More than 10 years ago when Howden North America was singled out by a MANA member as a “Perfect Principal,” the company’s dedication to its network of independent manufacturers’ representatives was evident. Howden, headquartered in Columbia, South Carolina, designs and manufactures large fans and blowers, rotary heat exchangers and process gas compressors for utility and industrial applications.

When the manufacturer’s relations with agencies were described in the July 2005 issue of Agency Sales, the views that agents had of the manufacturer were very positive.

For instance, consider these words from one agent: “Howden has a well-established methodology for dealing with sales reps and, in my opinion, they are very rep friendly — much more so than any principal we’ve ever dealt with….They don’t go around us or leave us out. They include the sales rep as an integral, long-term part of their business.”

Based on recent interviews with both the manufacturer and two of its independent agents, it doesn’t appear that philosophy has changed much over the years, especially considering the company’s recent efforts in the area of reinvigorating its rep council.

A quick look at the manufacturer’s history will show that over the years it has acquired 30+ fan manufacturers. Then, according to Dave McDowell, director of sales for Howden North America, “In 2012, we were acquired by the Colfax Corporation, a company that was very aggressive in terms of acquisitions. They immediately wanted to establish a high-strategy initiative to double our after-market business. In line with establishing that initiative, we decided to change our route to the market. All the acquisitions that had occurred resulted in walls being built up around our products. We would have six or seven product guys calling on customers. That just wasn’t an effective way to go to market.”

Improving Trust

At the same time, the company determined that “our independent sales reps had reached a point where they didn’t always trust us. We had walked away from the industrial side of the business and many of them found that we were resistant to change. That’s when my boss and I got together and determined we had to change our route to the market. As a part of doing some things that we hadn’t done before, we felt we had to involve our reps more in the process.”

McDowell continued that to improve communications with reps, “One of the first things I did was to go out in the field and meet with our reps. I explained that we had a regional manager in place to serve as their ‘champion.’ His job was to be right at the rep’s hip in his dealings with customers.”

In meeting and communicating with the company’s reps, McDowell explains that “We let them know how important it was that we share expectations and establish a performance review process. At the same time, we let them know that because they’re independent representatives, we can’t tell them what to do, but we can communicate our expectations and provide feedback. My overall message was that we want to grow with our reps.”

Council Starts Slowly

McDowell explained that as this process was unfolding, the prospect of having a rep council developed. “So we did just that,” he said. “We started off slowly with maybe six meetings over the first couple of years.”

In detailing what the manufacturer hoped to achieve, McDowell said that “What we were planning on initially was — as much as possible — to have at least one rep from each of our sales regions. Second, we were looking to have representatives from both our power and industrial sides of the business. We felt that would give us the type of mix that would work well for us.”

Over the course of the first few meetings he said there was a lot of discussion — constructive criticism — about what the company was doing wrong. “What was missing, in my opinion, were suggestions about what we should be doing moving forward.” In addition, McDowell also pointed out that perhaps one of the early failings in this effort with the rep council was the apparent absence of top management support on the part of Howden. “From my perspective, the only way a rep council will be truly effective is with that top-down support from management. Early on in the course of our discussions with our rep members, one of the points they continually mentioned was they weren’t convinced we were committed to them. That’s why management support is so critical.”

He adds that since those early rep council meetings, the company now has a new CEO who is showing the type of support he maintains is necessary. “Our new CEO is the real catalyst behind this effort,” he explained. “He’s been on board for a few months now and our reps already like what they see. For example, we had a town hall meeting with 10 reps. He spent half a day with them one-on-one going over all the issues the reps have with us.”

In addition to strongly recommending other manufacturers have a rep council, McDowell added two final thoughts on the subject. “To be truly effective, I think you have to view the rep council as an important extension of your partnership with reps. It’s a healthy and valuable forum that can encourage growth. Always be open to the constructive criticism that will develop and don’t be overly sensitive to what you hear from your reps. Encourage the rep members of your council to be open and vocal with their views. That’s the only way both sides will benefit.”

If Howden’s Dave McDowell is a big believer in the effectiveness of a rep council, he’s hardly alone. Two of the council’s members echo his desire to provide an arena for constructive criticism that can only help the manufacturer and its network of independent manufacturers’ representatives.

