Association of Millwork Distributors Millwork & More Magazine

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Transcript of Association of Millwork Distributors Millwork & More Magazine

Page 1: Association of Millwork Distributors Millwork & More Magazine
Page 2: Association of Millwork Distributors Millwork & More Magazine

1Millwork & more AMD magazine

Around 2007, succession plans, growth plans, investment plans and most other business plans were shelved when the housing market spiraled into the economic downfall. The past year there are growing indications that home prices are in an upward mode and showing signs of a recovery. To effectively participate in the recovery, business plans are being dusted off and strategies are being realigned.

The fallout has left businesses challenged to deal with increasing demand, inventory shortage, and multi-tasking personnel as a result of fewer employees. Could business strategies be compromised by a shortage of available talent and decreasing interest in the millwork industry when baby boomers retire? Does your business plan include resources and various training for the next generation to advance in your company?

AMD wants to identify how we can support the current and future needs of our members. We too need to update and realign the association strategic initiatives to assist our members in the post-recession; and so, the task of updating the AMD Strategic Plan is underway. In one of the critical steps of the planning process, seeking input from our members in an on line survey to identify key initiatives is essential to AMD providing relevant member services that would be of value to your business.

Recognizing the association’s various membership categories, and in plotting a future road map for the organization, it will be important that all members participate in the survey. Full participation from each category of membership provides a strong voice as to the type of member services which would

benefit the distributor, the manufacturer, product and service provider, and the manufacturer rep.

Start collecting your thoughts now. Perhaps at your next company management meeting, allow some time for discussion about the aspects of your business that AMD can

provide assistance. Consider designating one company representative to complete the AMD survey to provide your company’s overall suggestions and input. Look for the membership survey in the near future.

Remember to make sure AMD is updated with your company personnel emails. Send your email updates to [email protected] or contact AMD directly.

“Help us, help you” be part of your business plan success.

Contact Rosalie Leone at [email protected]

Help Us, Help You

“AMD wants to

identify how

we can support

the current and

future needs of our

members.”

The AMD Millwork and More Magazine is published by the Association of Millwork Distributors (AMD). The content in the Magazine is submitted by third parties. The publication of the content in the Magazine does not constitute an endorsement, sponsorship or approval of the content by AMD. AMD is not responsible for the accuracy of the content. THE CONTENT IN THE MAGAZINE IS OFFERED AND PROVIDED TO YOU “AS IS”.

EDITOR Rosalie Leone

CONTRIBUTORSJason BaderDirk BeveridgeMichael CollinsBob DeStefanoDr. Rick JohnsonGary MooreDiane ThielfoldtMarc WayshakRobert Wendover

GRAPHIC DESIGN & LAYOUTBecky Wanamaker, Studio B Creative

Table of C o n t e n t s

18Work Force 5.0 Managing Multiple Generations @ Work

4 a canvas for innovating your distribution business

6 HIGH-END MARKET RECOVERY AND THE MILLWORK INDUSTRY

10 PROFESSIONAL SKILLS FOR DISTRIBUTION SALES MANAGERS

14 are you a broken field runner?

16 AN INTENSE SALES FOCUS

2 how to close the sale in the google era

8 clips, texts, tweets: training today’s millennials

16 HOW TO BOOST YOUR RANK ON GOOGLE: 15 ESSENTIAL QUESTIONS

1 hELP US HELP YOU

13 Buffelen Woodworking Celebrates 100th Anniversary of Door Manufacturing

28 AMD LEADERSHIP CONFERENCE LINKS THE MILLWORK INDUSTRY AND LUMBER INDUSTRY TOGETHER

cover story

features

online business

AMD NEWS

4 106 14

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n today’s technology-driven world, information is cheap. The Internet has changed everything for prospects. No longer do they need the big sales pitch explaining all of the features and benefits of a product. There’s a website for that—and probably many of them. Prospects

are savvier than ever now that they’re armed with so much information. They are also more guarded because of the way sales people have been portrayed over the past 50 years in the media. Finally, prospects are also busier than ever in history—the average corporate employee has well over a full week of work piled up on her desk right now. Times are different in the twenty-first century—sales people and business owners must adapt or die.

A sales person’s job now entails helping prospects identify whether they’re the right fit for a particular product or service. Most importantly, the ability to close a sale in today’s economy depends more on one’s mindset than his specific closing technique.

Bill was the sales manager at a mid-sized construction firm that struggled with sales despite having an intelligent and charming sales team. The team had been trained by an old-school sales trainer to smile a lot, turn on the charm and give rehearsed pitches based on some preliminary probing questions. The result was that they were simply not closing deals—and the deals they did close were won through very competitive pricing.

Bill didn’t understand what the problem was. His sales people would often get positive feedback from prospects about how they were treated, and people always mentioned how his sales team had “the gift of gab.”

By giving rehearsed sales pitches based on little information, being insincerely smiley and friendly, and trying to persuade prospects rather than understand them, Bill’s sales people were acting like all of the other sales people the prospects had ever met.

It’s not that this stuff is inherently wrong; it’s just extremely common. When the sales people were perceived as like every other sales person out there, they instantly appeared lower value to their prospects.

The New MindsetIn order to close sales in today’s economy, sales people must be different from the rest of the pack. By being authentic and aiming to understand your prospects, you come off as unique from the majority of sales people out there. Think of yourself as a doctor, rather than a sales person.

When you go to the doctor with a problem in your elbow, the doctor doesn’t say “Well, I have a solution for YOU! You are simply going to LOVE this fantastic arthroscopic surgery that we can offer. It is so great!”

That would be ridiculous and insincere, but that is what most sales people are doing right now.

A good doctor asks you where it hurts, what it feels like, and what you’ve been doing that might have caused the pain. Mirror the doctor-patient dynamic in your selling life. Replace all of that enthusiasm with a genuine desire to understand where prospects hurt and determine whether you can help them.

People open up to those that they perceive as a real person that understands them. A connection with a prospect is ultimately created when they feel that you seek to understand their situation.

That is why sales people must change their goal when with prospects. The entire focus of sales meetings must be on the prospect and his situation. This is achieved when you ask questions that begin to dig into where the prospect hurts about his current situation.

For example, rather than begin a sales meeting by talking about the benefits of your product, begin with one of these questions:

1. “Tell me about your challenges with regards to…[your category of service or product]”

2. “Give me an example of that challenge.”

3. “Tell me a little more about [prospects challenge]”

It goes back to that doctor’s mindset. A good doctor will thoroughly examine a patient before telling the patient if there is a solution. Only a quack doctor will offer a solution without identifying the real problem. Sales people must have this same mindset with their prospects. Realistically, about fifty percent of your prospects will not be a good fit for buying from you. This could be for a wide range of reasons from, they don’t need your stuff to they don’t have any money.

Whatever the reason, it is your job to discover as quickly as possible whether they are or are not a fit for you and your company’s product or service by using your doctor’s mindset.

As life has become more complicated, many sales people have sought more complicated solutions to their selling problems. However, the solution is not complicated. In fact, it is as simple as a small shift in mindset.

Vince Lombardi once said, “Some people try to find things in this game that don’t exist but football is only two things—blocking and tackling.”

The same is true for selling. By changing your mindset to think more like a doctor, rather than like the traditional sales person, you immediately move into an elite group of sales people that stand out from the pack. This is the difference required to close the sale in the new economy.

How to Close the Sale in the Google Era

By Marc Wayshak

I

About the Author:

Marc Wayshak is a sales coach and the author of two books on sales and motivation: Game Plan Selling and Breaking All Barriers. He has combined his experience, research and years of training organizations with his deep understanding of sports achievement, as an All-American athlete, to create the revolutionary Game Plan Selling System. Marc has a Master’s degree from University of Oxford and a Bachelor’s degree from Harvard University. For his free sales eBook or to learn more about Marc’s training, coaching and consulting, visit: www.MarcWayshak.com.

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The wholesale distribution industry needs to innovate. If this statement sounds like a call to action or a movement, it is. And it starts with your business.

