If the previous article details some of John Beaver’s thoughts on the value of rep councils, it also provides an example of the validity of what MANA has been preaching for years.

A quick search of the association’s special reports and Agency Sales magazine’s archives will show that the message that has been consistently communicated is that rep councils can be a critical ingredient in the relationship between manufacturers and agents.

Not surprisingly, when manufacturers and independent manufacturers’ representatives who have experienced rep councils are asked their views, they are remarkably similar. For instance, when an agent in the southeast is asked for his opinion, he says:

• “Two of my principals who asked me to serve on their rep councils did so because they recognized it was a good business practice. They were looking for knowledgeable and timely input from their rep network and the rep council was the ideal vehicle to get the job done.
• “A third principal, on the other hand, initiated their rep council for the simple reason they were in trouble. They weren’t shipping, delivering or performing well for their customers or reps. Their hope — which was realized — was improved performance after receiving input from their reps.”

If that’s the positive response from an agent, a fairly typical manufacturer that started its council 16 years ago says, “Our primary purpose was to take advantage of a consensus from a small group of people whose views we respected.”

Diversity of Participants

When it came to putting the members of the council together in order to achieve that consensus, he explains, “They all weren’t our highest performing agents in terms of turnover and sales; rather, they were individuals we hold in high regard in terms of the industries we are involved in.”

In addition to seeking highly regarded individuals, the manufacturer explains that the “vocal can also apply.”

“I’m always on the lookout for people who have an opinion and are willing to voice it. I’ve always made it a practice to make sure I know the agent we were going to ask to participate would accept the invitation. In addition, we were going to steer clear of anyone who was going to vocally hold back during meetings.”

If choosing a diverse and vocal group of independent manufacturers’ representatives is part of the best-laid manufacturer plans for councils, not everything always works out as planned. Here’s how one agent described a less-than-desirable experience: “Two weeks after returning from our semiannual rep council meeting, the principal suddenly announces sweeping changes in their sales and marketing program — changes that were never discussed during the council meeting. At the same time they announced their changes, they said, ‘We need your feedback.’ My response was: ‘No, I need your feedback. What’s going on here? Why wasn’t this brought up at the council meeting? That would be the time and place for our feedback.’ I can’t think of a better example of how not to make use of a rep council.”

Organization and Direction Wanted

Or, how about the view of another agent who says, “I can’t think of how many times I’ve attended council meetings when the manufacturer didn’t maintain control. They provided no agenda, allowed their reps to run helter skelter and absolutely nothing was accomplished.”

Conversely, when the manufacturer does maintain control, provides an agenda and direction, praise never seems to end. Consider these comments:

• “Council meetings serve as a vehicle where concerns or problems reps may have can be addressed in an organized manner.”
• “Regular council meetings provide the manufacturer with the opportunity to learn firsthand from us what’s going on in the field. Then there’s the opportunity to learn what the competition is doing when they hear it firsthand from their rep network.”
• “It’s all about communication. We learn exactly what’s on our principal’s mind and they learn all about what’s happening in the territory from us.”

To get to the point where pros and cons of a rep council can even be considered, however, there’s the need to put one together in the first place. To achieve that goal, a number of steps must be completed.

Communication

As stated above, communication is the key here. Communicate with all who will be involved with the operation of the council. Start by communicating the goals that are hoped for. At the same time, let all who will be touched by the council know what the manufacturer’s and the agent’s roles will be.

Select Participants

As John Beaver described earlier, not only the top-performing agents should be included in the membership of a rep council. Diversity should be the key.

Several manufacturers have maintained that they’ve found more positive results by choosing agents to serve who have been with the manufacturer the longest. Those agents know the manufacturer, his product, personnel and the marketplace better than anyone else. In addition to the knowledge that length of service provides, their tenure also will provide them with a willingness to participate in the process with a high level of candor and objectivity

The newer or less-experienced agent, on the other hand, should not be excluded from council participation. At the beginning, however, it’s often helpful to have the more veteran agents available who can assist with getting the process moving.

When considering manufacturer representation on the council, appointees should be senior personnel who carry the appropriate titles. At the same time, they should be empowered to make decisions on behalf of their company without having to check with higher ups.

Determine Size and Length of Service

When thinking of the size of the council, consider what it is that is to be accomplished and then decide what number would be needed to get the job done.

Just as important as size is length of service. When determining how long an individual should stay on the council, ask the question how long it will take to get the job done. Considering that a manufacturer’s council will probably meet once or twice a year, it would appear that a one-year term is a bit short.

Staggering an individual’s length of time on the council might also be desirable. Such a process guarantees that there will be a continued infusion of new blood. At the same time, there will be a number of experienced reps who stay on, thereby guaranteeing stability in the council’s operations.

Expenses and Location

Most manufacturers recognize the fact that they’re taking their reps out of their territory and away from business. As a result, it’s their feeling that they should take care of expenses. At the same time, many manufacturers eschew the use of resorts for council meetings and choose factory locations or even hold meetings in conjunction with national sales meetings. This decision allows agents to become more familiar with the manufacturing process and the personnel they are so dependent upon.

Continuity

Manufacturers and agents agree that there’s no sense in establishing a rep council for the short term. It should fit into both sides’ long-term planning. At the same time, if the council is meeting only once or twice a year — as most do — that doesn’t mean that’s all there is to the job. Before and after each formal meeting, the council should be operating, whether it’s planning, communicating or implementing new plans.

Editor’s note: MANA members should refer to the association’s special report entitled Open Doors by Building an Effective Rep Council. It is available to MANA members in the member area of the website, www.MANAonline.org.

MANA welcomes your comments on this article. Write to us at [email protected].