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To be fair, when considering the subject of manufacturer rep councils, there’s a positive and a negative side. In speaking with manufacturers, independent representatives and consultants, however, the positives of such councils far outweigh the negatives.

Considering some of the negatives, here are some of the more commonly voiced objections to rep councils. First, from agents:

• The meetings and responsibilities of agents serving on councils take away precious face time across the desk from customers.
• Manufacturers don’t listen to what their representatives have to say during these meetings.
• There’s little or no follow-up after council meetings — nothing gets done.
• There’s no formal agenda — discussions wander all over the place.
• There’s an expense incurred by agents who serve on councils.

And, from the manufacturers’ side:

• Council members aren’t honest with us. They only tell us what they think we want to hear.
• Too often meetings lapse into personal complaint sessions with a lot of griping.
• Some agents seem to have a personal agenda and only look for solutions to their individual problems.
• Agents are reluctant to serve on councils.
• Council members don’t follow through on what we’ve discussed.

None of the above are new thoughts and, as a matter of fact, they give proof to the old refrain, “The more things change, the more they remain the same.”

Bill Ingram, a manufacturer and a former rep, who is interviewed in another article in this issue of Agency Sales, recently considered the current state of rep councils, a subject he wrote about in this publication more than 15 years ago. “Everything I wrote about them years ago holds true today. Rep councils — if conducted properly — can be beneficial for manufacturers, agents and customers. The problem is we’re not getting as much out of our councils as we should. Once again, if done properly, rep councils result in increased communication, cooperation and trust among manufacturers and their agents.”

It would appear that the question remains: How should rep councils be constructed and conducted in order to be more productive? That’s a question that MANA and ASM have tackled time and again over the years and what has resulted is a number of recommendations for manufacturers and agents to follow in order to reach that desired higher level of effectiveness.

• If a manufacturer is to establish a rep council, first answer the question, “Why?” What’s the purpose of having a council? Is it just to say you have one? That would appear to be a waste of time, money and effort. Instead, plan how manufacturers and agents can work more closely together in order to benefit their joint efforts to serve customers. Don’t take a single step until goals and priorities are established.
• Get input from agents. Ask the outsourced sales force what they’d like to accomplish via their service on such a council.
• Carefully consider the make-up of this council. Is diversity a consideration? Would it be wise to populate the council with long-tenured agents? Should newly contracted agents have a presence on the council?

And, keep in mind the fact that agents shouldn’t be the only ones on the council. The manufacturer deserves a seat — or seats — at the table. Individuals from the manufacturer’s side should include top management and those with important functional specialties.

When it comes to the size (the number of people) on the council, there is no hard and fast formula. What it all comes down to is what both sides hope and plan to accomplish. The size of the rep council is important only in that it reflects representation of both the agents and the manufacturer and that it is appropriate for the task to be accomplished.

• The when and the where of the meetings — Taking the “when” first, the majority of manufacturers tend to schedule their rep council meetings on an annual basis. Others also call special council meetings when they or their agents feel there’s a need.

As for the “where,” while it’s hardly unheard of to conduct rep council meetings at resort locations, manufacturers should never hesitate to schedule a meeting for the factory if having it there is integral to the meeting’s success. A benefit of holding the meeting at the factory is that council members are provided an opportunity to meet and interact with other personnel they should get to know well.

• Just as it makes little sense to undertake a trip without a plan — or better yet, a map — so too is it best to approach a rep council meeting with a well-crafted and thorough agenda.

Experience has shown that when councils fail, often the reason is that one side or the other sees the council as a place to resolve personal disputes or because members don’t take their responsibilities seriously.

As a result, it’s important to decide in advance the appropriate subject matter to be covered during a rep council meeting. What is appropriate is anything that is important to tasks set by the council, anything that will help sell more products, and anything that will strengthen the bonds between manufacturers and agents.

• Follow up — No rep council meeting can be considered successful without a “call to action.” In other words, whatever steps the council has mutually agreed upon should be completed before the next meeting. The responsibility for seeing that action is taken falls squarely on the shoulders of the manufacturer’s employees as well as the agent members. Apart from each member carrying out assigned tasks, one agent member and one manufacturer’s employee should be assigned the responsibility for communicating with everyone who should be included in the loop.
• Who pays? — It’s usually expected that manufacturers pick up all council members’ expenses for the meeting, including transportation, lodging and food. It is not appropriate, however, for a council member to expect a manufacturer to pick up the expenses for others that an agent brings to a meeting.

There’s a great deal more to consider on the subject of rep councils than is covered in this short article. The accompanying sidebar refers MANA members to some of the informational resources the association provides its membership.

Form Rep Councils to Improve the Rep-Manufacturer Relationship

High-quality manufacturers strengthen agent relationships when they create rep councils. Rep councils analyze the rep-manufacturer relationship and make recommendations and changes that improve its effectiveness.

Educational Resources

Guideline:
Operating Charter Representative Council — Outlines what manufacturers and agents should include for an effective rep council. Subjects addressed include objectives, membership structure, meetings, expenses, and much more.

Special report:
Open Doors by Building an Effective Rep Council — This special report features interviews with manufacturers and agents covering their experiences with rep councils. Included are articles covering: “Getting the Most Out of the Rep Council”; “Better Late Than Never With a Rep Council”; “The Good, the Bad, and the Ugly About Rep Councils”; and “The Need for More Rep Councils.”

Teleforum:
How to Establish and Benefit from Rep Councils — MANA staff and a MANA associate member that has been featured in Agency Sales provide insights into the works of rep councils and offer manufacturers some practical tips on how to make them more productive.