Movements start with individual efforts. Prior to taking the first step it is important to provide a functional definition of innovation. Unfortunately innovation is too often an empty buzzword according to Saul Kaplan, the founder and chief catalyst of the Business Model Innovation Factory (BIF). BIF creates real world laboratories where organizations can design, prototype, and test new models for delivering value.

Innovation in simple terms means creating new value. This requires businesses to experiment, which is something that distribution businesses often struggle with. “If it ain’t broke don’t fix it” could sum up the attitude of many distributors and with good reason. For decades, the distribution industry provided excellent jobs for employees and sustaining profits for businesses of all sizes. The certain profits of the past are disappearing. Technology, global trade and e commerce are disrupting the distribution industry.

Rather than fearing the unknown lets embrace it. The proper response to inevitable change should be this is an opportunity to grow your distribution business through new revenue streams. Innovation changed the distribution industry. Now it is time for it to change your business.

The initial process is called building a business model canvas. Distribution businesses should avoid the bulky and antiquated 100-page business plan of the past. How often did you refer back to them anyway? With the speed that the business world changes by the time an organization completes a massive business plan the details are dated.

The business model canvas, first introduced by Alex Osterwalder in his book “Business Model Generation”, avoids these pitfalls by providing a one-page document that focuses on the most important aspects of your business. The brevity of this document allows the content to become internalized and operational.

How can your organization build a business model canvas? The first is an honest self-assessment. A fresh set of eyes might help this process, but even without an outside resource it will take the collaboration of several departments.

Identify your key partners, activities and resources. Examine your customer relationships and segments. Ask what does your business excel? What is your value proposition?

List the answers out and compare them to your competitors. What many businesses might discover is that they lack a value proposition. If you cannot offer your customers anything different from your competitors then your business only competes on price. That’s fighting for market share. That’s a race to the bottom.

I recently worked with a $40 million consumer product distributor that sells to dealers—a process not different from selling building materials to building material dealers and contractors. The group working on the canvas included the 2nd generation owner, two 3rd generation family members, the vice president of finance and managers from sales and marketing. The group offered different opinions based upon their primary experience of sales or accounting.

If only looking from the sales side or the numbers side the canvas a full assessment of

the company would be lacking. The canvass that this organization completed illuminated how they were positioned to compete. Beyond the product offering they offered sales support and product training. They had developed great personal relationships with key customers, but so had many of their competitors.

As they stepped back from this one-page document they concluded, “We don’t really offer anything different than our competitors. “ They needed to work on their value proposition.

To sustain their business going forward, and to ensure that it survives the transition to the third generation they are testing an assumption that thought leadership in the form of helping drive their retailer’s success can become a foundational differentiator to their business model going forward. To begin, the management team is developing a series of innovation experiments to test the assumption that improved merchandising by their mom and pop dealers will drive consumer behavior at the point of sale. While their potential solution seems simple enough arriving at it took a great deal of time, effort and self-reflection.

Going through the exercise of building a business model canvas will teach your organization how to identify new potential revenue streams, but planning is not enough to be considered an innovative organization. Testing your assumptions in the market is necessary to innovate. Be prepared for some assumptions to fail, but with a business model canvas as a guide your business will be able to respond quickly and test the next idea.

Lets bring innovation to the millwork distribution industry—starting with your business.

A Canvas for Innovating Your Distribution Business

By Dirk Beveridge

About the Author: Dirk Beveridge is one of the nation’s foremost business speakers, delivering messages that help organizations and individuals unleash their true potential. He works with firms to bring their strategy to life through keynotes, summits and workshops as well as through his consulting firm, 4th Generation Systems. Novartis and Graybar.

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High-end Market Recovery and the Millwork Industryto JCHS projections, overall remodeling activity is expected to increase by 11.3 percent from the end of 2013 to the end of 2015.

Another factor supporting the willingness to invest in homes is the decrease in the national housing inventory. According to the National Association of Realtors (NAR), the supply of homes for sale in May 2013 was 17 percent lower than it was one year earlier. Correspondingly, housing starts increased by 28 percent year-over-year in 2012 and are projected by the NAR to surge by 41 percent in 2013. This strong demand in the face of shrinking supply has begun to push home prices higher all over the country. As home owners once again come to view their homes as appreciating assets, their willingness to make investments in them will increase. This is nowhere more true than among households choosing to undertake large, high-end remodeling projects. The cost of such projects typically runs into six figures and the home owners will expect a return on their investment.

The NAHB/First American Bank Improving Markets Index (IMI) is another reflection of the trend of ongoing recovery. A metropolitan area becomes listed on the IMI once it has exhibited a six-month improvement in employment growth as reported by the Bureau of Labor Statistics, house price appreciation as reported by Freddie Mac and the single-family permit growth reported by the Census Bureau. The IMI has recovered strongly from the 12 cities listed as improving in September 2011 to 258 cities as of May 2013.

The broad recovery that is underway benefits the millwork segment but the recovery among consumers of high-end building products is particularly encouraging. The number of high net worth individuals (HNWIs), defined as those with $1 million or more in assets, is experiencing strong growth. According to Private Wealth magazine, the 2007 downturn in the number and wealth of HNWIs has been reversing. Between early 2013 and 2016, a growth of 19 percent in the total number of HNWIs in the United States is expected. Over the same time period, the wealth of these households will increase by 25 percent. Families in this category have historically had a strong tendency to invest excess available capital in improvements to existing housing and additional homes.

Another sign of the recovery of the high-end segment is the return of luxury spec homes, those built on speculation and not at the request of a specific buyer. In luxury housing markets like the Hamptons, this trend is strongly reversing itself and spec homes have reappeared. This year, the Hamptons area has three dozen spec homes listed on the market, as compared to none a few years ago. Last year, the Sagaponack Greens spec home in the Hamptons sold for a record $19.25 million. This is a sign that developers are willing to take risks as a result of increasing confidence in the housing market.

A significant portion of the recent real estate boom is fueled by another trend, wealthy individuals making second home purchases. The recovery in the equity markets has caused a renewed interest in Miami and similar temperate markets. This has driven up luxury real estate prices there after years of stagnation. Similar trends are seen in other parts of the country, such as second home purchases in Michigan by Chicago residents and in Lake Tahoe by California residents.

As discussed in our article last quarter, capital transaction activity and interest in the building products segment are increasing. Companies that seek acquisitions or to invest capital in the building products segment are exclusively interested in products that serve the medium and high price points in the market. Few investors have an appetite for the high-volume, low-margin segments in this industry, where profits can become losses virtually overnight. The current strength of the high-end residential segment bodes well for millwork companies that wish to be approached by a buyer or attract capital to fund their growth, as well as those that are simply grateful to have made it through to the recovery.

About the Author: Michael Collins, Managing Director at Building Industry Advisors, LLC is a Chicago-based investment banker, specializing in business sales and capital placement. His practice is focused on the window, door and millwork industry. Contact: [email protected] www.buildingia.com

It behooves us, then, to examine the state of the high-end housing market as a means of predicting the outlook for millwork producers. Starting at the highest level, households in general in this country are in much better fiscal shape than was the case just a few years ago. By the fall of 2012, the ratio of total household debt to the GDP of the U.S. economy had decreased by 15 percent, versus the levels of January 2009. Even higher income homes are not immune to the tendency to decrease spending when they perceive their household debts to be too high in a period of economic uncertainty. This reduction in household debt means that consumers have more discretionary income to spend on housing and remodeling projects.

Whether driven by a reduction in household debt, the improving employment picture or other factors, consumers have begun spending on remodeling again. According to the Joint Center for Housing Studies (JCHS) at Harvard University, the growth rate of home remodeling spending is expected to double from the first half of 2013 to the second half of 2013 from 10 percent to almost 20 percent. Housing market analysts have determined that the increase in home equity is prompting homeowners to start investing in the home remodeling once again. For the first time in many years, home remodeling contractors report that they are having difficulty finding enough qualified workers to execute on the business they have won. According

Generally speaking, whatever is good for the high-end segment of the housing industry is good for the millwork industry as well. Most millwork manufacturers sell products that address the upper-mid and upper end of the housing market, as measured by cost per square foot of new construction or remodeling projects. Virtually every millwork producer sells a product for which there is a cheaper alternative made out of a different material. There are a number of reasons that the segment remains vibrant, despite this price-based competition. Among these are the values that consumers place on natural materials. Home owners value the genuine look and feel of wood products. The wide variety of wood species available in the millwork segment allows our customers to put their own personal stamp on a project. As a result of these and other factors, the fortunes of the millwork and high-end residential segment seem to be inexorably entwined.

