May 30, 2017

This week… Run to the Stop Sign.

Setting ourselves up to fail?

I went jogging with my daughter this weekend.  I use the term “jogging” lightly as it’s mostly walking with a few jogs in between.

Keep in mind, she is a very fit 21-year old, and I am a semi-fit fifty-something (we don’t need to get more specific on either front).  In my mind, I had already determined, I would lag behind and she would win.

Close to a mile in, she challenges me, “let’s run to the stop sign.”  Instinctively, I say, “I don’t like to make goals… it just sets me up to fail.”  Did that really come out of my mouth?  It was exactly what I was thinking.  If I don’t actually set the goal, then I won’t fail. 

How often do we do that in business - avoid making forecasts or setting milestone goals - out of fear of not being able to achieve it?  We won’t feel as bad in our failure if we didn’t set out to do it in the first place.  Yet, will we ever achieve greatness without goals?

She asks me, “why do you stop yourself?”  It’s not that I’m so tired I can’t keep going.  It’s probably because I normally only go this far in one jog, or maybe because I’m bored and just stop?  Is that parallel to my comfort zone?  Maybe I can go a little longer.  Just because she’s 30 years younger doesn’t mean I can’t keep up.

I decided to change my mindset.  “Let’s run to the big yellow sign ahead.”  Keep running… you don’t have to stop… just a few feet more… I can do it!  And, guess what, I did. 

It’s the same in your business and professional life.  What are your limiting beliefs that hold you back?  What more can we accomplish when we set lofty goals, and confidently push through our comfort zone? 

Other than 10,000 steps on my Fitbit, this morning’s jog taught me to:

1.       Set milestone goals

2.       Change to a winning mindset

3.       Push yourself

4.       Surround yourself with people better than you - smarter, faster, fitter

And, then as we neared the end of our jog, she admits her legs hurt.  Yay!  I win!

May 8, 2017

I think it was Tom Hopkins who said sales is “the easiest, lowest paid job in the world, or the hardest, highest paid job”. I’ve probably misquoted the great man but the essence of it is, in my opinion, completely true.

The reference, I believe, was towards hard work and having to deal with rejection.  We all know that high activity rates tend to generate more sales.  We also know that until you ask “the question” you’ll never get a ‘yes’ or a ‘no’.  Many people are so scared of getting a ‘no’ they never ask “the question”.  Great salespeople will ask “the question” knowing full well they risk a ‘no’. And, rejection hurts…deep.

Because sales people are, of course, always looking for a ‘yes’ they tend to steer the sales process down the path that is most likely to get them an affirmative answer.  Even if it’s not necessarily the best thing for their customer.  I know; shock, horror!

This approach may, or may not, get you the sale. And, in the short term, everyone might be happy -  especially the salesperson.

However, we know that in the mid to long term this is not necessarily going to be right for either the salesperson’s company or their client.  Eventually something will go wrong, and then everyone dives into the contract detail and relationships fall apart.

I write this blog in the final stages of preparing for a big client pitch. The client wants to enter a new (to them), and highly competitive market with their existing brand proposition.  We’ve done extensive research on the client’s behalf and we think they need to make some fundamental changes.  One of those is to adopt a new brand for this market.  And, to complicate matters, they love their brand - of course they do.  We love their brand too, just not for this new market.

So, we have a dilemma.  Do we pitch for what we think is right, or do we pitch what we think they will say ‘yes’ to?

We really like the client and the people we work with, and would like to work with them for many years to come.

Easy then.  Pitch what we think is right.

Watch this space….

March 2, 2017

Heike Dieckmann from OPI speaks to sales and marketing agency Highlands CEO Bob O’Gara and Gordon Christiansen, Managing Director Europe and SVP of Marketing, about the challenges that exist and how the company is addressing them.

In line with the evolving nature of the business supplies sector, the role of manufacturer rep groups is changing. OPI has been following their progress over the years. But while outsourced sales reps continue to play an integral part in our sector and nowhere more so than in the US, the pressures facing both the manufacturing as well as reseller communities have taken their toll and highlighted some of the perceived cost/benefit challenges that exist.

US-based Highlands is arguably the best-known sales and marketing agency in the global business supplies market, with a strong nationwide presence in the US, an expanded regional presence in Canada and a solid footing in the UK, with developing plans for the rest of Europe.

OPI: The business supplies sector is changing massively and, by default, so are manufacturer rep groups I believe?

Bob O’Gara: Yes, absolutely. If you talk about manufacturer rep groups, or a sales and marketing agency as we at Highlands prefer to be viewed as, you need to consider the macro environment and what’s happening in the broader industry.

