led to some unpleasant discoveries as well as some positive metrics. Strull quickly worked to address his shortcomings.<\/p>\n\n\n\n
\u201cWe\u2019re more profitable now, and we\u2019re growing with happy clients,\u201d he said. \u201cEver since I joined the groups, I find I\u2019m working on the business now instead of working in the business. I used to be a cold-calling salesman, but now I\u2019m a CEO\u2014a true CEO.\u201d<\/p>\n\n\n\n
Corporate culture was another aspect of the business in which Strull found prime models among and outside of membership, including Knight Office Solutions, Smart Document Solutions and The Office People. Fellow exec Sean Mummert of The Office People impressed Strull with the philosophy of ensuring that employees feel equally as valued as clients. Strull parted with problematic clients, some of which came via acquisitions, because they disrupted the employee harmony he wanted to foster.<\/p>\n\n\n\n
\u201cWe\u2019ve always had this philosophy that happy people who enjoy their work will perform better and longer for you,\u201d Strull said. \u201cYou need to remove the roadblocks and obstacles, even when it\u2019s bad clients.\u201d<\/p>\n\n\n\n
Although he touts a degree from USC\u2019s Marshall School of Business, he\u2019s found there\u2019s no substitute for gleaning tips and tricks from people who\u2019ve been down his road. \u201cI\u2019ve learned way more from the people in the industry, the peer groups, the BTA conferences and dealer trips,\u201d he said. \u201cThat\u2019s when you really go to business school.\u201d<\/p>\n\n\n\n
Frankly Speaking<\/strong><\/p>\n\n\n\n
An industry peer group is most impactful when members are willing to share at a meaningful level. That\u2019s what\u2019s impressed Joe Blatchford the most about the American Co-op Group. The CEO of Image 2000 in Valencia, California, values the intimate size of the group and the quality\/rich variety of the presentations that vendors, OEMs and other industry providers furnish. But there\u2019s no substitute for the granular perspective and frank discussions offered by fellow members\u2014that\u2019s when the time, money and effort involved in joining any organization pays true dividends.<\/p>\n\n\n\n
Joe Blatchford, Image 2000<\/figcaption><\/figure><\/div>\n\n\n\n
American Co-op certainly fits that description. Over the years, significant industry luminaries ranging from Marco\u2019s Jeff Gau to Centric Business Systems\u2019 Rick Bastinelli were willing to offer in-depth perspective into a vast array of subjects, shattering assumptions of high-performing executives preferring a more judicious approach to information sharing. They\u2019ve also welcomed members into their facilities for a behind-the-scenes look at how they operate.<\/p>\n\n\n\n
It\u2019s not just a forum guided by the industry\u2019s elite; execs representing $5 million businesses can (and do) add hot takes on how they handle various challenges while offering creative solutions for both common and infrequent scenarios. If you plan on joining, he said, be prepared to contribute.<\/p>\n\n\n\n
These groups are especially beneficial in an environment where a lot of businesses are being bought out. There are a lot of discussions around that and topics such as internal fraud.<\/p>\u2013 Joe Blatchford, Image 2000<\/cite><\/blockquote>\n\n\n\n
\u201cNo one way to do things is the right way,\u201d Blatchford noted. \u201cHaving a wide variety of ideas was especially important during the pandemic. People wanted to know \u2018what are you doing, are you still billing, and how are you handling it?\u2019 It\u2019s great to have these questions answered by the group, because no one wants to reinvent the wheel.\u201d<\/p>\n\n\n\n
Blatchford recommends identifying a group that has a dealer member size similar to your own to avoid being an island, although he points out American Co-op has rich representation among SMBs and larger dealers. That variety of presenters should also factor into an exec\u2019s decision to join, as having the same OEM or leasing company presenting at every meeting can grow stagnant.<\/p>\n\n\n\n
\u201cHaving these destination meetings are also worthwhile,\u201d Blatchford said of American Co-op, which recently held its getaway meeting in St. Lucia. \u201cThese groups are especially beneficial in an environment where a lot of businesses are being bought out. There are a lot of discussions around that and topics such as internal fraud.\u201d<\/p>\n\n\n\n
When breaking news impacts the industry\u2014such as the banning of Ninestar imports from regions of China where slave labor charges have been levied by the Department of Homeland Security\u2014the topics are addressed immediately through email discussions and surveys. Members can also randomly ask for opinions on vendors and diversification opportunities. Responses are collected and provided as a report for all members.<\/p>\n\n\n\n
\u201cI don\u2019t care how big your company is. You can learn something from dealers big and small,\u201d Blatchford added.<\/p>\n\n\n\n
Other Intangibles<\/strong><\/p>\n\n\n\n
Many of the industry\u2019s peer groups set a cap for the number of members. Thus, when the prospect of joining the Independent Copier Dealer Alliance (ICDA) presented itself, Jim George\u2014president of Cincinnati-based Donnellon McCarthy Enterprises\u2014found an ideal match. Not only did the ICDA have a small, tight-knit group, it also offered a strong range of companies that fell within DME\u2019s sales volume range.<\/p>\n\n\n\n
\u201cWhen you have really large or really small dealers, chances are you\u2019re not even speaking the same language,\u201d George said of the relatability variable. \u201cThat was one of the bigger considerations pertaining to this group.\u201d<\/p>\n\n\n\n
Jim George, Donnellon McCarthy Enterprises<\/figcaption><\/figure><\/div>\n\n\n\n