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I spoke with a fifty-something manager recently and he asked if I thought video clips might be a better way to connect with his emerging workforce. My first thought was, “Well, Duh!” But then I got thinking

about my 58-year-old self. So much has changed about training delivery in the past five years that it makes my head spin. As someone who began his career with overhead projectors and flip charts, there are days when I feel like I’m playing a constant game of catch-up. Having developed training for Millennials for the past decade, allow me to address five common concerns.

First, digital technology is just a tool. In spite of what Apple, Google, Microsoft and the others will tell you, software is not, in any of its incarnations, a solution. The big focus these days is faster, better, cheaper. While it’s easy to define faster and cheaper, better is a different story. Software takes much of the thinking out of learning. For perfunctory tasks, that’s great. But for the development of problem solving and troubleshooting skills, it’s a nonstarter.

Talk to teachers and trainers and they’ll tell you about the menu-dependent souls in their classes who appear intimidated when asked to reason through a challenge outside of the computer environment. The real solution: develop case studies and situations

they’ll face on the job and then ask them, perhaps force them, to find solutions. It might be tough at first, but with trial, error, and repetition come mastery. No one has ever grown without discomfort and no one is going to do so in the future.

Second, it’s all about the messaging. As some have heard me say from the platform, Millennials are the most diverse, wired, impatient, demanding, fun-loving workers in US history. This means that everyone is competing for their attention 24/7/365. Yes, the average person under thirty seems to be able to do five things at the same time. But that doesn’t mean that they’re doing them well. This generation has come of age immersed in non-stop hyperbole, with shocking and outrageous video clips, photos and lyrics thrown in periodically just to interrupt the mindset. This doesn’t mean we have to have naked people running through the classroom, training room, shop or laboratory to capture their attention. But it does mean, we all have to put a lot more effort into the stories, illustrations, titles, and exercises we use when competing for a share of mind. Whether it’s one-on-one, in a classroom, in the field, or over the Web, successful instructors spend a lot more time these days on training delivery than they do on training content.

Third, get chunky. Millennials just don’t have the temperament to sit through a 45-minute presentation or even a video without having something else to do with their thumbs. I could digress into why this is so, but that’s not the point. Review the information you currently provide during training. How much of it is presented by a “talking head?” Why not take that information and break it down into three- to five-minute chunks and upload it to a page on your website. Then send employees a link to the page. Older individuals might watch it on a laptop or desktop, Millennials will probably watch it on their mobile devices. Everyone will also be able to watch it as many times as necessary to master the skills. After all, very few of us understand most content the first time.

Fourth, training is not about providing information. It’s about getting people to think. When working with college faculty, I always tell them that the most powerful question they can ask a student is “What does it mean?” The same is true in a training environment. You ask the question and then wait

for the answer. There may be an awkward pause. Maybe even a long one. But don’t save their butts or let them off the hook. That awkwardness you’re observing is learning taking place. Do this enough and two things will happen: 1) They will hone their reasoning skills; 2) They will grow in their confidence to work independently.

Fifth, training effectiveness all comes down to selecting the right learners. Some of you know that the first book I wrote was entitled, Smart Hiring. Over the past twenty-five years, I have become more and more convinced that taking time to hire the best people is the solution to so many other woes. Is it tough finding good people these days? Yes. But simply hiring any degreed or certificated person because you’re short-handed and only two people applied is not a solution. Sure, you may hire the person, but make sure you know where their true deficits are on the way in the door. I have met more than my fair share of young college graduates who don’t possess the common sense of a hardworking high-school dropout.

Texts

Tweets

Clips

Clips, Texts, Tweets:TRAINING TODAY’S MILLENNIALS

by Robert Wendover

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Sales Managers’ Measures of PerformanceDistribution sales managers face “real time”

performance demands. Performance criteria typically

include one or more of the following: total sales

and sales growth; acceptable gross margins; sales

goals by product line; sales of targeted or premium

products; penetration of existing and target accounts;

new accounts; salesperson efficiency (total and

increased sales per salesperson); sales department

profitability; sales expense control….among others. A

sales manager’s performance is often examined on

an annual, quarterly, monthly or even weekly basis.

“What have you done for me lately!”

Following is an overview of 9 critical skills for

distribution sales managers to operate successfully

in this environment. This can provide a checklist for

sales managers and their company to measure

against… and to structure sales management skills

development.

Conducting Sales Planning with Individual Salespeople Setting sales goals or quotas is not sales planning. At

least annually, sales managers should work through

an individual sales planning process with each

salesperson. This should include an opportunity

for sales managers to hear from their salespeople

about competition, sales skills development needed,

obstacles faced, experience with suppliers, and other

factors which might influence that salesperson’s

success. Together the sales manager and salesperson

should develop, in writing, specifics of how they plan

to achieve the mutually agreed upon sales goals. This

plan, along with sales results, should be reviewed by a

sales manager and salesperson at least quarterly, so

that mid-course corrections can be made as needed.

Providing Sales Skills TrainingSales managers should adopt a specific sales model

for their sales team, and consistently provide training

in the skills appropriate for

this model. This is not product

training; it is training for sales

skills such as prospecting,

asking open ended questions,

listening to customers, dealing

with customer objections,

and creating sales proposals

that sell, not just quote - you

know, sales skills! That leads

to the next sales manager’s

skill…

Conducting Effective Sales MeetingsSales meetings should be

regular, focused on sales skills, and be customer based,

not product based. They should be fun, positive and

informational. They should help salespeople sell more

at higher gross margins. They should acknowledge

sales achievements and share sales success stories.

They should not be boring product feature/benefit

presentations or rants about who missed their sales

goals. They should be sales meetings, not anti-sales

meetings!

Coaching SalespeopleWith an individual sales plan in place, a sales model

adopted, and regular sales skills training, reinforced

by regular, positive sales meetings, sales managers

are in a position to coach salespeople by making

sales calls with them. The objective of these calls

is not to evaluate salespeople (though that will

naturally happen), but rather to coach salespeople

in the sales skills being consistently worked on in your

company. If properly structured, these calls lead to

better relationships between salespeople and sales

manager, and more open communication. And sales

managers get to talk to some real live customers!

Managing Supplier RelationshipsSales managers should take the lead in managing

supplier relationships. That means taking a proactive

approach to selecting and evaluating suppliers,

and building the appropriate personal/professional

relationships with key supplier

personnel. An important

activity in managing

supplier relationships is giving

suppliers honest, professional

feedback, as well as

understanding how their

company is perceived and

evaluated by suppliers.

Succeeding with Large Order OpportunitiesMost distribution companies

have a few important large

sales order opportunities

in a given year. These are

opportunities for quantum leaps in sales. They also risk

wasting time and resources on lost orders, or even worse,

obtaining a large order that places the company at

risk due to non-performance, over commitment, or low

margins. Sales managers must develop the confidence

of their salespeople to get early warning of these

opportunities; the tools to evaluate the opportunities

for appropriate effort; and the skill to put together a

sales team to successfully attack the opportunities

appropriate for their company. Suppliers often play

a major role in success, or lack of it, when addressing

large order opportunities. That’s where the previously

mentioned skill of managing supplier relationships can

play a critical role.

Professional Skills for

Distribution Sales Managers

In the 1992 movie Glengarry Glen Ross, actor Alec Baldwin portrays a hard nosed sales manager. His basic sales management skill is to threaten and intimidate salespeople!

In the 1934 Thomas Wolfe novel, You Can’t Go Home Again, a sales manager’s only apparent skill is cheerleading. At the end of an emotional sales speech, he faces the sales force, points to a map, and shouts, “There’s your market, boys! Go out there and sell them!” While the “non-selling” public may accept these stereotypes, distribution sales management professionals know sales force intimidation is not effective; and cheerleading, while it may have its place, won’t get the job done. Success for distribution sales managers requires professional management skills.