Consolidation is happening at both supplier and reseller level and that’s inevitably going to impact rep groups. We’re still in the early stages of this consolidation which is largely driven by the decline in traditional office products. The resulting margin pressure affects independent rep groups the most, as these manufacturers are struggling with overcapacity and need to assess how much money they can afford to spend and on what specific sales and marketing activities.

On the reseller side, scale matters now more than ever before. To be an effective B2B service provider you need to have scale, invest in websites and all manners of technology to drive your business. And you need to have a partner that is familiar with that technology and can help you with that.

It’s a challenging time to be in this space, but I think there’s still plenty of opportunity because many of our legacy suppliers are actually in greater need of these types of services. 

OPI: Can you give an example?

Bob: A great example would be assisting suppliers with the creation of digital marketing assets. We have a number of clients that use Highlands as a marketing resource as well as a sales resource. Everyone knows that to maximise sales you need great copy, great product images and great videos. It’s not one-size-fits-all.  For those suppliers that don’t have the internal resources to create great digital content, Highlands can step in.

Another example is diversification of markets. Manufacturers accept that if they’re only selling into companies like Office Depot, Staples, SP Richards, Essendant and the large OP independents of this world, it is becoming ever more difficult to achieve significant growth. The question is: How can we as a sales and marketing agency assist those suppliers in terms of penetrating mass market channels, the MRO sector or the education vertical? How can we spread their business out into other channels to help them find other paths to growth?

Gordon Christiansen: We are in the same boat. At Highlands, we’re diversifying in terms of the types of accounts that we service and how we service them. This diversification is happening in three specific areas. The first one is different distribution channels, as Bob mentioned.

Then there are new product categories that we represent, such as jan/san. This now puts us into the same boat as other resellers and wholesalers. Like them, we need to broaden our scope in terms of the brands we represent and into what channels we represent them.

Third - services. Yes, field representation is still a critical part of what we do, but we also need to provide a wider range of services including technology. This will greatly help brands increase their channel penetration and volume. 

OPI: Where do you see the greatest traction in your manufacturer relationships?

Bob: Again, its not one size fits all. Highlands is built to allow manufacturers to work with us in a variety of ways, based on their unique set of needs. That said, some of our most effective engagements are deeply strategic. We work with clients to help them to shape their strategy and product development, and then map out the best and most cost-effective paths to market right through to the end user. It’s a completely different type of engagement than we had in the past.

OPI: The channels you outline mass market, MRO sector, education…Are these within the realms of a manufacturer rep groups generally? I assume size matters here as well?

Bob: In the US and Canada there are reps working in all of these channels.  Generally, these groups focus exclusively on only one channel and are regionally focused. With respect to office, facilities and MRO, we are seeing increasing overlap that will present challenges for suppliers and agencies.

In a blurring marketplace, what is the distinction between a jan/san dealer and an office products dealer? Generally, the suppliers of janitorial products hire groups on a national basis to service the office channel. This should give those groups an advantage over the regional rivals in other janitorial and MRO markets.

OPI: Amazon, do you have a relationship with them through the brands you represent?

Bob: We do. We have a robust online business. But it’s not all about Amazon.   What’s unique about Highlands is that we serve the totality of the e-tail marketplace, rather than Amazon only or Overstock only. This is important as it involves managing the interplay between these accounts that lets you maximise online sales.

With respect to Amazon, this is not a relationship company but rather an analytics company that prefers to do things over email. Plus, it has a high staff rotation, so you never see vendor managers in the same seat for very long. 

We are effective with Amazon because we’re really good at the technical part. We have a team of people that really understands how to promote and maximise our suppliers’ product exposure, how to manage the e-tail marketplace, how to work with the complex pricing algorithms" and in the process drive considerable growth for our partners in that marketplace. 

OPI: You have a unique advantage in that you are very well known through your international presence?

Bob: We have derived great benefits from being in multiple markets. We have significant opportunities coming to the US business based on our Canadian and European presence and this has worked in the opposite direction too.

The best part is that we are discovering new suppliers to drive incremental business not just for Highlands, but for all of the customers we sell to across all of the markets served.

OPI: You now have a solid presence in the UK I believe, representing a variety of brands including RB very successfully. What about continental Europe" what’s your experience there?

Gordon: Europe is very much on our radar and we are well-positioned to make it a success. We have the expertise to help brands from the US, for example, that have no experience in the European markets to introduce them to the key resellers and wholesalers across the continent as well as help with product information and promotional activities.

