SOLUTIONS FOR THE BIGGEST CHALLENGES Becoming a C.E.O. ( C HANGE E ngaging O rganization)

1. SOLUTIONS FOR THE BIGGEST CHALLENGESBecoming a C.E.O.(CHANGE Engaging Organization) Bryan C. Shirley, CPMR www.bryanshirley.com

2. today • Survey to Reps and Manufacturers • The BIGGEST Challenges • SOLUTIONS and D.U.N. IDEAS ! (Different, Unique, New) • Your topics, candid talk time * • Making changes in your company

3. Audience? • Manufacturers • Representatives • Dealers • CLMR, CPMR, CSP ? • Business down ? • BUSINESS UP?

4. SURVEY Thanks for the candid inputs (non-scientific results)

5. WE ASKED A.L.A. MANUFACTURERS 73%

6. WE ASKED A.L.A. REPS “Over the years I have run into mfg's that do not completely understand the role we play. We no longer represent any lines that do not respect our place in the industry. All listen to what we have to say and work together with us to grow our business together.” WOW ! “Usual problems between Accounting and Sales” “Depends on (varies from) Manufacturer”

7. COMMENTS from A.L.A. Manufacturers “Reps need to transform from order takers to problem solvers and become a partner with their showroom customers by providing opportunities and solutions for retails sales.” “We consider them an extension of us.”“The more they are prepared with the appropriate tools from us the better they can sell. The more I interact with a Rep the more I feel they are working our line and understand us.” “We are still a relationship driven business and a good rep is invaluable. That is not saying every rep is good or every rep is a good fit for every company...but that’s the challenge.” “We have a good working relationship with our Rep force and believe a strong Rep force continues to be the best conduit for fostering relationships and taking care of issues quickly in the field.” “Actually, each rep brings along their own way of doing business and viewing the world. There are three categories: Some work in perfect unison with our internal support staff, others just exist with few highs or lows. The last group is the anomaly--they scream loudly and are very demanding of resources and attention....but it seems to pay off in higher than average sales.”

8. WE ASKED A.L.A. REPS “Some yes and some no”

9. WE ASKED A.L.A. MANUFACTURERS 76.8% “Gotten much better” – anyone want to share ??

10. COMMENTS from A.L.A.Manufacturers “Reps need to embrace all of the tools that manufacturers provide for them. “ “We've made some key rep changes / territory expansion since Jan-10. All of our new agencies are strong. “ “Cash flow and returns have hit or delayed commissions “ “We do our best to understand the daily challenges our reps go through. While I do hold them accountable on their rate of success and dollars generated it has served me well that my reps know I am not a hollow suit with no respect for how they make a living. “ “Relationships with reps are never consistent from one agent to the next. I always view the first year with a new rep as a prolonged blind date. Since the economy has been slow the last few years, I believe reps work harder to build relationships with the manufacturers. They want to keep their lines.” “We brought to this new company, a proven (25 years) culture of inclusion and appreciation, which compels Independent Sales Representatives to want to help us achieve our mutual goals. Guess what?...it's working... it always works! “

11. BIGGEST CHALLENGES with respect to growing sales Manufacturers’ challenges Reps’ challenges

12. BIGGEST CHALLENGES FOR A.L.A.Manufacturers • Economy • Mind Share from Reps * • Getting Consumers into Dealers • Dealer focus (on our products) • NBO (New Business Opportunities) • Market Share • Product training and knowledge • Brand Awareness • Marketing Intelligence from Reps

13. BIGGEST CHALLENGES FOR A.L.A.REPS • Economy (lots !) “dead as a doornail” • Shrinking customer base (out of business) • Market share reductions • Competition– fighting for way less business • Internet competition • Customer inventory (lack of)

14. BIGGEST CHALLENGES FOR A.L.A.REPS • Lead-times and deliveries from China • Freight cost issues • Getting new younger Reps in the business • Too many emails • Commission reductions • Finding new revenue methods • Finding better manufacturers to Rep

15. DIFFERENT, UNIQUE, NEW strategies, programs, ideas to enhance relationship, increase opportunities and increase sales and improve efficiencies • Manufacturers’ ideas • Reps’ ideas • What have you D.U.N. ?