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Building a Sales Team & Sales Team EnvironmentWhile sales and selling can be seen as activities for

highly motivated and skilled individuals, developing a

sales team environment can bring powerful benefits

for a distribution sales manager. These include less time

spent on refereeing territory and commission disputes;

mentoring of less experienced salespeople by your

sales pros; and the ability to draw on skills of several

salespeople when addressing a large order opportunity.

This is particularly important when inside and outside

salespeople need to work together. A positive sales team

environment attracts and retains top performers. Building

a team environment in

sales requires appropriate

recognition of both

individual and team

success; effective

team building exercises

(including retreats, and

some fun activities);

developing team

objectives and rewards;

discouraging individual

personality cults; and open

communication on lots of

things.

Leading … Not Just ManagingMany books and articles have been written

acknowledging that leadership and management

are really different things. Sales managers must

of course manage. However, to reach the higher

levels of success, they must also be leaders. Leading

includes creating an appropriate separation from

the salespeople (especially important when the

sales manager is promoted from within the sales

team) while maintaining good communication

(listening, not just expounding); putting the sales

team and company objectives above the sales

manager’s individual welfare; making decisions in

a timely manner; being an advocate for the sales

team within the organization; stepping forward to

help with difficult situations; and providing a vision of

where the organization is going while showing how

that will benefit the individual members of the team,

which then leads to the sales managing skill of…

Being a Catalyst for Forward MotionMotivated, successful salespeople, in fact motivated

employees at any level of an organization, want to

be part of an organization that is not only successful,

but moving forward. Sales managers should provide

the catalyst for forward motion in the organization.

This includes charting progress through sales

excellence communication and awards programs;

sharing success stories; evaluating and adding

new product lines; providing

resources needed to support

growth; trying new things;

challenging the sales team to

move to the next level; and

defining success by more than

just sales numbers. Success in

companies moving forward

comes in many forms, including

customer service excellence,

capabilities added, awards

achieved, and contributions to

the community.

Sales managers should be

the catalyst to “make things

happen” in their sales team and their company.

More information availableThis article provides an overview of 9 sales management skills important for professional distribution sales managers. One source is the book Taking Charge of Distribution Sales: 9 Proven Skills to Lead and Manage Your Sales Team. That book, by the author of this article, provides more details on the skills included here, including ready to use templates, real world examples, and a list of other sales manager

resources.

About the Author: Gary Moore is a 40 plus year veteran of the wholesale distribution industry. For over 25 years, Gary has been a frequent author, consultant, and speaker serving the wholesale distribution industry. He has authored three books on sales and sales management in wholesale distribution. To learn more about Gary Moore visit his website at www.objectivebasedselling.net or contact Gary at [email protected].

Balance of traditional craftsmanship and modern technology is key to company’s longevity

TACOMA, Wash., May 1, 2013 – Buffelen Woodworking, a leading manufacturer of precision, hand-finished doors, proudly announces the company’s centennial year. Operating on the same site in Tacoma, Washington since 1913, Buffelen has grown from modest beginnings to become one of the industry’s most technologically advanced manufacturers, supplying doors to distributors and builders throughout the US, Canada and Japan.

Since it’s founding by Dutch immigrant John Buffelen, the company has maintained its focus on high quality standards and skilled craftsmanship. Even today, every door is assembled, sanded and finished by hand. Complementing this attention to detail, Buffelen has kept up with the demands of a fast-paced economy with custom-designed, state-of-the-art machinery to efficiently produce precision joinery and profiles of any shape or style.

“We have worked tirelessly over the years to provide our customers with a door that is built to last, made-to-order and delivered quickly,” said Joe Guizzetti, CEO & General Manager of Buffelen. “Our adherence to rigorous quality

standards, endless custom options, and fast turnaround has enabled the company to create the 100 year-old legacy that we enjoy today - a legacy that we look forward to continuing long into the future.”

No one understands and appreciates the Buffelen legacy better than Mr. Guizzetti, who has been with the company for nearly 40 years, working his way from summer intern to CEO.

“The forest products industry has been faced with many challenges over the years, including the recent global economic downturn,” continued Mr. Guizzetti. “In order to weather the storms, Buffelen has carefully stayed true to our roots of traditional craftsmanship, while

embracing the efficiency and precision that modern technology can provide.”

Buffelen offers a full range of exterior and interior wood doors, MDF doors, impact-rated doors and fire-rated doors. Virtually any design can be accommodated to create one custom door or an entire custom home package, including exteriors, interiors, bi-folds, louvers, sidelights and transoms. From custom design to final production, doors can be delivered in weeks, not months.

For more information on Buffelen Woodworking, visit the website at www.buffelendoor.com, or call 800.423.8810.

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Page 9: Association of Millwork Distributors Millwork & More Magazine

15Millwork & more AMD magazine14 july 2013

Are You a Broken Field Runner?By Jason Bader, Executive Advisor

The Distribution TeamOne of the great thrills in sports is seeing a well executed play develop into a scoring situation. There are those rare moments when everything just falls into place. Occasionally, this happens in the business world as well. We create a plan of action and the execution is flawless. Money changes hands and we are in real danger of arm strain from patting ourselves on the back. Did I mention that this was the rare exception? Average players look good when a well thought out plan is successful; but it takes an exceptional performer to look good when the playing field suddenly changes. Growing up, my father used to say that one of the keys to success was becoming a broken field runner. He used a football analogy to explain the concept. Some of the most dazzling plays from the line of scrimmage were not the ones drawn up by the coaching staff. Sure, there was a play called for particular situation the offence was up against. The perfect play assumes that the defense will continue along the predicted path. Unfortunately, there are many variables that disrupt the perfect play – a slip on the turf, a shift in the defense or even a lapse in assignment. What truly makes the ball carrier, be that running back or quarterback, exceptional is the ability to adapt on the fly and create a gain on a broken play. I loved watching rookie quarterback Colin Kapernik, of San Francisco, create something out of nothing. The great ones have this ability. As business professionals, this same ability to overcome daily obstacles is what separates the solid practitioner from the exceptional performer.

Let’s take a look at the role of the inventory investor, or purchasing agent to those of you who haven’t adopted this mentality. Do they have to be adaptable in the face of changing circumstances? Absolutely. A good friend of mine refers to the replenishment of inventory as a thousand little decisions done right every day. A clerical agent runs reports, generates purchases and generally tries to make sure that they don’t incur the wrath of the sales team. What happens when we run out of stock and we are still $800

short of the freight prepaid level? While this situation would cause undue anxiety in some, the professional inventory investor has the ability to source product in order to maintain customer service. They don’t panic, they adapt.

When you are in the import business, you know that many things can go wrong in vast blue ocean between you and the supplier. How do we react when a container gets hung up in customs? How do we handle a longshoreman’s strike? These are all potential barriers to a successful procurement play. Your best performers find a way to shine in the face of adversity.

I am in the middle of reading a book that repeatedly illustrates this point. The book was written by one of the members of SEAL Team Six. This is the elite team sent in to remove Osama Bin Laden. He talks about the intensive training that he and fellow team members were constantly involved in. Despite the countless hours of training for different situations and contingencies, the original plan almost always went sideways. Whether it was being dropped on the wrong roof during a mission or bad intelligence, the team constantly had to adapt and modify to complete the goal. Rather than fearing the change, these professionals learn to embrace the change and consider it part of the plan.

The mark of a truly successful salesperson is the ability to change directions in the face of customer conflict. A good friend of mine is a consummate sales professional. He doesn’t look the part. He could hardly be considered hip, slick or cool; but man can he sell. Several years ago, we were in a nightclub full of attractive young people. My friend was feeling the atmosphere and wanted to dance with some of the other patrons. In spite of being several years older, and considerably less attractive, I watched my friend take rejection after rejection without breaking stride. He just moved on to the next girl. He was never embarrassed or put off, he just kept moving. Persistence must be part of the formula.