That said, it’s not been easy. There are a couple of manufacturers, British and US-based, that would like to have some representation in Germany, for example. The challenge is pure economics. You can’t just do it for one or two manufacturers, you need ten to make it economically viable. We don’t quite have the traction we need yet and maybe the model in continental Europe will need to be adapted somewhat, away from a pure field sales model.

We currently represent a number of brands across the whole of Europe and helping them sell into German resellers, pan-European wholesalers and online marketplaces. The office channel for them is an exciting place to grow and we believe we’re the ideal partner to help them do that.

By the same token, having a European presence provided us with the opportunity to help manufacturers from that geography be more successful in the US. Having a footprint on both sides of the pond has really worked for us because of the interactivity between the US and Europe, and many manufacturers wanting to move both ways.

OPI: In our recent article in OPI we talked about commission-only agents that are still pretty prevalent in some parts of Europe and also the associated cost that comes with dealing with a company like Highlands. What’s your view?

Gordon: I think there’s always going to be a market for the commission-only concept. For some manufacturers that works well because it’s a relatively low-cost, low-investment model.

Our model is different. We tend to represent large brands that are well known in the marketplace. It’s about creating a point of differentiation for the reseller to incentivise them to focus on the brand we represent rather than a competitive one.

March 3, 2017

The future of dealer groups is something I have contemplated for some time.  Recently I received the Office Power Dealer Group Survey and it made for insightful and interesting reading.

Office Power is a pretty cool tech company based in London, UK that helps small to medium office products dealers consolidate and leverage their purchasing under one umbrella as well as giving them an industry leading technology platform (amongst other things).

I mention this not as an advertisement for their business but rather to put some of their opinions into context.  Whilst they are not like-for-like competitors to dealer groups they do compete. That said, many of their conclusions resonated with me and are as relevant for markets outside the UK as they are within. 

Increasingly we are seeing margin pressure within the office channel especially in more traditional categories. This trend is unlikely to reverse. Manufacturers are forced into making choices about where they share their love. Even partners they have successfully worked with for years will be under scrutiny.  These choices may be easy to make where ROI is not apparent but more challenging when cuts are made where value is being delivered.

A key question is whether manufacturer rebates paid to dealer groups, whether directly or through wholesalers, are sustainable?  If so, the current dealer group model has longevity. If not, it is unlikely that wholesalers will financially support the activities of dealer groups themselves on an ongoing basis putting the current model under threat.

What happens to the dealer groups when this funding stops? Will dealer group members be prepared to pay the full cost for the services provided? I suspect many will not and the knock-on effect will be three-fold:

1.   There will be fewer dealer groups. 

2.   Dealers will need to invest directly in key business areas to stay relevant and survive.

3.   Opportunities open up for consolidators, be they acquirers or service / technology platforms.

This is the link to the Office Power report.  You do need to fill in your details in order to download but it’s worth a read.  http://www.officepower.net/dealergroupreport

Gordon Christiansen

February 28, 2017

A poll of over 11,000 women in the US conducted by Influenster shows how women use social media and reviews to make their purchasing decisions.  A staggering 67% of reviews were sort using mobile devices, clearly demonstrating the need for a 'mobile first' strategy when creating your e-commerce platform.

We shouldn't be surprised by these results.  We've always trusted our friends to provide a tip for the latest trendy restaurant.  Now, we have millions of 'friends' all over the world who can provide us with insight into restaurants, hotels, airlines, taxis... everything.   Social media and specialist apps like Trip Advisor and Yelp make these reviews easily accessible.  And who doesn't look at the star ratings on Amazon or eBay to help with your decision process?  

The lesson for retailers and etailers is simple.  Earn great reviews, get those star ratings up and you will sell more.

February 26, 2017

Language is important.  My business partners Bob O’Gara and Shannon Blake must get bored when I keep harping on about this.  But, it is, and they agree…really.

As an example, we recently rebranded from The Highlands Group to Highlands.  OK, not a radical name change however there were various reasons for this, one of which was that Bob really disliked the company being referred to as THG.

Easy, kill the “The” and kill the “Group”.  THG becomes Highlands.  Boom!  Well it’s not that simple because despite Bob’s dislike of “THG” it had become endemic both inside and outside the business.  Sure we could tolerate (with a pinched smile) clients calling us THG but we must be able to get it right internally.  Slowly but surely we are weeding out and changing all those documents lurking in the deepest recesses of SharePoint and we’re truly becoming Highlands.

