When it came to identifying and facing myriad challenges to the way they conduct business, a group of MANA members found no shortage of subject matter to consider earlier this year in the course of a three-day MANAchat. Communication challenges, the threat posed by venture capitalists purchasing rep firms, and considering something called the Entrepreneurial Operating System — among other subjects — were all discussed.

Communication challenges, specifically as they apply to the rep’s ability to contact and stay in touch with customers, appear to be something that is a universal concern. The discussion on this topic kicked off when one rep observed, “When I first began in the business, if you couldn’t immediately touch base with a customer, you’d leave a note or a voice message and the client would call you back in a reasonable amount of time. I’ve found that today you don’t get that same degree of professional response from people.”

Another rep noted, “I’ve grown to appreciate the fact that people today operate on a different wavelength than they did when I was growing up in the business. We’ve got to recognize the fact that people get their information and communicate differently than they did in the past. This was especially noticeable as we came out of Covid. We’ve got to try to think in terms of the ways that people communicate now (i.e., social media, texting, etc.) and try to get in line with their preferences.”

Reps agreed that “Seeing customers eyeball to eyeball is always the best.” However, since knocking on doors doesn’t seem to work the way it did in the past, some partial remedies offered by the chat participants included the use of LinkedIn, Artificial Intelligence (AI) tools, remote video meetings via Zoom, and other tools.

Prior to this chat session, several reps had contacted MANA inquiring if others have experienced a trend whereby venture capitalists have been purchasing rep firms much as they have been gobbling up manufacturing companies. While the reps in the chat didn’t indicate they’ve seen a great deal of this activity, they did offer words of caution.

According to one rep, “This trend, if it is one, certainly relates to the importance of a rep firm having a succession plan. Unfortunately, there are a lot of firms out there that simply don’t have a good succession plan, or any plan for that matter. Many firms have plans to leave the organization for a son, daughter or other family member, or have had a younger person join the firm who would eventually take it over. Many times, those plans don’t work out. If a venture capitalist shows up, it’s usually when there are no succession plans in place. And historically, if the venture capitalist takes over a company, experience shows that the company is not going to be around for very long.

“In terms of the relationships between the rep firm and the manufacturer, I would assume you need some sort of a sign-off from your manufacturers prior to any sale of the agency.”

When the discussion turned to the subject of the Entrepreneurial Operating System (EOP) two reps described their positive experiences with the process. The discussion began when it was noted that MANA had been contacted by several members inquiring about EOS. In response one rep noted that its origins can be traced to a book entitled, Traction: Get a Grip on Your Business, by Gino Wickman (see sidebar). A second rep explained that “EOS is popular with many small- and mid-sized companies. A good starting point to learn about EOS is the book, which clarifies how firms should be set up. EOS does a great deal to focus on the needs of the people and processes in companies and encourages management to align their vision for their organizations. There is certainly value in understanding what a good employee is and in setting clear expectations to ensure that you have the right tools in the right spots for your organization. Basically, you want to make sure that you have all of your people pulling on the same rope to make sure you reach agreed-upon goals.”

It was agreed that the implementation of any of the EOS steps should be conducted on a top-down basis. “If you’re going to employ it, you’re the guy at the top. Make sure to take a look in the mirror to see how you shape up compared to what the book proposes.”

A final comment was offered when one rep noted, “The information contained in Traction really plays the devil’s advocate role. Bottom line, there is certainly no harm in reading the book. It’s not going to harm you and your organization. There is value to be found there.”

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