How many times have we seen salespeople cave at the mere mention of a price objection? An average performer will accept the new price level in order to keep the sale. The broken field runner will seize the opportunity to discuss the true cost of ownership or look to create a package deal. How many times have we seen sales people run up against a set of plans specifying a competitive product? Does the sales pro turn and tuck their tail between their legs? Of course not, they figure out how to break the spec or submit an equivalent product to the architect or engineer. Barriers become speed bumps to the broken field runner.

Most recently, I have been devoting some attention to the role of business to business credit and the function of accounts receivable management. Is there room for creativity and flexibility in this position? Rigid interpretations lead to missed opportunities and unnecessary conflict with the sales team. What is the goal of A/R management? Many would argue that it is the collection of past due invoices or mitigation of risk. These are the folks trying to run the same play in spite of a shift in the defense. The ultimate goal of the accounts receivable team is to keep customers buying using the tools at their disposal. How do we handle a consistently slow pay customer? Rather than cut their line and put them on hold, the nimble manager will investigate the company and find ways to work with their payment preference. We are still in the sales business, aren’t we?

Closed thinking and internal barriers didn’t happen overnight. It took many years to get to this point. If you can, remember back to the early days of the business. Were we focused on mitigating

risk and adhering to strict policies? I think not. We practiced a little fly by the seat of our pants cowboy-ism. We were nimble and flexible. We found ways to say yes when others would cringe. What happened to us? Success happened and suddenly our priorities began to shift. We became more defensive than offensive.

I am not advocating going back to the days of running around with your hair on fire; but, most companies need to inject more creativity back into the organization. Cultivating a broken field mentality involves coaching your teams rather than managing them. Coaches turn mistakes into learning opportunities. Create small case studies during your team meetings. Ask for opinions on how you would handle situations that fall outside the normal business practice. You must allow for opinions outside of your own. Remind teams of their goals rather than their procedures.

Given the time and page space, I go on for hours about departments where flexibility has been stifled. Take the time to look around your organization. Are you satisfied with your ability to serve customers? Have you seen signs of complacency or stagnation? Are we saying NO more than we are making the effort to explore YES? As always, I hope that my articles have given you the opportunity to think outside the daily firefight. As entrepreneurs, you once had the ability to cut across the field and make something out of nothing. Remember, anyone can score when the defense stands still. The true test occurs when the play breaks down. Good luck.

About the Author:Jason Bader is the managing partner of The Distribution Team, a firm that specializes in helping distributors become more profitable through strategic planning and operating efficiencies. The first 20 years of Jason’s career were spent working as a distributor executive. Today, Jason is a regular speaker at industry events and coaches individual distribution companies. For more information, telephone (503) 282-2333 or by e-mail at [email protected]. The Distribution Team’s website at www.thedistributionteam.com.

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16 17Millwork & more AMD magazinejuly 2013

Targeting is the process of selecting high potential customer accounts to receive intense sales focus. Goal setting translates that high potential into achievable numeric objectives, i.e. revenue and margin growth. Each Territory Manager should select a predetermined number of Target Growth Accounts (TGAs). Creating focus on this group of selected accounts doesn’t mean a Territory Manager should ignore other accounts; he/she is always expected to service their entire territory. When making decisions regarding their time, however, they should always consider these selected Target Growth Accounts a priority.

An effective targeting plan will reposition the outside sales force from being primarily transaction driven and self-sufficient to developing customer intimacy and using team-based selling. It’s the evolution from being a Lone Wolf to becoming a Lead Wolf; it supports growth in profitability, growth in revenue and growth in market share!

An effective targeting plan becomes a “bottom-up” initiative” opposed to the

typical top down forecasting seen in many organizations. The selection of Target Growth Accounts (TGA’s) requires careful thought and substantial effort on the part of the territory sales person. Annual sales, margin and goals are established, and detailed action plans must be created for each of these accounts. For most Territory Managers, TGAs will contribute a substantial portion of total territory sales growth. This “big effort for big reward” means that the number of TGAs must be limited, and that sufficient time is allotted to succeed with each one. Most programs limit the total number of target accounts to ten or fifteen max.

An account action plan ensures that the Territory Manager is proactively pursuing sales growth and that there is a solid basis for expecting account goals to be met. By monitoring these action plans, both the Sales Manager and Territory Manager can manage activities rather than wait for results. The intention of planning and goal setting is to provide focus on TGAs. These are the accounts with the most potential for growth.

Managing the Targeting ProgramA Sales Manager has many competing priorities. One of the most important is the need to manage the sales functions. The targeting and reporting program and the various activities which are a part of it are intended to help the Sales Manager improve their sales management skills and help each individual territory sales person achieve success.

An initial territory meeting between the Sales Manager and the Territory Manager is the most important step in the targeting process because this is where the company’s expectations of sales performance are defined. This meeting creates territory dialog that is essential for effective sales management, support and knowledge transfer. Each Territory Manager should prepare by organizing some key information for each of the target accounts selected.

Understanding the customer’s market and business is necessary to develop a plan for growth. You need this intelligence to determine and allocate the necessary resources. You need to understand your customer’s

business in order to understand how to meet his needs, cure his pain and provide solutions which result in increased sales. Understanding his business involves knowing his markets, customers and competition. This requires serious discussions with numerous people in your customer’s location. You should define the key players and your contact points in your customer management system whatever system you use. This helps you get a better understanding of their business. By understanding their types of customers you will be able to determine the timelines from order to delivery. What is their ordering lead-time? What could be done to shorten the cycle time and perhaps determine what your customer’s pain factors are?

Target Account Action PlansNothing happens unless you execute. To effectively execute, you need a specific action plan for each target account. The action plan is the plan of attack – the steps that will enable the account to reach its objectives. This plan should develop naturally from the knowledge the Territory Manager gained from his research and customer contact. Of course, the plans for accounts with which you currently do business and have relationship equity may be more extensive than those for newer prospects. This action plan determines how to match your company resources to every opportunity that exists within that account.

Definitive action plans are more than personal account visits once a month. They are more

than introductions to upper management and they are more than a commitment to work with management to submit the lowest bid. Action plans must be precise, definitive and measurable. They could include tasks for getting specific customer information, introducing new product lines, entertaining key players, etc.

Do not make the mistake of putting all your energy into your largest accounts. This is especially true when you are getting the majority share of spend from that account. Remember, the targeting process should focus on the greatest potential for growth.

About the Author:Rick Johnson, expert speaker, wholesale distribution’s “Leadership Strategist”, founder of CEO Strategist, LLC a firm that helps clients create and maintain competitive [email protected]

An Intense Sales Focus

By: Dr. Rick Johnson

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Page 11: Association of Millwork Distributors Millwork & More Magazine

18 july 2013

WORKFORCE

5.0Managing Multiple Generations @ WorkBy Diane Thielfoldt

19Millwork & more AMD magazine

Welcome to Workforce 5.0. Why 5.0? We are on the cusp of yet another generation entering the four-generation workforce; many demographers state that beginning in 2015, we will have five generations in the workforce. So now is the time to learn new approaches to understanding, working alongside, and managing multiple generations of employees, colleagues and customers.

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20 21Millwork & more AMD magazinejuly 2013

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THE 4 GENERATIONS IN TODAY’S WORKPLACE

How do Silents fare in today’s workplace? Their experience, along with their disposition toward service, makes them excellent coaches and mentors, and their sense of fair play makes them helpful workplace arbitrators and mediators. Silents prefer due process—they often create and use formal procedures—combined with adhering to the rules. They value moderation, preferring to think things through before taking action.

Baby Boomers (born 1946-1964)The most populous generation in the U.S., 76 million Baby Boomers typically grew up amid economic prosperity, suburban affluence and strong nuclear families with stay-at-home moms. Some researchers divide the Baby Boomers into two groups—those born between 1946 and 1954 (the “Woodstock” group, known for their idealistic endeavors and social conscience) and those born between 1955 and 1964 (the “Zoomer” group, known for their preoccupation with “self”).

Boomers came into the workforce en masse, and made the rules that many companies play by. They are ambitious, and many define themselves by their careers. The Boomers’ paradox today is that many are reaching a stage in their lives marked by ambivalence about the very rules they created. Nevertheless, this generation tends to be optimistic, competitive and focus on personal accomplishment.