Once again my daughter inspired me to write about this topic.  For my recent flight from London to Chicago my Flight Kit included a book called F****** Apostrophes by Simon Griffin, a copywriter from Leeds in England.  It’s a witty and informative rant about the correct use of apostrophes.

Those who know me well will fondly remember those fun and invigorating conversations about the correct use of grammar and punctuation.  Particularly rich from a Danish born Australian who went to a middling comprehensive school in the suburbs of Perth.

Simon says, “The single most important rule of any punctuation is to help the reader understand what it is you’re going to say.”  Too bloody right.  As Lynn Truss says in her 2003 book there is a big difference between “Eats shoots and leaves” and “Eats, shoots and leaves”.

Don’t get me wrong I’m not linguistic expert, perhaps just a bit of a smart-arse pedant, however if you want people to understand your message is it not unreasonable to spend the time to try and articulate it properly? You never know, if you take that time people might actually understand what it is you’re trying to say.

That’s why all the best organizations take care to get their communications right.  Governments, charities, businesses, media companies all employ highly qualified people to help get it right.  Sure, nothing works all the time and sometimes so much care is taken not to offend that a message can become too bland and lose its meaning.  That’s not a reason to shortcut the process.

Well-articulated messaging is only part of the journey.  What we say has to be backed up.  A friend called any brand “A promise, delivered”. I really like. As an example, with the Highlands’ brand refresh we stated that our number one determinant in the recruitment and retention of staff would be cultural fit.  We have articulated this well into the business, now we have to deliver against that promise.

Reading Simon’s book and thinking about this topic has reminded me that we need to continually reassure clients that as we create their brand’s communication strategy we will take every care to ensure their “voice” is communicated clearly.   Whether it’s a website, a corporate brochure, a product flyer, advert or a promotional piece we will ensure their voice has clarity, is effective and resonates with the target audience.

And we’ll do that by putting the apostrophes, commas, parentheses, semicolons and colons in the right place.

If it’s worth doing, then it’s worth doing right.

Gordon Christiansen

January 27, 2017

Like many I have been consumed by articles attempting to predict how 2017 will turn out.  I have to admit that I’ve not normally been so slavish to these articles but with Brexit and the election of Trump it has seemed more pressing.

In January 2016 I accepted a full-time role with Highlands as Managing Director for Europe and Senior Vice President of Marketing for the group.  This has resulted in quite a few trans-Atlantic trips. 

My beautiful daughter (26 years old and a Senior Account Manager at J. Walter Thompson in London) dreamt up a Christmas present for me.  She created “Flight Kits”, each containing a book, a puzzle, some sweets (candy) and a gin and tonic additive.

The first Flight Kit contained The Royal Navy Officers’ Pocket Book, first published in 1944 to help train new officers.  Given the timing I presume there was a definite need to provide quick and accessible guidance to young men being thrust into challenging and unforgiving environments.

I wasn’t sure what I would get out of the book at first but thought it would be quite fun to have a read.  As I worked through the pages my interest levels grew.

Many business people are obsessed with learning and adopting new leadership and management techniques form the latest business guru that will transform their careers and the fortunes of their companies.

Well this book from 1944, which contained learnings from hundreds of years of what was the most powerful navy of its time was truly insightful.  Here are some of the quotes that really struck a chord with me.

- Never forget that the Ratings have few rights but they have the right to a good Officer.

- Do not despise advice tendered to you by your subordinates.

- Never be afraid to ask questions.  Bluff is a trait of the bad Officer.

- Do not harshly deal with a man solely for the sake of making an example of him.

- Loyalty can start only from the top and grow downwards.

- Do not risk giving…a hint of criticism of higher authority.

- How well you did things in your last ship is of no consequence.

- Should a man come to you for advice do not let the matter drop or be forgotten.

- There is a quality called tact, a very misused word in many ways, without which no Officer can          succeed.

- Look ahead; do not wait until something goes wrong.

- ...it is not possible to write a handbook on how to be an Officer and a leader.  We have each to find out for ourselves the best use we can make of those particular qualities possessed by each of us in varying degrees.

35,000 feet over the Atlantic, gin and tonic at the ready and I was enthralled by this book.  OK the language is a bit outdated and women didn’t seem to exist however I was intrigued by the relevance in today’s world.

So, I will keep an eye on those predictions for 2017 but equally I take on the learnings from this handbook from 1944 and try and become a better and more effective leader; for me, for the people I work with and the clients I serve .

Gordon Christiansen

Partner. MD Europe. SVP Marketing