16. D.U.N. IDEAS FROM A.L.A.Manufacturers • KISS method • Reps are pushed and pulled by many • “Lighting Made Simple” (for consumers) • Information flow faster and easier • Constant communication (but brief) • Sales Tools for REPS • Webinars on (new) products • Mobile computing enhancements • Reports through Mfrs portals (24/7) • Videos, Social Media, web-based comm.

17. D.U.N. IDEAS FROM A.L.A.Manufacturers • ADVERTISING • Drive consumers into showrooms • Awesome literature • New exciting promotions • Cash back promos • REP metrics • Visits • Items on display in showroom • Value of product on floor

18. D.U.N. IDEAS FROM A.L.A.Manufacturers • Enhanced Customer Service (response) • Sales Advisory Teams • Prompt payment of commissions • Never cut commissions (you don’t cut your expectations!) • Trust (“truth and trust are musts”) • Not a fake culture • Value the Rep, treat with utmost dignity • The ROI is multi faceted and truly priceless • OTHER ??

19. D.U.N. IDEAS FROM A.L.A.REPS • Email blasts, email marketing • Going digital/paperless (office is my I-Phone) • Get stores to arrange brand by groupings (helps salesperson to sell from same area) • Merchandise products with similar finishes (as client would expect to see in their home) • Easier for customer to visualize products (keep back drop white and simple) • Stepped up Customer Service (and response)

20. D.U.N. IDEAS FROM A.L.A.REPS • Thank You cards for business • Expanded product offerings from other Mfrs • Target Distributors outside typical supply chain • Going after different areas of energy savings • Sell ideas, strategies, merchandise, marketing • Green building area ! • Tried and true sales calls and relationship building – and stretching our time • OTHER ??

21. C H A N G E It’s not so much that we are afraid of change or so in love with the old ways, but it’s that place in between that we fear… It’s like being on a trapeze. It’s Linus when his blanket is in the dryer. There’s nothing to hold on to. - Marilyn Ferguson

22. Seth Godin, blogger • ‘NO’ is not the enemy of change, ‘NOT YET’ is. • Change almost never fails because it’s too early. Change almost always fails because it’s too late. • The organizations that needs innovation (change) the most are the ones that do the most to stop it from happening. It’s a paradox, but once you see it, it’s a tremendous opportunity.

23. Making a CHANGE in your company • How do you do this ? • “Necessary vs. Nice” • Strategic Planning • GOAL setting/getting • Performance Objectives • IMPORTANT ONES

24. CHANGE • AND WE ALL KNOW…. • NO TIME • TOO BUSY • SHOWROOM THIS • PRINCIPAL THAT • SALES MEETING THERE • “NOT YET” • PUT IT ON YOUR CALENDAR !! SET TIME TO CHANGE, ADD NEW PROGRAMS and SYSTEMS

25. HOW DO WE SOLVE THEM? IN THIS BUSINESS, IT’S MOSTLY ABOUT COMMUNICATIONS EXPECTATIONS TRUTH, TRUST, RESPECT BE a communications expert

26. THE 7 THINGS YOU NEED 1- Mission/Vision, Ethics, Philosophy 2- For real planning with for real follow up 3- Technology tools that are up to date 4- Operational systems (#‘s and $‘s mostly) 5- Great sales management (even of you) 6- Marketing and branding 7- PRODUCTIVE FUN !

27. DO SOMETHING !!!Different, Unique and New that adds value and positions you. You CAN do it

28. www.bryanshirley.com bryan@bryanshirley.com

29. Many thanks…. • Bill Allen • Jack Berman • Tim Coakley • Mark Conley • Gene Foster • Marilyn Friesen, Ph.E. • Ray Hall • Scott Lindberg • Tom McCarthy • Gerry Newman • Clarke Price • Glenn & Joan Shirley • Bob Trinkle • Nicki Weiss • June Windmuller • ALA: Eric Jacobson, CAE • and Beth Bentley, CMP, and all of you today !