They continue to work hard—maybe too hard. This generation amazingly increased our historical 40-hour workweek by one full month per year! As younger generations enter the workplace, Boomers are waiting for them to pick up this traditional approach to work.

This generation is comfortable in the culture they have created, and they view change as sometimes painful, yet inevitable. Many companies experience their biggest generational conflict when Boomer managers are confronted with younger employees who do not fit the mold that they themselves created.

Generation X (born 1965-1976)The 41 million members of Gen X live with the corporate footprint of previous generations; they are reshaping organizations to meet their generation’s priorities. They prefer to work independently, and are highly committed to good bosses, stimulating projects and capable peers.

Members of Generation X grew up in a very different world than previous generations. Divorce and working moms created latchkey kids out of slightly over half of this generation; this led to traits of independence, resilience and adaptability. Generation X feels strongly that “I don’t need someone looking over my shoulder.” Translation: they prefer hands-off management and mentoring, and micromanaging doesn’t work with them.

Generation X saw their parents laid off or face job insecurity, and many of them entered the workplace in the early ‘80s, when the economy was in a downturn.

Because of these factors, they have redefined loyalty. Instead of remaining loyal to their company, their loyalty is most often to their work, their team and their immediate boss.

Today, Generation X is solidly at career mid-point. They are managers, tenured employees, business owners—and they are busy raising families and contributing to their communities. They expect time flexibility that allows a separation of work from family. Rather than buy into Boomers’ work ethic of long hours at the office, Gen Xers focus on getting the job done through nontraditional work hours, job-sharing, telecommuting—whatever works.

This generation takes employability seriously, although for them climbing the career ladder has been replaced with building a career portfolio, which they continue to grow, building a skill set that supports their need for independence even as they attain increasing levels of responsibility. They can move laterally, stop and start; their careers are more fluid with on ramps and off ramps.

Millennials (born 1977-1998)The youngest generation in today’s workforce was raised at the most child-centric time in our history. Perhaps it is because of the showers of attention and high expectations from parents that the Millennials display a great deal of self-confidence, to the point of appearing cocky.

This generation is packed with power and potential; the challenge for managers is living up to the high standards and expectations the Millennials bring to the workplace.

Sometimes coached by their parents, Millennials don’t see the value of paying their dues or earning their stripes. They perform best with some structure, especially younger Millennials who are newer to the workplace—they are learning to work as well as learning the work. Millennials also have a bit of a “whatever” view of title and position, showing less reverence for position that’s simply based on experience, which they think Baby Boomers overemphasize. What they respect is knowledge and learning. They want a relationship with their boss. This does not always mesh with Generation X’s love of independence and hands-off style. Watch out! They will leave for greener pastures if challenge, learning and fun are absent from their work.

Millennials are typically team-oriented and work well in groups, preferring group work to individual endeavors. In addition, they are used to tackling multiple tasks with equal energy, so they expect to work hard. They are effective multitaskers, having juggled school, sports, and social interests as children.

As you might expect, this group is technically literate like no one else. Technology has always been part of their lives, whether it is mobile phones, text messaging, YouTube, Facebook, or Instagram.

Today’s Multigenerational Workplace

Each of the generations at work today carries its own perspectives, changing priorities, work ethic, and distinct and preferred ways of working and being managed. That’s because within each generation, members are shaped or influenced by the same events, experiences

and images—typically those things happening in the world when the generation was coming of age, between the ages of 17 and 23. The experiences of our youth shape our points of view. Additionally, our age and our life-stage dictate some of our needs and preferences.

Appreciating generational dynamics allows you to find common ground with colleagues and employees from all generations and communicate information they want in the manner they want it. For example, understanding clients’ age-based points of view is an indispensable soft skill that you can use to establish connections, communicate effectively, and make the sale. Another area is leading people of all ages; supervisors and managers today will be more effective if they can “manage the mix.”

Let’s start with an overview of the generations so that you can begin to understand “where they’re coming from,” as a Baby Boomer might say.

Meet the GenerationsThe Silent Generation (born 1933-1945) The 50 million members of the Silent Generation defy generalization more than any other generation—so avoid stereotyping them! While many Silents have already left the workforce, plenty of others remain, and they are reinventing the concept of career maturity and retirement. They see themselves as vigorous, contributing members of the workforce.

The oldest members of this generation grew up in the aftermath of the Depression. However, in their lifetimes, their financial cycle moved from a cashless childhood to affluent adulthoods, due in part to economic growth, plentiful jobs, retirement benefits—and their propensity to live well within their means as a generation. They built their success on hard work, self-discipline and postponing material rewards.

As a generation, they put the group before the individual, making them strong team players. Sometimes referred to as the “facilitative generation,” many Silents have taken leading national roles as diplomats, civil rights leaders and distinguished civil servants and politicians. Typically, employees from this generation are disciplined, loyal team players who work within the system. They have a huge knowledge legacy to share and embody a traditional work ethic.

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23Millwork & more AMD magazine

Today’s Shifting DemographicsYou’ve probably seen this in your own organization: Today’s workforce is aging because Silents and Boomers are staying on the job longer, avoiding retirement for financial reasons or reluctance to stop working. From 2006 to 2016, the labor force of those aged 65 to 75 is growing at a rate of 80%; and 75 and older, at a rate of 78%.

Meanwhile, Millennial workers are no longer a novelty as their numbers increase. In fact, by 2014, Millennials will approach 47% of the workforce! However, a large number of this group is currently unemployed or underemployed due to the economic downturn.

As the economy picks up, watch for more Millennials (a generation nearly as large as the Baby Boomers) to start snapping up new jobs in your industry (and all industries), while Silents and Boomers continue to hang on to employment and Gen X seeks to move up or on in their careers. All of this will take place in an economy that is increasingly knowledge- and services-based, technology driven and global. The competition for jobs is only going to get fiercer, and members of all generations will be slugging it out for positions that are still limited.

Today as well as tomorrow, it is less and less common to be working with your peers. You are working with all these different generations. And if you are a manager, you are the leader of people of all ages, and will be for the rest of your career.

Managing the MixIn a recent study by the Society of Human Resource Managers, almost 25% of HR professionals reported generational conflict in their workplace, and a full 60% of employers are experiencing tension between employees of different generations. While 47% of younger employees surveyed complained that older managers were resistant to change, 33% of older employees found younger workers’ informality and need for supervision problematic.

You probably don’t need these statistics to know that the generational mix in today’s workplace can be problematic. Managers and supervisors who are armed with the knowledge, skills and practices to engage with each generation can go a long way to reducing the statistics above. And when you can meet the preferences and priorities of each generation, communicate in ways that are effective and appropriate, and understand their career goals and values, you will also have completed much of the heavy lifting needed to recruit and retain good employees of all ages.

The starting point is to remind yourself which generation you are building a relationship with. Speaking to that generation’s quirks and qualities will make your management style more effective. Note: Please don’t ask an employee her age or birth year! Instead, look for visual clues or ask questions like “Should I call or text?” or “Did you do anything interesting this weekend?” Then use the information you collect to make an educated guess at her generation.

With some basic knowledge about each generation’s

characteristics and attitudes (combined with some common sense) we can apply this insight to managing in ways that improve our performance. Here are some best practices for various aspects of management, broken down by each generation:

Management Dos and Don’ts for Each Generation

Silents: Members of the silent generation expect a fair day’s work for a fair day’s pay. Therefore, it makes sense for you to develop a relationship with Silents focusing on the work, and recognizing and respecting their preferences for more formal protocol and etiquette. What won’t work with them is acting too personal, using slang or profanity, or being disorganized or unprofessional.

Boomers: Build a relationship with Boomers that recognizes their contribution and hard work. Acknowledge their “sandwich” responsibilities of caring for kids and parents by offering flexibility. When appropriate, encourage Boomers to lighten up a bit and let go.

Gen Xers: Adopt an approach that is hands-off and gives them autonomy. Tell them the goal and then get out of their way while they figure out how to get there. They value work-life balance, so offer options and flexibility.

