More on succession plans….

There were two additional bits of information that rose to the surface during our interviews on the subject of succession plans that appear elsewhere in this issue of Agency Sales.

• CPMR — One rep we spoke with maintained that as he looks to the future for his own agency, one thing he will insist upon that is that “anyone put in place to succeed him must have earned their CPMR. Much of what I learned about running a rep firm came from the courses I completed during the three years of the program. In addition, it’s been my experience that CPMR makes everyone more professional— that’s the very least we can plan for our agency, our principals and our customers.”
• Take your time — Here’s how another rep addressed the question of how much time to devote to the process: “Just as important as it is to keep your own employees and principals in the loop when it comes to a succession plan, so too is it critical to let your customers know what’s happening. To truly ensure continuity for the agency, take your time. Don’t be afraid of devoting even a couple of years to the process. The downside of hurrying the process is that you put people in place who haven’t learned all they should about the business during the transition period. We took all the time that was needed to introduce our customers to the new people and we even made occasional joint calls with our successors.”

Tips for involving staff….

The timing couldn’t have been better when the owner of a rep firm inquired if we could offer any tips on how to better involve newly hired members of his rapidly growing staff in the operations of the business. The problem, as he described it, was that given the fact he was planning for the future and making a concerted effort to hire individuals who could see the agency well into the future, “There were a number of generational differences among us. As a result, the new personnel just didn’t seem as interested as I thought they should be in the firm’s inner workings.”

As luck would have it, we had just recently received a copy of a newsletter from The Center for Generational Studies (www.gentrends.com). Included in the newsletter were a couple of tips that have successfully been employed by other companies to foster a sense of belonging among members of an organization. For instance:

• A San Diego non-profit periodically scheduled after-work gatherings for all staff. This was done in an effort to provide a time for idea sharing and a little bit of brainstorming. The problem occurred, however, when the younger staff exhibited little interest in staying for these sessions. “So we moved the gatherings to the last hour of work. Now everyone stays, and we’ve been able to promote better communication between functions. While it costs us some staff time, we feel our sense of community is critical to our success as an organization.”
• In an effort to communicate and demonstrate where the revenue goes in a typical $1,000 sale, one Los Angeles-based company gathers all the employees in the warehouse. “The owner brings in 1,000 one-dollar bills and graphically distributes them to the appropriate departments according to expense. What a way to encourage those of all ages to collaborate, to communicate better and to look for better ways to save money.”
• A marketing firm in Maryland requires all its employees to take and teach classes at an in-house technology institute. “All workers must earn a certain number of credits per year to be eligible for salary increases. Consider the sense of community that grows when everyone is sharing with and learning from each other.”
• And finally, a Texas firm runs a buddy system for new employees. “If the new person doesn’t show for work, he or she is contacted by the buddy to find out what assistance can be provided.”

Consider your principals….

Bob Nikander, chairman of the board for the C.A. Briggs Company, Willow Grove, Pennsylvania, offers this valuable tip concerning how reps should view their principals. According to Nikander, “On my wall is a sign reading: ‘Neglect is by far the single largest reason for losing a customer.’ Reps — substitute ‘principal’ for ‘customer’ — and communicate with your principals.”

Votes in favor of online training….

Earlier this year, MANA initiated a series of one-hour online training programs aimed at covering the subject of “Starting a Rep Agency.” If the reviews are an indicator, the effort has been well worth the effort expended by several reps to get up to speed on a number of subjects that impact them now and into the future. And, the most prominent comment forthcoming from the attendees thus far is that “others anxious to get a foothold in the profession would do well to get their arms around the topics that were discussed.”

For instance, consider the words of Robert Muller, Muller Technology Group, Inc., Center Moriches, Long Island, New York. While he’s only been in business for a little over a year, he points to the fact that “I’ve gone from having absolutely nothing, all the way to $1.5 million in sales.” Two areas of the webinar program that he’s especially appreciative of are the emphasis on negotiating contracts with principals and the fact that local “mentoring” has been made available to reps participating in the program.

“If anything made an impression on me,” he said, “it’s the fact that you’ve got to realize the importance of negotiating with your principals and prospective principals. Starting out with nothing as I did, you’re generally happy to get anything, but you’ve got to look beyond that and the online training really did a good job of emphasizing that point.

“I’ve already encountered situations where a sales manager was hesitant to offer a contract. He’ll say something like, ‘Why don’t you just go out and see if you can get some business? If you can, then I’ll give you the account.’ They don’t provide any incentives or seed money. Since there’s no guarantee that will actually happen, and they might even turn it into a house account, that’s something I’ve learned to not bother with. I’ll just walk away.”

Muller also was enthusiastic concerning the mentor he’s working with. “He’s from another industry, but even so he’s been able to provide me with great advice.”

Contacted after the first couple of online programs, Brad Lehmkuhl, Lehmkuhl & Associates, Inc., Novi, Michigan, explained, “I’m in the midst of formalizing a business plan for my agency and have been active in negotiating several contracts with principals. In our case, our agency is going through a succession plan that I’m involved with. Although we’re 25 years old as an agency, there’s a lot of the business that I really haven’t been exposed to. That’s why the information contained in the programs has been so beneficial.”

He continued that in the short time since he’s participated in the sessions, there have been three or four areas where he’s already implemented improvements in his operation. And, what he’s changed have been win-wins for everyone involved.

“I’d recommend the sessions to other reps. Even though they’re geared for the typical start-up, it would be a good idea for anyone who’s going through a succession plan such as we are.”

While she’s not a rep, consultant Nicki Weiss, from MANA member SalesWise, Toronto, Canada, maintains that “the content of the sessions she’s participated in has been great. “There are a great deal of good business reminders that are especially beneficial to the rep — someone one works alone and has to do everything for himself.”

Reed Beinar, Motion Components, Inc., Camarillo, California, who, like Lehmkuhl, is in the midst of a succession plan, echoes the words of others when he says “The first-hand knowledge and experience contained in the sessions is especially helpful. There are a lot of important points that have been passed along that you’d never think of if you were left on your own.”

In general, all the reps were adamant that other reps would be wise to take advantage of the online training, which is still available on the MANA website (www.MANAonline.org, click “Starting an Agency”). According to Muller, “Membership in MANA and the information contained in the online training programs are crucial to the success of any agency.”