DME is a multi-group dealer, also having membership with the PRO Dealer Group, of which CEO Jim Donnellon was one of the original participants. In terms of the ICDA, George is a huge fan of the financial surveys it conducts and the analytics that provide a snapshot of where each member stands within the group. Still, many of the best ideas he\u2019s gleaned have originated from free-wheeling conversations among members, addressing everything from new product lines to different flavors of software.<\/p>\n\n\n\n
In addition to the camaraderie that serves to widen a member\u2019s industry perspective and allow the sharing of common challenges\/pain points, membership also opens the door to business opportunities on various fronts. George can call a fellow member in another region to help with a delivery for a client with locations throughout the country, and DME can provide the same service. In fact, George notes this is done on a fairly regular basis.<\/p>\n\n\n\n
I\u2019ve also been able to help several members and provide insight on acquisitions they\u2019re working on. There\u2019s a lot of collaborative work behind the scenes.<\/p>\u2013 Jim George, Donnellon McCarthy Enterprises<\/cite><\/blockquote>\n\n\n\n
Fellow members can also act as the eyes and ears for their peer group amigos whenever an opportunity to buy or sell a business presents itself. George notes that ICDA comrades are aware of DME\u2019s desire to expand its business into other states and often provide him with a heads-up when they learn about a dealer principal who\u2019s seeking an exit from the business.<\/p>\n\n\n\n
\u201cIt\u2019s a great opportunity to at least have a shot at someone looking to check out of the business and have a conversation with them,\u201d George noted. \u201cI\u2019ve also been able to help several members and provide insight on acquisitions they\u2019re working on. There\u2019s a lot of collaborative work behind the scenes.\u201d<\/p>\n\n\n\n
The Pitch<\/strong><\/p>\n\n\n\n
It started innocently enough for Carter Hertzberg. The president of Nauticon Office Solutions of Gaithersburg, Maryland, was enjoying a drink alongside Kevin Heitritter of Innovative Document Solutions following a GreatAmerica Financial Services dealer council meeting about 10 years ago. Heitritter asked Hertzberg if he was interested in joining an organization called the Select Dealer Group. Ever the cynic, Hertzberg retorted something to the effect of \u201cwhat are you trying to sell me?\u201d One elevator pitch later, Hertzberg was hooked, and he applied for membership not long after returning to his office.<\/p>\n\n\n\n
Carter Hertzberg, Nauticon Office Solutions<\/figcaption><\/figure><\/div>\n\n\n\n
\u201cThis is a welcoming group with a diverse set of dealers,\u201d he explained. \u201cWe wanted to interact with a wide range of company sizes\u2014revenues and employees\u2014as well as dealers with different perspectives on alternative business lines and revenue sources. We\u2019re very happy having made the choice to join SDG.\u201d<\/p>\n\n\n\n
The friendships and trusts Hertzberg has solidified are priceless. The granular approach to the business meetings, with working groups dedicated to sales, service and HR, have provided a trickle-down benefit for Nauticon\u2019s departmental leadership as well.<\/p>\n\n\n\n
\u201cBeing the leader of an organization can be somewhat lonely at times, but knowing that good friends with similar experiences are only a phone call away can be a very encouraging thought in those lonely moments,\u201d he noted. \u201cFrankly, I don\u2019t know where we would turn with certain questions and issues without these support networks.\u201d<\/p>\n\n\n\n
Hertzberg finds the benchmarking function to be a \u201cfantastic tool\u201d to gauge his company\u2019s performance across the aforementioned disciplines as well as managed IT. While he feels most dealer executives are reasonably attuned to their financial performance, benchmarking adds a validation or can quantify the areas in which a dealer is underperforming.<\/p>\n\n\n\n
Being the leader of an organization can be somewhat lonely at times, but knowing that good friends with similar experiences are only a phone call away can be a very encouraging thought in those lonely moments.<\/p>\u2013 Carter Hertzberg, Nauticon Office Solutions<\/cite><\/blockquote>\n\n\n\n
\u201cOne of the great benefits of the peer group benchmarking is that it draws in a very deep and wide group of independent dealers,\u201d he said. \u201cIt\u2019s not just limited to the group that your company joined but rather incorporates data from multiple groups.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"
There\u2019s a memorable scene from the film \u201cMoneyball,\u201d which at its core is a movie that chronicles baseball\u2019s collision course of relying on analytics vs. experience and old-fashioned intuition to assess and select talented players. The scene features head scout Grady Fuson admonishing general manager Billy Beane for \u201cdiscounting what scouts have done for 150 years, even yourself\u201d by heeding the advice of a statistical savant he\u2019d recently hired over Fuson\u2019s staff of grizzled professional scouts. To which Beane (portrayed by Brad Pitt) blurts out the three-word phrase synonymous with success in business: \u201cAdapt or die.