Millennials: Give them projects and assignments that challenge them—continually. At the same time, offer structure, guidance and frequent check-ins. Be a resource for them, and when possible put them in team situations. What won’t work: The hands-off style that Gen Xers prefer, being formal and fussy, or taking too much of their time.

Retaining the GenerationsSilents: Create significant mentoring roles capitalizing on their strategic eye and bottom-line approach to the business. Appreciate and acknowledge their contributions.

Boomers: Provide work-life balance. Come up with new challenges that match their skills.

Gen Xers: Resist micromanaging. Offer flexible work hours and flexible work—change it up.

Millennials: Personalize their work. Create a collegial team environment.

Coaching the GenerationsAs a manager, your role should include coaching individual employees, with a strong emphasis on providing feedback.

Silents: Make time for an in-person coaching conversation. Give these employees the opportunity to mentor others in your group.

Boomers: Fight potential skills obsolescence with reverse mentoring, conference participation and key interactions. Stick with three-minute coaching conversation

Gen Xers: Build their skills portfolio and change it up regularly by giving them different challenges and opportunities. Candidly discuss their reputation. A quick e-mail can be a coaching conversation.

Millennials: Explain the importance of seemingly routine tasks. Set specific expectations, targets and goals, and give plenty of feedback. Text them with coaching tips or direction.

Communicating with the GenerationsSilents: This generation prefers face-to-face meetings, phone and mail. Technology won’t always seem like a solution to them, but don’t underestimate their comfort with the Internet, e-mail, and more.

Boomers: Boomers also like face time and phone conversations. Like Silents, they may be quite comfortable browsing your blog or sharing Tweets.

Gen Xers: Reach them on their computers and smartphones with e-mail, web-based information and social networking. Remember, they like plenty of hard data to help them make a sales decision.

Millennials: It should come as no surprise to you that this generation relies heavily on e-communications, including text messaging and social media. They live at the speed of light and expect immediate responses to their own communications.

Motivating the GenerationsSilents: The top four motivators for Silents are challenge, stimulation and variety; the knowledge that they are making a difference; appreciation; and autonomy. They are “de-motivated” by reporting to a bad boss; boredom and lack of challenge; an inability to learn and grow; and lack of appreciation.

Boomers: This generation is motivated by challenge, stimulation, variety; the knowledge that they are making a difference; appreciation; and an enjoyable environment. They are “de-motivated” by lack of appreciation; reporting to a bad boss; boredom and lack of challenge; and micromanagement.

Gen Xers: This generation is motivated by challenge, stimulation and variety; career growth and learning; having work-life balance; and the knowledge that they are making a difference. They are “de-motivated” by reporting to a bad boss; micromanagement; lack of appreciation; and no work-life balance.

Millennials: This generation is also motivated by challenge, stimulation and variety; career growth and learning; an enjoyable environment; and pay. They are “de-motivated” by boredom and lack of challenge; lack of appreciation; reporting to a bad boss; and an inability to learn and grow.

The Next GenerationGet ready to welcome a fifth generation to the workplace in two years: the iGeneration, born between 1998 and 2013. This generation, also called iGen, Gen Z, Generation Wii, Gen Tech, or Plurals, has witnessed the demise of the American Dream. They are growing up in greatest period of economic distress since the Great Depression, which is bound to affect their views of employers, their workplace loyalty, and their values.

Raised by Generation X parents, the iGeneration shares their individually oriented qualities—they are hardworking, confident, independent, and organized. Nearly all of them are online and they share the technical literacy and ease of Millennials.

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24 25Millwork & more AMD magazinejuly 2013

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A Good Boss to All AgesWith all this information about how to manage your employees, how can we be Good Bosses? The good news is that you can be a Good Boss to every single employee without coming across as a Bad Boss to any generation. For example, a Good Boss makes an effort to build a climate that fuels engagement.

To create an enjoyable and engaging climate, begin by imagining your employees are volunteers, not paid employees. Identify what about your leadership keeps them coming to work for you. And follow these basic tips:

1. Keep commitments and appointments with employees.

2. Schedule lunch with employees; take time to get to know each of them.

3. Keep your sense of humor, celebrate successes and encourage relationship building.

4. Know every employee’s name, their family members’ names and at least one hobby and outside interest.

5. Consistently reaffirm the value of the employee to the team, the department and the organization.

6. Consider creating competitive challenges (such as outdoor sports activities) with other teams and or departments.

7. Give back! To your team, the company and the community.

A Good Boss leads with frequent feedback and communication.

1. At least once a month, tell people why and how their work is significant.

2. Frequently express appreciation for each employee’s contribution.

3. Walk around, say hello and greet people at the beginning of their day.

4. Connect with people in person, by e-mail, phone, text or instant messaging.

5. Make sure employees see the link between their work and the organization’s mission, goals and values.

6. Use positive messages instead of “or else” statements to inspire.

Meet with employees once a month to discuss work. Ask:• What’s going well?• What’s not going well?• What can I do to support you?

A Good Boss kills off old notions of career and commits to the workforce a future of contribution, meaningful work and mutual success. These actions will appeal to all generations:

1. Work with employees to develop a list of potential projects, challenging assignments and tasks that could enhance their career.

2. Have a career conversation. Make arrangements for a quiet place without interruptions, and focus on the employee and his or her career. Ask:

a. What do you like about your work?b. What talents do you have that are not being

used?c. Are there other projects or assignments of interest

to you?d. Confirm that the employee has a career path or

professional development plan.

3. Arrange for a senior manager to meet with your employees. Ask the manager to talk about his own lessons learned and how he has managed his career.

4. Have a team member spend time with an important customer, then discuss the key learning.

5. Develop a training plan for your team that encompasses which skills your team members need now to make sure they are skilled in the future.

6. Switch things up. To freshen routines and enable cross training, have employees switch roles for a day (or half a day), then meet as a group to discuss what was learned.

7. Schedule “Power Down Days” for yourself, when you delegate tasks to team members. Don’t take on any tasks that team members can handle effectively.

In ConclusionI realize that this is a lot of information to take in and incorporate into your management style. But by increasing your awareness of the different work styles and preferences of the four generations—soon to be five—in your workplace, and making some simple adjustments to how you lead each one, you’ll improve your own quality and enjoyment of work as well as that of your employees.

Diane Thielfoldt is co-founder of The Learning Café, a consulting firm dedicated to

helping organizations develop, engage and retain the talent of every generation. An

accomplished workshop facilitator and engaging speaker, Diane has educated hundreds

of managers on issues involving the multigenerational workplace.

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26 27Millwork & more AMD magazinejuly 2013

Google How to Boost Your Rank on Google: 15 Essential QuestionsWeb Maps Shopping More Search tools By Bob DeStefano Page 1 of 7, 190,000 results (0.27 seconds)

Do you have defined goals for search engine marketing? Tip: Search engine marketing will help drive targeted traffic to your Website.So why are you trying to attract more traffic? Think about the goals and objectives for your Website and online marketing efforts. Your search engine marketing program should be designed to support these goals. Your goals may include selling products online, generating leads, building a marketing database or improving brand awareness.

Do you know who you are trying to attract with search engine marketing? Tip: Once you know why you want to attract more traffic, spend some time defining who you are trying to attractTake a moment to brainstorm about your target audiences. Who are they? What industry or business are they in? What is their role within their company? What are they searching for? By defining your specific audience groups, you will be able to understand and address their unique needs and motivations.

Do you know who your top competitors are on the search engines?Tip: Your search engine marketing program must also focus on your competition. You want to make sure you clearly identify your top competitors, so you can continually evaluate how your company’s search engine presence ranks relative to the competition. And remember, your online competitors are not just the companies you typically compete against for new business. Anyone on the first page of Google for your offerings is a competitor.

Do you know what terms or phrases your customers use when they search for your products and services on Google? Tip: Proper keyword research is the most important step in search engine marketing. When choosing the best keywords, it is important to choose phrases that are not only relevant to your business, but also ones that are searched most often by your target customers. Begin by getting inside the heads of your customers and brainstorm about potential terms they use when thinking about your products and capabilities. Then, turn to keyword research tools like Wordtracker or Google Adwords to create a list of highly searched terms that will drive targeted traffic to your Website.