In general terms, Sam Harman espouses a philosophy that recommends rep councils. “I’m a big believer in them,” says the president of H. Clay Moore & Associates, a firm that was profiled last month in Agency Sales. According to Harman, “Rep councils can be a great asset. When a company decides that it wants to have a rep council, they do it for a reason. Obviously, there’s someone in the organization that sees some benefit and wants feedback. Having said that, however, how it’s run and managed are critical. There has to be a give and take between the rep and the manufacturer if anything substantial is going to be accomplished.”

The Atlanta, Georgia-based H. Clay Moore & Associates serves a variety of customers in the Southeast including electric utilities, pulp and paper mills, municipal waste water treatment plants and general industry.

Harman continued to describe his own experience with Howden’s rep council, which he admits is fairly limited given the fact he only took on the presidency of the rep firm a little over a year ago. “As an agency, we’ve been on the council for a fairly long period of time. Typically it’s the rep firm owners who attend council meetings.”

Positive Beginning

He continued that when he took over as agency president, his predecessor gave him an inch-thick folder of minutes and notes for the first meeting. “My impressions of that first meeting were positive. Primarily that the comments and contributions from council members did not fall on deaf ears. I believe there was a mutual appreciation for the fact that whatever problems and concerns exist, they are not easily solved and will take time.”

Harman explains that he appreciates the fact that it can be difficult for a large manufacturer like Howden to quickly make changes. “When you run a rep firm which is quite small compared to a manufacturer, you can make changes on a dime. A manufacturer, on the other hand, needs more time to change their processes. That’s why when various subjects come up at a council meeting, you can’t expect most of the problems to be solved right away.”

When it came to reactions to suggestions made by council members, Harman explains that he and the other members really didn’t experience much push back from the manufacturer. As an example, Harman pointed out that the manufacturer belongs to a lead generation organization. “In discussions on that subject, given the fact that that is an expense for the manufacturer, they wanted to know from us whether that was valuable. In addition, they asked where and how they should advertise? What trade shows should they participate in? They were genuinely looking for useful information from us.

“I think the feeling was that the council had reasons for pointing out various problems and their intentions were genuine. For instance, if a problem was pointed out and the manufacturer disagreed, they’d take the time to explain the situation from their perspective and go on to detail why certain things really can’t be changed. All in all, I think there was an open and honest communication between reps and manufacturer. You have to remember that if Howden didn’t believe the rep council was worthwhile, they’d do away with it — and they haven’t done that.”

Just as H. Clay Moore’s Harman, Ken Hall, Power Quip, Ogden, Utah, touts the value of the honest give and take and open communications that Howden’s rep council provides.

Power Quip, headquartered in Ogden, Utah, has a staff of nine full-time employees, and represents manufacturers who service the power industry in nine western states.

According to Hall, “What Howden does with its rep council shows that the company truly values the reps’ feedback. More than anything, they feel what we’re doing for them is valuable and they want to hear what we’re doing and what we have to say. Even though there can be a lot of redundancy with subjects that are brought up at council meetings — especially if changes aren’t made — I feel they’ve been grateful for our contributions.

Reps as Customer Voice

“Perhaps the most important contribution that reps can offer is by serving as the voice of the customer. Manufacturers always want to know what the customer is saying. We as reps, interact with customers on an everyday basis. In the past, I think Howden has had a desire to speak directly with the customer. Now with the input they receive from us via a rep council, they don’t have that need.”

In recounting some of his history with the manufacturer’s rep council, Hall explained, “When Howden approached me to serve on their council about three years ago, I described for them what I experienced with another manufacturer that had a very formalized rep council. That company, which has had a council dating as far back as the 1930s, has three reps serving as permanent members on rotating three-year terms. Other reps on the council are considered junior members.

“What Howden has is slightly less formalized, but as it has developed, it’s been a very good experience for us. For the most part, the last two meetings have been very effective and the company’s new president has been especially engaged in the process. In general, they receive comments from rep members as constructive.

“It’s been especially beneficial because the manufacturer has gone through a good deal of merger and consolidation activity. As a result, a number of concerns have developed that should be addressed by the rep council. The key, as with anything like this, is to make sure you have a formal agenda and that the sessions remain constructive. You can’t let them become complaint sessions where nothing is really accomplished. I can draw from my experience with some other rep councils I serve on where beforehand we solicit both positive and negative input from reps. Then we present that input at the meeting and allow the manufacturer to provide feedback. That’s a process I think I’d recommend to other manufacturers.”

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