\u201d More than 20 years after the fictitious lines were uttered (this is Hollywood, after all), the Oakland A\u2019s\u2014the team led by Beane at the time\u2014have yet to chalk up a World Series title while employing analytics to develop and shape their roster. In fact, the A\u2019s have the worst record in baseball this year and are teetering on relocating to Las Vegas. But we digress. While the premise of the movie (and the concept) may be flawed, there\u2019s no denying that the office technology dealer world can benefit from employing analytics and experience\/intuition in equal measures to craft a successful business plan. Mind you, the A\u2019s haven\u2019t failed because they\u2019ve relied solely on what the numbers told them. They still employ scouts and traditional assessments. The issue is multifaceted; there are simply too many variables that come into play. In our world, it\u2019s incumbent upon dealers to weigh as many elements into their strategy as possible: geography, OEM vendors, product mix and diversification, competition from directs\/independents\/capital-backed consolidators, willingness to invest, strength of sales\/service components, company culture and ownership\u2019s attitude toward growth and expansion. And while we\u2019re not looking to crown a champion, it\u2019s interesting to note how two dealers that are fundamentally alike in many aspects (size, scope, product catalog) can often experience contrasting results. How do we bridge the gap between the two? One step is to hire a consultant. Another avenue, which is the focus of our State of the Industry report, is to join an industry peer group. The benefits of industry organizations have long been acknowledged. Peer-to-peer interactions and the requisite sharing of statistical performances (including benchmarking) and ideas\/strategies are vital to uplifting the performances of all members. Analytics are only as important as the details behind them, and only through discovering how and why these numbers are attained can an action plan be launched to catapult your stats in line with industry standards. Beyond the numbers, peer groups offer relationships, networking opportunities for business and the power of group thinking to yield tips, suggestions and pitfalls to avoid\u2014all without the concern of sharing information among a member\u2019s competitors. Walking the Walk Chelsey Bode is a huge supporter of industry consultants and their propensity to roadmap plans and strategies, particularly when it comes to taking on adjacent offerings and opportunities. In most instances, the only thing they lack is real-world experience, and that\u2019s where being a member of the Copier Dealers Association (CDA) has proven most fruitful for the CEO of Pearson-Kelly Technology (PKT) of Springfield, Missouri. Bode equates the experience to a therapy group. After all, the members are building relationships and trust with individuals who are encountering many of the same hurdles. Being surrounded by like-minded people with similar goals is inspirational to her. That was important when PKT was first embarking on its IT division, as Bode was able to pick the brains of executives who had been entrenched in the offering for five to ten years. She plays a similar advisory role for fellow dealers weighing the same decision. \u201cIf a dealer is sun-setting as an owner and asking if they need to get into IT, that\u2019s not a good idea,\u201d she offered. \u201cIf you\u2019re trying to get out of the business in the next several years, you don\u2019t want to make that type of investment because it\u2019s a long game. It\u2019s great to get ideas and information out of the group, and you have to pay it forward whenever you can.\u201d It\u2019s great to get ideas and information out of the group, and you have to pay it forward whenever you can. \u2013 Chelsey Bode, Pearson-Kelly Technology Bode identified CDA as an optimal fit for her because she\u2019d been exposed to many of the member companies through dealer meetings with Konica Minolta and Kyocera. CDA boasted executives who were 10-15 years her senior and touted impressive track records with accomplishments she sought to emulate. She liked the mixture in dealer sizes and could relate with many who were involved in similar offerings. Content is king with CDA, and Bode applauds the group for amassing quality thought leadership discussions. Forging relationships has paid dividends in the creation of subgroups for CFOs, service directors and marketing directors. One such spinoff is the Managed Technology Association (MTA), a group created for members offering managed IT, complete with its own benchmarking and agenda. \u201cSince it\u2019s not relevant to the whole group, it was difficult for us to have deep content that was meaningful to the entire CDA,\u201d she said. \u201cMTA has CDA members and pure-play managed service providers that aren\u2019t CDA members. They bring a totally different perspective to our group, and we offer a different perspective to their world.\u201d It\u2019s a solid tradeoff. The managed IT specialists often struggle with marketing and sales, Bode says, areas where CDA members can provide guidance. Conversely, their IT proficiency in technical abilities and operations brings more to the table for CDA members within the MTA. \u201cWe\u2019re strong as a group when it comes to marketing and sales processes, but sometimes that technical ability, or hiring the wrong person without fully understanding some of the technical aspects of IT services, has been a bigger challenge,\u201d she noted. \u201cSo cross-pollinating some of those strengths and weaknesses has been the goal, and it\u2019s been really positive so far.\u201d Learning Curve For 25 years, Dan Strull was accustomed to \u201cthe Xerox way.\u201d He was a […]<\/p>\n","protected":false},"author":166,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1641],"tags":[],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/56615"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=56615"}],"version-history":[{"count":6,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/56615\/revisions"}],"predecessor-version":[{"id":56846,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/56615\/revisions\/56846"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=56615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=56615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=56615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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