Have you assigned each keyword phrase to the most appropriate page on your Website?Tip: Begin by creating a keyword plan for your search engine optimization campaign. Your keyword plan will map each of your keyword phrases to the most appropriate pages on your Website. Review all of the pages on your Website and determine the best page for each of your keyword phrases. If an ideal page does not exist, it needs to be created.

On each page you are optimizing for search engines, is the copy sufficiently long and keyword-rich? Tip: Keyword-rich copy is critical to search engine optimization success.Your keyword phrases need to be used throughout the entire page. Ideally, every page should have about 200 to 300 words of copy and your keyword phrase should be used approximately 5% of the time – or 5 times for every 100 words of copy. However, make sure you resist the urge to overuse the phrase on the page. Google will penalize you if you go overboard with keyword stuffing.

Do your page <title> tags lead with your targeted keywords? Tip: Search engines consider page titles very important when evaluating page content. In addition, the page title is used for the blue clickable link people will see in the search results. Title tags must be written to include the most important phrases for the page, while appearing compelling to the searcher so they will want to click them. Keep them below 60 characters, including spaces or else it will be cut off in the search results. In addition, each page of your Website should have a unique title tag.

Does your site employ <h1> heading tags for content titles? Tip: Search engines consider heading tags, <h1>, more important than normal text.You should make use of heading tags on every page to highlight the most important keywords and the heading for the page. In addition, use the <h2> and <h3> tags for subheadings using other relevant variations of your keyword phrase.

Do you have keyword-rich <alt> tags for all navigation graphics and all product images? Tip: Search engines cannot read text included in images.However, every image can have an <alt> tag that includes a brief description that can be read and indexed by search engines. So, make sure all of your product photos include relevant keyword phrases in the <alt> tags. Make sure to only include relevant keywords that are important for the page and relevant for the image.

Do your pages have keyword-rich <meta> tags? Tip: The ‘description’ <meta> tag is very important, since Google uses this information below the clickable link in the search results. Craft your ‘meta’ descriptions for each page like a compelling call to action, include your most important keywords for the page, and keep them below 150 characters, including spaces. The ‘keywords’ meta tag has been exploited over the years, so it is largely ignored by Google and other search engines. Still, it may have some impact, so use it to list your most important keywords for each page.

Do your filenames and directory names include targeted keywords? Tip: Think strategically about how you construct and organize your Website. Search engines will also look at directory names and file names when reviewing the content of a Web page. Where it makes sense, try to use your most important keyword phrases in these names.

Are you using Google Webmaster Tools and an XML Sitemap to assist with the indexing of your Web pages?Tip: To search engines, an XML sitemap is like a road map for your entire Website. With Google Webmaster Tools, you will be able to share your Sitemap.XML file, as well as tell Google how you would like the URLs it indexes to appear. In addition, it provides detailed reports about your site’s search engine visibility on its search engines. You will be able to see how Google crawls your site and learn about specific problems it may be having accessing it.

Do you have a proactive link building program in place? Tip: Link building involves gaining links to your Website from other popular Websites in your industry or space.The more quality inbound links you have, the more popular your Website is in the eyes of Google. Good content attracts links, so fill your Website with interesting and informative content. Next, get your Website listed in online directories and portals. Finally, you should leverage online public relations and distribute press releases and articles online.

Are you running a results-focused paid search campaign? Tip: Paid search is an immediate way of attracting targeted search traffic. Unlike traditional advertising, where you ‘pay for exposure’ regardless of the results, with paid search you only pay if someone clicks on your ad and visits your Website, providing a compelling ‘pay for performance’ mode of advertising. To manage an ROI-driven paid search campaign, make sure you setup ‘conversion tracking’ so you can tie your bidding strategy to business results (e.g., sales, leads, etc.).

Are you measuring the success of your search engine marketing campaign? Tip: Since search engine marketing is all about attracting targeted traffic, begin by leveraging Web analytics to monitor traffic increases from search, as well as what search engines and phrases people are using to visit your Website. To make sure the volume of targeted visitors continues to increase, you should also monitor your position or ranking in the search results. Finally, to measure the success of your paid search advertising efforts, harness the measurable nature of the Web to track the cost-per-visit, cost-per-lead, and cost-per-sale for all of your paid search ads.

About the Authorwww.bobdestefano.com Bob DeStefano is an online marketing strategist and professional marketing speaker with more than 18 years of experience helping distributors and manufacturers leverage online marketing to produce bottom-line results. Connect with Bob on the Web at www.svmsolutions.com or 1-877-786-3249 Ext. 3.

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28 29Millwork & more AMD magazinejuly 2013

AMD Leadership Conference Links the Millwork and Lumber Industry Together

The Association of Millwork Distributors concluded its first joint Leadership Conference with the North American Wholesale Lumber Association (NAWLA), and AMD attendees declared it a success according to a post event survey. The conference site was the Innisbrook Golf Resort & Spa in Palm Harbor, Florida, where company executives and managers

came together from the millwork and lumber industry for three days of educational seminars, interactive workshops and networking activities.

AMD and NAWLA’s first joint event was the result of AMD’s initiative to bring fellow industry associations together in an ongoing “Associations in Synergy” forum in early 2012. “Today, the business model infrastructure continues to adapt to the new normal, and industry trade organizations are introducing a new prototype as well; one that includes partnering on education, conferences, marketing, tradeshows, and the other new ventures,” said Rosalie Leone, CEO of AMD.

The conference offered attendees thought provoking ideas and strategies to position their company for success in the recovery. Participants were armed with knowledge from industry experts on topics which included maximizing profits, distribution and recovery, wood product consumption; where will the supply come from, and what’s next in the lumber building material dealer market.

Tony Bridwell, Business Unit President, Partners in Leaders, rounded out the education sessions with a workshop which focused on a simple and powerful model “The Steps To Accountability®”, based on the Bestselling Book, The Oz Principle: Getting Results Through Individual And Organizational Accountability. One attendee commented, “The conference education sessions were very informative and timely.”

A true delight was luncheon keynote speaker, Major General, SEC Referee, Business Executive & Author Richard B. (Dick) Burleson. Mr. Burleson captivated his audience within the first few minutes with his charismatic personality and wit in his story-telling from the military base, football field and corporate desk. While entertaining the attendees, he delivered a powerful message as to How to be an Effective Leader by sharing his 12 Mandatory Leadership Traits for Success; a message we will all remember.

If you missed the Leadership Conference this year, make a point of joining us in 2014 for the spring conference. Check in with the AMD website for news, information and event updates.

www.AMDweb.com

“Today, the business model infrastructure continues to adapt to the new normal, and industry trade organizations are introducing a new prototype as well; one that includes

partnering on education, conferences, marketing, tradeshows, and the other new ventures.” — Rosalie Leone, CEO of AMD

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Every manager needs multiple kinds of exposure to the rest of the world in order to keep proper perspective of their own company. If we live only within the boundaries of our own companies, our perspective is limited at best and tainted at worst. The AMD provides several excellent venues and many relationships suitable for pursuing this perspective; such as, the AMD Annual Convention & Tradeshow. — Audrey Dyer, President of. ECMD Distribution Co.

a division of ECMD, Inc.

andHEAR $AVEfrom Business Speakers & Industry Experts on Early Registration

Education Sessions & Opening General SessionNovember 4th & 5th!

AMD 49th Annual Conference & Tradeshow

The AMD has been an important component of BROSCO’s Success over the last half century. The annual conventions have always provided a unique forum to speak with potential vendors, and discover new product opportunities, that simply would not avail themselves elsewhere were it not for this special event delivered by the AMD. — Charlie Smith, President & CEO of Brockway-Smith Company

For Convention and Registration Information, visit www.AMDweb.com

Where the Focus is the Millwork Industry

Jim Ambrose

Ken Schmidt

Keynote Speaker for the General Opening Session

A brand building expert, Ken Schmidt is the Brand Visionary and

Communications Strategist for the Harley Davidson

Motor Company.

Allison NuanesGreg Brooks

Dr. Al Bates

Peter Butzelaar